AGENDA Sawmills Town Hall Tuesday, November 20, 2018  Regular Meeting of 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: A. Employee Longevity Pay  Mayor Johnnie Greene Zack Bryant Mayor Johnnie Greene Mayor Johnnie Greene Mayor Johnnie Greene Mayor Johnnie Greene Mayor Johnnie Greene Mayor Johnnie Greene Mayor Johnnie Greene Mayor Johnnie Grenne Mayor Johnnie Greene Mayor Johnnie Greene Mayor. Johnnie Greene Mayor Johnnie Greene Town Administrator Christopher Todd Mayor Johnnie Greene Mayor Johnnie Greene  A. October 16, 2018 Regular Meeting Minutes  B. Caldwell County Veterans Honor Guard Donation Request C. Approve Auditors Contract for FY 2018-2019 D. Budget Amendment- - Baird Park Lighting A. Timberline Property Update  9. Discussion: 10. Public Comment 11. Updates:  A.Codel Enforcement Report B.Town Administrator Updates .Council Comment 12. Adjourn    Page lof6  TUESDAY, ,OCTOBER 16,2018  TOWN OF SAWMILLS REGULAR COUNCIL MEETING  6:00 PM  COUNCIL PRESENT Mayor Johnnie Greene Clay Wilson Jeff Wilson Rebecca Johnson Keith Warren Joe Norman  STAFF PRESENT Christopher Todd Terry Taylor Julie A Good  CALL TO ORDER: Mayor Johnnie Greene called the meeting to order.  INVOCATION: Neil Annas gave the invocation.  PLEDGE OF ALLEGIANCE: Landon Hines and Ashton Woodruff from Sawmills  Elementary School led the Pledge of Allegiance.  ADOPT AGENDA: Mayor Johnnie Greene asked for a motion to adopt the October 16, Keith Warren made a motion, and Joe Norman seconded, to adopt the October 16, 2018  2018 Agenda.  Agenda. All were in favor.  APPROVE SEPTEMBER 18, 2018 REGULAR MEETING MINUTES: Mayor Johnnie Greene asked for a motion to approve the September 18, 2018 regular meeting minutes. Joe Norman made a motion, and Rebecca Johnson seconded, to approve the September 18,  2018 regular meeting minutes. All were in favor.  PUBLIC COMMENT: Mayor Johnnie Greene asked if anyone had any questions or Deputy Jon Hawn, Sawmills Elementary School Resource Officer, wanted to thank the Council and Town for all the support for him and for Sawmills Elementary School.  comments at this time.    October 16, 2018 Page 20 of6  RECOGNITIONS:  RECYCLE REWARDS WINNER: Mayor Johnnie Greene announced Mr. Richard Aultman as the October Recycle Rewards winner. Acreditofthirtly-two dollars ($32.00) will  be added to his sanitation bill. No Council action was required. FINANCIAL MATTERS:  GRANITE FALLS MIDDLE ATHLETIC CLUB DONATION REQUEST: Mayor Johnnie Greene stated that the Granite Falls Athletic Club had requested a donation in the Joel Norman made a motion, and Keith Warren seconded, to give a donation in the amount of one hundred fifty dollars ($150.00) to Granite Falls Middle Athletic Club, Jeff Wilson and  amount of one hundred fifty dollars ($150.00).  Rebecca Johnson were in favor. Clay Wilson opposed.  SOUTH CALDWELL SPARTAN. ATHLETIC CLUB DONATION REQUEST: Mayor Johnnie Greene stated that the South Caldwell Spartan Athletic Club had requested a donation Jeff Wilson made a motion, and Joe Norman seconded, to give a donation in the amount of one hundred fifty dollars ($150.00) to the South Caldwell Spartan Athletic Club. All were in  in the amount ofc one hundred fifty dollars ($150.00).  favor.  SAWMILLS ELEMENTARY SCHOOL PTA DONATION REQUEST: Mayor Johnnie Greene stated that the Sawmills Elementary School PTA had requested a donation in the Clay Wilson made a motion, and Jeff Wilson seconded, to give a donation in the amount of two hundred dollars ($200.00) to the Sawmills Elementary School PTA. All were in favor.  amount oftwo hundred dollars ($200.00).  DISCUSSION:  TIMBERLINE LUMBER COMPANY PROPERTY: Town Administrator Christopher Todd stated that the Town Council, during their regularly scheduled September meeting, directed Town staffto investigate methods to resolve nuisance and public safety issues related The property has not been significantly occupied by any commercial or industrial use in over a decade, and has minimal maintenance work done to the structure. Due to this, the property  to a property owned by the Timberline Lumber Company, LLC.    October 16, 2018 Page e3of6  has been a re-occurring nuisance issue for the Town. Additionally, as the property has generally remained empty it has been a hot spot for different criminal activity. Both the nuisance issues and related criminal issues have been increasing over the last two (2) years, Currently, the property is three (3) years (2016, 2017, 2018) delinquent with property taxes, resulting in a total of four thousand four hundred fifteen dollars and forty cents ($4,415.40) owed to the Town of Sawmills and twenty-two thousand four hundred thirty-nine dollars and  as there have been no active uses ofthe property.  thirty-two cents ($22,439.32) currently to all taxing agencies. There are multiple options to address the concerns:  Tax Foreclosure;  Traditional Nuisance Abatement; Private Redevelopment; and Town site Control  Joel Norman made ai motion, and Keith Warren seconded, to have' Town Attorney Terry Taylor  move. ahead with the process oftax foreclosure. All were in favor.  SAWMILLS MUNICIPAL PARK LIGHTING: Town Administrator Christopher Todd stated that the fiscal year 2017/2018 budget included seventy thousand dollars ($70,000.00) for repairs to the Sawmills Municipal Park lighting. The original budget was to replace the wooden poles on the large baseball field with metal poles. The poles need repair due to age, insects, and animals causing damage to the poles. During that time period the cost of the After further investigating, staff would recommend a complete update to the current lighting system. This is due to the age of the system, continued maintenance costs, and overall state ofthes system. The proposal would bet to update the system with metal polesa andLED lighting, The replacement and repair work has been quoted by Musco, a lighting solutions company. The total replacement and repair costs are estimated to be four hundred sixty-nine thousand dollars ($469,000.00). This costs includes the replacement of all wooden poles, the installation of LED lighting on all Town lights, and includes a twenty-five (25) year maintenance contract. The maintenance contract would cover all typical wear and aging of the system. Possible additional costs would be incurred if the system is placed in rocky or Joe Norman made a motion, and Keith Warren seconded, for stafft to proceed with the project and a budget amendment in the amount of four hundred sixty-nine thousand dollars ($469,000.00) for the regular scheduled November meeting. All were in favor.  project exceeded the budgeted figure.  replacing all current ballfield and walking trail lighting.  hard to dig soils.  PUBLIC COMMENT: No one wished to speak.    