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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 . E4erify . 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 /> I <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 /> B <br />