Minutes oft the Meeting of The Liberty Town Council Held on January 22, 2024 5:30 pm  Present  Mayor: Council:  The Honorable Filmore York and' Terry Caviness Scott Kidd Jessica Brown Bill Flowe  Don Herndon, Tyson Nixon, Larry Coble Greg Carpenter,  Town Manager: Town Clerk: Town Attorney: Staff:  Finance Director; Kathy Bond, Assistant Town Manager; Janie Phelps, Fire Chief; Matt Talbott and Public Works  Director; Joseph Walsh  ToOrder  The Mayor welcomed everyone and noted all Council Members were present.  Pledge of Alegiance/nyocation join in a Moment of Silence. Adoption of Agenda  Mayor Filmore York led the Pledge of Allegiance and then the Mayor asked everyone to  Council Member Don Herndon made a motion to adopt the agenda with the addition of 11.2 Emergency Repair under New Business. Council Member Terry Caviness seconded the motion which passed unanimously: Council Member Larry Coble voted yes, Council Member Don Herndon voted yes, Council Member Tyson Nixon voted yes, Council Member Terry Caviness voted yes, and Council Member Greg Carpenter voted yes. The  agenda was approved with the addition under New Business.  Code Enforcement Report 208 E. Swannanoa.  No one is here to give the report but there isi nothing new. There is now no gameroom at  Public Hearing - Road Closure Request  This is an advertised Public Hearing for the purpose ofconsidering the Street Closure of the portion of the street right of way that was never constructed for the owner ofLots 1, 2,3,4,5, and 6 as shown ofa plat entitled "Lynwood Subdivision," recorded in Plat Mayor York called the Hearing to order at 5:40 PM and the Town Attorney read the Public Comment rules. Tom Meacham came forward to speak for owner Robert Fell. He has been in real estate for forty years and we need to make some adjustments to zoning.  Book 36, Page 20, in the Register of Deeds.    This property is already bordered by apartments and has Johnson' 's Mobile Home Park on the south side ofit. Nothing has happened on that street and the paper street needs to be Council Member Terry Caviness made a motion to approve the street closure. Council Member Tyson Nixon seconded the motion which passed unanimously with Council Members: Larry Coble, Don Herndon, Tyson Nixon, Terry Caviness, and Greg Carpenter  done away with. Mayor York closed the Hearing at 5:43 PM.  voting yes.  Public Hearing Blower Engineering Rezoning Request  This is a legislative Public Hearing for ai request by applicant Tom Byrnes with Blower Engineering on behalfo oft the property owner SPB Holdings, LLC, for a map amendment from B2 with SUP to Industrial on parcel 8726546418 approximately 8.9 acres, located at Janie Phelps came forward to give the staffi report. The applicant is here and this business has been in operation for the last ten years. The buffer requirement is Type D twenty five feet. The SUP Industrial is consistent with the LDP (Land Development Plan) existent and new. She referenced the Table Of Uses which includes al bakery, vet, bank, and Mayor York Called the Hearing to order at 5:45 PM. Michael Crigler came forward and said they plan to build a church in that area on the six acres West of Drapers. The applicant Tom Byrnes came forward to speak. He has been here ten years. His company manufactures transfer systems for grains (rice, corn, barley). This is a forty four year old family business that has been in operation for three generations. His family moved here from Canada. The Canadian facility had been there for thirty five years and needed more space. They have 45-50 electric motors outside because they need more space. They try tol hire local people. Council Member Coble said he lives across the street and they are great neighbors. The SUP is tied to a site plan and if anything changed he would have to come back. The Mayor closed the Public Hearing at 5:55 PM. Council Member Nixon asked ifthis would affect what the church is planning and the Town Manager said it would not. Council Member Herndon asked if someone new came in would they have to get ai new SUP (Special Use Permit) and Ms. Phelps said yes they Council Member Larry Coble made a motion to approve the rezoning from B2 with SUP to Industrial and found that it is consistent with the Town ofLiberty Land Development Plan and considers the amendment to bei in the Public's best interest, Council Member Terry Caviness seconded the motion which passed unanimously with Council Members: Larry Coble, Terry Caviness, Don Herndon, Tyson Nixon, and Greg Carpenter voting  10228 Old Liberty Road.  banquet facility.  would.  yes.  Public Hearing - Text Amendments to Town Ordinance  Janie Phelps came forward to give the staff report. She said this is just some minor updates. She changed the church to aj place of worship. Water and sewer connections were updated. There will be no parking on the street at Swannanoa from 91 PM-4 4AM for Mayor York opened the Public Hearing at 6PM. There was no one signed up to speak Council Member Don Herndon made ai motion to approve the text amendments to the Town Ordinance and that they are consistent with the LDP and are reasonable and within the public interest by updating. Council Member Tyson Nixon seconded the motion which passed unanimously with Council Members: Larry Coble, Terry Caviness, Don  safety concerns. and the Hearing was closed.  Herndon, Greg Carpenter and Tyson Nixon voting yes.    Finance Report  Finance Director Kathy Bond came forward to give her reports on the months of November and December. There were several adjustments due to four to five clerical errors. The Town Manager mentioned the reimbursement for our CDBG grant coming. They cannot get ASADRA until we sign construction contracts. Ms Bond said the late fees go to water and sewer. Auditors spent a day and al halfhere and seemed pleased with Council MemberI Larry Coble made a motion to approve the Finance Reports for November and December. Council Member Terry Caviness seconded the motion which passed unanimously with Council Members: Larry Coble, Terry Caviness, Don Herndon,  our implementations.  Greg Carpenter, and' Tyson Nixon voting yes.  Approval ofMinutes  Council Member Terry Caviness made a motion to approve the minutes from the Work Session November 20, 2023, Council Meeting November 27, 2023, Council Meeting December 4, 2023 and Special Meeting Public Hearing Closeout CDBG December 22, 2023. Council Member Larry Coble seconded the motion which passed unanimously: Council Member Don Herndon voted yes, Council Member Tyson Nixon voted yes, Council Member Greg Carpenter voted yes, Council Member Terry Cavienss voted yes and Council Member Larry Coble voted yes. The minutes were approved.  Consent Agenda  The Consent Agenda includes: Adoption ofFY 2024-2025 Budget Calendar, Audit Contract Thompson, Price, Scott, Adams, & Col PA, Reappointment Dennis Hargis to Planning Board/BOA, Appointment Jason Glass Planning Board/BOA and Budget Amendment # 18 (Water Department). Council Member Tyson Nixon made a motion to approve the Consent Agenda. Council Member Don Herndon seconded the motion which passed unanimously with Council Members: Larry Coble, Terry Caviness, Don  Herndon, Greg Carpenter and Tyson Nixon voting yes.  New Business  Council Liaison for ABC Board  Council needs to nominate and approve a new Council liaison for the ABC Board to The consensus of the Council is for Tyson Nixon to be the liaison for the ABC Board and Don Herndon to take his place on the Parks and Recreation Advisory Board. Emergency Repair of Sewer at Intersection of W Bowman and N Smith Street A vote is needed to approve an emergency repair not to exceed $20,000 at W Bowman Ave and N Smith St that will be completed by guidelines set forth by ARPA rules to get  replace the vacancy left by JR Beard.  full reimbursement. The consensus of the Council is to approve.  Administrative Reports an update.  Manager's Report  Town Manager Scott Kidd said Linda Brown with RCC will be here in February to give    Council Comments alarm but not the meters. Mayor Comments Adjourn  Council Member Tyson Nixon said he thought there would be alarms from the new meters ifs someone had a major leak. The Public Works Director said the wells have an  Mayor York reminded the Council to stay on subject during Public Hearings.  There being no further business to discuss, Council Member Tyson Nixon made a motion to adjourn. Council Member Terry Caviness seconded the motion which passed unanimously with a vote: Council Member Don Herndon voted yes, Council Member Tyson Nixon voted yes, Council Member Greg Carpenter voted yes, Council Member Terry Caviness voted yes, and Council Member Larry Coble voted yes. The meeting was  adjourned.  