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CONTRACT TO AUDIT ACCOUNTS LGC-205 Rev. 9/2019 <br />the Auditor to present to the Governmental Unit(s) for payment. This SDUDJUDSKis not applicable to <br />contracts for audits of hospitals. <br />10. 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 if required, the fee, which <br />includes any costs the Auditor may incur from work paper or peer reviews or any other quality assurance <br />program required by third parties (federal and state grantor and oversight agencies or other organizations) <br />as required under the Federal and State Single Audit Acts. This does not include fees for any pre-issuance <br />reviews that may be required by the NC Association of CPAs (NCACPA) Peer Review Committee or NC <br />State Board of CPA Examiners (see Item 13). <br />11. 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 />12. 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 />13. 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 />14. The Auditor shall submit the report of audit in PDF format to LGC Staff. For audits of units other than <br />hospitals, the audit report should be submitted when (or prior to) submitting the final invoice for services <br />rendered. The report of audit, as filed with the Secretary of the LGC, becomes a matter of public record for <br />inspection, review and copy in the offices of the LGC by any interested parties. Any subsequent revisions to <br />these reports shall be sent to the Secretary of the LGC along with an Audit Report Reissued Form (available <br />on the Department of State Treasurer website). These audited financial statements, excluding the Auditors’ <br />opinion, may be used in the preparation of official statements for debt offerings by municipal bond rating <br />services to fulfill secondary market disclosure requirements of the Securities and Exchange Commission and <br />for other lawful purposes of the Governmental Unit(s) without requiring consent of the Auditor. If the LGC Staff <br />determines that corrections need to be made to the Governmental Unit’s (Units’) financial statements, those <br />corrections shall be provided within three business days of notification unless another deadline is agreed to by <br />LGC staff. <br />15. 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 <br />DocuSign Envelope ID: D2809161-AA0B-4AFA-8A26-418CF7221077