HomeMy WebLinkAbout2018-170 Finance - Mauldin and Jennings audit FY18LGC -205 (Rev. 2018)
Of Orange County
not applicable
On this 26th
Auditor: Mauldin & Jenkins, PLLC
CONTRACT TO AUDIT ACCOUNTS
Primary Government Unit
Discretely Presented Component Unit (DPCU) if applicable
day
April . 2018
Auditor Mailing Address: 200 Galleria Parkway
Atlanta, Georgia 30339 Hereinafter referred to as The Auditor
and Board of Commissioners (Governing Board(s)) of orange
(Primary Government)
and not applicable : hereinafter referred to as the Governmental Unit(s), agree as follows:
(Discretely Presented Component Unit)
The Auditor shall audit all statements and disclosures required by accounting principles generally accepted in the
United States of America (GAAP) and additional required legal statements and disclosures of all funds and /or
divisions of the Governmental Unit (s) for the period beginning July 1 2017 , and
ending June 30 , 2018 . 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 shall be rendered in relation to (as applicable) the governmental activities, the business-
type activities, the aggregate DPCUs, each major governmental and enterprise fund, and the aggregate remaining
fiord information (non -major 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
auditing standards generally accepted in the United States of America. 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 Uniform Administration Requirements,
Cost Principles, and Audit Requirements for Federal Awards, (Uniform Guidance) and the State Single Audit
Implementation Act, the Auditor shall perform a Single Audit. This audit and all associated audit
documentation 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 Local Government Commission (LGC). If the
audit and Auditor communication 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 (NC State Board). County and Multi - County
Health Departments: The Office of State Auditor will require Auditors of these Governmental Units to perform
agreed upon procedures (AUPs) on eligibility determination on certain programs. Both Auditor and Governmental
Unit agree that Auditor shall complete and report on these AUPs on Eligibility Determination as required by Office
of the State Auditor (OSA) and in accordance with the instructions and timeline provided by OSA.
3. If an entity is determined to be a component of another government as defined by the group audit standards, the
entity's Auditor shall make a good faith effort to comply in a timely manner with the requests of the group auditor in
accordance with AU -6 §600.41 - §600.42,
4, This contract contemplates an unmodified opinion being rendered. If during the process of conducting the audit
the Auditor determines that it will not be possible to render an unmodified opinion on the financial statements
of the unit, the Auditor shall contact the SLGFD staff to discuss the circumstances leading to that conclusion
as soon as is practical and before the final report is issued. 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.
Contract to Audit Accounts (cont.) Orange County
Primary Government Unit
not applicable
Discretely Presented Component Unit (DPCU) if applicable
If this audit engagement-is subject to the standards for audit as defined in Government Auditing Standards, 2011
revisions, issued by the Comptroller General of the United States, then by accepting this engagement, the Auditor
warrants that he has met the requirements for a peer review and continuing education as specified in Government
Auditing 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 LGC prior to the execution of
the audit contract. If the audit firm received a peer review rating other than pass, the Auditor shall not
contract with the Governmental Unit without first contacting the Secretary of the LGC for a peer review analysis
that may result in additional contractual requirements.
If the audit engagement is not subject to Government Accounting Standards or if financial statements are not
prepared in accordance with GAAP and fail to include all disclosures required by GAAP, the Auditor shall provide
an explanation as to why in an attachment.
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 SLGFD within four months of fiscal year end. Audit report is due on: 10/31/2018 , If it becomes
necessary to amend this due date or the audit fee, an amended contract along with a written explanation of the
delay shall be submitted to the Secretary of the LGC for approval.
It is agreed that generally accepted auditing standards include a review of the Governmental Unit's systems of
internal control and accounting as same relate to accountability of funds and adherence to budget and law requirements
applicable thereto; that the Auditor shall 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 shall include all matters defined as "significant deficiencies and material weaknesses" in AU -C
265 of the AICPA Professional Standards (Clarified). The Auditor shall file a copy of that report with the Secretary
of the LGC.
