Orange County NC Website
Contract to Audit Accounts (cont.) Orange County <br />Primary Government Unit <br />not applicable <br />Discretely Presented Component Unit (DPCU) if applicable <br />If this audit engagement-is subject to the standards for audit as defined in Government Auditing Standards, 2011 <br />revisions, issued by the Comptroller General of the United States, then by accepting this engagement, the Auditor <br />warrants that he has met the requirements for a peer review and continuing education as specified in Government <br />Auditing Standards. The Auditor agrees to provide a copy of their most recent peer review report regardless of the <br />date of the prior peer review report to the Governmental Unit and the Secretary of the LGC prior to the execution of <br />the audit contract. If the audit firm received a peer review rating other than pass, the Auditor shall not <br />contract with the Governmental Unit without first contacting the Secretary of the LGC for a peer review analysis <br />that may result in additional contractual requirements. <br />If the audit engagement is not subject to Government Accounting Standards or if financial statements are not <br />prepared in accordance with GAAP and fail to include all disclosures required by GAAP, the Auditor shall provide <br />an explanation as to why in an attachment. <br />It is agreed that time is of the essence in this contract, All audits are to be performed and the report of audit <br />submitted to the SLGFD within four months of fiscal year end. Audit report is due on: 10/31/2018 , If it becomes <br />necessary to amend this due date or the audit fee, an amended contract along with a written explanation of the <br />delay shall be submitted to the Secretary of the LGC for approval. <br />It is agreed that generally accepted auditing standards include a review of the Governmental Unit's systems of <br />internal control and accounting as same relate to accountability of funds and adherence to budget and law requirements <br />applicable thereto; that the Auditor shall make a written report, which may or may not be a part of the written report <br />of audit, to the Governing Board setting forth his findings, together with his recommendations for improvement. <br />That written report shall include all matters defined as "significant deficiencies and material weaknesses" in AU -C <br />265 of the AICPA Professional Standards (Clarified). The Auditor shall file a copy of that report with the Secretary <br />of the LGC. <br />8. All local government and public authority contracts for audit or audit- related work require the approval of the <br />Secretary of the LGC. This includes annual or special audits, agreed upon procedures related to internal controls, <br />booldceeping or other assistance necessary to prepare the Governmental Unit's records for audit, financial statement <br />preparation, any finance- related investigations, or any other audit - related work in the State of North Carolina. <br />Invoices for .services rendered under these contracts shall not be paid by the Governmental Unit until the <br />invoice has been approved by the Secretary of the LGC. (This also includes any progress billings.) [G.S. 159 -34 <br />and 115C -4471 All invoices for Audit work shall be submitted in PDF format to the Secretary of the LGC for <br />approval. The invoices shall be sent via upload through the current portal address: <br />htths:;'Inctre4�s�uersl7fc� I.leapille, net. Subject line should read "Invoice — [Unit Name]. The PDF invoice marked <br />`approved' with approval date shall be returned by email to the Auditor to present to the Governmental Unit for <br />payment. Approval is not required on contracts and invoices for system improvements and similar services of a <br />non- auditing nature. <br />9. In consideration of the satisfactory performance of the provisions of this contract, the Primary Govermment shall <br />pay to the Auditor, upon approval by the Secretary of the LGC, the fee, which includes any cost the Auditor may <br />incur from work paper or peer reviews or any other quality assurance program required by third parties (Federal and <br />State grantor and oversight agencies or other organizations) as required under the Federal and State Single Audit Acts. <br />(Note: Fees listed on Fees nave.). This does not include fees for any Pre - Issuance reviews that may be required by the <br />NC Association of CPAs (NCACPA) Peer Review Committee or NC State Board of CPA Examiners (see Item #12). <br />10. If the Governmental Unit has outstanding revenue bonds, the Auditor shall submit to the SLGFD either in the notes to <br />the audited financial statements or as a separate report, a calculation demonstrating compliance with the revenue <br />bond rate covenant. Additionally, the Auditor shall submit to the SLGFD simultaneously with the <br />Page 2 of 9 <br />