AGENDA Sawmills Town Hall Tuesday, February 8, 2022 9:00 am  Regular Meeting of the Sawmills Town Council  1. CallTo Order 2. Invocation 3. Pledge of Allegiance 4. Adopt Agenda 5. Approve Meeting Minutes 6. Public Comment 7. Recognitions: A. Recycle Rewards 8. Financial:  Mayor. Johnnie Greene Mayor Johnnie Greene Mayor Johnnie Greene Mayor. Johnnie Greene Mayor. Johnnie Greene Mayor. Johnnie Greene Mayor. Johnnie Greene Mayor Johnnie Greene Mayor Johnnie Greene Mayor Johnnie Greene Mayor Johnnie Greene Town) Manager Chase Winebarger Mayor. Johnnie Greene Mayor Johnnie Greene Mayor Johnnie Greene  A. December 21,20201Regular Meeting Minutes B. January 25, 2022 Regular Meeting Minutes  A. Budget Amendment: Deputy Finance Officer Appointment B. Approve Auditor Contract for FY:2021-2022  9. Public Comment 10. Updates:  A. Code Enforcement Report B. Town Manager Updates C. Council Comment  11. Closed Session: N.C.G.S. $143-318.11(a)0)  12. Adjourn    December 21, 2021 Page 10 of9  TUESDAY, DECEMBER 21, 2021  TOWN OF SAWMILLS REGULAR COUNCIL MEETING  6:00 PM  COUNCIL PRESENT Mayor. Johnnie Greene Keith Warren Joe Wesson Melissa Curtis Rebecca Johnson COUNCIL ABSENT Clay Wilson  STAFF PRESENT Chase Winebarger Julie A Good Terry Taylor  CALL TO ORDER: Mayor Johnnie Greene called the meeting to order at approximately  6:00pm.  INVOCATION: Mayor Johnnie Greene gave the invocation.  PLEDGE OF ALLEGIANCE: Mayor Johnnie Greene led the Pledge of Allegiance. ADOPT AGENDA: Mayor Johnnie Greene asked for a motion to adopt the December 21, Keith Warren made a motion, and Rebecca Johnson seconded, to adopt the December 21,  2021 Agenda.  2021 Agenda. All were in favor.  MOVE FY 2020-2021 AUDIT PRESENTATION: Mayor Johnnie Greene asked for a motion to move the FY2020-2021 Audit Presentation from Agenda Item 15B to Agenda Item Rebecca. Johnson made ai motion, and. Joe Wesson seconded, toi move the FY2 2020-2021 Audit  7.  Presentation from Agenda Item 15B to Agenda Item 7. All were in favor.  APPROVE NOVEMBER 16, 2021 REGULAR MEETING MINUTES: Mayor Johnnie Greene asked for a motion to approve the November 16, 2021 regular meeting minutes. Rebecca Johnson made a motion, and Keith Warren seconded, to approve the November 16,  2021 regular meeting minutes. All were in favor.    December 21, 2021 Page 2of9  APRROVE NOVEMBER 16, 2021 CLOSED SESSION MINUTES: Mayor Johnnie Greene asked for a motion to approve the November 16, 2021 Closed Session Minutes. Melissa Curtis made ai motion, and Joe Wesson seconded, to approve the November 16, 2021  closed session minutes. All were in favor.  PUBLIC COMMENT: Mayor Johnnie Greene asked if anyone had any questions or  comments at this time. No one wished to speak FINANCIAL MATTERS:  FY 2020-2021 AUDIT PRESENTATION: James Lowdermilk and Rick Hammer, with Lowdermilk, Church & Co., L.L.P., presented the Towns FY 2020-2021 audit to Council. Mr. Lowdermilk and Mr. Hammer stated that the Town received an unqualified audit and commended staff and Council on their efforts to maintain a strong fund balance. Joe Wesson made a motion, and Rebecca Johnson seconded, to accept the FY 2020-2021  Audit Report. All were in favor.  PUBLICHEARING: VOLUNTARY ANNEXATION  OPEN PUBLIC HEARING: Mayor Johnnie Greene asked for a motion to open the public Keith Warren made ai motion, and. Joe Wesson seconded, to open the public hearing. All were  hearing. ini favor.  STAFF COMMENTS/RECOMMENDATIONS: Interim Town Planner Alison Adams stated that the town had received aj petition for Voluntary Annexation from Ebenezer Christian  Children's Home for one (1) parcel (NCPIN: 27565 51 4168). PUBLIC COMMENT: No one wished to speak.  CLOSE! PUBLIC HEARING: Mayor Johnnie Greene asked fora a motion to close the public Rebecca Johnson made a motion, and Joe Wesson seconded, to close the public hearing. All  hearing.    December 21, 2021 Page 3 of9  were in favor.  COUNCIL ACTION: Joe Wesson made a motion, and Melissa Curtis seconded, to adopt the Annexation Ordinance for Ebenezer Christian Children's Home for one(Dparce/NCPIN  2756 51 4168) to be effective December 21,2 2021. All were in favor.  RECOGNITIONS:  RECYCLE REWARDS WINNER: Mayor Johnnie Greene announced Terry Wallace, as the December Recycle Rewards winner. A credit oft thirty-two dollars ($32.00) will be added  to the current sanitation bill. No Council action was required.  COUNCIL ADJOURN: Mayor Johnnie Greene asked for a motion to adjourn. Joe Wesson made a motion, and Keith Warren seconded, to adjourn the: meeting. All were in  favor.  OATH OF OFFICE FOR NEW COUNCIL MEMBERS: Town Clerk Julie A. Good administered the Oath of Office to incoming Mayor, Johnnie Green and incoming Council  Members, Clay Wilson and Rebecca Johnson.  COUNCIL PRESENT Mayor Johnnie Greene Clay Wilson Keith Warren Rebecca Johnson Joe Wesson Melissa Curtis  STAFF PRESENT Chase Winebarger Julie Good Terry Taylor  CALL TO ORDER: Mayor Johnnie Greene called the meeting to order.  ADOPT AGENDA: Mayor Johnnie Greene asked for a motion to adopt the December 21, Joe Wesson made ai motion, and Rebecca Johnson seconded, to adopt the December21,2021  2021 Agenda.  agenda. All were in favor.  PUBLIC COMMENT: Mayor Johnnie Greene asked if anyone had any questions or    December 21, 2021 Page 4 of9  comments at this time. No one wished to speak.  ORGANIZATIONAL MATTERS:  SEATING ARRANGEMENTS: Mayor Johnnie Greene asked Council to be seated as  follows:  Melissa Curtis Keith Warren Rebecca Johnson Town Attorney Mayor Town Manager Joe Wesson Clay Wilson Town Clerk  ELECTION OF MAYOR PRO TEM: Mayor Johnnie Greene stated that as ai result oft the November 2021 election, Council would need to elect ai new Mayor Pro Tem. RebeccaJohnson made ai motion, and Joe Wesson seconded, to appoint Clay Wilson as Mayor  Pro Tem. All were in favor.  COUNCIL ETHICS AND CODE OF CONDUCT: Mayor Johnnie Greene stated that every Council member should have a copy ofthe Code of] Ethics prepared by Town Attorney Mayor Johnnie Greene also stated that every Council member should also have the Standard ofConduct prepared by Town Attorney Terry Taylor. Mayor. Johnnie Greene asked that each Council member read the form. Each Council member should be prepared to sign the  Terry Taylor and adopted by Town Council on August 17,2010.  Standard of Conduct form and return it to the Clerk.  No Council action was required.  STANDING COUNCIL COMMITTEE ASSIGNMENTS: Mayor Johnnie Greene  announced the attached new Standing Council Committees.  No Council action was required.    December 21,2021 Page 5of9  FINANCIAL:  ADOPT BUDGET WORKSHOP SCHEDULE: Mayor. Johnnie Greene asked for to adopt the proposed FY 2022-2023 budget workshop schedule. Joe Wesson made a motion, and Rebecca Johnson seconded, to adopt the 2023 budget workshop schedule. All were in favor.  ai motion  proposed FY 2022-  APPOINT DEPUTY FINANCE OFFICERS: Mayor Johnnie Greene stated event that the Finance Officer, Karen Clontz, is not available the Town Deputy Finance Officers to fulfill her duties pursuant to NCGS $ 159-25(b). will need alternate  that in the  Rebecca Johnson made a motion, and Keith Warren seconded to appoint Chase Winebarger and Assistant Public Works Director Steve Coonse Town Manager  Officers. All were in favor.  as Deputy Finance  BENDED KNEE OUTDOORS DONATION REQUEST:  Johnnie  that Bended Knee Outdoors, requested a donation in the amount Mayor of two hundred Greene dollars stated  ($200.00).  Joe Wesson made ai motion, and Keith Warren seconded, to two hundred dollars ($200.00) to Bended Knee Outdoors. All give  a donation were in favor.  in the amount of  UPDATES:  DECEMBER CODE ENFORCEMENT REPORT: Interim Town Planner  stated that there are seventeen (17) code enforcement cases  Alison Adams  open:  Edith Shatley, 2512 Crest Ln, Rubbish and Zoning Violation. Town Planner Dustin Millsaps stated that on November 23, 2021, a NOV letter was sent for rubbish and unpermitted accessory buildings, also of people living in at tenti ini the front yard. Town Planner Dustin Millsaps stated that as ofDecember3,2 2021, there had been noj Wiley Fletcher, 2502 Crest Ln, Rubbish and Zoning Violation. Town Planner Dustin Millsaps stated that on November 23, 2021, a NOV letter was sent for rubbish located sporadically on the property, as well as a zoning violation for the being buildings located on the property. Town Planner Dustin Millsaps stated that accessory as of  on the issues;  progress  December 3, 2021, there had been no progress;    December 21, 2021 Page 6of9  Greene Properties, LLC, 4811 Helton Rd, Rubbish. Town Planner Dustin Millsaps stated that on November 23, 2021, a NOV letter, along with a copy of the Town's trash pick up policy, was sent for rubbish sitting at the road. Town Planner Dustin Millsaps stated that as ofl December 3, 2021, the issue has been resolved; Steven Killian, 4801 Helton Rd, Rubbish. Town Planner Dustin Millsaps stated that a NOV letter, along with a copy ofthe Town's s trash pick up policy, was: sent forrubbish sitting at the road. Town Planner Dustin Millsaps stated that as ofDecember 3, 2021, rubbish had not been picked