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LGC-205 (Rev. 1/1/2003) CONTRACT TO AUDIT ACCOUNTS
<br />Fde in Triplicate,
<br />of Orange County, North Carolina
<br />Governmental Unit
<br />On th15 31St day of March 2003 l:herry, gekaert, 8 Holland, L1P
<br />Auditor
<br />P.O. Drawer 47 Fayetteville, North Carolina 28302
<br />Mailing Address -
<br />hereinafi:er referred to as
<br />the Auditor, and ~+ah coaamssionar of orange County North Carolina ,hereinafter referred
<br />Governing Board Governmental Unit
<br />to as the Governmental Uttit, agree as follows:
<br />I. The Auditor shall audit all statements and disclosures required by generally accepted accounting principles and additional
<br />required legal sffitemrnts and disclosures of all funds and/or divisions of the Governmrntal [Jnit for the period beginning
<br />.htr t , moz ,and ending ~~ ~ ,2003 .The combining, individual fund, and account
<br />group financial statements and schedules shall be subjected to the auditing procedures applied. in the audit of the wmbined
<br />financial statements and an opinion will be rendered in relation to the combined financial statements taken as a whole.
<br />2. At a minimum, the Auditor shall conduct his audit and render his report in accordance with generally accepted auditing
<br />standards. The Auditor shall perfomt the audit in accordance with Govemment Auditine Standards if required by the State Single
<br />Audit Implementation Act, as codified in G.S. 159-34. If required by OMB Circular A-13:3 and the State Single Audit
<br />Implemrnffition Act, the auditor shall perform a Single Audit
<br />3. This contract contemplates an unqual~ed opinion being rendered if financial statements are not prepared in accordance with
<br />grnerally aceepted accounting principles (GAAP), or the statements fail to include all disclosures required by GAAP, explain
<br />that departure from GAAP in the space below:
<br />4. This contract contemplates an unqualified opinion being rendered. The audit shall include such tests of the accounting records
<br />and such other auditing procedures as are considered by the Auditor to be necessary in the circumstances. Any limitations or
<br />restrictions in scope which would lead to a qualification should be fully explained in an attachment to this contract. The audit
<br />will have no scope limitations except:
<br />5. If this audit engagement is subject to the standards for audit as defined in Govemment Auditing a.+ a c issued by the
<br />Comptroller General of the United States, thrn the Auditor warrants by accepting this engagemrnt that helshe has met the
<br />requiremrnts for a peer review and continuing education as specified in Govern_mrnt Auditing arrla. The Auditor agrees to
<br />provide a copy of their most recent peer review report to the GovemmenffiI Unit and the Secretary of the Local Govemment
<br />Commission ~~ the execution of the audit contract (See Item 20.)
<br />6. It is agreed that time is of the essrnce in this contract. All audits are to be performed and the report of audit submitted by
<br />October 31 2003
<br />7. It is agrced that generally accepted auditing standards include a review of the Governmental Unit's system of intental control and
<br />accounting as same relates to accountability of funds and adherence to budget and law requirements applicable thereto; that the
<br />Auditor will make a written report, which may or may not be a part of the written report of audit, to the Governing Board setting
<br />forth his findings, together with his recommendations for improvement. That written report must iinclude all matters defined as
<br />"reportable conditions" in AU 325 of the AiCPA Professional c an arrlc, The Auditor shall file a cony of that report with the
<br />Secreffirv of the Local Govemment Cnmmisaicm,
<br />8. All local govemmrnt and public authority contracts for annual or special audits, bookkeeping or' other assistance necessary to
<br />prepare the Unit's records for audit, financial statement preparation, any finance-related investigations, or any other audit-related
<br />work in the State of North Carolina require the approval of the Secretary of the Local Government Commission. Invoices for
<br />5ecreffiry or the Local Govemment o mi ion. tThic alto incl +d am+ proeresc billing,,,) All invoices should be submitted in
<br />triplicate to the Secretary of the Local Governmrnt Commission. The original and one copy will be returned to the Auditor.
<br />Approval is not required on contracts and invoices for system improvements and similar services of anon-auditing nature.
<br />9. In consideration of the satisfactory performance of the provisions of this agreement, the Govemmrntal Unit shall pay to the
<br />Auditor, upon approval by the Secreffiry of the Local Govemment Commission, the following fee which includes any cost the
<br />Auditor may incur from work paper or peer reviews or any other quality assurance program required by third parties (Federal and
<br />State grantor and oversight agencies or other organizations) as required under the Federal and Sffite :angle Audit Acts:
<br />Year-end bookkeeping assistance - N/A
<br />Audit - $39,000 -Financial Audft, $19,000 -Single Audit, $2000 -for each additional single audit progran
<br />Preparation of the financial statements - $6,000
<br />10. After completing his audit, the Auditor shall submit to the Governing Board a written report of audit. This report shall include, at
<br />least, the financial sffitements of the govemmrnffi1 unit and all of its component units and notes thereto prepared in accordance
<br />with generally accepted accounting principles, combining and suppiementary information requested'. by the client or required for
<br />full disclosure under the law, and the Auditor's opinion on the materiel presented. The Auditor shall) famish the required number
<br />of copies of the report of audit to the Governing Board as soon as practical after the close of the accounting period.
<br />11. The Auditor shall file with the Local Govemment Commission two copies of the report of audit, including one copy of the
<br />federal Data Collection Form, if a federal single audit is conducted Two copies of the report of audit should be submitted if an
<br />audit is required to be performed only under the requiremrnts of the State Single Audit Implementatiion Act or a financial audit is
<br />required to be performed in accordance with Govemment Anditiag C an ands. Otherwise, one copy shall be submitted. Copies of
<br />the report shall be filed with the Local Government Commission when (or prior to) submitting the invoice for the services
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