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1 LGC-205 (Rev. 1/12008) CONTRACT TO AUDTT ACCOiJNTS F[le in Triplicate Cabarrus County, NC of Governmental Unit On this 20th day of February 2009 Martin Starnes 8: Associates, CPAs, P.A. Auditor 730 13th Avenue Drive SE, Hickory, NC 28602 Mailing Address hereinafter referred to as the Auditor, and Board of Commissioners of Cabarrus County, NC hereinafter referred Governing Board Governmental 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 2008 and ending June 30 2009 ,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 will be rendered in relation to (as applicable) the governmental activities, the businrss-type aMivities, the aggregate discretely presented component units, each major governmental and enterprise fund, and the aggregate remaining fund information (nonmajor 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 generally accepted auditing standards. The Auditor shall perform the audit in accordance with Government Auditiae Standards if required by the State Single Audit Implementation Act, as codified in G.S. I59-34. If required by OMB Circular A-133 and the State Single Audit Implemenffition Act, the auditor shall perform a Single Audit. This audit and all associated workpapers 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 LGC. If the audit and/or workpapers aze found in this review to be substandard, the results of the review may be forwarded to the North Carolina State Board of CPA Examines. 3. This contract contemplates an unqualified opinion being rendered If financial statements are not prtpared in accordance with generally accepted accounting principles (GAAP), or the statements fail to include al] disclosures required by GAAP, explain that departure from GAAP in the space below: 4. This contract contemplates an unqualifted opinion being rendered. 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 art attachment to thrs contract. The audit will have no scope limitations except: 5. If this audit engagement is subject to the standards for audit as defined in Srovemment Auditing Standards_ 7uly 2007 revisions, issued by the Comptroller General of the United States, then the Auditor warrants by accepting this engagement that he has met the requirements for a peer review and continuing education as specified in Government Auditne Standards. The Auditor agrees to provide a copy of their most recent peer review report to the Governmental Unit and the Secretary of the Local Government Commission prior SQ the execution of the audit contract (See Item 21.) ti. 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 !X October 31 2009 7. It is agreed that generally accepted auditing standards include a review of the Governmental Unit's system of internal control 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 "significant deficiencies and material weaknesses" in AU 325 of the AICPA Professional Standards. 'I`he Auditor shall file a corn of that report with the Secretary of the Local Government Commission. 8. AlI local government and public authority contracts for annual or special audits, bookkeeping or other assistance necessary to prepaze the Unit's records for audit, financial statement preparation, any financo-related investigations, or any other audit-related work in the State of North Carolina require the approval of the Secretary of the Local Government Commission. Invoices for Jceretaty of the Local Government Commission (This also includes an~p~vrss billisres 1 [G.S. 159-34 and 115C-447] 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- auditingnature. 9. Tn consideration of dte 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 State 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 Audit - $40,000 Preparation of the financial statements - ] 0. After completing his audit, the Auditor shall submit to the Governing Board a written report of audit This report shall include, at least, Management's Discussion and Analysis, 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 ]aw, and the Auditor's opinion on the material presented. The Auditor shall famish 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. u n i] C fl Attachment number 2 F - 8 Page 207 of 286