up but it seems that the rubbish has been covered with a David and Ashley Hoyle, 2465 Granville Dr, Rubbish. Town Planner Dustin Millsaps stated that on November 23, 2021, a NOV letter was sent. Town Planner Dustin Millsaps stated that as of December 3, 2021, it looks like there has been more rubbish Parker Cox, 2527 Sigmon Dr, Rubbish. Town Planner Dustin Millsaps stated that on November 23, 2021, al NOV letter was sent. Town Planner Dustin Millsaps stated that as of] December 3, 2021, the it has started to be cleaned, but there is still a substantial Gary Hicks, 2520 Sigmon Dr, Rubbish. Town Planner Dustin Millsaps stated that on November 23, 2021, a NOV letter was sent fpr dilapidated amd structures on the property. Town Planner Dustin Millsaps stated that the NOV letter was returned to the Charles J. and Candis S. Hagaman, 19101 Leah Dr. #13, Rubbish. Town Planner Dustin Millsaps stated that on October 29, 2021, he received a complaint from Public Works regarding various different properties on Leah Drive, some of which encroach on Town property. Town Planner Dustin Millsaps stated that there was al NOV letter sent out. Town Planner Dustin Millsaps stated that he went by the property on November 9, 2021 and there has been no progress on the issue. Interim Town Planner Alison Adams stated that she spoke to someone on December 15, 2021 and was informed that they were hauling a trailer load off on December 16, 2021 and the remaining debris CharlesJ.and Candis S. Hagaman, 1910 Leah Dr. #12, Rubbish. Town Planner Dustin Millsaps stated that on October 29, 2021, he received a complaint from Public Works regarding various different properties on Leah Drive, some of which encroach on Town property. Town Planner Dustin Millsaps stated that there was al NOV letter sent out. Town Planner Dustin Millsaps stated that he went by the property on November Linda G. Wartko, 5299) Lakewood: Dr., Rubbish. Town Planner Dustin Millsaps stated that on October 29, 2021, he received a complaint for stacks ofi newspapers and junk piled up around the yard. Town Planner Dustin Millsaps stated that he went by the home and observed numerous debris from the road in front, on the sides and all around the home and sent al NOV letter out. Town Planner Dustin Millsaps stated that he went to the address on November 9, 2021 and there has been no progress on the issues; Jose. A Montes and Ana C Robles, 4321 Cherokee Ct. Rubbish. Town Planner Dustin Millsaps stated that he received a complaint and a NOV letter was sent out on October  tarp;  added;  amount ofrubbish remaining;  Town on November 27, 2021;  will be taken care of shortly;  9,2021 and there has been some progress on the issue;    December 21, 2021 Page 7of9  5, 2021 for overgrown grass as well as rubbish all around the yard. Town Planner Dustin Millsaps stated that he went by the property on October 12, 2021, and November 9, 2021 and the problem still exists. Town Planner Dustin Millsaps stated Ronald B and Cynthia H Herman, 4126 Shoun Dr. Rubbish. Town Planner Dustin Millsaps stated that he received a complaint and a NOV letter was sent out on September 28, 2021 for many different rubbish items in the yard (lawn mowers, appliances, etc.). Town Planner Dustin Millsaps stated that he went by thej property on October 12, 2021 and the problem has started to be addressed, however, not completely. Town Planner Dustin Millsaps stated that he went by the property on November 9, 2021, and it looks that the property is almost completely clean. Town Planner Dustin Millsaps stated that he went by the property on. December 3, 2021, and the tenants seem to have accumulated more rubbish in the yard again; Teresa Annas Compton, 4486 Sawmills School Road. Abandoned Mobile Home/Garbage and Rubbish. Town Planner Dustin Millsaps stated he received a complaint on January 13, 2020. Town Planner Dustin Millsaps stated that a NOV letter was sent out on January 23, 2020 with a deadline of February 10, 2020. Town Planner Dustin Millsaps stated that the trailer is not finished and located on the same property as the Compton house that the Town abated in 2018. Town Planner Dustin Millsaps stated that staff will investigate and work with attorney for possible courses of abatement. Town Planner Dustin Millsaps stated that one (1) of Ms. Compton's sons is scheduled to meet with staff in late February to work towards getting the property in his name and get the property cleaned up. Town Planner Dustin Millsaps stated that staff has is waiting for Ms. Compton' s son to schedule a time to come in and speak with staffregarding this property. Town Planner Dustin Millsaps stated that he went by the property on September 10, 2020 and the property is still in same condition with extremely high grass and would recommend demolition. Town Planner Dustin Millsaps stated that he has been in contact with Town Attorney Terry Taylor and former Town Planner to get all the evidence for this property. Town Planner Dustin Millsaps stated that on February 19, 2021, the title search process had been started with Town Attorney Terry Taylor. Town Planner Dustin Millsaps stated that on. March 11, 2021, there were three (3) heirs found from the title search process and letters had been sent out to all three (3). heirs. Town Planner Dustin Millsaps stated that as of May 11, 2021, fines have started to occur on this property. Town Planner Dustin Millsaps stated that as of. June 10, 2021, all information on this case. has been handed over to Town Attorney Terry Taylor to explore all options that are left to close this case. Town Planner Dustin Millsaps stated that as of October 12, 2021 Town Attorney Terry Taylori is still engaged in the legal process oftrying to find heirs to the Thomas Charles Mann, 2228 Horseshoe Acres Dr., Rubbish. Town Planner Dustin Millsaps stated that he received a complaint and a NOV letter was sent out on August 31,2021 regarding observation that the property has very large tree clippings and two (2) different trailers located within the right of way. Town Planner Dustin Millsaps stated that he went by the property on October 12, 2021, and that the trailers have been  that he recently learned that the property is in foreclosure;  property;    December 21, 2021 Page 8 of9  moved, but the tree trimmings still remain. Town Planner Dustin Millsaps stated that he went by the property on November 5, 2021, and all issues are resolved. Interim Town Planner Alison Adams stated that another complaint was received on December 15,2021, regarding a trailer weith a 4-wheeler on it parked in the right ofway; CharlesJ.and Candis S. Hagaman, 1910I Leah Dr. #19, Rubbish. Town Planner Dustin Millsaps stated that on October 29, 2021, he received a complaint from Public Works regarding various different properties on Leah Drive, some of which encroach on Town property. Town Planner Dustin Millsaps stated that there was a NOV letter sent out. Town Planner Dustin Millsaps stated that he went by the property on November Gloria Brown, 4333 Coblel Ln, Brush and Carpet. Interim Town Planner. Alison. Adams stated that a complaint wasi received on December 15,2021 and will sent al NOVI letter,  9,2021 and the issuel has been resolved.  along with a copy oft the Town's trash pick up policy, to owner.  No Council action was required.  TOWN MANAGER UPDATES: Town Manager Chase Winebarger had the following  updates:  Town Manager Chase Winebarger stated that the scoreboard at Baird Park is now Town Manager Chase Winebarger stated that he has spoken to ALE regarding the Ardmore property and they are moving forward with the lawsuit as the Town moves Town Manager Chase Winebarger stated that he is working to get the new site plans for Council to look at and should have something at the Budget Retreat. Town Manager Chase Winebarger stated that Parks and Recreation Director Tanner Greene was working with the WPCOG for grants for the first phase of the plan. Town Manager Chase Winebarger stated that WPCOG was working with the Town for a grant from FMEA for the South Caldwell Pump Station. Town Manager Chase Winebarger stated that all the policies have been sent to David Hill and Mr. Hill will be coming to Town Hall in February or March. Town Manager Chase Winebarger stated that the head shots of Council and Staff are Town Manager Chase Winebarger stated that the Christmas lunch for Staff would be Wednesday, December 22, 2021 at 11:30am at Tumbleweeds in Lenoirifany Council  working and he will have pictures up on Facebook soon.  forward with the tax lien.  back and he will be sending them out soon.  member would like to attend.  COUNCIL COMMENTS: everyone al Merry Christmas.  Rebecca Johnson wanted to thank everyone for coming to the meeting and wanted to wish    December 21, 2021 Page 9of9  Keith Warren wanted to wish everyone al Merry Christmas.  Joe Wesson wanted to wish everyone a Merry Christmas and a Happy and Prosperous New  Year.  COUNCIL ADJOURN: Mayor Johnnie Greene asked for ai motion to adjourn. Rebecca. Johnson made amotion, and Joe Wesson seconded, to adjourn the meeting. All were  ini favor.  