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HomeMy WebLinkAboutOTHER-2023-013-Amendment to Contract to Audit Accounts 1 jag Attachment 1 LGC -205 Amendment AMENDMENT TO CONTRACT TO AUDIT ACCOUNTS Rev. 11 /2022 Whereas Primary Government Unit Orange County , North Carolina and Discretely Presented Component Unit ( DPCU ) ( if applicable) and Auditor j Mauldin & Jenkins , LLC entered into a contract in which the Auditor agreed to audit the accounts of the Primary Government Unit and DPCU ( if applicable) Fiscal Year Ending Date for and* originally to be 06/30/22 submitted to the LGC on 110/31 /22 hereby agree that it is now necessary that the contract be modified as follows . I Original date Modified date Modification to date submitted to LGC 10 /31 /22 01 / 18/23 Original fee Modified fee ❑✓ Modification to fee $ 96 , 000 . 00 $ 1415000000 Primary Other Reason (s ) for Contract Amendment (choose 1 ) (choose 0-2) i E) ❑ Change in scope O 0 Issue with unit staff/turnover ❑ Issue with auditor staff/workload ❑ Third -party financial statements not prepared by agreed- upon date 0 ❑ Unit did not have bank reconciliations complete for the audit period O ❑✓ Unit did not have reconciliations between subsidiary ledgers and general ledger complete O ❑ Unit did not post previous years adjusting journal entries resulting in incorrect beginning balances in the general ledger O ❑ Unit did not have information required for audit complete by the agreed- upon time O ❑ Delay in component unit reports O ❑ Software - implementation issue r O ❑ Software - system failure O ❑ Software - ransomware/cyberattack O ❑ Natural or other disaster O ❑ Other ( please explain ) Plan to Prevent Future Late Submissions If the amendment is submitted to modify the date the audit will be submitted to the LGC , please indicate the steps the unit and auditor will take to prevent late filing of audits in subsequent years . Audits are due to the LGC four months after fiscal year end . Indicate NA if this is an amendment due to a change in cost only. The County and the audit firm have discussed changes to the audit process for June 30, 2023 including: ( 1 ) the County is filling an accounting manager position; (2) if an accounting manager is not able to be hired, the County will retain additional accounting support to assist with close out and audit prep; and (3) detailed weekly status check-III throughout the entire duration of the audit. Additional Information Please provide any additional explanation or details regarding the contract modification . Modification to the audit fee is being made to address both the change in scope (additional federal/state programs that were required to be audited as major) as well as cost overruns resulting from additional hours to address audit adjustments . By their signatures on the following pages , the Auditor, the Primary Government Unit, and the DPCU ( if applicable ) , agree to these modified terms . Page 1 of 3 LGC -205 Amended AMENDMENT TO CONTRACT TO AUDIT ACCOUNTS Rev . 11 /2022 SIGNATURE PAGE AUDIT FIRM Audit Firm * Mauldin & Jenkins , LLC Authorized Firm Representative* (typed or printed) Signature * Timothy M. Lyons 21-d % JZcZ Date* Email Address 01 /24/23 tlyons@mjcpa. com GOVERNMENTAL UNIT Governmental Unit* Orange County, North Carolina Date Primary Government Unit Governing Board Approved Amended Audit Contract* (if required by goveming board policy) Mayor/Chairperson * (typed or printed ) Sign ure* Date ail Ad&ess Chair of Audit Committee (typed or printed , or °NX) Signature Date Email Address GOVERNMENTAL UNIT — PRE -AUDIT CERTIFICATE * ONLY REQUIRED IF FEES ARE MODIFIED IN THE AMENDED CONTRACT* (Pre-audit certificate not required for hospitals) Required by G . S . 159 -28 (al ) or G . S . 115C-441 (a1 ) This instrument has been pre-audited in the manner required by The Local Govemment Budget and Fiscal Control Act or by the School Budget and Fiscal Control Act. Pri/nary Govern tal Unit Finance Officer* Signa 6 Date f -Audit Certificate* Em it ess.72 A) Page 2 of 3 LGCw205 Amended AMENDMENT TO CONTRACT TO AUDIT ACCOUNTS Rev. 1112022 SIGNATURE PAGE — DPCU ( complete only if applicable ) DISCRETELY PRESENTED COMPONENT UNIT DPCU Date DPCU Governing Board Approved Amended Audit Contract (If required by goveming board policy) DPCU Chairperson (typed or printed ) Signature Date Email Address Chair of Audit Committee (typed or printed , or A ) Signature Date Email Address DPCU — PRE -AUDIT CERTIFICATE *ONLY REQUIRED IF FEES ARE MODIFIED IN THE AMENDED CONTRACT* (Pre-audit certificate not required for hospitals) Required by G . S . 159 -28 ( a1 ) or G . S . 115C-441 (al ) This instrument has been pre-audited in the manner required by The Local Govemment Budget and Fiscal Control Act or by the School Budget and Fiscal Control Act. DPCU Finance Officer (typed or printed ) Signature Date of Pre-Audit Certificate Email Address Page 3 of 3