AGENDA Sawmills Town Hall Tuesday, November 17, 2015  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  Mayor Pro" Tem Trena McRary Kirby Mayor Pro Tem Trena McRary Kirby  A. October 20, 2015 Regular Meeting Minutes B. October 20, 2015 Closed Session Minutes November 9, 2015Special Meeting Minutes  Mayor Pro Tem Trena McRary Kirby Mayor Pro' Tem Trena McRary Kirby Mayor Pro Tem Trena McRary Kirby  6. Public Comment 7. Recognitions: A. Recycle Rewards B. Yard ofl Month Winners 8. Financial: A. Employee Longevity Pay  Mayor Pro Tem Trena McRary Kirby Mayor Pro Tem Trena McRary Kirby Mayor Pro Tem Trena McRary Kirby Mayor Pro Tem Trena McRary Kirby  B. Approve Auditors Contract forl FY2014-2015  9. Public Comment: 10. Updates:  A. SBEA October Progress Report B. November Code Enforcement Report Comprehensive Steering Committee Report D. Duff Drive Sewer Progress Report E. Council Comment 11. Closed Session-Attomey/Clent Privilege 12. Closed Session-Personnel 13. Adjourn  Mayor Pro' Tem Trena McRary Kirby Mayor Pro Tem Trena McRary Kirby Mayor Pro Tem Trena McRary Kirby Mayor Pro Tem Trena McRary Kirby Mayor Pro Tem Trena McRary Kirby Mayor Pro Tem Trena McRary Kirby Mayor Pro Tem Trena McRary Kirby Mayor Pro Tem Trena McRary Kirby    Page 1of5  TUESDAY, OCTOBER 20, 2015  TOWN OF SAWMILLS REGULAR COUNCIL MEETING  6:00 PM  COUNCIL PRESENT Joe Wesson Johnny Wilson Gerelene Blevins COUNCIL ABSENT Trena McRary Kirby Jeff Wilson  STAFF PRESENT Christopher Todd Julie Good Terry Taylor Elinor Hiltz  CALL TO ORDER: Town Administrator Christopher Todd called the meeting to order.  INVOCATION: Keith Warren gave the invocation.  PLEDGE OF ALLEGIANCE: Town Administrator Christopher Todd led the Pledge of ADOPT AGENDA: Town Administrator Christopher Todd asked for a motion to adopt the October 20,. 2015, agenda with the addition of Agenda Item 11: Closed Session: Joe Wesson made a motion, and Johnny Wilson seconded, to adopt the agenda with the addition of Agenda Item 11: Closed Session: Attorney/Client Privilege. All were in favor, APPROVE SEPTEMBER 15, 2015 REGULAR MEETING MINUTES: Town Administrator Christopher Todd asked for a motion to approve the September 15, 2015 Gerelene Blevins made a motion, and Joe Wesson seconded, to approve the minutes. All APPROVE SEPTEMBER 15, 2015 CLOSED SESSION MINUTES: Town Administrator Christopher Todd asked for a motion to approve the September 15, 2015 Gerelene Blevins made a motion, and Joe Wesson seconded, to approve the minutes. All  Allegiance.  Attorney/Client Privilege.  regular meeting minutes. were in favor.  closed session minutes. were in favor.  PUBLIC COMMENT: Town Administrator Christopher Todd asked if anyone had any  questions or comments at this time.  :n Sowmille atated that on Anonst 13 2015    October 20, 2015 Page 2 of4  she filed a complaint about a property that adjoins hers at 4805 Helton Road. Mrs. Hall stated that her renter has complained about the smell coming from the neighbor's property and also complained about junk cars and trash in general. After Town Planner Elinor Hiltz went to look at the property she noticed several violations on other properties in the area, including Mrs. Hall's property. Town Planner Elinor Hiltz sent letters of violation out to all property owners including Mrs. Hall. Mrs. Hall's violation was having inside furniture outside. Mrs. Hall stated that the couch was going in the trash and that there had already been a work order placed. Mrs. Hall expressed her desire for the properties on Helton Road  to be cleaned up. RECOGNITIONS:  RECYCLE REWARDS WINNER: Town Administrator Christopher Todd announced Mr. Thomas Miller, Sr., as the October Recycle Rewards winners. A credit of twenty-eight dollars ($28.00) will be added to his sanitation bill. Town Administrator Christopher Todd  stated that his certificate would be available at the Town Hall for pick up.  No Council action was required.  YARD OF THE MONTH WINNERS: Town Administrator Christopher Todd announced Mike and Diane Bennett from the 28630 zip code, and Chris and Nikki Poteet, from the 28638 zip code, as the October Yard of the Month winners. Town Administrator Christopher Todd stated that the certificate would be available at the Town Hall for pick up.  No Council action was required.  FINANCIAL:  REQUEST FOR DONATION TO CALDWELL COUNTY: Town Administrator Christopher Todd stated that Caldwell County Schools requested a donation in the amount Johnny Wilson made a motion, and Gerelene Blevins seconded, to give a donation in the amount of $14,000.00 (fourteen thousand dollars) to Caldwell County Schools. All were in  of$14,000.00 (fourteen thousand dollars).  favor.  PUBLIC COMMENT: Town Administrator Christopher Todd asked if anyone had any  questions or comments at this time. No one wished to speak.    October 20, 2015 Page 3 of4  UPDATES:  SBEA SEPTEMBER PROGRESS REPORT: Town Administrator Christopher Todd stated that Sherry Long, from the Western Piedmont Council of Governments, has enclosed  aj progress report for the SBEA project 12-C-2443.  No Council action was required.  OCTOBER CODE ENFORCEMENT REPORT: Town Administrator Christopher Todd stated that the Town Planner Elinor Hiltz has enclosed an updated status report of Code Enforcement cases and the progress that has been made on each case as of October 2015.  No Council action was required.  COUNCIL COMMENT: Town Administrator Christopher Todd asked if anyone on the Joe Wesson stated that everything was going smoothly and he had not received any calls or complaints. Joe Wesson stated that he has only heard good things about Town Administrator Christopher Todd. Joe Wesson also thanked Keith Warren for being at the Johnny Wilson stated that things with the Town were looking good. Johnny Wilson also wanted to remind everyone about the Trunk and Treat at the Farmer's Market on October  Council had any questions or comments at this time.  meeting.  27,2015.  