59  Minutes oft the Meeting of The Liberty Town Council Held on August 26, 2024 5:30 pm  Present  Mayor: Council:  The Honorable Filmore York and' Terry Caviness Scott Kidd Jessica Brown Robert Giles II  Don Herndon, Tyson Nixon, Larry Coble, Greg Carpenter,  Town Manager: Town Clerk: Town Attorney: Staff:  Finance Director; Kathy Bond, Finance Specialist; Adrian Abbott, Assistant Town Manager; Janie Phelps, Police Detective; William Hargrove, Police Chief; David Semrad,  and Police Lieutenant; Luke Scala  ToOrder  The Mayor welcomed everyone and called the meeting to order at 5:30 PM. He remarked  that all Council Members were present. Pledge ofA Alegiance/hyocation  Mayor Filmore York led the Pledge of Allegiance and then the Mayor asked everyone to join in a Moment of Silence and remember the families oft the Eastern Randolph students  who lost their lives in a car accident and the students in the hospital.  Adoption of Agenda  Council Member Tyson Nixon made a motion to adopt the agenda. Council Member Don Herndon seconded the motion which passed unanimously: Council MemberLarry Coble voted yes, Council Member Don Herndon voted yes, Council Member Tyson Nixon voted yes, Council Member Greg Carpenter, and Council Member Terry Caviness  voted yes. The agenda was approved.  Public Hearing Edwards Crane Special Use Allocation  Mayor York read the quasi judicial script. The Town Clerk swore in speakers and there were no disclosures. The Hearing was called to order at 5:35 PM. This is a request by the applicant Edwards Inc. for a SNIA (Special Nonresidential Intensity Allocation) tot the properties of parcel numbers 8726452193 and 8726349835, located at 10121 Old Liberty Road. The proposed plan isi requesting to exceed the maximum built upon area of24% for the WS-III watershed classification in a low-density community. Janie Phelps came forward to give the staffi report. The Plans are included in the packet. The building is on the left hand side oft the property. Council Member Caviness asked if the proposed construction of35% should be on the ordinance to be signed. Ms. Phelps said most    applicants go bigger for the future but it is not required. She updates the tracking sheet. As ofJuly 2, 2024 the Town has 9,440,922.309 square feet, or 216.73 acres, remaining to utilize the 10/70 rule in the Sandy Creek watershed, where this project is located. This project is proposed to develop approximately 310,081 square feet, or 7.12 acres, which is approximately 35.6% BUA oft this project area. Council Member Nixon asked if there is anything to push water to the back oft the property away from the road. Ethan Vester said the water collects in a drainage ditch and moves to storm water collections. Mayor York asked ifa anyone else would like to speak which no one did and closed the Hearing at 5:50 Council Member Tyson Nixon made a motion to approve the SUP for a Special Nonresidential Intensity Allocation and finds it is consistent with the Land Development Plan, zoning ordinance, and watershed development ordinance by meeting specified standards as required with quasi-judicial hearings. Council Member Larry Coble seconded the motion with the consistency statement which passed unanimously with Council Members: Larry Coble, Terry Caviness, Don Herndon, Tyson Nixon and Greg  60  PM.  Carpenter voting yes. Code Enforcement Report  Paul Fuller with State Code Enforcement, Inc. came forward last week and is not present  tonight. The report is included in the agenda.  Finance Report  Finance Director Kathy Bond came forward to give her reports. She has included end of year revenues and expenditures. The top sheets are overviews as of June 30, 2024. The Council has said they would like toj put $130,000 back in the budget, She is moving sales and use into reimbursement line accounts She wants to look at Enterprise funds and make sure that savings is being built back as well. Council Member Greg Carpenter made a motion to approve the Finance Report. 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.  Approval ofMinutes  Council Member Don Herndon made a motion to approve the minutes from the Work Session July 15,2024; and, the Council Meeting July 22, 2024. Counçil Member Larry Coble seconded the motion which passed unanimously: : Council Member Don Herndon voted yes, Council Member Tyson Nixon voted yes, Council Member Terry Caviness voted yes, Council Member Greg Carpenter voted yes, and Council Member Larry Coble  voted yes, The minutes were approved.  Consent Agenda  The Consent Agenda includes: Road Closure Resolution Parks and Recreation September Festival, ABC Board Appointment Mark Jones, Fee Schedule addition - add fees to Code Enforcement - Ordinance 91.5, ARPA Forms for sub-grant participants from NCDEQ, and Budget Amendment # 5-L Library. Council Member Larry Coble made a motion to approve the Consent Agenda. Council Member Tyson Nixon seconded the motion which passed unanimously with Counçil Members: Larry Coble, Terry Caviness,  Don Herndon, Greg Carpenter and Tyson Nixon voting yes.    Old Business  61  ABC Permitting Discussion  Townl Manager Scott Kidd said he will meet with Chief Semrad next week to discuss Royal Taco's permit. Will Doerfer was the previous designated ABC official. The Assistant Town Manager/Zoning Administrator, Fire Department, and Police Department all sign off on the recommendation. Iti is possible to make him the designated official per the attached resolution. Council Member Carpenter asked ifl he would review their reports. Council Member Nixon said he thinks it is a good idea. Council Member Tyson Nixon made ai recommendation that Town Manager Scott Kidd be the ABC liaison and main designated official. Council Member Larry Coble seconded the motion which passed unanimously with Council Members: Larry Coble, Terry Caviness, Don Herndon,  Tyson Nixon, and Greg Carpenter voting yes.  New Business  Budget Amendment # 7NC Commerce  This amendment is to move funds from General Fund Appr to the NC Commerce Line This is the contract for the new year for Thompson, Price, Scott, Adams, & Co. PA to perform the Town' 's audit for the Fiscal Year ending June 30, 2025. Council Member Tyson Nixon made a motion to approve the contract. Council Member Terry Caviness seconded the motion which passed unanimously with Council Members: Larry Coble, Terry Caviness, Don Herndon, Greg Carpenter, and Tyson Nixon voting  Item for McGill Invoice #2402507-2276.  Audit Contract- Thompson, Price, Scott, Adams, & Co. PA  yes.  Administrative Reports  Manager's Report  The Town Manager said he is reviewing IT contracts and looking at other websites to be the best steward of the Town's money. We are looking at companies that would have zoning permitting capabilities as well. He recognized Town Clerk Jessica Brown for receiving her certification from the NC. Association ofN Municipal Clerks.  Council Comments  Council Member Nixon said the Fire Alarm going off at noon everyday gets mundane  and suggested maybe going back to once a week.    Adjourn  There being no further business to discuss, Council Member Tyson Nixon made ai motion CQ to adjourn. Council Member Larry Coble seçonded the motion which passed unanimously with a vote: Council Member Don. Herndon voted yes, Council Member Tyson Nixon voted yes, Council Member Terry Caviness voted yes, Council Member Greg Carpenter voted yes, and Council MemberI Larry Coble voted yes. The meeting was  adjourned. :  Mayor Filmore, York  h Ypb  ATTEST: Pa P Bum  1    GREAT PLACE TO Live  Piberty  ATTACHMENT) B Edwards, Inc  AN ORDINANCE APPROVING A SUP FOR. A SNIA FOR THE' TOWN OF LIBERTY  WHEREAS, the Town ofLiberty Town Council has considered the request for a Special Use Permit (SUP), being approximately 20,02 acres, being all ofj parcels 8726452193 and 8726349835, located at 10121 Old Liberty Rd, Liberty, NC: 27298, to develop the site asi needed in accordance with the Town ofLiberty Ordinances to account for future growth oft the Town and to exceed the maximum built upon area of24% by granting a Special Nonresidential Intensity Allocation, and finds that the request is consistent with the Town ofLiberty ordinances;  and  WHEREAS, the Council finds that the SUP request set forth in the Application and incorporated herein by reference, if approved as pursuant to thej provisions oft the zoning ordinance, would be suitable for the property proposed for the SUP; and  WHEREAS, the Council finds the SUP request to meet the standards oft the zoning BEI IT ORDAINED, by the' Town Council oft the' Town ofLiberty as follows: 1. The application to apply a SUP to all oft the property described as Parcel No's. 8726452193 and 8726349835, and being approximately 20.02 acres, is approved and the  ordinance and the Land Development Plan; and  zoning map is amended accordingly.  2. This ordinance shalll become effective upon its adoption.  Adopted this 26th day of August, 2024  hime Filmore York, Mayor Town ofLiberty  Sub  ATTEST:  Dpn p JessiçABrown, Clerkt toti the Council TowibfLiberty  Town of Liberty e P.O. Box 1006 e 128 South Fayetteville Street e Liberty, NC 27298 Phone (336) 622-4276 o Fax (336) 622-2665 e www.llbertly-NC.com        GRRAT PAACE To LvVE  Piberty  ATTACHMENTC  RESOLUTION OF THE TOWN OFI LIBERTY TOWN COUNCIL APPROVING A CONSISTENCY STATEMENT AND STATEMENT OF  REASONABLENESS FOR THE. APPROVALOF  Edwards, Inc.  WHEREAS, the Town ofLiberty Town Council has received the application to applya Special Usel Permit (SUP) to Parcels 8726452193 and 8726349835 (the "Amendment"): and finds that the same is consistent with the Town ofLiberty Land Development Plan; and  WHEREAS, in addition, the Town ofLiberty Town Council considers the Amendment tol be reasonable and ini thej public interest because the SUP for a Special Nonresidential Intensity Allocation is consistent with the Land Development Plan, zoning ordinance, and watershed development ordinance by meeting specified standards as required with quasi-judicial hearings. NOW, THEREFORE, BEI IT RESOLVED, by the Town ofLiberty Town Council that, for thei reasons set forth above, the Amendment and presented documentation are found to be consistent with the' Town ofLiberty Land Development Plan and are determined to be  reasonable and in thej public interest. Adopted, this the 26th day of August, 2024  Fimu Lpub Filmore York, Mayor Town ofLiberty  ATTEST:  Council  ho  0  #aa  Town of Liberty e P.C O. Box 1006 e 128 South Fayetteville Street o Liberty, NC27298 Phone (336)622-4276 e Fax (336)622-2665 e www.liberty-NC.com        Town of Liberty P.O.Box 1006 239 South Fayetteville Street Liberty, North Carolina 27298 (336)622-4276 phone (336) 622-2665 fax  RESOLUTION 2024-21  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  civic events; and WHEREAS, WHEREAS, temporary street closing closing per the attached map; and WHEREAS, activities on the date of request; and NOW, THEREFORE, IT North Carolina, meeting in regular session on the  the Town Manager will have appropriate traffic control devices installed to the Town of Liberty Chief of Police has received a written request for a from Parks and Rec Director Kolby McPherson and recommends said this event will benefit the community and not hamper other Town of Liberty  give notice of the temporary street closing; and  BE RESOLVED that the Town Council of the Town of Liberty,  26th of day August,  2024 allow the temporary  street closing below: On Saturday  September 28, 2024 for the purpose oft the September Downtown Festival to  Street from West Swannanoa to Starmount Avenue  occur there will be closures of Depot  North Fayetteville Street from houses, portajohns and  for vendors, food trucks and childrens area, and portajohns. vendors, and Starmount Avenue from Depot Street to N. Fayetteville  West Swannanoa Avenue to Highfill Street for fire trucks,bounce Street may be used transit. Metal barricades at the entrance from Depot St. entrance to school will be open  for 5 PM.  St and Fayettevile StSwannanoa Avenue from 11:00AM-  due to barricades at Highfill  Hiimue Lu Filmore York, Mayor  ATTEST:  #Ala        L. HigHfI Ave.  E. Highfl Ave.  X x  W Stormount X  6  Ave.  X  e  -  8 f  x  W Swannanoa Ave.        Meeting Date. August 26, 2024  Town ofLiberty Budget Amendment (FY 2024-2025 #05) Council Approval Needed BEI IT ORDAINED, by the Liberty Town Council that the Town ofLiberty Budget Ordinance for fiscal year 2024-2025, which was adopted on June 17,2024, be amended as follows: This amendment is to move funds from General Fund. Appr to the Library Dept expenditures line items for "Preliminary Expansion Drawings". (These are monies that will be transferred from the NCCMT Lowe acct to the Truist General fund account once budget amendment is approved.) Section 1: The following revenue and expenditures in the General Fund Appr. and Library  line items shall bei increased by the amounts indicated:  101 Fund Line Item 10-3990-000  Amended Budget 55,000 55,000  General Fund General Fund Balance Appr Total Expenditures  Budget  Change 0.00 55,000 0 55,000  101 Fund Line Item 10-6300-781  Amended Budget 55,000 55,000  General Fund Lib- Lowe Transfer for Bldg Total Revenues  Budget  Change 0 55,000 0 55,000  Prepared By: Kathy Bond, Finance Director Reviewed By: Scott Kidd, Town Manager Town Manager Initials: R  timele Filmore Mayor York,  ATTEST:  ll  Date: 8-26-24  ORAun A fhm  Tow Clerk Date:  spenoaL        NORTH CAROLINA (919)779-0700  ALCOHOLIC BEVERAGE CONTROL COMMISSION  DESIGNATED OFFICIAL RESOLUTION  RESOLUTION OF THE ÇITY OF Aondouoh  becty  COUNTY OF  REGARDING THE DESIGNATION OF AN OFFICIAL  TO MAKE RECOMMENDATIONS TO THE NORTH CAROLINA ALCOHOLIC  BEVERAGE CONTROL COMMISSION ON ABC PERMIT APPLICATIONS.  WHEREAS G.S.18B-904() authorizes a governing body to designate an official, by name or by position, to make recommendations concerning the suitability of persons or locations for. ABC  permits; and  WHEREAS the Cityof Rardolph  kibicty  County of  wishes to notify the NC ABC Commission of its  designation as required by G.S.18B-904();  BBITTHEREFORE: RESOLVED that Scolt Kidd  (Name ofOfficial) Libechy  Taa. Alpgr  is hereby designated to notify the North Carolina Alcoholic Beverage Control Commission of the  recommendations of the Cityof permits within its jurisdiction.  County of  Bandolpa  regarding the suitability 6f persons and locations for ABC  BE IT FURTHER RESOLVED THAT notices to the City of Hprh  County  of  Bapdolph Mailing address: Office location: City: Zip Code: h  should be mailed or delivered to the official designated  above at the following address:  PO Boy tooG 126  Faylleuille 8  Libichy  NC  Doa4 Phone #: 30-002-4000  This the 26 day of Agust  Ahe Lyb A  Sworn to and subscribed before me this the 2 of  20  Avgust pBw (Clerk)  3  2 C  poils  Location: 4001 E. Tryon Road Raleigh,NC27610  Mail: 4307 Mail Service Cènter Raleigh, NC27690-4307  o        RESOLUTION FOR ALLOWABLE COSTS AND COST PRINCIPLES FOR EXPENDITURE OF AMERICAN RESCUE PLAN ACT CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS BY NORTH CAROLINA LOCAL GOVERNMENTS WHEREAS the Town ofLiberty has received an allocation of funds from the Coronavirus State and Local Fiscal Recovery Funds of H.R. 1319 American Rescue Plan Act of 2021 WHEREAS the funds may be used for projects within these categories, to the extent authorized 1. Support public health expenditures, by funding COVID-19 mitigation efforts, medical expenses, behavioral healthcare, and certain public health and safety staff; 2. Address negative economic impacts caused by the public health emergency, including economic harms to workers, households, small businesses, impacted industries, and the 3. Replace lost public sector revenue, using this funding to provide government services to the extent of the reduction in revenue experienced due to the pandemic; 4. Provide premium pay for essential workers, offering additional support to those who have borne and will bear the greatest health risks because oftheir service in critical infrastructure 5. Invest in water, sewer, and broadband infrastructure, making necessary investments to improve access to clean drinking water, support vital wastewater and stormwater WHEREAS the ARP/CSLFRF are subject to the provisions of the federal Uniform Grant WHEREAS the Compliance and Reporting Guidance for the State and Local Fiscal Recovery  (ARP/CSLFRF); and by state. law.  public sector;  sectors; and,  infrastructure, and to expand access to broadband internet; and  Guidance, 2 CFR Sect. 200 (UG), as provided in the Assistance Listing; and  Funds provides, ini relevant part:  Allowable Costs/Cost Principles. As outlined in the Uniform Guidance at 2 CFR Part 200, Subpart E: regarding Cost Principles, allowable costs are based on the premise that a recipient is responsible for the effective administration of Federal awards, application of sound management practices, and administration of Federal funds in a manner consistent with the program objectives and terms and conditions of the award. Recipients must implement robust internal controls and effective monitoring to ensure compliance with the Cost Principles, which are important for building trust and accountability. [ARP/CSLFRF] Funds may be, but are not required to be, used along with other funding sources for a given project. Note that [ARP/CSLFRF] Funds may not be used for a non- Federal cost share or match where prohibited by other Federal programs, e.g., funds may  not be used for the State share for Medicaid.  1        Treasury'sI Interim Final Rule and guidance and the Uniform Guidance outline the types of costs that are allowable, including certain audit costs. For example, per2 2 CFR 200.425,a reasonably proportionate share of the costs of audits required by the Single Audit Act Amendments of 1996 are allowable; however, costs for audits that were not performed in accordance with 2 CFR Part 200, Subpart F are not allowable. Please see 2 CFR Part 200,  Subpart E: regarding the Cost Principles for more information.  