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7 <br /> LGC-205 CONTRACT TO AUDIT ACCOUNTS Rev. 11/2023 <br /> 23. This contract may be terminated at any time by mutual consent and agreement of the Governmental <br /> Unit(s) and the Auditor, provided that (a) the consent to terminate is in writing and signed by both parties, <br /> (b) the parties have agreed on the fee amount which shall be paid to the Auditor (if applicable), and (c) no <br /> termination shall be effective until approved in writing by the Secretary of the LGC. <br /> 24. The Governmental Unit's (Units') failure or forbearance to enforce, or waiver of, any right or an event <br /> of breach or default on one occasion or instance shall not constitute the waiver of such right, breach or <br /> default on any subsequent occasion or instance. <br /> 25. There are no other agreements between the parties hereto and no other agreements relative hereto <br /> that shall be enforceable unless entered into in accordance with the procedure set out herein and approved <br /> by the Secretary of the LGC. <br /> 26. E-Verify. Auditor shall comply with the requirements of NCGS Chapter 64 Article 2. Further, if Auditor <br /> utilizes any subcontractor(s), Auditor shall require such subcontractor(s)to comply with the requirements of <br /> NCGS Chapter 64, Article 2. <br /> 27. Applicable to audits with fiscal year ends of June 30, 2020 and later. For all non-attest services, <br /> the Auditor shall adhere to the independence rules of the AICPA Professional Code of Conduct and <br /> Government Auditing Standards, 2018 Revision (as applicable). Financial statement preparation assistance <br /> shall be deemed a "significant threat" requiring the Auditor to apply safeguards sufficient to reduce the threat <br /> to an acceptable level. If the Auditor cannot reduce the threats to an acceptable level, the Auditor cannot <br /> complete the audit. If the Auditor is able to reduce the threats to an acceptable level, the documentation of <br /> this determination, including the safeguards applied, must be included in the audit workpapers. <br /> All non-attest service(s) being performed by the Auditor that are necessary to perform the audit must be <br /> identified and included in this contract. The Governmental Unit shall designate an individual with the suitable <br /> skills, knowledge, and/or experience (SKE) necessary to oversee the services and accept responsibility for <br /> the results of the services performed. If the Auditor is able to identify an individual with the appropriate SKE, <br /> s/he must document and include in the audit workpapers how he/she reached that conclusion. If the Auditor <br /> determines that an individual with the appropriate SKE cannot be identified, the Auditor cannot perform both <br /> the non-attest service(s) and the audit. See "Fees for Audit Services" page of this contract to disclose the <br /> person identified as having the appropriate SKE for the Governmental Unit. <br /> 28. Applicable to audits with fiscal year ends of June 30, 2021 and later. The auditor shall present the <br /> audited financial statements including any compliance reports to the government unit's governing body or <br /> audit committee in an official meeting in open session as soon as the audited financial statements are <br /> available but not later than 45 days after the submission of the audit report to the Secretary. The auditor's <br /> presentation to the government unit's governing body or audit committee shall include: <br /> a) the description of each finding, including all material weaknesses and significant deficiencies, as <br /> found by the auditor, and any other issues related to the internal controls or fiscal health of the <br /> government unit as disclosed in the management letter, the Single Audit or Yellow Book reports, or <br /> any other communications from the auditor regarding internal controls as required by current auditing <br /> standards set by the Accounting Standards Board or its successor; <br /> b) the status of the prior year audit findings; <br /> c) the values of Financial Performance Indicators based on information presented in the audited <br /> financial statements; and <br /> d) notification to the governing body that the governing body shall develop a "Response to the <br /> Auditor's Findings, Recommendations, and Fiscal Matters," if required under 20 NCAC 03 .0508. <br /> 29. Information based on the audited financial statements shall be submitted to the Secretary for the purpose <br /> of identifying Financial Performance Indicators and Financial Performance Indicators of Concern. See 20 <br /> NCAC 03 .0502(c)(6). <br /> Page 5 <br />