AGENDA Sawmills Town Hall Tuesday, December 15,2020  Regular Meeting oft the Sawmills Town Council  6:00 pm  1. Call To Order 2. Invocation 3. Pledge of Allegiance 4. Adopt Agenda 5. Approve Meeting Minutes 6. Public Comment 7. Recognitions: A. Recycle Rewards 8. Financial Matters:  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. November 17,2020 Regular Meeting Minutes  A. FY2020-2021 Audit Contract B. Adopt Budget Workshop Schedule  9. Planning Matters: 10. Public Comment 11. Updates:  A. Re-appointment Planning Board/BOA Members  A. Code Enforcement Report B. Town Manager Updates C.Council Comment  12. Closed Session: N.CGS.153I8.II0X)  13. Adjourn    Page 1of6  TUESDAY, NOVEMBER 17, 2020  TOWN OF SAWMILLS REGULAR COUNCIL MEETING  6:00 PM  COUNCIL PRESENT Mayor Johnnie Greene Clay Wilson Joe Wesson Rebecca Johnson Keith Warren via Zoom COUNCIL ABSENT Melissa Curtis 6:00pm.  STAFF PRESENT Chase Winebarger Julie A Good  CALL TO ORDER: Mayor Johnnie Greene called the meeting to order at approximately Mayor Johnnie Greene stated that Councilman Keith Warren was out of town due to work Rebecca Johnson made a motion, and Joe Wesson seconded, to allow Councilman Keith Warren to participate in the November 17, 2020 meeting remotely via Zoom. All were in  and wanted toj participate in the meeting remotely via Zoom.  favor. Keith Warren joined the meeting at approximately 6:16pm.  INVOCATION: JeffLambert 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 November 17, Joe Wesson made ai motion, and Rebecca. Johnson seconded, to adopt the amended' November  2020 Agenda.  17,2020 Agenda. All were in favor.  APPROVE OCTOBER 20, 2020 REGULAR MEETING MINUTES: Mayor Johnnie Greene asked for a motion to approve the October 20, 2020 regular meeting minutes. Clay Wilson made ai motion, and Rebecca Johnson seconded, to approve the October 20, 2020  regular meeting minutes. All were in favor.    November 17,2020 Page 2of6  PUBLIC COMMENT: Mayor Johnnie Greene asked if anyone had any questions or Jo Ann Miller thanked Council for the donation to the American Legion Post 392.  comments at this time.  RECOGNITIONS:  RECYCLE REWARDS WINNER: Mayor Johnnie Greene announced Greg Massagee, as thel November Recycle Rewards winner. A credit ofthirty-two dollars ($32.00) will be added  to the current sanitation bill. No Council action was required.  FINANCIAL MATTERS:  CALDWELL COUNCIL ON ADOLESCENT HEALTH DONATION REQUEST: Mayor Johnnie Greene stated that the Caldwell Council on Adolescent Health had requested RebeccaJ Johnson made ai motion, and Clay Wilson seconded, to give a donation in the amount oftwol hundred dollars ($200.00) to the Caldwell Council on Adolescent Health. All were in  adonation in the amount of one hundred dollars ($100.00).  favor.  CALDWELL COUNTY SCHOOLS DONATION REQUEST: Mayor Johnnie Greene stated that the Caldwell County Schools had requested a donation in the amount of fourteen Joe Wesson made ai motion, and Keith Warren seconded, to give a donation in the amount of fourteen thousand dollars ($14,000.00) to the Caldwell County Schools. All were in favor. FY 2019-2020 AUDIT PRESENTATION: James Lowdermilk and Rick Hammer, with Lowdermilk, Church & Co., L.L.P., presented the Towns FY 2019-2020 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.  thousand dollars ($14,000.00).  No Council action was required.  AMI PROJECT CLOSEOUT: Mayor Johnnie Greene stated that during the October 15, 2019 regularly scheduled council meeting, the Council approved a Capital Project Budget Ordinance Water Meter Replacement Project. On October 8, 2020, an Endpoint Acceptance    November 17,2020 Page 3 of6  Plan was signed showing all AMI meters had been installed and all work done on the Water Meter Replacement: Project.. AsofNovember 1,2020, all invoices had' been received and final Clay Wilson made a motion, and Joe Wesson seconded, to close out the Capital Project  payment had been sent.  Budget Ordinance Water Meter Replacement Project. All were in favor.  BUDGET AMENDMENT: Mayor Johnnie Greene stated that the Capital Project Budget Ordinance Water Meter Replacement Project has been completed and closed. All invoices, for expenses have been paid. As a result, the cash on hand of one hundred ninety-seven thousand fifty-eight dollars and two cent dollars ($197,058.02) fori the CIP-AMI Project Fund Joe Wesson made a motion, and Clay Wilson seconded, to approve a budget amendment (as set forth in the attached Amendment Ordinance) transferring the amount of one hundred ninety-seven thousand fifty-eight dollars and two cent dollars ($197,058.02) from the CIP-  needs tol be transferred back to the Utility Fund.  AMI Project Fund to the Utility Fund. 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. UPDATES:  OCTOBER CODE ENFORCEMENT REPORT: Town Planner Dustin Millsaps stated  that there are eight (8) code enforcement cases open:  Carolyn Bray/Robyn Brittian, owner 2570 Baker Circle. Abandoned Mobile Home/Garbage and Rubbish. Town Planner Dustin Millsaps stated that he is working with Town Attorney Terry Taylor to abate the property. Town Planner Dustin Millsaps also stated that he will treat this as a Junk and Debris and not minimum housing. Ifso, the Town can proceed to abate after thirty (30) days of notice. Town Planner Dustin Millsaps stated that he got a quote that will demo entire trailer and haul off all debris including our equipment, labor and fees. Town Planner Dustin Millsaps stated that the quote is four thousand one hundred dollars ($4,100.00). Town Planner Dustin Millsaps stated that he rode by the property and it is still in the same condition 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  and would like to discuss demolition;    November 17, 2020 Page 4of6  Millsaps stated that staffwill 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; Dale E: and Debra Miller, 4434. Jess Dr. Garbage and Rubbish/Property Maintenance. Town Planner Dustin Millsaps stated that a complaint was received on January 28, 2020. Town Planner Dustin Millsaps stated that the complaint addressed two (2) separate properties and possible violations. A NOV letter was sent on February 13, 2020, with a deadline of March 4, 2020: for the Miller property. Town Planner Dustin Millsaps stated that the Miller property isi in violation for having high grass/vegetation and junk and garbage located around the property. Town Planner Dustin Millsaps stated another complaint was received on May 7, 2020 and a final letter was sent on May 13, 2020, with a deadline of May 31,2020. Town Planner Dustin Millsaps stated that on June 1, 2020, staff spoke with Mrs. Miller, who has a medical condition, and she asked for an extension and stated that she is working on getting the property cleaned up. Town Planner Dustin Millsaps stated that on September 10, 2020, ai new tenant is cleaning up the property and is 34 of the way done. Town Planner Dustin Millsaps stated that a final citation was issued on November 2, 2020; Denise Dotson/William S Annas, II, 4095 Gatewood Dr. Abandoned Mobile Home/Minimum Housing. Town Planner Dustin Millsaps stated that a complaint was received on March 5, 2020, and a regular NOV letter and a certified NOV letter was sent on March 5, 2020, with a deadline of March 23, 2020. Town Planner Dustin Millsaps stated that the mobile home has been sprayed painted and has an apparent tenant, however, the water meter has been pulled from the property. Property was cleaned up. However, Mr. Annas informed Town Planner Dustin Millsaps that a new tenant has moved in the mobile home. Town Planner Dustin Millsaps stated that a second NOV letter was sent on May 15, 2020 with a deadline of June 15, 2020 for additional garbage on property. Town Planner Dustin Millsaps stated that staff will investigate and work with Town Attorney for possible courses of abatement. Town Planner Dustin Millsaps stated that he went by the property on September 10, 2020 and all garbage has been picked up, however, the house has multiple windows smashed out which is now a minimum housing violation. Town Planner Dustin Millsaps stated that he spoke with property owner and hej plans on removing the trailer Steve and Mary Hand, 2511 Baker Cir. Garbage and Rubbish/Property Maintenance. Town Planner) Dustin Millsaps stated that a complaint was received on April 20, 2020. Town Planner Dustin Millsaps stated that the complaint states that the property is overgrown and consist of junk vehicles. Town Planner Dustin Millsaps stated that a regular letter was sent on April 23, 2020, with a deadline of May 15, 2020. Town Planner Dustin Millsaps stated that staffwilli investigate further. Town Planner Dustin  onl November 5, 2020;    November 17, 2020 Page 5of6  Millsaps stated that he had contacted the property owner and the junk has been removed, but the junk vehicle still remains. Town Planner Dustin Millsaps stated he Shirley Maxine Bentley, 2265 OJLn. Junk Vehicle. Town Planner Dustin Millsaps stated that the property does have a junk vehicle on it and a NOV letter was sent on October 8, 2020. Town Planner Dustin Millsaps stated that the property owner has cleaned up the property and removed the junked vehicle. Town Planner Dustin Millsaps stated that property owner has until November 25, 2020 to put underpinning Loreane White and Charles White, 4698 Rockview PI. Garbage and Rubbish/Property Maintenance. Town Planner Dustin Millsaps stated that a NOV letter was sent on October 8, 2020. Town Planner Dustin Millsaps stated that the grass looked like it Jessie Kristen Smith, 4215 Trojan Ln. Rubbish grass. Town Planner Dustin Millsaps stated that a NOV letter was sent out on September 29, 2020, and grass was mowed by October 8, 2020. Town Planner Dustin Millsaps stated that there is still junk in the  will keep a check on this;  on1 the property;  hadn't been cut in years;  yard that still needs tol be cleaned.  