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HLB <br />Tautges Redpath, Ltd. <br />Certified Public Accountants and Consultants <br />December 5, 2006 <br />Mr. Joel Hanson, City Administrator <br />City of Little Canada <br />515 Little Canada Rd. <br />Little Canada, MN 55117 <br />We are pleased to confirm our understanding of the services we are to provide the City of <br />Little Canada, Minnesota for the year ending December 31, 2006. The scope of services <br />includes the following: <br />• We will audit the financial statements of the governmental activities, the business - <br />type activities, each major fund, and the aggregate remaining fund information, which <br />collectively comprise the entity's basic financial statements, of the City of Little <br />Canada, Minnesota as of and for the year ending December 31, 2006. We will <br />provide an "in- relation -to" opinion on the combining and individual fund financial <br />statements, supporting schedules and supplementary information. The following <br />supplementary information accompanying the basic financial statements required by <br />generally accepted accounting principles that will be subjected to certain limited <br />procedures, but will not be audited: <br />o Budgetary comparison schedules presented as RSI <br />The following additional information accompanying- the basic financial statements that will not be subjected to the auditing procedures applied in our audit of the <br />financial statements, and for which our auditor's report will disclaim an opinion: <br />o Introductory section <br />• Preparation, copying, proofing and binding of the Annual Financial Report. <br />• State Legal Compliance Audit <br />• Preparation of Audit Management Letter <br />4810 White Bear Parkway White Bear Lake, Minnesota 55110 <br />'1303 South Frontage Road Suite 13 Hastings, Minnesota 55033 <br />Ia8 ranges HEN b. 11(1 a.I memberol hunrnauonu a 'Or <br />}{7.153S 1 <br />'du <br />11 <br />651 426 7000 651 426 5004 Fax <br />651 480 4990 651 426 5004 Fax <br />I) iII115:IIIJ III I.' HIFss i11' Ilf <br />l'vww.hlbtr.corn <br />