Loading...
HomeMy WebLinkAbout2011-035 Finance - Martin, Starnes & Associates, CPAs, P.A. - Contract to Audit AccountsR ECEIVE~ LGC-zos (xev. 2oto) CONTRACT TO AUDIT ACCOUNTS FEg 14 2011 File in Triplicate. of Orange County, NC t_!:)CAL t30VERIUMERl~" Governmental Unit COMMISSIOi~7 On this 15th day of December 2010 Martin Staines & Associates, CPAs, P.A. Auditor 730 13th Avenue Drive SE, Hickory, NC 28602 Mailing Address the Auditor, and Board of Commissioners of Governing Board to as the Governmental Unit, agree as follows: hereinafter referred to as Orange County, NC .hereinafter referred Governmental 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 2010 ,and ending June 30 2011 .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 standards. The Auditor shall perform the audit in accordance with Government Auditing Standards 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 asencies in accordance with Federal and State laws, includin¢ the staffs of the Office of State Auditor (OSAI and the LGC. If the audit and/or worknaoers are found in this review to be substandard, the results of the review may be forwarded to the North Carolina 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. T7xis 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 standazds 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 Auditin¢ Standards. The Auditor agrees to provide a copy of their most recent peer review report regardless of the date of the prior peer review report to the Governmental Unit and the Secretary of the Local Government Commission prior 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 to the LGC by October 31 2011 If it becomes necessary to amend the due date of the audit a written explanation of the delay must accompany the amended contract. 7. It is agreed that generally accepted auditing standards 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 Standards. 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 prepare the Unit's records for audit, financial statement preparation, 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. Invoices for services rendered under these contracts shall not be paid bY_the Governmental Unit until the invoice has been anoroved by the Secretary of the Local Government Commission. (This also includes anv proeress billin¢s.l [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 Contract to Audit Accounts (cont.) Orange County, NC (name of unit) returned to the Auditor. Approval is not required on contracts and invoices for system improvements and similar services of a non- 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 following 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] Standard hourly rates ranging from $75-$250 per hour Audit $83,300 Preparation of the annual financial statements 10. The auditor working with local governmental unit that has outstanding revenue bonds will include in the notes to the audited financial statements, whether or not required by the revenue bond documents, a calculation demonstrating compliance with the revenue bond rate covenant. Additionally, the auditor should be aware that any other bond compliance statements or additional reports required in the authorizing bond documents need to be submitted to the LGC simultaneously with the local government's audited financial statements unless otherwise specified in the bond documents. 11. After completing the 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. 12. The Auditor shall file with the Local Government Commission two BOUND copies of the report of audit. If reports are received unbound they will not be reviewed by the LGC and will be returned to the auditor for binding. In addition, if the North Carolina Office of the State Auditor designates certain programs to be audited as major programs, a turnaround document and a representation letter addressed to the State Auditor shall be submitted to the Local Government Commission. Two bound copies of the report of audit should be submitted if the audit is performed only under the provisions of the State Single Audit Implementation Act or a fmancial audit is required to be performed in accordance with Government Auditing Standards. Three bound copies of the audit are to be submitted for Councils of Governments. Two bound copies of the audit should be submitted for tax levying Municipalities. Otherwise, one bound copy shall be submitted. Units that operate a 911 fund need to provide an additional copy to the number stated above. Bound copies of the report shall be filed with the Local Government Commission when (or prior to) submitting the invoice for the services rendered. The report of audit, as filed with the Secretary of the Local Government Commission, becomes a matter of public record for inspection and review in the offices of the Secretary by any interested parties. Any subsequent revisions to these reports must be sent to the Secretary of the Local Government Commission. These audited financial statements are used in the preparation of Official Statements for debt offerings (the auditors' opinion is not included), by municipal bond rating services, to fulfill secondary market disclosure requirements of the Securities and Exchange Commission, and other lawful purposes of the government, without subsequent consent of the auditor. If it is detemuned by the LGC that corrections need to be made to the unit's financial statements they should be provided within three days of notification unless, another time frame is agreed to by the LGC. 13. Should circumstances disclosed by the audit call for a more detailed investigation by the Auditor than necessary under ordinary circumstances, the Auditor shall inform the Governing Board in writing of the need for such additional investigation and the additional compensation required therefore. Upon approval by the Secretary of the Local Government Commission, this agreement may be varied or changed to include the increased time and/or compensation as may be agreed upon by the Governing Board and the Auditor. 