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LGC -205 CONTRACT TO AUDIT ACCOUNTS Rev . 11 /2023 <br /> & All local government and public authority contracts for audit or audit-related work require the <br /> approval of the Secretary of the LGC . This includes annual or special audits , agreed upon procedures <br /> related to internal controls , bookkeeping or other assistance necessary to prepare the Governmental Unit' s <br /> records for audit , financial statement preparation , any finance - related investigations , or any other audit. related <br /> work in the State of North Carolina . Approval is also required for the Alternative Compliance Examination <br /> Engagement for auditing the Coronavirus State and Local Fiscal Recovery Funds <br /> expenditures as allowed by US Treasury . Approval is not required on audit contracts and invoices for <br /> system improvements and similar services of a non -auditing nature . <br /> 9 . Invoices for services rendered under these contracts shall not be paid by the Governmental Unit(s ) until <br /> the invoice has been approved by the Secretary of the LGC . This also includes any progress billings <br /> [G . S . 159-34 and 115C447] . All invoices for audit work shall be submitted in PDF format to the Secretary <br /> of the LGC for approval . I the invoice marked ' approved ' with approval date shall be returned to the Auditor <br /> to present to the Governmental Unit(s ) for payment . This paragraph is not applicable to contracts for audits <br /> 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 includes <br /> any costs the Auditor may incur from work paper or peer reviews or any other quality assurance program <br /> 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 State <br /> Board of CPA Examiners (see . ltem 13 ) . <br /> Unit(s ) as ave outstanding revenue bonds the Auditor she submit to LGC Staff, <br /> 11 . If the Governmental nit( ) h /h t g II <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 . This <br /> report shall include , but not be limited to , the following information : (a ) Management' s Discussion and Analysis , <br /> ( b ) the financialT statements and notes of the Governmental Unit(s ) and all of its component units prepared in <br /> accordance with GAAP , (c) supplementary information requested by the Governmental Unit(s ) or required for full <br /> disclosure under the law , and (d ) the Auditor' s opinion on the material presented . The Auditor shall furnish the <br /> 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 performed <br /> prior to the completed audit being submitted to LGC Staff. The pre- issuance . review report shall accompany the <br /> audit report upon submission to LGC Staff. <br /> Page 3 <br />