Minutes oft the Meeting of The Liberty Town Council Held on March 25, 2024 5:30 pm 19 Present Mayor: Council: The Honorable Filmore York and Terry Caviness Don Herndon, Tyson Nixon, Larry Coble, Greg Carpenter, Assistant Town Manager: Janie Phelps Town Clerk: Town Attorney: Staff: Jessica Brown Bill Flowe Finance Director; Kathy Bond, Police Chief; David Semrad, Library Director; Brenda Heindl and Public Works Director; Joseph Walsh ToOrder The Mayor welcomed everyone and noted all Council Members were present. Janie Phelps is filling in for Scott Kidd while hei is on vacation. Pledge of Alegiance/nyocation join in al Moment of Silence. Adoption of Agenda Mayor Filmore York led the Pledge of Allegiance and then the Mayor asked everyone to Council Member Tyson Nixon made ai motion to adopt the agenda. Council Member Don Herndon seconded the motion which passed unanimously: Council Member Larry Coble voted yes, Council Member Don Herndon voted yes, Council Member Tyson Nixon voted yes, Council Member Terry Caviness voted yes, and Council Member Greg Carpenter voted yes. The agenda was approved. Code Enforcement Report next month. Finance Report was $235,771.03. No one is here from Alliance. The report is attached. The new company will be starting Finance Director Kathy Bond came forward to give her reports on the month of] February. Processed Payroll was $211,597.34. Utility Billing was $131,875.44, and Processed AP Council Member Larry Coble made ai motion to approve the Finance Report for February. Council Member Tyson Nixon seconded the motion which passed unanimously with Council Members: Larry Coble, Terry Caviness, Don Herndon, Greg Carpenter, and Tyson Nixon voting yes. 20 Approval ofMinutes Council Member Don Herndon made ai motion to approve the minutes from the Work Session February 19, 2024, and the Council Meeting February 26, 2024. Council Member Tyson Nixon seconded the motion which passed unanimously: Council Member Don Herndon voted yes, Council Member Tyson Nixon voted yes, Council Member Greg Carpenter voted yes, Council Member Terry Cavienss voted yes and Council Member Larry Coble voted yes, The minutes were approved. Consent Agenda The Consent Agenda includes: New Position to. Payscale/Buildings and Grounds Maintenance, Audit Contract - Thompson, Price, Scott, Adams, & Col PA, Road Closure Resolution back parking lot Town Hall/Library April 20, 2024, Road Closure Resolution, Parks and Rec Spring Festival April 27, 2024, Use ofLowe funds for Library expansion drawings, and Agreement to participate in Siler City, Liberty, and Ramseur Coalition Brownfield Coalition Grant. Council Member Terry Caviness made a motion to approve the Consent Agenda. Council Member Greg Carpenter seconded the motion which passed unanimously with Council Members: Larry Coble, Terry Caviness, Don Herndon, Greg Carpenter and Tyson Nixon voting yes. Administrative Reports Manager's Report Janie Phelps said Scott Kidd is on vacation and please contact her this week ifyou need anything.She is sending out an email about SOG legislative training on May 16th if anyone is interested. Council Comments Council Member Don Herndon said he was contacted by a citizen with a continuous problem from her neighbor's dog who is repeatedly loose and aggressive. Police Chief Semrad said they are aware and have issued a' Town citation, State citation, and told the owner of the dog she will be arrested if the dog is not gotten under control. They have a court date set for July. People not wanting to give their names/statements did slow the process. Mayor Comments Mayor York thanked the Chief for what he has done and reminded everyone that the Antiques Festival is next month. Adjourn Q1 There being no further business to discuss, Council Member Tyson Nixon made ai motion to adjourn. Council Member Don Herndon seconded the motion which passed unanimously with a vote: Council Member Don Herndon voted yes, Council Member Tyson Nixon voted yes, Council Member Greg Carpenter voted yes, Council Member Terry Caviness voted yes, and Council Member Larry Coble voted yes. The meeting was adjourned. dihnue ypib Mayor Filmore York ATTEST: pinl Bin L.GC-205 CONTRACT TO AUDIT ACCOUNTS Rev. 11/2023 The Governing Board of Primary Government Unit Town ofLiberty NA and Discretely Presented Component Unit (DPCU) (f applicable) Primary Government Unit, together with DPCU( (fapplicable), hereinafter referred to as Governmental Unit(s) and Auditor Name Auditor Address Thompson, Price, Scott, Adams & Co., P.A 4024 Oleander Dr., Suite 103, Wilmington, NC28403 Herelnafter referred to as Auditor for Fiscal Year Ending 06/30/24 Date Audit Will Be Submitted to LGC Must be within four months ofF FYE 10/31/24 hereby agree as follows: 1. The Auditor shall audit all statements and disclosures required by U.S. generally accepted auditing standards (GAAS) and additional required legal statements and disclosures of all funds andlor divisions of the Governmental Unit(s). The non-major combining, and individual fund statements and schedules shall be subjected to the auditing procedures applied in the audit of the basic financial statemênts and an opinion shall be rendered in relation to (as applicable) the governmental activities, the business- type activities, the aggregate DPCUS, each major governmental and enterprise fund, and the aggregate remaining fund information (non- major government and enterprise funds, the internal service fund type, and the fiduciary fund types). The basic financial statements shall include budgetary comparison information in a budgetary comparison statement, rather than as RSI, fort the General Fund and any annually budgeted Special Revenue funds. 2. At ar minimum, the Auditor shall conduct the audit and render the report in accordance with GAAS. The Auditor shall perform the audit in accordance with Government Auditing Standards (GAGAS) ift the Governmental Unit expended $100,000 or more in combined Federal and State financial assistance during the reporting period. The auditor shall perform a Single Audit if required by Title 2 US Code of Federal Regulations Part 200 Uniform Administration Requirements, Cost Principles, and Audit Requirements for Federal. Awards, Subpart F (Uniform Guidance) ort the State Single Audit Implementation Act. This audit and all associated audit documentation may be subject to review by Federal and State agencies in accordance with Federal and State laws, including the staffs of the Office of State Auditor (OSA) and the Local Government Commission (LGC). If the audit requires a federal single audit in accordance with the Uniform Guidance (S200.501), itis recommended that the Auditor and Governmental Unit(s). jointly agree, in advance of the execution oft this contract, which party is responsible for submission of the audit and the accompanying data collection form to the Federal Audit Clearinghouse as required under the Uniform Guidance (S200.512). Effective for audits of fiscal years beginning on or after June 30, 2023, the LGC will allow auditors to consider whether a unit qualifies as a State low-risk auditee based upon federal criteria in the Uniform Guidance $200.520(a), and (b) through (e) as it applies to State awards. In addition tot the federal criteria in the Uniform Guidance, audits must have been submitted timely toi the LGC. Ifin the reporting year, or in either of the two previous years, the unit reported al Financial Performance Indicator of Concern that the audit was late, then Page 1 LGC-205 CONTRACT TO AUDIT ACCOUNTS Rev. 11/2023 the report was not submitted timely for State low-risk auditee status. Please refer to' Discussion of Single Ift the audit and Auditor communication are found in this review to be substandard, the results of the review may bet forwarded to the North Carolina State Board of CPA Examiners (NC State Board). 