a. Administrative costs: Recipients may use funds for administering the SLFRF program, including costs of consultants to support effective management and oversight, including consultation for ensuring compliance with legal, regulatory, and other requirements. Further, costs must be reasonable and allocable as outlined in 2 CFR 200.404 and 2 CFR 200.405. Pursuant to the [ARP/CSLFRF] Award Terms and Conditions, recipients are permitted to charge both direct and indirect costs to their SLFRF award as administrative costs. Direct costs are those that are identified specifically as costs of implementing the ARP/CSLFRE program objectives, such as contract support, materials, and supplies for a project. Indirect costs are general overhead costs of an organization where aj portion ofsuch costs are allocable to the [ARP/CSLFRF) award such as the cost of facilities or administrative functions like a director's office. Each category of cost should be treated consistently in like circumstances as direct or indirect, and recipients may not charge the same administrative costs to both direct and indirect cost categories, or to other programs. Ifai recipient has a current Negotiated Indirect Costs Rate Agreement (NICRA) established with a Federal cognizant agency responsible for reviewing, negotiating, and approving cost allocation plans or indirect cost proposals, then the recipient may use its current NICRA. Alternatively, if the recipient does not have a NICRA, the recipient may elect to use the de minimis rate of 10 percent of the modified total direct costs pursuant to 2 CFR b. Salaries and Expenses: In general, certain employees' wages, salaries, and covered benefits are an eligible use of ARP/CSLFRF award funds; and  200.414(f).  WHEREAS Subpart B of the UG dictates allowable costs and cost principles for expenditure of  ARP/CSLFRF funds; and  WHEREAS Subpart E oft the UG (specifically, 200.400) states that:  The application of these cost principles is based on the fundamental premises that:  (a) The non-Federal entity is responsible for the efficient and effective administration of the Federal award through the application of sound  management practices.  2        (b) The non-Federal entity assumes responsibility for administering Federal funds in a manner consistent with underlying agreements, program objectives, and the terms and conditions of the Federal award. (c) The non-Federal entity, in recognition of its own unique combination of staff, facilities, and experience, has the primary responsibility for employing whatever form of sound organization and management techniques may be necessary in order to assure proper and efficient (d) The application of these cost principles should require no significant changes in the internal accounting policies and practices oft the non-Federal entity. However, the accounting practices oft the non-Federal entity must be consistent with these cost principles and support the accumulation of costs asi required by the principles, and must provide for adequate documentation (e) In reviewing, negotiating and approving cost allocation plans or indirect cost proposals, the cognizant agency for indirect costs should generally assure that the non-Federal entity is applying these cost accounting principles on a consistent basis during their review and negotiation of indirect cost proposals. Where wide variations exist in the treatment of a given cost item by the non-Federal entity, the reasonableness: and equity of For non-Federal entities that educate and engage students in research, the dual role of students as both trainees and employees (including pre- and post-doctoral staff) contributing to the completion of Federal awards for research must be recognized ini the application ofthese principles. (g) The non-Federal entity may not earn or keep any profit resulting from Federal financial assistance, unless explicitly authorized by the terms and  administration oft the Federal award.  tos support costs charged to the Federal award.  such treatments should be fully considered.  conditions of the Federal award;  BEITRESOLVED that the governing board ofThe Town of] Liberty hereby adopts and enacts the following US Cost Principles Policy for the expenditure of ARP/CSLFRF funds.  ALLOWABLE COSTS AND COSTS PRINCIPLES POLICY  OVERVIEW  Title 2U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, commonly called Uniform Guidance (UG), specifically Subpart E, defines those items of cost that are allowable, and which are unallowable. The tests of allowability under these principles are: (a) the costs must be reasonable; (b) they must be allocable to eligible projects under the Coronavirus State and Local Fiscal Recovery Funds ofH.R. 1319 American Rescue Plan Act of 2021 (ARP/CSLFRF);()  3        they must be given consistent treatment through application of those generally accepted accounting principles appropriate to the circumstances; and (d) they must conform to any limitations or exclusions set forth ini these principles or in the ARP/CSLFRF grant award as to types or amounts ofc cost items. Unallowable items fall into two categories: expenses which are by their nature unallowable (e.g., alcohol), and unallowable activities (e.g., fund raising). The' Town of] Liberty shall adhere to all applicable cost principles governing the use of federal grants. This policy addresses the proper classification ofboth direct and indirect charges to ARP/CSLFRF funded projects and enacts procedures to ensure that proposed and actual expenditures are consistent with the ARP/CSLFRF grant award terms and all applicable federal Responsibility for following these guidelines lies with the Town Manager, Finance Director, and the Liberty Town Council, who are charged with the administration and financial oversight of the ARP/CSLFRE. Further, all local government employees and officials who are involved in obligating, administering, expending, or monitoring ARP/CSLFRF grant funded projects should be well versed with the categories of costs that are generally allowable and unallowable. Questions on the allowability of costs should be directed to Town Manager and/or Finance Director. As questions on allowability ofcertain costs may require interpretation and judgment, local government personnel are encouraged to ask for assistance in making those determinations. All costs expended using ARP/CSLFRF funds must meet the following general criteria: 1. Bei necessary and reasonable for the proper and efficient performance and  regulations in the UG.  GENERAL COST ALLOWABILITY CRITERIA  administration of the grant program. necessary, consideration may be given to:  A cost must be necessary to achieve a project object. When determining whether a cost is  Whether the cost is needed for the proper and efficient performance oft the grant Whether the cost is identified in the approved project budget or application. Whether the cost aligns with identified needs based on results and findings from a Whether the cost addresses project goals and objectives and is based on program A cost is reasonable if, in its nature and amount, it does not exceed that which would be incurred by a prudent person under the circumstances prevailing at the time the decision toi incur the cost was made. For example, reasonable means that sound business practices were followed, and purchases were comparable to market prices. When determining  project.  needs assessment. data.  reasonableness ofa cost, consideration must be given to:  4        Whether the cost is a type generally recognized as ordinary and necessary for the operation oft the Town of Liberty or the proper and efficient performance ofthe The restraints or requirements imposed by factors, such as: sound business practices; arm's-length bargaining; federal, state, and other laws and regulations; Market prices for comparable goods or services for the geographic area. Whether individuals concerned acted with prudence in the circumstances considering their responsibilities to The Town ofLiberty, its employees, the Whether The' Town ofLiberty significantly deviates from its established practices and policies regarding the incurrence of costs, which may unjustifiably  federal award.  and terms and conditions oft the ARP/CSLFRF award.  public at large, and the federal government. increase the ARP/CSLFRF award's cost.  2. Be allocable to the ARP/CSLFRF federal award. A cost is allocable to the ARP/CSLFRF award ift the goods or services involved are chargeable or assignable to the ARP/CSLFRF award in accordance with the relative benefit received. This means that the ARP/CSLFRF grant program derived al benefit in proportion to the funds charged to the program. For example, if50 percent ofai local government program officer 's. salary is paid with grant funds, then the local government must document that the program officer Ifa cost benefits two or more projects or activities inj proportions that can be determined without undue effort or cost, the cost must be allocated to the projects based on the proportional benefit. Ifa cost benefits two or more projects or activities inj proportions that cannot be determined because oft the interrelationship oft the work involved, then the costs may be allocated or transferred to benefitted projects on any reasonable documented basis. Where the purchase of equipment or other capital asset is specifically authorized by the. ARP/CSLFRE, the costs are assignable to the Federal award regardless oft the use that may be made of the equipment or other capital asset involved when no longer needed for 3. Bea authorized and not prohibited under state or local laws or regulations. 4. Conform to any limitations or exclusions set forth in the principles, federal laws, ARP/CSLFRF award terms, and other governing regulations as to types or amounts 5. Be consistent with policies, regulations, and procedures that apply uniformly to both the ARPICSLFRF federal award and other activities oft the Town ofLiberty. 6. Be accorded consistent treatment. A cost MAY NOT be assigned to a federal award as ad direct cost and also be charged to a federal award as an indirect cost. And a cost must be treated consistently for both federal award and non-federal award expenditures.  spent at least 50 percent of his/her time on the grant program.  the purpose for which it was originally required.  ofcost items.  5        7. Be determined in accordance with generally accepted accounting principles 8. Benet of all applicable credits. The term "applicable credits" refers to those receipts or reduction of expenditures that operate to offset or reduce expense items allocable to the federal award. Typical examples of such transactions are purchase discounts; rebates or allowances; recoveries or indemnities on losses; and adjustments of overpayments or erroneous charges. To the extent that such credits accruing to and received by the local government related to the federal award, they shall be credited to the ARP/CSLFRF award, either as a cost reduction or a cash refund, as appropriate and consistent with the  (GAAP), unless provided otherwise in the UGG.  award terms.  9. Beadequately documented. DIRECT AND INDIRECT COSTS  Allowable and allocable costs must be appropriately classified as direct or indirect charges. It is essential that each item of cost be treated consistently in like circumstances either as a direct or Direct costs are expenses that are specifically associated with aj particular ARP/CSLFRP-elgble project and that can be directly assigned to such activities relatively easily with al high degree of accuracy. Common examples of direct costs include salary and fringe benefits of personnel directly involved in undertaking an eligible project, equipment and supplies for the project, subcontracted service provider, or other materials consumed or expended in the performance ofa Indirect costs are (1) costs incurred for a common orj joint purpose benefitting more than one ARP/CSLFRP-eligbie project, and (2) not readily assignable to the project specifically benefited, without effort disproportionate to the results achieved. They are expenses that benefit more than one project or even more than one federal grant. Common examples ofi indirect costs include utilities, local telephone charges, shared office supplies, administrative or secretarial Fori indirect costs, the Town ofL Liberty may charge a 10j percent de minimis rate of modified total direct costs (MTDC). According to UGG Section 200.68 MTDC means all direct salaries and wages, applicable fringe benefits, materials and supplies, services, travel, and up to the first $25,000 of each subaward (regardless of the period of performance the subawards under the award). MTDC EXCLUDES equipment, capital expenditures, charges for patient care, rental costs, tuition remission, scholarships and fellowships, participant support costs and the portion of  an indirect cost.  grant-eligible project.  salaries.  each subaward in excess of$25,000.  SPECIAL PROVISIONS FOR STATE AND LOCAL GOVERNMENIS  $200.416 COST ALLOCATION PLANS AND INDIRECT COST PROPOSALS.        (a) For states, local governments and Indian tribes, certain services, such as motor pools, computer centers, purchasing, accounting, etc., are provided to operating agencies on a centralized basis. Since Federal awards are performed within the individual operating agencies, there needs to be a process whereby these central service costs can be identified and assigned to benefitted activities on a reasonable and consistent basis. The central (b) Individual operating agencies (governmental department or agency), normally charge Federal awards for indirect costs through an indirect cost rate. A separate indirect cost rate(s) proposal for each operating agency is usually necessary to claim indirect costs under (1)Thei indirect costs originating in each department or agency of the governmental unit (2) The costs of central governmental services distributed through the central service cost (c) The requirements for development and submission of cost allocation plans (for central service costs and public assistance programs) and indirect cost rate proposals are contained  service cost allocation plan provides that process.  Federal awards. Indirect costs include: carrying out Federal awards and  allocation plan and not otherwise treated as direct costs.  in appendices V, VI and VII to this part. $200417/NTERAGENCY SERVICE.  The cost of services provided by one agency to another within the governmental unit may include allowable direct costs of the service plus a pro-rated share of indirect costs. A standard indirect cost allowance equal to ten percent of the direct salary and wage cost of providing the service (excluding overtime, shift premiums, and fringe benefits) may be used in lieu of determining the actual indirect costs of the service. These services do not include centralized services included in central service cost allocation plans as described  in Appendix V to Part 200.  COST ALLOWABILITY REVIEW PROCESS PREAPPROVAL COST ALLOWABILITY REVIEW  Before an ARP/CSLFRF-funded project is authorized, the Town Manager and/or Finance Director must review the proposed cost items within an estimated project budget to determine whether they are allowable and allocable and whether cost items will be charged as direct or indirect expenses. This review will occur concurrently with the review of project eligibility and  before obligating or expending any ARP/CSLFRF funds.  Local government personnel must submit proposed ARP/CSLFRF projects to Town Manager and/or Finance Director for review. In addition to other required information, all proposed project submissions must delineate estimated costs by cost item. Along with a general review of project eligibility and conformance with other governing board management directives, ifi required, Town Manager and/or Finance Director must  7        review estimated costs for specific allowable cost requirements, budget parameters, indirect rates, fringe benefit rates, and those activities/costs that require pre-approval by Ifaj proposed project includes a request for an unallowable cost, the Town Manager and/or Finance Director will return the proposal to the requesting party for review and, if Once a proposed project budget is pre-approved by Town Manager and/or Finance Director, the local government personnel responsible for implementing the project must conform actual obligations and expenditures to the pre-approved project budget.  the US Treasury.  practicable, resubmission with corrected cost items.  POST-EXPENDITURE COST ALLOWABILITY REVIEW  Once an expenditure isi incurred related to an eligible project, and an invoice or other demand for payment is submitted to the local government, the Town Manager and/or Finance Director must perform a second review to ensure that actual expenditures comprise allowable costs.  All invoices or other demands for payment must include a breakdown by cost item. The cost items should mirror those presented in the proposed budget for the project. Ifan invoice or other demand for payment does not include a breakdown by cost item, the Town Manager and/or Finance Director will return the invoice to the project manager The Town Manager and/or Finance Director must review the individual cost items listed on the invoice or other demand for payment to determine theirallowability and  and/or vendor, contractor, or subrecipient for correction.  allocability.  Ifall cost items are deemed allowable andj properly allocable, Town Manager and/or Finance Director must proceed through the local government's normal disbursement  process.  Ifany cost item is deemed unallowable, the Town Manager and/or Finance Director will notify the project management and/or vendor, contractor, or subrecipient that a portion of the invoice or other demand for payment will not be paid with. ARP/CSLFRF funds. The Town Manager and/or Finance Director may in their discretion, and consistent with this policy, allow an invoice or other demand for payment to be resubmitted with ai revised cost allocation. Ifthe local government remains legally obligated by contract or otherwise toj pay the disallowed cost item, it must identify other local government funds to cover the disbursement. The Town ofLiberty'ss governing board must approve any allocation of  other funds for this purpose.  8        The Town Manager and/or Finance Director must retain appropriate documentation of budgeted cost items per project and actual obligations and expenditures ofc cost items per  project. COST TRANSFERS  Any costs charged to the ARP/CSLFRF federal award that do not meet the allowable cost criteria must be removed from the award account and charged to an account that does not require Failure to adequately follow this policy and related procedures could result in questioned costs, audit findings, potential repayment of disallowed costs and discontinuance of funding.  adherence to federal UGG or other applicable guidelines.  