The meeting was adjourned at approximately 6:45pm.  Johnnie Greene, Mayor  Julie A. Good, Town Clerk    Page 1of1  TUSDAY,ANUARY75. 2022  TOWN OF SAWMILLS! REGULAR COUNCIL MEETING  6:00 PM  COUNCIL PRESENT Mayor Pro Tem Clay Wilson Rebecca Johnson COUNCIL ABSENT Mayor. Johnny Greene Keith Warren Joe Wesson Melissa Curtis  STAFF PRESENT Julie A Good  CALL TO ORDER: Mayor Pro Tem Clay Wilson called the meeting to order at  approximately 6:00pm.  Mayor Pro Tem Clay Wilson stated that there was not enough Council members to make a quorum, therefore, the meeting would be adjourned and all Town business would be conducted at the next scheduled Budget Retreat meeting on Tuesday, February 8, 2022, COUNCIL ADJOURN: Mayor Pro Tem Clay Wilson made ai motion, and Rebecca Johnson  beginning at 9:00am.  seconded, to adjourn the meeting. All were in favor. The meeting was adjourned at approximately 6:00pm.  Johnnie Greene, Mayor  Julie A. Good, Town Clerk    AGENDA ITEM 7A  MEMO DATE: SUBJECT:  February 8, 2022 Recognition: Recycle Rewards Program  Discussion:  The Town of Sawmills would like to congratulate Cathy Knepp on winning the Recycle Rewards Program for the month of. January. Mayor. J Johnnie Greene will present her with a Certificate of Appreciation. A thirty-two dollar ($32.00) credit will be added to the current sanitation bill.  Recommendation: No Council action is required.    AGENDA ITEM 8A  MEMO DATE: SUBJECT:  February 8, 2022 Financial Matters: Budget Amendment For Deputy Finance Director  Discussion:  With the retiring ofTown of Sawmills Finance Director Karen Clontz in December of2022, the Town will need to hire and train a replacement. Council will need to approve a budget amendment in the amount of one hundred twenty thousand dollars ($120,000.00), from the General Fund to the Finance Fund, to cover the expenses for the new position ofl Deputy Finance  Director, in the Finance Department.  Recommendation:  Staff recommends Council approve the budget amendment in the amount of one hundred twenty thousand dollars ($120,000.00), from the General Fund to the Finance Fund, to cover the expenses for the: new position of] Deputy Finance Director, in the Finance Department.    BUDGET AMENDMENT ORDINANCE TOWN OF SAWMILLS General Fund  BE: IT ORDAINED, by the Town Council of the Town of Sawmills, Caldwell County, North Carolina, that the following amendment to the Budget Ordinance for the fiscal year 2021 - 2022 be hereby  adopted.  NOW, THEREFORE, BE ITI RESOLVED, that the following amendment for the fiscal year be  made to the budget for the fiscal year ended June 30, 2022.  Department/Budget General Fund-Revenue Finance - Expenditure  Account Number 1-00-3990 1-20-4100 1-20-4103 1-20-4106  Account Appropriated Fund Balance Wages Employeel Benefits Fica/Med/Fed  Increase Increase $85,000 $24,000 $11,000  $120,000  Explanation: To cover expenditures for a new position, Deputy Finance Director, in the Finance  Department.  This Amendment now adopted this the.  day of.  2022.  Mayor, Town of Sawmills  APPROVED BY:  Finance Officer, Town of Sawmills  ATTEST: Town Clerk  APPROVED TO: FORM:  Town Attorney    AGENDA ITEM 8B  MEMO DATE: SUBJECT:  February 8, 2022 Financial Matters: Approve Auditor Contract for FY2021-2022  Discussion:  Enclosed with this memo is a contract from our current auditing firm Lowdermilk, Church & Co., L.L.P. The contract, in the amount of $21,315.00 (twenty-one thousand three hundred This amount of $21,315.00 (twenty-one thousand three hundred fifteen dollars) includes the  fifteen dollars), will cover the period of. July 1,2 2021 to. June 30, 2022.  following: Audit:  $7,900.00 $4,280.00  Preparation of annual financial statements:  This amount includes continual guidance, advice and directives throughout the year from the  auditors concerning any issues that may arise throughout the fiscal year.  Recommendation:  Staffi recommends Council approve a contract with Lowdermilk, Church & Co., L.L.P. in the amount of $21,315.00 (twenty-one thousand three hundred fifteen dollars) and covering the  period of. July 1,2021 to June 30, 2022.    LGC-205  CONTRACTTO, AUDIT ACCOUNTS  Rev. 11/2021  The Governing Board Town Council of Primary Government Unit Town of Sawmills N/A  and Discretely Presented Component Unit (DPCU) (fa applicable)  Primary Government Unit, together with DPCU (ifa applicable), hereinafter referred to as Governmental Unit(s)  and Auditor Name Auditor Address  Lowdermilk Church & Co., LLP  121 North Sterling Street, Morganton, NC 28655  Hereinafter referred to as Auditor  for Fiscal Year Ending 06/30/22  Audit Report Due Date 10/31/22 Must be withint four months ofF FYE  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 of the Governmental Unit(s). 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 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 thet 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 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 if the 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 (Uniform Guidance) or 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 oft the Office of State. Auditor (OSA) and the Local Government Commission (LGC). Ift the audit requires ai federal single audit in accordance with the Uniform Guidance ($200.501), iti is recommended that the Auditor and Governmental Unit(s)J jointly agree, in advance of the execution of this contract, which party is responsible for submission of the audit and the accompanying: data collection form to the Federal Audit Clearinghouse as Ift the audit and Auditor communication are found in this review to be substandard, the results oft the review may bei forwarded to the North Carolina State Board of CPA Examiners (NC State Board).  funds.  required under the Uniform Guidance ($200.512).  Page 1    LGC-205  CONTRACT TO AUDIT ACCOUNTS  Rev. 11/2021  3. Ifan entity is determined to be a component of another government as defined by the group audit standards, the entity's auditor shall make a good faith effort to comply in a timely manner with the requests of 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 conclusion as soon as is practical and before the final report is issued. 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 5. 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 engagement, the Auditor warrants that helshe has met the requirements for a peer review and continuing education as specified in Government Auditing Standards. The Auditor agrees to provide a copy oft the most recent peer review report to the Governmental Unit(s) and the Secretary of the LGC prior to the execution of an audit contract. Subsequent submissions oft the report are required only upon report expiration or upon auditor's receipt of an updated peer review report. If the audit firm received a peer review rating other than pass, the Auditor shall not contract with the Governmental Unit(s) without first contacting the Secretary oft the LGC for a If the audit engagement is not subject to Government. Accounting Standards or if financial statements are not prepared in accordance with U.S. generally accepted accounting principles (GAAP) andi fail toi include all disclosures required by GAAP, the Auditor shall provide an explanation as to why in an attachment to this 6. It is agreed that time is of the essence in this contract. All audits are to be performed and the report of audit submitted to LGC Staff within four months of fiscal year end. Ifit becomes necessary to amend the audit fee or the date that the audit report will be submitted to the LGC, an amended contract along with a written 7. Itis agreed that GAAS include a review of the Governmental Unit's (Units') systems of internal control and accounting as same relate to accountability of funds and adherence to budget and law requirements applicable thereto; that the Auditor shall 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/her findings, together with his recommendations for improvement. That written report shall include all matters defined as "significant deficiencies and material weaknesses" in AU-C 265 of the. AICPA Professional Standards (Clarified). The Auditor shall file a copy of that 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 procedures related to internal controls, bookkeeping or other assistance necessary to prepare the Governmental Unit's (Units') records for audit, financial statement preparation, any finance-related investigations, or any other audit- related work in the State of North Carolina. Approval is not required on contracts and invoices for system improvements and Invoices for services rendered under these contracts shall not be paid by the Governmental Unit(s) until the invoice has been approved by the Secretary of the LGC. (This also includes any progress billings.)IG.S. 159-34 and 115C-447] All invoices for Audit work shall be submitted in PDF format to the Secretary of the LGC  the group auditor in accordance with AU-6 $600.41 -S $600.42.  explained in an attachment to this contract.  peer review analysis that may result in additional contractual requirements.  contract or in an amendment.  