3. Ifan entity is determined to be a component of another government as defined by the group audit 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 ity will not be possible to render an unmodified opinion ont the financial statements of the unit, the Auditor shall contact the LGC Staff to discuss the circumstances leading to that conclusion as soon as is practical and before the final report is issued. The audit shall include such tests of the accounting records and such other auditing procedures as are considered by the Auditor to be necessary in the circumstances. Any limitations or restrictions in scope which would lead to a qualification should bet fully 5. Ifthis audit engagement is subject to the standards for audit as defined in Government Auditing Standards, 2018 revision, issued by the Comptroller General of the United States, then by accepting this engagement, the Auditor warrants that 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 oft the LGC prior tot 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 thel LGC fora a Ift the audit engagement is not subject to Government Auditing Standards or ift financial statements are not prepared in accordance with U.S. generally accepted accounting principles (GAAP) and fail toi include all disclosures required by GAAP, the Auditor shall provide an explanation as to why in an attachment to this 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 LGC Staff within four months off fiscal year end. If it becomes necessary to amend the audit fee or the date that the audit report will be submitted to the LGC, an amended contract along with a written 7. Iti is agreed that GAAS include a review of the Governmental Unit's (Units') systems ofi internal control and accounting as same relate to accountabilty 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 oft the written report of audit, to the Governing Board setting forth his/her findings, together with his recommendations for improvement. That written report shall include all matters defined as "significant deficiencies and material weaknesses" in AU-C 265 of the. AICPA Professional Standards. (Clarified). The. Auditor shall file a copy of that For GAAS or Government Auditing Standards audits, if. an auditor issues an AU-C $260 report, commonly referred to as "Governance Letter," LGC staff does not require the report to be submitted unless the auditor cites significant findings or issues from the audit, as defined in AU-C $260.12-. .14. This would include issues such as difficulties encountered during the audit, significant or unusual transactions, uncorrected misstatements, matters that are difficult or contentious reviewed with those charged with governance, and other significant matters. If matters identified during the audit were required to be reported as described in AU-C $260.12-.14 and were communicated in a method other than an AU-C $260 letter, the written Audits in North Carolina" on the LGC's website for more information. the group auditor in accordance with AU-6 $600.41 -S $600.42. explained in an attachment tot this contract. peer review analysis that may result in additional contractual requirements. contract ori in an amendment. explanation of the change shall be submitted to the Secretary oft the LGC for approval. report with the Secretary of the LGG. documentation must be submitted. LGC-205 CONTRACT TO AUDIT ACCOUNTS Rev. 11/2023 8. AII 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 records for audit, financial statement preparation, any finance-related investigations, or any other audit- related work int the State of North Carolina. Approval is also required fort the Alternative Compliance Examination expenditures. as allowed by US Treasury. Approval is not required on audit contracts and invoices for Engagement for auditing the Coronavirus State and Local Fiscal Recovery Funds system improvements and similar services of a non-auditing nature. 9. 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 [G.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 tot the Auditor to present to the Governmental Unit(s) for payment. This paragraph is not applicable to contracts for audits 10. In consideration oft the satisfactory performance of the provisions of this contract, the Governmental Unit(s) shall pay to the Auditor, upon approval by the Secretary oft the LGC if required, the fee, which includes "any costs the. Auditor may incur from work paper or peer reviews or any other quality assurance program required by third parties (federal and state grantor and oversight agencies or other organizations) as required under the Federal and State Single Audit Acts. This does not include fees for any pre-issuance reviews that may be required by the NC Association of CPAS (NCACPA) Peer Review Committee or NC State 11. If the Governmental Unit(s) has/have outstanding revenue bonds, the Auditor shall submit to LGG Staff, either in the notes to the audited financial statements or as a separate report, a calculation demonstrating compliance with the revenue bond rate covenant. Additionally, the Auditor shall submit to LGC Staff simultaneously with the Governmental Unit's (Units') audited financial statements any other bond compliance statements or additional reports required by the authorizing bond documents, unless otherwise specified in the 12. After completing the audit, the Auditor shall submit to the Governing Board a written report of audit. This report shall include, but not be limited to, the following information: (a) Management's Discussion and Analysis, (b) the financial statements and notes oft the Governmental Unit(s) and all ofi 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 ont the material presented. The. Auditor shall furnish the required number of copies oft the report of audit to the Governing Board uponcompletion. 