hime Lyl  paln pBm ATTEST  MAYOR EXHIBIT A  Selected Items of Cost  Uniform Guidance General Reference 2CFR5200.421  Allowability  Advertising and public relations costs  Allowable with restrictions  Advisory councils Alcoholic beverages Alumni/ae activities Audit services Bad debts Bonding costs  2CFR5200.422 Allowable with restrictions  2CFR5200.423  Unallowable  2CFR5200.424 Nots specifically addressed  2CFR5200.425 2CFR$200.426  Allowable with restrictions Unallowable  2CFR5200.427 Allowable with restrictions 2CFR5200.428 Allowable  Collection ofi improper payments Commencement and convocation costs  2CFR5200.429 Nots specifically addressed  9        compensation - personal services Compensation: -T fringe benefits Conferences Contingency provisions Contributions and donations  2CFR5200.430 Allowable with restrictions; Special conditions  apply (e8,5200.4300/5) Allowable with restrictions Allowable with restrictions Unallowable with exceptions  2CFR5200.431 2CFR5200.432 2CFR5200.433 2CFRS200.434  Unallowable (made by non-federal entity); not reimbursable but value may be used as cost sharing or matching (made to non-federal  entity)  Defense and prosecution of criminal and 2CFR5200.435 civil proceedings, claims, appeals and patent  Allowable with restrictions  infringements Depreciation  2CFR5200.436 Allowable with qualifications  Employee health and welfare costs Entertainment costs  2CFR5200.437 2CFR5200.438 2CFR5200.439  Allowable with restrictions Unallowable with exceptions  Equipment and other capital expenditures  Allowability based on specific requirement  Exchange rates settlements costs  2CFR9200.440 Allowable with restrictions  Fines, penalties, damages and other 2CFR5200.441 Fund raising and investment management 2CFR5200.442 Gains and losses on disposition of 2CFR5200.443  Unallowable with exceptions Unallowable with exceptions Allowable with restrictions  depreciable assets General costs ofg government Goods and services for personal use  2CFR5200.444 Unallowable with exceptions  2CFR5200.445 Unallowable goods/services); allowable  10        (housing) with restrictions  Idle facilities andi idle capacity Insurance and indemnification Intellectual property Interest Lobbying  2CFR5200.446 Idle facilities - unallowable with exceptions;  Idle capacity allowable with restrictions  2CFR5200.447 Allowable with restrictions 2CFR5200.448 Allowable with restrictions 2CFR5200.449 Allowable with restrictions  2CFR5200.450 2CFR5200.451  Unallowable  Losses on other awards or contracts  Unallowable (however, they are required tol be included in the indirect cost rate base for allocation of indirect costs) Allowable with restrictions Allowable with restrictions  Maintenance and repair costs ofc computing devices Memberships, professionalactivity, costs Organization costs Participant: support costs Plant and security costs Pre-award costs  2CFR5200.452  Materials ands supplies costs, including costs 2CFR5200.453  subscriptions, and 2CFR5200.454 Allowable with restrictions; unallowable for  lobbying organizations  2CFRS200.455 Unallowable except federal prior approval 2CFR5200.456 Allowable with prior approval of the federal 2CFRS:200.457 Allowable; capital expenditures are subject to  awarding agency $200.439  2CFR 52 200.458  Allowable ifc consistent witho other allowabilities and with prior approvald of thet federal awarding  agency  Professional services costs Proposal costs  2CFR5200.459 2CFR5200.460  Allowable with restrictions Allowable withr restrictions  11        Publication and printing costs Rearrangement and reconversion costs  2CFR5200.461 2CFRS200.462 2CFR5200.463 2CFR9200.464  Allowable with restrictions Allowable (ordinary and normal) Allowable with restrictions Allowable with restrictions Allowable with restrictions  Recruiting costs  Relocation costs of employees  Rental costs of real property and equipment 2CFR5200.465  Scholarships and student aid costs Selling and marketing costs Specialized service facilities Student activity costs  2CFR9200.466 Not specifically: addressed  2CFR5200.467 2CFRS200.468 2CFR5200.469  Unallowable with exceptions Allowable with restrictions thet federal award  Unallowable unless specifically provided for in  Taxes (including Value Added Tax) Termination costs Training and education costs Transportation costs Travel costs Trustees  2CFR5200.470 Allowable with restrictions  2CFRS200.471 2CFR5200.472 2CFRS200.473 2CFR5200.474  Allowable with restrictions Allowable for employee development Allowable with restrictions Allowable with restrictions  2CFR5200.475 Not specifically addressed  12        CONFLICT OF INTEREST: POLICY  APPLICABLE TOC CONTRACTS AND SUBAWARDS OFTHE TOWN OF] LIBERTY  SUPPORTED BY FEDERAL FINANCIAL ASSISTANCE  Scope of Policy  a. Purpose of Policy. This Conflict of Interest Policy ("Policy") establishes conflict of interest standards that (I) apply when the TOWN OF LIBERTY(Unit"), enters into a Contract (as defined in Section II hereof) or makes a Subaward (as defined in Section II hereof), and (2) meet or exceed the requirements of North Carolina law and 2 C.F.R. $ b. Application of Policy. This Policy shall apply when the Unit (1) enters into a Contract to be funded, in part or in whole, by Federal Financial Assistance to which 2 C.F.R. $ 200.318(c) applies, or (2) makes any Subaward to be funded by Federal Financial Assistance to which 20 C.F.R. $200.318(c) applies. Ifa federal statute, regulation, or the terms of a financial assistance agreement applicable to a particular form of Federal Financial Assistance conflicts with any provision of this Policy, such federal statute, regulation, or terms oft the financial assistance agreement shall govern.  200.318(c).  II. Definitions in2C.F.R. $ 200.1.  Capitalized terms used in this Policy shall have the meanings ascribed thereto in this Section II: Any capitalized term used in this Policy but not defined in this Section II shall have the meaning set forth  a. "COIPoint ofContac!" means the individual identified in Section III(a) ofthis Policy. b. "Contrac!" means, for the purpose of Federal Financial Assistance, a legal instrument by which the Unit purchases property or services needed to carry out a program or project  under a Federal award.  "Contractor" means an entity or individual that receives a Contract. d. "Covered Individual" means a Public Officer, employee, or agent of the Unit.  "Covered Nonprofit Organization" means a nonprofit corporation, organization, or association, incorporated or otherwise, that is organized or operating in the State ofl North Carolina primarily for religious, charitable, scientific, literary, public health and safety, or educational purposes, excluding any board, entity, or other organization created by the State ofl North Carolina or any political subdivision of the State (including the Unit). "Direct Benefil" means, with respect to a Public Officer or employee of the Unit, or the spouse of any such Public Officer or employee, (i) having a ten percent (10%) ownership interest or other interest ina a Contract or Subaward; (ii) deriving any income or commission directly from a Contract or Subaward; or (iii) acquiring property under a Contract or  Subaward.        g. "Federal Financial. Assistance" means Federal financial assistance that the Unit receives or administers in the form of grants, cooperative agreements, non-cash contributions or donations of property (including donated surplus property), direct appropriations, food commodities, and other Federal financial assistance (except that the term does not include  loans, loan guarantees, interest subsidies, or insurance). h. "Governing Board" means the Town Council oft the Unit.  "Immediate Family Member" means, with respect to any Covered Individual, (i) a spouse, and parents thereof, (ii) a child, and parent thereof, (iii) a parent, and spouse thereof, (iv)a sibling, and spouse thereof, (v) a grandparent and grandchild, and spouses thereof, (vi) domestic partners and parents thereof, including domestic partners of any individual in (ii) through (v) of this definition; and (vii) any individual related by blood or affinity whose close association with the Covered Individual ist the equivalent ofa family relationship. "Involved in Making o1 Administering" means (i) with respect to a Public Official or employee, (a) overseeing the performance ofa Contract or Subaward or having authority tor make decisions regardinga a Contract or Subaward or toi interpret a Contract or Subaward, or (b) participating in the development of specifications or terms or in the preparation or award ofa Contract or Subaward, (ii)only with respect toal Public Official, being amember ofa a board, commission, or other body of which the Public Official is a member, taking action on1 the Contract or Subaward, whether or not thel Public Official actually participates k. "Pass-Through Entity" means a non-Federal entity that provides a Subaward to a "Public Officer" means an individual who is elected or appointed to serve or represent the Unit (including, without limitation, any member of the Governing Board), other than an m. "Recipient" means an entity, usually but not limited to a non-Federal entity, that receives a Federal award directly from a Federal awarding agency. The term does not include n. "Related Party" means (i) an Immediate Family Member ofa Covered Individual, (ii)a partnero ofaCovered Individual, or (in) a current or potential employer (other than the Unit) ofa Covered Individual, ofa a partner ofa Covered Individual, or ofan Immediate Family 0. "Subaward" means an award provided by a Pass-Through Entity to carry out part ofa Federal award received by the Pass-Through Entity. It does not include payments to a contractor or payments to a contractor or payments to an individual that is al beneficiary of  int that action.  Subrecipient to carry out part ofal Federal program.  employee or independent contractor oft the Unit.  Subrecipients or individuals that are beneficiaries of the award.  Member ofa a Covered Individual.  aFederal program.  2        p. "Subcontrac!" means mean any agreement entered into by a Subcontractor to furnish supplies or services for the performance ofa Contract or a Subcontract. It includes, but is not limited to, purchase orders, and changes and modifications to purchase orders.  "Subcontractor" means an entity that receives a Subcontract.  "Subrecipien!" means an entity, usually but not limited to a non-Federal entity, that receives a subaward from a Pass-Through Entity to carry out part ofa a Federal award; but does noti include an individual thati is a beneficiary ofs such award. A subrecipient may also be a recipient ofother Federal awards directly from a Federal awarding agency.  "Unil" has the meaning specified in Section II hereof.  II. COI Point of Contact.  a. Appointment of COI Point of Contact. Scott Kidd, an [employee] of the Unit, shall have primary responsibility for managing the disclosure and resolution of potential or actual conflicts ofinterest arising under this Policy. In the event that Scott Kidd is unable to serve ins such capacity, Janie Phelps shall assume responsibility for managing the disclosure and resolution of conflicts of interest arising under this Policy. The individual with responsibility for managing the disclosure and resolution of potential or actual conflicts of interest under this Section III(a) shall be known as the "COI Point ofContac!". b. Distribution of] Policy. The COI Point of Contact shall ensure that each Covered Individual  receives a copy oft this Policy.  IV. Conflict of] Interest Standards in Contracts and Subawards  a. North Carolina Law. North Carolina law restricts the behavior of Public Officials and employees ofthel Unit involvedi inc contracting on behalfofthel Unit. The Unit shallconduct the selection, award, and administration of Contracts and Subawards in accordance with thej prohibitions imposed by thel North Carolina General Statutes andi restated in this Section  III.  . GS.S14-234Q)0D. Al Public Officer or employee oft the Unit Involved in Making or Administering a Contract or Subaward on behalf oft the Unit shall not derive a ii. G.S. $1 14-234(a)(3). No Public Officer or employee of the Unit may solicit or receive any gift, favor, reward, service, or promise of reward, including but not limited to a promise of future employment, in exchange for recommending, influencing, or attempting to influence the award ofa Contract or Subaward' by the ii. G.S.$14-234.3. Ifa member of the Governing Board of the Unit serves as a director, officer, or governing board memberofaCovered Nonprofit Organization, such member shall not (1) deliberate or vote on a Contract or Subaward between  Direct Benefit from such a Contract or Subaward.  Unit.  3        the Unit and the Covered Nonprofit Corporation, (2) attempt toi influence: any other person who deliberates or votes on a Contract or Subaward between the Unit and the Coveredl Nonprofit Corporation, or( (3)solicit or receive any gift, favor, reward, service, or promise of future employment, in exchange for recommending or attempting to influence the award of a Contract or Subaward to the Covered iv. G.S.81 14-234.1. A Public Officer or employee of the Unit shall not, in contemplation of official action by the Public Officer or employee, or in reliance on information which was made known to the public official or employee and which has not been made public, (I) acquire a pecuniary interest in any property, transaction, or enterprise or gain any pecuniary benefit which may be affected by such information or other information, or (2) intentionally aid another in violating  Nonprofit Organization.  the provisions oft this section.  b. Federal Standards.  i. - Prohibited Conflicts of Interest in Contracting. Without limiting any specific prohibition set forth in Section IV(a), a Covered Individual may not participate in the selection, award, or administration ofa Contract or Subaward if such Covered 1. Real Conflict of] Interest. A real conflict of interest shall exist when the Covered Individual or any Related Party has a financial or other interest inorat tangible personal benefit from a firm considered for a Contract or Subaward. Exhibit A attached hereto provides a non-exhaustive list of examples of (i) financial or other interests in a firm considered for a Contract or Subaward, and (i) tangible personal benefits from a firm 2. Apparent Conflict of Interest. An apparent conflict ofi interest shall exist where a real conflict ofi interest may not exist under Section IV(b)(iX(1), but where a reasonable person with knowledge oft the relevant facts would find that an existing situation or relationship creates the appearancet that a Covered Individual or any Related Party has a financial or other interest in or a tangible personal benefit from a firm considered for a Contract or  Individual has a real or apparent conflict ofinterest.  considered for a Contract or Subaward.  Subaward.  ii. Identification and Management of Conflicts ofl Interest. 1. Duty to Disclose and Disclosure Forms  a. Each Covered Individual expected to be or actually involved in the selection, award, or administration ofa Contract or Subaward has an ongoing duty to disclose to the COI Point of Contact potential real or apparent conflicts of interest arising under this  Policy.  4        b. Prior tot thel Unit'saward ofa Contract or Subaward, the COI Point of Contact shall advise Covered Individuals expected to be involved in the selection, award, or administration ofthe Contract If the value of a proposed Contract or Subaward exceeds $250,000, the COI Point of Contact shall collect a Conflict of Interest Disclosure Form contained in Exhibit C (for Contracts) and Exhibit E (for Subawards) from each Covered Individual and file such Conflict of Interest Disclosure Form in records of the  or Subaward ofs such duty.  Unit.  2. Identification Prior to Award of Contract or Subaward.  a. PriortotheUnifsavard. ofa Contract or Subaward, the COI Point of Contact shall complete the appropriate Compliance Checklist contained in Exhibit B (for Contracts) and Exhibit D (for Subawards): attachedl hereto and file such Compliance Checklist in  the records oft the Unit.  3. Management Prior to Award of Contract or Subaward  a. If, after completing the Compliance Checklist, the COI Point of Contact identifies a potential real or apparent conflict ofi interest relating to a proposed Contract or Subaward, the COI Point of Contact shall disclose such finding in writing to the Town Manager and to each member of the Governing Board. If the Governing Board desires to enter into the proposed Contract or Subaward despite the identification by the COI Point of Contact ofaj potential real or apparent conflict ofi interest, it may either:  accept the finding of the COI Point of Contact and direct the COI Point of Contact to obtain authorization to enter into the Contract or Subaward from (a) if Unit is a Recipient of Federal Financial Assistance, the Federal awarding agency with appropriate mitigation measures, or (b) if Unit is a Subrecipient of Federal Financial Assistance, from the Pass-Through Entity that provideda ii. reject the finding of the COI Point of Contact and enter into the Contract or Subaward. In rejecting any finding ofthe COI Point ofContact, the Governing Board shall in writing document a justification supporting such  Subaward to Unit; or  rejection. 5        b. Ift the COI Point of Contact does not identify a potential real or apparent conflict of interest relating to a proposed Contract or Subaward, the Unit may enter into the Contract or Subaward in accordance with the Unit'spurchasing or subaward policy.  4. Identification After Award of Contract or Subaward.  a. Ift the COI Point of Contact discovers that a real or apparent conflict of interest has arisen after the Unit has entered into a Contract or Subaward, the COI Point of Contact shall, as soon as possible, disclose such finding to the Town Manager and to each member of the Governing Board. Upon discovery ofs such a real or apparent conflict of interest, the Unit shall cease all payments under the relevant Contract or Subaward until the conflict of  interest has been resolved.  5. Management After Award of Contract or Subaward.  a. Following the receipt of such disclosure of a potential real or apparent conflict ofi interest pursuant to Section IV(b)()(4), the Governing Board may reject the finding of the COI Point of Contact by documenting in writing aj justification supporting such rejection. Ifthe Governing Board fails to reject the finding of the COI Point of Contact within 15 days of receipt, the COI Point of  Contact shall:  . if Unit is a Recipient of Federal Financial Assistance funding the Contract or Subaward, disclose the conflict to the Federal awarding agency providing such Federal Financial Assistance in accordance with 2 C.F.R. $ 200.112 and/or applicable regulations of the agency, or ii. ifUnit is a Subrecipient of Federal Financial Assistance, disclose the conflict to thel Pass-Through Entity providing aSubawardtol Unit in accordance with2C.FR.9200.112 and applicable regulations of the Federal awarding  agency and the Pass-Through Entity.  