October 16, 2018 Page 4of6  OCTOBER CODE ENFORCEMENTREPORT: There are twelve (12) code enforcement  cases open:  Teresa Annas Compton is the owner ofa dilapidated house located at 4476 Sawmills School Road. Town Planner Becca Bleich stated that there was a hearing held on September 6, 2018. Owner did not show. Town can proceed with abatement; Carolyn Bray/Robyn Brittan, owner of abandoned mobile home located at 2570 Baker Circle. Town Planner Becca Bleich stated that an Attorney has been appointed to the Jose Montes, owner 4321 Cherokee Court. High grass/junk vehicles. Town Planner Becca Bleich stated that she spot checked property on June 14, 2018. Still no proper driveway has ever been installed. Town Planner Becca Bleich stated that a letter was sent giving the owner thirty (30) days to install a driveway. The thirty (30) days are up on July 14, 2018, and homeowner will start to accrue fines if not compliant from that date. Town Planner Becca Bleich stated that another letter was sent on August 28, 2018, giving the home owner ten (10) more days. Town Planner Becca Bleich stated that she spot checked the property on September 11 and the homeowner was, not in compliance. Town Planner Becca Bleich stated that she spoke with homeowner on September 18, 20108 and homeowner stated that he would have the driveway completed on September 22, 2018. Town Planner Becca Bleich stated that the driveway was not completed until October 4, 2018. Four hundred fifty dollars ($450.00) have been incurred. Town Planner Becca Bleich stated that she sent a Midland IRA, owner of5711 Dream View Point. Nonconforming accessory structure. Town Planner Becca Bleich stated that she spot checked property in April. An accessory structure has been placed on the property before the principal structure has been constructed. Letter was sent on May 23, ,2018 with a deadline to remove structure Sandra Parlier, daughter of the owner of 4380 Sawmills School Rd. Overgrown vegetation. Sandra contacted Town Planner Becca Bleich requesting extension on foreclosure process. Town Planner Becca Bleich stated that a letter was sent on August 7, 2018, explaining the foreclosure process was initiated by Caldwell County but the nuisance violations would need to be abated within fifteen (15)days. Deadline is August 22, 2018. The owner did not comply and another letter outlining fees was Chaney Carter, owner of 4361 Sawmills School Rd. Overgrown vegetation. Town Planner Becca Bleich stated that a letter was sent on July 19, 2018, with a deadline of August 3, 2018. Town Planner stated that the nuisance was abated by the Town on August 10, 2018. Town Planner Becca Bleich stated that a lien will be placed on the property for the cost of the mowing. Town Planner Becca Bleich stated that a hearing was held on September 6, 2018. The homeowner did not show SO the Town can  estate and Terry Taylor with work with attorney;  invoice and letter tol homeowner on October 9, 2018;  by June 7,2018;  sent with a deadline of September 21, 2018;  proceed to demolish house;    October 16, 2018 Page 5of6  Timberline Lumber Company, Inc., owner of 4219 US Highway 321A. Overgrown vegetation. Town Planner Becca Bleich stated that a NOV letter was sent on. July 19, 2018, with a deadline of August 3, 2018. Town Planner Becca Bleich also stated that an additional letter was sent by Town Attorney Terry Taylor on August 2, 2018 with a deadline of August 17, 2018. The owner did not comply. Town Planner Becca Bleich stated that she is working with Town Attorney Terry Taylor to determine what Robert Hollar, owner of 2615 Mission Rd. Overgrown vegetation. Town Planner Becça Bleich stated that there was vegetation on the fence encroaching onto the neighbor's property. Town Planner Becca Bleich stated that a letter was sent on July 24, 2018, with a deadline of August 8, 2018. Town Planner Becca Bleich stated that she missed a call from the property owner requesting clarification and she called back and left a voicemail explaining the issue. Town Planner Becca Bleich stated that she has spoken with a business representative and a contractor has been hired to abate the issue. Town Planner Becca Bleich stated that she will continue to monitor; Buck Poe, 4042 Clyde Drive. High Grass. Town Planner Becca Bleich stated that a letter was sent on September 6, 2018 with a deadline of September 16, 2018. Town Planner Becca Bleich stated that she sent a second letter on September 20, 2018. Mr. Poe did mow the grass after incurring a fifty dollar ($50.00) fine. Mr. Poe has paid Gregory Williams. High Grass. Town Planner Becca Bleich stated that she sent a Mark Kiser. Vegetative Buffer. Town Planner Becca Bleich stated that she sent a NOV letter on September 20, 2018 and again on October 2, 2018, stating the need to Bobby Prestwood. Rubbish, High Grass. Town Planner Becca Bleich stated that a  steps to take next;  his fines;  NOV letter on September 20, 2018;  increase the vegetative buffer in the rear oft the property; NOVI letter was. sent on September 237, 2018.  No Council action was required.  PLANNING QUARTERLY REPORT: Town Planner Becca Bleich stated that during the  20183d Quarter she has:  Completed edits on the Sawmills Comprehensive Plan; Administered sixteen (16) zoning permits; Reviewed three (3). subdivisions; Answered various planning/zoning citizen questions;  Accompanied Town Administrator and County Inspector to inspect two (2) Worked with Town Administrator and Town Attorney to abate nuisance violations; Re-wrote the nuisance letter to include the stricter fee schedule; and Began work to map out and take pictures of vacant/dilapidated homes.  dilapidated houses;    October 16, 2018 Page 6of6  No Council action was required.  TOWN ADMINISTRATOR UPDATES: Town Administrator Christopher Todd stated Town Administrator Christopher Todd stated that the Town is working on the demolition of the Compton Property on Sawmills School Road. Town Administrator Christopher Todd stated that the Town received a report back that there was asbestos in a wall. Town Administrator Christopher Todd stated that the Town is now asking for quotes for asbestos  that two (2) houses have been demolished on Sawmills School Road.  removal and demolition.  Mayor Johnnie Greene announced that the Sawmills Fire and Rescue 60th Anniversary The Town ofSawmills Veteran's Celebration will be held on November 10,2018, at Veterans The Town of Sawmills Fall Festival will be on October 26, 2018, at Baird Park from 12:00pm The Sawmills Elementary School Fall Festival will be on October 27, 2018, from 5:00pm to  Celebration will be held on October 21, 2018 from 3:00pm to 5:00pm.  Park beginning at 10:30am.  to7 7:00 pm. 8:00 pm.  