HomeMy WebLinkAbout1996 NS 1995-1996 Audit Contract ' e '
WC-=5(Rev.Illr191M) CONTRACT TO AUDIT ACCOUNTS 2
File in Triptieate. Of nrang j
(7averamental nit
On this 31st day of May 19 96 Del\iitte & TouchE LLP
Auditor
Post Office Box 2778 , Raleigh, NC 27602-2778
flailing Address
hereinafter referred to as
Board of County
the Auditor,and r n r-m i P a i n n P r c of n r a n cyp County hereinafter referred
Gaveraiag Bard Goverm"atal Unit
to as the Governmental Unit,agree as follows:
I. 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 192x',,, and ending IN n e 3 0 . 19-9-6 The
combining, individual fund, and account group financial statements and schedules shall be subjected to the
auditing procedures applied in the audit of the combined financial statements and an opinion will be rendered
in relation to the combined financial statements taken as a whole. The audit will have no scope limitations
except:
2. The Auditor shall conduct his audit and render his report in accordance with generally accepted auditing
standards.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.except as follows:(See Item 12.)
3. 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 farth his findings, together with his
recommendations for improvement. That written report must include all matters defined as 'reportable
conditions'in AU 325 of the AlQPA Professional Standards.The Auditor shall file a cony of that report with
to Secretary of the Leal Government Commission.
4. After completing his audit,the Auditor shall submit to the Governing Board a written report of audit. This
report shall include,at least,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 aftar the close of the accounting period. (See Item
15.1
5. 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
October 31 19_26.
6. 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 therefor. Upon approval by the
Secretary of the Local Government Commission, this agreement may be varied or ehaagd to include the
increased time and compensation as maybe agreed upon by the Governing Board and the Auditor.
7. The Auditor shall perform a compliance audit for all federal and State financial assistance programs in
st:rsrdance with the Single Audit Act of 1884 dub.L No.9944 and G.S. 159-34).The Auditor will file the
reauired number of conies of all reports required under the Federal and State Single Audit Acts with the
ereterer of the Lea el Government Commission.Mis includes the report required in Item 8.)(Son Items 15
and 18.)
S. In consideration of the satisfactory performance of the provisions of this agreement,the tiaveramental Unit '
shall pay to the Auditor.upon approval by the Secretary of the Leval Government Commission,the following
&1 which includes any cost the Auditor may incur from work paper or poor reviews or any other quality
assurance program required by third parties(Federal and State agencies or other organizations)as required
under the Federal and State Single Audit Acts: $58,250
9. All local government and public authority contracts for annual or speoal audits, financial statement
preparation, any finance-related investigations, or any audit-related work in the State of North Carolina
require the approval of the Secretary of the Local Government Commission. Invoices for services rendered
under thesl contracts shall not be paid bs the Governmental Unit until the invoice has been approved by the
Secret err of the Kcal Government Commission. (This also includes any nroeress billingsl 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 similar services of a non-auditing nature.
(Continued on Reverse)
3
10. The contract should be executed and submitted in triplicate to the Secretary of the Local Government
Commission,325 North Salisbury Street,Raleigh,North Carolina 27603-1385.
11. 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 Goveraiaent Commission.The audit should not
be started before the contract is approved.
12. This contract contemplates an unqualified opinion being rendered. Any limitations or restrictions in scope
which would lead to a qualification should be fully explained in an attachment to this contract. Contracts with
such limitations will not be approved unless satisfactory explanation is made.
13. If an approved contract needs to be varied or changed,the change must be reduced to writing,signed by both
parties, presudited if necessary, and submitted to the Secretary of the Local Government Commission for
apprrval.No change shall be effective unless approved by the Secretary of the Local Government Commission,
the Governing Board,and the Auditor.
14. A separate contract should not be made for each division to be audited or report to be submitted.The scope of
the audit and the fee for the audit should be clearly stated. A saparate contract must be executed for each
component unit which is a local government and for which a separate audit report is issued.
15. The Auditor shall We three copies of the report of audit(four copies for councils of governments,one copy if no
single audit is required) with the Secretary of 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 seat to the Secretary
of the Local Government Commission.Thess reports are used in the preparation of Official Statements for
debt offerings,by municipal bond rating services,and to fulfill secondary market disclosure requirements of
the Securities and Exchange Commission.
16. There are no special provisions except: See attached engagement letter
17. Whenever the Auditor uses an engagement letter with the client, Items 8 and 16 should 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 oontrad.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 21 of this contract.
18. A Governmental Unit not having a single audit on federal and State funds would hat Item 7 in Item 21 of the
contract as being a deleted provision.An exalanation must be men in Item 21 for any Governmental Unit not
recei�ing a sine]g g_udit on federal and State funds(e.g.,•single audit is not required undsr the Federal and
State Single Audit Acts and is not being performed).
19. if this audit engagement is subject to the standards for audit as defined in the Government Auditing
Standards, issued by the Comptroller General of the United States,then the Auditor warrants by accepting
this engagement that he/she will meet the requirements for an extornal quality control review and continuing
education requirements specified in the Government Auditing Standards. The Auditor agrees to provide a
copy of their most recent external quality control review report to the Governmental Unit and the Secretary of
the Local Government Commission.
20. There are no other agreements between the parties hereto and no other agreements relative hereto that shall
be enforceable unless entered into = accordance with the procedure set out hernia and approved by the
Secretary of the Local Government Commission.
21. All of the above paragraphs are understood and shall apply to this agreement,except the following numbered
paragraphs shall be Halsted:(See Items 17 and 18.)
Dslnirte & he LLP Orange County
wade tlrs Tonc et
GeaaMMWI Unit
By K. Alan Lonbom Bs Moses Carey, Jr., Chairman
is ) (plow t7pe er print rise and titlel
10, ere) at sager or taatipmsen of gevarame board)
Approved b the Secretary of the Iced Gowramest This iasaemest has bass preandited to the manner
Commiwon as provided is Article 3,Chapter 159 of required by The JmW Government Budget and }local
the General Statues or Article 31,Part 3,Chapter Control Act or by the ScIboal Budget and Fiscal Control
I 13 of the General statows. Act.
Kenneth T. Chavious
For the tioeraury.tea.)Government Gmm on- osrvamasw Uttn Flaaae Omer a ueao 17"ar pnat same)
(&pswre) (9ge+un)
Dote Date