V. Oversight of Subrecipient's Conflict of] Interest Standards  a. Subrecipients ofUnit Must Adopt Conflict ofI Interest Policy. Priortot the Unit's execution of any Subaward for which the Unit serves as a Pass-Through Entity, the COI Point of Contact shall ensure that the proposed Subrecipient of Federal Financial Assistance has adopted a conflict of interest policy that satisfies the requirements of 2 C.F.R. $ BJIXDICFAIBNONOA and all other applicable federal regulations.  6        b. Obligation to Disclose Subrecipient Conflicts of Interest. The COI Point of Contact shall ensure that the legal agreement under which the Unit makes a Subaward to a Subrecipient shall require such Subrecipient to disclose to the COI Point of Contact any potential real or apparent conflicts of interest that the Subrecipient identifies. Upon receipt of such disclosure, the COI Point of Contact shall disclose such information to the Federal awarding agency that funded the Subaward in accordance with that agency's disclosure  policy.  VI. Gift Standards  a. Federal Standard. Subject to the exceptions set forth in Section VI(b), a Covered Individual may nots solicit or accept gratuities, favors, or anything ofr monetary value from a Contractor b. Exception. Notwithstanding. Section VI(a), a Covered! Individual may accept an unsolicited gift from a Contractor or Subcontractor of one or more types specified below ifthe gift has an aggregate market value of $20 or less per source per occasion, provided that the aggregate market value of all gifts received by the Covered Individual pursuant to this  ora Subcontractor.  Section VI(b) does not exceed $50 in a calendar year: - honorariums for participating in meetings; ii. advertising items or souvenirs of nominal value; or  iii. meals furnished at banquets.  Internal Reporting. A Covered Individual shall report any gift accepted under Section VI(b) to the COI Point ofContact. Ifrequired by regulation ofal Federal awarding agency, the COI Point of Contact shall report such gifts to thel Federal awarding agency oral Pass-  Through Entity for which the Unit is a Subrecipient.  VII. Violations of] Policy  a. Disciplinary Actions for Covered Individuals. Any Covered Individual that fails to disclose areal, apparent, or potential real ora apparent conflict ofi interest arising withi respect tot the Covered Individual or Related Party may bes subject to disciplinary action, including, but not limited to, an employee'stemination or suspension ofe employment with or without pay, the consideration or adoption of a resolution of censure ofa a Public Official by the b. Disciplinary Actions for Contractors and Subcontractors. The Unit shall terminate any Contract with a Contractor or Subcontractor that violates any provision oft this Policy. Protections for Whistleblowers. In accordance with 41 U.S.C. $ 4712, the Unit shall not discharge, demote, or otherwise discriminate against an employee in reprisal for disclosing to any of the list of persons or entities provided below, information that the employee reasonably believes is evidence of gross mismanagement ofa federal contract or grant, a  Governing Board, or termination of an agent's contract with the Unit.  7        gross waste of federal funds, an abuse of authority relating to a federal contract or grant, a substantial and specific danger to public health or safety, or a violation of law, rule, or regulation related to a federal contract (including the competition for or negotiation ofa contract) or grant: ()ar member ofCongressorar representative ofac committee ofCongress; (ii) an Inspector General; (iii) the Government Accountability Office; (iv) a Treasury or other federal agency employee responsible for grant oversight or management; (v) an authorized official of the Department of. Justice or other law enforcement agency; (vi) a court or grand jury; of (vii) a management official or other employee of the Unit, a Contractor, or Subcontractor who has the rsponsblyloinvestgae, discover, oraddress  misconduct.  **  Adopted thist the 26th day of_ _August 2024  dinple Lib  m  galin Attest  Mayor  8        EXHIBIT. A Examples  Potential Examples ofa "Financial or Other Interes!" in a Firm or Organization Considered for a Contract or Subaward  Potential Examples ofa' "Tangible Personal Benefit" From a Firm or Organization Considered for a Contract or Subaward firm with a relationship with the firm considered A position as a director or officer of the firm or  Direct or indirect equity interest in a firm or Opportunity tol be employed by the firm considered organization considered for a Contract or fora contract, an affiliate of that firm, or any other  Subaward, which may include: Stock in a corporation. company. partnership.  fora Contract.  Membership interest in a limited liability  Partnership interest in a general or limited organization, eveni ifuncompensated.  Any right to control the firm or organization's affairs. For example, a controlling equity interest in an entity that controls or has the right to control a firm considered for a contract. Option to purchase any equity interest ina a firm or organization.  Holder of any debt owed by a firm considered for Areferral of business from a firm considered fora a  a Contract or Subaward, which may include: Secured debt (e.g., debt backed by an asset of the firm (like a firm's building or Unsecured debt (e.g., a promissory note evidencing a promise to repay a loan). Holder of a judgment against the  Contract or Subaward.  equipment))  firm.  Supplier or contractor to a firm or organization Political or social influence (e.g., a promise of  considered for a Contract or Subaward.  appointment to an local office or position on a  public board or private board).  A-1                6  2                EXHIBITC  CONTRACT CONFLICT OF INTEREST DISCLOSURE FORM FOR OFFICIALS, EMPLOYEES, AND AGENTS  a Conflict of Interest Policy ("Policy") that governs the defined Section of the Policy). The Policy  The[ L designates  J("Unit") has adopted as the "COI Point of Contact."  Unit's expenditure of Federal Financial Assistance (as  in  II  The COI Point ofContact has identified you as an official, employee, or agent oft the Unit that may be involved in the selection, award, or administration of the following contract: Financial Assistance, the COI Point ofContact has requested that you identify any potential real or apparent conflicts of interest in the Firm considered for the award ofa Contract. Using the Exhibit A tot the Policy  (the "Contract"). Tos safeguard the Unit's expenditure ofl Federal  asa guide, please answer the following questions:  1. Doyou have a financial or other interest in ai firm considered for this Contract?  Yes  No  Unsure:  If the answer is Yes or Unsure, please explain:  2. Will you receive any tangible personal benefit from a firm considered for this Contract?  Yes  No  Unsure:  Ift the answer is Yes or Unsure, please explain:  3. For purposes of Question 3(a) and 3(b), your Immediate Family Members" include: (): your spouse and their parents, (ii): your child, (ii) your parent and any spouse of your parent, (iv)your sibling and by blood or affinity whose close association with you is the equivalent ofa family relationship.  of sibling, (v) your grandparents or grandchildren, and the spouses of each, (vi) any  any spouse your  definition; and any individual related  domestic partner ofa any individual in (i) through (v) ofthis  (vii)  a. Do you have an Immediate Family Member with a financial or other interest in a  firm considered for this Contract?  Yes  No  Unsure:  Ifthe answer is Yes or Unsure, please explain:  C-1        b. Do you have an Immediate Family Member that will receive a tangible personal  benefit from a firm considered for this Contract?  Yes  No  Unsure:  4. Do you have any other partner with a financial or other interest in a firm considered for this  Contract?  Yes  No  Unsure:  Ifthe answer is Yes or Unsure, please explain:  5. Will any other partner of yours receive any tangible personal benefit from a firm considered for  this Contract?  Yes  No  Unsure:  Ifthe answer is Yes or Unsure, please explain:  6. Does your current or potential employer (other than the Unit) have a financial or other interest in a firm considered for this Contract or will such current or potential employer receive a tangible  personal benefit from this Contract?  Yes  No  Unsure:  Ift the answer is Yes or Unsure, please explain:  7. Benefits to] Employers  a. Does a current or potential employer (other than the Unit) of any ofs your Immediate Family Members have ai financial or other interest in ai firm considered for this Contract?  Yes  No  Unsure:  Ifthe answer is Yes or Unsure, please explain:  b. Will a current or potential employer (other than the Unit) ofany ofyour Immediate Family  Members receive a tangible personal benefit from this Contract?  Yes  No  Unsure:  Ift the answer is Yes or Unsure, please explain:  C-2        Does a current or potential employer (other than the Unit) of any partner of yours have a  financial or other interest in a firm considered for this Contract?  Yes  No  Unsure:  If the answer is Yes or Unsure, please explain:  d. Will a current or potential employer (other than the Unit) of any partner of yours receive a  tangible personal benefit from this Contract?  Yes  No  Unsure:  Ifthe answer is Yes or Unsure, please explain:  8. Does any existing situation or relationship create the appearance that youl have ai financial or other interest in a firm considered for this Contract or will receive ai tangible personal benefit from at firm  considered for this Contract?  Yes  No  Unsure:  Ift the answer is Yes or Unsure, please explain:  9. Does any existing situation or relationship create the appearance that any Immediate Family Member of yours has a financial or other interest in a firm considered for this Contract or will  receive a tangible personal benefit from a firm considered for this Contract?  Yes  No  Unsure:  Ifthe answer is Yes or Unsure, please explain:  10. Does any existing situation or relationship create the appearance that your current or potential employer (other than the Unit) has a financial or otheri interest inaf firm considered for this Contract or will receive at tangible personal benefit from a firm considered for this Contract?  Yes  No  Unsure:  Ifthe answer is Yes or Unsure, please explain:  11. Does any existing situation or relationship create the appearance that any current or potential employer (other than the Unit) of any of your Immediate Family Members has a financial or other  C-3        interest in ai firm considered for this Contract or will receive ai tangible personal benefit from ai firm  considered for this Contract?  Yes  No  Unsure:  Ifthe answer is Yes or Unsure, please explain:  12. Does any existing situation or relationship create the appearance that any current or potential employer (other than the Unit) of any other partner has a financial or other interest in a firm considered for this Contract or will receive a tangible personal benefit from ai firm considered for  this Contract? Yes  No  Unsure:  Ifthe answer is Yes or Unsure, please explain:  Sign Name: Print Name: Name of Employer Job Title: Date of Completion:  C-4                2        - à        EXHIBITE  SUBAWARD CONFLICT OF INTEREST DISCLOSURE FORM FOR OFFICIALS, EMPLOYEES, AND. AGENTS  TheL designates  J("Unit") has adopted a Conflict of Interest Policy ("Policy") that governs the  Unit's expenditure of Federal Financial Assistance (as defined in Section II of the Policy). The Policy The COI Point ofContact has identified you as an official, employee, or agent oft the Unit that may be involved in the selection, award, or administration of the following subaward: Federal Financial Assistance, the COI Point of Contact has requested that you identify any potential real or apparent conflicts ofinterest in the Firm considered for the award ofa Subaward. Using the Exhibit A to  as the COI Point of Contact.  (the "Subaward"). To safeguard the Unit's expenditure of  thel Policy as a guide, please answer the following questions:  1. Doy you have a financial or other interest in a firm considered fort this Subaward?  Yes  No  Unsure:  Ifthe answer is Yes or Unsure, please explain:  2. Will you receive any tangible personal benefit from a firm considered for this Subaward?  Yes  No  Unsure:  Ift the answer is Yes or Unsure, please explain:  3. For purposes of Question 3(a) and 3(b), your Immediate Family Members" include: (i): your spouse and their parents, (ii): your child, (ii) your parent and any spouse of your parent, (iv)your sibling and any spouse of your sibling, (v): your grandparents or grandchildren, and the spouses of each, (vi) any domestic partner of any individual in (ii) through (v) ofthis definition; and (vii) anyi individual related by blood or affinity whose close association with youi is the equivalent ofai family relationship.  a. Do you have an Immediate Family Member with a financial or other interest in a  firm considered for this Subaward?  Yes  No  Unsure:  Ifthe answer is Yes or Unsure, please explain:  E-8        b. Do you have an Immediate Family Member that will receive a tangible personal  benefit from a firm considered for this Subaward?  Yes  No  Unsure:  4. Do you have any other partner with a financial or other interest in a firm considered for this  Subaward?  Yes  No  Unsure:  Ifthe answer is Yes or Unsure, please explain:  5. Will any other partner of yours receive any tangible personal benefit from a firm considered for  this Subaward?  Yes  No  Unsure:  Ift the answer is Yes or Unsure, please explain:  6. Does your current or potential employer (other than the Unit) have ai financial or other interest ina a firm considered for this Subaward or will such current or potential employer receive a tangible  personal benefit from this Subaward?  Yes  No  Unsure:  Ifthe answer is Yes or Unsure, please explain:  7. Benefits to Employers  a. Doesacurrent or potential employer (other than the Unit) ofany ofyour Immediate Family Members have a financial or other interest in a firm considered for this Subaward?  Yes  No  Unsure:  Ifthe answer is Yes or Unsure, please explain:  b. Will a current or potential employer (other than the Unit) ofany ofyour Immediate Family  Members receive at tangible personal benefit from this Subaward?  Yes  No  Unsure:  Ifthe answer is Yes or Unsure, please explain:  E-9        havea  C. Does a current or potential employer (other than the Unit) of any partner of yours financial or other interest in ai firm considered for this Subaward?  Yes  No  Unsure:  Ifthe answer is Yes or Unsure, please explain:  d. Will a current or potential employer (other than the Unit) of any partner of yours receivea  tangible personal benefit from this Subaward?  Yes  No.  Unsure:  Ifthe answer is Yes or Unsure, please explain:  8. Does any existing situation or relationship create the appearance that you have a financial or other interest in a firm considered for this Subaward or will receive a tangible personal benefit from a  firm considered for this Subaward?  Yes  No  Unsure:  Ifthe answer is Yes or Unsure, please explain:  9. Does any existing situation or relationship create the appearance that any Immediate Family Member of yours has a financial or other interest in a firm considered for this Subaward or will  receive ai tangible personal benefit from a firm considered for this Subaward?  Yes  No.  Unsure:  Ift the answer is Yes or Unsure, please explain:  10. Does any existing situation or relationship create the appearance that your current or potential employer (other than the Unit) has a financial or other interest in a firm considered for this Subaward or will receive a tangible personal benefit from a firm considered for this Subaward?  Yes  No  Unsure:  Ift the answer is Yes or Unsure, please explain:  11. Does any existing situation or relationship create the appearance that any current or potential employer (other than the Unit) of any of your Immediate Family Members has a financial or other  E-10        interest in a firm considered for this Subaward or will receive a tangible personal benefit from a  firm considered for this Subaward?  Yes  No  Unsure:  Ift the answer is Yes or Unsure, please explain:  12. Does any existing situation or relationship create the appearance that any current or potential employer (other than the Unit) of any other partner has a financial or other interest in a firm considered for this Subaward or will receive a tangible personal benefit from a firm considered for  this Subaward? Yes  No  Unsure:  Ifthe answer is Yes or Unsure, please explain:  Sign Name: Print Name: Name of Employer Job' Title: Date ofCompletion:  E-11        Uniform Guidance ProcurementPolcy For North Carolina Local Governments  Purpose  The purpose of this policy is to establish guidelines that meet or exceed the procurement requirements for purchases of goods (apparatus, supplies, materials, and equipment), services, and construction or repair projects when federal funds are being used in whole or in part to pay for the cost of the contract. To the extent that other sections of procurement policies and procedures adopted by" Town of Liberty are more restrictive that those contained  int this policy, local policies and procedures shall be followed.  