13. Ifthe audit firm is required by the NC State Board, the NCACPA Peer Review Committee, or the Secretary of the LGC tol have a pre-issuance review of its audit work, there shall be a statement int the engagement letter indicating the pre-issuance review requirement. There also shall be a statement that the Governmental Unit(s) shall not be billed for the pre-issuance review. The pre-issuance review shall be performed prior to the completed audit being submitted to LGC Staff. The pre-issuance review report shall accompany the ofh hospitals. Board of CPA Examiners (see Item 13). bond documents. audit report upon submission to LGC Staff. - Page 3 LGC-205 CONTRACT TO AUDIT ACCOUNTS Rev.1 11/2023 14. The Auditor shall submit the report of audit in PDF format to LGC Staff. For audits of units other than hospitals, the audit report should be submitted when (or prior to) submitting the final invoice for services rendered. The report of audit, as filed with the Secretary of the LGC, becomes a matter of public record for inspection, review and copy in. the offices oft the LGC by any interested parties. Any subsequent revisions to these reports shall be sent to the Secretary of the LGC. These audited financial statements, excluding the Auditors' opinion, may be used ini 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 for other lawful purposes of the Governmental Unit(s) without requiring consent of the Auditor. Ift the LGC Staff determines that corrections need to be made to the Governmental Unit's (Units') financial statements and/ ort the compliance section, those corrections shall be provided within three business days of notification unless 15. Should circumstances disclosed by the audit call for a more detailed investigation by the Auditor than necessary under ordinary circumstances, the Auditor shall inform the Governing Board in writing of the need for such additional investigation and the additional compensation required therefore. Upon approval by the Secretary of the LGC, this contract may be modified or amended to include the increased time, compensation, 16. If an approved contract needs to be modified or amended for any reason, the change shall be made in writing and pre-audited if the change includes a change in audit fee (pre-audit requirement does not apply to hospitals). This amended contract shall be completed ini full, including a written explanation oft the change, signed and dated by all original parties to the contract. It shall then, be submitted to the Secretary oft the LGC for approval. No change tot the audit contract shall be effective unless approved by the Secretary of the LGC. 17. Ac copy of the engagement letter, issued. by the Auditor and signed by both the. Auditor and the Governmental Unit(s), shall be attached tot this contract, and except fori fees, work, and terms not related to audit services, shall be incorporated by reference as iff fully set forth herein as part oft this contract. Inc case of conflict between the terms of the engagement letter andi the terms oft this contract, the terms of this contract shall take precedence. Engagement letter terms that conflict with the contract are deemed to be void unless the conflicting terms of this contract are specifically deleted in Item 30 of this contract. Engagement letters containing 18. Special provisions should be limited. Please list any special provisions in an attachment. 19. As separate contract should not be made for each division to be audited or report to be submitted. Ifa DPCU is subject to the audit requirements detailed in the Local Government Budget and Fiscal Control Act and as separate audit report isi issued, a separate audit contract isi required. Ifas separate report is not to be issued and the DPCU is included in the primary government audit, the DPGU shall be named along with the primary government on this audit contract. DPCU Board approval date, signatures from the DPCU Board chairman and 20. The contract shall be executed, pre-audited (pre-audit requirement does not apply to hospitals), and physically signed by all parties including Governmental Unit(s) and the Auditor, then submitted in PDF format to 21. The contract is not valid until it is approved by the Secretary oft the LGC. The staff of the LGC shall notify the Governmental Unit and Auditor of contract approval by email. The audit should not be started before the 22. Retention of Client Records: Auditors are: subject to the NC State Board of CPA Examiners' Retention of Client Records Rule 21 NCAC 08N .0305 as it relates to the provision of audit and other attest services, as well as non-attest services. Clients and former clients should bei familiar with the requirements of this rule prior to another deadline is agreed to by LGC Staff. or both as may be agreed upon by the Governing Board and the Auditor. indemnification clauses shall not be accepted by LGC Staff. finance officer also shall be included on this contract. the Secretary of thel LGC. contract is approved. requesting the return of records. Page 4 LGC-205 CONTRACT TO AUDIT ACCOUNTS Rev. 11/2023 23. This contract may be terminated at any time by mutual consent and agreement of the Governmental Unit(s) and the Auditor, provided that (a) the consent toi terminate is in writing and signed by both parties, (b) the parties have agreed on the fee amount which shall be paid to the Auditor (if applicable), and (c) no 24. The Governmental Unit's (Units') failure 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 25. There are no other agreements between the parties hereto and no other agreements relative hereto that shall be enforceable unless entered into in accordance with the procedure set out herein and approved 26. E-Verify. Auditor shall comply with the requirements of NCGS Chapter 64 Article 2. Further, if Auditor utilizes any subcontractor(s), Auditor shall require such subcontractor(s) to comply with the requirements of 27. Applicable to audits with fiscal year ends of. June 30, 2020 and later. For all non-attest services, the. Auditor shall adhere tot the independence rules of the. AICPA Professional Code of Conduct and Government Auditing Standards, 2018 Revision (as applicable). Financial statement preparation assistance shall be deemed a "significant threat" requiring the Auditor to apply safeguards sufficient to reduce the threat to an acceptable level. If the Auditor cannot reduce the threats to an acceptable level, the Auditor cannot complete the audit. Ift the Auditor is able to reduce the threats to an acceptable level, the documentation of this determination, including the safeguards applied, must be included in the audit workpapers. All non-attest service(s) being performed by the Auditor that are necessary to perform the audit must be identified and included int this contract. The Governmental Unit shall designate an individual with the suitable skills, knowledge, andlor experience (SKE) necessary to oversee the services and accept responsibility for the results of the services performed. Ift the. Auditor is able toi identify an individual with the appropriate SKE, s/he must document and include ini the audit workpapers how he/she reached that conclusion. If the Auditor determines that an individual with the appropriate SKE cannot be identified, the Auditor cannot perform both the non-attest service(s) and the audit. See "Fees for Audit Services" page of