No Council action was required.  TOWN MANAGER UPDATES:  Town Manager Chase Winebarger stated that the utility bills should now be leveled out after the 2.5% increase in July, billing cycle consolidation during the past two months, and the change in bills because of accuracy of the new meters. Town Manager Chase Winebarger stated that the remodel ofthe front counter at Town Hall is complete and the doors to Town Hall are now open. Town Manager Chase Winebarger stated that the installation of the equipment at the Parks and Farmer'sl Market should start soon. Town Manger Chase Winebargerstated that the date ofinstallation has been pushed back because of weather. Town Manager Chase Winebarger stated that there have been a lot more interest in our Parks from rentals to usage. Town Manager Chase Winebarger stated that there Town Manager Chase Winebarger stated that he is working on the job description for the Parks and Rec Director job since Benny Townsend is retiring in December. Town Manager Chase Winebarger stated that he intends to hire someone with a egree/background in Rec management. Town Manager Chase Winebarger also stated that he intends to increase the programs offered in the Town to more than baseball. Town Manager Chase Winebarger stated that he wants to have the position Town Manager Chase Winebarger stated that the Bicycle/Pedestrian Steering Committee has met and there will be a survey going out this month for citizens to  have been someone int the parks almost daily.  filled by January.    November 17,2020 Page 6of6  complete sO they can have input in the process. The survey will be on the Town's Facebook page, the Town's Website and available at Town Hall. Town Manager Chase Winebarger stated that he will do a CodeRed to make citizens aware of the survey. Town Manager Chase Winebarger stated that the steering committee intends to meet in December to continue to plan and discuss the results oft the survey. Town Manager Chase Winebarger stated that all Town events have been canceled for the remaining oft the year. Town Manager Chase Winebarger stated that Public Works has been busy decorating the Town for the Christmas holiday and will be turning on the Christmas lights on Thanksgiving Eve this year to compensate for not having am actual tree lighting event. Town Manager Chase Winebarger stated that the power install is going to occur in the coming week depending upon weather and that project now includes replacing the existing underground electrical wiring. If this occurs before the lights are turned on, then the lights at the Farmer's Market field, which includes the Town Christmas tree, will not be on at the same time as the lights on the Town Manager Chase Winebarger stated that he was able to renegotiate the stormwater mapping contract and the amount has now been decreased. Town Manager Chase Winebarger stated that the Town will be participating in Sister City for approximately five hundred dollars $500.00)yearly we will have a sister city  poles and at" Town Hall.  and our sister city will be in Germany.  COUNCIL COMMENTS:  Rebecca Johnson wanted to thank everyone for coming to the meeting.  Joe Wesson wanted to thank everyone for coming to the meeting and wanted to commend Town Manager Chase Winebarger for keeping the Town going during the COVID-19  pandemic.  Mayor Johnnie Greene wanted to thank everyone for coming to the meeting. COUNCIL ADJOURN: Mayor Johnnie Greene asked for ai motion to adjourn. Clay Wilson made a motion, and Rebecca Johnson seconded, to adjourn the meeting. All  were in favor.  The meeting was adjourned at approximately 6:41pm.  Johnnie Greene, Mayor  Julie A. Good, Town Clerk    AGENDA ITEM 7A  MEMO DATE: SUBJECT:  December 15, 2020 Recognition: Recycle Rewards Program  Discussion:  The Town of Sawmills would like to congratulate Kimala Smith on winning the Recycle Rewards Program for the month of] December. Mayor 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:  December 15, 2020 Financial Matters: Approve Auditors Contract for FY2020-2021  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 $11,400.00 (eleven thousand four hundred dollars), This amount of $11,600.00 (eleven thousand six hundred dollars) includes the following:  will cover the period ofJuly 1, 2020 to. June 30, 2021.  Audit:  $7,540.00 $4,060.00  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: 2020 to June 30, 2021.  Staff recommends Council approve a contract with Lowdermilk, Church & Co., L.L.P. in the amount of $11,600.00 (eleven thousand six hundred dollars) and covering the period ofJ July 1,    LGC-205 The Governing Board Town Council of Primary Government Unit (ord charter holder) Town of Sawmills and Discretely Presented Component Unit (DPCU)( (ifa applicable) N/A and Auditor Name Lowdermilk Church & Co., LLP Auditor Address Hereinafter referred! to as Auditor for Fiscal Year Ending 06/30/21 hereby agree as follows:  CONTRACT TO AUDIT ACCOUNTS  Rev. 11/2020  Primary Government Unit, together with DPCU (ifapplicable), hereinafier referred to as Governmental Unit(s)  121 North Sterling Street, Morganton, NC 28655  Audit Report Due Date 10/31/21 Must bey within four months OfFYE  1. The Auditor shall audit all statements and disclosures required standards (GAAS) and additional required legal statements and disclosures by U.S. of generally all funds accepted auditing Governmental Unit(s). The non-major combining, andi individual fund statements and schedules and/or divisions of the subjected to the auditing procedures applied in the audit of the basic financial be rendered in relation to (as applicable) the governmental activities, the business- statements and an opinion shall aggregate DPCUS, each major governmental and enterprise fund, and the information (non-major government and enterprise funds, the internal service aggregate fund type, remaining and the fund 2. Atar minimum, the Auditor shall conduct his/her audit and render his/her GAAS. The Auditor shall perform the audit in accordance with Government. report Standards in the State Single Audit Implementation. Act, as codified in G.S. 159-34. f required Auditing Administration Requirements, Cost Principles, and Audit Requirements for Federal by OMB Uniform and the State Single. Audit Implementation. Act, the Auditor shall perform a associated audit documentation may be subject to review by Federal and State Single Federal and State laws, including thes staffs of the Office of State Auditor jointly agree, in advance of the execution of this contract, which parlyi is  shall be  type activities, the  types).  fiduciary fund accordance with ifr required by Audit. Awards (Uniform Guidance) This audit and all agencies and the in accordance with  Commission (LGC). Ift the audit requires at federal single audit performed (OSA) under the Local Government Subpart F of the Uniform Guidance ($200.501), itisr recommended that the Auditor and requirements found in and the accompanying data collection form to the Federal Audit Clearinghouse responsible for submission of the audit Ifti the audit and Auditor communication are found in this review to be substandard, results may bet forwarded to thel North Carolina State Board of CPA Examiners State the  Governmental Unit(s) as required under the Uniform  Guidance ($200.512).  of the review  (NC  Board).  Page 1    LGC-205  CONTRACT TO AUDIT ACCOUNTS  Rev. 11/2020  3. Ifane entity is determined to be a component of another 4. This contract contemplates an unmodified opinion  standards, the entity's auditor shall make a good faith effort to government in as defined by the group audit the group auditor in accordance with AU-6 $600.41-5600.42. comply at timely manner with the requests of the audit, the Auditor determines that ity will not be possible being to render Ifduring the process of conducting statements of the unit, the Auditor shall contact the LGC Staff to discuss an unmodified opinion on the financial conclusion as soon as is practical and before the final report is issued. The the audit circumstances leading to that circumstances. Anyl limitations or restrictions in scope which would lead to by the Auditor to be necessary in the  rendered.  