II. Policy  A. Application of Policy. This policy applies to contracts for purchases, services, and construction or repair work funded with federal financial assistance (direct or reimbursed). The requirements oft this Policy also apply to any subrecipient oft the funds. All federally funded projects, loans, grants, and sub-grants, whether funded in part or wholly, are subject to the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for federal awards (Uniform Guidance) codified at 20 C.F.R. Part 200 unless otherwise directed in writing by the federal agency or state pass-through agency B. Compliance with Federal Law. All procurement activities involving the expenditure of federalfunds must be conducted in compliance with the Procurement Standards codified n2CHR.S200317Hough S 200-326 unless otherwise directed in writing by the federal agency or state pass-through agency that awarded the funds. The Town of Liberty will follow all applicable local, state, and federal procurement requirements when expending federal funds. Should The Town of Liberty have more stringent requirements, the most restrictive requirement shall apply SO long as it is consistent with state and federal law. ( Contract Award. All contracts shalll be awarded onlyt to the lowest responsive responsible bidder possessing the ability to perform successfully under the terms and conditions of D. No Evasion. No contract may be divided to bring the cost under bid thresholds or to E. Contract Requirements. All contracts paid for in whole or in part with federal funds shall be in writing. The written contract must include or incorporate by reference the provisions required under 2 C.F.R S 200.326 and as provided for under 2 C.F.R. Part 200, F. Contractors' Conflict of Interest. Designers, suppliers, and contractors that assist in the development or drafting of specifications, requirements, statements of work, invitation  that awarded the funds.  the contract.  evade any requirements under this Policy or state and federal law.  Appendix II.        for bids or requests for proposals shall be excluded from competing for such G. Approval and Modification. The administrative procedures contained in this Policy are administrative and may be changed as necessary at the staff level to comply with state  requirements.  and federal law.  III. General Procurement Standards and Procedures:  Either the Purchasing Department or the Requesting Department shall procure all contracts A. Necessity. Purchases must be necessary to perform the scope of work and must avoid acquisition of unnecessary or duplicative items. The Purchasing Department and/or the Requesting Department should check with the federal surplus property agency prior to buying new items when feasible and less expensive. Strategic sourcing should be  ina accordance with the requirements of this Section oft the Policy.  who have similar needs to  considered with other departments and/or agencies consolidate procurements and services to obtain better pricing.  B. Clear Specifications. All: solicitations must incorporate a clear and accurate description of the technical requirements for the materials, products, or services to be procured, and shall include all other requirements which bidders must fulfill and all other factors to be used in evaluating bids or proposals. Technical requirements must not contain features -I Notice of Federal Funding. All bid solicitations must acknowledge the use of federal funding for the contract. In addition, all prospective bidders or offerors must acknowledge that funding is contingent upon compliance with all terms and conditions of the funding D. Compliance by Contractors. All solicitations shall inform prospective contractors that they must comply with all applicable federal laws, regulations, executive orders, and E. - Fixed Price. Solicitations must state that bidders shall submit bids on a fixed price basis and that the contract shall be awarded on this basis unless otherwise provided for in this Policy. Cost plus percentage of cost contracts are prohibited. Time and materials contracts are prohibited in most circumstances. Time and materials contracts will not be used unless no other form of contract is suitable and the contract includes a "Not to Exceed" amount. A time and materials contract shall not be awarded without express written permission of the federal agency or state pass-through agency that awarded the  that restrict competition.  award.  terms and conditions of the funding award.  funds.  or functional specifications are  F. - Use of Brand Names. When possible, performance  preferred to allow for more competition leaving the determination of how to reach the required result to the contractor. Brand names may be used only when it is impractical or        uneconomical to write a clear and accurate description of the requirement(s). When a brand name is listed, it is used as reference only and "or equal" must be included in the G. Lease versus Purchase. Under certain circumstances, it may be necessary to perform an analysis of lease versus purchase alternatives to determine the most economical H. Dividing Contract for M/WBE Participation. lfeconomically feasible, procurements may be divided into smaller components' to allow maximum participation ofs small and minority businesses and women business enterprises. The procurement cannot be divided tol bring the cost under bid thresholds or to evade any requirements under this Policy. Documentation. Documentation must be maintained by the Purchasing Department and/or the Requesting Department detailing the history of all procurements. The documentation should include the procurement method used, contract type, basis for contractor selection, price, sources solicited, publicn notices, cost analysis, bid documents, addenda, amendments, contractor'sresponsiveness, notice of award, copies ofr notices to unsuccessful bidders or offerors, record of protests or disputes, bond documents, notice top proceed, purchase order, and contract. All documentation relating toi the award of any J. Cost Estimate. For all procurements costing $250,000 or more, the Purchasing Department and/or Requesting Department shall develop an estimate of the cost of the procurement prior to soliciting bids. Cost estimates may be developed by reviewing prior contract costs, online review of similar products or services, or other means by which a good faith cost estimate may be obtained. Cost estimates for construction and repair K. Contract Requirements. The Requesting Department must prepare a written contract Debarment. No contract shall be awarded to a contractor included on the federally M. Contractor Oversight. The Requesting Department receiving the federal funding must maintain oversight of the contract to ensure that contractor is performing in accordance N. Open Competition. Solicitations shall be prepared in a way to be fair and provide open competition. The procurement process shall not restrict competition by imposing unreasonable requirements on bidders, including but not limited to unnecessary supplier experience, excessive or unnecessary bonding, specifying al brand name without allowing for "or equal" products, or other unnecessary requirements that have the effect of O. Geographic Preference. No contract shall be awarded on the basis of a geographic  description.  approach.  contract must be made available to the granting agency upon request.  contracts may be developed by the project designer.  incorporating the provisions referenced in Section I.C oft this Policy.  debarred bidder's list.  with the contract terms, conditions, and specifications.  restricting competition. preference.        IV. Specific Procurement Procedures  Either the Purchasing Department or the Requesting Department shall solicit bids in accordance with the requirements under this Section of the Policy based on the type and A. Service Contracts (except for A/E professional services) and Purchase Contracts costing less than $10,000 shall be procured using the Uniform Guidance "micro-purchase" 1. The contract may be awarded without soliciting pricing or bids if the price of the 2. To the extent practicable, purchases must be distributed among qualified  cost of the contract.  procedure (2C.F.R. S 200.320(a)) as follows:  goods or services is considered to be fair and reasonable.  suppliers.  B. Service Contracts (except for A/E professional services) and Purchase Contracts costing $10,000 up to $90,000 shall be procured using the Uniform Guidance "small purchase" 1. Obtain price or rate quotes from an "adequate number" of qualified sources (a federal grantor agency might issue guidance interpreting "adequate number," sO the Requesting Department should review the terms and conditions of the grant award documents to confirm whether specific guidance has been issued). 2. Take affirmative steps to solicit price quotes from M/WBE vendors and suppliers 3. Cost or price analysis is not required prior to soliciting bids. 4. Award the contract on at fixed-price basis (a not-to-exceed basis is permissible for service contracts where obtaining ai fixed price is not feasible). 5. Award the contract to the lowest responsive, responsible bidder.  procedure (2C.F.R.S $200.320(b) as follows:  asr required under 2 C.F.R. S 200.321.  C. Service Contracts (except for A/E professional services) and Purchase Contracts costing $90,000 and above shall be procured using a combination of the most restrictive requirements of the Uniform Guidance "sealed bid" procedure 2CFR.5200.320C): )and 2. Complete specifications or purchase description must be made available to all 3. The bid must be formally advertised in a newspaper of general circulation for at least seven full days between the date of the advertisement and the date of the public bid opening. Electronic-only advertising must be authorized by the governing board. The advertisement must state the date, time, and location of the public bid opening, indicate where specifications may be obtained, and reserve to the governing board the right to reject any or all bids only for "sound 4. Take affirmative steps to solicit price quotes from M/WBE vendors and suppliers  state formal bidding procedures (G.S. 143-129) as follows: 1. Cost or price analysis is required prior to soliciting bids.  bidders.  documented reasons."  as required under 2 C.F.R. S 200.321.        5. Open bids at the public bid opening on the date, time, and at the location noticed int the public advertisement. All bids must be submitted sealed. A minimum of2 6. Award the contract to the lowest responsive, responsible bidder on a fixed-price basis. Governing board approval is required for purchase contracts unless the governing board has delegated award authority to an individual official or employee. Any and all bids may be rejected only for "sound documented  bids must be received in order to open all bids.  reasons."  Note Regarding. Service Contracts Costing $90,000upt to $250,000: Local government. service contracts are not subject to state competitive bidding requirements. Ifa local government does not require competitive proposals (RFPs). for service contracts under its local policy, it may choose to follow the UG. small purchase procedure for service contracts costing $10,000 up to: $250,000, and then follow the UG: sealed bid or competitive proposal methodj forservice contracts costing $250,000 or more. If the local policy regarding service contracts is more D. Service Contracts (except for A/E professional services). costing $250,000 and above may be procured using the Uniform Guidance "competitive proposal" procedure (2 C.F.R. S 200.320(d)) when the "sealed bid" procedure is not appropriate for the particular type of 1. Al Request for Proposals (RFP) must be publicly advertised. Formal advertisement in a newspaper is not required so long as the method of advertisement will solicit 2. Take affirmative steps to solicit price quotes from M/WBE vendors and suppliers 3. Identify evaluation criteria and relative importance of each criteria (criteria 4. Consider all responses to the publicized RFP to the maximum extent practical. 5. Must havea a written method for conductingtechnical evaluationsofproposais and 6. Award the contract to the responsible firm with most advantageous proposal taking into account price and other factors identified in the RFP. Governing board  restrictive, the local policy should be followed.  service being sought. The procedures are as follows:  proposals from an "adequate number" of qualified firms.  as provided under 2 C.F.R. S 200.321.  weight) ini the RFP.  selecting the winning firm. approval is not required.  7. Award the contract on a fixed-price or cost-reimbursement basis.  E. Construction and repair contracts costing less than $10,000 shall be procured using the Uniform Guidance "micro-purchase" procedure (2C.F.R. S 200.320(a)) as follows: 1. The contract may be awarded without soliciting pricing or bids if the price of the 2. To the extent practicable, contracts must be distributed among qualified  goods or services is considered to be fair and reasonable.  suppliers.  F. Construction and repair contracts costing $10,000 up to $250,000 shall be procured using the Uniform Guidance "small purchase" procedure (2 C.F.R. S 200.320(b)) as  follows:        1. Obtain price or rate quotes from an "adequate number" of qualified sources (a federal grantor agency might issue guidance interpreting "adequate number," SO the requesting department should review the terms and conditions of the grant award documents to confirm whether specific guidance has been issued). 2. Take affirmative steps to solicit price quotes from M/WBE vendors and suppliers 3. Cost or price analysis is not required prior to soliciting bids, although price 5. Award the contract to the lowest responsive, responsible bidder. Governing  asr required under 2 C.F.R. $ 200.321.  estimates may be provided by the project designer. 4. Award the contract on a fixed-price or not-to-exceed basis.  board approval is not required.  G. Construction and repair contracts costing $250,000 up to $500,000 shall be procured using the Uniform Guidance "sealed bid" procedure (2C.F.R. S 200.320(c)) as follows: 1. Cost or price analysis is required prior to soliciting bids (this cost estimate may be 3. Publically advertise the bid solicitation for a period of time sufficient to give bidders notice of opportunity to submit bids (formal advertisement in a newspaper is not required sO long as other means of advertising will provide sufficient notice of the opportunity to bid). The advertisement must state the date, time, and location of the public bid opening, and indicate where 4. Take affirmative steps to solicit price quotes from M/WBE vendors and suppliers 5. Open the bids at the public bid opening on the date, time, and at the location noticed in the public advertisement. All bids must be submitted sealed. A 6. A5%b bid bond is required ofa alll bidders. Performance and payment bonds sof100% 8. Award the contract tot thel lowest responsive, responsible bidder. Governing board approval is not required. Any and all bids may be rejected only for "sound  provided by the project designer).  2. Complete specifications must be made available to all bidders.  specifications may be obtained. as provided under 2 C.F.R. S 200.321.  minimum of 2 bids must be received in order to open all bids. oft the contract price is required of the winning bidder. 7. Award the contract on ai firm fixed-price basis.  documented reasons."  H. Construction and repair contracts costing $500,000 and above shall be procured usinga combination of the most restrictive requirements of the Uniform Guidance "sealed bid" procedure (2 C.F.R. S 200.320(c) and state formal bidding procedures (G.S. 143-129) as 1. Cost or price analysis is required prior to soliciting bids (this cost estimate should 3. Formally advertise the bid in a newspaper of general circulation for at least seven full days between the date of the advertisement and the date of the public bid opening. Electronic-only: yadvertising must be authorized by the governing board. The advertisement must state the date, time, and location of the public bid opening, indicate where specifications may be obtained, and reserve to the  follows:  be provided by the project designer).  2. Complete specifications must be made available to all bidders.        governing board the right to reject any or all bids only for "sound documented 4. Take affirmative steps to solicit price quotes from M/WBE vendors and suppliers 5. Open the bids at the public bid opening on the date, time, and at the location noticed in the public advertisement. All bids must be submitted sealed and in paper form. A minimum of 3 bids must be received in order to open all bids. 6. A5% bid bond is required of all bidders (a bid that does not include a bid bond cannot be counted toward the 3-bid minimum requirement). Performance and payment bonds of 100% of the contract price is required oft the winning bidder. 8. Award the contract to the lowest responsive, responsible bidder. Governing board approval is required and cannot be delegated. The governing board may  reasons."  as provided under 2C.F.R. S 200.321.  7. Award the contract on a firm fixed-price basis.  reject and all bids only for "sound documented reasons."  Construction or repair contracts involving a building costing $300,000 and above must 1. Formal HUB (historically underutilized business) participation required under G.S. 143-128.2, including local government outreach efforts and bidder good faith 2. Separate specifications shall be drawn for the HVAC, electrical, plumbing, and general construction work as required under G.S. 143-128(a). 3. The project shall be bid using a statutorily authorized bidding method (separate- prime, single-prime, or dual bidding) as required under G.S. 143-129(a1). Contracts for Architectural and Engineering Services costing under $250,000 shall be procured using the state Mini-Brooks Act" requirements (G.S. 143-64.31) as follows: 1. Issue a Request for Qualifications (RFQ) to solicit qualifications from qualified firms (formal advertisement in a newspaper is not required). Price (other than 2. Take affirmative steps to solicit price quotes from M/WBE vendors and suppliers 3. Evaluate the qualifications of respondents based on the evaluation criteria developed by the Purchasing Department and/or Requesting Department. 4. Rank respondents based on qualifications and select the best qualified firm. Price cannot be at factor in the evaluation. Preference may be given to in-state (but not 5. Negotiate fair and reasonable compensation with the best qualified firm. If negotiations are not successfully, repeat negotiations with the second-best 6. Award the contract to best qualified firm with whom fair and reasonable compensation has been successfully negotiated. Governing board approval is not  comply with the following additional requirements under state law:  efforts, shall apply.  .  unit cost) shall not be solicited ini the RFQ. as provided for under2C.F.R. $ 200.321.  local) firms. qualified firm. required.  