14. If an approved contract needs to be varied or changed for any reason, the change must be made in writing, signed and dated by all parties and pre-audited if the change includes a change in audit fee. This document and a written explanation of the change must be submitted in triplicate to the Secretary of the Local Government Commission for approval. No chance shall be effective unless annroved by the Secretary of the Local Government Commission the Governine Board, and the Auditor. 15. Whenever the Auditor uses an engagement letter with the client, Item 16 is to be completed by referencing the engagement letter and attaching a copy of the engagement letter to the contract to incorporate the engagement letter into the contract. In case of conflict between the terms of the engagement letter and the terms of this contract, the terms of this contract will control. Engagement letter terms are deemed to be void unless the conflicting terms of this contract are specifically deleted in Item 22 of this contract. Engagement letters containing indemnification clauses will not be approved by the Local Government Commission. Contract to Audit Accounts (cont.) Orange County, NC (name of unit) 16. There are no special provisions except: 17. A separate contract should not be made for each division to be audited or report to be submitted. A separate contract must be executed for each component unit which is a local government and for which a separate audit report is issued. 18. The contract must be executed, pre-audited, signed by all parties and submitted in triplicate to the Secretary of the Local Government Commission. The mailing address is 325 North Salisbury Street, Raleigh, North Carolina 27603-1385. The physical address is 4505 Fair Meadow Lane, Suite 102, Raleigh, North Carolina 27607-6449. 19. The contract is a tri-party agreement and is not valid until it is approved by the Local Government Commission. Upon approval, the original contract will be returned to the Governmental Unit, a copy will be forwarded to the Auditor, and a copy retained by the Secretary of the Local Government Commission. The audit should not be started before the contract is approved. 20. There are no other agreements between the parties hereto and no other agreements relative hereto that shall be enforceable unless entered into in accordance with the procedure set out herein and approved by the Secretary of the Local Government Commission. 21. If this audit engagement is not subject to Government Auditing Standards, then Item 5 shall be listed as a deleted provision in Item 22. An explanation must be given for deleting this provision. 22. All of the above paragraphs are understood and shall apply to this agreement, except the following numbered paragraphs shall be deleted: (See Item 15.) Firm Martin Starnes & Associates, CPAs, P.A. By Marcie Spivey, Senior Audit Manager (Please type or print name) (Si~rature of authorize audit firm rer sentative) By Bernadette Pelissier, Chair (Please type or 'nt name and title) _O~r~ti (Signature of Mavor/Chairperson of governing board) Date Email Address: MSpivey@MartinStarnes.com Date December 15, 2010 Approved by the Secretary of the Local Government Commission as provided in Article 3, Chapter 159 of the General Statutes or Article 31, Part 3, Chapter 115C of th~~++e Ge//n~~erpQal Stwwat~~uteCS. pp ~poo ggpB rye p 67~d'4r!®E`~ E®9W149~®~f~&`~ For the Secretary, Local Government Commission ~~ ~B ~ ~ ignature) Date Email Address-~ .~p~ b >r~ ~ - ~ l~ ~1Z~ ClJ • ~~ r1~.kS By (Chair of Audit Committee- please type or print name) (Signature of Audit Committee Chairperson) Date (If unit has no audit covunittee, this section should be marked "N/A.") This instrument has been preaudited in the manner required by The Local Government Budget and Fiscal Control Act or by the School Budget and Fiscal Control Act Clarence G. Grier, Financial Services Director Governmental Unit Finance Offi er (Please type or print name) (Signature) Date ~3 ~ I I (Preaudit Certificate must be dated.) ~3 Email address ~, ` i ~ / ~' ~:~ . 1J w".~+ ' r'1 L Li S L~~'CE, FLT ~~MPAI`~1'Y LLP CERTIFIED PUBLIC ACCOUNTANTS SAMUEL A. BOYCE, PARTNER BOBBIE W. FURR, PARTNER May 5, 2009 Martin Starnes & Associates, CPAs, PA and the Peer Review Committee, North Carolina Association of Certified Public Accountants RECEIVED FHB 14 20ii >C;ll GOVERNRgENT uOIb1MISSION SANDY P. NEWELL, CPA Jo ELLEN B. LoY, CPP. DAVID E. BOYCE, CPA PATRICIA T. WAGNER, CPA CHERYL W. GAZALEH, CPA We have reviewed the system of quality control for the accounting and auditing practice of Martin Starnes & Associates, CPAs, PA (the firm) in effect for the year ended December 31, 2008. Our peer review was conducted in accordance with the Standards for Performing and Reporting on Peer Reviews established by the Peer Review Board of the American Institute of Certified Public Accountants. The firm is responsible for designing a system of quality control and complying with it to provide the firm with reasonable assurance of performing and reporting in conformity with applicable professional standards in a!! material respects. Our responsibility is to express an opinion on the design of the system of quality control and the firm's compliance therewith based on our review. The nature, objectives, scope, limitations of, and the procedures performed in a System Review are described in the standards at www.aicpa.org/prsummary. As required by the standards, engagements selected for review included engagements performed under the Government Auditing Standards and audits of employee benefit plans. In our opinion, the system of quality contro( for the accounting and auditing practice of Martin Starnes & Associates, CPAs, PA in effect for the year ended December 31, 2008, has been suitably designed and complied with to provide the firm with reasonable assurance of performing and reporting in conformity with applicable professional standards in all material respects. Firms can receive a rating of pass, pass wifh deficiency(ies) or fail. Martin Starnes & Associates, CPAs, PA has received a peer review rating of pass. BOYCE, FURR & COMPANY, LLP 4JOO FALLS OF THE NEUSE ROAD . SUITE 22O RALEIGH, NORTH CAROLINA 27609 Q I ~ RFi2_ll(1(14 FAX: 91 9.862.0009 WWW.BOYCEFURRCPA.COM