COUNCIL COMMENT: Mayor Johnnie Greene asked if anyone on the Council had any Mayor Johnnie Greene stated that he appreciated everyone coming out and Deputy Jon Hawn  questions or comments at this time.  for what he does for the community and the County. Keith Warren wanted to thank everyone for coming out.  Joe Norman wanted the thank everyone for coming out and hoped everyone had a safe trip  home.  COUNCIL ADJOURN: Mayor Johnnie Greene asked for a motion to adjourn.  Joe Norman made a motion, and Clay Wilson seconded, to adjourn the meeting. All were in  favor.  Johnnie Greene, Mayor  Julie A. Good, Town Clerk    AGENDA ITEM7A  MEMO DATE: SUBJECT:  November 20, 2018 Recognition: Recycle Rewards Program  Discussion:  The Town of Sawmills would like to congratulate Kenneth Harris on winning the Recycle Rewards Program for the month ofNovember. Mayor Johnnie Greene will present him 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 ITEMS 8A  MEMO DATE: SUBJECT:  November 20, 2018 Financial Matters: Employee Longevity Pay  Discussion:  The Town of Sawmills has an employee longevity pay plan that has been historically paid out  during the first pay period in December. The pay schedule is as follows: 26 years and up 21-25 years 16-20 years 10-15 years 6-9 years 2-5 years 7n months-1 year Or months-6 months  $900.00 $750.00 $600.00 $450.00 $300.00 $150.00 $50.00 $0.00  There are sufficient funds in the budget to cover this expenditure.  Recommendation:  Staffrecommends: Council approve the issuance of longevity paychecks to Town employees paid  out the first pay period in December.    AGENDA ITEM 8B  MEMO DATE: SUBJECT:  November 20, 2018 Financial Matters: Request for Donation  Discussion:  The Town has received a request from the Caldwell County Veterans Honor Guard Inc. fora  donation in the amount of$100.00 (one hundred dollars). There are sufficient funds in the budget for this request.  Recommendation:  Staff recommends Council discuss this matter and decide how they wish to proceed.    Town of Sawmills  Johnnie Greene, Mayor  Christopher Todd, Town. Administrator  Funding Request:  Name of Organization: Cadwei ounts Vebuawo  Phone  Higvor ua-a  886)394-8013  Permanent Address: PoBy0a  City:  State; NC Fed Tax ID# #:  Zip Code:  Mudem  084038  Contact Name:  Jimouy Bodor  Amount Requested: Date Funds Needed: Complete descriptign of project:  Amount needed for the Project: Project Begin/End Dates:  Ic0.c0  Ammo or AtoND Bhoakww  How will the funds be used?:  How will this project benefit the community?:  OfficialTown Use Only  Date application received: nlelaois Date approved/denied (circle one): Date check written:  Date presented to Council:_ nlaolaos  Amount approved:  Available balancei in Governing Body Expense Acct: $1,100.00  Check #:  Amount:  This instrument has been preaudited In the manner required by the Local Government Budget and Fiscal Control efpundof    AGENDA ITEM 8C  MEMO DATE: SUBJECT:  November 20, 2018 Financial Matters: Approve Auditors Contract for FY2018-2019  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 $11,400.00 (eleven thousand four hundred dollars) includes the following:  will cover the period ofJuly 1, 2018 to June 30, 2019.  Audit:  $8,550.00 $2,850.00  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:  Staffrecommends Council approve a contract with Lowdermilk, Church & Co., L.L.P. in the. amount of $11,400.00 (eleven thousand four hundred dollars) and covering the period ofJ July 1,  2018 to June 30, 2019.    Lowdermilk Church & Co.,L.L.P. Certified. Public. Accountants  121N. Sterling Street Phone: (828)433-1226 Fax: (828)433-1230  Morganton, North Carolina 28655  To the Honorable Mayor and Members of the Town Council  October 22,2018  Town of Sawmills Sawmills, North Carolina  We are pleased to confirm our understanding of the services we are to provide Town of Sawmills for the year ended June 30, 2019. We will auditt the financial statements ofthe governmental activities, thel business-type activities, each: major fund, and the aggregate remaining fund information, including the related notes to the financial statements, which collectively comprise the basic financial statements ofTown of Sawmills as ofand for the year ended June! 30, 2019. Accounting standards generally accepted in the United States of America provide for certain required supplementary information (RSI), such as Management's Discussion and Analysis (MD&A), to supploment Town of Sawmilis' basic financial statements. Suchi information, although not apart of the basic financial statements, is required by the Governmental Accounting Standards Board who considers iti to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. As part of our engagement, we will apply certain limited procedures to Town of Sawmills' RSI in accordance with auditing standards generally accepted in the United States of America. These limited proçedures will consist ofinquiries 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 otherl knowledge we obtained during our audit ofthe basic financial statements. We will not express an opinion or provide any assurance on the 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 U.S.. generally accepted accounting principles and willl be subjected to certain limited procedures, but will notl be  audited: 1) 2)  Management's Discussion and Analysis Budgetary Comparison Information Liability (Asset) and Schedule of Contributions  3) Local Government Employees' Retirement System Schedule ofthe Proportionate Share ofNet Pension We have also been engaged to report on supplementary information other than RSI that accompanies Town of Sawmills' financial statements. Wer will subject the following supplementary information to the auditing procedures applied in our audit of 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 auditing standards generally accepted in the United States of America, and we will provide an opinion on it in relation to the financial statements as a whole, in a report combined with our auditor's report on  the: financial statements:  1) 2) 3)  Combining and Individual Fund Financial Statements  Budgetary Schedules Other Schedules    Audit Objectives  The objective of our audit is the expression of opinions as to whether your financial statements are fairly presented, in all material respects, in conformity with U,S. generally accepted accounting principles, and tor report on the fairness oft the supplementary information referred to in the second paragraph when consideréd in relation to the financial statements as a whole, Our audit will be conducted in accordance with auditing standards gonerally accepted ini the United States of America and the standards for financial audits contained in Government. Auditing Standards, issued by the Comptroller General oft the United States, and will include tests of the accounting records ofTown of