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7 <br /> LGC-205 Form A CONTRACT TO AUDIT ACCOUNTS Rev. 02/2026 <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. The Auditor shall comply with the requirements of NCGS Chapter 64 Article 2. Further, if the <br /> Auditor utilizes any subcontractor(s), Auditor shall require such subcontractor(s) to comply with the <br /> requirements of NCGS Chapter 64, Article 2. <br /> 27. For all non-attest services, the Auditor shall adhere to the independence rules of the AICPA <br /> Professional Code of Conduct and Government Auditing Standards, 2018 or 2024 Revision (as applicable). <br /> Preparing financial statements in their entirety shall be deemed a "significant threat" requiring the Auditor to <br /> apply safeguards sufficient to reduce the threat to an acceptable level. If the Auditor cannot reduce the threats <br /> to an acceptable level, the Auditor cannot complete the audit. If the Auditor is able to reduce the threats to an <br /> acceptable level, the documentation of this determination, including the safeguards applied, must be included <br /> 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 /> the Auditor must document and include in the audit workpapers how the Auditor reached that conclusion. If <br /> the Auditor determines that an individual with the appropriate SKE cannot be identified, the Auditor cannot <br /> perform both the non-attest service(s) and the audit. See "Fees for Audit Services" page of this contract to <br /> disclose the 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 Board 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 of the LGC. The <br /> Auditor's presentation to the Governing Board 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; <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 Board that the Governing Board shall develop a "Response to the <br /> Auditor's Findings, Recommendations, and Fiscal Matters," if required under Rule 20 NCAC 03 .0508. <br /> Page 6 <br />