Audit contract forms have been updated and are now available on the “Submitting Your Audit” webpage.
**Important changes were made and this latest version should be used for all FY2024 audits and any other new contracts (regardless of fiscal year) for all units and auditors using the LGC contract form.**
“Total Amount Not To Exceed”
One important change to the FY2024 audit contract form is the addition of a “Total Amount Not To Exceed” field in the fees table. This field has been added to provide finance officers with clarity on the contract amount to be pre-audited as required pursuant to G.S. 159-28. This value will automatically appear in the “Sum Obligated by This Transaction” in the pre-audit certificate sections on the following pages but can be changed as needed by the finance officer.
Auditors should provide this “not to exceed” amount based on the anticipated cost of the audit. If the auditor finds that changes in scope or other factors require a fee greater than the one provided in the contract, an amended contract should be executed with the unit.
75% Cap on Interim Invoices
Reminder that North Carolina Administrative Code (20 NCAC 03 .0505) allows LGC staff to approve “interim billings up to a maximum of 75 percent of the billings for the last annual audit of the subject unit submitted to the Secretary”. We provide a table of audit fees approved by LGC staff for FY2021 and later on our website; this is the same data that we use to calculate the 75% cap.
The 75% cap is not documented in the contract but will be provided in the email from LGC staff approving the contract.
Website Resources
Please see the “Submitting Your Audit” webpage for:
- An updated standard contract form.
- Standard contract form instructions including a summary of changes made to the FY2024 form from the FY2023 form.
- An audit contract amendment form (no substantive changes were made to the FY2024 audit contract amendment form from the FY2023 form).
- Audit contract amendment form instructions.
The audit contract form provided by LGC staff is intended to standardize the submission of contract information and reduce the amount of time required for contract review and approval. All auditors and units are encouraged to use the LGC-205 form. Units and their auditors who use the audit contract form provided by LGC staff should use the LGC Form 205 Rev 11/2023 for all new contracts (regardless of fiscal year covered under the contract).
If you have any questions on the contract form, on amended contracts, or submitting your audit contract, please contact LGC.Contract@nctreasurer.com.