CLOSED SESSION: ATTORNEYICLIENT PRIVILEGE: Town Administrator Joe Wesson made a motion, and Johnny Wilson seconded, to go into closed session at 6:20 Joe Wesson made a motion, and Gerelene Blevins seconded, to come out of closed session  Christopher Todd asked for a motion to go: into closed session.  pm. at 6:27 pm.    October 20, 2015 Page4 40 of4  COUNCIL ADJOURN: Town Administrator Christopher Todd asked for a motion to Johnny Wilson made a motion, and Joe Wesson seconded, to adjourn the meeting. All were  adjourn. in favor.  Julie A Good, Town Clerk  Trena McRary Kirby, Mayor Pro-Tem    Page 1of1  MONDAY,NOVEMBER9,2015  TOWN OF SAWMILLS SPECIAL COUNCIL MEETING  6:00 PM  COUNCIL PRESENT Trena McRary Kirby Joe Wesson Jeff Wilson Gerelene Blevins Johnny Wilson  STAFF PRESENT Christopher Todd Julie Good Elinor Hiltz Terry Taylor  CALL TO ORDER: Mayor Pro-Tem Trena McRary Kirby called the meeting to order.  INVOCATION: Councilman Joe Wesson gave the invocation.  PLEDGE OF ALLEGIANCE: Mayor Pro-Tem Trena McRary Kirby led the Pledge of ADOPT AGENDA: Mayor Pro-Tem Trena McRary Kirby asked for a motion to adopt the Jeff Wilson made a motion, and Joe Wesson seconded, to adopt the agenda. All were in  Allegiance. agenda. favor.  EDGEWATER SUBDIVISION REVIEW:  REVIEW OfFINAL PLAT: Town Planner Elinor Hiltz stated that the Town had received the application for the Edgewater Subdivision in April of 2015. The Subdivision Review Board had been working with the Edgewater developers in preliminary status from April to August of 2015, In August of 2015 the Subdivision Review Board gave Edgewater developers changes that needed to be addressed in order for the Final Plat to be reviewed and approved. The Edgewater developers made those changes and the Final Plat was approved by the Subdivision Review Board and the Planning Board on November 5, 2015, ROAD INSPECTIONS AND CERTIFICATIONS: Town Planner Elinor Hiltz stated that David Poore, Town Engineer, had performed the final inspection for the Edgewater Doug Eller with the Department of Transportation approved the driveway access permit. Justin C. Church with BREC stated in a letter dated October 30, 2015 in the final certification that the infrastructure had been built to the strict conformant of the plans  Subdivision and the improvements are in place and complete.  approved and reviewed by David Poore, PE.    November 9, 2015 Page2of2  REVIEW OF SECTIONS 152.056-097: Town Planner Elinor Hiltz reviewed the Sawmills Ordinance Sections 152.056-097 with the. Board. There Board had no questions. Mayor Pro Tem Trena McRary Kirby asked for a motion to approve the Edgewater Joe Wesson made a motion, and Gerelene Blevins seconded to approve the Edgewater  Subdivision. Subdivision.  COUNCIL ADJOURN: Mayor Pro-Tem Trena McRary Kirby asked for a motion to Johnny Wilson made a motion, and Joe Wesson seconded, to adjourn the meeting. All were  adjourn. in favor.  Julie A Good, Town Clerk  Trena McRary Kirby, Mayor Pro-Tem    AGENDA ITEM 7A  MEMO DATE: SUBJECT:  November 17,2015 Recognition: Recycle Rewards Program  Discussion:  After checking numerous accounts on the computer generated list, Public Works Director,  Ronnie Coffey, could not find a recycle rewards winner this month.  Recommendation: No Council action is required.    AGENDA ITEM 7B  MEMO DATE: SUBJECT:  November 17,2015 Recognition: Yard of the Month Winners  Discussion:  Robert Yount, from the 28630 zip code, and Harold Williams, from the 28638 zip code, are the Yard ofthe Month winners for November, Mayor Pro Tem Trena McRary Kirby will present  them with a Certificate of Appreciation.  Recommendation: No Council action required.    AGENDAITEM8A  MEMO DATE: SUBJECT:  Noyember 17,2015 Financial Matters: Employee Longevity Pay  Discussion:  As you are aware, the Town of Sawmills has an employee longevity pay plan that is 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 On 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 17,2015 Financial Matters: Approve Auditors Contract for FY 2015-2016  Discussion:  Enclosed with this memo is a contract from our current auditing firm Lowdermilk, Church & Co., L.L.P. The contract, ini the amount of $10,500.00 (ten thousand five hundred dollars), will  cover the period ofJuly 1, 2015 to June 30, 2016. This amount of $10,500.00 includes the following: Preparation of annual financial statements:  Audit:  $6,825.00 $3,675.00  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: 2015 to June 30, 2016.  Staffrecommends Council approve a contract with Lowdermilk, Church & Co., L.L.P. in the amount of $10,500.00 (ten thousand five hundred dollars) and covering the period ofJuly1,    Lowdermilk Church & Co., L.L.P. Certified. Public Accountants  121 N. Sterling Street Morganton, North Carolina 28655 Phone: (828)433-1226 Fax: (828)433-1230  Town of Sawmills 4076US Highway 321-A Sawmills, North Carolina 28630  November 3,2015  We are pleased to confirm our understanding oft thes services we are to provide Town of Sawmills for the year ended June 30, 2016. We will audit the financial statements oft the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information, including the related notes to the financial statements, which collectiyely comprise the basic financial statements ofTown of Sawmills as ofand for the year ended June 30, 2016, 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), tos supplement' Town of Sawmills' basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers itt to be an essential part ofi 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 procedures will consist of inquiries oft management: regarding thei methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We will not express an opinion or provide any assurançe 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 generally accepted accounting principles and will be subjected to certain limited procedures, but will not be  audited: 1)  Management's Discussion and Analysis. 