Sawmills, and other procedures we consider necessary, to enable us to express such opinions. We will issue a written report upon completion of our audit ofTown of Sawmills' financial statements. Our report will be addressed to the Town Council oft the Town of Sawmills, We cannot provide assurance that unmodified opinions will be expressed, Circumstances may arise in which it is neçessary for us to modify our opinions or add emphasis-of-matter or other-matter paragraphs. Ifour 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 will also provide a report (that does not include an opinion) on internal control related to the financial statements and compliance with the provisions of1 laws, regulations, contracts, and grant agreements, noncompliance with which could have ai material effect on the financial statements as required by Government Auditing Standards. The report on internal control and on compliance and other matters will include aj paragraph that states (1) that the purpose of the reporti is solely to describe the scope oft testing ofinternal control and compliance, and the results oft that testing, and not to provide an opinion on the effectiveness oft the entity's internal control on compliance, and (2) that 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 paragraph will also state that the report is not suitable for any other purpose. Ifduring our audit we become aware that Town of Sawmills is subject to an audit requirement that is not encompassed in thet terms oft this engagement, we will communicate to management and those charged with governance that an audit in accordance with U.S. generally accepted auditing standards and the standards for financial audits contained in Government Auditing Standards  may withdraw from this engagement.  may not satisfy the relevant legal, regulatory, or contractual requirements.  Audit Proeedures--General  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in thei financial statements; therefore, our audit will involve. judgment about the number of transactions to be examined and the areas to be tested, An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. 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 of assets, or (4) violations of laws or governmental regulations that are attributable to the government or to acts by management or employees acting on behalf of the government. Because the determination of abuse is subjective, Government Auditing Standards do not expect auditors to Because oft the inherent. limitations of an audit, combined with the inherent limitations ofi internal control, and because we will not perform a detailed examination of all transactions, there is a risk that material misstatements may exist and: not be detocted by us, even though the audit is properly planned and performed in accordance with U.S. generally accepted auditing standards and Government Auditing Standards. In addition, an audit is not designed to detect immaterial misstatements or violations of laws or governmental regulations that do noth havea direct and material effect on the financial statements. However, we willi inform the appropriate level of management ofa any material errors, any fraudulent financial reporting, or any misappropriation of assets that come to our attention, We will alsoi inform the appropriate level ofr management 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. Our responsibility as auditors is limited to the period covered by our audit and does  provide reasonable assurance of detecting abuse.  not extend to later periods for which we are not engaged as auditors.    Our procedures willi include tests ofdocumentary evidence supporting thei transactions recorded in the accounts, and may include tests of the physical existence ofinventories and direct confirmation ofreceivables and certain other assets and liabilities by correspondence with selected individuals, funding sources, creditors, and financial institutions. We will request written representations from your attorneys as part ofthe engagement, and they may bill you for responding tot this inquiry. Att the conclusion of our audit, we will require certain written representations from you about your responsibilities for the financial statements; compliance with laws, regulations, contracts, and grant agreements; and other responsibilities required by generally accepted auditing  standards.  Audit] Procedures--Internal Control  Our audit will include obtaining an understanding oft the government and its enyironment, including internal control, sufficient to assess the risks ofmaterial misstatement oft the financial statements and to design the nature, timing, and extent off further audit procedures. Tests of controls may be performed tot 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 toj 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 bel 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. Auditing Standards. An audit 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 those charged with governance internal control related matters that are required to be communicated under AICPA professional standards and Government. Auditing Standards.  Audit] Frocedure-Complane  As part ofobtaining reasonable assurance about whether the financial statements are free of material misstatement, we will perform tests ofTown of Sawmills's compliance with the provisions ofa applicable laws, regulations, contracts, agreements, and grants, However, the objective of our audit will not bet to provide an opinion on overall compliance, and we will not express such an opinion in our report on compliançe issued  pursuant to Government Auditing Standards.  Other Services  We will also assist inj preparing the financial statements and related notes ofTown of Sawmills in conformity with U.S. generally accepted accounting principles based on information provided by you. We will also prepare the following based on information provided by you: AFIR, and Unit Data Input Worksheet. These nonaudit services do not constitute an audit under Government Auditing Standards and such services will not be conducted in accordance with Government, Auditing Standards. We will perform the services in accordance with applicable professional standards. The other services are limited to the financial statement services previously defined. We, in our sole professional judgement, reserve the right to refuse to perform any procedures or take any action that  could be construed as assuming management responsibilities.    