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Home My WebLink About2008-028 Finance & Cherry, Bekaert & Holland 2008 Statement Preparation Contract• • • / ~ ". Y' 3 ~ ~ ~~ ~/- 1 Cherry, Bekaert & Holland, L.L.P. The Firm of Choice. March 31, 2008 Mr. Gary Humphreys, Financial ServicesDirector Orange County 208 South Cameron Street Hillsborough, North Carolina 27278 Dear Gary: warw.cbh.com 2626 Glenwood Avenue -Suite 300 Raleigh, North Carolina 27608 phone 919.782.1040 fax 919.783.0976 This letter of arrangement between Orange County, North Carolina (the °County') and Cherry, Bekaert 8~ Holland, L.L.P. sets forth the nature and scope of the services we will provide, the. County's required involvement and assistance in support of our services, the related fee arrangements and other terms and conditions designed to assure that our professional services are performed to achieve the mutually agreed upon objectives of theCounty. SUMMARY OF SERVICES We will prepare the Schedule of Expenditures of Federal and State Awards (the "schedule°) of the County as of and for the year ended June 30, 2008. However, management is responsible for the schedule. In your representations to us, you willbe asked to acknowledge our role in this regard, and your review, approval, and responsibility for the schedule. Further, you are responsible for designating a qualified management-level individual to be responsible and accountable for overseeing these services. Any additional services that you may request, and that we agree to provide, will be subject of separate written arrangements. Eddie Burke, who will be responsible for assuring the overall quality, value, and timeliness of our services. to you, will lead the engagement. TERMS AND CONDITIONS SUPPORTING FEE As a result of our planning process, the County and Cherry, Bekaert & Holland, L.L.P. have agreed to a fee, subject to the following conditions. To facilitate meeting our mutual objectives, the County will provide in a timely manner audit schedules and supporting information, including timely communication of all significant accounting and financial reporting matters, as well as clerical assistance as mutually agreed upon and as is normal and reasonable in the circumstances. When and if for any reason theCounty is unable to provide such schedules, information and assistance, Cherry, Bekaert & Holland, L.L.P. and the County will mutually revise the fee to reflect additional services, if any, required of us to achieve these objectives. . •• aa•w•wa .•~•r •i BAKER TILLY INTERNATIONAL In providing our services, we will consult with the County with respect to matters of accounting, financial reporting, or other significant business issues. Accordingly, time necessary to affect a reasonable amount of such consultation is reflected in our fee. However, should a matter require research, consultation, or work beyond that amount, Cheny, Bekaert & Holland, L.L.P. and the County will agree to an appropriate revision in services and fee. Except for any changes in fees, which may result from the circumstances described above, our fees will be limited to those set forth below. FEE Our fees for these services will be based upon our customary billing practices at the time of the engagement. Bills for services will be rendered as work progresses and are due within 15 days from invoice date. A service charge will be added to past due accounts equal to 1'/% per month (18% annual rate) on the previous month's balance less payments received during the month, with a minimum charge of $2.00 per month. The fee for our audit as described in this letterwill not exceed $7,750. This fee is based on anticipated cooperation from your personnel and the assumption that unexpected circumstances will not be encountered during the audit. If significant additional time is necessary, we will discuss it with you and arrive at a new fee estimate before we incur the additional costs. Any modification to the fee shall be in writing and signed by both parties. You agree to pay all costs of collection (including reasonable attorneys' fees) that we may incur in connection withthe collection of unpaid invoices. ACCESS TO WORKING PAPERS • The working papers for the engagement are the property of Cherry, Bekaert & Holland, L.L.P. and constitute confidential information. Except as discussed below, any requests for access to our working papers will be discussed with you prior to making ttem available to requesting parties. The workpapers for this engagement will be retained for a minimum of three years after the date of completion of the schedule or for any additional period requested by the County. If we are aware that a federal or State awarding agency, pass-through entity, or other party is contesting the schedule, we will contact the agency contesting the schedule for guidance prior to destroying the workpapers. Our Firm, as well as all other major accounting firms, participates in a "peer review" program, covering our audit and accounting practices. This program requires that once every three years we subject our quality assurance practices to an examination by another accounting firm. As part of the process, the other firm will review a sample of our work. It is possible that the work we perform for you may be selected by the other firm for their review. If it is, they are bound by professional standards to keep all information confidential. If you object to having the work we do for you reviewed by our peer reviewer, please notify us in writing. USE OF THIRD PARTY SERVICE PROVIDERS The firm may from time to time, and depending on the circumstances, use third-party service providers in serving your account. We may share confidential information about you with these service providers, but remain committed to maintaining the confidentiality and security of our information. Accordingly, we maintain internal policies, procedures and safeguards to protect the confidentiality of your personal information. In addition, we will secure confidentiality agreements • with all service providers to maintain the confidentiality of your information and we will take reasonable precautions to determine that they have appropriate procedures in place to prevent the unauthorized release of your confidential information to others. In the event that we are unable to secure an appropriate confidentiality agreement, you will be asked • to provide your consent prior to the sharing of your confidential information with the third-party service provider. Furthermore, the firm will remain responsible for the work provided by any such third-party service providers. SUBPOENAS I n the event we are requested or authorized by you or required by government regulation, subpoena, or o#her legal process to produce our working papers or our personnel as witnesses with respect to our engagement for you, you will, so long as we are not a party to the proceeding in which the information is sought, reimburse us for our professional time and expense, as well as the fees and expenses of our counsel, incurred in responding to such a request. OTHER MATTERS If any dispute, controversy or claim arises in connection with the performance or breach of this agreement, either party may, on written notice to the other party, request that the matter be mediated. Such mediation would be conducted by a mediator appointed by and pursuant to the rules of the American Arbitration Association (AAA) or such other neutral facilitator acceptable to both parties. Both parties would exert their best efforts to discuss with each other in good faith their respective positions in an attempt to finally resolve such dispute, controversy, or claim. Client and accountant bath agree that any dispute over fees charged by the accountant to the client will be submitted for resolution by arbitration in accordance with the Rules for Professional Accounting and Related Services Disputes of the AAA. Any award rendered by the Arbitrator pursuant to this Agreement maybe filed and entered and shall be enforceable in the Superior Court of the County in which the arbitration proceeds. In agreeing to arbitration, we both acknowledge that, in event of a dispute over fees charged by the accountant, each of us is giving up the right to have the dispute decided in a court of law before a judge or jury and instead we are accepting the use of arbitration for resolution. The prevailing parry shall be entitled to an award of reasonable attorneys' fees and costs incurred in connection with the arbitration of the dispute in an amount to be determined by the arbitrator. If the foregoing is in accordance with your understanding, please sign this letter in the space provided and return it to us. If you have any questions, please call Eddie Burke at (919) 782-1040. Very truly yours, CHERRY, BEKAERT & HOLLAND, L.L.P. Enclosure RESPONSE: "7'h;a lnstreemeat lean been ~~~; ut~t~d ;~ ~, n~asener acquired by the Lncal ~Gocerserec,~t~t met and Fiscal Contrnl ~e~ ~~ro~ of Oaa~e ~cax~'ys This letter correctly sell forth the understanding of Orange County, North Carolina. By: ~- • Laura Blackmon, Count Mana er Y 9