8. All local government and public authority contracts for audit or audit- related work require the approval of the
Secretary of the LGC. This includes annual or special audits, agreed upon procedures related to internal controls,
booldceeping or other assistance necessary to prepare the Governmental Unit's records for audit, financial statement
preparation, any finance- related investigations, or any other audit - related work in the State of North Carolina.
Invoices for .services rendered under these contracts shall not be paid by the Governmental Unit until the
invoice has been approved by the Secretary of the LGC. (This also includes any progress billings.) [G.S. 159 -34
and 115C -4471 All invoices for Audit work shall be submitted in PDF format to the Secretary of the LGC for
approval. The invoices shall be sent via upload through the current portal address:
htths:;'Inctre4�s�uersl7fc� I.leapille, net. Subject line should read "Invoice — [Unit Name]. The PDF invoice marked
`approved' with approval date shall be returned by email to the Auditor to present to the Governmental Unit for
payment. 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 contract, the Primary Govermment shall
pay to the Auditor, upon approval by the Secretary of the LGC, the 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.
(Note: Fees listed on Fees nave.). This does not include fees for any Pre - Issuance reviews that may be required by the
NC Association of CPAs (NCACPA) Peer Review Committee or NC State Board of CPA Examiners (see Item #12).
10. If the Governmental Unit has outstanding revenue bonds, the Auditor shall submit to the SLGFD either in the notes to
the audited financial statements or as a separate report, a calculation demonstrating compliance with the revenue
bond rate covenant. Additionally, the Auditor shall submit to the SLGFD simultaneously with the
Page 2 of 9
Contract to Audit Accounts (cont.) Orange County
Primary Government Unit
not applicable
Discretely Presented Component Unit (DPCU) if applicable
Governmental Unit's audited financial statements any other bond compliance statements or additional reports
required by the authorizing bond documents, 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, but not be limited to, the following information: (a) Management's Discussion and Analysis, (b) the
financial statements and notes of the Governmental Unit and all of its component units prepared in accordance with
GAAP, (c) supplementary information requested by the Governmental Unit or required for full disclosure under the
law, and (d) 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 fiscal year end.
12. If the audit firm is required by the NC State Board, the NCACPA Peer Review Committee, or the Secretary of the
LGC to have a pre- issuance review of its audit work, there shall be a statement in the engagement letter indicating
the pre - issuance review requirement. There also shall be a statement that the Governmental Unit shall not be
billed for the pre - issuance review. The pre - issuance review shall be performed prior to the completed audit being
submitted to the SLGFD. The pre- issuance review report shall accompany the audit report upon submission to the
SLGFD.
13. The Auditor shall electronically submit the report of audit to the SLGFD as a text -based PDF file when (or prior
to) submitting the invoice for services rendered, The report of audit, as filed with the Secretary of the LGC, becomes
a matter of public record for inspection, review and copy in the offices of the SLGFD by any interested parties, Any
subsequent revisions to these reports shall be sent to the Secretary of the LGC along with an Audit report
Reissuance form, These audited financial statements, excluding the Auditors' opinion, may be used in the
preparation of official statements for debt offerings, by municipal bond rating services to fulfill secondary market
disclosure requirements of the Securities and Exchange Commission and f o r other lawful purposes of the
Governmental Unit without subsequent consent of the Auditor. If the SLGFD determines that corrections
need to be made to the Governmental Unit's financial statements, those corrections shall be provided within three
days of notification unless another deadline is agreed to by the SLGFD.
If the OSA designates certain programs to be audited as major programs, as discussed in item #2, a turnaround
document and a representation letter addressed to the OSA shall be submitted to the SLGFD.
The SLGFD's process for submitting contracts, audit reports and invoices is subject to change. Auditors shall use
the submission process in effect at the time of submission. The most current instructions will be found on our
website: https: / /www.nctreasurer.com /slg/Pages /Audit- Forins- and- Resources.aspx
14. 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
LGC, this contract may be varied or changed to include the increased time, compensation, or both as may be agreed
upon by the Governing Board and the Auditor.