2) Budgetary Comparison Information  3) Law Enforcement Officers Special Separation. Allowance and Other Postemployment Benefits Schedule We have also been engaged to report on supplementary information other than RSI that accompanies Town of Sawmills' financial statements. We 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'si report on  ofFunding Progress and Schedules of Employer Contributions  the financial statements: 2) Budgetary Schedules 3) Other Schedules  1) Combining and Individual Fund Financial Statements    Audit Objectives  The objective ofour audit is the expression of opinions as to whethery your financial statements are fairly presented, in all material respects, in conformity with U.S. generally accepted accounting principles and to report on the fairness of the supplementary information referred to in the second paragraph when considered in relation to the financial statements as a whole. Our audit will be conducted in accordance with auditing standards generally accepted in 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 thé 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 of the Town of Sawmills. We cannot provide assurance that unmodified opinions will be expressed. Circumstances may arise in which it is necessary for us to modify our opinions or add emphasis-ofanatter or other-matter paragraphs. Ifour opinions on the financial statements 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 We will also provide ai report (that does not include an opinion) on internal control related to the financial statements and compliance with the provisions ofl 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 ofthe report is solely to describe the scope oftesting of internal control and compliance, and the results of 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 note encompassed in the terms oft this engagement, we will communicate to management and those charged with governance that an audit in accordance with U.S. generally accepted auditing standards and the standards for financial audits contained in Government Auditing Standards  opinions or issue reports, or may withdraw from this engagement,  may not satisfy the releyant legal, regulatory, or contractual requirements.  Audit Procedures-General  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; therefore, our audit will involve, judgment about the number oft transactions to be examined and the areas tol be tested. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation ofthe financial statements. We will plan and perform the audit to obtain reasonable rather than absolute 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 behalfoft the government. Because the determination of abuse is subjective, Government Auditing Standards do not expect  auditors to provide reasonable assurance of detecting abuse.    Because oft thei inherent limitations of an audit, combined with the inherent limitations of internal control, and because we will not perform a detailed examination ofa all transactions, there is a risk that material misstatements may exist and not be detected 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 ofl laws or governmental regulations that do not havea direct and material effect on the financial statements. However, we will inform the appropriate level of management ofany material errors, any fraudulent financial reporting, or misappropriation of assets that come to our attention. We will also inform the appropriate level of management of any violations ofl 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 Our procedures will include tests of documentary evidence supporting the transactions recorded in the accounts, and may include tests of the physical existence ofi inventories, and direct confirmation of receivables 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 of the engagement, and they may bill you: for responding to this inquiry. At the conclusion of our audit, we will require certain written representations from you about your responsibilities for the financial statements; compliance with laws, regulations, contracts, and grant agreements; and other responsibilities required by generally accepted auditing  not extend to later periods for which we are not engaged as auditors,  standards.  Audit) Procedures--Internal Control  Our audit will include obtaining an understanding of the government and its environment, including internal control, sufficient to assess the risks of material misstatement of the: financial statements and to design the nature, timing, and extent of further audit procedures. Tests of controls may be performed to test the effectiveness of certain controls that we consider relevant toj preventing and detecting errors and fraud that are material to the financial statements and to preventing and detecting misstatements resulting from illegal acts and other noncompliance: matters that have a direct and material effect on the financial statements. Our tests, ifp performed, will be less in scope than would bei 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 toj provide assurance on internal control or to identify significant deficiencies or material weaknesses. 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 Procedures- Compliance  As] part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we will perform tests ofTown of Sawmills' compliance with the provisions of applicable Iaws, regulations, contracts, agreements, and grants. However, the objective of our audit will not be to provide an opinion on overall compliance and we will: not express such an opinion in our report on compliance issued  pursuant to Government Auditing Standards,  Other Services  We will also assist in preparing the financial statements and related notes ofTown of Sawmills in conformity with U.S, generally accepted accounting principles based on information provided byyou. 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.    