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LGC -205 CONTRACT TO AUDIT ACCOUNTS Rev. 1212024 <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 />