Sihne Mayor Filmore  York  b  ATTEST: pa P.  Ton Clerk    RESOLUTION 2023-15  Town of Liberty Resolution of Intent to Close an Unopened Street Declare a Public Hearing for January 22, 2024 5:30PM  WHEREAS, North Carolina General Statutes 160A-299 Procedure for permanently closing streets and alleys,  established that streets may be closed, and;  WHEREAS, An adjoining property owner has filed the appropriate request to close a street, and;  WHEREAS, the owner ofLots 1,2,3,4, 5 and 6 as shown ofa a plat entitled "Lynwood Subdivision", recorded in Plat Book 36, Page 20, in the Office oft the Register of] Deeds wished to close that portion oft the street right of  way that was never constructed, and;  WHEREAS, the street has not been accepted or maintained by the' Town, and;  WHEREAS, the street isi identified as the portion that begins at the northeastern corner ofLot4;  NOW, THEREFORE, BE IT RESOLVED that the Town Council directs Town Staff to proceed with all required public notices to hold a public hearing at the regular Council Meeting on January 22, 2024 for the  purpose of considering the street closure.  Filmore York, Mayor Shufk  ATTEST:  ahpBun Jessica Brown, Town Clerk        GREAT PLACE To  iberly  Attachment C  AN ORDINANCE AMENDING THE ZONING MAP OF THE TOWN OF LIBERTY  Tom Byrnes on behalf ofSPB Holdings, LLC  WHEREAS, the Town ofLiberty Town Council has considered the request to: rezone approximately 8.9 acres, being all of parcel 8726546418, located at 10228 Old Liberty Rd, Liberty, NC27298, from B2 with a SUP to Industrial to develop the site as needed in accordance with the Town ofLiberty Ordinances to account for future growth oft the business, and finds that the amendment is consistent with the Land Development Plan as described ini the Consistency  Statement Resolution; and  WHEREAS, the Council finds that the rezoning request set forth in the Application and incorporated herein by reference, if approved as pursuant to the provisions oft the zoning ordinance, would be suitable for the property proposed for the rezoning; and  WHEREAS, the Council finds the rezoning request to meet the standards of the zoning BEITORDAINED, by the Town Council oft the Town ofLiberty as follows: 1. The application to rezone all oft the property described as Parcel No. 8726546418 and being approximately 8.9 acres as depicted in Attachment "A", located at 10228 Old Liberty Rd, from B2 SUP to Industrial, is approved and the zoning mapi is amended  ordinance and the Land Development Plan; and  accordingly.  2. This ordinance shall become effective upon its adoption.  Adopted this 22nd day of. January, 2024  hinue Filmore York, Mayor Town ofLiberty  fb  ATTEST:  0 m Clerk to the Council  JessicaB aise TownbfLiberty  Town of Liberty e P.O. Box 1006 e 128 South Fayetteville Street e Liberty, NC 27298 Phone (336)622-4276 e Fax (336)6 622-2665 e www.Lberty-NC.com        GREAT PLACE To IVE  Pibertly  Attachment D  RESOLUTION OF THE TOWN OF LIBERTY TOWN COUNCIL APPROVING A CONSISTENCY STATEMENT AND STATEMENT OF  REASONABLENESS FOR THE APPROVAL OF Tom Byrnes on behalf of SPB Holdings, LLC  WHEREAS, the Town ofLiberty Town Council has received the application to rezone Parcel 8726546418 (the Amendment"): and finds that the: same is consistent with the Town of  Liberty Land Development Plan; and  WHEREAS, in addition, the Town ofLiberty Town Council considers the Amendment tol be reasonable and in the public interest because the rezoning tol R-1 Residential is consistent with the Land Development Plan by supporting industrial character and allowing flexibility to  expand.  NOW,THEREFORE, BE: IT RESOLVED, by the Town ofLiberty Town Council that, for the reasons set forth above, the Amendment and presented documentation are found to be consistent with the Town ofLiberty Land Development Plan and are determined to be  reasonable and ini the public interest. Adopted, this the 22nd day of January, 2024  Filmore Town ofLiberty  Mayor  Eare-kyl  ATTEST:  A. Bam  #A Clerk to the Council  Town of Liberty e P.O. Box 1006 e 128 South Fayetteville Street e Liberty, NC27298 Phone (336) 622-4276 e Fax (336) 622-2665 e www.lberty-NC.com        GREAT PLACE To  Piberty  ATTACHMENTC  RESOLUTION OFTHE' TOWN OF LIBERTYTOWN COUNCIL  APPROVING A CONSISTENCY STATEMENT AND STATEMENT OF REASONABLENESS  FOR THE. APPROVALOF Town ofLiberty Ordinance. Amendments  WHEREAS, the Town ofLiberty Town Council has received the application to amend several sections of the Town ofLiberty Ordinances (the "Amendment") and finds that the same is consistent with the Town WHEREAS, in addition, the Town ofLiberty Town Council considers the Amendment to be reasonable and in the public interest because the bulk oft the Ordinance has not been updated or modernized since 2004 and is consistent with the Land Development Plan by modernizing the text in order toj properly NOW, THEREFORE, BE: IT RESOLVED, by the Town ofL Liberty Town Council that, for the reasons set forth above, the Amendment and presented documentation are found to be consistent with the Town of Liberty Land Development Plan and are determined to be reasonable and in the public interest.  ofLiberty Land Development Plan; and  regulate development.  Adopted, this the 22nd day of. January, 2024  Filmore inlb York, Mayot Town ofLiberty  ATTEST:  Apnup lam Jesfica Brown, Clerk to the Council Tdwn ofLiberty  Town of Liberty e P.O. Box 1006 e 128 South Fayetteville Street e Liberty, NC 27298 Phone  (336) 622-4276 o Fax (336) 622-2665 e www.lberty-NC.com        GREAT LACE To  iberly  ATTACHMENTB  AN ORDINANCE AMENDING THE ZONING ORDINANCE OFTHETOWN OFI LIBERTY WHEREAS, the Town ofLiberty Town Council has considered the request to amend the' Town of Liberty Ordinances to modernize and update the Ordinance text, and finds that the amendment is consistent with the Land Development Plan as described in the Consistency Statement Resolution; and WHEREAS, the Council finds that the amendments set forth in the Application and incorporated herein by reference, ifapproved as pursuant to the provisions ofNCGS 160D and the Land Development  Plan, would be suitable for the text to be amended; and  WHEREAS, the Council finds the amendment request to meet the standards oft the Land BEI IT ORDAINED, by the Town Council ofthe Town ofLiberty as follows:  Development Plan; and  1. The application to amend all oft the proposed text amendments described in the application and as depicted in Attachment "A"is approved and the Town Ordinances are amended accordingly.  2. This ordinance shall become effective upon its adoption.  Adopted this 22nd day of January, 2024  hilmene Filmore York, Mayor Town ofLiberty  guk  ATTEST:  P. Ban Brown, Clerk tot the Council  ati TownofLiberty  Town of Liberty e P.O. Box 1006 e 128 South Fayetteville Street e Liberty, NC: 27298 Phone  (336) 622-4276 e Fax (336) 622-2665 e www.liberty-NC.com        LGC-205  CONTRACT TO AUDIT ACCOUNTS  Rev. 11/2022  The Governing Board -of Primary Government Unit Town ofLiberty NA  and Discretely Presented Component Unit (DPCU) (ifa applicable)  Primary Government Unit, together with DPCU (ifapplicable), hereinafter referred to as Govemmental Unit(s)  and Auditor Name  Thompson, Price, Scott, Adams & Co. PA  Auditor Address  4024 Oleander Drive, Suite 103, Wilmington, NC: 28403  Hereinafter referred to as Auditor  for Fiscal Year Ending 06/30/23  Date Audit Willl Be Submitted tol LGC Must ber within four months of FYE  10/31/23  hereby agree as follows:  1. The Auditor shall audit all statements and disclosures required by U.S. generally accepted auditing standards (GAAS) and additional required legal statements and disclosures of all funds and/or divisions oft the Governmental Unit(s). The non-major combining, and individual fund statements and schedules shall be subjècted tot the auditing procedures applied in the audit of the basic financial statements and an opinion shall be rendered in relation to (as applicable) the governmental activities, the business- type activities, the aggregate DPCUS, each major governmental and enterprise fund, and the aggregate remaining fund information (non- major government and enterprise funds, the internal service fund type, and the fiduciary fund types). The basic financial statements shall include budgetary comparison information in a budgetary comparison statement, rather than as RSI, for the General Fund and any annually budgeted Special Revenue funds. 