Management Responsibilities  Management is responsible for designing, implementing, establishing, and maintaining effective internal controls relevant to the preparation and: fair presentation off financial statements that are free from material misstatements, whether due to fraud or error, including evaluating and monitoring ongoing activities, to help ensure that appropriate goals and objectives are met; following laws and regulations; and ensuring that management and financial information is reliable and properly reported. Management is also responsible for implementing systems designed to achieve compliance with applicable laws, regulations, contracts, and grant agreements. You are also responsible for the selection and application of accounting principles, for the preparation and fair presentation ofthe financial statements and all accompanying information in conformity with U.S. generally accepted accounting principles, and for compliance with applicable laws and regulations and the provisions of Management: is also responsible for making all: financial records and related information available to us and for the accuracy and completeness of that information. You are also responsible for providing us with (1) access to all information, ofwhich you are aware, that is relevant to the preparation and fair presentation ofthe financial statements, (2) additional information that we may request for the purpose ofthe audit, and (3)unrestricted access toj persons within the government from whom we determine it necessary to obtain audit evidence. Your responsibilities include adjusting the financial statements to correct material misstatements and for confirming to us in the written representation letter that the effects ofany uncorrected misstatements aggregated by us during the current engagement and; pertaining to the latest period presented are immaterial, both You are: responsible: fort the design and implementation of programs and controls to prevent and detect fraud, and for informing us about all known or suspected fraud affecting the government involving (I): management, (2) employees who have significant roles in internal control, and (3) others where the fraud could have ai material effect on the financial statements. Your responsibilities include informing us ofyour knowledge of any allegations of 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 and for taking timely and appropriate steps to remedy fraud and noncompliance with provisions of laws, regulations, contracts You are responsible for thej preparation oft the supplementary information, which we have been engaged toi report on in conformity with U.S. generally accepted accounting prinoiples. You agree to include our report on the supplementary information in any document that contains, and indicates that wel 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 oft the 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 ofr measurement or presentation have not ifthey have changed, the reasons for such changes); and (4) youl have disclosed to us any significant assumptions or interpretations underlying the measurement or presentation oft the supplementary information.  contracts and grant agreements.  individually and in the aggregate, to the: financial statements taken as a whole,  or grant agreements, or abuse that we report.  changed from those used in the prior period (or,    Management is responsible for establishing and maintaining a process for tracking the status ofaudit findings and recommendations. Management is also responsible for identifying and providing report copies ofp previous financial audits, attestation engagements, performance audits or other studies related to the objectives discussed int the Audit Objectives section ofthis letter. This responsibility includes relaying to us corrective actions taken tos address significant findings and recommendations resulting from those audits, attestation engagements, performance audits, or other studies. You are also responsible for providing management's views on our current findings, conclusions, and: recommendations, as well as your planned corrective actions, for the report, andi for With regard to the electronic dissemination of audited financial statements, inoluding financial statements published electronically on your website, you understand that electronic sites are a means to distribute information and, therefore, we are not required to read thei information contained in these sites or to consider the You agree to assume all management responsibilities relating to the financial statements and related notes and any other nonaudit services we provide. You will be required to acknowledge in the management representation letter our assistance with preparation ofthe financial statements and related notes and that you have reviewed and approved the financial statements and related notes prior to their issuance and! have acceptedi responsibility for them. Further, you agree to oyersee the nonaudit services by designating an individual, preferably from senior management, with suitable skill, knowledge, or experience; to evaluate the adequacy and results of those  the timing and format for providing that information.  consistency of other information in the electronic site with the original document.  services; and to accept responsibility for them. Engagement Administration, Fees, and Other  We understand thaty your employees will prepare all cash, accounts receivable, or other confirmations and We will provide çopies of our reports to the Town; however, management: is responsible for distribution oft the reports and the financial statements. Unless restricted by law or regulation, or çontaining privileged and confidential information, copies of our reports are to be made available for public inspection. The audit documentation fort 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 ai timely manner, to the Local Government Commission or its designee, a federal agency providing direct or indirect funding, or the U.S. Government. Accountability Office for purposes of a quality review of the audit, to resolve audit findings, or to carry out oversight responsibilities. We will notify you of any such request. Ifrequested, access to such audit documentation will 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 by the Local Government Commission. If we are aware that a federal awarding agency or auditee is contesting an audit finding, we will contact the party(ies) contesting the audit James E. Lowdermilk is the engagement partner and is responsible for supervising the engagement and signing the reports or authorizing another individual to sign them. To ensure that Lowdermilk Church & Co., LLP.'s independence is not impaired under the AICPA Code ofProfessional. Conduct, you agree to inform the engagement partner before entering into any substantive employment discussions with any of our personnel.  schedules we. request and will locate any documents selected by us for testing.  other governmental agencies.  