explanation of the change shall be submitted to the Secretary of the LGC for approval.  report with the Secretary of the LGC.  similar services of a non-auditing nature.  9.  for approval. The invoice marked 'approved 'with approval date shall be returned to  Page 2    LGC-205  CONTRACT TO AUDIT ACCOUNTS  Rev. 11/2021  the Auditor to present to the Governmental Unit(s) for payment. This paragraph is not applicable to 10. In consideration of the satisfactory performance of the provisions of this contract, the Governmental Unit(s) shall pay to the Auditor, upon approval by the Secretary of the LGC if required, the fee, which includes any costs 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. This does not include fees for any pre-issuance reviews that may be required by the NC Association of CPAS (NCACPA) Peer Review Committee or NC 11. Ifthe Governmental Unit(s) has/have outstanding revenue bonds, the Auditor shall submit to LGC Staff, either in the notes to the audited financial statements or as a separate report, a calculation demonstrating compliance with the revenue bond rate covenant. Additionally, the Auditor shall submit to LGC Staff simultaneously with the Governmental Unit's (Units') audited financial statements any other bond compliance statements or additional reports required by the authorizing bond documents, unless otherwise specified in the 12. 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) Managements Discussion and Analysis, (b) thei financial statements and notes of the Governmental Unit(s) and all of its component units prepared in accordance with GAAP, (c) supplementary information requested by the Governmental Unit(s) or required for full disclosure under the law, and (d) the Auditor's opinion on the material presented. The Auditor shall furnish the 13. If the audit firm is required by the NC State Board, the NCACPA Peer Review Committee, or the Secretary of the LGC to have a pre-issuance review of its audit work, there shall be a statement in the engagement letter indicating the pre-issuance review requirement. There also shall be a statement that the Governmental Unit(s) shall not be billed for the pre-issuance review. The pre-issuance review shall be performed prior to the completed audit being submitted tol LGC Staff. The pre-issuance review report shall accompany the 14. The Auditor shall submit the report of audit in PDF format to LGC Staff. For audits of units other than hospitals, the audit report should be submitted when (or prior to) submitting the final invoice for services rendered. The report of audit, as filed with the Secretary of the LGC, becomes a matter of public record for inspection, review and copy in the offices of the LGC by any interested parties. Any subsequent revisions to these reports shall be sent to the Secretary of the LGC. These audited financial statements, excluding the Auditors' opinion, may be used in the preparation of official statements for debt offerings by municipal bond rating services to fulfill secondary market disclosure requirements of the Securities and Exchange Commission and for other lawful purposes oft the Governmental Unit(s) without requiring consent of the Auditor. If the LGC Staff determines that corrections need to be made to the Governmental Unit's (Units') financial statements, those corrections shall be provided within three business days of notification unless another deadline is agreed to by 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 bythe  contracts for audits of hospitals.  State Board of CPAI Examiners (see Item 13).  bond documents.  required number of copies of the report of audit to the Governing Board uponcompletion.  audit report upon submission to LGC Staff.  LGC Staff.  Page 3    LGC-205  CONTRACT TO AUDIT ACCOUNTS  Rev. 11/2021  Secretary of the LGC, this contract may be modified or amended to include the increased time, compensation, 16. If an approved contract needs to be modified or amended for any reason, the change shall be made in writing and pre-audited if the change includes a change in audit fee (pre-audit requirement does not apply to hospitals). This amended contract shall be completed in full, including a written explanation of the change, signed and dated by all original parties to the contract. It shall then be submitted to the Secretary oft the LGC for approval. No change to the audit contract shall be effective unless approved by the Secretary of the LGC, the 17. Acopy of the engagement letter, issued by the Auditor and signed by both the Auditor and the Governmental Unit(s), shall be attached tot this contract, and except fori fees, work, and terms not related to audit services, shall be incorporated by reference as if fully set forth herein as part of this contract. In case of conflict between the terms of the engagement letter and the terms of this contract, the terms of this contract shall take precedence. Engagement letter terms that conflict with the contract are deemed to be void unless the conflicting terms of this contract are specifically deleted in Item 30 of this contract. Engagement letters containing 18. Special provisions should be limited. Please list any special provisions in an attachment. 19. As separate contract should not be made for each division to be audited or report to be submitted. Ifa DPCU is subject toi the audit requirements detailed in the Local Government Budget and Fiscal Control Act and a separate audit report is issued, a separate audit contract is required. Ifa a separate report is not tol bei issued and the DPCU is included in the primary government audit, the DPCU shall be named along with the primary government on this audit contract. DPCU Board approval date, signatures from the DPCU Board chairman and 20. The contract shall be executed, pre-audited (pre-audit requirement does not apply to hospitals), and physically signed by all parties including Governmental Unit(s) and the Auditor, then submitted in PDF format to 21. The contract is not valid until iti is approved by the Secretary of the LGC. The staff of the LGC shall notify the Governmental Unit and Auditor of contract approval by email. The audit should not be started before the 22. Retention of Client Records: Auditors are subject to the NC State Board of CPA Examiners' Retention of Client Records Rule 21 NCAC 08N .0305 as it relates to the provision of audit and other attest services, as well as non-attest services. Clients and former clients should be familiar with the requirements of this rule prior to 23. This contract may be terminated at any time by mutual consent and agreement of 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 termination 24. The Governmental Unit's (Units') failure or 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 default on 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 by the  or both as may be agreed upon by the Governing Board and the Auditor.  Governing Board, and the Auditor.  indemnification clauses shall not be accepted by LGC Staff.  finance officer also shall be included on this contract.  the Secretary of thel LGC. contract is approved.  requesting the return of records.  shall be effective until approved in writing by the Secretary of the LGC.  any subsequent occasion or instance.  Secretary of the LGC.  Page 4    LGC-205  CONTRACT TO AUDIT ACCOUNTS  Rev. 11/2021  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 Governmental 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. If the Auditor cannot reduce the threats to an acceptable level, the Auditor cannot complete the audit. If the Auditor is able to reduce the threats to an acceptable level, the documentation of this determination, including the safeguards applied, must be included in the audit All non-attest service(s) being performed by the Auditor that are necessary to perform the audit must be identified and included in 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 toi 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 to 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 oft the audit report to 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 to 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 to the governing body that the governing body shall develop a Response to the 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 of identifying Financial Performance Indicators and Financial Performance Indicators of Concern. See 20  NCGS Chapter 64, Article 2.  workpapers.  person identified as having the appropriate SKE for the Governmental Unit.  standards set by the Accounting Standards Board or its successor;  b) the status of the prior year audit findings;  financial statements; and  NCAC 03 .0502(c)(6).  Page 5    LGC-205  CONTRACT TO AUDIT ACCOUNTS  Rev. 11/2021  30. All of 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 ine effect at the time of submission. Refer to the N.C. Department of State Treasurer website at htps/w.ncreasurer.comsale-andkocak govermen-finance-dvonlocat-govemmenkcommisonsummitingyouraudit to the email addresses provided on the signature pages that follow.  