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DocuSign Envelope ID: FD83399B-C72A-42C4-A531-71667A72DBC7 <br /> LGC-205 CONTRACT TO AUDIT ACCOUNTS Rev. 10/2018 <br /> the Auditor to present to the Governmental Unit(s) for payment. Approval is not required on contracts and <br /> invoices for system improvements and similar services of a non-auditing nature. <br /> 9. In consideration of the satisfactory performance of the provisions of this contract, the Governmental <br /> Unit(s) shall pay to the Auditor, upon approval by the Secretary of the LGC, the fee, which includes any costs <br /> the Auditor may incur from work paper or peer reviews or any other quality assurance program required by <br /> third parties (federal and state grantor and oversight agencies or other organizations) as required under the <br /> Federal and State Single Audit Acts. This does not include fees for any pre-issuance reviews that may be <br /> required by the NC Association of CPAs (NCACPA) Peer Review Committee or NC State Board of CPA <br /> Examiners (see Item 12). <br /> 10. If the Governmental Unit(s) has/have outstanding revenue bonds, the Auditor shall submit to LGC staff, <br /> either in the notes to the audited financial statements or as a separate report, a calculation demonstrating <br /> compliance with the revenue bond rate covenant. Additionally, the Auditor shall submit to LGC staff <br /> simultaneously with the Governmental Unit's (Units') audited financial statements any other bond compliance <br /> statements or additional reports required by the authorizing bond documents, unless otherwise specified in the <br /> bond documents. <br /> 11. After completing the audit, the Auditor shall submit to the Governing Board a written report of audit. <br /> This report shall include, but not be limited to, the following information: (a) Management's Discussion and <br /> Analysis, (b) the financial statements and notes of the Governmental Unit(s) and all of its component units <br /> prepared in accordance with GAAP, (c) supplementary information requested by the Governmental Unit(s) or <br /> required for full disclosure under the law, and (d) the Auditor's opinion on the material presented. The Auditor <br /> shall furnish the required number of copies of the report of audit to the Governing Board upon completion. <br /> 12. If the audit firm is required by the NC State Board, the NCACPA Peer Review Committee, or the <br /> Secretary of the LGC to have a pre-issuance review of its audit work, there shall be a statement in the <br /> engagement letter indicating the pre-issuance review requirement. There also shall be a statement that the <br /> Governmental Unit(s) shall not be billed for the pre-issuance review. The pre-issuance review shall be <br /> performed prior to the completed audit being submitted to LGC Staff. The pre-issuance review report shall <br /> accompany the audit report upon submission to LGC Staff. <br /> 13. The Auditor shall submit the report of audit in PDF format to LGC Staff when (or prior to) submitting the <br /> final invoice for services rendered. The report of audit, as filed with the Secretary of the LGC, becomes a <br /> matter of public record for inspection, review and copy in the offices of the LGC by any interested parties. Any <br /> subsequent revisions to these reports shall be sent to the Secretary of the LGC along with an Audit Report <br /> Reissued Form (available on the Department of State Treasurer website). These audited financial statements, <br /> excluding the Auditors' opinion, may be used in the preparation of official statements for debt offerings by <br /> municipal bond rating services to fulfill secondary market disclosure requirements of the Securities and <br /> Exchange Commission and for other lawful purposes of the Governmental Unit(s) without requiring consent of <br /> the Auditor. If the LGC Staff determines that corrections need to be made to the Governmental Unit's (Units') <br /> financial statements, those corrections shall be provided within three business days of notification unless <br /> another deadline is agreed to by LGC staff. <br /> If the OSA designates certain programs to be audited as major programs, as discussed in Item 2, a turnaround <br /> document and a representation letter addressed to the OSA shall be submitted to LGC Staff. <br /> 14. Should circumstances disclosed by the audit call for a more detailed investigation by the Auditor than <br /> necessary under ordinary circumstances, the Auditor shall inform the Governing Board in writing of the need <br /> for such additional investigation and the additional compensation required therefore. Upon approval by the <br /> Page 3 of 8 <br />