finding for guidance prior to destroying the audit documentation,    Our fee fort these services will 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 $11,400. Our standard hourly rates vary according to the degroe of responsibility involved and the experience level of thej personnel assigned to your audit, Our invoices for these feès will be rendered each month as work progresses and are payable on presentation. In accordance with our firm policies, work may be suspended ifyour 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 willl be deemed to have been completed upon written notifiçation oft termination, even if we have not completed our report. Yous will be obligated to compensate us for all time expended and to reimburse usi for all out-of-pooket costs through the date oft termination. The above fee is based on anticipated cooperation from your personnel and the assumption that unexpected circumstances will not be encountered during the audit. Ifsignificant additional time is necessary, we will discuss it with you and arrive at ai new fee estimate before we incur the additional costs. We are required to inform you that we charge interest at rate of 18% per annum on all invoices over 30 You may request that wej 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 ofany other written communication from us documenting such additional services, our services will continue to be governed by the Our audit engagement ends on delivery of our audit report. Any follow-up services that might be required will be as separate, new engagement. The terms and çonditions oft that new engagement willl be governed by a new, We are providing you with a copy of our 2015 external peer review report which accompanies this letter. We appreciate the opportunity to be of service to' Town of Sawmills and believe this letter accurately summarizes the significant terms of our engagement. Ifyou 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.  days old.  terms of this engagement. letter.  specific engagement letter for that service.  Very trulyyours,  James B.1 Lowdermilk Partner RESPONSE;  Bs  This letter correctly sets forth the understanding ofTown of Sawmills.  Management signature: Title: Date:  Governance signature: Title: Date:    BERNARD ROBNSON &Company, LLP Greensboro, NCI Raleigh, NCI Wiston-salen, NC  CerlfedPubhlcAccuntantrandAdior, Since 1947  System Review Report  September 24, 2015  To1 thel Partners ofLowdermilk Church & Co.L.L.P. and: the Peer) Review Committee ofthe North Carolina Association of Certified Public Accountants  We have reviewed the system of quality control for the accounting and auditing practice of Lowdermilk Church & Co., L.L.P. (the firm) in effect for the year ended: May 31,2015. Our peer review was conducted in. accordance with the Standards for Performing and Reporting on Peer Reviews established by the Peer Review Board of the American Institute of Certified Public Accountants. As a part of our peer review, we considered reviews by regulatory entities, if applicable, in determining the nature and extent of our procedures. The firm is responsible for designing a system. of quality control and complying with it to provide the firm with reasonable assurance of performing and reporting in conformity with applicable professional standards in all material respects. Our responsibility is to express an opinion on the design of the system of quality control and the firm's compliance therewith based on our review. The nature, objectives, scope, limitations of, and- the procedures performed in a System Review.are described in the As required by the standards, engagoments selected for review included engagements performed Ino our opinion, the system of quality çontrol for the accounting and auditing practice of Lowdermilk Church & Co., LLP. in effect for the year ended May 31, 2015, has been suitably designed and complied with to provide the firm with reasonable assurance.of performing and reporting in conformity with applicable professional standards in all material respects. Firms can receive a rating of pass, pass with deficiency(ies) or fail. Lowdermilk Church & Co.L.LP.has  standards at wwwAcpaorypmsmmsy,  under Govermment. Auditing Standards and audits of employee benefit plans.  received apeer review: rating ofpass.  Bunad Robmem Conpangn B8P BERNARD ROBINSON &COMPANY,LLP. Ofice: 1501 Highwoods Blvd, S8-.00.CesmbApNCZAD Maling P.O. Boxl9608.Grensbor,NCZ7419-9608 Phone( 0192*-94-XC192945-wmhtepacm  Membero ofa Global/ Assocation dfhndpendemtAupumirg andConsutancyPms  SPES. ess,a    LGC-205 The Governing Board Town Council of Primary Government Unit Town of Sawmills  CONTRACT TO AUDIT ACCOUNTS  Rev. 10/2018  and Discretely Presented Component Unit (DPCU) (if applicable)  Primary Government Unit, togetherwith. DPCU (f applicable), herelnafferreferred: to as Governmental Unit(s)  and Auditor Name Lowdermilk Church & Co., LLP Auditor Address Hereinafter. referred to as Auditor  121 North Sterling Street, Morganton, NC 28655  for Fiscal Year Ending 06/30/19 hereby agree as follows:  Audit Report Dus Date 10/30/19 Must be within four months OfFYE  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 oft 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 govemmental and enterprise fund, and the aggregate remaining fund information (non-major government and enterprise funds, the internal service fund type, and the fiduciary fund 2. At a minimum, the Auditor shall conduct his/her audit and render his/her report in accordance with GAAS. The Auditor shall perform the audit in accordance with Government Auditing Standards if required by the State Single Audit Implementation. Act, as codified in G.S. 159-34. If required by OMB Uniform Administration Requlrements, Cost Principles, and Audit Requirements for Federal. Awards (Uniform Guldance) and the State Single Audit Implementation. Act, the Auditor shall perform a Single Audit. This audit and all associated audit documentation may be subject to review by Federal and State agencles in accordance with Federal and State laws, including the staffs of the Office of State Auditor (OSA) and the Local Govemment Commission (LGC). If the audit requires a federal single audit performed under the requirements found in Subpart F of the Uniform Guidance ($200.501), it is recommended that the Auditor and GovernmentalUni(e) jointly agree, in advance of the execution of this contract, which party is responsible for submission oft the audit and the accompanying data collection form to the Federal Audit Clearinghouse as required under the Uniform Ifthe audit and Auditor communication are found in this review to be substandard, the results of the review may be forwarded to the North Carolina State Board of CPA Examiners (NC State Board). County and Multi-County Health Departments: The Office of State Auditor will require Auditors of these Governmental Units to perform agreed upon procedures (AUPs) on eligibility determination on certain programs. Both. Auditor and Governmental Unit agree that Auditor shall complete and report on these AUPS on  types).  