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6 <br /> LGC-205 Form A CONTRACT TO AUDIT ACCOUNTS Rev. 02/2026 <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 preaudited if the change includes a change in audit fee (preaudit 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 Paragraph 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, preaudited (preaudit 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 5 <br />