this contract to disclose the 28. Applicable to audits with fiscal year ends of June 30, 2021 and later. The auditor shall present the audited financial statements including any compliance reports to the government unit's governing body or audit committee in an official meeting in open session as soon as the audited financial statements are available but not later than 45 days aftert the submission of the audit report to the Secretary. The auditor's presentation tot the government unit's governing body or audit committee shall include: a) the description of each finding, including all material weaknesses and significant deficiencies, as found by the auditor, and any other issues related tot the internal controls or fiscal health of the government unit as disclosed in the management letter, the Single Audit or Yellow Book reports, or any other communications from the auditor regarding internal controls as required by current auditing c) the values of Financial Performance Indicators based on information presented in the audited d) notification to the governing body that the governing body shall develop a' "Response to the Auditor's Findings, Recommendations, and Fiscal Matters," if required under: 20 NGAC 03 .0508, 29. Information based on the audited financial statements shall be submitted to the Secretary for the purpose ofi identifying Financial Performance Indicators and Financial Performance Indicators of Concern. See. 20 termination shall be effective until approved in writing by the Secretary of the LGC. default on any subsequent occasion or instance. by the Secretary of the LGC. NCGS Chapter 64, Article 2. person identified as having the appropriate SKE for the Governmental Unit. standards set by the Accounting Standards Board or its successor; b) the status of the prior year audit findings; financial statements; and NCAC 03. .0502(c)(6). Page 5 LGC-205 CONTRACT TO AUDIT ACCOUNTS Rev. 11/2023 30. All of the above paragraphs are understood and shall apply tot this contract, except the following numbered paragraphs shall be deleted (See Item 171 for clarification). 31. The process for submitting contracts, audit reports and invoices is subject to change. Auditors and units should use the submission process and instructions in effect att the time ofs submission. Refer to the N.C. Department of State Treasurer website at ntps.Nww.ndreasurerccomesate-ancoca- govemment-finance-divBion/ocal-govermen-commssionsubm.ting-your-audte tot the email addresses provided ont the signature pages that follow. 32. All communications regarding audit contract requests for modification or official approvals will be sent 33. Modifications to the language and terms contained int this contract form (LGC-205) are not allowed. Page 6 L.GC-205 CONTRACT TO AUDIT ACCOUNTS FEES FOR AUDIT SERVICES Rev, 11/2023 1, For all non-attest services, the Auditor shall adhere to the independence rules of the AICPA Professional Code of Conduct (as applicable) and Government Auditing Standards,2018 Revision. Refer to Item 27 of this contract for specific requirements. The following information must be provided by the Auditor; contracts Financial statements were prepared by: Auditor Governmental Unit Third Party If applicable: Individual at Governmental Unit designated to have the suitable skills, knowledge, and/or experience (SKE) necessary to oversee the non-attest services and accept responsibility for the presented to the LGC without this information will be not be approved. results of these services: Name: Kathy Bond Title and Unit/C Company: Financel Liberty Email Address: fmme@owmolbetyneers ORI Not Applicable (Identification of SKE Individual ont the LGC-205 Contract isi not applicable for GAAS-only audits or audits with FYES prior to. June 30, 2020.) 2. Fees may not bei included in this contract for work performed on Annual Financial Information Reports (AFIRS), Form 990s, or other services not associated with audit fees and costs. Such fees may be included in the engagement letter but may not be included in this contract or in any invoices requiring approval of the LGC. See 3. The auditi fee information included in the table below for both the Primary Government Fees and" the DPCU Fees (if applicable) should be reported as a specific dollar amount of audit fees for the year under this contract. If any language other than an amount is included here, the contract will be returned to the audit form for correction. 4. Prior to the submission of the completed audited financial report and applicable compliance reports subject to this contract, or to an amendment to this contract (if required) the Auditor may submit interim invoices for approval for services rendered under this contract to the Secretary of the LGC, not to exceed 75% of the billings for the unit's last annual audit that was submitted to the Secretary of the LGC. All invoices for services rendered in an audit engagement as defined in 20 NCAC .0503 shall be submitted to the Commission for approval before any payment is made. Payment before approval is a violation of law. (This paragraph not applicable to contracts Items 8 and 131 for details on other allowable and excluded fees. and invoices associated with audits of hospitals). Primary Government Unit Town ofLiberty Audit Fee (financial and compliance if applicable) $ 30,000.00 Fee per Major Program (ifr not included above) $3000.00i ifa applicable Additional Fees Not Included Above (if applicable): Financial Statement Preparation (incl. notes and RSI)'s All Other Non-Attest Services TOTAL AMOUNT NOTTO EXCEED Discretely Presented Component Unit Audit Fee (financial and compliance if applicable) $ Fee per Major Program (if not included above) Financial Statement Preparation (incl. notes and RSI) $ All Other Non-Attest Services TOTAL AMOUNT NOT TO EXCEED $ $ NA $ 39,000 Additional Fees Not Included Above (if applicable): $ $ Page 7 LGC-205 CONTRACT TO AUDIT ACCOUNTS Rev. 11/2023 SIGNATURE PAGE AUDIT FIRM Audit Firm* Thompson, Price, Scott, Adams & Co.,P.A Gregory S. Adams, CPA Date* Authorized Firm Representative (typed or printed)* Signature* Email Address* gadams@papas.om GOVERNMENTAL UNIT Governmental Unit* Town ofLiberty Date Governing Board Approved Audit Contract* (Enter date. in box to right) Mayor/Chairperson (typed or printed)* Filmore York, Mayor Date Signature* Email Address* mayar@lowmollbetyneong iimole Lpb 3-25-2024 Chair of Audit Committee (typed or printed, or "NA") Signature NA" Date Email Address GOVERNMENTAL UNIT- - PRE-AUDIT CERTIFICATE Required by G.S. 159-28(a1) or G.S. 115C-441(a1). Not applicable to hospital contracts. 