accounting records and such other auditing procedures as are considered 5. Ift this audit engagement is subject tot the standards for audit as defined in Standards, 2018 revision, issued by the Comptroller General of the United States, Govemment. then recent peer review report to the Governmental Auditing Standards. The Auditor agrees top provide a copy of the most audit contract. Subsequent submissions of the Unit(s) and the Secretary of the LGC prior to the execution of an receipt of an updated peer review report. Ift the report audit firm are required only upon report expiration or upon auditor's peer review analysis that may result in additional Unit(s) without first contacting the Secretary of the LGC fora a  shall include such tests of the a qualification should be fully  explained in an attachment to this contract.  Auditing by accepting this  engagement, the Auditor warrants that he/she has met the education as specified in Govemment  requirements for a peer review and continuing received a peer review rating other than pass, the  Auditor shall not contract with the Governmental  contractual requirements.  Ift the audit engagement Is not subject to Government. Accounting Standards ori if financial  preparedi in accordance with U.S. generally accepted accounting disclosures required by GAAP, the Auditor shall provide  statements are not  principles (GAAP) and fail toi include all an explanation as to whyi in an attachment to this  contract ori in an: amendment.  6. Itis agreed that time is of the essence ini this contract. Alla audits are audit submitted to LGC Staff within four months of fiscal end. 7. Iti is agreed that GAAS include a review oft the Governmental Unit's applicable thereto; that the Auditor shall make av written report, which report of audit, to the Governing Board setting forth his/her  to be performed and the report of  date or the audit fee, an amended contract along with a written year Ifit becomes necessary to amend this due and accounting as same relate to accountability oft funds and adherence tol (Units') systems of internal control improvement. That written report shall include all matters defined findings, together with his recommendations for weaknesses" in AU-C 265 of the AICPA Professional Standards as' "significant deficiencies and material the Secretary of the LGC. This includes annual or special audits, audit-related work require the approval of audit, financial statement preparation, anyf finance-related prepare Governmental Unit's (Units'), records for State of North Carolina. Approval is not required on contracts investigations, and invoices or any other audit- related work int the thei invoice has been approved byt the Secretary of the LGC. (This also be paid by the Governmental Unit(s) until 159-34 and 115C-447] Alll invoices for Audit work shall be submitted PDF includes any progress billings.)[G.S.  the Secretary of the LGC for approval.  explanation oft the delay shall be submitted to  budget and law requirements may or may not be a part of the written (Clarified). The Auditor shall file a copy of that the agreed upon procedures related toi internal  report with the Secretary of the LGC.  8. AIlI local government and public authority contracts for audit or controls, bookkeeping or other assistance necessary to similar services of a non-auditing nature.  for system improvements and  9. Invoices for services rendered under these contracts shall not  for approval. Thei invoice marked 'approved' 'with  in format to the Secretary of the LGC  approval date shall be returned to  Page 2    LGC-205  CONTRACT TO AUDIT ACCOUNTS  Rev. 11/2020  the Auditor to present to the Governmental Unit(s) for payment. This  contracts for audits of hospitals.  paragraph is not applicable to  10. In consideration of the satisfactory performance of the provisions of this contract, the Governmental includes any costs the Auditor may incur from work paper or peer reviews or any required, other thei fee, which as required under the Federal and State Single Audit Acts. This does not include agencies fees other organizations) reviews that may be required by the NC Association of CPAS (NCACPA) Peer Review for Committee any pre-issuance  Unit(s) shall pay to the Auditor, upon approval by the Secretary oft the LGC if program required byt third parties (federal and state grantor and oversight  or quality assurance  State Board of CPAI Examiners (see Item 13). either in the notes to the audited financial statements or as a compliance with the revenue bond rate covenant.. simultaneously with the Governmental  or NC  11. Ifthe Governmental Unit(s) has/have outstanding revenue bonds, the Auditor  shall submit to LGC Staff,  separate report, a calculation demonstrating  Additionally, the Auditor shall submit tol LGC Staff  Unit's (Units') audited financial statements  statements or additional reports required by the authorizing bond documents, any other bond compliance 12. After completing the audit, the Auditor shall submit to the Governing Board a written report shalli include, but not be limited to, thet following information: (a) (b) thet financial statements and notes of the Governmental Unit(s) and Management's all of its disclosure under the law, and (d) the Auditor's opinion on the material  bond documents.  unless otherwise specified in the  report of audit. This Discussion and Analysis, The Unit(s) or required fort full  accordance with GAAP, (c) supplementary information requested by the Govermental component units prepared in required number of copies of the report of audit to the Governing Board presented. Auditor shall furnish the 13. If the audit firm is required by the NC State Board, the NCACPA Peer Review Secretary of thel LGC to have a pre-issuance review of its audit work, there shall be Committee, or the engagement letter indicating the pre-issuance review requirement. There also shall a statement in the Governmental Unit(s) shall not be billed for the pre-issuance review. The performed prior to the completed audit being submitted to LGC Staff. The pre-issuance review shall be accompany the audit report upon submission to LGC Staff. 14. The Auditor shall submit the report of audit in PDF format to LGC Staff. For audits of hospitals, the audit report should be submitted when (or prior to) rendered. The report of audit, as filed with the Secretary oft the submitting thet final invoice for services inspection, review and copy in the offices of the LGC these reports shall bes sent to the Secretary of the LGC by any interested with parties. Anys subsequent revisions to the Department of State Treasurer website). These audited along an Audit Report Reissued Form (available on may be used int the preparation of official statements for debt financial statements, excluding the Auditors' opinion, secondary market disclosure requirements oft the Securities offerings by municipal bond rating services to fulfill corrections need to ber made to the Governmental requiring Unit's consent of the Auditor. If the LGC Staff determines that provided within three business days of notification unless (Units') another financial statements, those corrections shall be  uponcompletion.  be a statement that the pre-issuance review report shall  units other than  LGC, becomes ar matter of public record for  purposes of the Governmental Unit(s) without  and Exchange Commission andi for other lawful deadlinei is agreed to by! LGC Staff.  15. Should circumstances disclosed by the audit call for a more detailed necessary under ordinary circumstances, the Auditor shall inform the for such additional investigation and the additional  investigation by the Auditor than Governing Board in writing of the need  compensation required therefore. Upon approval bythe  Page 3    LGC-205  CONTRACTTO AUDIT AGCOUNTS  Rev. 11/2020  Secretary of the LGC, this contract may! be modified or amended or both as may be agreed upon by the Governing Board 16. Ifan approved contract needs to be modified or amended for charter schools or hospitals). This amended contract shall be  to include the increased time, compensation, (pre-audit requirement does not apply to contract. Its shall then be submitted tot the Secretary of  and the Auditor.  writing and pre-audited ift the change includes a changei in audit fee any reason, the change shall be made in the change, signed and dated by all original parties to the completed in full, including a written explanation of  the LGC for approval. No change to LGC, the Governing Board,  the audit contract shall be effective unless approved the  and the Auditor.  