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6 <br /> LGC-205 CONTRACT TO AUDIT ACCOUNTS Rev. 11/2023 <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. These audited financial statements, excluding the <br /> Auditors' opinion, may be used in the preparation of official statements for debt offerings by municipal bond <br /> rating services to fulfill secondary market disclosure requirements of the Securities and Exchange Commission <br /> and for other lawful purposes of the Governmental Unit(s) without requiring consent of the Auditor. If the LGC <br /> Staff determines that corrections need to be made to the Governmental Unit's (Units') financial statements and/ <br /> or the compliance section, those corrections shall be provided within three business days of notification unless <br /> another deadline is agreed to by 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 for <br /> such additional investigation and the additional compensation required therefore. Upon approval by the <br /> Secretary of the LGC, this contract may be modified or amended to include the increased time, compensation, <br /> or both as may be agreed upon by the Governing Board and the Auditor. <br /> 16. If an approved contract needs to be modified or amended for any reason, the change shall be made in <br /> writing and pre-audited if the change includes a change in audit fee (pre-audit requirement does not apply to <br /> hospitals). This amended contract shall be completed in full, including a written explanation of the change, <br /> signed and dated by all original parties to the contract. It shall then be submitted to the Secretary of the LGC for <br /> approval. No change to the audit contract shall be effective unless approved by the Secretary of the LGC. <br /> 17. A copy of the engagement letter, issued by the Auditor and signed by both the Auditor and the <br /> Governmental Unit(s), shall be attached to this contract, and except for fees, work, and terms not related to audit <br /> services, shall be incorporated by reference as if fully set forth herein as part of this contract. In case of conflict <br /> between the terms of the engagement letter and the terms of this contract, the terms of this contract shall take <br /> precedence. Engagement letter terms that conflict with the contract are deemed to be void unless the conflicting <br /> terms of this contract are specifically deleted in Item 30 of this contract. Engagement letters containing <br /> indemnification clauses shall not be accepted by LGC Staff. <br /> 18. Special provisions should be limited. Please list any special provisions in an attachment. <br /> 19. A separate contract should not be made for each division to be audited or report to be submitted. If a <br /> DPCU is subject to the audit requirements detailed in the Local Government Budget and Fiscal Control Act and <br /> a separate audit report is issued, a separate audit contract is required. If a separate report is not to be issued <br /> and the DPCU is included in the primary government audit, the DPCU shall be named along with the primary <br /> government on this audit contract. DPCU Board approval date, signatures from the DPCU Board chairman and <br /> finance officer also shall be included on this contract. <br /> 20. The contract shall be executed, pre-audited (pre-audit requirement does not apply to hospitals), and <br /> physically signed by all parties including Governmental Unit(s) and the Auditor, then submitted in PDF format to <br /> the Secretary of the LGC. <br /> 21. The contract is not valid until it is approved by the Secretary of the LGC. The staff of the LGC shall notify <br /> the Governmental Unit and Auditor of contract approval by email. The audit should not be started before the <br /> contract is approved. <br /> 22. Retention of Client Records: Auditors are subject to the NC State Board of CPA Examiners' Retention of <br /> Client Records Rule 21 NCAC 08N .0305 as it relates to the provision of audit and other attest services, as well <br /> as non-attest services. Clients and former clients should be familiar with the requirements of this rule prior to <br /> requesting the return of records. <br /> Page 4 <br />