Guidance ($200,512).  Page 1of8    L.GG-205 OSA.  CONTRACT TO AUDIT ACCOUNTS  Rev, 10/2018  eligibility determination as required by OSA and in accordance with the instructions and timeline provided by 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 at 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 oft 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. Ifthis audit engagement is subject to the standards for audit as defined in Govemment. Auditing Standards, 2011 revisions, issued by the Comptroller General oft the United States, then by accepting this engagement, the Auditor warrants that he/she has met the requirements for a peer review and continuing education as specified in Government Auditing Standards. The Auditor agrees to provide a copy of 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 of 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 of the LGCf fora Ifthe 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) and fail to include all disclosures required by GAAP, the Auditor shall provide an explanation as to why in an attachment to this 6. Itis 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 this due date or the audit fee, an amended contract along with a written explanation of the delay shall be submitted: to 7. Iti is 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, tot 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 oft 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. 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 oft the LGC for approval. The invoice marked 'approved 'with approval date shall be returned to  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.  the Secretary of thel LGC for approval.  report with the Secretary of thel LGC.  Page2of8    LGC-205  CONTRACT TO. AUDIT ACCOUNTS  Rev. 10/2018  the Auditor to present to the Governmental Unit(s) for payment. Approval is notr required on contracts and 9. 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, 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 State Board of CPA 10, If the 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 compliançe with the revenue bond rate covenant. Additionally, the Auditor shall submit to LGC staff simutaneously 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 11. After completing the audit, the Auditor shall submit to the Governing Board a written report of audit. This report shall include, but not bel limited to, the following information: (a) Managements Discussion and Analysis, (b) the 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 required number of copies of the report of audit tot the Governing Board upon completion. 12. Ifthe 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 aiso 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 to LGC Staff. The pre-issuance review report shall 13. The Auditor shall submit the report of audit in PDF format to LGC Staff when (or prior to) submitting the final invoicé for services rendered. The report of audit, as filed with the Secretary oft the LGC, becomes a matter of public record for inspection, review and copy in the offices oft the LGC by anyi interested parties. Any subsequent revisions to these reports shall be sent to the Secretary oft the LGC along with an Audit Report Reissued Form (available on the Department of State Treasurer website). These audited financial statements, excluding the Auditors' opinion, may be used int 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 If the OSA designates certain programs to be audited as major programs, as discussed in Item 2, a turnaround document and a representation letter addressed to the OSA shall be submitted to LGC Staff. 14. 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 by the  invoices for system improvements and similar services of a non-auditing nature,  Examiners (see Item 12).  bond documents.  accompany the audit report upon submission to LGC Staff,  another deadline is agreed to by LGC staff.  Page3of8    LGC-205  CONTRACT TO AUDIT ACCOUNTS  Rey.10/2018  Secretary of the LGC, this contract may be modified or amended toi include the increased time, compensation, 15. Ifan approved contract needs to be modified or amended for any reason, the change shall be made in writing, on the Amended LGC-205 contract form and pre-audited ift the change includes a change in audit fee (pre-audit requirement does not apply to charter schools). 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. Its shall then be submitted to the Secretary of the LGC for approval. No change to the audit contract shall be effective 16. Acopy of the engagement letter, issued by the Auditor and signed by both the Auditor and the Governmental Unit(s), shall be attached to this contract, and shall be incorporated. by reference as iff 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 specifiçally deleted in Item 26 of this contract. Engagement letters containing Indemnification clauses shall not be accepted by! LGG 17. Special provisions should be limited. Please list any special provisions in an attachment. 18. As separate contract should not be made for each division to be audited or report to be submitted. ffa DPCU is subject to the audit requirements detailed in the Local Government Budget and Fiscal Control. Act and as separate audit report is issued, a separate audit contract is required. If a separate report is not to be issued and the DPCU is included ini the primary government audit, the DPCU shall be named along with the parent government on this audit contract. DPCU Board approval date, signatures from the DPCU Board chairman and 19. The contract shall be executed, pre-audited (pre-audit requirement does not apply to charter schools), and physically signed by all parties including Governmental Unit(s) and the Auditor, then submitted in PDF 20, The contract is not valid until it 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 21. 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 toi 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 22. 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 pald to the Auditor (if applicable), and (c) no termination shall be effective until approved in writing by the Secretary of the LGC. 23. 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 24. 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.  unless approved by the Secretary of the LGC, the Governing Board, and the Auditor.  Staff.  finance officer also shall be included on this contract.  