Minutes - Feb. 6, 2012 Regular Meeting

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Contract to Audit unts (cont.) BCpM 24 County, NC of unit) shall not be paid by the Governmental Unit until the invoice has been approved by the Secretary of the Local Government Commission (This also includes any progress billings.) [G.S. 159 -34 and 115C -4471 The process for invoice approval has changed. All invoices for Audit work must be submitted by email in PDF format to the Secretary of the Local Government Commission for approval. The invoices must be emaited to: lac.invoice r+ netreasure Email Subject line should read "unit name — invoice. The PDF invoice marked approved with approval date will be returned by email to the Auditor for them to present to the Local Government 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 agreement, the Governmental Unit shall pay to the Auditor. upon approval by the Secretary of the Local Government Commission, the following 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 Slate Single Audit Acts: Year -end bookkeeping assistance — For audits subject to Government Auditing Standards, this is limited to bookkeeping services permitted by revised Independence Standards] Standard hourly rates ranging from $75 -$250 per hour $42,200 Preparation of the annual financial statements Prepared by Clie 10. The auditor working with a local governmental unit that has outstanding revenue bonds will include in the notes to the audited financial statements, whether or not required by the revenue bond documents, a calculation demonstrating compliance with the revenue bond rate covenant. Additionally, the auditor should be aware that any other bond compliance statements or additional reports required in the authorizing bond documents need to be submitted to the Local Government Commission simultaneously with the local government's audited financial statements 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 generally accepted accounting principles. (c) supplementary information requested by the client 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 accounting period. 12. If the audit firm is required by the NC CPA Board or the Secretary of the Local Government Commission to have a pre - issuance review of their audit work, there must be a statement added to the engagement letter specifying the pre - issuance review including a statement that the Unit of Government will not be billed for the prc- issuance review. The pre- issuance review must be performed prior to the completed Audit being submitted to the Local Government Commission. The pre- issuance report must accompany the audit report upon submission to the Local Government Commission. 13. The Auditor shall electronically submit the report of audit to the Local Government Commission when (or prior to) submitting the invoice for services rendered. The report of audit, as riled 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 sent to the Secretary of the Local Government Commission. These audited financial statements are used in the preparation of Official Statements for debt offerings (the auditors' opinion is not included), by municipal bond rating services, to fulfill secondary market disclosure requirements of the Securities and Exchange Commission, and other lawful purposes of the government, without subsequent consent of the auditor. If it is determined by the Local Government Commission that corrections need to be made to the unit's financial statements they should be provided within three days of notification unless, another time frame is agreed to by the Local Government Commission. The Local Government Commission's process for submitting audit reports is subject to change. Auditors should use the submission process in effect at the time of submission. In addition, if the North Carolina Office of the State Auditor designates certain programs to be audited as major programs, a turnaround document and a representation letter addressed to the State Auditor shall be submitted to the Local Government Commission. 14. The auditor can be reached for matters concerning this contract at the following email address: phodges @martinstarnes.com The finance officer or other responsible employee /official can be reached for matters concerning this contract at the following email address: Iminter@leecountync.gov 15. 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 Local Government Commission, this agreement