Agenda - 12/11/2008 - 4g - Laserfiche WebLink

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LGC-205 (Rev. 1/1/2008) CONTRACT TO AUDIT ACCOUNTS File in Triplicate. of Orange County, North Carolina Govemmental Unit On this 11`h day of December , 2008 McGladrev and Pullen LLP Auditor . PO Box 2470, Greensboro, NC 27402-2470 ,hereinafter referred to as the Auditor Mailing Address and the Commissioners . of .. Orange Counter ,hereinafter referred to as the Governmental Unit, agree as follows: Governing Board Govemmental Unit 1. The Auditor shall audit all statements and disclosures required by generally accepted accounting principles and additional required legal statements and disclosures of all funds and/or divisions of the Governmental Unit for the period beginning ,July 1, 2007 ,and ending June 30 , 2008 . The non-major combining, and individual fund statements and schedules shall be subjected to the auditing procedures applied in the audit of the basic financial statements and an opinion will be rendered in relation to (as applicable) the governmental activities, the business-type activities, the aggregate discretely presented component units, each major governmental and enterprise fund, and the aggregate remaining fund information (nonmajor government and enterprise funds, the internal service fund type, and the fiduciary fund types). 2. At a minimum, the Auditor shall conduct his/her audit and render his/her report in accordance with generally accepted auditing standazds. The Auditor shall perform the audit in accordance with Government Auditing standazds if required by the State Single Audit Implementation Act, as codified in G.S. 159-34. If required by OMB Circular A-133 and the State Single Audit Implementation Act, the auditor shall perform a Single Audit. This audit and all associated workpapers may be subject to review by Federal and State agencies in accordance with Federal and State laws, including the staffs of the Office of State Auditor (OSA) and the LGC. If the audit and/or workpapers aze found in this review to be substandazd, the results of the review may be forwarded to the North Cazolina State Board of CPA Examiners. 3. This contract contemplates an unqualified opinion being rendered. If financial statements are not prepazed in accordance with generally accepted accounting principles (GAAP), or the statements fail to include all disclosures required by GAAP, explain that departure from GAAP in the space below: 4. This contract contemplates an unqualified opinion being rendered. 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. The audit will have no scope limitations except: 5. If this audit engagement is subject to the standards for audit as defined in Government Auditing Standards, July 2007 revisions, issued by the Comptroller General of the United States, then the Auditor warrants by accepting this engagement that he has met the requirements for a peer review and continuing education as specified in Government Auditine standazds. The Auditor agrees to provide a copy of their most recent peer review report to the Governmental Unit and the Secretary of the Local Government Commission rior to the execution of the audit contract. (See Item 21.) 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 by December 31, 2008 7. It is agreed that generally accepted auditing standazds include a review of the Governmental Unit's system of internal control and accounting as same relates to accountability of funds and adherence to budget and law requirements applicable thereto; that the Auditor will make a written report, which may or may not be a part of the written report of audit, to the Governing Board setting forth his findings, together with his recommendations for improvement. That written report must include all matters defined as "significant deficiencies and material weaknesses" in AU 325 of the AICPA Professional standazds. The Auditor shall file a copy of that report with the Secretary of the Local Government Commission . 8. All local government and public authority contracts for annual or special audits, bookkeeping or other assistance necessary to prepaze the Unit's records for audit, financial statement prepazation, any finance-related investigations, or any other audit-related work in the State of North Cazolina require the approval of the Secretary of the Local Government Commission. Secretary of the Local Government Commission. (This also includes an~proeress billings.) services rendered under these contracts shall not be paid by the Governmental Unit until the invoice has been approved by the Invoices for [G.S. 159-34 and 115C-447] All invoices should be submitted in triplicate to the Secretary of the Local Government Commission. The original and one copy will be returned to the Auditor. Approval is not required on contracts and invoices for system improvements and similaz services of anon-auditing nature. 9. In consideration of the satisfactory performance of the provisions of this agreement, the Governmental Unit shall pay to the Auditor, upon approval by the Secretary of the Local Government Commission, the followin¢ fee which includes any cost 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 and State Single Audit Acts: Year-end bookkeeping assistance - [ For audits subject to Government Auditing Standards, this is limited to bookkeeping services permitted by revised Independence Standards] None anticipated Anv services performed in addition to normal audit procedures will be chaz eg d e at standard rates Audit -County $83 300 contineent on timely completion of required PBC's An~vs will be charged at standard rates. Anv additional maior proerams above (4) four shall be billed at $4.000 each Preparation of the financial statements - $5 000 for the preparation of schedules of property taxes for the Towns of Chapel Hill Carrboro and Hillsboroueh . 10 After completing his audit, the Auditor shall submit to the Governing Board a written report of audit. This report shall include, at least, Management's Discussion and Analysis, the financial statements of the governmental unit and all of its component units and notes thereto prepared in accordance with generally accepted accounting principles, combining and supplementary information requested by the client or required for full disclosure under the law, and 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 as soon as practical after the close of the accounting period.