15. If an approved contract needs to be amended for any reason, the change shall be made in writing, on the
Amended LGC -205 contract form and pre - audited if the change includes a change in audit fee. This amended
contract shall be completed in full, including a written explanation of the change, signed and dated by all original
parties to the contract. It shall then be submitted through the audit contract portal to the Secretary of the LGC for
approval. The portal address to upload the amended contract is hops:/ /nctreasurersl,Icl.leapfilc.net. No change to
the audit contract shall be effective unless approved by the Secretary of the LGC, the Governina Board, and the
Auditor.
Page 3 of 9
Contract to Audit Accounts (coat.) Orange County
Primary Government Unit
not applicable
Discretely Presented Component Unit (DPCU) if applicable
16. A copy of the engagement letter, issued by the Auditor and signed by both the Auditor and the Governmental Unit shall
be attached to the contract, and by reference here becomes part of the contract. In case of conflict between the terms of
the engagement letter and the terms of this contract, the terms of this contract shall take precedence. Engagement letter
terms that conflict with the contract are deemed to be void unless the conflicting terms of this contract are specifically
deleted in Item #23 of this contract. Engagement letters containing indemnification clauses shall not be accepted by
the SLGFD.
17. Special provisions should be limited. Please list any special provisions in an attaclunent. See attached Engagement Letter
18. A separate contract should not be made for each division to be audited or report to be submitted. If a DPCU is
subject to the audit requirements detailed in the Local Government Budget and Fiscal Control Act and a separate
audit report is issued, a separate audit contract is required. If a separate report is not to be issued and the DPCU is
included in the primary government audit, the DPCU shall be named along with the parent government on this audit
contract. DPCU Board approval date, signatures from the DPCU Board chairman and finance officer also shall be
included on this contract.
19. The contract shall be executed, pre - audited, physically signed by all parties including Governmental Unit and
t h e Auditor and then submitted in PDF format to the Secretary of the LGC. The current portal address to upload
the contractual documents is hops: r' /nctreasurerslgfd.leapfile.net. Electronic signatures are not accepted at this time.
Included with this contract are instructions to submit contracts and invoices for approval as of November 2017.
These instructions are subject to change. Please check the NC Treasurer's web site at
https: / /www.netreasurer,com /slg/Pages /Audit- Forms - and- Resources.aspx for the most recent instructions,
20. The contract is not valid until it is approved by the Secretary of the LGC. The staff of the LGC shall notify
the Governmental Unit and Auditor of contract approval by email. The audit should not be started before
the contract is a12proved.
21. 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
LGC.
22. E- Verify. Auditor shall comply with the requirements of NCGS Chapter 64 Article 2. Further, if Auditor utilizes
any subcontractor(s), Auditor shall require such subcontractor(s) to comply with the requirements of NCGS
Chapter 64, Article 2.
23. All of the above paragraphs are understood and shall apply to this contract, except the following numbered
paragraphs shall be deleted: (See Item 16 for clarification).
Number 22, because Auditor does not have 25 or more employees in the State of North Carolina.
SIGNATURE PAGES FOLLOW FEES PAGE
Page 4 of 9
Contract to Audit Accounts (cont.)
AUDIT: $
95,500
Orange County
Primary Government Unit
not applicable
Discretely Presented Component Unit (DPCU) if applicable
FEES - PRIMARY GOVERNMENT
WRITING FINANCIAL STATEMENTS
ALL OTHER NON - ATTEST SERVICES: $
For all non - attest services the Auditor shall adhere to the independence rules of the AICPA Professional Code of Conduct
and Governmental Auditing Standards (as applicable). Bookkeeping and other non -attest services necessary to perform
the audit shall be included under this contract. However, bookkeeping assistance shall be limited to the extent that the
Auditor is not auditing his or her own work or making management decisions. The Governmental Unit shall designate an
individual with the suitable skills, knowledge, and /or experience necessary to oversee the services and accept
responsibility for the results of the services. Financial statement preparation assistance shall be deemed a "significant
threat" requiring the Auditor to apply safeguards sufficient to reduce the threat to an acceptable level. The Auditor shall
maintain written documentation of his or her compliance with these standards in the audit work papers.
