AG19831205 - Laserfiche WebLink

Home Browse Search

INSTRUCTIONS (Reference G.S. 159-34 and G. S. 115C-447) I, All contracts for auditing and the preparation of financi/fl statements between an audilor and the govern- ing body of any unit of local government or public authority in the State of North Carolina require the approval o f the Secretary of the Local Government Commission. Invoice for services rendered under this contract shall not be paid by the governmental unit until the invoice has been approved by the Secretary of the Local Government Commission. The invoice should be submitted in triplicate and when approved, the esigina[ and one copy will be returned to the auditor and a copy retained by the Secretary of the Local Government Commission. Approval is not required on contracts for systems improvements and similar services of a non-auditing nature, 2. The contract should be executed and submitted in triplicate to the Secretary of the Local Government Commission, State of North Carolina, Albemarle Building, Raleigh, North Carolina, 27611. 3. Upon approval, the original will be returned to the governmental unit, a copy will be forwarded to the auditor and a copy retained by the Secretary of the Local Government Commission. The audit should not be started before the contract is approved. 4. This contract contemplates an unqualified opinion being rendered. Any limitations or restrictions in scope which would lead to a qualification should be fully explained in an attachment to this contract. Contracts with such limitations will not be approved unless satisfactory explanation is made, 5. The responsibility of the auditor for funds not covered under the contract, the mssistance and information thai is to be furnished by the unit and other matters not covered by the standard agreement may be set forth in Section 6 of the contract. An addendum may be used where additional space is required. 6. If, after being approved, the contract is varied or changed by either of the parties, the change must be reduced to writing and submitted to the Secretary of the Local Government Commission for approval. No change shall be effective unless approved by the Secretary o[ the Local Government Commission. ?. A separate contract should be not be made for each division to be audited or report to be submitted. The scope of the audit should be clearly stated and the fee stated so that the amount of fee for each report can be determined. For example, the contract with the board of education should cover the books and records of the board, thc local school funds, and E. S. E. A. Title 1 and 11 funds, and the fee may be stated on a per diem or hourly basis. If the fee is for a fixed amount, the amount for each report should be stated separately. 8, A copy of the report of audit and any other written report by the auditor shall be filed with the Secretary of the Local Government Commission when (or prior to) submitting the invoice for the services rendered. Thc report of audit, as filed with thc Secretary of the Local Government Commission, becomes a matter of public record for inspection and review in the offices of the Secretary by the municipal bond rating ser- vices and others. Thc Auditor's analysis of the system of accounting and his recommendations for im- provements are intended for the Secretary's staff having direct responsibilities in thc area of accounting and Fiscal controls. 9. Wbencver the auditor uses an engagement letter with the client, Sections 2, 6 and 7 may be completed by reference to the engagement letter and attaching a copy of the engagement letter to the contract.