2. At a minimum, the Auditor shall conduct the audit and render the report in accordance with GAAS. .The Auditor shall perform the audit in accordance with Government. Auditing Standards (GAGAS) ifthe Governmental Unit expended $100,000 or more in combined Federal and State financial assistance during the reporting period. The auditor shall perform a Single Audit if required by Title 2 US Code of Federal Regulations Part 200 Uniform Administration Requirements, Cost Principles, and. Audit Requirements for Federal Awards, Subpart F (Uniform Guidance) ort the State Single Audit Implementation Act. This audit and all associated audit documentation 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 Local Government Commission (LGC). If the audit requires at federal single audit in accordance with the Uniform Guidance ($200.501), itis recommended that the Auditor and Governmental Unit(s). jointly agree, in advance of the execution oft this contract, which party is responsible for submission of the audit and the accompanying data collection form to the Federal Audit Clearinghouse as required under the Uniform Guidance ($200.512).  Effective for audits of fiscal years beginning after. June 30, 2023, the LGC will allow auditors to considerwhether au unit qualifies as a State low-risk auditee based upon federal criteria ini the Uniform Guidance $200.520(a), and (b)t through (e) asi it applies to State awards. In addition to the federal criteria in the Uniform Guidance, audits must have been submitted timely to the LGC. Ifi in the reporting year, or in either oft the two previous years, the unit reported al Financial Performance Indicator of Concern that the audit was late, then  Page 1        LGC-205  CONTRACT TO AUDIT ACCOUNTS  the report was not submitted timely for State low-risk auditee status. Please refer to' Discussion of Single the audit and Auditor communication are found int this review tol be substandard, the results of the review inay bei forwarded to the North Carolina State Board of CPA Examiners (NC State Board). 3. Ifan entity is determined to be a component of another government as defined by the group audit  Audits in North Carolina" on the LGC's website for more information.  auditor shall make a  faith effort to comply in a timely manner with the requests of  standards, the entity's  good  the group auditor in accordance with AU-6 $600.41- -S $600.42.  4. This contract contemplates an unmodified opinion being rendered. If during the process of conducting the audit, the Auditor determines that it will not be possible to render an unmodified opinion on the financial statements of the unit, the Auditor shall contact the LGC Staff to discuss the circumstances leading to that  and before thei final report is issued. The audit shall include such tests of the  conclusion as soon as is practical circumstances. Any limitations explained in an attachment to this contract.  considered the Auditor to be necessary in the which would lead to a qualification should bei fully  accounting records and such other auditing procedures as are  by  or restrictions in  scope  5. engagement, education as specified in  Ift this audit engagement is subject to the standards for audit as defined in Government Auditing Standards, 2018 revision, issued by the Comptroller General of the United States, then by accepting this the Auditor warrants that he/she has met the requirements for a peer review and continuing  Government. Auditing Standards. The Auditor agrees to provide a copy oft the most  the  of the LGC  to the execution of an  recent peer review report to the Governmental Unit(s) and Secretary  prior  auditor's  audit contract. Subsequent submissions of the report are required only upon report expiration or upon receipt of an updated peer review report. If the audit firm received a peer review rating other than pass, the ft the audit engagement is not subject to Government Auditing Standards ori if financial statements are not  with the Governmental Unit(s) without first contacting the Secretary of the LGC for a  Auditor shall not contract  peer review analysis that may result in additional contractual requirements.  in accordance with U.S. generally accepted accounting principles (GAAP) and fail to include all  prepared disclosures required by contract ori in an amendment. 6. audit submitted to  GAAP, the Auditor shall provide an explanation as to why in an attachment toi this  It is agreed that time is oft the essence in this contract. All audits are to be performed and the report of  LGC Staff within four months of fiscal year end. Ifi it becomes necessary to amend the audit  will be submitted to the LGC, an amended contract along with a written  fee or the date that the audit report  explanation of the change shall be submitted to the Secretary of the LGC for approval.  7. report improvement. weaknesses" in AU-C 265 of report with the Secretary of the LGC.  Iti is agreed that GAAS include a review of the Governmental Unit's (Units') systems ofi internal control and accounting as same relate to accountability of funds and adherence to budget and law requirements thereto; that the Auditor shall make a written report, which may or may not be a part of the written applicable of audit, to the Governing Board setting forth his/her findings, together with his recommendations for That written report shall include all matters defined as significant deficiencies and material  the AICPA Professional Standards (Clarified). The Auditor shall file a copy of that  For GAAS or Government Auditing Standards audits, if an auditor issues an AU-C $260 report, commonly referred to as "Governance Letter," LGC staff does not require the report to be submitted unless the auditor  or issues from the audit, as defined in AU-C $260.12-.14. This would include issues  cites significant findings significant matters.  the  significant or unusual transactions, uncorrected  such as difficulties encountered during audit, misstatements, matters that are difficult or contentious  reviewed with those  with governance, and other  charged  Page: 2        LGC-205  CONTRACI IU AUDII AULUUIVI  8. All local government and public authority contracts for audit or audit-related work require the approval of the Secretary of the LGC. This includes annual or special audits, agreed upon Governmental procedures Unit's related to internal controls, bookkeeping or other assistance necessary to prepare the acords for audit, financial statement preparation, any finance-related investigations, or any Examination worki in the State of North Carolina. Approval is also required for the Alternative Compliance Engagement for auditing the Coronavirus State and' Local Fiscal Recovery Funds expenditures as allowed by US Treasury. Approval is not required on audit contracts and system improvements and similar services of a non-auditing nature.  other audit- related invoices for  for services rendered under these contracts shall not be paid by the Governmental Unit(s) until approved Alli by invoices for audit work shall be submitted in PDF format tot the Secretary  9. Invoices been the invoice has [G.S. 159-34 and 115C-447]. oft the LGC for approval. the invoice to present to the Governmental Unit(s) for payment. Unit(s) shall pay to the Auditor, upon approval by  the Secretary of the LGC. This also includes any progress billings  marked  with approval date shall be returned tot the Auditor 'approved" This paragraph is not applicable to contracts for audits  of hospitals. 10.  Inc consideration of the satisfactory performance of the provisions of this contract, the Governmental  the Secretary of the LGC ift required, the fee, which includes  assurance program  any costs the Auditor may incur from work paper or peer reviews or any other quality required by third parties (federal and state grantor and oversight agencies or other organizations)  under the Federal and State Single Audit Acts. This does not include fees for any pre-issuance  as required  the NC Association of CPAS (NCACPA) Peer Review Committee or NC State has/have outstanding revenue bonds, the Auditor shall submit to LGC Staff,  reviews that may be required by Board of CPA Examiners (see Item 13). 11. If the Govemmental Unit(s)  a calculation demonstrating unless any otherwise specified in the  either in the notes to the audited financial statements or as a separate Auditor report, shall submit to LGC Staff compliance with the revenue bond rate covenant. Additionally, the statements other bond compliance  simultaneously with the Governmental Unit's (Units') audited financial statements or additional reports required by the authorizing bond documents,  bond documents.  