Prior to submission of the completed audited financial report, applicable compliance reports and amended contract (if
required) the Auditor may submit invoices for approval for services rendered, not to exceed 75% of the total of the stated
fees above. If the current contracted fee is not fixed in total, invoices for services rendered may be approved for up to
75% of the prior year audit fee.
The 75% cap for interim invoice approval for this audit contract is $ 717625
** NA if there is to be no interim billing
FEES — DPCU (IF APPLICABLE)
AUDIT: $
WRITING FINANCIAL STATEMENTS
ALL OTHER NON-ATTEST SERVICES: $
For all non- attest services the Auditor shall adhere to the independence rules of the AICPA Professional Code of Conduct
and Governmental Auditing Standards (as applicable), Bookkeeping and other non - attest services necessary to perform
the audit shall be included under this contract. However, bookkeeping assistance shall be limited to the extent that the
Auditor is not auditing his or her own work or making management decisions. The Governmental Unit shall designate an
individual with the suitable skills, knowledge, and /or experience necessary to oversee the services and accept
responsibility for the results of the services. Financial statement preparation assistance shall be deemed a "significant
threat" requiring the Auditor to apply safeguards sufficient to reduce the threat to an acceptable level. The Auditor shall
maintain written documentation of his or her compliance with these standards in the audit work papers.
Prior to submission of the completed audited financial report, applicable compliance reports and amended contract (if
required) the Auditor may submit invoices for approval for services rendered, not to exceed 75% of the total of the stated
fees above. If the current contracted fee is not fixed in total, invoices for services rendered may be approved for up to
75% of the prior year audit fee.
The 75% cap for interim invoice approval for this audit contract is $
** NA if there is to be no interim billing
Page 5 of 9
Contract to Audit Accounts (cont.) Orange
Primary Government Unit
not applicable
Discretely Presented Component Unit (DPCU) if applicable
Communication regarding audit contract requesis for
modification or official approvals will be sent to the
email addresses provided in the spaces below.
Audit Firm Signature: .
Mauldin & Jenkins; PLLC
Narnvof Audit Firm
By Joel Black
Auth ''zed Audit firm representative name: Type or print
Sign, ure of authorized audit firm representative
Date A jord Z/C "241 2
jmblack @mjcpa.com
Email Address of Audit Firm
Governmental Unit Signatures:
Name of
By
ht name and title
Signature of Mayor/ .hairpersor%fgoverning board
Date 5 3'
By
Chair of Audit Committee - Type or print name
x :g
Signature of Audit Committee Chairperson
Date
** If Governmental Unit has no audit committee, marls
this section "XIA"
PRE -AUDIT CERTIFICATE: Required by G.S. 159 -28
(a)
This instrument has been pre - audited in the manner
required by The Local Government Budget and-Fiscal
Control Act or by the School Budget and Fiscal Control
Act.
Type or
Primaryove nevi Finance Officer Signature
Dale ,.. f 1-
(Pre -azdit 6erti&ate must be _dated.)
%;°, <:4
E it Address of Finance Officer J
Date Primary Government Governing Body
Approved Audit Contract - G.S. 159 -34(a)
** *Please provide us the most current email addresses available as we use this information
to update our contact database***
Page 6 of 9
Contract to Audit Accounts (cont.) Orange County
Primary Government Unit
not applicable
Discretely Presented Component Unit (DPCU) if applicable
** This page to only be completed by Discretely Presented Component Units If Applicable **
Communication regarding audit contract requests for
modification or official approvals will be sent to the
email addresses provided in the spaces below.
DPCU Governmental Unit Signatures:
Name of Discreetly Presented Component Unit
By
DPCU Board Chairperson: Type or print name and title
Signature of Chairperson of DPCU governing board
Date
By
Chair of Audit Committee - Type or print name
Signature of Audit Committee Chairperson
Date
** If Governmental Unit has no audit committee, inark
this section "MIA"
PRE -AUDIT CERTIFICATE: Required by G.S. 159 -28
(a)
This instrument has been pre - audited in the manner
required by The Local Government Budget and Fiscal
Control Act or by the School Budget and Fiscal Control
Act,
By
DPCU Finance Officer:
Type or print name
DPCU Finance Officer Signature
Date
(Pre -audit Certificate must be dated.)