by Secretary of the  17. Acopy of the engagement letter, issued by the Auditor and Governmental Unit(s), shall be attached tot this contract, and  signed by! both the Auditor and the  services, shall be incorporated by reference asi ift fully set forth excepti herein for fees, work, and terms not related to audit between thet terms of the engagement letter and the terms oft this as part of this contract. In case of conflict precedence. Engagement letter terms that conflict with the contract contract, thet terms of this contract shall take terms of this contract are specifically deleted in Item 28 of this contract. are deemed to be void unless the conflicting 18. Special provisions should bel limited. Please list any special provisions in an attachment. DPCU is subject to the audit requirements detailed in the Local be audited or report to be submitted. Ifa as separate audit report is issued, as separate audit contract is Government Budget and Fiscal Control Act and finance officer also shall bei included on this contract. approval date, signatures from the DPCU Board chairman and  indemnification clauses shall not be accepted by LGC Staff. 19. Aseparate contract should not ber made for each division to  Engagement letters containing  and the DPCU isi included in the government ont this audit contract. DPCU Board  required. Ifa a separate report is nott to bei issued  primary government audit, the DPCU shall  be named along with the primary not apply to charter schools or Unit(s) and the Auditor, then submitted in  20. The contract shall be executed, pre-audited (pre-audit requirement does hospitals), and physically signed by all parties including Governmental PDF format to the Secretary of thel LGC. 21. The contract is not valid until iti is approved by the the Governmental Unit and Auditor of contract  Secretary oft the LGC. The staff of the LGC shall notify  contract is approved.  approval by email. The audit should not be started before the  22, Retention of Client Records: Auditors are subject to the NC State Client Records Rule 21 NCAC 08N. .0305 as it relates to the  Board of CPAI Examiners' Retention of with the requirements of this rule priort to  as non-attest services. Clients and former clients should be familiar provision of audit and other attest services, as well Unit(s) and the Auditor, provided that (a) the consent to terminate is in agreement of the Governmental parties have agreed on thei fee amount which shall be paid to the Auditor writing and signed by both parties, (b) the shall be effective until approved in writing by the Secretary of thel LGC. (ifa applicable), and (c) no termination breach or default on one occasion or instance shall not constitute enforce, or waiver of, any right or an event of shall be enforceable unless entered into in accordance with the and no other agreements relative hereto that  requesting the return of records.  23. This contract may be terminated at any time by mutual consent and  24. The Governmental Unit's (Units') failure or forbearance to 25. There are no other agreements between the parties hereto  any subsequent occasion or instance. Secretary of thel LGC.  the waiver of such right, breach or default on procedure set out herein and approved by the  Page4    LGC-205  CONTRACT TO AUDIT ACCOUNTS  Rev. 11/2020  26. E-Verify. Auditor shall comply with the requirements NCGS Chapter 64, Article 2. 27. Applicable to audits with fiscal year ends of. June the Auditor shall adhere to thei independence Governmental Auditing Standards,  utilizes any subcontractor(s), Auditor shall require such ofl NCGS Chapter 64 Article 2. Further, if Auditor  subcontractor(s) to comply with the requirements of 30, 2020 and later. Fora all non-attest services,  rules oft the AICPAI Professional Code of Conduct and  assistance shall be deemed a "significant 2018 Revision (as applicable). Financial statement preparation reduce the threat to an acceptable level. If threat" the Auditor requiring the Auditor to apply safeguards sufficient to Auditor cannot complete the audit. Ift the Auditor is able cannot to reduce reduce the threats to an acceptable level, the  documentation of this determination, including the All non-attest service(s) being performed by the Auditor that are skills, knowledge, andlor experience (SKE) s/he must document and include in the audit determines that an individual with the  the threats to an acceptable level, the  workpapers.  safeguards applied, must bei included in the audit  identified andi included in this contract. The Governmental Unit necessary to perform the audit must be the results of the services performed. Ift the Auditor necessary to oversee the services and accept responsibility for the non-attest service(s) and the audit. appropriate See "Fees SKE for cannot bei identified, the Auditor cannot perform both person identified as having the appropriate SKE for the Audit Services" page of this contract to disclose the audit committee in an official meeting in any compliance reports tot the government unit's governing  shall designate an individual with the suitable  is able toi identify an individual with the appropriate SKE, workpapers how he/she reached that conclusion. If the Auditor  Governmental Unit.  28. Applicable to audits with fiscal year ends of June audited financial statements including available but notl later than 45 presentation tot the  30, 2021 and later. The auditor shall present the  open session as soon as the audited financial statements body are or  days after the submission of the audit report to the  government unit's governing body or audit committee shall Secretary. The auditor's  a)t the description ofe each finding, including all material weaknesses include: found byt the auditor, and any other issues related to the internal and significant deficiencies, as government unit as disclosed in the management letter, the controls or fiscal health of the standards set by the Accounting Standards regarding Board internal controls as required by current auditing  any other communications from the auditor b)t thes status of the prior year audit findings; c) the values of Financial Performance Indicators based on financial statements; and d) notification to the governing body that the governing  Single Audit or' Yellow Book reports, or information presented in the audited Matters," "ifrequired under 20 NCAC 03. .0508. Performance Indicators of Concern.  or its successor;  shall  Auditor's Findings, Recommendations, and Fiscal body develop a "Response to the  29. Information based on the audited financial statements shall bes submitted ofi identifying Financial Performance Indicators and Financial  to the Secretary for the purpose  Page 5    LGC-205  CONTRACT1 TO AUDIT ACCOUNTS  Rev. 11/2020  30. Applicable to charter school contracts only: Noi indebtedness of kindi  charter school shall constitute an indebtedness oft the State or its any! incurred or created byt the of the charter school shall involve or be secured by thet faith, political subdivisions, and no indebtedness  political subdivisions.  credit, or taxing power of the State or its  31.A All of the above paragraphs are understood and shall apply to this contract, numbered paragraphs shall be deleted (See Item 16 for clarification).  except thet following  32. The process for submitting contracts, audit reports andi invoices is "dwwsNcSSp.T 33, All communications regarding audit contract requests for modification or tot the email addresses provided on the signature pages that follow, 34. Modifications to the language and terms contained in this contract form (LGC-205)  units should use the submission process andi instructions ine effect subject to change. Auditors and  N.C. Department of State Treasurer website at  at thet time of submission. Refer to the    official approvals will be sent  are not allowed.  Page 6    LGC-205  CONTRACT TO AUDIT ACCOUNTS FEES FOR AUDIT SERVICES  Rev. 11/2020  1.F For all non-attest services, the Auditor shall adhere to the independence Code of Conduct (as applicable) and Governmental this contract for specific requirements. The presented tot the LGC without this information following willl be not information be  rules of the AICPA Professional must be provided by the Auditor; contracts  Auditing Standards,2018 Revision. Refer to Item 27 of  approved.  