the audit, the Auditor shall submit to the Governing Board a written report of audit. This  12. After completing be limited the following information: (a) Management's Discussion and Analysis,  report shall include, but not  to,  units prepared in  the financial statements and notes of the Governmental Unit(s) and all ofi its component required number of copies of the report of audit to the Governing Board uponcompletion.  (b)  information requested by the Governmental Unit(s) or required fori full  accordance with GAAP, (c) supplementary!  material  The Auditor shall furnish the  disclosure under the law, and (d) the Auditor's opinion on the  presented.  Ifthe audit firm is required by the NC State Board, the NCACPAI Peer Review Committee, ort the engagement letteri indicating the pre-issuance review requirement. review. The pre-issuance review shall be performed  13.  have a  review ofi its audit work, there shall be a statement in the  Secretary of the LGC to  pre-issuance  There also shall be a statement that the  Governmental Unit(s) shall not be billed for the pre-issuance prior to the completed audit being submitted tol LGC Staff. The pre-issuance  review report shall accompany the  audit report upon submission tol LGC Staff.  Page 3        LGC-205  CONTRACT TO AUDII AGCOUNIS  submit the  of auditi in PDF format to LGC Staff. For audits of units other than  14. The. Auditor shall  report when  submitting the final invoice for services  hospitals, the audit report should be submitted rendered. The report of audit, as filed with the Secretary of  (or prior the to) LGC, becomes a matter of public record for  subsequent revisions to municipal bond Commission statements  inspection, review and copy in the offices of the LGC by any interested parties. Any statements, excluding the ese reports shall be sent to the Secretary of thel LGC. These audited financial Auditors' opinion, mayl be used ini the preparation of official statements for debt offerings by  market disclosure requirements of the Securities and Exchange  rating services to fulfill secondary and for other lawful purposes of the Governmental Unit(s) and/or the compliance unless another deadline is agreed to by LGC Staff. 15. Should circumstances necessary under ordinary circumstances, the Secretary of the LGC, this contract may be modified or  without requiring consent of the Auditor. Ifti the LGC  Staff determines that corrections need tol be made to the Governmental Unit's (Units)financial of notification  section, those corrections shall be provided within three business days  disclosed the audit call for a more detailed investigation by the Auditor than  by Auditor shall inform the Governing Board in writing of the need for  therefore. Upon approval by the  such additional investigation and the additional compensation amended required to include the increased time, compensation, 16. Ifa an approved contract needs to be modified or amended for any reason, the change does not apply to writing and pre-audited if the change includes a change in audit fee (pre-audit requirement of the change,  or both as may be agreed upon by the Governing Board and the Auditor.  shall be made in  This amended contract shall be completed in full, including a written explanation  hospitals).  to the contract. It shall then be submitted to the Secretary of the LGC for  signed and dated by all original parties approval. No change tot the audit contract shall be Governing Board, and the Auditor. 17. A copy Governmental Unit(s), shall be  effective unless  the Secretary of the LGC, the  approved by  of the engagement letter, issued by the Auditor and signed by both the Auditor and the  attached tot this contract, and except fort fees, work, and terms not related to audit  set forth herein as part of this contract. In case of conflict this contract, the terms of this contract shall take  services, shall be incorporated by reference as ift fully between the terms of the engagement letter andi the terms of precedence. Engagement letter terms that conflict with the contract are indemnification clauses shall not be accepted by LGC Staff.  deemed to be void unless the conflicting  terms oft this contract are: specifically deleted in Item 30 of this contract. Engagement letters containing  provisions should be limited. Please list any special provisions in an attachment.  18. Special 19. As separate  contract should not be made for each division to be audited or report to be submitted. Ifa  detailed ini the Local Government Budget and Fiscal Control Act and  DPCU is subject tot the audit requirements audit contract is required. If a separate report is not to bei issued  as separate audit report is issued, a separate and the DPCU is included in the primary government finance officer also shall be included on this contract. 20. The contract shall be executed, pre-audited physically signed by all parties including Governmental Unit(s) the Governmental Unit and Auditor of contract approval by  audit, the DPCU shall be named along with the primary (pre-audit requirement does not apply tol hospitals), and  from the DPCU Board chairman and  government on this audit contract. DPCU Board approval date, signatures  and the Auditor, then submitted in PDF format to email. The audit should not be started before the  the Secretary of theL LGC. 21. The contract is approved. Client Records Rule 21 as non-attest services. Clients and requesting the retum of records.  contract is not valid until it is approved by the Secretary of the LGC. The staff of the LGC shall notify  Client Records: Auditors are subject toi the NC State Board of CPA Examiners' Retention of  22. Retention of NCAC 08N .0305 as it relates to the provision of audit and other attest services, as well  former clients should be familiar with the requirements of this rule prior to  Page 4        LGG-205  23. This contract may be terminated at any time by mutual consent and agreement oft the Governmental Unit(s) and the Auditor, provided that (a) the consent to terminate is in writing and signed by both parties, (b) the parties have agreed on the fee amount which shall be paid to the Auditor (if applicable), and (c)no 24. The Governmental Unit's (Units') failure ori forbearance to enforce, or waiver of, any right or an event of breach or default on one occasion or instance shall not constitute the waiver of such right, breach or 25. There are no other agreements between the parties hereto and no other agreements relative hereto that shall be enforceable unless entered into in accordance with the procedure set out herein and approved 26. E-Verify. Auditor shall comply with the requirements of NCGS Chapter 64 Article 2. Further, if Auditor utilizes any subcontractor(s), Auditor shall require such subcontractor(s) to comply with the requirements of 27. Applicable to audits with fiscal year ends of. June 30, 2020 and later. For all non-attest services, the Auditor shall adhere to the independence rules oft the AICPA Professional Code of Conduct and Government. Auditing Standards, 2018 Revision (as applicable). Financial statement preparation assistance shall be deemed a "significant threat" requiring the Auditor to apply safeguards sufficient to reduce the threat to an acceptable level. Ift the Auditor cannot reduce the threats to an acceptable level, the Auditor cannot complete the audit. Ift the Auditor is able to reduce the threats to an acceptable level, the documentation of this determination, including the safeguards applied, must bei included int the audit workpapers. All non-attest service(s) being performed by the Auditor that are necessary to perform the audit must be identified and included int this contract. The Governmental Unit shall designate an individual with the suitable skills, knowledge, and/or experience (SKE) necessary to oversee the services and accept responsibility for the results of the services performed. If the Auditor is able to identify an individual with the appropriate SKE, s/he must document and include in the audit workpapers how helshe reached that conclusion. If the Auditor determines that an individual with the appropriate SKE cannot be identified, the Auditor cannot perform both the non-attest service(s) and the audit. See' "Fees for Audit Services" page of this contract to disclose the 28. Applicable to audits with fiscal year ends of June 30, 2021 and later. The auditor shall present the audited financial statements including any compliance reports tot the government unit's governing body or audit committee in an official meeting in open session as soon as the audited financial statements are available but not later than 45 days after the submission of the audit report toi the Secretary. The auditor's presentation to the government unit's governing body or audit committee shall include: a) the description of each finding, including all material weaknesses and significant deficiencies, as found by the auditor, and any other issues related tot the internal controls or fiscal health of the government unit as disclosed in the management letter, the Single Audit or Yellow Book reports, or any other communications from the auditor regarding internal controls as required by current auditing c) the values of Financial Performance Indicators based on information presented in the audited d) notification tot the governing body that the governing body shall develop Response Auditor's Findings, Recommendations, and Fiscal Matters," ifr required under 20 NCAC 03 .0508. 