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City of Little Canada <br />Contract for Auditing Services <br />Page 6 <br />each month as work progresses and are payable on presentation. The above fee is based on <br />anticipated cooperation from your personnel and the assumption that unexpected <br />circumstances will not be encountered during the audit. If significant additional time is <br />necessary, we will discuss it with you and arrive at a new fee estimate before we incur the <br />additional costs. <br />Government Auditing Standards requires that we provide you with a copy of our most recent <br />external peer review report and any letter of comment, and any subsequent peer review <br />reports or letters of comment received during the period of contract. Our 2001 peer review <br />report and Letter of comment accompanies this letter as Appendix A. <br />We appreciate the opportunity to be of service to the City of Little Canada, Minnesota and <br />believe this letter accurately summarizes the significant terms of our engagement. If you <br />have any questions, please let us know. If you agree with the terms of our engagement as <br />described in this letter, please sign the enclosed copy and return it to us. <br />Sincerely, <br />I-ILB TAUTGES REDPATH, LTD. <br />Mark C. Gibbs, CPA <br />MGC /bmj <br />538937.1 <br />