32. All communications regarding audit contract requests for modification or official approvals will be sent 33. Modifications toi the language and terms contained in this contract form (LGC-205) are not allowed.  Page 6    LGC-205  CONTRACT TO AUDIT ACCOUNTS FEES FOR AUDIT SERVICES  Rev. 11/2021  1. For all non-attest services, the Auditor shall adhere to the independence rules of the AICPA Professional Code of Conduct (as applicable) and Governmental 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: MAuditor 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: Karen Clontz  Title and Unit/C Company: Finance Officer  Email Address: cnz@loamolamliscon  OR Not Applicable (Identification of SKE Individual nota applicable for GAAS-only audit ora audits with FYES priort 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 be included in the engagement letter but may not be included in this contract or in any invoices requiring approval of the LGC. 3. 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 to the Secretary of the LGC. Should the 75% cap provided below conflict with the cap calculated by LGC Staff based on the billings on file with the LGC, the LGC calculation prevails. All invoices for services rendered in an audit engagement as defined in 20 NCAC .0503 shall be submitted to the Commission for approval before any payment is made. Payment before approval is a violation ofl law. (This paragraph not applicable to contracts and invoices associated with audits of hospitals).  See Items 8 and 131 for details on other allowable and excludedf fees.  PRIMARY GOVERNMENT FEES Town of Sawmills $ 7,900 $ $ 4,280 $ $9,135.00 DPCU FEES (ifa applicable) NIA $ $ $ $ $ Page7  Primary Government Unit Audit Fee  Additional Fees Not Included in Audit Fee: Fee per Major Program Writing Financial Statements AlI Other Non-Attest Services 75% Cap forl Interim Invoice Approval (not applicable to hospital contracts) Discretely Presented Component Unit Additional Fees Not Included in Audit Fee: Fee per Major Program Writing Financial Statements All Other Non-Attest Services 75% Cap for Interim Invoice Approval (not applicable to hospital contracts)  Audit Fee    LGC-205  CONTRACT TO AUDIT ACCOUNTS  Rev. 11/2021  SIGNATURE PAGE AUDIT FIRM  Audit Firm*  Lowdermilk Church & Co., LLP James E Lowdermilk Date*  Authorized Firm Representative (typed or printed)*  k n.ouwdemik@lowdemnlikchurehepa.com  Enail Address*  -A2-22  GOVERNMENTAL UNIT  Governmental Unit* Town of Sawmills (G.S.159-34(a)or G.S.115C-447(a), Mayor/Chairperson (typed or printed)* Johnnie Greene Date  Date Primary Government Unit Governing Board Approved Audit Contract*  Signature* Email Address syrena@bommohamis.on  Chair of Audit Committee (typed or printed, or' "NA") Signature  N/A Date  Email Address  GOVERNMENTAL UNIT - 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 manneri required by The Local Govemment Budget and Fiscal  Control. Act or by the School Budget and Fiscal Control Act. Primary Governmental Unit Finance Officer* (ypedo orp printed Signature*  Karen Clontz  Date of Pre-Audit Certificate*  Email Address* dont@lomobswmilizcon  Page 8    LGC-205  CONTRACT TO AUDIT ACCOUNTS SIGNATURE PAGE-D DPCU (complete only if applicable)  Rev. 11/2021  DISCRETELY PRESENTED COMPONENT UNIT  DPCU* N/A  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 Acto 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    Lowdermilk Church & Co., L.L.P. Certified. Public Accountants  121 N. Sterling Street Phone: (828)433-1226 Fax: (828)433-1230  Morganton, North Carolina 28655  To the Honorable Mayor and Members of the Town Council Town of Sawmills Sawmills, North Carolina ended June 30, 2022. Audit Scope and Objectives  January 11,2022  We are pleased to confirm our understanding of the services we are to provide for Town of Sawmills for the year  We will audit the financial statements oft the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information, including the related disclosures, which collectively comprise the basic financial statements, ofTown of Sawmills as ofand fort the year ended June 30, 2022. Accounting standards generally accepted in the United States of America (GAAP) provide for certain required supplementary information (RSI), such as the Management's Discussion and Analysis (MD&A), to supplement Town of Sawmills's basic financial statements. Such information, although not aj part oft the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part off financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. As part ofo our engagement, we will apply certain limited procedures to Town of Sawmills's RSI in accordance with auditing standards generally accepted in the United States of America (GAAS). These limited procedures will consist ofi inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We will not express an opinion orp provide any assurance on thei information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. The following RSI is required by GAAP and will be  subjected to certain limited procedures, but will not be audited: Management's Discussion and Analysis. Budgetary Comparison Information. Liability (Asset) and Schedule of Contributions.  1) 2) 3)  Local Government Employees' Retirement System Schedule oft the Proportionate Share ofl Net Pension We have also been engaged to report on supplementary information other than RSI that accompanies Town of Sawmills's financial statements. We will subject the following supplementary information to the auditing procedures applied in our audit oft the financial statements, and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with GAAS, and we will provide an opinion on it in relation to the financial statements as a whole, in  areport combined with our auditor's report on the financial statements: 1) Schedule of Expenditures of Federal and State Awards. Combining and Individual Fund Financial Statements.  2) 3)  Budgetary Schedules. 4). Other Schedules.    The objectives ofour audit are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and issue an auditor's report that includes our opinions about whether your financial statements are: fairly presented, in all material respects, in conformity with GAAP, and report on the fairness oft the supplementary information referred to in the second paragraph when considered in relation to the financial statements as whole. Reasonable assurance is al high level ofa assurance but is not absolute assurance and therefore ini not a guarantee that an 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 ifthere is a substantial likelihood that, individual or in the aggregate, they would influence thej judgement ofa reasonable user based on the  financial statements. The objective also includes reporting on:  Internal control over financial reporting and compliance with the provisions oflaws, regulations, contracts, and award agreements, noncompliance with which could have a material effect on the financial Internal control over compliance related to major programs and an opinion (or a disclaimer of opinion) on compliance with federal statutes, regulations, and thet terms and conditions of federal awards that could have a direct and material effect on each major program in accordance with the Single. Audit Act Amendments of 1996 and Title 2 U.S. Code of1 Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements, for Federal. Awards (Uniform  statements in accordance with Government. Auditing Standards.  Guidance).  Auditor's Responsibilities for the Audit of the Financial Statements and Single Audit  We will conduct our audit in accordance with GAAS; the standards for financial audits contained in Government Auditing, Standards, issued by the Comptroller General oft the United States; the Single Audit Act Amendments of 1996; and the provisions ofthe Uniform Guidance, and will include tests of accounting records, a determination ofn major program(s) in accordançe with the Uniform Guidance, and other procedures we consider necessary to enable us to express such opinions. As part of an audit in accordance with GAAS and Government. Auditing Standards, we exercise professional judgement and maintain professional skepticism throughout the audit. We will evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management. We will evaluate the overall presentation oft the financial statements, including the disclosures, and determine whether the financial statements represent the underlying transaction and events in amannert that achieves fair presentation. We will plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether from (1) errors, (2) fraudulent financial reporting, (3) misappropriation ofa assets, or (4) violations of laws or governmental regulations that are attributable to the government or to acts by management or employees acting on behalfofthe government. Because the determination ofwaste and abuse is subjective, Government. Auditing Standards do not expect auditors to perform specific procedures to detect waste or abuse in the financial audit nor do they expect auditors Because ofthe inherent limitations ofa an audit, combined with the