29. Information based on the audited financial statements shall be submitted to the Secretary for the purpose ofi identifying Financial Performance Indicators and Financial Performance Indicators of Concern. See 20  termination shall be effective until approved in writing by the Secretary of the LGC.  default on any subsequent occasion or instance.  by the Secretary of the LGC. NCGS Chapter 64, Article 2.  person identified as having the appropriate SKE for the Governmental Unit.  standards set by the Accounting Standards Board ori its successor;  b) the status of the prior year audit findings;  financial statements; and  a'  to the  NCAC 03. .0502(c)(6).  Page 5        LGC-205  CONTRACT TO AUDIT ACCOUNIS  30. All oft the above paragraphs are understood and shall apply to this contract, except the following  numbered paragraphs shall be deleted (See Item 171 for clarification).  31. The process for submitting contracts, audit reports and invoices is subject to change. Auditors and units should use the submission process and instructions in effect at the time of submission. Refer to the N.C. Department of State Treasurer website at!  AwAAN  32. All communications regarding audit contract requests for modification or official approvals will be sent 33. Modifications to the language and terms contained in this contract form (LGC-205) are not allowed.  tot the email addresses provided on the signature pages that follow.  Page 6        LGC-205  CONIRAGI 1U AUDIL AULUUNIO FEES FOR AUDIT SERVICES  1.For all non-attest services, the Auditor shall adhere to the independence rules of the AICPA Professional Code of Conduct (as applicable) and Government Auditing Standards,2018 Revision. Refer to Item 27 of this contract for specific requirements. The following information must be provided by the Auditor; contracts Financial statements were prepared by: Auditor Governmental Unit Third Party Ifa applicable: Individual at Governmental Unit designated to have the suitable skills, knowledge, and/or experience (SKE) necessary to oversee the non-attest services and accept responsibility for the  presented to the LGC without this information will be not be approved.  results of these services: Name: Kathy Bond  Title and Unit/ /Company: Finance/Liberty  Email Address: fmme@bommaflvetyncers  ORI Not Applicable (Identification of SKE Individual on the LGC-205 Contract is not applicable for  GAAS-only audits or audits with FYEs prior to. June 30, 2020.)  2. Fees may not be included in this contract for work performed on Annual Financial Information Reports (AFIRs), Form 990s, or other services not associated with audit fees and costs. Such fees may bei included in engagement letter but may not be included in this contract or in anyi invoices requiring approval of the LGC. See 3. The audit fee information included int the table below for both the Primary Government Fees and the DPCU Fees (if applicable) should be reported as a specific dollar amount of audit fees for the year under this contract. If 4. Prior to the submission of the completed audited financial report and applicable compliance reports subject to this contract, or to an amendment to this contract (if required) the Auditor may submit interim invoices for approval for services rendered under this contract to the Secretary of the LGC, not to exceed 75% of the billings for the unit's last annual audit that was submitted tot the Secretary oft the LGC. All invoices for services rendered in an audit engagement as defined in 20 NCAC .0503 shall be submitted to the Commission for approval before payment is made. Payment before approval is a violation of law. (This paragraph not applicable to contracts  the  Items 8 and 13 for details on other allowable and excludedf fees.  other than an amount is included here, the contract will be returned to the audit form for correction.  any language  any  and invoices associated with audits of hospitals).  PRIMARY GOVERNMENT FEES Town ofLiberty $ 30000.00  Primary Government Unit Audit Fee  Additional Fees Not Included in Audit Fee: Fee per Major Program Writing Financial Statements All Other Non-Attest Services  $ 3,000.00 ifapplicable  $ $ DPCU FEES (if applicable) NA $ $ $ $ Page7  Discretely Presented Component Unit Additional Fees Not Included in Audit Fee: Fee per Major Program Writing Financial Statements All Other Non-Attest Services  Audit Fee        LGC-205  CONTRACT Do AUDII  SIGNATURE PAGE AUDIT FIRM  Audit Firm*  Thompson, Price, Scott, Adams & Co.PA Gregory S. Adams, CPA Date*  Authorized Firm Representative (typed or printed)* Signature*  Email Address* gdams@psacpas.com  GOVERNMENTAL UNIT  Governmental Unit* Town ofLiberty (G.S.159:34a)orG G.S.115C-447(a), Mayor/Chairperson (typed or printed)* Filmore York, Mayor Date  Date Primary Government Unit Governing Board Approved Audit Contract*  Slilmue Email Address mayur@lowmolibetyncars  Lpl  10n324  Chair of Audit Committee (typed or printed, or "NA") Signature  NA Date  Email Address  GOVERNMENTAL UNIT - PRE-AUDIT CERTIFICATE Required by G.S. 159-28(a1)or G.S.115C-441a1). Not applicable to hospital contracts.  instrument has been pre-audited in the mannerr required by The Local Govemment Budget and Fiscal  This Control Act or by the School Budget and Fiscal Control Act.  Primary Governmental Unit Finance Officer* (typedo orp printed Signature*  Kathy Bond, Finance. Director Date of Pre-Audit Certificate*  Email Address* fnmme@ommolperyncos  Page 8        LGC-205  CONIRACI  SIGNATURE PAGE - DPCU (complete only if applicable)  DISCRETELY PRESENTED COMPONENT UNIT  DPCU* NA  Date DPCU Governing Board Approved Audit Contract* (Ref: G.S. 159-34(a) or G.S. 115C-447(a)), DPCU Chairperson (typed or printed)*  Signature* Email Address*  Date*  Chair of Audit Committee (typed or printed, or' "NA") Signature  Date  Email Address  DPCU -PRE-AUDIT CERTIFICATE Required by G.S. 159-28(a1) or G.S. 115C-441(a1). Not applicable to hospital contracts.  This instrument. has been pre-audited in the manner required by The Local Govemment. Budget and Fiscal  Control Act or by the School Budget and Fiscal Control Act. DPCU Finance Officer (typed or printed)* Date of Pre-Audit Certificate*  Signature* Email Address*  Remember to print this form, and obtain all required signatures prior to submission.  