Management Responsibilities  Management is responsible for establishing and maintaining effective internal controls, 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 oft the 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 ofc contracts and grant agreements, 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 of which you are aware that is relevant to the preparation and fair presentation of the financial statements, (2) additional information that we may request for the purpose oft the audit, and (3) unrestricted access to 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  individually and in the aggregate, to the financial statements taken as a whole.  You are: responsible for 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 whol have significant roles in internal control, and (3) others where thei fraud could have a 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 arei responsible for the preparation oft the supplementary information, which we have been engaged to report on, in conformity with U.S. generally accepted accounting principles. You agree to include our report on the supplementary information in any document that contains and indicates that we have reported on the supplementary information. You also agree to [include the audited financial statements with any presentation of the supplementary information that includes our report thereon OR make the audited financial statements. readily available to users ofthe supplementary information no later than the date the supplementary information is issued with our report thereon). Your responsibilities include acknowledging to us in the written representation letter that (1) you are: responsible for presentation of the supplementary information in accordance with GAAP;(2)you believe the supplementary information, including its form and content, is fairly presented in accordance with GAAP; (3) the methods of measurement or presentation have not changed from those used in the prior period (or, ifthey have changed, the reasons for such changes); and (4)you have disclosed to us any significant assumptions ori interpretations underlying the measurement or presentation oft the supplementary information. Management is responsible for establishing and maintaining aj process fort tracking the status of audit findings and recommendations. Management is also responsible for identifying and providing report copies of previous financial audits, attestation engagements, performance audits or other studies related to the objectives discussed ini the Audit Objectives section oft this Ietter. This responsibility includes relaying to us corrective actions taken to 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 roport, and for  or grant agreements, or abuse that we: report.  the timing and format for providing that information.    With regard to the electronic dissemination of audited financial statements, including 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 int 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 accepted. responsibility for them. Further,you agree to oversee the nonaudit services by designating an individual, preferably from senior management, with suitable skill, knowledge, or experience; evaluate the adequacy and results of those services;  consistency ofother information in the electronic site with the original document.  and accept responsibility for them, Engagement Administration, Fees, and Other will locate any documents selected by us for testing.  We understand that your employees will prepare all cash or other confirmations and scheduies we. request and We will provide copies of our reports to the Town; however, management is responsible for distribution oft the reports and thei financial statements. Unless restricted by law or regulation, or containing privileged and confidential information, copies of our reports are to be made available for public inspection. The audit documentation for this engagement is the property ofLowdermilk Church & Co., L.L.P, and constitutes confidential information. However, subject to applicable laws and regulations, audit documentation and appropriate individuals will be made available upon request and in a timely manner to the Local Government Commission or its designee, ai federal agency providing direct or indirect funding, or the U.S. Government Accountability Office for purposes ofa quality review oft the audit, to resolve audit findings, or to carry out oversight responsibilities. Wey will notify you of any such request. Ifi requested, access to such audit documentation will be provided under the supervision ofLowdermilk Church & Co, L,L.P. personnel. Furthermore, upon request, wei may provide copies of selected 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 fort 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 ai 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.,L.L.P.'s independence is not impaired under the AICPA Code ofP Professional Conduct, you agree to inform the engagement partner before entering into any substantive employment discussions with any ofour personnel.  other governmental agencies.  finding for guidance prior to destroying the audit documentation.    Our feei for 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 $10,500. Our standard hourly rates vary according to the degree of responsibility involved and the experience level oft the personnel assigned to your audit. Our invoices for these fees will be rendered each month as work progresses and are payable on presentation. In accordance with our firm policies, work may be suspended ifyour account becomes 30 days or more overdue and may not be resumed until your account is paid ini full. Ifwe elect to terminate our services for nonpayment, our engagement will be deemed tol have been completed upon written notification of termination, even if wel have not completed our report. You will be obligated to compensate us for all time expended and to reimburse us for all out-of-pocket costs through the date of 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 we perform additional services not addressed in this engagement letter, Ifthis occurs, we will communicate with you regarding the scope oft the additional services and the estimated fees. We also may issue a separate engagement letter covering the additional services. In the absence ofa any 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 conditions of that new engagement will be governed by a new, We are providing you with a copy of our 2012 external peer review report which accompanies this letter. We appreciate the opportunity to be ofservice 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 ofour engagement as described ini this letter, please sign the enclosed copy and return it to us,  days old.  terms oft this engagement letter.  