inherent limitations ofinternal control, and because we will not perform a detailed examination of all transactions, there is an unavoidable risk that some material misstatements or noncompliance may exist and not be detected by us, even though the audit is properly planned and performed in 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 do not have a direct and material effect on the financial statements or on major programs. However, we will inform the appropriate level ofmanagement of any material errors, any fraudulent financial reporting, or misappropriation of assets that come to our attention. We will also inform the appropriate level ofmanagement of any violations of laws or governmental regulations that come to our attention, unless clearly inconsequential, and of any material abuse that comes to our attention. We will include such matters in the reports required for a Single Audit. Our responsibility as auditors is limited to the period covered by our audit and does not extend to any later periods for Inc connection with the engagement, we may communicate with you or others via email transmission. As emails can be intercepted and read, disclosed, or otherwise used or communicated by an unintended third party, or may not be delivered to each oft the parties to whom they are directed and only to such parties, we cannot guarantee or  to provide reasonable assurance of detecting waste or abuse.  which we are not engaged as auditors.    warrant that emails from us will be properly delivered and read only by the addressee. Therefore, we specifically, disclaim, and waive any liability or responsibility whatsoever for interception or unintentional disclosure of emails transmitted by us in connection with the performance ofthis engagement. In that regard, you agree that we shall have no liability for any loss or damage to any person or entity resulting from the use ofe email transmissions, including any consequential, incidental, direct, indirect, or special damages, such as loss of revenues or anticipated profits, or disclosure or communication ofconfidential or proprietary information. We will also conclude, based on the audit evidence obtained, whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the govemment'sability to continue as a going concern for Our procedures willi include tests of documentary evidence supporting the transactions recorded in the accounts and may include tests oft the physical existence ofinventories and direct confirmation of receivables and certain other assets and liabilities by correspondence with selected individuals, funding sources, creditors, and financial institutions. We will also request written representations from your attorneys as part of the engagement, and they We have identified the following significant risk(s) of material misstatement as part of our audit planning.  reasonable period oft time.  may bill you for responding to this inquiry.  Improper revenue recognition. Management override ofcontrols.  The significant risks above were identified in the prior-period audit and we believe they are still relevant.  However, planning has not been concluded and modifications may be made.  Audit Procedures--Interna Control  We will obtain an understanding oft the government and its environment, including internal control relevant to the audit, sufficient to identify and assess the risks of material misstatement oft the financial statements, whether due to error or fraud, and to design and perform procedures responsive to those risks and obtain evidence thati is sufficient and appropriate to provide al basis for our opinions. The risk ofr not detecting a material misstatement resulting from fraud is higher than one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentation, or the override of internal control. Tests of controls may be performed to test the effectiveness of certain controls that we consider relevant to preventing and detecting errors and fraud that are material to the financial statements and to preventing and detecting misstatements resulting from illegal acts and other noncompliance matters that have a direct and material effect on the financial statements. Our tests, if performed, will be less in scope than would be necessary to render an opinion on internal control and, accordingly, no opinion will be expressed in our report on internal control issued pursuant to Government As required by the Uniform Guidance, we will perform tests of controls over compliance to evaluate the effectiveness oft the design and operation of controls that we consider relevant to preventing or detecting material noncompliance with compliance requirements applicable to each major federal award program. However, our tests will be less in scope than would be necessary to render an opinion on those controls and, accordingly, no opinion will be expressed in our report on internal control issued pursuant to the Uniform Guidance. An auditi is not designed to provide assurance on internal control or to identify significant deficiencies or material weaknesses. Accordingly, we will express no such opinion. However, during the audit, we will communicate to management and to those charged with governance internal control related matters that are required to be communicated under AICPA professional standards, Government. Auditing, Standards, and the Uniform Guidance.  Auditing Standards.  Audit rocdures-Complane  As part of obtaining reasonable assurance about whether the financial statements are free ofmaterial misstatement, we will perform tests ofTown of Sawmills's compliance with provisions ofapplicable laws, regulations, contracts, and agreements, including grant agreements. However, the objective oft those procedures will not be toj provide an opinion on overall compliance, and we will not express such an opinion in our report on  compliance issued pursuant to Government. Auditing, Standards.    The Uniform Guidance requires that we also plan and perform the audit to obtain reasonable assurance about whether the auditee has complied with applicable federal statutes, regulations, and the terms and conditions of federal awards applicable to major programs. Our procedures will consist oft tests oftransactions and other applicable procedures described in the OMB Compliance Supplement for the types of compliance requirements that could have a direct and material effect on each ofTown of Sawmills's major programs. For federal programs that are included int the Compliance Supplement, our compliance and internal control procedures will relate to the compliance requirements that the Compliance Supplement identifies as beings subject to audit. The purpose of these procedures will bet to express an opinion on' Town of Sawmills's compliançe with requirements applicable to each of its major programs in our report on compliance issued pursuant to the Uniform Guidance.  Other Services  We will also assist in preparing the financial statements, the Schedule of Expenditures of Federal and State Awards, and the related notes ofTown of Sawmills in conformity with accounting principles generally accepted in the United States of America and the Uniform Guidance based on information provided by you. We will also prepare the following based on information provided by you: Depreciation schedules, AFIR, Data Collection Form and Unit Datal Input Worksheet. These nonaudit services do not constitute an audit under Govermment Auditing Standards, and such services will not be conducted in accordance with Government. Auditing Standards. We will perform the services in accordance with applicable professional standards. The other services are limited tot the financial statements, the Schedule ofl Expenditures of Federal and State. Awards, and the related notes services previously defined. We, in our sole judgement, reserve the right to refuse toj perform any procedure or  take any action that could be construed as assuming management responsibilities. Responsiblities of Management for the Financial Statements and Single. Audit  Our audit will be conducted on the basis that you acknowledge and understand your responsibility for( (1) designing, implementing, establishing and maintaining effective internal controls relevant to the preparation and fair presentation off financial statements that are free from material misstatement, whether due to fraud or error, including internal controls over federal and State awards, and for evaluating and monitoring ongoing activities to help ensure that appropriate goals and objectives are met; (2) following laws and regulations; (3) ensuring that there is reasonable assurance that government programs are administered in compliance with compliance requirements; and (4) ensuring that management and financial information is reliable and properly reported. Management is also responsible fori 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, the Schedule of Expenditures of Federal and State. Awards, and all accompanying information in conformity with accounting principles generally accepted in the United States of America; and for compliance with