K. Contracts for Architectural and Engineering Services costing $250,000 or more shall be procured using the Uniform Guidance "competitive proposal" procedure (2 C.F.R. S  200.320(d)(5) as follows:        1. Publically advertise al Request for Qualifications (RFQ) to solicit qualifications from qualified firms (formal advertisement in ar newspaperi is not required). Price (other 2. Take affirmative steps to solicit price quotes from M/WBE vendors and suppliers 3. Identify the evaluation criteria and relative importance of each criteria (the 4. Proposals must be solicited from an "adequate number of qualified sources" (an individual federal grantor agency may issue guidance interpreting "adequate 5. Must have a written method for conductingtechnical evaluations of proposals and 6. Consider all responses to the publicized RFQto the maximum extent practical. 7. Evaluate qualifications of respondents to rank respondents and select the most qualified firm. Preference may be given to in-state (but not local) firms provided that granting the preference leaves an appropriate number of qualified firms to compete for the contract given the nature and size of the project. 8. Price cannot be a factor in the initial selection of the most qualified firm. 9. Once the most qualified firm is selected, negotiate fair and reasonable compensation. If negotiations are not successfully, repeat negotiations with the 10. Award the contract to best qualified firm with whom fair and reasonable compensation has been successfully negotiated. Governing board approval is not  than unit cost) shall not be solicited in the RFQ. as provided under 2 C.F.R. S 200.321. criteria weight) in the RFQ.  number").  selecting the best qualified firm.  second-best qualified firm.  required.  V. Exceptions  Non-competitive contracts are allowed only under the following conditions and with the written approval ofthet federal agency ors state pass-through agency that awarded thet federal A. Sole Source. A contract may be awarded without competitive bidding when the item is available from only one source. The Purchasing Department and/or Requesting Department shall document the justification for and lack of available competition for the item. Asole source contract must be approved by the governing board. B. Public Exigency. A contract may be awarded without competitive bidding when there is apublic exigency. A public exigency exists when there is an imminent or actual threat to public health, safety, and welfare, and the need for the item will not permit the delay C. Inadequate Competition. A contract may be awarded without competitive bidding when competition is determined to bei inadequate after attempts to solicit bids from a number of sources as required underi this Policy does not result in a qualified winning bidder.  funds:  resulting from a competitive bidding.        D. Federal Contract. A contract may be awarded without competitive bidding when the purchase is made from a federal contract available on the U.S. General Services E. Awarding Agency Approval. A contract may be awarded without competitive bidding with the express written authorization of the federal agency or state pass-through agency that awarded the federal funds sO long as awarding the contract without competition is  Administration schedules of contracts.  consistent with state law.  Adopted Monday August 26, 2024 libnuclpi  poin pf  Mayor  Aflest        Record Retention Policy: Documents Created or Maintained Pursuant to the  ARP/CSLFRF Award  Retention of Records: The Coronavirus Local Fiscal Recovery Funds ("CSLFRF") Award Terms and Conditions and the Compliance and Reporting Guidance set forth the U.S. Department ofTreasury's ("Treasury") record retention requirements for the ARP/CSLFRF Itist the policy ofThe' Town ofLiberty to follow Treasury' s record retention requirements asi it expends CSLFRF pursuant to the. APR/CSLFRF award. Accordingly, The Town ofLiberty  award.  agrees tot the following:  Retain all financial and programmatic records related to the use and expenditure of CSLFRF pursuant to the ARP/CSLFRF award for aj period ofi five (5)years after all CLFRF funds have been expended or returned to Treasury, whichever is later. Retain records for real property and equipment acquired with CSLFRF for five years Ensure that the financial and programmatic records retained sufficiently evidence compliance with section 603(c) oft the Social Security Act "ARPA,"Treasury's regulations implementing that section, and guidance issued by Treasury regarding the Allow the Treasury Office ofI Inspector General and the Government Accountability Office, or their authorized representatives, the right of timely and unrestricted access to Ifany litigation, claim, or audit is started before the expiration oft the 5-year period, the records will be retained until all litigation, claims, or audit findings involving the records  after final disposition.  foregoing.  any records for the purpose of audits or other investigations.  have been resolved.  Covered Records: For purposes oft this policy, records are information, regardless of physical form or characteristics, that are created, received, or retained that evidence The' Town of Liberty'se expenditure OfCSLFRF funds on eligible projects, programs, or activities pursuant to Records that shall be retained pursuant to this policy include, but are not limited to, the  the ARP/CSLFRF award.  following:        Financial statements and accounting records evidencing expenditures of CSLFRF for Documentation of rational to support a particular expenditure of CSLFRF (e.g., Documentation of administrative costs charged to the ARP/CSLFRF award; Procurement documents evidencing the significant history ofaj procurement, including, at an minimum, the rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for contract cost or price; Subaward agreements and documentation of subrecipient monitoring; standards set forth in 2 C.F.R. 88 200.310-316 and 200.329; CSLFRF, including time and effort reports; and  eligible projects, programs, or activities.  expenditure constitutes a general government service);  Documentation evidencing compliance with the Uniform Guidance property management Personnel and payroll records for full-time and part-time employees compensated with  Indirect cost rate proposals  Storage: The Town ofLiberty's1 records must be stored in a safe, secure, and accessible manner. Wherever practicable, such records should be collected, transmitted, and stored in open Departmental Responsibilities: Any department or unit ofThe Town ofLiberty, and its employees, who are responsible for creating or maintaining the covered documents in this policy shall comply with the terms oft this policy. Failure to do sO may subject The Town ofLiberty too civil and/or criminal liability. Any employee who fails to comply with the record retention requirements set forth herein may be subject to disciplinary sanctions, including suspension or The Town Manager and/or Finance Director is responsible for identifying the documents that The' Town ofLiberty must or should retain and arrange for the proper storage and retrieval of records. Town Manager and/or Finance Director shall also ensure that all personnel subject to the terms oft this policy are aware ofthe record retention requirements set forth herein. Reporting Policy Violations: The Town ofLiberty is committed to enforcing this policy as it applies to all forms of records. Any employee that suspects the terms of this policy have been violated shall report the incident immediately to that employee'ss supervisor. Ifan employee is not comfortable bringing the matter up with the supervisor, the employee may bring the matter to the attention ofthe Town Manager and/or Finance Director. The Town ofLiberty prohibits, any form of discipline, reprisal, intimidation, or retaliation for reporting incidents ofinappropriate conduct of any kind, pursuing any record destruction claim, or cooperating in related  and machine-readable formats.  termination.  investigations.        Ouestions About the Policy: Any questions about this policy should be referred to Scott Kidd, Town Manager, ownmanager@townolibertync.org 126 S Fayetteville St Liberty NC 27298,  who is in charge of administering, enforcing, and updating this policy.  Adopted Monday August 26, 2024  hime fpib  Mayor  fta        WHEREAS, the' Town ofLiberty has received an allocation off funds from the "Coronavirus State Fiscal Recovery Fund" or "Coronavirus Local Fiscal Recovery Fund" (together "CSLFRF funds"), established pursuant to Sections 602 and 603 oft the Social Security Act, as added by Section 9901 of the American Rescue Plan Act of 2021, Pub. L. No. 117-2 (the "ARP/CSLFRF WHEREAS, CSLFRF funds are subject to the U.S. Department ofTreasury ("Treasury") regulations, including the Final Rule, the Award Terms and Conditions, and the Title VII WHEREAS, pursuant to the ARP/CSLFRF Award Terms and Conditions, and as a condition of receiving CSLFRF funds, the Town of Liberty agrees to follow all federal statutes and regulations prohibiting discrimination in its administration of CSLFRF under the terms and conditions of the ARP/CSLFRF award, including, without limitation, the following:  award").  implementing regulations at 31 C.F.R. Part 22.  Title VI oft the Civil Rights Act of1964 (42 U.S.C. SS 2000d et seq.) and Treasury" s implementing regulations at 31 C.F.R. Part 22, which prohibit discrimination on the basis ofrace, color, or national origin within programs or activities receiving federal financial ii. Thel Fair Housing Act, Title VIII of the Civil Rights Act of1 1968 (42 U.S.C. 8S 3601 et seq.), which prohibits discrimination in housing on the basis of race, color, religion, iii. Section 504 oft the Rehabilitation Act of1973, as amended (29 U.S.C. $ 794), which prohibits discrimination on the basis of disability under any program or activity receiving iv. The Age Discrimination Act of 1975, as amended (42 U.S.C. SS 6101 et seq.), and Treasuysimplementing regulations at 31 C.F.R. Part 23, which prohibit discrimination ont the basis ofa age in programs or activities receiving federal financial assistance; and V. Titlel II of the. Americans with Disabilities Act of 1990, as amended (42 U.S.C. $8 12101 etseq.), which prohibits discrimination on the basis of disability under programs, activities, and services provided or made available by state and local governments or  assistance;  national origin, sex, familial status, or disability;  Federal financial assistance;  instrumentalities or agencies thereto.  RESOLVED, That the governing board of the The Town ofLiberty hereby adopts and enacts the following nondiscrimination policy, which shall apply to the operations of any program, activity, or facility that is supported in whole, ori in part, by expenditures CSLFRF pursuant to  the ARP/CSLFRF award.  Nondiscrimination Policy Statement  It is the policy oft the Town ofl Liberty to ensure that no person shall, on the ground of race, color, national origin (including limited English Proficiency), familial status, sex, age, or        II. Discriminatory Practices Prohibited in the Administration oft the ARP/CSLFRE To ensure compliance with Title VII oft the Civil Rights Act of 1964, and Title 31 Code of Federal Regulations, Part 22, the Civil Rights Restoration Act of1987, and other pertinent nondiscrimination authorities, the Town ofLiberty shall prohibit, at a minimum, the following practices ini its administration of CSLFRF pursuant to the ARP/CSLFRF award: 1. Denying to a person any service, financial aid, or other program benefit without good 2. Providing to a person any service, financial aid, or another benefit which is different in quantity or quality, ori is provided in a different manner, from that provided to others 3. Subjecting a person to segregation or separate treatment in any matter related to the receipt of any service, financial aid, or other benefit under the program; 4. Restricting a person ini the enjoyment of any advantages, privileges, or other benefits enjoyed by others receiving any service, financial aid, or other benefit under the program; 5. Treating a person differently from others in determining whether that person satisfies any admission, enrollment, quota, eligibility, membership, or other requirement or condition which persons must meet to bej provided any service, financial aid, or other benefit 6. Implementing different standards, criteria, or other requirements for admission, enrollment, or participation inj planning, advisory, contractual, or other integral activities 7. Adopting methods of administration which, directly or through contractual relationships, would defeat or substantially impair the accomplishment ofe effective nondiscrimination; 8. Selecting a site or location ofi facilities with the purpose or effect of excluding persons from, denying them the benefits of, subjecting them to discrimination, or with the purpose or effect of defeating or substantially impairing the accomplishment oft the 9. Discriminating against any person, either directly or through a contractual agreement, in any employment resulting from the program, a primary objective of which is to provide 10. Committing acts ofintimidation or retaliation, including threatening, coercing, or discriminating against any individual for the purpose ofinterfering with any right or privilege secured by any pertinent nondiscrimination law, or because an individual made a complaint, testified, assisted, or participated in an investigation, proceeding, or hearing.  Award  cause;  under the program.  provided under the program;  to the program;  objectives ofTitle VI or related acts and regulations;  employment;  III. Reporting & Enforcement  1. The' Town ofLiberty shall cooperate in any enforcement or compliance review activities by the Department oft the Treasury. Enforcement may include investigation, arbitration, mediation, litigation, and monitoring ofa any settlement agreements that        may result from these actions. The Town ofLiberty shall comply with information requests, on-site compliance reviews, and reporting requirements. 2. The' Town ofLiberty shall maintain a complaint log and inform the Treasury of any complaints of discrimination on the grounds of race, color, or national origin (including limited English proficiency covered by Title VIo oft the Civil Rights Act of 1964 and implementing regulations and provide, upon request, al list ofa all such reviews or proceedings based on the complaint, whether pending or completed, including the outcome. The Town ofLiberty shall inform the Treasury ifit has 3. Any person who believes they have been aggrieved by a discriminatory practice under Title VI has ai right to file a formal complaint with the Treasury. Any such complaint must bei in writing and filed with the Treasury's Title VI Coordinator within one. hundred eighty (180) days following the date of the alleged discriminatory 4. Any person who believes that because ofthat person' s race, color, national origin, limited English proficiency, familial status, sex, age, religion, or disability that he/she/they have been discriminated against or unfairly treated by the Town of Liberty in violation of this policy should contact the following office within 180 days Ifyou feel you have been discriminated against by the Town ofLiberty, please contact  received no complaints under Title VI.  occurrence.  from the date oft the alleged discriminatory occurrence.  the Town Manager ofLiberty at 336-622-4276.  Adopted Monday August 26, 2024 hmue yb  ynin pDun  Atest 7  Mayor        ELIGIBLE PROJECT POLICY FOR THE EXPENDITURE OF AMERICAN RESCUE PLAN ACT OF: 2021 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS BY THE TOWN OF LIBERTY WHEREAS the Town of Liberty, has received an allocation of funds from the Coronavirus State and Local Fiscal Recovery Funds of H.R. 1319 American Rescue Plan Act of 2021 (ARP/CSLFRF); WHEREAS USTreasury is responsible for implementing ARP/CSLFRF and has enacted al Final Rule WHEREAS the funds may be used for projects within these categories, to the extent authorized 1. Support COVID-19 public health expenditures, by funding COVID-19 mitigation and prevention efforts, medical expenses, behavioral healthcare, preventing and responding 2. Address negative economic impacts caused by the public health emergency, including economic harms to households, small businesses, non-profits, impacted industries, and 3. Replace lost public sector revenue, using this funding to provide government services to the extent of the reduction in revenue experienced due to the pandemic; 4. Provide premium payf for essential workers, offering additional supportt to those whoh have borne and will bear the greatest health risks because of their service in critical 5. Invest in water, sewer, and broadband infrastructure, making necessary investments to improve access to clean drinking water, support vital wastewater and stormwater  and  outlining eligible projects; and  by state law.  to violence, and certain public health and safety staff;  the public sector;  infrastructure sectors; and,  infrastructure, and to expand access to broadband internet; and  WHEREAS the ARP/CSLFRF are subject to the provisions of the federal Uniform Grant Guidance, WHEREAS US Treasury has issued a Compliance and Reporting Guidance V.2.1 (November 15, 2021) dictating implementation of the ARP/CSLFRF award terms and compliance requirements;  2 CFR Part 200 (UG), as provided in the Assistance Listing; and  and  WHEREAS the Compliance and Reporting Guidance states on page 61 that  Per 2 CFR Part 200.303, your organization must develop and implement effective internal controls to ensure that funding decisions under the SLFRF award constitute  eligible uses ofi funds, and document determinations.  BE IT RESOLVED that the Town of Liberty hereby adopts and enacts the following Eligibility  Determination Policy for ARP/CSLFRF funds.        Eligibility Determination Policy for American Rescue Plan Act of 2021 This policy defines the permissible and prohibited uses oft the Coronavirus State and Local Fiscal Recovery Funds of H.R. 1319 American Rescue Plan Act of 2021 (ARP/CSLFRF) funds. It also outlines the procedures for determining howt the Town of Liberty will spend its ARP/CSLFRF  Coronavirus State and Local Fiscal Recovery Funds  funds. I.  