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Home My WebLink About1994 S Finance - Deloitte and Touche - Contract to Audit Accounts Lcc-205 (Rev. In/19K CONTRACT TO AUDIT ACCOUNTS Tnplicate. of Otarx7e County Gevvrontaa&I Udc On this 16th day of may , 19_L4_, Deloitte & 2buche Auditor PO Box 2778, Raleigh, NC 27602-2778 Maitiag Ad*= hereinafter referred to as the Auditor, and Bd of County Ccamdssioners of Orange Cotmty hereinafter referred Govwn►ni Hoard ceverataeow unit to as the Governmental Unit, agree as follows: 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 , 19_L3,and ending June 30 ,19 94 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: Now 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 con- trol 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"reportable conditions'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. 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 after the close of the accounting period. (See Item 15.) S. 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 94 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 investiga- tion and the additional compensation required therefor. Upon approval by the Secretary of the Local Government Com- :ai:t:ar:, th s xaree n t may be varied or changed to Include the increased time and compensation as may be.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 accordance with the Single Audit Act of 1984 (Pub. L. No. 98-502 and G.S. 159-34). The Auditor will file the required number of copies of all reports required under the Federal and State Single Audit Acts with the Secretary of the Local Government Commission. (This includes the report required in Item 3.) (See Items 15 and 18.) S. 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, a 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 agencies or other organizations as required.under the Federal and State Single Audit Acts: CAM Certification of Tax Levy $31,500; Single Audit of Grant Ptmds $21,000. 9. All local government and public authority contracts for annual or special audits,financial statement preparation,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 these contracts shall not be paid by the Govern- mental Unit until the invoice has been approved by the Secretary of the Local Government Commission. (This also includes any progress billings.)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) 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 Government Commission. The audit should not be started before the contract is approved. 12. This contract contemplates an unqualified opbeion being rendered.Any limitations or restrictions in scope which should lead to a qualification should be frilly espleffted in an attachment to this con tract. Contracts with such limitations will not be approved union satisfactory asplanation is made. 13. If an approved contract needs to be varied or changed,the change must be reduced to writing, signed by both parties, preaudited if necessary, and submitted to the Secretary of the Local Government Commission for approval. 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 separate contract must be arewted for each eompoaent unit which is a local government and for which a separate audit report is issued. I5. The auditor shall file three copies of the report of audit (four copies for council: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. These reports am used in the preparation of Official Statements for debt offerings as well as by municipal bond rating services. 16. There are no special provisions except: See engagement letter attached 17. Whenever the Auditor uses an engagement letter with the client,Item 16 should be completed by referencing the engage- ment letter and attaching a copy of the engagement letter to the contract to incorporate the engagement letter into the • contract. In can 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 ternss 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 list Item 7 in Item 21 of the ooatract as being a deleted provision. An exylanation must be given in Item 21 for any Governmental Unit not receiving a single audit on federal and State funds (e.g., a single audit is not required under 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 Standard:,issued by the Comptroller General of the United States, then the Auditor warrants by accepting this engagement that helshe will meat the requirements for an external quality control review and continuing education requirements specified in the Government Auditing Standards. Copies of any written communications that are a result of an external quality control review will be made available to the Secretary of the Local Government Commission upon his request. 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 Govern- went Commission. 21. All of the above paragraphs are understood and shall apply to this agreement,escept the following numbered paragraphs shall be deleted: (See Items 17 and 18.) Deloitte & Touche Orange County, North Carolina Audit firm C rMrneraal Umt BY Rex Price, Partner By , Jr., cis ��fie camel ar �F+itti��' of Mayor ar Ct aipanoo of prarning Approved by the Secretary of the Local Government This instrument has been preaudited in the m Commission as provided in Article 3, Chapter 159 of the quired by The Local Government Budget and Con- General Statutes or Article 31, Part 3, Chapter 115C of trot Actor by The School Budget and Fiscal trolAct- the g[tjtST-M00RE Kenneth T. Chavious ary, yea J/ Ot e55 (P1ean h'iK o 1 1 iena teal (�ft�l Date JIM 9 91944 Date -- ��