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8 <br /> Contract to Audit Accounts (cont.) Orange County, North Carolina <br /> Primary Governmental Unit <br /> not applicable <br /> Discretely Presented Component Units (DPCU)if applicable <br /> Steps to Completing the Audit Contract <br /> 1. Complete the Header Information—NEW:If a DPCU is subject to the audit requirements as detailed in the Local <br /> Government Budget and Fiscal Control Act and a separate audit report is issued, a separate audit contract is <br /> required. If a separate report is not issued for the DPCU and is to be included in the Primary Government's audit, <br /> the DPCU must be named with the parent government on this Audit contract. The Board chairman of the DPCU <br /> also must sign the Audit contract. <br /> 2. Item No. 1 —Complete the period covered by the audit <br /> 3. Item No. 6—Fill in the audit due date. For Governmental Unit (s), the contract due date can be no later than 4 <br /> months after the end of the fiscal year,even though amended contracts may not be required until a later date. <br /> 4. Item No. 8 —If the process for invoice approval instructions changed, the Auditor should make sure he and his <br /> administrative staff are familiar with the current process. Instructions for each process can be found at the <br /> following link. https://www.nctreasurer.com/slg/Pages/Audit-Forms-and-Resources.aspx <br /> 5. Item No. 9—NEW:Please note that the fee section has been moved to the signature pages,Pages 5 &6. <br /> 6. Item No. 16—NEW:It is now expected that an engagement letter will be attached to the contract. Has the <br /> engagement letter been attached to the contract submitted to the SLGFD? <br /> a. Do the terms and fees specified in the engagement letter agree with the Audit contract? "In case of <br /> conflict between the terms of the engagement letter and the terms of this contract, the terms of this <br /> contract will control." <br /> b. Does the engagement letter contain an indemnification clause? The audit contract will not be <br /> approved if there is an indemnification clause—refer to LGC Memo#986. <br /> 7. Complete the fee section for BOTH the Primary Government and the DPCU(if applicable)on the signature <br /> pages,please note: <br /> • The cap on interim payments is 75% of the current audit fee for services rendered if the contracted fee <br /> amount is a fixed amount. If any part of the fee is variable, interim payments are limited to 75% of the <br /> prior year's total audit fee. If the contract fee is partially variable, we will compare the authorized <br /> interim payment on the contract to 75% of last year's actual approved total audit fee amount according to <br /> our records. There is a report of audit fees paid by each governmental unit on our web site: <br /> https://www.nctreasurer.com/slg/Pages/Non-Audit-Services-and-Audit-Fees.aspx - Auditors and Audit <br /> Fees. <br /> Please call or email Darrus Cofield at 919-814-4299 darrus.cofield(&nctreasurer.com if you have any <br /> questions about the fees on this list. <br /> • For variable fees for services, are the hourly rates or other rates clearly stated in detail? If issued <br /> separately in an addendum, has the separate page been acknowledged in writing by the Governmental <br /> Unit? <br /> Page 7 of 8 <br />