applicable laws and regulations (including federal statutes) and the provisions of contracts and grant agreements (including award agreements). Your responsibilities also include identifying significant contractor relationships in which the contractor has responsibility for program compliance and for the accuracy and completeness of that information. You are also responsible for making drafts of financial statements, the Schedule ofl Federal and State Awards, all financial records and related information available to us and for the accuracy and completeness ofthat information (including information from outside of the general and subsidiary ledger). You are also responsible for providing us with (1) access to all information of which you are aware that is relevant to the preparation and fair presentation ofthe financial statements, such as records, documentation, identification ofall related parties and all related-party relationships and transactions and other matters; (2) access to personnel, accounts, books, records, supporting documentation, and other information as needed to perform an audit under the Uniform Guidance; (3) additional information that we may request for the purpose oft the audit; and (4) unrestricted access to persons within the government from whom we determine it necessary to obtain audit evidence. At the conclusion of our audit, we will require certain written representations from you about the financial statements; the Schedule of Expenditures of Federal and State Awards; federal award programs; compliance with laws, You are responsible for the design and implementation of programs and controls to prevent and detect fraud and fori informing us about all known or suspected fraud affecting the government involving (1) management, (2) employees who have significant roles in internal control, and (3) others where fraud could have a material effect on thei financial statements. Your responsibilities include informing us of your knowledge of any allegations of  regulations, contracts, and grant agreements; and related matters.    fraud or suspected fraud affecting the government received in communications from employees, former employees, grantors, regulators, or others. In addition, you are responsible for identifying and ensuring that the government complies with applicable laws, regulations, contracts, agreements, and grants. You are also responsible for taking timely and appropriate steps to remedy fraud and noncompliance with provisions ofl laws, regulations, contracts and grant agreements that we report. Additionally, as required by the Uniform Guidance, it isr management's responsibility to evaluate and monitor noncompliance with federal statutes, regulations, and the terms and conditions of federal awards; take prompt action when instances ofnoncompliance: are identified including noncompliance identified in audit findings; promptly follow up and take corrective action on reported audit findings; and prepare a summary schedule of prior audit findings and a separate corrective action plan. You are responsible for identifying all federal and State awards received and understanding and complying with the compliance requirements and for the preparation of the Schedule of! Expenditures ofl Federal and State Awards (including notes and noncash assistance received, and COVID-19 related concepts, such as lost revenues, if applicable) in conformity with the Uniform Guidance. You agree to include our report on the Schedule of Expenditures of Federal and State Awards in any document that contains, and indicates that we have reported on, the Schedule of] Expenditures of Federal and State Awards. You also agree to include the audited financial statements with any presentation of the Schedule of Expenditures of Federal and State Awards that includes our report thereon OR make the audited financial statements readily available to intended users oft the Schedule of Expenditures of] Federal and State Awards no later than the date the Schedule of Expenditures of] Federal and State Awards isi issued with our report thereon. Your responsibilities include acknowledging to us in the written representation letter that (1): you are responsible for presentation ofthe Schedule of Expenditures of] Federal and State Awards in accordance with the Uniform Guidance; (2): you believe the Schedule of Expenditures of Federal and State Awards, including its form and content, is stated fairly in accordance with the Uniform Guidance; (3) the methods of measurement or presentation! have not changed from those used int the prior period (or, ift they have changed, the reasons for such changes); and (4); you have disclosed to us any significant assumptions or interpretations underlying the measurement or presentation of the Schedule of Expenditures of Federal and State You are also responsible for the preparation of the other supplementary information, which we have been engaged to report on, in conformity with U.S. generally accepted accounting principles. You agree to include our report on1 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. Your responsibilities include acknowledging to us in the written representation letter that (1)you are responsible for presentation ofthe supplementary information in accordance with GAAP; (2); you believe the supplementary information, including its form and content, is fairly presented in accordance with GAAP;(3) the methods ofi 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 the measurement or presentation of 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 oft this letter. This responsibility includes relaying to us corrective actions taken to address significant findings and recommendations resulting from those audits, attestation engagements, performance audits, or studies. You are also responsible for providing management's views on our current findings, conclusions, and recommendations, as well as your planned corrective actions fort the report, and With regard to publishing the financial statements on your website, you understand that websites are a means of distributing information and, therefore, we are not required to read the information contained in those sites or to You agree to assume all management responsibilities for the financial statements, the Schedule of Expenditures of Federal and State Awards, and the related notes, and any other nonaudit services we provide. You willl be required to acknowledge in the management representation letter our assistance with preparation of the financial statements, the Schedule of) Expenditures of Federal and State Awards and the related notes, and that you have  Awards.  the supplementary information.  for the timing and format for providing that information.  consider the consistency ofother information on the website with the original document.    reviewed and approved the financial statements, the Schedule of Expenditures of Federal and State Awards, and the related notes prior to their issuance and have accepted responsibility for them. Further, you agree to oversee the nonaudit services by designating an individual, preferably from senior management, with suitable skill, knowledge, or experience; evaluate the adequacy and results oft those services; and accept responsibility for them. We understand that your employees will prepare all cash, accounts receivable, or other confirmations we request You may request that we perform additional services not addressed in this engagement letter. Ifthis occurs, we will communicate with you regarding the scope oft the additional services and the estimated fees. We also may issue a separate engagement letter covering the additional services. In the absence of any other written communication from us documenting such additional services, our services will continue to be governed by the At the conclusion of the engagement, we will complete the appropriate sections of the Data Collection Form that summarizes our audit findings. Iti is management's responsibility to electronically submit the reporting package (including thei financial statements, the Schedule of! Expenditures ofl Federal and State Awards, the Summary Schedule of Prior Audit Findings, the auditors' reports, and corrective action plan) along with the Data Collection Form to the federal audit clearinghouse. We will coordinate with you the electronic submission and certification. The Data Collection Form and the reporting package must be submitted within the earlier of30 calendar days We will provide copies of our reports to the Town; however, management is responsible for distribution ofthe reports and the financial statements. Unless restricted by law or regulation, or containing privileged and confidential information, copies of our reports are tol be made available for public inspection. The audit documentation for this engagement is the property ofLowdermilk Church & Co., L.L.P. and constitutes confidential information. However, subject to applicable laws and regulations, audit documentation and appropriate individuals will be made available upon request, and in at timely manner, to the Local