OTHER-2026-037-North Carolina Local Government Commission Audit Contract with Mauldin & Jenkins LLC

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LGC-205 Form A CONTRACT TO AUDIT ACCOUNTS Rev. 02/2026 3 . If an entity is determined to be a component of another government as defined by the group audit standards , the entity' s auditor shall make a good faith effort to comply in a timely manner with the requests of the group auditor in accordance with AU -6 §600441 - § 600AZ 4 . This contract contemplates an unmodified opinion being rendered . If during the process of conducting the audit , the Auditor determines that it will not be possible to render an unmodified opinion on the financial statements of the unit , the Auditor shall contact the LGC Staff to discuss the circumstances leading to that conclusion as soon as is practical and before the final report is issued . The audit shall include such tests of the accounting records and such other auditing procedures as are considered by the Auditor to be necessary in the circumstances . Any limitations or restrictions in scope which would lead to a qualification should be fully explained in an attachment to this contract . 5 . If this audit engagement is subject to the standards for audit as defined in Government Auditing Standards (2018 revision or subsequent revisions , as applicable ) issued by the Comptroller General of the United States , then by accepting this engagement , the Auditor warrants that he or she has met the requirements for a peer review and continuing education as specified in Government Auditing Standards . The Auditor agrees to provide a copy of the most recent peer review report to the Governmental Unit (s ) and to the Secretary of the LGC prior to the execution of an audit contract . Subsequent submissions of the report are required only upon report expiration or upon the Auditor' s receipt of an updated peer review report . If the audit firm receives a peer review rating other than pass , the Auditor shall not contract with the Governmental Unit(s ) without first contacting the Secretary of the LGC for a peer review analysis that may result in additional contractual requirements . If the audit engagement is not subject to Government Auditing Standards or if financial statements are not prepared in accordance with U . S . generally accepted accounting principles (GAAP ) and fail to include all disclosures required by GAAP , the Auditor shall provide an explanation as to why in an attachment to this contract or in an amendment . 6 . It is agreed that time is of the essence in this contract . All audits are to be performed , and the report of audit submitted to LGC Staff, within six months of fiscal year end . At the time of the execution of this contract , if the parties know that the anticipated submission date of the audit exceeds six months after fiscal year end , a written explanation shall be provided to the Secretary of the LGC on this contract form (see the space provided on Page 7) . If it becomes necessary to amend the audit fee or the date that the audit report will be submitted to the LGC , an amended contract along with a written explanation of the change shall be submitted to the Secretary of the LGC for approval . 7 . It is agreed that GAAS include a review of the Governmental Unit' s ( Units ' ) systems of internal control and accounting as they relate to accountability of funds and adherence to budget and law requirements applicable thereto ; that the Auditor shall make a written report , which may or may not be a part of the written report of audit , to the Governing Board setting forth the Auditor' s findings , together with his or her recommendations for improvement . That written report shall include all matters determined to be " significant deficiencies and material weaknesses" in accordance with AU -C § 265 " Communicating Internal Control Related Matters Identified in an Audit" of GAAS . The Auditor shall file a copy of that report with the Secretary of the LGC . For GAAS or Government Auditing Standards audits , if an Auditor issues an AU -C §260 report , "Auditor's Communication With Those Charged With Governance , " commonly referred to as a " Governance Letter , " LGC staff does not require the report to be submitted unless the Auditor cites significant findings or issues from the audit , as defined in AU -C § 260 paragraphs 12 - 14 . This would include issues such as difficulties encountered during the audit , significant or unusual transactions , uncorrected misstatements , matters that are difficult or contentious for which the Auditor consulted outside the engagement team and , in the Auditor' s judgment , are significant and relevant to those charged with governance , and other findings or issues that the Auditor believes are significant and relevant . If matters identified during the audit were required to be reported as described in AU -C § 260 paragraphs 12 - 14 and were communicated in a method other than an AU -C §260 letter, the written documentation must be submitted . Page 2