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. Sum Obligated by This Transaction: Kathy Bond, Finance Director Date of Pre-Audit Certificate* $ 39,000 Primary Governmental Unit Finance Officer* (lypedorp prinled Signature* Email Address* manceelowaotipetynors Page 8 LGC-205 CONTRACT TO AUDIT ACCOUNTS SIGNATURE PAGE -I DPCU (complete only if applicable) Rev. 11/2023 DISCRETELY PRESENTED COMPONENT UNIT DPCU* NA Date DPCU Governing Board Approved Audit Contract* (Enter date in box to right) DPCU Chairperson (typed or printed)* Signature* Email Address* Date* Chair of Audit Committee (typed or printed, or "NA") Signature Date Email Address DPCU - PRE-AUDIT CERTIFICATE Required by G.S. 159-28(a1) or G.S. 115C-441(a1). Not applicable to hospital contracts. This instrument. has been pre-audited. in the manner required by The Local Government Budget and Fiscal Control, Act or by the School Budget and Fiscal Control Act. Sum Obligated by this Transaction: DPCU Finance Officer (typed or printed)* Date of Pre-Audit Certificate* $ Signature* Email Address* Remember to print this form, and obtain all required signatures prior to submission. PRINT Page 9 Thompson, Price, Scott, Adams & Co., P.A. 4024 Oleander Drive! Suite 103 Wilmington, North Carolina 28403 Telephone (910) 791-4872 Fax (910)239-8294 January 1, 2024 Town ofLiberty 239; S. Fayetteville Street P.O. Box 1006 Liberty, NC27298 Tol Management and' Those Charged with Governance We are pleased to confirm our understanding oft thes services we aret toj provide for' Town ofLiberty fort thes year ended. June 30, We will audit the: financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information, andt the disclosures, which collectively comprise thel basic financial statements ofTown ofLiberty as ofand for the year ended: June 30, 2024. Accounting standards generally acceptedi in the United States of America (GAAP) provide for certain required supplementary information (RSI), such as management's discussion and analysis (MD&A), to supplement Town ofI Liberty's basic financial statements. Such information, although not aj part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers itt to be an essential part of financial reporting for placing the! basici financial statements in an appropriate operational, economic, or historical context.. As part of our engagement, we will apply certain limited procedures to Town of Liberty's RSI in accordance with auditing standards generally accepted. in the United States of America (GAAS). These limited procedures will consist ofi inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other1 knowledge we obtained during our audit of theb basic fimancial statements. We will not express an opinion or provide any assurance on the information because the limited procedures do notprovidet us with sufficienta appropriate evidence to express and opinion or provide any assurance. Thei following 2024, Audit Scope and Objectives RSI is required by GAAP and willl bes subjected to certain limited procedures, but will not be audited: 1) Management's. Discussion and Analysis 2) Net Pension Asset/Liability RSI 3) OPEB We have also been engaged to report on supplementary information other than RSI that accompanies Town of Liberty's financial statements. We will subject thei following supplementary information to the auditing procedures applied in our audit oft the financial statements and certain additional procedures, including comparing andi reconciling such information directly to the underlying accounting and other records used toj prepare the: financial statements or tot the: financial statements themselves, and other additional procedures in accordance with GAAS, and we will provide an opinion on iti in relation to the financial statements as av whole [in a separate written report accompanying our auditor'si report on thei financial statements ORi in ar report combined with our auditor'si report on the financial statements: 1) Combining individual fund financial statements, budgetary schedules, and other schedules, Inc connectiony with oura audit of thel basici financial statements, we willr readt thef following otheri information: and consider whether ai material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears tol be materially misstated. If, based on the work performed, we conclude that an uncorrected material The objectives of our audit are to obtain reasonable assurance as to whether the: financial statements as a whole are: free from material misstatement, whether due to fraud or error; issue an auditor's report that includes our opinion about whether your financial statements are: fairly presented, in all material respects, in conformity with GAAP; and 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. Reasonable assurance: is a high level of assurance buti is not absolute assurance: and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government. Auditing Standards will always detect a: material misstatement when it exists. Misstatements, including omissions, can arise from fraud or error and are considered material if there is a substantial likelihood that, individually ori int the aggregate, they would influence thej judgment ofai reasonable user madel based The objectives also include reporting on internal control over financial reporting and compliance with provisions of laws, regulations, contracts, and award agreements, noncompliance with which could have a material effect on the financial We will conduct our audit in accordance with GAAS and the standards for financial audits contained in Govermment Auditing Standards, issued byt the Comptroller General of thel United States, and willi include tests ofy your accounting records ofTown ofLiberty and other procedures we consider necessary to enable ust to express such opinions.. Asj part of an audit in accordance with GAAS and Government. Auditing Standards, we exercise professional judgment and maintain professional skepticism We will evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates madel by management. Wev will also evaluate the overall presentation oft thei financial statements, including the disclosures, and determine whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation, We willp plan andj perform thea 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 oflaws or governmental: regulations that are attributable tot the government or to acts by management or employees acting on behalf of the government. Because the determination of waste and abuse is subjective, Govermment Auditing Standards do not expect auditors toj perform specific procedures to detect waste or abuse in financial audits nor do they expect Because oft thei inherent limitations of an audit, combined with the inherent limitations ofinternal control, and because we will not perform a detailed examination ofa allt transactions, therei is an unavoidable risk that some material misstatements may not be detected byt us, event though the auditi is properly planned andj performedi in accordancer with GAAS: and Government, Auditing Standards. In addition, an audit is not designed to detect immaterial misstatements or violations of laws or governmental regulations that do: not have a direct and material effect on the financial statements, However, we willi inform the appropriate level of management of any material errors, fraudulent financial reporting, or misappropriation of assets that comes to our