Email Address of Finance Officer
Date DPCU Governing Body Approved Audit
Contract - G.S. 159 -34(a)
* **Please provide us the most current email addresses available as we use this information
to update our contact database * **
Page 7 of 9
Contract to Audit Accounts (cont.) Orange County
Primary Government Unit
not applicable
Discretely Presented Component Unit (DPCU) if applicable
Steps to Completing the Audit Contract
Complete the header information — If a DPCU is subject to the audit requirements found in the Local Government
Budget and Fiscal Control Act and a separate report is being issued for that DPCU, a separate audit contract for the
DPCU is required. If a separate report is not being issued for the DPCU — it is being included in the Primary
Government's audit — the DPCU shall be named with the Primary Government on the audit contract for the
Primary Government. The Board Chairperson of the DPCU shall sign the audit contract in addition to the elected
leader of the Primary Government.
2. Item No. 1 — Complete the period covered by the audit
3. Item No. 6 — Fill in the audit due date. For Goverrunental Unit (s), the contract due date can be no later than 4
months after the end of the fiscal year, even though amended contracts may not be required until a later date.
4. Item No. 8 — If the process for invoice approval instructions changed, the Auditor should make sure he and his
administrative staff are familiar with the current process. Instructions for each process can be found at the
following link. hops:// �t rwNv.netreasurer.com /slg/Pages /Audit - Forms- and- Resources.aspx
5. Item No. 9 — Please note that the new fee section has been moved to page 5.
6. Item No. 16 — Has the engagement letter been attached to the contract that is being submitted to SLGFD?
a. Do the terms and fees specified in the engagement letter agree with the Audit contract? "In case of
conflict between the teems of the engagement letter and the terms of this contract, the terms of this
contract shall take precedence. "
b. Does the engagement letter contain an indemnification clause? The audit contract shall not
be approved if there is an indemnification clause — refer to LGC Memo # 986.
7. Complete the fee section for BOTH the Primary Government and the DPCU (if applicable) on the fees
page; please note:
The cap on interim payments is 75% of the current audit fee for services rendered if the contracted fee
amount is a fixed amount. If any part of the fee is variable, interim payments are limited to 75% of the
prior year's total audit fee. If the contract fee is partially variable, we shall compare the authorized
interim payment on the contract to 75% of last year's actual approved total audit fee amount according to
our records. There is a report of audit fees paid by each governmental unit on our web site:
https : //hvww.nctreasurer,com /slg/Ifm /audit acet/Pages /default.aspx select "audit fees"
Please call or email Lorna Hodge at 919 -814 -4299 lorna.hodgea.n. eireasurer.com if you have any
questions about the fees on this list.
• For variable fees for services, are the hourly rates or other rates clearly stated in detail? If issued
separately in an addendum, has the separate page been acluiowledged in writing by the Governmental
Unit?
Page 8 of 9
Contract to Audit Accounts (cont.) Orange County
Primary Government Unit
not applicable
Discretely Presented Component Unit (DPCU) if applicable
• For fees for services that are a combination of fixed and variable fees, are the services to be provided for
the fixed portion of the fee clearly stated? Are the hourly rates or other rates clearly stated for the
variable portion of the fee? (Note: See previous bullet point regarding variable fees.)
• If there is to be no interim billing, please indicate N/A instead of leaving the line blank.
Signature Area — There are now 2 Signature Pages: one for the Primary Government and one for the DPCU.
P I e a s e o n 1 y s end the page(s) that are applicable to your Unit of Government and do not include the
instructions pages. Make sure all signatures have been obtained, and properly dated. The contract shall be
approved by Governing Boards pursuant to G.S. 159- 34(al. If this contract includes the audit for a DPCU
that is a Public Authority that falls under the Local Government Budget and Fiscal Control Act, it shall be named
in this contract and the Board Chairperson of the DPCU also shall sign the contract in the area indicated. If the
DPCU is filing a separate audit, a separate audit contract is required for that DPCU.
