Orange County NC Website
Browse       Search
Contract to Audit Accounts (cont.) Orange County <br />Primary Government Unit <br />not applicable <br />Discretely Presented Component Unit (DPCU) if applicable <br />Steps to Completing the Audit Contract <br />Complete the header information — If a DPCU is subject to the audit requirements found in the Local Government <br />Budget and Fiscal Control Act and a separate report is being issued for that DPCU, a separate audit contract for the <br />DPCU is required. If a separate report is not being issued for the DPCU — it is being included in the Primary <br />Government's audit — the DPCU shall be named with the Primary Government on the audit contract for the <br />Primary Government. The Board Chairperson of the DPCU shall sign the audit contract in addition to the elected <br />leader of the Primary Government. <br />2. Item No. 1 — Complete the period covered by the audit <br />3. Item No. 6 — Fill in the audit due date. For Goverrunental 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. hops:// �t rwNv.netreasurer.com /slg/Pages /Audit - Forms- and- Resources.aspx <br />5. Item No. 9 — Please note that the new fee section has been moved to page 5. <br />6. Item No. 16 — Has the engagement letter been attached to the contract that is being submitted to 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 teems of the engagement letter and the terms of this contract, the terms of this <br />contract shall take precedence. " <br />b. Does the engagement letter contain an indemnification clause? The audit contract shall not <br />be 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 fees <br />page; 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 shall 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 : //hvww.nctreasurer,com /slg/Ifm /audit acet/Pages /default.aspx select "audit fees" <br />Please call or email Lorna Hodge at 919 -814 -4299 lorna.hodgea.n. eireasurer.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 acluiowledged in writing by the Governmental <br />Unit? <br />Page 8 of 9 <br />