Financial statements were prepared by: Auditor Governmental Unit OThird Party If applicable: Individual at Governmental Unit designated to have the suitable experience (SKE) necessary to oversee the non-attest services and  skills, knowledge, and/or accept responsibility for the Emall Address; ont@lbmokawnliscom  results of these services: Name: Karen Clontz  Title and Unit/Company: Finance Officer  ORI Not Applicable LJ (Identification of SKE Individual not applicable for GAAS-only audit ora audits wilh FYES priort to. June 30, 2020.) in the engagement letter but may not be included in this contract or in costs. Suchi fees may bei included LGC. See Items 8 and 131 for details on other allowable and excludedfees. anyi invoices requiring approval oft the contract (ifr required) the Auditor may submit invoices for approval report, applicable for services compliance reports and amended provided below conflict with the cap calculated by LGC Staff based Secretary on thel the LGC. Should the 75% cap LGC calculation prevails. Alli invoices for services rendered in an audite billings on file with the LGC, the before approval is a violation of law. (This paragraph not approval applicable to any payment is made. Payment  2. Fees may not bei included in this contract for work performed on Annual Financial (AFIRs), Form 990s, or other services not associated with audit fees and  Information Reports  3. Prior to submission of the completed audited financial oft the billings for the last annual audit of the unit submitted toi the NCAC .0503 shall be submitted to the Commission for  of rendered, not to exceed 75%  before engagement as defined in 20 contracts andi invoices associated  with audits of hospitals). Primary Government Unit Audit Fee 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) Discretely Presented Component Unit Audit Fee Additional Fees Not Included in Audit Fee: Fee per Major Program Writing Financial Statements AIl Other Non-Attest Services 75% Cap for Interim Invoice Approval (not applicable tol hospltald contracts)  PRIMARY GOVERNMENT FEES Town of Sawmills $7,540 $ $4,060 $ $8,700.00 DPCU FEES (ifa applicable) N/A $ $ $ $ $ Page7 7    LGC-205  CONTRACT TO AUDIT ACCOUNTS SIGNATURE PAGE AUDIT FIRM  Rev. 11/2020  Audit Firm* Lowdermilk Church & Co., LLP James E Lowdermilk Date*  Authorized Firm Representative (lyped or printed)* Signature"  Epal Address*  16-20  AgeamAadgawN  GOVERNMENTAL UNIT  Governmental Unit* Town of Sawmills 03134Aed511C494) Mayor/Chairperson (typed or printed)* Johnnie Greene Date  Date Primary Government Unit Governing Board Approved Audit Contract*  Signature" Email Address greene@townotsawmills.com  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 manner required by The Local Govemment  Control Act or by the Schooll Budget and Fiscal ControlAct. Primary Governmental Unit Finance Officer* (opedorpinled Signature*  Budget and Fiscal  Karen Clontz Date of Pre-Audit Certificate*  Email Address* kconir@lbowmokawmili.com  Page8    LGC-205  CONTRACT TO AUDIT ACCOUNTS SIGNATURE PAGE-DPCU (complete only if applicable)  Rev. 11/2020  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.  Thisi instrument has been pre-audited! in the manner required by The Local Govemment  Control Act or by the School Budget and/ Fiscal Control Act. DPCU Finance Officer (typed or printed)* Date of Pre-Audit Certificate*  Budget and Fiscal  Signature" Email Address*  Remember to print this form, and obtain all required signatures prior to submission.  PRINT  Page9    Lowdermilk Church & Co., L.L.P. Certified. Public Accountants  1217 N. Sterling Street Phone: (828)433-1226 Fax: (828)433-1230  Morganton, North Carolina 28655  To the Honorable Mayor and thel Members oft the Town Council  Town of Sawmills Sawmills, North Carolina  November 12, 2020  We are pleased to confirm our understanding of the services we are  ended June 30, 2021. We will audit the financial statements oft to provide Town of Sawmills for the year activities, each major fund, and the aggregate remaining fund the governmental activities, the business-type financial statements, which collectively comprise the basic financial information, including the related notes to the (MD&A), to supplement' Town of Sawmills' basic financial statements. Such Discussion and Analysis be an essential part oft financial reporting for placing the basic financial Accounting Standards Board who considers itt to limited procedures will consist ofi auditing standards generally accepted in the United States of America. These and comparing the information for inquiries ofmanagement regarding the methods of preparing the information express an opinion or provide any assurance on the information, because thel financial limited statements. We will not generally accepted accounting principles, and will bes subjected to certain limited following RSI is required by U.S.  the year ended June 30, 2021. Accounting standards for certain required supplementary information the basic financial statements, is required by the Governmental economic, or historical context. As part of our Sawmills' RSI in accordance with statements, and other  statements ofTown ofSawmills as ofand for  generally accepted in the United States of America provide  (RSI), such as the Management's  information, although not aj part of statements in an appropriate operational,  engagement, we will apply certain limited procedures to Town of  consistency with management's responses to our inquiries, the basic  knowledge we obtained during our audit oft the basic  financial  with sufficient evidence to express an opinion or provide any assurance. The  procedures do not provide us procedures, but will not be  audited: 1) 2) 3)  Management's Discussion and Analysis Budgetary Comparison Information Local Government) Employees' Retirement System Schedule of the Liability (Asset) and Schedule ofC Contributions We have also been engaged to report on supplementary information other than Sawmills' financial statements. We will subject the following comparing and reconciling such information directly to the underlying prepare the financial statements, or to the financial statements accordance with auditing standards generally  Share  Proportionate  ofl Net Pension  RSI that accompanies Town of procedures, including accounting and other records used to themselves, and other additional procedures in  procedures applied in our audit oft the financial statements, and supplementary certain additional information to the auditing  opinion on it in relation to the financial statements accepted in the United States of America, and we will provide an  the financial statements:  as a whole in a report combined with our auditor's report on  1) 2) 3)  Individual Fund Financial Statements Budgetary Schedules Other Schedules    Audit Objectives  The objective of our auditi ist the expression of opinions as to whether your financial statements  presented, in all material respects, in conformity with U.S. generally  are fairly  on the fairness oft the supplementary information referred toi in the second accepted accounting principles and to report tot the financial statements as a whole. Our audit will be conducted in accordance paragraph with when considered in relation generally accepted in the United States of America and the standards for financial audits auditing standards Auditing Standards, issued by the Comptroller General ofthe United States, and will include contained in Government opinions. We will issue a written report upon completion of our audit ofTown necessary to enable us to express such Our report will be addressed to the Town Council ofTown of Sawmills. We of Sawmills' financial statements. unmodified opinions willl be expressed. Circumstances may arise in which iti is cannot provide assurance that form or have not formed opinions, wei decline any reason, are unable to complete the audit, or are unable to  accounting records ofTown of Sawmills and other procedures we consider opinions or add emphasis-of-matter or other-matter paragraphs. If our  tests oft the  necessary for us to modify our opinions are other than unmodified, we will  discuss the reasons with you in advance. If, for  we  this engagement.  may  to express opinions ori issue reports, or we may withdraw from  Ifcircumstances occur related to the condition ofyour records, the availability ofs error, fraudulent financial reporting, or misappropriation ofassets,  evidence, or the existence ofas significant risk ofr material misstatement oft the financial sufficient, appropriate audit us from completing the audit or forming an opinion on the financial which, our professional judgement, prevent course of action permitted by professional standards, including statements, we retain the right to take any  in  statements caused by  orv withdrawing from the engagement.  