Government Commission or its designee, a federal agency providing direct ori indirect funding, or the U.S. Government Accountability Office for purposes ofac quality review of the audit, to resolve audit findings, or to carry out oversight responsibilities. We will notify you ofany such request. Ifrequested, access to such audit documentation willl be provided under the supervision ofLowdermilk Church & Co., L.L.P. personnel. Furthermore, upon request, we may provide copies ofselected audit documentation to the aforementioned parties. These parties may intend, or decide, to distribute the copies or information contained therein to others, including 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 byt the Local Government Commission if we are aware that a federal awarding agency, pass-through entity, or auditee is contesting an audit finding, we will contact the party(ies) James E.) Lowdermilk is the engagement partner and is responsible for supervising the engagement and signing To ensure that Lowdermilk Church & Co., L.L.P.'s independence is not impaired under the AICPA Code of Professional Conduct, you agree to inform the engagement partner before entering into any substantive Our audit engagement ends on delivery ofour audit report. Any follow-up services that might be required willl be as separate, new engagement. The terms and conditions oft that new engagement will be governed by ai new,  Engagement Administration, Fees, and Other and willl locate any documents selected by us for testing.  terms ofthis engagement letter.  after receipt oft the auditors' reports or nine months after the end of the audit period.  other governmental agencies.  contesting the audit finding for guidance prior to destroying the audit documentation.  the reports or authorizing another individual to sign them. employment discussions with any ofour personnel. specific engagement letter for that service.    Our fee for these services willl be at our standard hourly rates, plus out-of-pocket costs (such as report reproduction, word processing, postage, travel, copies, telephone, etc.) except that we agree that our gross fee, including expenses, will not exceed $12,180. 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 will be rendered each month as work progresses and are payable on presentation. In accordance with our firm policies, work may be suspended ify your account becomes 30 days or more overdue and 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 oftermination, eveni if wel have not completed our report(s). You will be obligated to compensate us for all time expended and to reimburse us for all out-of-pocket costs through the date oftermination. The above fee is based on anticipated cooperation from your personnel and the assumption that unexpected circumstances will not be encountered during the engagement. Ifsignificant additional time is necessary, we willl keep you informed of any problems we encounter and our fees will be adjusted accordingly. We are required to inform you that we charge interest at a rate of 18% per annum on all We will issue written reports upon completion of our Single Audit. Our reports will be addressed to the Town Council ofTown of Sawmills. Circumstances may arise in which our report may differ from its expected form and content based on the results of our audit. Depending on the nature oft these circumstances, it may be necessary for us to modify our opinions, add a separate section, or add emphasis-of-matter: or other-matter paragraph to our report, or ifr necessary, withdraw from this engagement. If our opinions are other than unmodified, we will discuss the reasons with you 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 we may withdraw from Ifci circumstances occur related to the condition of your records, the availability ofs sufficient, appropriate audit evidence, or the existence ofas significant risk of material misstatement oft the financial statements caused by error, fraudulent financial reporting, or misappropriation of assets which in our professional judgement prevent us from completing the audit or forming an opinion on the financial statements, we retain the right to take any course ofaction permitted by professional standards, including declining to express an opinion or issue reports, or The Government Auditing Standards report on internal control over financial reporting and on compliance and other matters, will: states that (1) the purpose oft the reporti is solely to describe the scope oft testing ofi internal control and compliance, and the results ofthat testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance, and (2) the report is an integral part of an audit performed in accordance with Government. Auditing. Standards in considering the entity's internal control and compliance. The Uniform Guidance report on internal control over compliance will state that the purpose oft the report on internal control over compliance is solely to describe the: scope oft testing ofinternal control over compliance and the results oft that testing based on the requirements ofthe Uniform Guidance. Both reports will state that the report is You have requested that we provide you a copy of our most recent external peer review report and any subsequent reports received during the contract period. Accordingly, our 2021 peer review report accompanies this letter. We appreciate the opportunity to be ofs service to Town of Sawmills and believe this letter accurately summarizes the significant terms of our engagement. Ifyoul have any questions, please let us know. Ifyou agree with the terms of our engagement as described in this letter, please sign the enclosed copy and return it to us.  invoices over. 30 days old.  this engagement  withdrawing from the engagement.  nots suitable: for any other purpose.    Veryt trulys yours, James E. Lowdermilk Ba Partner  Yl  RESPONSE:  This letter correctly sets forth the understanding ofTown of Sawmills.  Management signature: Title: Date:  Governance signature: Title: Date:    brc Bernard Robinson & Company, L.L.P.  Report on the) Firm's System ofQuality Control  November 2, 2021  To the Partners ofLowdermilk, Church & Co., L.L.P. and the) Peer Review Committee oft the Coastal Peer Review, Inc.  We have reviewed the system of quality control for the accounting and auditing practice ofLowdermilk, Church & Co., L.L.P. (the firm) in effect for the, year ended) May 31, 2021. Our peer review was conducted ina accordance with the Standards for Performing and Reporting on Peer Reviews established by the Peer Review Board oft the A summary oft the nature, objectives, scope, limitations of, and the procedures performed in a System Review as described in the Standards may be found at wwwarpaogpnummay. The summary alsoi includes an explanation ofhow engagements identified asi not performed or reported: in conformity with applicable] professional standards, if The firm is responsible for designing a system of quality control and complying with it to provide the firm with reasonable assurance ofperforming andi reportingi inc conformity with applicable professional standardsi in all material respects. The firm is also responsible for evaluating actions to promptly remediate engagements deemed as not performed or reportedi in conformity withj professional standards, when appropriate, and for remediating weaknesses Our responsibility ist to express an opinion on the design oft the system of quality control andi the firm'so compliance  American Institute of Certified Public. Accountants (Standards).  any, are evaluated by ap peer reviewer to determine apeeri review rating.  Firm'sl Responsibility  ini its system of quality control, ifa any. Peer) Reviewer's Responsibility therewith based on our review. Required Selections and Considerations including a compliance audit under the Single Audit. Act. in determining thei nature and extent of our procedures.  Engagements selected for review included an engagement performed under Government Auditing Standards, Asaparto ofour peer review, we consideredi Ireviews byr regulatory entities as communicated by thei firm, ifapplicable,  Opinion  In our opinion, the system of quality control for the accounting and auditing practice ofLowdermilk, Church & Co.L.L.P. ine effect fort the year ended May 31, 2021, has been suitably designed and complied with toj provide the firm with reasonable assurance ofp performing and reportingi inc conformity with applicable professional standards in all material respects. Firms can: receive ar rating of pass, pass with deficiencyfies) orf fail. Lowdermilk, Church &  Co.,L.L.P. has received aj peer review rating of pass. Bunad Roinsmi Conpary &E BERNARD: ROBINSON & COMPANY,LLP. 1501 Highwoods Blvd., Ste. 300 (27410) P.O. Box 19608 I Greensboro, NC: 27419 P: 336-294-4494 e F: 336-294-4495 brccpa.com    AGENDA ITEM 10A  MEMO DATE: SUBJECT:  February 8, 2022 Updates: Code Enforcement Monthly Report  Discussion:  The attached report shows the progress that Planner Dustin Millsaps continues to make  throughout the town. Recommendation: No Council action required.