specific engagement. letter for that service,  Vew trulyyours,  James E. Lowdermilk Partner RESPONSE:  This letter correctly sets forth the understanding ofTown of Sawmills.  Management signature: Title: Date: Governance signature: Title: Date:    LGC-205 (Rev, 2015) Of  CONTRACTTO. AUDIT. ACCOUNTS Town of Sawmills Primary Governmental Unit  Discretely Presented Component Unit (DPCU) ifa applicable  On this  3rd  day of  November Auditor Mailing Address:  2015  Auditor; and and  Lowdermilk Church & Co., L.L.P. 121 North Sterling Street, Morganton, NC 28655  Hereinafter referred to as The Auditor Town of Sawmills (Primary Government)  (Governing Board(s)) of  hereinafter referred to as the Governmental Unit(s), agree as follows:  (Discretely Presented Component Unit)  1, The Auditor shall audit all statements and disclosures required by generally accepted accounting principles (GAAP) and additional required legal statements and disclosures of all funds and/or divisions of the Governmental Unit (s) non-major combining, and individual fund statements and schedules shall be subjected to the auditing procedures applied in the audit of thel basic financial statements and an opinion will be rendered in relation to (as applicable) the governmental activities, the business-type activities, the aggregate DPCU's, each major governmental and enterprise fund, and the aggregate remaining fund information (non-major government and enterprise funds, the internal 2. Ata minimum, the Auditor shall conduct his/her audit and render his/her report in accordance with generally accepted auditing standards, The Auditor shall perform the audit in accordance with Government. Auditing Standards ifr required by the State Single Audit Implementation Act, as codified in G.S. 159-34. If required by OMB Circular A-133 Audits of States, Local Governments, and Non-Profit Organizations and the State Single Audit Implementation Act, the Auditor shall perform a Single Audit. This audit and all associated workpapers may be subject to review by Federal and State agencies in accordance with Federal and State laws, including the staffs ofthe Office of State Auditor (OSA) and the Local Government Commission (LGC). If the audit and/or workpapers are found in this review to be substandard, thes results of the review may be forwarded to the North Carolina State Board County and Multi-County Health Departments: The Office of State Auditor will designate certain programs that have eligibility requirements to be considered major programs in accordance with OMB Circular A-133 for the State ofNorth Carolina. The LGC will notify the auditor and the County and Multi-Health Department oft these programs, A County or a Multi-County Health Department may be selected to audit any oft these programs as major. 3. If an entity is determined to be a component of another government as defined by the group audit standards the entity's auditor will make a good faith effort to comply in a timely manner with the requests of the group auditor in 4. This contract contemplates an unqualified opinion being rendered. The audit shall include such tests of the accounting records and such other auditing procedures as are considered by the Auditor to be neçessary in the circumstances. Any limitations or restrictions in scope which would lead to a qualification should be fullyexplained 5. If this audit engagement is subject to the standards for audit as defined in Govermment Auditing Standards, 2011 revisions, issued by the Comptroller General of the United States, then by accepting this engagement, the Auditor warrants that he has met the requirements for a peer review and continuing education as specified in Government  for the period beginning  July1  2015 and ending  June 30  2016 The  service fund type, and the fiduciary fund types).  ofCPA Examiners (NC CPA Board).  accordance with AU-6 $600,41 - $600,42.  in an attachment to this contract.    Contract to Audit. Accounts (cont.)  Town of Sawmills  Governmental Unit  Discretely Presented Component Unit's (DPCU) if applicable  Auditing Standards. The Auditor agrees to provide acopy of their most recent peer reyiew report regardless of the date ofthe prior peerreview report to the Governmental Unit and the Secretary of the LGC prior to the execution of the audit contract (See Item 22). If the audit firm received a peer review rating other than pass, the Auditor shall not contract with the Governmental Unit without first contacting the Secretary of the LGC for a peer review If the audit engagement is not subject to Government Accounting Standards or if financial statements are not prepared in accordance with GAAP and fail to include all disclosures required by GAAP, the Auditor shall provide 6. Iti is agreed that time is of the essence in this contract. All audits are to be performed and the report of audit submitted to the State and Local Government Finance Division (SLGFD) within four months of fiscal year end. or the audit fee, an amended contract along with a written explanation of the delay must be submitted to the 7. It is agreed that generally accepted auditing standards include a review of the Governmental Unit's systems of internal control and accounting as same relates to accountability of funds and adherence to budget and law requirements applicable thereto; that the Auditor will make a written report, which may or may not be a part oft the written report of audit, to the Governing Board setting forth his findings, together with his recommendations for improvement. That written report must include all matters defined as "significant deficiencies and material weaknesses" in AU-C 265 of the. AICPA Professional Standards (Clarifed). 