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 8 . All local government and public authority contracts for audit or audit-related work require the approval of the Secretary of the LGC . This includes annual or special audits , agreed upon procedures related to internal controls , bookkeeping or other assistance necessary to prepare the Governmental Unit' s records for audit , financial statement preparation , any finance-related investigations , or any other audit- related work in the State of North Carolina . Approval is also required for the Alternative Compliance Examination Engagement for auditing the Coronavirus State and Local Fiscal Recovery Funds expenditures as allowed by US Treasury . Approval is not required on audit contracts and invoices for system improvements and similar services of a non -auditing nature . 9 . Invoices for services rendered under these contracts shall not be paid by the Governmental Unit(s) until the invoice has been approved by the Secretary of the LGC . This also includes any progress billings [G . S . 159-34 and 115C-447] . All invoices for audit work shall be submitted in PDF format to the Secretary of the LGC for approval . The invoice marked ' approved ' with approval date shall be returned to the Auditor to present to the Governmental Unit (s) for payment . This paragraph is not applicable to contracts for audits of hospitals . 10 . In consideration of the satisfactory performance of the provisions of this contract , the Governmental Unit(s) shall pay to the Auditor, upon approval by the Secretary of the LGC if required , the fee , which includes any costs the Auditor may incur from work paper or peer reviews or any other quality assurance program required by third parties (federal and state grantor and oversight agencies or other organizations ) as required under the Federal Single Audit Act and the State Single Audit Act . This does not include fees for any pre-issuance reviews that may be required by the North Carolina Association of Certified Public Accountants ( NCACPA) Peer Review Committee or North Carolina State Board of CPA Examiners (see Paragraph 13 ) . 11 . If the Governmental Unit(s ) has/have outstanding revenue bonds , the Auditor shall submit to LGC Staff, either in the notes to the audited financial statements or as a separate report, a calculation demonstrating compliance with the revenue bond rate covenant . Additionally, the Auditor shall submit to LGC Staff simultaneously with the Governmental Unit's ( Units ' ) audited financial statements any other bond compliance statements or additional reports required by the authorizing bond documents , unless otherwise specified in the bond documents . 12 . After completing the audit, the Auditor shall submit to the Governing Board a written report of audit. This report shall include , but not be limited to , the following information : (a ) Management' s Discussion and Analysis , ( b ) the financial statements and notes of the Governmental Unit(s ) and all of its component units prepared in accordance with GAAP , (c) supplementary information requested by the Governmental Unit(s ) or required for full disclosure under the law , and (d ) the Auditor's opinion on the material presented . The Auditor shall furnish the required number of copies of the report of audit to the Governing Board uponcompletion . 13 . If the audit firm is required by the Secretary of the Local Government Commission to obtain a pre- issuance review or take corrective action as a result of peer review findings or quality control deficiencies , such corrective action shall be consistent with the authority and requirements of the North Carolina State Board of Certified Public Accountant Examiners , the AICPA Peer Review Program , and established Local Government Commission practice , including the use of report addenda or other remedial measures , as appropriate . Page 3