declining to express an opinion or issue a report,  We will also provide ai report (that does noti include an opinion) on internal control statements and compliance with the provisions ofl laws, regulations, that states (1) that the purpose oft the report is solely to describe the Government. Auditing Standards in considering the also state that the report is not suitable for any other entity's  related to the financial  noncompliance with which could have a material effect on the financial contracts, statements and grant agreements, Auditing Standards. The report on internal control, and on compliance and other as required by Government compliance, and the results of that testing, and not to provide an scope testing ofi internal control and internal control on compliance, and (2) that the report is an integral opinion of on the effectiveness oft the entity's Sawmills is subject to an audit requirement that is not purpose. If, during our audit, wel become aware that' Town of communicate to management and to those charged with encompassed in the terms ofthis engagement, we will generally accepted auditing standards and the standards for governance financial that an audit in accordance with U.S. Standards may not satisfy the relevant legal, regulatory, or contractual audits contained in Government Auditing  oft matters, will include a paragraph  internal part an audit performed in accordance with control and compliance. The paragraph will  requirements.  Audit Procedures--General  An audit includes examining, on at test basis, evidence supporting the amounts and statements; therefore, our audit will involve judgment about the number areas to be tested. An audit also includes evaluating the whether the financial statements are free ofi material Because the determination of waste and abuse iss subjective,  disclosures in the financial oftransactions to be examined and the  reasonableness of significant accounting estimates made appropriateness oft the accounting policies used and the presentation oft the financial statements. We will plan and by management, as well as evaluating the overall financial reporting, (3) misappropriation of assets, misstatement, whether from (1) errors, (2) fraudulent auditors to provide reasonable assurance of detecting waste and Government, abuse. Auditing Standards do not expect  perform the audit to obtain reasonable assurance about  attributable to the  or (4) violations ofl laws or governmental regulations  government or to acts by management or employees  that are  acting on behalfoft the government.    Because oft the inherent limitations ofa an audit, combined with thei inherent limitations may exist and not be detected by us, even though the audit is properly planned and designed to detect immaterial misstatements or violations of laws direct and material effect on the financial statements. management of any material errors, any fraudulent financial reporting, or come to our attention. We will also inform the appropriate! level extend to later periods for which we are not engaged as auditors.  because we will not perform a detailed examination of all transactions, there is a risk that ofi internal control, and U.S. generally accepted auditing standards and Government. Auditing Standards. performed in accordance with  material misstatements In addition, an audit is not or governmental regulations that do not havea appropriate level of any misappropriation of assets that inconsequential, and ofa any material abuse that  However, we willi inform the  governmental regulations that come to our attention, unless ofmanagement ofa any violations oflaws or  clearly  comes to our attention. Our  responsibility as auditors is limited to the  covered period  by our audit and does not  Our procedures will include tests of documentary evidence supporting the transactions other assets and liabilities by correspondence with selected individuals, funding  and may include tests of the physical existence ofi inventories and direct confirmation recorded in the accounts bill you for responding to this inquiry. At the conclusion of your our attorneys as part oft the engagement, and they may representations from you about your responsibilities fort the financial audit, we will require certain written regulations, contracts, and grant agreements; and other responsibilities statements; compliance with laws,  ofreceivables and certain sources, creditors, and financial  institutions. We will request written representations from  standards.  required by generally accepted auditing  Audit Proeedures--Internal Control  Our audit will include obtaining an understanding oft the government and its environment, timing, and extent off further audit procedures. Tests of controls be noncompliance matters that have a direct and detecting material misstatements effect  control, sufficient to assess the risks ofmaterial misstatement of the financial statements and including internal certain controls that we consider relevant toj preventing and may performed to test the effectiveness of will bel lessi ins scope than would be necessary to render an on the financial statements. Our tests, ifperformed, opinion will be expressed in our report on internal control opinion issued on internal control and, accordingly, no weaknesses. Accordingly, we will express no such opinion. However, identify during the significant deficiencies or material communicated under AICPA professional standards and Government matters that are required to be  to design the nature,  financial statements and to preventing and  detecting errors and fraud that are material to the resulting from illegal acts and other pursuant to Government. Auditing Standards.  An audit is not designed to provide assurance on internal control or to management and to those charged with governance internal control related  audit, we will communicate to  Auditing Standards.  Audit rocdlures-Complane  As part of obtaining reasonable assurance about whether the financial statements are free material misstatement, we will perform tests ofTown of Sawmills' compliance with the provisions ofr regulations, contracts, agreements, and grants. However, the objective of our audit will ofapplicable laws, opinion on overall compliance, and we will not express such an opinion in our  not be to provide an report on compliance issued  pursuant to Government Auditing Standards.  Other Services  We will also assist inj preparing the financial statements and related notes ofTown U.S. generally accepted accounting principles based on information  of Sawmills in conformity with  following based on information provided services do not constitute  provided by you. We will also prepare the  by you: AFIR, and Unit Data Input Worksheet, These nonaudit  an audit under Government Auditing Standards, and such  in accordance with Government Auditing Standards. We will perform the services in services will not be conducted  professional standards. The other services are limited tot the financial statement in ours sole professional judgement, reserve the right to refuse to perform could be construed as assuming management responsibilities.  accordance with applicable services previously defined. We, any procedures or take any action that    Management Responsibilities  Management is responsible for designing, implementing, establishing, and appropriate goals and objectives are met; following laws and regulations; and reliable, and the financial information is reliable and properly reported. implementing systems designed to achieve compliance with preparation and fair presentation oft the financial with U.S. generally accepted accounting the provisions of contracts and  relevant to the preparation and fair presentation ofi financial statements that maintaining are: freei effective internal controls, whether due toi fraud or error, including evaluating and monitoring ongoing activities from to material misstatements, agreements. You are also responsible for the selection and applicable laws, regulations, contracts, and grant  that help ensure that ensuring management is Management is also responsible for  application of accounting principles, for the statements, and all accompanying information, in conformity principles, and for compliance with applicable laws and regulations and  grant agreements.  Management is also responsible for making all financial records andi related information the accuracy and completeness oft thati information. You are also responsible for  available to us and for  alli information, ofv which you are aware, that is relevant tot the preparation and fair providing us with (1) access to statements, (2) additional information that wei may request for the purpose oft the presentation oft the financial Your responsibilities include adjusting the financial statements to correct material misstatements confirming to us ini the written representation letter that the effects of uncorrected by us during the current engagement and pertaining to the latest any You are responsible for the design and implementation of programs and controis for informing us about all known or suspected fraud affecting the on the financial statements. Your responsibilities include employees, grantors, regulators, or others. In agreements, or abuse that we report.  to persons within the government from whom we determine it  to obtain audit, and (3) unrestricted access audit evidence.  