page 10 of the letter from the auditors:

Time limitation The nature of our services makes it difficult, with the passage of time, to gather and present evidence that fully and fairly establishes the facts underlying any Dispute that may arise between us. The parties agree that, notwithstanding any statute or law of limitations that might otherwise apply to a Dispute, including one arising out of this agreement or the services performed under this agreement, for breach of contract or fiduciary duty, tort, fraud, misrepresentation or any other cause of action or remedy, any action or legal proceeding by you against us must be commenced within twenty-four (24) months (“Limitation Period”) after the date when we deliver our final audit report under this agreement to you, regardless of whether we do other services for you relating to the audit report, or you shall be forever barred from commencing a lawsuit or obtaining any legal or equitable relief or recovery. The Limitation Period applies and begins to run even if you have not suffered any damage or loss, or have not become aware of the existence or possible existence of a Dispute. Fees Assuming the audit includes the audit of one (1) major federal grant, our fee for these services will be $28,500 for fiscal year 2013. If an additional grant(s) is required to be audited under the requirements of OMB Circular A-133, we will issue a change order for $5,500 (per grant) to audit the applicable program(s). Our fee above includes all out-of-pocket costs, such as report reproduction, typing, postage, travel, copies, telephone, etc. If unexpected circumstances require significant additional time, we will advise you before undertaking work that would require a substantial increase in the fee estimate. Our invoices for these fees will be rendered each month as work progresses and are payable on presentation. In accordance with our firm policies, work may be suspended if your account becomes 30 days or more overdue and will 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 even if we have not issued our reports. You will be obligated to compensate us for all time expended and to reimburse us for all out-of-pocket expenditures through the date of termination. Unanticipated services Additional work resulting from unanticipated changes in your organization or accounting records If your organization undergoes significant changes in key personnel, accounting systems, and/or internal control, we are required to update our audit documentation and audit plan. The following are examples of situations that will require additional audit work:  Revising documentation of your internal control for changes resulting from your implementation of new information systems  Deterioration in the quality of the entity’s accounting records during the current-year engagement in comparison to the prior-year engagement  Significant new accounting issues

posted by Jeff Bennett