format to the Secretary of the LGC. the contract is approved.  tor requesting the return of records.  any subsequent occasion or instance.  Secretary of the LGC.  Page 4of8    LGC-205  CONTRACT TO AUDIT ACCOUNTS  Rev. 10/2018  25. 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 26. All of the above paragraphs are understood and shall apply to this contract, except the following  NCGS Chapter 64, Article 2.  numbered paragraphs shall be deleted (See Item 161 for clarification).  27. The process for submitting contracts, audit reports and invoices is subject to change. Auditors and units should use the submission process and instructions in effect att the time of submission, Refer tot the N.C. Department of State Treasurer website at ihtps/ww.notreasureasurercomagPageA/Audl-Fomms-anc- 28. All communications regarding audit contract requests for modification or official approvals will be sent to  Resources.aspx.  the email addresses provided on the signature pages that follow.  Page 5of8    LGC-205  CONTRACT TO AUDIT ACCOUNTS FEES FOR. AUDIT SERVICES  Rev. 10/2018  For all non-attest services, the Auditor shall adhere tot the independence rules of the AICPA Professional Code of Conduct and Governmental, Auditing Standards (as applicable), Bookkeeping and other non- attest services necessary to perform the audit shall be included under this contract. However, bookkeeping assistance shall be limited to the extent that the Auditor is not auditing his or her own work or making management decisions. The Governmental Unit shall designate an individual with the suitable skills, knowledge, and/or experience necessary to oversee the services and acçept responsibility fort the results of the services. Finançial statement preparation assistance shall be deemed a "significant threat" requiring the Auditor to apply safeguards sufficient to reduce the threat to an acceptable level. The Auditor shall maintain written documentation of his or her compliance with these standards in the audit 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 auditi 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. See Items 8, 9, and 12 for detalls on other allowable and excluded fees. Prior to submission of the completed audited financial report, applicable compliance reports and amended contract (if required) the Auditor may submit invoices for approval for services. rendered, not to exceed 75% of the total of the stated fees below. If the currènt contracted fee is not fixed in total, invoices for services rendered may be approved for up to 75% of the prior year audit fee. Should the 75% cap provided below conflict with the cap calculated by LGC staff based on the prior year audit fee on file with 20 NCAC 03 .0505: All invoices for services rendered in an audit engagement as defined in 20 NCAC: 3. .0503 shall be submitted to the Commission for approval before any payment is made.  work. papers.  the LGC, the LGC calculation prevails.  Payment before approval is a violation of law.  PRIMARY GOVERNMENT FEES Town of Sawmills $8,550 $2,850 $-0-  Primary Government Unit Writing Financial Statements All Other Non-Attest Services  Audit  75% Cap for Interim Invoice Approval $8,550.00  DPCU FEES (If applicable)  Discretely Presented Component Unit Writing Financial Statements All Other Non-Attest Services 75% Cap for Interim Invoice Approval $  Audit  $ $ $  Page 6 of8    LGC-205  CONTRACT TO AUDIT ACCOUNTS SIGNATURE PAGE AUDIT FIRM  Rev. 10/2018  Audit Firm Lowdermilk Church & CO.,LLP James EI Lowdermilk Date  Authorized Firm Representative (typed or printed)  ml sh im.owdemilk@lowdemmlkc.hur-hspacom  Eipail Address  Ir1-2018  GOVERNMENTAL UNIT  Governmental Unit Town of Sawmills  Date Primary Government Unit Governing Board Approved Audit Contract (Ref: G.S. 159-34(a) or G.S. 115C-447(a))  Mayor/Chairperson (typed or printed)  Signature Email Address grer@owmohsmmllon  Johnnie Greene Date  Chair of Audit Committee (typed or printed, or "NA") Signature  N/A Date  Email Address  GOVERNMENTAL UNIT - PRE-AUDIT CERTIFICATE (Pre-audit certificate not required for charter schools) Required by G.S. 159-28(a1) or G.S. 115C-441(a1)  This instrument has been pre-audited: in the manner required by The Local Govemment. Budget and Fiscal  Control Act or by the School Budget and Fiscal ControlAct. Primary Governmental Unit Finance Officer (ypedorp prinied) Signature  Karen Clontz Date of Pre-Audit Certificate  Email Address kaontrelbowmosawalscon  Page7of8    LGC-205  CONTRACT TO AUDIT. ACCOUNTS SIGNATURE PAGE-D DPCU (complete only if applicable)  Rev. 10/2018  DISCRETELYF PRESENTED COMPONENT UNIT  DPCU  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 (Pre-audit certificate not required for charter schools) Required by G.S. 159-28(a1) or G.S. 115C-441(a1)  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.  Page 8 of8    AGENDA ITEM 8D  MEMO DATE: SUBJECT:  November 20, 2018 Financial Matters: Budget Amendment- Baird Park Lighting  Discussion:  The Town staff was directed by the Town Council during the regularly scheduled October Town Council meeting, to proceed with the development of the Baird Park Lighting Project. At this time a budget amendment is necessary to facilitate the project development. Staff is waiting for some finalized numbers from Musco in order finish the budget amendment  draft. This information will be available closer to the council meeting.  Recommendation: lighting upgrades.  Staffrecommends Council approve the budget amendment, in order to fund the Baird Park    AGENDA ITEM9 9A  MEMO DATE: SUBJECT:  November 20, 2018  Discussion:  Timberline Property Update  Discussion:  The staff wishes toj provide the Town Courcil with an update regarding the Timerline Property, commonly known as Kohler and Campbell. Per the request of the council Town Attorney, Terry Taylor has sent a Notice of Intent to Foreclose. This notice includes explains that all owed taxes must be brought up to date by November 19th, 2018, and if not the town will begin the process of Additionally, the Town Administrator, Christopher Todd has been in contact with the UNC School Government Development Finance Initiative (DFI) to see ifthis location would qualify for a study. The DFI would act as a consulting firm, study the property, and work to provide a  foreclosure.  plan for revitalization of some form.  Recommendation: lighting upgrades.  Staff recommends Council approve the budget amendment, in order to fund the Baird Park    AGENDA ITEMI 11A  MEMO DATE: SUBJECT:  November 20, 2018 Updates: Code Enforcement Monthly Report  Discussion:  The attached report shows the progress that the Town of Sawmills Planner Becca Bleich  continues to make throughout the town.  Recommendation: No Council action required.