necessary  and for misstatements aggregated  and in the aggregate, to the financial statements taken as a whole. period presented arei immaterial, both individually  toj prevent and detect fraud and fraud could have a material effect  employees who have significant roles ini internal control, and (3) others government where involving (I) management, (2) fraud, or suspected fraud, affecting the government received informing inc us ofy your knowledge ofany allegations of government complies with applicable laws, addition, you are responsible for identifying and ensuring that the and appropriate steps to remedy fraud and noncompliance regulations, contracts, with agreements, and grants and for taking timely  communications from employees, former provisions oflaws, regulations, contracts or grant  You are responsible for the preparation oft the supplementary information, which  on, in conformity with U.S. generally accepted accounting  wel have been engaged to report  supplementary information in any document that contains, and principles. You agree to include our report on the supplementary information. You also agree toi include the audited indicates that we have reported on, the the supplementary information that includes our report thereon. Your financial statements with any presentation of us in the written representation letter that (I)yous are responsible for responsibilities include acknowledging to information in accordance with GAAP; (2); you believe the supplementary presentation oft the supplementary content, is fairly presented in accordance with GAAP; (3) the methods of information, including its form and changed from those used in the prior period (or, ift they have changed, thei measurement or presentation have not  have disclosed to us any significant assumptions or interpretations Management is responsible for establishing and maintaining a process for recommendations. Management is also responsible fori the Audit Objectives section of this letter. This  reasons for such changes); and (4); you underlying the measurement or presentation of  the supplementary information.  tracking the status ofaudit findings and  financial audits, attestation engagements, performance audits identifying and providing report copies ofprevious address significant findings and recommendations responsibility includes relaying to us corrective actions taken to performance audits, or other studies. You are also resulting from those audits, attestation engagements, findings, conclusions, and recommendations, as well responsible for providing management's views on our current timing and format for providing that information. as your planned corrective actions for the report and for the  or other studies related to the objectives discussed in    With regard tot the electronic dissemination ofaudited financial  published electronically on your website, you understand that electronic statements, sites including financial statements information and, therefore, we are not required to read the information contained are a in means to distribute consistency of other information in the electronic site with the original document. these sites or to consider the Yous agree to assume all management responsibilities relating to the financial statements other nonaudit services we provide. You will be required to acknowledge in the  and related notes and any accepted responsibility for  our assistance with preparation oft the financial statements and related notes and management representation letter approved the financial statements and related notes prior to their issuance and have that you have reviewed and  them. Further, you agree to oversee the nonaudit services management, with suitable skill, knowledge, and to accept responsibility for them,  by designating an individual, preferably from senior  or experience; to evaluate the adequacy and results oft those services;  Inc connection with this engagement, we may communicate with or others can be intercepted and read, disclosed, or otherwise used or communicated you warrant that emails from us will bej properly delivered and read shall have no liability for any loss or damage to including any consequential, incidental, Engagement Administration, Fees, and Other  via email transmission. As emails parties, we cannot guarantee or  not be delivered to each oft the parties to whom they are directed, and to by such an unintended third party, or may disclaim and waive any liability or responsibility whatsoever for only thei by the addressee. Therefore, wes specifically emails transmitted by us in connection with the performance oft this interception or unintentional disclosure of anticipated profits, or disclosure or direct, indirect, or special damages, such as loss ofr revenues or  only  engagement. Int that regard, you agree that we  any person or entity resulting from the use ofe email transmissions,  communication of confidential or proprietary information.  We understand that your employees will prepare all cash, accounts receivable, other schedules we request and will locate any documents selected by us for testing, or We will provide copies of our reports to the Town; however, management is reports and the financial statements. Unless restricted by law or  confirmations and  responsible for distribution ofthe public inspection.  confidential information, copies of our reports are to be made available regulation, for or containing privileged and  The audit documentation for this engagement is the property ofLowdermilk confidential information. However, subject to applicable laws andi oversight responsibilities. We will notify you ofa any such request.  Church & Co., L.L.P. and constitutes  appropriate individuals will be made available Commission or its designee, ai federal Accountability Office for  and regulations, audit documentation and  upon request, in at timely manner, to the Local Government agency providing direct or indirect funding, or the U.S. Government  purposes ofa quality review oft the audit, to resolve audit  findings, or to carry out  documentation will be provided under the supervision ofLowdermilk Ifrequested, access to such audit Furthermore, upon request, we may provide copies ofs selected audit documentation Church & Co., L.L.P. personnel. These parties may intend, or decide, to distribute the copies or information contained to the aforementioned parties. date or for any additional period requested by the Local Government minimum of fivey years after the report release finding for guidance prior to destroying the audit finding, we will contact the party(ies) contesting the audit the reports or authorizing another individual to sign them. To ensure thatl supervising Lowdermilk the engagement and signing engagement partner before entering into any substantive employment Conduct, you agree to inform the  other governmental agencies.  therein to others, including  The audit documentation for this engagement will be retained for a awarding agency or auditee is contesting an audit  Commission. If we are aware that a federal  documentation.  James E. Lowdermilk is the engagement partner and is responsible for independence is not impaired under the AICPA Code of.Professional  Church & Co., L.L.P.'s  discussions with any ofo our personnel.    Our fee for these services will be at our standard hourly rates, plus including expenses, will not exceed $11,600. Our standard responsibility involved and the experience level oft the fees will be rendered each month as work deemed to have been completed  reproduction, word processing, postage, travel, copies, telephone, out-of-pocket costs (such as report  etc.) except that we agree that our gross fee, hourly rates vary according to the degree of personnel assigned toy your audit. Our invoices for these  firm policies, work may bes suspended ify progresses and are payable on presentation. In accordance with our until your account is paid in full. Ifwe elect your account becomes 30 days or more overdue and may not be resumed report. You will be obligated to compensate us for all time expended and ifwel have not completed our the assumption that unexpected circumstances will not be on anticipated cooperation from your personnel and We are required toi inform you that we charge interest at new fee estimate before we incur the additional costs. will communicate with you regarding the scope oft the additional services in this engagement letter. Ifthis occurs, we issue a separate engagement letter covering the additional services. In and the estimated: fees. We also may  written to terminate our services for nonpayment, our engagement will be  upon  notification oft termination even  costs through the date oftermination. The above feei is based time is necessary, we will discuss it with you and arrive at encountered ai Your may request that we perform additional services not addressed communication from us documenting such additional  to reimburse us for all out-of-pocket during the audit. Ifsignificant additional  ai rate of 18% per annum on all invoices over 30 days old.  the absence of any other written  terms oft this engagement letter.  