9. Please place the date the Primary Government's Governing Board and the DPCU's Governing Board (if
applicable) approved the audit contract in the space provided.
a. Please make sure that you provide email addresses for the audit firm and finance officer as these will be
used to communicate official approval of the contract.
b. Has the pre -audit certificate for the Primary Government (and the DPCU if applicable) been signed and
dated by the appropriate party?
c. Has the name and title of the Mayor or Chairperson of the Unit's Governing Board and the DPCU's
Chairperson (if applicable) been typed or printed on the contract and has he /she signed in the correct area
directly under the Auditor's signature?
10. If the Auditor is performing an audit 'under the yellow book or single audit rules, has year -end bookkeeping
assistance been limited to those areas permitted under the revised GAO Independence Standards? Although not
required, we encourage Governmental Units and Auditors to disclose the nature of these services in the contract
or an engagement letter. Fees for these services should be shown in the space indicated on the fees page.
11. Has the most recently issued peer review report for the audit firm been included with the contract? This is
required if the audit firm has received a new peer review report that has not yet been forwarded to us, The audit
firm is only required to send the most current Peer Review report to us once — not multiple times.
12. After all the signatures have been obtained and the contract is complete, please convert the contract and all other
supporting documentation to PDF. When submitting for approval send the documents as one PDF file to include
the Audit contract, any applicable addendums, the engagement letter and Peer Review Report. Submit these
documents using the most current submission process which can be obtained at the NC Treasurer's web site
https: / /www nctreasurer.com /sl,g/ Audit %2OForms %20and %2ORcsotirces / Instructions %20for %2OContract %20Su
bmission.pdf
13. If an audit cannot be completed by the due date, the Auditor or Governmental Unit shall file an Amended Contract
form (Amended LGC -205). This form shall be signed by the Governmental Unit representative and the Auditor.
The explanation for the delay in completing the audit is part of this contract amendment form and shall be provided.
The parties that signed the original audit contract shall sign the amended contract form as well. If the signing
representatives are unable to sign the amended contract, please include an explanation for this in the submitted
amended contract fonn.
Page 9 of 9
CEgI
Report on the Firm's System of Quality Control
To the Shareholders of Mauldin & Jenkins, LLC
and the National Peer Review Committee:
We have reviewed the system of quality control for the accounting and auditing practice of
Mauldin & Jenkins, LLC (the finn), applicable to engagements not subject to PCAOB permanent
inspection, in effect for the year ended May 31, 2017. 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 (Standards).
A summary of the nature, objectives, scope, limitations of, and the procedures performed in a
System Review as described in the Standards may be found at www.aicpa.org /prsumimary. The
summary also includes an explanation of how engagements identified as not performed or
reported in conformity with applicable professional standards, if any, are evaluated by a peer
reviewer to determine a peer review rating.
Firm's Responsibility
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 all material respects. The firm is also responsible for
evaluating actions to promptly remediate engagements deemed as not performed or reported in
conformity with professional standards, when appropriate, and for remediating weaknesses in its
system of quality control, if any.
Peer Reviewer's Responsibility
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.
Required Selections and Considerations
Engagements selected for review included engagements performed under Government Auditing
Standards, including compliance audits under the Single Audit Act; audits of employee benefit
plans, an audit performed under FDICIA, and examinations of service organization's SOC 1 and
SOC 2 engagements.
As part of our peer review, we considered reviews by regulatory entities as communicated by the
firm, if applicable, in determining the nature and extent of our procedures.
PBMares, LLP 1725 Jackson Street, Suite 210 1 Fredericksburg, VA 224011 P 540,371.3566 11.800.296.3710 11:5,10-371,3598
-2-
Opinion
In our opinion, the system of quality control for the accounting and auditing practice of Mauldin
& Jenkins, LLC applicable to engagements not subject to PCAOB permanent inspection in effect
for the year ended May 31, 2017, has been suitably designed and complied with to provide the
finn with reasonable assurance of performing and reporting in conformity with applicable
professional standards in all material respects. Finns can receive a rating of pass, pass with
deficiency(ies) or fail. Mauldin & Jenkins, LLC has received a peer review rating of pass.
tBM�elk, LLP
PBMares, LLP
October 30, 2017