PERMISSIBLE USES OF ARP/CSLFRF FUNDING  US Treasury issued its Final Rule regarding use of ARPA funds on. January 6, 2022. (The Final Rule is effective as of April 1, 2022. Until that date, a local government may proceed under the regulation promulgated by US Department of the Treasury in its Interim Final Rule or the Final Rule.) The Final Rule (and the Interim Final Rule) identify permissible uses of ARP/CSLFRF funds and certain limitations and process requirements. Local governments must allocate ARP/CSLFRF funds nol lateri than December 31, 2024 and disburse allf funding no laterthan December 31, 2026. Failure of an entity to expend all funds by December 31, 2026 will result in forfeiture of ARPA ARP/CSLFRF funds may be used for projects within the following categories of expenditures: 1. Support COVID-19 public health expenditures, by funding COVID-19 mitigation and prevention efforts, medical expenses, behavioral healthcare, preventing and responding 2. Address negative economic impacts caused by the public health emergency, including economic harms to workers, households, small businesses, non-profits, impacted 3. Replace lost public sector revenue, using this funding to provide government services to the extent oft the reduction in revenue experienced due tot the pandemic; 4. Provide premium payf for essential workers, offering additional support tot those whohave borne and will bear the greatest health risks because of their service in critical 5. Invest in water, sewer, and broadband infrastructure, making necessary investments to improve access to clean drinking water, support vital wastewater and stormwater  funds.  to violence, and cértain public health and safety staff;  industries, and the public sector;  infrastructure sectors; and  infrastructure, and to expand access to broadband internet; and  II.  PROHIBITED USES OF ARPA FUNDING  The ARP/CSLFRF and US Treasury's Final Rule prohibit certain uses of ARP/CSLFRF funds. Specifically, ARP/CSLFRF funds may not be used for projects within the following categories of  expenditures:  1. To make a deposit into a pension fund that constitutes an extraordinary payment of an accrued, unfunded liability (Note that routine contributions as part ofa payroll  obligation for an eligible project are allowed.);        2. To borrow money or make debt service payments; 3. To replenish rainy day funds or fund other financial reserves;  4. To satisfy an obligation arising from a settlement agreement, judgment, consent decree, orj judicially confirmed debt restricting in a judicial, administrative, or regulatory proceeding (There is an exception to this prohibition if the settlement or judgment requires the [Local Government Name] to provide services to respond to the COVID-19 public health emergency ori its negative economic impacts or to provide government services, then the costs oft those otherwise ARP/CSLFRF-elgible 5. Forap project that includes a term or condition that undermines efforts to stop the spread of COVID-19 or discourages compliance with recommendations and guidelines in CDC guidance for stopping the spread of COVID-19; 6. In violation of the conflict-of-interest requirements imposed by the award terms and 7. For any expenditure that would violate other applicable federal, state, and local laws  projects are allowéd.);  2CFR: 200.318(c). and regulations.  The Town ofl Liberty, and any ofi its contractors or subrecipients, may not expend any ARP/CSLFRF  funds fori these purposes.  III. PROCEDURES FOR PROJECT APPROVAL employees and officials must comply with these requirements.  The following are procedures for ARP/CSLFRF project approvals. All [Local Government Name] 1. Requests for ARP/CSLFRF funding, must be made in writing and include all the following: b. Identification of ARP/CSLFRF Expenditure Category (EC) (AI list of ECs in int the Appendix to the USTreasury Compliance and Reporting Guidance.) Required justifications for applicable projects, according to the requirements in the Final Rule. Employees or any applicant seeking ARPA funding should review the Final Rule and Final Rule Overview prior to submitting a proposal. d. Proposed budget, broken down by cost item, in accordance with the [Local e. Aproject implementation plan and estimated implementation timeline (All ARP/CSLFRF funds must bei fully obligated by December 31, 2024, and fully  a. Brief description of the project  Government Namel's Allowable Cost Policy. expended by December 31, 2026.)  2. Requests fori funding must be submitted to Town Manager and/or Finance Director for approval. All requests will be reviewed by Town Manager and/or Finance Director for ARP/CSLFRF compliance and by Town Manager and/or Finance Director for allowable 3. No ARP/CSLFRF may be obligated or expended before final written approval by Town 4. Ifap proposal does not meet the required criteria, it will be returned to the requesting  costs and other financial review.  Manager.  party for revision and resubmittal.        5. Following approval, employees responsible for implementing the project must conform actual obligations and expenditures to the pre-approved project budget. Changes in project budgets must be approved by Town Manager and/or Finance Director and may require al budget amendment before proceeding. Any delay in the projected project completion date shall be communicated to the Town Manager and/or Finance Director 6. Town Manager and/or Finance Director must collect and document required information for each EC, for purposes of completing the required Project and 7. Town Manager and/or Finance Director must maintain written project requests and approvals, all supporting documentation, and financial information at least until  immediately.  Expenditure reports. December 31, 2031.  Adopted Monday August 26, 2024 iney  Apalun Bhn  Mayor  Aftest        Meeting Date August 26, 2024  Town ofLiberty Budget Amendment (FY 2024-2025 #07) Council Approval Needed BEI IT ORDAINED, by the Liberty Town Council that the' Town ofLiberty Budget Ordinance for fiscal year 2024-2025, which was adopted on June 17,2024, be amended as follows: This amendment: is to move: funds from General Fund. Appr to the NC Commerce Line Item for  McGill Invt2402507-22676.  Section 1: The following revenue and expenditures in the General Fund Appr. and NC Commerce Fund line items shall be increased by the amounts indicated:  101 Fund Line Item 10-3990-000  General Fund General Fund Balance Appr Total Expenditures  Budget  Change Amended 4,584 4,584  Budget 4,584 4,584  0 0  101 Fund Line Item 93-4200-042  General Fund NC Commerce. Heritage Study Total Revenues  Budget  Change 0 4,584 0 4,584  Amended Budget 4,584 4,584  Prepared By: Kathy Bond, Finance Director Reviewed By: Scott Kidd, Town Manager Town ManagerInitials: KV  Fimee Filmore York, Mayor  ATTEST:  lpib  Date: 8/2u/2n4  -  pipon  Date: y/24/20u        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 ofL Liberty 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 the services we are toj provide for Town ofLiberty for the 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 fundi information, and the disclosures, which collectively comprise thel basic financial statements ofTown ofLiberty as ofandi for the year ended. June 30,2024. Accounting standards generally accepted 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 of Liberty's basic financial statements. Such information, although not a part oft the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting: for placing thel 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 Liberty's RSI in accordance with auditing standards generally accepted in the United States of America (GAAS). These limited procedures will consist of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, thel basic financial statements, and other knowledge we obtained during our audit of thel basic financial statements. We will not express an opinion or provide any assurance on the information because the limited procedures doi not provide us withs sufficient appropriate evidence to express an opinion or provide any assurance. Thei following  2024.  Audit Scope and Objectives  RSI is required by GAAP and will bes subjected to certain limited procedures, but will notl 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 the following supplementary information to the auditing procedures applied in our audit oft thei financial statements and certain additional procedures, including comparing andi reconciling such information directly to the underlying accounting and other records used toj prepare thei financial statements or to the financial statements themselves, and other additional procedures in accordance with GAAS, and we willj provide an opinion on it in relation to the financial statements as a whole [ina as separate written report accompanying our auditor'sr report ont the financial statements ORi ina ar report  combined with our auditor'si report on the financial statements:  1) Combining individual fund financial statements, budgetary schedules, and other schedules.    Inc connection with our audito oft the! basici financial statements, we will read thef following other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to 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 but 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 or in the aggregate, they would influence thej judgment ofai reasonable user made 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 thes standards for financial audits contained in Govermment Auditing Standards, issued by the Comptroller General of the United States, and will include tests of your accounting records of Town ofLiberty and other procedures we consider necessary to enable us to express such opinions. As part of an audit in accordance with GAAS and Govermment 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. We will also evaluate the overall presentation oft the financial statements, including the disclosures, and determine whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. Wev will plan andj perform the audit to obtain reasonable: assurance. about whether thei financial statements arei free of material misstatement, whether from (1) errors, (2) fraudulent financial reporting, (3) misappropriation of assets, or (4) violations of laws or governmental regulations that are attributable to the government or to acts by management or employees acting on behalf of the government. Because the determination of waste and abuse is subjective, Government Auditing Standards do not expect auditors toj perform specific procedures to detect waste or abuse in financial audits nor do they expect Because of the inherent limitations of an audit, combined with thei inherent limitations ofi internal control, and because we will not perform a detailed examination of all transactions, therei is an unavoidable risk that some material misstatements may not be detected by us, even though the auditi is properly planned andj performed in accordance with GAAS and Govermment, 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 thei 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 also inform the appropriate level ofi 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 will also conclude, based on the audit evidence obtained, whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the government's: ability to continue as a going concern for a reasonable period of time. Our procedures will include tests of documentary evidence supporting the transactions recorded in the accounts, tests oft 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  on thet financial 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 not extend to any later periods for which we: are not engaged as auditors.  as part of the engagement.  Improper revenue: recognition Management override of controls    Wei may, from time to time and depending on 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 ofy your 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 the unauthorized release ofy your confidential information to others. In the event that we are unable to secure an appropriate confidentiality agreement, you willl be asked toj provide your consent prior to the sharing of your confidential information with thet 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 not: relieve you of your responsibilities.  We will obtain an understanding of the government and its environment, including internal control relevant to the audit, sufficient to identify and assess the risks of material misstatement of the financial statements, whether due to error or fraud, and to design and perform audit procedures responsive to those risks and obtain evidence that is sufficient and appropriate to provide al basis for our opinions. Tests of controls may be performed to testt the effectiveness ofcertain controls that we consider relevant toj preventing and detecting errors andi fraud that are material tot thei financial statements andt toj preventing and detecting misstatements resulting fromi illegal acts and other noncompliance matters that have a direct and material effect on the financial statements. Ourt tests, if performed, willl be less in scope than would be necessary to render an opinion on internal control and, accordingly, no opinion willl be expressed in our report on internal control issued pursuant to Govermment. Auditing Standards. The risk ofr not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud 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 to management and those charged with governance internal control related matters that are required to be communicated under AICPA professional standards and Government 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 in preparing the financial statements and related notes ofTown ofLiberty in conformity with accounting principles generally accepted ini thel United States of America based on information provided by you. These nonaudit services dor not constitute an audit under Govermment Auditing Standards and such services will not be conducted in accordance with Government. Auditing Standards. We will perform thes services in accordance with applicable professional standards. The other services are limited to the financial statement services previously defined. We, in our sole 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 nonaudit services wej provide. You willl bei required to acknowledgei in thei management representation letter our assistance with preparation oft thei financial statements andi 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;  Auditing Standards. Audit Procedures- Compliance  such an opinion in our report on compliance issued pursuant to Govermment. Auditing Standards.  Other Services  evaluate the adequacy and results oft those services; and accept responsibility for them.    Responsibilities of Management for the Financial Statements  Our audit willl be conducted on thel basis that you acknowledge andi understand: your responsibility for designing, implementing, establishing, and maintaining effectivei internal controls relevant to thej preparation and fair presentation off financial statements that arei free from material misstatement, whether due toi 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 and properly reported. Management is also responsible fori implementing systems designed to achieve compliance with applicable laws, regulations, contracts, and grant agreements. You are also responsible for the selection and application of accounting principles, for the preparation and fair presentation of the financial statements 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 the provisions of contracts and grant agreements. Management is responsible for making drafts of financial statements, all financial records, and related information availablet to us and: for the accuracy and completeness oft thati information (including 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 is relevant to the preparation and fair presentation of the financial statements, such as records, documentation, identification of all related parties and all related-party relationships and transactions, and other matters; (2) additional information that we may request fort thej purpose oft the audit; and (3) unrestricted access toj persons within the government: from whom we determine 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 to thel latest period presented arei immaterial, bothi individually and in the aggregate, to thei financial You are responsible fort the design and implementation of programs and controls toj prevent and detect fraud, and for informing us about alll known or suspected fraud affecting the government: involving ()management, (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: includei informing us ofyour knowledge ofany 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 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 in the United States of America (GAAP). 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 thati includes our report thereon OR make the audited financial statements readily available to users oft the supplementary information no later than the datet thes 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 usedi 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 thes 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 and recommendations resulting from those audits, attestation engagements, performance audits, or other studies. You are also responsible for providing management's views on our current findings, conclusions, and recommendations, as well as your planned corrective actions, for the report, and for thet timing and format for providing that information.  responsibilities required by GAAS and Government. Auditing Standards.  statements of each opinion unit taken as a whole.  contracts or grant agreements that we report.    Engagement Administration, Fees, and Other any documents selected by us for testing.  