PRINT  Page 9        Thompson, Price, Scott, Adams & Co., P.A. 4024 OleanderI Drive Suite 103 Wilmington, North Carolina 28403 Telephone (910) 791-4872 Fax (910)239-8294  January 1,2023 Town ofLiberty 239 S. Fayetteville Street P.O. Box 1006 Liberty, NC27298 We are pleased 2023. Audit Scope and Objectives  Tol Management and' Those Charged with Governance  for the ended June 30, year  to confirm our understanding oft thes services we: are toj provide for Town ofLiberty  activities, each major fund, and the accepted ini the United States of America  We will audit the financial statements oft the governmental activities, the business-type comprise thel basici financial statements ofTown ofLiberty as ofand for the year ended. June 30, 2023. Accounting standards generally such as management's discussion and analysis  aggregate remaining fund! information, and the disclosures, which collectively (GAAP) provide for certain required supplementary information (RSI),  not a part of the basic economic, orl historical context. As RSI in accordance with auditing the information for consistency with orp provide any assurance. Thei following  Town of Liberty's basic financial statements. Such information, although  (MD&A), to supplement financial statements, is required by the  Governmental. Accounting Standards Board who considers it tol be an essential part of  financial reporting for placing thel basic financial statements in an appropriate Town operational, of standards generally accepted in the United States of America (GAAS). and thet basic financial statements. Wer willi note express an opinion orl provide any procedures do1 not provide us with sufficienta appropriate evidence to express an opinion will not! be audited: RSI ist required by GAAP and willl be subjected to certain limited procedures, but  part of our engagement, we will apply certain limited procedures to These limited Liberty's procedures will consist ofi inquiries of management regarding the methods of preparing the information and comparing other knowledge we obtained during our audit of management's responses to our inquiries, thel basic financial statements, assurance on thei information because thel limited  1) Management'sl Discussion and. Analysis 2) Net Pension. Asset/Liability. RSI  3) OPEB  information other than RSI that accompanies Town of Liberty's information to the auditing procedures applied in our audit  We have also been engaged to report on supplementary the underlying accounting and other records used toj prepare combined with our auditor's report on the financial statements:  financial statements. We will subject the following supplementary! including comparing and reconciling such information directly to ofthef financial statements and certain additional procedures, the financial statements or toi thei financial statements themselves, and other additional procedures in accordance with GAAS, and we will provide on opinion the financial statements OR inar report  an  on it in relation to the financial  written report  accompanying our auditor's report  statements as a whole [ine a separate 1) Combining  individual fund: financial statements, budgetary schedules, and other schedules.        Inc connection with our audit oftheb basici financial statements, we willi readt thei following otheri information: and considerwhether information a material inconsistency exists between the other information and the basic financial statements, or the other otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material The objectives of our audit are to obtain reasonable assurance as to whether the financial statements as a whole are free from material misstatement, whether due to fraud or error; issue an auditor's report that includes our opinion about whether your whole. Reasonable assurance: is al high level of assurance buti is not absolute assurance and therefore is not a guarantee audit conducted in accordance with GAAS and Government Auditing Standards will always detect a: material misstatement when it exists. Misstatements, including omissions, can arise from fraud or error and are considered material if there is a substantial likelihood that, individually ori ini the aggregate, they would influence thej judgment ofai reasonable user madel based The objectives also include reporting on internal control over financial reporting and compliance with provisions financial of laws,  misstatement oft the other information exists, we are required to describe iti in our report.  1) Statistical Section  material  in conformity with GAAP; and report on the fairness of the respects, when considered in relation to the financial statements as a  financial statements are: fairly presented, in all supplementary information referred to in the second paragraph  that an  on the financial statements. regulations,  contracts, and award agreements, noncompliance with which could have a material effect on the  statements in accordance with Government. Auditing Standards. Auditor's Responsibilities for the Audit of thel Financial Statements  We will conduct our auditi in accordance with GAAS and thes standards for financial audits contained in Government. Auditing Standards, issued byt the Comptroller General of the United States, and will include tests ofy your accounting records ofTown  other  we consider  to enable us to express such opinions. As parto of an auditi in accordance  ofLiberty and procedures throughout the audit.  necessary  maintain  with GAAS and Government Auditing Standards, we exercise professional judgment and  professional skepticism  We will evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management. We will also evaluate the overall presentation oft thei financial statements, including the disclosures, and of material misstatement, whether from (1) errors, (2) fraudulent financial reporting, (3) misappropriation violations of laws or governmental regulations that are attributable toi the government or to acts by management or employees  statements  transactions and events in a manner that achieves fair  determine whether the financial  represent the underlying  whether the financial statements are free  presentation. We willj plan andj perform the audit to obtain reasonable assurance about  of assets, or (4)  behalf the of government.  Because the determination of waste and abuse is subjective, Government Auditing  acting on  to detect waste or abuse in financial audits nor do they expect  Standards do: not expect auditors toj perform specific procedures auditors toj provide reasonable assurance of detecting waste or abuse. bec detectedby us, event though the auditi is properly planned performedi  limitations of an audit, combined with thei inherent limitations ofinternal control, and because we will  Because oft the inherent not perform a detailed examination of level of management of any attention. We will also inform the appropriate  all transactions, therei is an unavoidable risk that some material: misstatements may not  andj  ins accordance with GAAS: and Government. Auditing  Standards. In addition, an audit is not designed to detect immaterial misstatements or violations of laws or governmental regulations that doi notl have a direct and material effect on the financial statements. However, we will inform the appropriate  material errors, fraudulent financial reporting, or misappropriation of assets that comes to our  level ofr management of violations ofl laws or governmental: regulations that  any auditors is limited to the  covered by our  come to our attention, unless clearly inconsequential., Our responsibility as audit and does not extend to any later periods for which we arei not engaged as auditors.  period  Wewill also conclude, based ont the audite evidence obtained, whether there are conditions or events, considered: int the: aggregate, that raise substantial doubt about the government's ability to continue as a going concern fora a reasonable period of time. Our procedures existence of inventories, and direct confirmation of receivables and certain assets and liabilities by correspondence  will include tests of documentary evidence supporting the transactions recorded in the accounts, tests of the  physical  and: financial institutions. We will also request written representations from your attorneys  with selected customers, creditors, as part of the engagement.  