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 assistançe necessary to prepare the Governmental Unit's records for audit, financial statement preparation, any finance-related investigations, or any other audit-related work in the State of North Carolina. Inyoices for services rendered under these contracts shall not be paid by the Goyernmental Unit until the invoice has been approved by the Secretary of the LGC. (This also includes any progress billings.) [G.S. 159-34 and 115C-447] All invoices for Audit work must be submitted by email in PDF format to the Secretary of the LGC PRESEARLERIeNt Subject line should read "Invoice - [Unit Name). The PDF invoice marked 'approved' with approval date will be returned by email to the Auditor to present to the Governmental Unit for payment. Approval is not required on contracts and invoices for system improvements and similar serviçes ofa 9. In consideration of the satisfactory performance of the provisions of this contract, the Primary Governmental Unit shall pay to the Auditor, upon approval by the Secretary of the LGC, the fee, which includes any cost 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 10. Ifthe Governmental Unit has outstanding revenue bonds, the Auditor shall include documentation either in the notes to the audited financial statements or as a separate report submitted to the SLGFD along with the audit report, a calculation demonstrating compliance with the revenue bond rate covenant, Additionally, the Anditor should be aware that any other bond compliance statements or additional reports required in the authorizing bond documents need to be submitted to the SLGFD simultaneously with the Governmental Unit's audited financial statements unless  analysis that may result in additional contractual requirements.  an explanation as to why in an attachment..  Audit report is due on: secretary of the LGC for approval.  October 31  2016 Ifitbecomes necessary to amend this due date  report with the Secretary oftheLGC.  for approval.  The invoices must be sent via upload through the current portal address:  non-auditing nature.  Acts, Fees listed on signature pages.  otherwise specified in the bond documents.  Page 2 of8    Contract to Audit. Accounts (cont.).  Town of Sawmills  Governmental Unit  Discretely Presented Component Unit's (DPCU) ifapplicable  11, After completing the audit, the Auditor shall submit to the Governing Board a written report of audit. This report shall include but not be limited to the following information: (a) Management's Discussion and Analysis, (b) the financial statements and notes oft the Governmental Unit and all ofi its component units prepared in accordance with GAAP, (c) supplementary information requested by the client 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 ofa audit to the Governing Board as soon as practical after the close of the accounting period. 12, Ifthe audit firm is required by the NC CPA Board or the Secretary of the LGC to have aj pre-issuance review of their audit work, there: must be a statement added to the engagement letter specifying the pre-issuance review including a statement that the Governmental Unit will not be billed for the pre-issuance. review. The pre-issuance review must be performed prior to the completed audit being submitted to the LGC. The pre-issuance report must accompany 13. The Auditor shall electronically submit the report of audit to the LGC when (or prior to) submitting the invoice for services rendered. The report of audit, as filed with the Secretary of the LGC, becomes a matter of public record for inspection, review and copy in the offices of the SLGFD by any interested parties. Any subsequent revisions to these reports must be sent to the Secretary of the LGC. These audited financial statements, excluding the Auditors' opinion, may be used in the preparation of official statements for debt offerings, by municipal bond rating services toi fulfill secondary market disclosure requirements of the Securities and Exchange Commission and other Iawful purposes of the Governmental Unit without subsequent consent of the Auditor. Ifit is determined by the LGC that corrections need to be made to the Governmental Unit's financial statements, they should be provided within three If the OSA designates certain programs to be audited as major programs, as discussed in item #2, a turnaround The LGC's process for submitting contracts, audit reports and Invoices is subject to change. Auditors should use the submission process in effect at the time of submission. The most current instructions will be found on our website: 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 Secrotary of the LGC, this contract may be varied or changed to include the increased time and/or compensation as may be agreed 15. If an approved contract needs to be varied or changed for any reason, the change must be made in writing, signed and dated by all parties and pre-audited if the change includes a change in audit fee. This document and a written explanation of the change must be submitted by email in PDF format to the Secretary of the LGC for approval. The phnstamtralamtans No change shall be effective unless approved by the Secretary of the LGC. the 16. Whenever the Auditor uses an engagement letter with the Governmental Unit, Item #17 is to be completed by referencing the engagement letter and attaching a copy of the engagement letter to the contract to incorporate the engagement letter into the contract. In case of conflict between the terms of the engagement letter and the terms of this contract, the terms of this contract will control. Engagement letter terms are deemed to be void unless the  the audit report upon submission to the LGC.  days ofnotification unless another time frame is agreed to by the LGC.  document and a representation letter addressed to the OSA shall be submitted to the LGC.  ntps/www.nctreasurasurercomVAPPageAUdi-rommsand-Kesoures.spA  upon by the Governing Board and the. Auditor  portal address to upload your amended contract and letter of explanation documents is  Governing Board, and the Auditor,  Page 3 of8    Contract to. Audit Accounts (cont.).  