We understand that your employees will prepare all cash, accountsi receivable, or other confirmations wei request and willl locate Wev will provide copies of our reports to the Board; however, management is responsible for distribution of the reports and the financial statements. Unless restricted by law or regulation, or containing privileged and confidential information, copies of The audit documentation for this engagement is the property of Thompson, Price, Scott, Adams, & Co., P.A. and constitutes confidential information. However, subject to applicable laws andi regulations, audit documentation: and appropriate individuals willl be made available upon request andi in a timely mannert to Oversight Agencies, a federal agency providing direct or indirect funding, or the U.S. Government Accountability Office forp purposes ofa quality review of the audit, to 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 thes supervision ofThompson, Price, Scott, Adams, & Co., P.A. personnel. Furthermore, upon request, we may: provide copies of selected audit documentation to the aforementioned parties. These parties may intend, or decide, to distribute the copies ori information contained therein to others, including other governmental agencies. The audit documentation for this engagement willl be retained for a minimum of five years after the 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 thej 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 the reports or authorizing another individual to sign them. We expect tol begin our audit on approximately July 1,2024. Our fee for these services is stated in thel 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 if your account becomes 60 days or more overdue and may not be resumed until your account is paid in full. If 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 fee is based on anticipated cooperation from your personnel and the assumption that unexpected circumstances will not be encountered during the engagement. Ifsignificant additional time is necessary, we willl keep: you informed 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 our report may differ fromi its expected form and content based ont the results of our audit.] Depending on ther nature oft these circumstances, itr may be necessary for us to modify our opinions, add a separate section, or add an emphasis-of-matter or other-matter paragraph to our auditor's report, or ift necessary, withdraw from this engagement. If our opinions are other than unmodified, we will discuss the 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 or issue reports, or we may withdraw from this engagement. We will also provide a report (that does not include an opinion) on internal control related to the financial statements and compliance with the provisions ofl laws, regulations, contracts, and grant agreements, noncompliance with which could havea material effect on thei financial statements as required by Government. Auditing Standards. The report on internal control and on compliance and other matters will state (1) that thej purpose oft the report is solelyt to describe thes scope oft testing of internal control and compliance, and thei results oft that testing, and nott toj provide an opinion on the effectiveness oft the entity'si internal control on compliance, and (2) that the report is ani integral part ofa an audit performedi in accordance with Government, 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. If during our audit we become aware that' Town ofl Liberty is subject to an audit requirement that is not encompassed in the 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 Govermment. Auditing Standards may not satisfy the relevant legal, regulatory, or contractual requirements. We appreciate the opportunity tol be ofservice 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  describedi in this letter, please sign the attached copy andi return it to us.    Very truly yours,  Thompson, Price, Scott, Adams, & Co., P.A.  RESPONSE: Management signature: Title: Tauas Date:  This letter correctly sets forth the understandingaf7 Town ofLiberty.  * A  -  424/4  Governance signature: hinee  Title: MAYOR Date: 8-28-24  Lb    LGC-205  CONTRACT TO AUDIT ACCOUNTS  Rev. 11/2023  The Governing Board of Primary Government Unit Town ofLiberty NA  and Discretely Presented Component Unit (DPCU) (ifa applicable)  Primary Government Unit, together with DPCU (ifa applicable), 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, NC 28403  Hereinafter referred to as Auditor  for Fiscal Year Ending 06/30/24  Date Audit Will Be Submitted tol LGC Must be within four months of 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 toi the auditing procedures applied in the audit of the basic financial statements and an opinion shall be rendered in relation to (as applicable) the governmental activities, the business- type activities, the aggregate DPCUS, each major governmental and enterprise fund, and the aggregate remaining fund information (non- major government and enterprise funds, the internal service fund type, and the fiduciary fund types). The basic financial statements shall include budgetary comparison information in a budgetary comparison statement, rather than as RSI, for the General Fund and any annually budgeted Special Revenue funds. 2. Ata a minimum, the. Auditor shall conduct the audit and render the report in accordance with GAAS. The Auditor shall perform the audit in accordance with Government, Auditing Standards (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) or the State Single Audit Implementation Act. This audit and all associated audit documentation may be subject to review by Federal and State agencies in accordance with Federal and State laws, including the staffs 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 ($200.501), it is recommended that the Auditor and Governmental Unit(s). jointly agree, in advance of the execution of this contract, which party is responsible for submission of the audit and the accompanying data collection form to the Federal Audit Clearinghouse as required under the Uniform Guidance ($200.512).  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 to the federal criteria in the Uniform Guidance, audits must have been submitted timely to the LGC. If in the reporting year, ori in either of the two previous years, the unit reported a 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 Ifti the audit and Auditor communication are found in this review to be substandard, the results of the review may be forwarded to the North Carolina State Board of CPA Examiners (NC State Board). 3. Ifan entity is determined to be a component of another government as defined by the group audit standards, the entity's auditor shall make a good faith effort to comply in a timely manner with the requests of This contract contemplates an unmodified opinion being rendered. If during the process of conducting the audit, the Auditor determines that it will not be possible to render an unmodified opinion on the financial statements of the unit, the Auditor shall contact the LGC Staff to discuss the circumstances leading to that conclusion as soon as is practical and before the final report is issued. The audit shall include such tests of the accounting records and such other auditing procedures as are considered by the Auditor to be necessary in the circumstances. Any limitations or restrictions in scope which would lead to a qualification should be fully 5. Ift this audit engagement is subject to the standards for audit as defined in Government Auditing Standards, 2018 revision, issued by the Comptroller General of the United States, then by accepting this engagement, the Auditor warrants that 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 oft the most recent peer review report to the Governmental Unit(s) and the Secretary of the LGC prior to the execution of an audit contract. Subsequent submissions of the report are required only upon report expiration or upon auditor's receipt of an updated peer review report. Ift the audit firm received a peer review rating other than pass, the Auditor shall not contract with the Governmental Unit(s) without first contacting the Secretary of the LGC for a Ift the audit engagement is not subject to Government Auditing Standards or if financial statements are not prepared in accordance with U.S. generally accepted accounting principles (GAAP) and fail to include all disclosures required by GAAP, the Auditor shall provide an explanation as to why in an attachment to this 6. Itis agreed that time is of the essence in this contract. All audits are to be performed and the report of audit submitted to LGC Staff within four months ofi fiscal year end. Ifit becomes necessary to amend the audit fee or the date that the audit report will be submitted to the LGC, an amended contract along with a written 7. Iti is agreed that GAAS include a review of the Governmental Unit's (Units') systems ofi internal control and accounting as same relate to accountability of funds and adherence to budget and law requirements applicable thereto; that the Auditor shall make a written report, which may or may not be a part of the written report of audit, to the Governing Board setting forth his/her findings, together with his recommendations for improvement. That written report shall include all matters defined as significant deficiencies and material weaknesses" in AU-C 265 of the. AICPA Professional Standards (Clarified). The Auditor shall file a copy of that 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. Ifr 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 - $600.42.  4.  explained in an attachment to 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 of the LGC for approval.  report with the Secretary oft the LGC.  documentation must be submitted.    LGC-205  CONTRACT TO AUDIT ACCOUNTS  Rev. 11/2023  8. All local government: and public authority contracts for audit or audit-related work require the approval of the Secretary of the LGC. This includes annual or special audits, agreed upon procedures related to internal controls, bookkeeping or other assistance necessary to prepare the Governmental Unit's records for audit, financial statement preparation, any finance-related investigations, or any other audit- related work in the State of North Carolina. Approval is also required for 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 byt 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 of the LGC for approval. the invoice marked lapproved' with approval date shall be returned to the Auditor to present to the Governmental Unit(s) for payment. This paragraph is not applicable to contracts for audits 10. In consideration of the satisfactory performance of the provisions of this contract, the Governmental Unit(s) shall pay to the Auditor, upon approval by the Secretary of the LGC if required, the fee, which includes any costs the Auditor may incur from work paper or peer reviews or any other quality assurance program required by third parties (federal and state grantor and oversight agencies or other organizations) as required under the Federal and State Single Audit Acts. This does not include fees for any pre-issuance reviews that mayl 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 LGC Staff, either int 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 of 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 fori full disclosure under the law, and (d) the Auditor's opinion on the material presented. The. Auditor shall furnish the 13. Ifthe audit firm is required by the NC State Board, the NCACPA Peer Review Committee, or the Secretary of the LGC to have a pre-issuance review of its audit work, there shall be a statement in the engagement letter indicating the pre-issuance review requirement. There 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  of hospitals.  Board of CPA Examiners (see Item 13).  bond documents.  required number of copies of the report of audit to the Governing Board uponcompletion.  audit report upon submission to LGC Staff.  Page 3    LGC-205  CONTRACT TO AUDIT ACCOUNTS  Rev. 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 ini the offices of the LGC by any interested parties. Any subsequent revisions to these reports shall be sent to the Secretary of the LGC. These audited financial statements, excluding the Auditors' opinion, may be used in the preparation of official statements for debt offerings by municipal bond rating services to fulfill secondary market disclosure requirements of the Securities and Exchange Commission and for other lawful purposes of the Governmental Unit(s) without requiring consent oft the Auditor. If 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. Ifa an approved contract needs to be modified or amended for any reason, the change shall be made in writing and pre-audited if the change includes a change in audit fee (pre-audit requirement does not apply to hospitals). This amended contract shall be completed in full, including a written explanation of the change, signed and dated by all original parties to the contract. It shall then be submitted to the Secretary of the LGC for approval. No change to the audit contract shall be effective unless approved by the Secretary of the LGC. 17. A 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 for fees, work, and terms not related to audit services, shall be incorporated by reference as if fully set forth herein as part of this contract. In case of conflict between the terms of the engagement letter and the terms oft this contract, the terms oft 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 is issued, a separate audit contract is required. If a separate report is not to be issued and the DPCU is included in the primary government audit, the DPCU shall be named along with the primary government on this audit contract. DPCU Board approval date, signatures from the DPCU Board chairman and 20. The contract shall be executed, pre-audited (pre-audit requirement does not apply to hospitals), and physically signed by all parties including Governmental Unit(s) and the Auditor, then submitted in PDF format to 21. The contract is not valid until it is approved by the Secretary of the LGC. The staff of the LGC shall notify the Governmental Unit and Auditor of contract approval by email. The audit should not be started before the 22. Retention of Client Records: Auditors are subject to the NC State Board of CPA Examiners' Retention of Client Records Rule 21 NCAC 08N .0305 as it relates to the provision of audit and other attest services, as well as non-attest services. Clients and former clients should be familiar with the requirements of this rule prior to  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 to terminate is in writing and signed by both parties, (b) the parties have agreed on the fee amount which shall be paid to the Auditor (if applicable), and (c) no 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 to 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. Ift the. Auditor cannot reduce the threats to an acceptable level, the Auditor cannot complete the audit. If the Auditor is able to reduce the threats to an acceptable level, the documentation of this determination, including the safeguards applied, must be included in the audit workpapers. All non-attest service(s) being performed by the Auditor that are necessary to perform the audit must be identified and included in this contract. The Governmental Unit shall designate an individual with the suitable skills, knowledge, and/or experience (SKE) necessary to oversee the services and accept responsibility for the results of the services performed. If the Auditor is able toi identify an individual with the appropriate SKE, s/he must document and include in the audit workpapers how 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 after the submission of the audit report to the Secretary. The auditor's presentation to the government unit's governing body or audit committee shall include: a) the description of each finding, including all material weaknesses and significant deficiencies, as found by the auditor, and any other issues related to the internal controls or fiscal health of the government unit as disclosed in the management letter, the Single Audit or Yellow Book reports, or any other communications from the auditor regarding internal controls as required by current auditing c) the values of Financial Performance Indicators based on information presented in the audited d) notification to the governing body that the governing body shall develop a "Response to the Auditor's Findings, Recommendations, and Fiscal Matters," ifr required under 20 NCAC 03 .0508. 29. Information based on the audited financial statements shall be submitted to the Secretary for the purpose 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 to this contract, except the following  numbered paragraphs shall be deleted (See Item 17 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 at thet time of submission. Refer tot the N.C. Department of State Treasurer website at nttps:/www.nctreasurer.comistate-and-ocal- govermen-finance-dsonlocar-govermmn.commisonsubmiting-youraudit to the email addresses provided on the signature pages that follow.  32. All communications regarding audit contract requests for modification or official approvals will be sent 33. Modifications to the language and terms contained in this contract form (LGC-205) are not allowed.  Page 6    LGC-205  CONTRACT TO AUDIT ACCOUNTS FEES FOR AUDIT SERVICES  Rev. 11/2023  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/Company: Financel Liberty  Email Address: Tmanc@lowmollpetyneers  ORI Not Applicable (Identification of SKE Individual on the LGC-205 Contract is not applicable for  GAAS-only audits ora audits with FYEs prior to. June 30, 2020.)  2. Fees may not be included in this contract for work performed on Annual Financial Information Reports (AFIRs), Form 990s, or other services not associated with audit fees and costs. Such fees may be included in the engagement letter but may not be included in this contract ori in anyi invoices requiring approval of the LGC. See 3. The audit fee information included int 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 excludedi fees.  and invoices associated with audits of hospitals).  Primary Government Unit  Town ofLiberty $ 3000.00 ifapplicable  Audit Fee (financial and compliance if applicable) $ 30,000.00 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 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  Additional Fees Not Included Above (fapplicable):  $ $ 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  Authorized Firm Representative (typed or printed)* Signature*  Gregory S. Adams, CPA Date*  Email Address* gadams@psacpas.com  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  SHmee Email Address* mayor@lowmolilbetyncorg  Spil  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* 833-24  $  39,000  Primary Governmental Unit Finance Officer* (typedo orp printed Signature*  oshy PanD Email Address* fname@iowmollbetyneors  Page 8    LGC-205  CONTRACT TO AUDIT ACCOUNTS SIGNATURE PAGE- 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 -F PRE-AUDIT CERTIFICATE  Required by G.S. 159-28(a1) or G.S. 115C-441(a1). Not applicable to hospital contracts.  This instrument has been pre-audited in the manner: required by The Local Govemment Budget and Fiscal  Control Act or by the School Budget and Fiscal Control Act.  Sum Obligated by this Transaction: DPCU Finance Officer (typed or printed)* Khothy Bond Dateo of Prg-Audit Certificate* 8-33-34  $ 39,000 Signature*. Email Address* hoancee  Hodhy Bmdl  Taoncflikrlynte  Remember to print this form, and obtain all required signatures prior to submission.  PRINT  Page 9