Wel havei identified the following significant risk(s) ofr material misstatement as part of our audit planning:  Improper revenue recognition Management override of controls        Wei may, from time tot time and depending on the circumstances, use third-party service providers ins serving your account. We the may share confidential information about you with these service providers but remain committed to maintaining to confidentiality and security of your information. Accordingly, we maintain internal policies, procedures, and safeguards service protect the confidentiality ofyour personal information. In addition, we will secure confidentiality: agreements with all providers to maintain the confidentiality of your information and we will take reasonable precautions to determine that they have appropriate procedures inj place toj prevent thet unauthorized: release ofyour confidential information to others. Int the event  confidentiality  will be asked toj provide your consent prior to the  that we are unable to secure an appropriate sharing ofs your confidential information with thet third-party service provider. work provided by any such third-party service providers. Our audit of financial statements does not relieve you of your responsibilities. Audit Procedures-Internal Control  agreement, you Furthermore, we will remain responsible for the  We will obtain an understanding of the government and its environment, including internal control relevant to the audit, sufficient to identify and assess the risks of material misstatement of the financial statements, whether due to error or: fraud, and to design andj perform audit procedures responsive to those risks and obtain evidence thati is sufficient and appropriate to provide ab basis for our opinions. Tests ofcontrolsi may! be performed tot testt the effectiveness ofc certain controlst that we consider relevant toj preventing and detecting errors andf fraudt that arer materiali tot thef financial statements and toj preventing and detecting misstatements: resulting fromi illegal acts and other noncompliance, matters that have a direct andi material effect on the financial statements. Ourt tests, ifperformed, will bel lessi ins scope than would be necessary to: render an opinion on internal control and, accordingly, no opinion willl be expressed in our report on internal control issued pursuant to Government. Auditing Standards. Thei risk oft not detecting a material misstatement: resulting from fraudi is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentation, or the override ofinternal control.. An auditi is not designed to provide assurance on internal control or to identify significant deficiencies or material weaknesses. Accordingly, we will express nos such opinion. However, during the audit, we will communicate to management and those charged with governance internal control related matters that are required to be communicated under AICPA professional standards and Government As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we will and perform tests ofTown ofLiberty's compliance with the provisions ofe applicable laws, regulations, contracts, agreements, grants. However, the objective of our audit will not be toj provide an opinion on overall compliance and we will not express We will also assist inj preparing the financial statements and related notes ofTown ofLiberty in conformity with accounting principles generally accepted in the United States of America based on information provided by you. These nonaudit services do not constitute an audit under Government, Auditing Standards and such services will: not be conducted in accordance with Government. Auditing Standards. Wey will perform thes services in accordance with applicable professional standards. The other services arel limited to the financial statement services previously defined. We, in our sole professional judgment, reserve the right toi refuset toj perform any procedure ort take any action that could be construed as assuming managementi responsibilities. You agree to assume all management responsibilities acknowledge relating in thei management: representation letter our assistance with related notes prior to their issuance and have accepted responsibility for them. Further, you agree to oversee services by designating an individual, preferably from senior management, with suitable skill, knowledge, or experience;  Auditing Standards. Audit] Procedures-Complance  such an opinion in our report on compliance issued pursuant to Government, Auditing Standards.  Other Services  to the financial statements and related notes and any other  nonaudit services wej provide. You willl ber required to  reviewed and  the: financial statements and  preparation oft the financial statements andi related notes andt that you) have  approved  the nonaudit  evaluate the adequacy andi results of those services; and accept responsibility for them.        Responsiblities of Management for thel Financial Statements  Our audit willl be conducted ont thel basis that you acknowledge: andi understand your responsibility: for designing, implementing, establishing, andi maintaining effective internal controlsi relevant tot thej preparation and fair presentation off financial statements that are: free from material misstatement, whether duet toi fraud or error, and for evaluating and monitoring ongoing activities to help ensure that appropriate goals and objectives are: met; following laws and regulations; and ensuring that management and financial information is reliable and properly reported. Management is also responsible for implementing systems designed to achieve compliance with applicable laws, regulations, contracts, and grant agreements. You are also responsible for the selection and application of accounting principles, for the preparation and fair presentation of the financial statements and all accompanying information in conformity with accounting principles generally accepted in the United States of America, and for compliance with applicable laws andi regulations and thej provisions of contracts and grant agreements. Management: is responsible for making drafts of financial statements, all financial records, andi related information available to usa and fort the accuracy and completeness oft that information (includingi information: from outside oft the general ands subsidiary ledgers). You are alsoi responsible for providing us with (1) access to alli information ofwhich you: are aware thati is relevant to the preparation and fair presentation oft the: financial statements, such as records, documentation, identification of all related parties and all related-party relationships and transactions, and other matters; (2) additional information that we may request fort thej purpose oft thes audit; and (3) unrestricted access toj persons withini the government from whom we determine itr necessary to obtain audit evidence. At the conclusion of our audit, we will require certain written representations from you about your responsibilities for the financial statements; compliance with laws, regulations, contracts, and grant agreements; and other Your responsibilities include adjusting the financial statements to correct: material misstatements and for confirming to us in the written representation letter that the effects of any uncorrected misstatements aggregated by us during the current engagement andj pertaining to thel latest period presented arei immaterial, bothi individually andi int the aggregate, tot the financial You: arei responsible fort the design andi implementation ofprograms and controls toj prevent and detect fraud, and fori informing us about all known or suspected fraud affecting the govermentinyolving: (1) management, (2) employees whol have significant roles in internal control, and (3) others where the fraud could have a material effect on the financial statements. Your responsibilities includei informing us ofyour knowledge of any allegations ofi fraud ors suspected fraud affecting the government received in communications: from employees, former employees, grantors, regulators, or others. In addition,) you arei responsible fori identifying and ensuring that the government complies with applicable laws, regulations, contracts, agreements, and grants and for taking timely and appropriate steps to remedy fraud and noncompliance with provisions of laws, regulations, or You are responsible for the preparation of the supplementary information, which we have been engaged to report on, in conformity with accounting principles generally accepted in thel United States of America (GAAP). You agree to include our report on the supplementary information in any document that contains, and indicates that we have reported on, the supplementary information. You also agree to [include the audited financial statements with any presentation of the supplementary: information that includes our report thereon OR make thea audited financial statements: readily available to users of thes supplementary! information no later than the datet the supplementary information isi issued with our report thereon]. Your responsibilities include acknowledging to us int the written representation letter that (1): you are responsible for presentation of the supplementary information in accordance with GAAP; (2) you believe the supplementary information, includingi its form and content, isi fairly presented in accordance with GAAP; (3) the methods of measurement or presentation! have not changed from those used in the prior period (or, ifthey have changed, the reasons for such changes); and (4): you have disclosed to us any significant assumptions or interpretations underlying thei measurement or] presentation of thes supplementary information. Management is responsible for establishing and maintaining a process for tracking the status of audit findings and recommendations. Management is also responsible for identifying and providing report copies of previous financial audits, attestation engagements, performance audits or other studies related to the objectives discussed in the Audit Scope and Objectives section of this letter. This responsibility includes relaying to us corrective actions taken to address significant findings andi recommendations: resulting from those audits, attestation engagements, performance audits, or other studies. You are also responsible for providing management's views on our current findings, conclusions, and recommendations, as well as your planned corrective actions, for the report, and fort thei timing and: format for providing thati information.  