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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 /> 1. 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 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://�vwNv.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 terms of the engagement letter and the teems 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://www.nctreasurer.com/sl,2/lfm/audit acct/Pages/defa.ult.aspx select"audit fees" <br /> Please call or email Lorna Hodge at 919-814-4299 lorna.hodgennctreasurer.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 8 of 9 <br />