attention. We will alsoi informi the appropriate level of management of any violations ofl laws or governmental: regulations that come to our attention, unless clearly inconsequential. Our responsibility as auditors is limited to the period covered by our Wev willa also conclude, based ont the: audit evidence obtained, whethert there are conditions ore events, considered: in the aggregate, thati raise substantial doubt about the government's abilityt to continue as a going concern for a reasonable period oft time. - Our procedures willi include tests of documentary evidence supporting the transactions recorded in the accounts, tests of the physical existence ofi inventories, and direct confirmation of receivables and certain assets and liabilities by correspondence with selected customers, creditors, and financial institutions. We will also request written representations from your attorneys Wel havei identified the: following significant risk(s) of material: misstatement as part of our audit planning: misstatement oft the other information exists, we are: required to describe iti in our report, 1) Statistical Section ont the fimancial statements. statements in accordance with Government. Auditing Standards. Auditor's Responsibilities for the Audit of thel Financial Statements throughout the audit. auditors to provide: reasonable assurance of detecting waste or abuse. audit and does note extend to any later periods for which we arei note engaged as auditors. as part of the engagement. Improper revenue recognition Management override of controls Wemay, from time tot time and depending ont the circumstances, use third-party service providers in serving your account. We may share confidential information about you with these service providers but remain committed to maintaining the confidentiality and security of your information. Accordingly, we maintain internal policies, procedures, and safeguards to protect the confidentiality ofyour personal. information. In addition, we will secure confidentiality agreements with all service providers to maintain the confidentiality of your information and we will take reasonable precautions to determine that they have appropriate proceduresi inj place toj prevent thet unauthorized release ofyour confidential information to others. Int the event that we are unable to secure an appropriate confidentiality agreement, you will be asked toj provide your consent prior to the sharing ofyour confidential information" witht the third-party service provider. Furthermore, we will remain responsible for the work provided by any such third-party service providers. Audit) Procedures- Internal Control Our audit of financial statements does noti relieve you of your responsibilities. We will obtain an understanding of the government and its environment, including internal control relevant to the audit, sufficient toi identify and assess the risks of material misstatement of thei financial statements, whether due to error or fraud, and to design andj perform audit procedures responsive to those risks and obtain evidence thati is sufficient and appropriate to provide al basis for our opinions. Tests of controls: may! bep performed tot test the effectiveness ofcertain controlst that we consider relevant toj preventing and detecting errors andi fraudi thata arei material tot thei financial statements andt toj preventing and detecting misstatements resulting fromi illegal acts and other noncompliance: matterst that! have ad direct andi material effecto on thef financial statements. Our tests, ifperformed, willl bel lessi ins scope than would bei necessary to render an opinion on internal control and, accordingly, no opinion willl be expressedi in our report oni internal control: issued pursuant to Govermment. Auditing Standards. Thei risk of not detecting at material misstatement resulting from fraud is higher than for one1 resulting from error, as fraudi may involve collusion, forgery, intentional omissions, misrepresentation, ort the override ofinternal control. An: auditi is not designed toj 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 toi management and those charged with governance internal control related matters that are: required to be communicated under AICPA professional standards and Govermment As part of obtaining reasonable assurance about whether the financial statements are: free of material misstatement, we will perform tests ofTown ofLiberty's compliance with the provisions of applicable laws, regulations, contracts, agreements, and grants. However, the objective of our audit will: not be toj provide an opinion on overall compliance and we will not express We will also assist inj preparing thei financial statements and related notes ofTown ofLiberty in conformity with accounting principles generally accepted: in the United States of America based on: information provided by you. These nonaudit services do not constitute an audit under Government Auditing Standards and such services will not be conducted in accordance with Government. Auditing Standards. Wewill perform the: services in accordance with applicable professional standards. The other services are limited to the: financial statement services previously defined, We, in our solej professional judgment, reserve the right to refuse toj perform any procedure or take any action that could be construed as assuming management responsibilities. You agree to assume all management responsibilities relating to the financial statements and related notes and any other nonaudits services wej provide, Youy willl bei required to acknowledge: int ther management representation! letter our assistance with preparation oft thei financial statements andi related notes andt that youl havei 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; Auditing Standards. Audit] Procedures- Compliance such an opinion in our report on compliance issued pursuant to Govermment. Auditing Standards. Other Services evaluate the adequacy andi results oft those services; and accept responsibility for them, Responsibilities of] Management for thel Financial Statements Our audit willl be conducted ont thet basis thaty you acknowledge and understand your responsibility: for designing, implementing, establishing, and maintaining effective internal controlsi relevant tot thej preparation andi fair presentation of financial statements that are free from material misstatement, whether due to fraud or error, and for evaluating and monitoring ongoing activities to help ensure that appropriate goals and objectives are met; following laws and regulations; and ensuring that management and financial information is reliable andj properly reported. Management is also responsible fori implementing systems designed to achieve compliance with applicable laws, regulations, contracts, and grant agreements. You are also responsible for the selection and application of accounting principles, for the preparation and fair presentation oft the financial statements and all accompanying information in