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November 3, 1997 <br />TAUTGES, REDPATH & CO., LTD. <br />c69T 1iT_D PUBLIC ACCOUNTANTS <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 <br />year ending December 31, 1997. This contract is similar to last years contract. The scope of our <br />services include the following: <br />• Financial audit of the City <br />• State 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 <br />level of federal aid so that we may plan for an expanded scope of audit as may be required. <br />For the 1997 audit, we commit to the $17,500 fee in accordance with our three year proposal <br />approval December 20, 1995. This fee is based on anticipated cooperation from City personnel <br />and the assumption that unexpected circumstances will not be encountered. If significant <br />additional time is 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 <br />our office and retain the other copy for your files. Your early consideration of this contract will <br />assist us in preparing our 1997/1998 audit schedule and will be greatly appreciated. If you have <br />any questions, please don't hesitate to call. <br />Sincerely, <br />TAUTGES, REDPATH & CO., LTD. <br />Mark C. Gibbs, CPA <br />4510 White Bear °e <br />Page 36 <br />4X 426 -5004 Member of HLB internat'onai <br />