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HLB <br />Tautges Redpath, Ltd. <br />Certified Public Accountants and Consultants <br />August 28, 1998 <br />Joel Hanson, City Administrator <br />City of Little Canada <br />515 Little Canada Road <br />Little Canada, MN 55117 <br />Dear Joel: <br />Enclosed are two copies of our standard Agreement for Auditing/Accounting Services for the year <br />ending December 31, 1998. This contract is similar to last years contract. The scope of our services <br />include the following: <br />• Financial audit of the City <br />• State of Minnesota Legal Compliance Audit <br />• Preparation of the Annual Financial Report <br />• Management Letter <br />Federal law requires that the City have an Annual Federal Compliance Audit if the City expends <br />$300,000 or more of federal grants or aids per year. Please advise our office of your expected level <br />of federal aid so that we may plan for an expanded scope of audit as may be required. <br />For the 1998 audit, we estimate our fee to be $18,000, which represents a 3% increase over last <br />years' fee of $17,500. This fee is based on anticipated cooperation from City personnel and the <br />assumption that unexpected circumstances will not be encountered. If significant additional time is <br />necessary, we will discuss it with you before we incur additional costs. <br />Upon the approval of this agreement by your Council and execution, please return one copy to our <br />office and retain the other copy for your files. Your early consideration of this contract will assist us <br />in preparing our 1998/1999 audit schedule and will be greatly appreciated. If you have any <br />questions, please don't hesitate to call. <br />Sincerely, <br />HLB TAUTGES REDPATH, �THH, LTD. <br />4 ` <br />Mark C. Gibbs, CPA <br />MCG /clg <br />RECEIVED SEP 1 7 1998 <br />Enclosure <br />4810 White Bear Parkway, White Bear Lakp hei„noo.,t., Gc, +n "on ' ' `one: 651 426 7000 Fax 651 426 5004 <br />HO Tautges fledpath. Ltd. is a member al ® International. <br />Page 44 <br />business advisers. <br />