conformity with accounting principles generally accepted in the United States of America, and for compliance with applicable laws and regulations and thej provisions of contracts and grant agreements. Management is responsible for making drafts of financial stâtements, all: financial records; ands relatedi information availablet to us and for thes accuracy and completeness oft thati information (includingi information from outside oft the general and subsidiary ledgers). You are also responsible for providing us with (1) access to all information of which you are aware thati isi relevant to the preparation and fair presentation of the financial statements, such as records, documentation, identification ofall related parties and all related-party relationships and transactions, and other matters; (2) additional information that we may request for thet purpose oft thea audit; and (3) unrestricted: access toj persons within the government from whom we determinei itr necessary to obtain audit evidence. At the conclusion of our audit, we will: require certain written representations from you about your responsibilities for the financial statements; compliance with laws, regulations, contracts, and grant agreements; and other Your responsibilities include adjusting the financial statements to correct: material misstatements and for confirming to us in the written representation letter that the effects of any uncorrected misstatements aggregated by us during the current engagement: and pertaining tot thel latest period presented arei immaterial, bothi individually andi in thes aggregate, to the financial You are responsible for the design andi implementation of programs and controls toj prevent and detect fraud, and fori informing us about alll known ors suspected fraud affecting the governmenti involvimg@mamagemen, (2) employees whol have significant roles in internal control, and (3) others where the fraud could have a material effect on the financial statements. Your responsibilities: include informing us ofyour knowledge of any allegations off fraud or suspected fraud affecting the government received: in communications: from employees, former employees, grantors, regulators, or others. In addition,you: arei responsible fori identifying and ensuring that the government complies with applicable laws, regulations, contracts, agreements, and grants and for taking timely and appropriate steps to remedy fraud and noncompliance with provisions of laws, regulations, or You are responsible for the preparation of the supplementary information, which we have been engaged to report on, in conformity with accounting principles generally accepted int the United States of America (GAAP). You agreet 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 thati includes our report thereon OR make the auditedi financial statements readily available tol users oft thes supplementaryi information nol latert thant the date thes supplementary! information isi issued with our report thereon]. Your responsibilities include acknowledging to usi 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, ift they have changed, the reasons for such changes); and (4): you) have disclosed to us any significant assumptions or interpretations underlying the measurement or presentation of the supplementary information. Management is responsible for establishing and maintaining a process for tracking the status of audit findings and recommendations. Management is also responsible for identifying and providing report copies of previous financial audits, attestation engagements, performance audits or other studies related to the objectives discussed in the Audit Scope and Objectives section of this letter. This responsibility includes relaying to us corrective actions taken to address significant findings andi recommendations. resulting from those audits, attestation engagements, performance audits, or other studies. You are also responsible for providing management's views on our current: findings, conclusions, and recommendations, as well as your planned corrective actions, fort the report, andi fort the timing and format: for providing that information. responsibilities required by GAAS: and Government, Auditing Standards. statements of each opinion unitt taken as a whole. contracts org grant agreements that wei report. Engagement Administration, Fees, and Other any documents selected by us for testing. Wel understandi that youre employees willj prepare all cash, accounts receivable, or other confirmations wei request and willl locate We willj provide copies of our reports to thel Board; however, management: isi responsible for distribution oft ther reports andt the financial statements. Unless restricted by law or regulation, or containing privileged and confidential information, copies of The audit documentation for this engagement: ist the property of Thompson, Price, Scott, Adams, & Co., P.A. and constitutes confidential information, However, subject to applicablel laws andi regulations, audit documentation and appropriatei individuals willl be made availablet upont request andi in at timely manner to Oversight Agencies, af federal agency providing direct ori indirect funding, or the U.S. Government Accountability Office for purposes ofa quality review oft the audit, to1 resolve audit findings, or to carry out oversight responsibilities. We will notify you of any such request. If requested, access to such audit documentation will bej provided under the supervision ofThompson, Price, Scott, Adams, & Co.,P.A. personnel. Furthermore, upon1 request, we may provide copies ofs selected audit documentation tot the aforementioned parties. These parties mayi intend, or decide, to distribute the copies ori information contained therein to others, including other governmental agencies. The audit documentation for this engagement will be retained for a minimum of five years after thei report release date or for any additional period requested. 