responsibilities required by GAAS and Government. Auditing Standards.  statements of each opinion unitt taken as a whole.  contracts or grant agreements that we: report.        Engagement Administration, Fees, and Other any documents selected by us for testing.  Wer understand that your employees willj prepare all cash, accounts: receivable, or other confirmations wei request and willl locate We willj provide copies of our reports to thel Board; however, management is responsible for distribution oft thei reports and the financial statements. Unless restricted by law or regulation, or containing privileged and confidential information, copies of The audit documentation for this engagement is the property ofThompson, Price, Scott, Adams, & Co., P.A. and constitutes confidentiali information.. However, subject to applicablel laws andi regulations, audit documentation anda appropriate individuals willl bei made available upon request andi in a timely manner to Oversight Agencies, ai federal agency providing direct ori indirect funding, or thel U.S. Government Accountability Office: forj purposes ofa quality review oft the audit, to resolve audit findings, ort to carry out oversight responsibilities. We will notify you of any such request. If requested, access to such audit documentation willl bep provided under the supervision ofThompson, Price, Scott, Adams, & Co.,P.A. personnel. Furthermore, upon request, wei may provide copies of selected audit documentation tot the aforementioned parties. These parties mayi intend, or decide, to distribute the copies or information contained therein to others, including other governmental agencies. The audit documentation for this engagement will be retained for a minimum of five years after the report release date or for any additional period requested. If we are aware that ai federal awarding agency or auditee is contesting an audit finding, we will contact thej party(ies) contesting the audit finding for guidance prior to destroying the audit documentation. Gregory. Adams, CPA is the engagement; partner andi isi responsible for supervising the engagement and signing the reports or authorizing another individual to sign them. We expect tol begin our audit on approximately July 1,2023. Our fee for these services is stated in the LGC approved contract. Our standard hourly rates vary according to the degree of responsibility involved and the experience level of the personnel assigned to your audit. Our invoices for these fees willl be rendered each month as work progresses and arej payable on presentation. In accordance with our firm policies, work may be suspended ify your account becomes 60 days ori more overdue andi may not be resumed until your account is paid in full. Ifwe elect to terminate our services for nonpayment, our engagement will be deemed to have been completed upon written notification of termination, even if wel have not completed our report(s). You will be obligated to compensate us for all time expended and to1 reimburse us for all out-of-pocket costs through the date oft termination. The above: feei is based on anticipated cooperation from your personnel and the assumption that unexpected circumstances will not be encountered during the engagement. Ifsignificant additional timei isi necessary, we willl keep youi informed ofa any problems we encounter and our fees We will issue a written report upon completion of our audit of' Town ofLiberty's financial statements. Our report will be addressed to management andt those charged with governance ofTown ofLiberty. Circumstances may arisei in which our report may differ fromi its expected form and content based ont ther results ofoura audit. Depending ont thei nature oft these circumstances, iti may be necessary for us to modify our opinions, add a separate section, or add an emphasis-of-matter or other-matter paragraph to our auditor's report, or ifnecessary, withdraw from this engagement. If our opinions are other than unmodified, we will discuss the reasons with youi in advance, If, for any reason, we are unable to complete the audit or are unable to form or have not formed opinions, we may decline to express opinions or issue reports, or wei may withdraw from this engagement. We will also provide a report (that does not include an opinion) on internal control related to the: financial statements and compliance with thej provisions oflaws, regulations, contracts, and grant agreements, noncompliance with which could havea matérial effect on thei financial statements as required by Government, Auditing Standards. The report on internal control and on compliance and other matters will state (1) that the purpose oft the reporti is solelyt to describe the scope oft testing of internal control and compliance, andt the results oft that testing, and nott toj provide an opinion ont the effectiveness oft the entity'si internal control on compliance, and (2)t that the reporti is an integral part ofana audit performed in accordance with Govermment, Auditing Standards in considering the entity's internal control and compliance. The report will also state that the report is not suitable fora any other purpose. Ifd during our audit wel become aware that Town ofLiberty is subject to an audit requirement that is not encompassed in the terms oft this engagement, we will communicate to management and those charged with governance that an audit in accordance with U.S. generally accepted auditing standards and the standards for financial audits contained in Government. Auditing Standards may not satisfy thei relevant legal, regulatory, or contractual requirements. We appreciate the opportunity tol be ofs service to' Town ofLiberty and belieye this letter accurately summarizes the significant terms of our engagement. If you have any questions, please let us know. If you agree with the terms of our engagement as  our: reports are tol ber made available forj publici inspection.  willl be adjusted accordingly Reporting  described in this letter, please sign the attached copy and return itt to us.        Very truly yours,  Thompson, Price, Scott, Adams, & Co., P.A.  RESPONSE: Management signature: Title: Date:  This letter correctly sets forth the understanding of' Town ofLiberty.  Governance signature: Title: MAYOR Date:  lilme  bpll  1-22-2024        Meeting Date January 22, 2024  Town ofLiberty Budget Amendment (FY 2023-2024 #18) Council Approval Needed BE: IT ORDAINED, by the Liberty Town Council that the Town ofLiberty Budget Ordinance for fiscal year 2023-2024, which was adopted on June 21, 2023, be amended as follows: This amendmenti is to move funds from Enterprise Fund Appr to the Water Dept for the following line items. (Due to the rise of cost and more water main breaks the following line items are spent out. Most repairs were: made within NCDOT ROW which requires 15 feet each direction and Section 1: The following revenue and expenditures in the Water Sewer Fund Appr and Water  whole lane.)  Dept line items shall bei increased by the amounts indicated:  30 Fund Line Item 30-3990-000  Amended Budget 219,226 219,226  Water Sewer Fund Water Sewer Fund. Appr Total Expenditures  Budget 179,226 179,226  Change 40,000 40,000  30 Fund Line Item 30-8100-025 30-8100-190 30-8100-350  Amended Budget 13,000 68,180 26,500 107,680  Water Sewer Fund W Overtime W1 MR Water Lines W Stone & Patching Total Revenues  Budget 8,000 53,180 6,500 67,680  Change 5,000 15,000 20,000 40,000  Prepared By: Kathy Bond, Finance Director Reviewed By: Scott Kidd, Town Manager Town Manager Initials: R  imae Filmore York, Mayor Date: 122-24  ATTEST:  lyib  an 9fm Date: Vha/2034  Town Clerk