Town of Sawmills  Governmental Unit  Discretely Presented Component Unit's (DPCU) if applicable  conflicting terms of this contract are specifically deleted in Item #22 oft this contract. Engagement letters containing  indemnification clauses will not be approved byt thel LGC.  17. Special provisions should be limited. Please list any special provisions in an attachment.  See Attached Engagement Letter.  18. A separate contract should not be made for each division to be audited or report to be submitted. Ifa DPCU: is subject to the audit requirements detailed in the Local Government Budget and Fiscal Control Act and a separate audit report is issued, a separate audit contract is required. Ifa separate report is not to be issued and the DPCUis included in the primary government audit, the DPCU must be named along with the parent government on this audit contract. Signatures from the DPCU Board chairman and finance officer also must be included on this contract. 19, The contract must be executed, pre-audited, physically signed by all parties including Governmental Unit and Auditor signatures and submitted in PDF format to the Secretary of the LGC. The current portal address to upload your contractual documents is htp/nctreasurersigfd.capfle-net Electronic signatures are not accepted at this time. Included with this contract are. instructions to submit contracts and invoices for approval as of February, 2015. These instructions are subject to change. Please check the NC Treasurer's web site at www.nctreasurer.com for the 20. The contract is not valid until it is approved by the LGC Secretary. The staff of the LGC shall notify the Governmental Unit and Auditor ofcontract approval by email. The auditshould not be started before the contract is 21. 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 Secretary oft the 22. All of the above paragraphs are understood and shall apply to this contract, except the following numbered  most recent. instructions.  approved. LGC.  paragraphs shall be deleted: (See Item 161 for clarification).  SIGNATURE PAGES. FOLLOW  Page 4 of8    Contract to Audit. Accounts (cont.).  Town of Sawmills  Governmental Unit  Discretely Presented Component Unit's (DPCU) if applicable  $10,500  FEES  Year-end bookkeeping assistance [For audits subject to Govermment. Auditing Standards, this is limited to  bookkeeping services permitted by revised. Independence Standards)  $ 6,825 3,675  Audit  Preparation of the annual financial Statements  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% oft the total of the stated fees above. Ifthe current contracted: fee is not fixed in total, invoices for services rendered may be approved for up to  75% of the prior year audit fee.  The' 75% cap for interim invoice approval for this audit contract iss Communication regarding audit contract requests for modification or official approvals will be sent to the email addresses provided in the spaces below.  7,875 Town of Sawmills  ** NA if there is to be no interim billing  PRE-AUDIT CERTIFICATE: Required by G.S. 159-28 This instrument has been pre-audited in the manner required by' Thel Local Government Budget and! Fiscal Control Act or by the School Budget and Fiscal Control Act. Additionally, the following date is the date this audit contract was approved by the goveming body, Primary Governmental Unit Finance Officer  (a)  Audit Firm Signature: Name of Audit Firm  Lowdermilk Church & Co.,L.L.P.. : James. E, Lowdermilk By Authprized Audit firm represeyfativenar Type or print Gmh  By Type or print name  Karen Clontz  firm representative  Date  1-4-15 Imiçpa@belsouth.net Email Address of Audit Firm Goyernmental Unit Signatures: Name of) Primary Govermment  Primary Government Finance Officer Signature Pre-audit Certificate must be dated.) Email Address of Finance Officer  Town of Sawmills  Date  By. Trena McRary Kirby - Mayor, Pro-Tem Mayor/ /Chairperson: Type or priut name and tifle Signature ofl Mayor/Chairperson of governing board  kciontZ@townotsawmils.com  Date By  Date Primary Government Governing Body Approved Audit Cantratt-Gs.159.344)  Chair of Audit Committee- Type or print name Signature of Audit Committee Chairperson  N/A  **  Date this section "N/A"  ** Govermmenta Unit has no audit committee, mark  Page 5 of8    Contract to. Audit Accounts (cont.)  Town of Sawmills  Governmental Unit  N/A  Discretely Presented Component Unit's (DPCU) ifa applicable  **' This page to only be completed by Discretely Presented Component Units **  FEES  Year-end bookkeeping assistance [For audits subject to Govermment. Auditing Standards, this is limited to  bookkeeping services permitted by revised. Independence Standards  Audit  Preparation of the annual fimancial Statements  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% oft the total oft the stated fees above. If the current contracted fee is not fixed in total, invoices for services rendered may be approved for up to  75% of the prior year audit fee.  The 75% cap for interim inyoice approval for this audit contract. iss_ Commication regarding audit contract requests for modification or official approvals will bes sent to the enail addresses provided in the spaces below, DPCU Governmental Unit Signatures: Name ofl Discreetly Presented Government  ** NA if there is to be no interim billing  : : : :3 (a)  :5  PRE-AUDIT CERTIFICATE: Required by G.S.159-28 This instrument has been pre-audited in the manner required by' The Local Government Budget and] Fiscal Control Act or by the School Budget and] Fiscal Control Act. Additionally, thei following date is the date this audit contract was approved by the governing body,  .  -  :  By  DPCU Board Chairperson; Type or print name and title Signature of Chairperson of] DPCU governing board  By_  DPCU Finance Officer: Type or print name  Date_ By  Primary Government Finance Officer Signature (Pre-audit Certificate must be dated.) Email. Address of Finance Officer Date DPCU Governing Body Approved Audit Contract- - G.S.1 159-34(a)  : 1 : : : : :   Date  :  Chair of Audit Committee Type or print name Signature of Audit Committee Chairperson  **  Date this, section "N/A"    ** Governmenta Unitl has no audi! committee, mark    Page 6 of8    AGENDAITEMIOA  MEMO DATE: SUBJECT:  November 17,2015  Updates: SEBA October Progress Report  Discussion:  Sherry Long, from the Western Piedmont Council of Governments (WPCOG), sent the attached  progress report for the SBEA Project 12-C-2443.  Recommendation: No Council action required.    MAYOR  TOWN COUNCIL Johnny Wilson Joe Wesson Jeff Wilson Gerelene Blevins  A  TOWN ADMINISTRATOR Christopher Todd  Trena McRary Kirby, Mayor Pro-Tem  APORATED  November 2,2015  TO:  Trina McRary Kriby, Mayor Pro-Tem Gerelene Blevins, Councilwoman Joe Wesson, Councilman Jeff Wilson, Councilman Johnny Wilson, Council Sherry Long, WPCOG Progress Report on. SBEA 12-C-2443 November 2, 2015  FROM: SUBJECT: DATE:  Thel Department of Commerce is requiringar monthly progress report for Small Business Entrepreneurial Assistance (SBEA)Project CDBG 12-C-2443 bej provided to the Sawmills Town Council each month. This report must also signed by the Mayor Pro-tem and submitted to the Department ofCommerce by the 10th day of each month. The  following activities occurred in October, 2015:  Truck Was delivered October 16, 2015.  Reçeived the first CDBG requisition: in the amount of $93,107.56.  Trina McRary Kirby Mayor Pro-Tem  4076 US Highway 321-A * Sawmills NC * (828)396-7903 (828)396-8955 fax  ntp/www.townofsawmills.com,  Thel Town ofSawmills does not disoriminate ont the basis ofe age, sex, race, religion, national origin, disability, political affiliation, or marital status.    AGENDA ITEM 10B  MEMO DATE: SUBJECT:  November 17,2015 Updates: Code Enforcement Monthly Report  Discussion: the town. Recommendation: No Council action required.  The attached report shows the progress that Planner Elinor Hiltz continues to make throughout        AGENDA ITEM: 10C  MEMO DATE: SUBJECT:  November 17,2015 Updates: Comprehensive Steering Committee Report  Discussion: November 3, 2015, Recommendation: No Council action required.  The attached report is a summary of the Comprehensive Steering Committee meeting of    OFSAVIN  TOWN COUNCIL Gerelene Blevins Joe Wesson Jeff Wilson Johnny Wilson  TOWN ADMINISTRATOR Trena McRary Kirby, Mayor Pro-Tem  Christopher Todd TOWN PLANNER Elinor Hiltz  ORPORATED  MEMO  TO: Christopher, Town Administrator FROM: Elinor Hiltz, Town Planner DATE: November 10, 2015  SUBJECT: Comprehensive Plan Steering Committee Meeting November 3  On November 3 at the Comp Plan Steering Committee meeting, the committee heard a transportation presentation from John Marshall, the WPCOG's Planning Director and MPO Coordinator. They discussed the need for a turn lane in front ofthe Elementary School. They also discussed the Sidewalk Plan adopted in 2014 and did not propose They decided on a vision statement: "Sawmills will be a close-knit community and a great small town to raise a family in, with aj flourishing economy, a range of housing choices, and They wanted to choose the Plan's title when more Steering Committee members are in attendance because there were only three this month. They decided on a time and venue for the upcoming public input meeting (December 1, 6:00, at the Fire Department) and decided to delay the launch oft the public input survey sO that they could organize a large effort: sending surveys home with elementary students, posting the survey online, etc. The survey will launch in January and responses will be collected through February. They aim to collect more than 100 responses. Wel hope to see Council at the public input meeting: December 1, 6:00, the Fire Department. At the meeting steering committee members will lead small group brainstorming sessions. Jake Ramsey was chosen as the Committee's Chair.  any new sidewalk routes for the Town.  natural spaces, parks, and business establishments. for enjoyment. )    AGENDA ITEM 10D  MEMO DATE: SUBJECT:  November 17,2015 Updates: DuffDrive Sewer Progress Report  Discussion:  Lisa Helton, from the Western Piedmont Council of Governments (WPCOG), sent the attached  progress report for the DuffDrive Sewer project.  Recommendation: No Council action required.    MAYOR  TOWN COUNCIL Johnny Wilson Joe Wesson Jeff Wilson Gerelene Blevins  t o COAPORATED  TOWN ADMINISTRATOR Trena McRary Kirby, Mayor Pro-Tem  Christopher Todd  TO:  Trina McRary Kriby, Mayor. Pro-Tem Gerelene Blevins, Councilwoman Joe Wesson, Councilman Jeff Wilson, Councilman Johony Wilson, Councilman Lisa Helton DuffDrive Area Sewer Project November 6,2015  FROM: SUBJECT: DATE:  The Depariment of Commercei is requiring a monthly progress report for DuffDrive Area Sewer Project CDBG #1 12-C-2506 be provided to the Sawmills Town Council each month. This report must also signed by the Mayor Pro- tem and submitted to the Department of Commerce by the 10" day of each month. The following is an update of the  project: for the end of Ootober, 2015: Job is 90% complete  CDBG funds in the amount of$694,191.63 spent to date (68%). Less than 600 ft of main line left tol be installed.  9 McRary Kirby yopg Mayor Pro-Tem  -  40761 US Highway 321-A *Sawmills NC (828)396-7903 * (828)396-8955 fax  http/www.lownotsawmils.com  The Town ofs Sawmills does not discriminate ont thet basis ofage, sex, mce, religion, national origin, disability, political affiliation, or1 marital status.