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 finding for guidance prior to destroying the audit documentation. Gregory Adams, CPA is the engagement partner and is responsible for supervising the engagement and signing thei reports or authorizing another individual to signt them. We expect to begin our audit on approximately. July 1,2024. Our fee for these services is stated in the LGC approved contract. Our standard hourly rates vary according to the degree of responsibility involved and the experience level of the personnel assigned to your audit. Our invoices for these fees will be rendered eachi month as work progresses and are payable on presentation. In accordance with our: firm policies, work: may be suspended ify your account becomes 60 days or more overdue and may not bei resumed until your account is paid in: full. Ifv we elect to terminate our services for nonpayment, our engagement will be deemed to have been completed upon written notification of termination, even: if we have not completed our report(s). You will be obligated to compensate us for all time expended and to reimburse us for all out-of-pocket costs through the date oft termination. The above: feei is based on anticipated cooperation from your personnel and the assumption that unexpected circumstances will not be encountered during the engagement, Ifsignificant additional timei isi necessary, we willl keep: youi informed ofany problems we encounter and our fees We will issue a written report upon completion of our audit of Town of Liberty's financial statements. Our report will be addressed to management: andt those charged with governance ofTown ofLiberty. Circumstances may arisei in which ouri report may differ fromi its expected: form and content based ont thei results of our audit. Depending on thei nature ofthese circumstances, it may be necessary for us to modify our opinions, add a separate section, or add an emphasis-of-matter or othér-matter paragraph to our auditor's report, or ifnecessary, withdraw from this engagement. If our opinions ate other than unmodified, we will discuss thei reasons with youi in advance, If, for any reason, we are unable to complete the audit or are unable to: form orl have not: formed opinions, we may decline to express opinions ori issue reports, or we may withdraw from this engagement. We will also provide a report (that does noti include an opinion) on internal control related to the financial statements and compliance with thet provisions oflaws, regulations, contracts, and grant agreements, noncompliance with which could havea material effect on the financial statements as required by Government. Auditing Standards. The report oni internal control and on compliance. and other matters wills state (1) thatt thej purpose oft ther reporti iss solely to describe thes sçope oft testing ofinternal control and compliance, andt thei results oft that testing, and nott toj provide an opinion on the effectiveness ofthe entity'si internal control on compliance, and (2) thatt thei report is ani integral part ofan audit! performed in accordance with Govermment. Auditing Standards in considering the entity'si internal control and compliance. The report will also state that the report is not suitable for any other purpose. Ifduring our audit we become aware that' Town ofLiberty is subject to an audit requirement thati is not encompassed in thet terms of this engagement, we will communicate to management and those charged with governance that an audit in accordance with U.S. generally accepted auditing standards and the standards for financial audits contained in Government. Auditing Standards may not satisfy the relevant legal, regulatory, or contractual: requirements, Wea appreciate the opportunity tol be of service to' Town ofLiberty and believe this letter accurately summarizes the significant terms of our engagement, If you have any questions, please let us know. If you agree with the terms of our engagement as our reports are tol be made available: forj public inspection. willl be adjusted accordingly Reporting described in this letter, please sign the attached copy and return itt tol us. Very truly yours, Thompson, Price, Scott, Adams, & Co., P.A, This letter correctly sets forth the understanding of RESPONSE: Management signature: Title: Date: Governance signature: Title: Date: ofLiberty. Tprotu AAAYOR 3-25-2024 Apb Town of Liberty P.O. Box 1006 239 South Fayetteville Street Liberty, North Carolina 27298 (336) 622-4276 phone (336) 622-2665 fax RESOLUTION 2024-16 RESOLUTION AUTHORIZING A TEMPORARY STREET CLOSING IN ACCORDANCE WITH THE LIBERTY CODE OF ORDINANCES S 90.33 WHEREAS, the Town of Liberty is willing to accommodate temporary street closures for WHEREAS, the Town Manager will have appropriate traffic control devices installed to WHEREAS, the Town of Liberty Chief of Police has received a written request for a temporary street closing from Liberty Library for an outdoor Multicultural Event and recommends civic events; and give notice oft the temporary street closing; and said closing per the attached map; and activities on the date of request; and WHEREAS, this event will benefit the community and not hamper other Town of Liberty NOW, THEREFORE, BE IT RESOLVED that the Town Council of the Town of Liberty, North Carolina, meeting in regular session on the 25th day of March, 2024 allow the temporary street closing below: On Saturday April 20, 2024 for the purpose of the Liberty Library Multicultural Event to occur there will be closure of the E Dameron section of parking lot behind the Library/Town Hall from 1 PM-3PM. hulu Filmore York, Mayor ATTEST: AE Jessica Brown, Town Clerk Town of Liberty P.O. Box 1006 239 South Fayetteville Street Liberty, North Carolina 27298 (336) 622-4276 phone (336) 622-2665 fax RESOLUTION 2024-17 RESOLUTION AUTHORIZING A TEMPORARY STREET CLOSING IN ACCORDANCE WITH THE LIBERTY CODE OF ORDINANCES S 90.33 WHEREAS, the Town of Liberty is willing to accommodate temporary street closures for WHEREAS, the Town Manager will have appropriate traffic control devices installed to WHEREAS, the Town of Liberty Chief of Police has received a written request for a temporary street closing from Liberty Parks and Rec Department for the Liberty Spring Festival. civic events; and give notice of the temporary street closing; and and recommends said closing per the attached map; and WHEREAS, this event will benefit the community and not hamper other Town of Liberty NOW, THEREFORE, BE IT RESOLVED that the Town Council of the Town of Liberty, North Carolina, meeting in regular session on the 25th day of March, 2024 allow the temporary activities on the date of request; and street closing below: On Saturday April 27, 2024 for the purpose of the Liberty Spring Festival to occur there will be closures of N Fayetteville Street from W Swannanoa to E Highfill Avenue for vendors and food trucks, and W Starmount from N Fayetteville to Depot St for the Kids Zone and games from 9 AM-5 5:30 PM. Filmore hue l York, MayorU ATTEST: ApBm Jessica Brown, Town Clerk Town of Liberty P.O. Box 1006 239 South Fayetteville Street Liberty, North Carolina 27298 (336) 622-4276 phone (336) 622-2665 fax www.liberty-NC.com March 25, 2024 Mr. Jack Meadows, Community Development Director Town of Siler City 311 N. Second Avenue Siler City, North Carolina 27344 Subject: AGREEMENT TO PARTICIPATE SILER CITY, LIBERTY & RAMSEUR COALITION BROWNFIELDS COALITION ASSESSMENT GRANT Dear Mr. Meadows: On March 25, 2024 the Liberty Town Council voted unanimously to participate as a non-lead member of the coalition that will be applying for an EPA Brownfields Coalition grant this fall. We look forward to participating alongside Siler City and Ramseur in this endeavor. It is our understanding that Siler City will be the lead member, with Liberty, Ramseur and potentially Franklinville and a local community-Dased organization as the non-lead members. We look forward to collectively applying for and implementing this funding in our region. Sincerely, TOWN OF LIBERTY Mayor Filmore York limse bpk