services, our services will continue to be governed by the  Our audit engagement ends on delivery of our audit report. Any follow-up services a separate, new engagement. The terms and conditions oft that new We are providing: you with a copy of our 2018 external peer review report which We appreciate the opportunity to be of service to Town of Sawmills and believe  that might be required will be  specific engagement letter for that service.  engagement will be governed by anew,  accompanies this letter. this letter accurately summarizes  the significant terms ofour engagement. Ifyou have  terms of our engagement as described in this letter, any questions, please let us know. Ifyou agree with the  please sign the enclosed copy and return it to us.  Very truly yours, &  - Shell 9  James B. Lowdermilk Partner RESPONSE:  This letter correctly sets forth the understanding ofTown of Sawmills.  Management signature: Title: Date: Governance signature: Title: Date:    Bernard Robinson & Company, L.L.P.  b0a  Report on the Firm's System of Quality Control  October 30, 2018  To thel Partners ofLowdermilk Church & Co., LL.P. and the Peer Review Committee oft thel North Carolina Association of Certified Public, Accountants  We have reviewed the system of quality control for the accounting and Church & Co., L.L.P. (the firm) in effect for the year ended conducted in accordance with the Standards for Performing and May 31, A summary of the nature, objectives, scope, limitations of, and the Review as described in the Standards may be found at includes an explanation ofhow engagements identified as wwwadpaarpnummay. not performed  auditing 2018. practice ofLowdermilk Our. peer review was Accountants (Standards). procedures performed in a System  by thel Peer Review Board oft the American Institute of Certified Public. Reporting on Peer Reviews established  The summary also aj peer review  applicable professional standards, if any, are evaluated by aj peer reviewer or reported to determine in conformity with  rating.  Firm's] Responsibility  The firm is responsible for designing a system of quality control and firm with reasonable assurance of performing and reporting in  complying with it toj provide the  standards in all material respects. The firm is also responsible conformity for with applicable professional remediate engagements deemed as not performed or reported in conformity evaluating with actions to promptly when appropriate, and for remediating weaknesses ini its system of quality control, professional ifany. standards,  Peer Reviewer's Responsibility compliance therewith based on our review. Required Selections and Considerations  Our responsibility is to express an opinion on the design oft the system of  quality control and the firm's  Engagements selected for review included an engagement performed under Standards, including a compliance audit under the Single. Audit Act. As aj part of our peer review, we considered: reviews by regulatory entities as communicated ifapplicable, in determining the nature and extent of our procedures.  Govermment Auditing  by the: firm,  1501 Highwoods Blvd., Ste. 300 (27410) PO. Box 19608 I Greensboro, NC27419 P: 336-294-4494 e F: 336-294-4495  brccpa.com    Lowdermilk Church & Co., L.L.P. October 30, 2018 Page2 Opinion  In our opinion, the system of quality control for the with to provide the firm with reasonable assurance 31,2018, of applicable professional standards in all material  Church & Co.,L.L.P. ine effect fort the year ended! May accounting has and auditing practice ofI Lowdermilk deficiencyfies) orfail. Lowdermilk Church & respects. Firms car receive ai rating of pass, pass with  been suitably designed and complied performing and reporting in conformity with  Co.,L.L.P. has received aj peer review rating of pass.  Buaid Painvnt  Compay &kp BERNARDROBINSON. & COMPANY,LL.P.    AGENDA ITEM 8B  MEMO DATE: SUBJECT:  December 15, 2020 Financial Matters: Adopt Budget Workshops Schedule  Discussion:  Enclosed with this memo is a copy oft the proposed FY 2021-2022 budget workshop schedule. The annual Council budget retreat is scheduled for February 9th, 2019, from 9:00 am to 4:00 pm,  at Sawmills Town Hall Council Chambers.  As presented, the budget schedule includes four (4) budget workshops.  Recommendation:  Staff recommends Council adopt the FY 2020-2021 budget workshops schedule.    DFSANIN  ORPORATED 980  FY 2021-2022 Budget Retreat and Workshop Schedules  December 15th at 6:00 pm Regular Council Meeting February 9th from 9:00-4:00 Special Council Meeting March 4th from 5:00-7:00 Special Council Meeting April 1st from 5:00-7:00 Special Council Meeting April 22nd from 5:00-7:00 Special Council Meeting May 6th from 5:00-7:00 Special Council Meeting May 18th at 6:00 pm Regular Council Meeting June 15th at 6:00 pm Regular Council Meeting  Adopt FY 2021-2022 Budget Retreat and Workshop Schedules  (Sawmills Town Hall Council Chambers) Annual Council Budget Retreat (Sawmills Town Hall Council Chambers) Budget Workshop Number1 (Sawmills Town Hall Council Chambers) Budget Workshop Number 2 (Sawmills Town Hall Council Chambers) Budget Workshop Number: 3 (Sawmills Town Hall Council Chambers) Budget Workshop Number 4 (Ifneeded) (Sawmills Town Hall Council Chambers) Presentation ofFY 2021-2022 Budget and Call a Public Hearing (Sawmills Town Hall Council Chambers) Public Hearing and Adoption ofFY2021-20222 Budget (Sawmills Town Hall Council Chambers)  *As required by law all meetings are open to the public.  Town of Sawmills 4076 US Highway 321-A * Sawmills NC * (828)396-7903 * (828)396-8955 fax  wwwiowmohawmilscom    AGENDA ITEM9A  MEMO DATE: SUBJECT:  December 15, 2020 Planning Matters: Re-Appoint Planning Board/BOA Members  Discussion: 2020:  The term of appointment for the following Planning Board/BOA Members expired on October 1,  Steve Duncan David Powell  Town Planner Dustin Millsaps has contacted the members and both are willing to serve another  term.  Recommendation: three (3) years.  Staff recommends Council re-appoint the two (2) members to the Planning Board for a term of    AGENDA ITEM1 11A  MEMO DATE: SUBJECT:  December 15, 2020 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.        OFSAWINY  4076 USI Highway 321A Sawmills, NC28630 Phone: (828)396-7903  SAWMILLS  ORATED  Voutn Cacoca manager@townofsawmillsnc.com  Town Manager's Monthly Report  December 2020  General Information:  The following is information regarding on-going projects within the Town. If you would like further information about any of the projects or information covered, lwould be more than happy to address them at the next council meeting or at your leisure. Please do not hesitate to  contact me iflcan be of any assistance.  Paving & Patching:  Project started last week and at the time Ityped this, Longbay Dr should be completed by Friday (12/11). Grading started at Marblestone/Sitlwater intersection and weather depending will be completed this week. It appears that in the coming year we could potentially: see 4 houses being built at this intersection. Iwill commend you, paving the intersection now was a  good decision.  Corona Virus Relief Funds (CRF):  Installation of equipment has commenced at Baird Park, Veterans Park, and the Farmers Market Lot. Our Public' Works staff have ran and burried several lines to keep our cost toa minimum and allow monies to be spent on other things. You should notice new poles at each location and the electrical panel has been set at the Farmers Market lot and it is better thanl could have imagined. Lastly, once these installations are complete with will have a WiFi network at all three locations along with security cameras to moniter activity and help ensure safety. These locations should provide an opportunity for those that do not have internet access at home to safely sit somewhere with access to do school work, fill out job applications, etc. Lastly, we will place restrictions on what can be accesed at these locations.  Page 1of2    FSAWM  -  4076 US Highway 321A Sawmills, Phone: (828)396-7903 géomohamailscsen  SAWMILLS  NC28630  OuOL sarouna  Parks & Rec/A Admin Assistant  Both jobs are posted ont the website and Facebook page. Iwill probably post it on at few other sites next week. Ip prefer to post locally for a week or two then post on outside sources. I've listed first review of applications as. January 4, 2020. Both positions should be filled by mid to  end of January. Town Events:  Ify you recall, we budgeted for additional Christmas lights for the large tree at the Farmers Market. I decided to hold off on getting them and putting them on thet tree becauselwas unsure how long the lot may be without power because oft the electrical installation/upgrade on the lot. I didn't want to spend time, money, and manpower on lights we were not going to  get to enjoy.  Page2of2