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TAUTGES, REDPATH & CO., LTD. <br />CERTIFIED PUBLIC ACCOUNTANTS <br />AUDITOR'S REPORT ON INTERNAL CONTROL STRUCTURE <br />To the Board of Trustees <br />Little Canada Firemen's Relief Association <br />In planning and performing our audit of the combined and individual fund financial <br />statements of the Little Canada Firemen's Relief Association for the year ended December <br />31, 1994, we considered its internal control structure in order to determine our auditing <br />procedures for the purpose of expressing our opinion on the combined and individual fund <br />financial statements and not to provide assurance on the internal control structure. <br />However, we noted certain matters involving the internal control structure and its operation <br />that we consider to be reportable conditions under standards established by the American <br />Institute of Certified Public Accountants. Reportable conditions involve matters coming to <br />our attention relating to significant deficiencies in the design or operation of the internal <br />control structure that, in our judgment, could adversely affect the entity's ability to record, <br />process, summarize, and report financial data consistent with the assertions of management <br />in the combined and individual fund financial statements. <br />Substantially all accounting procedures are performed by one person (the Treasurer). Ideal <br />conditions call for segregation of duties to establish a system of internal testing of <br />procedures performed. Certain other safeguards are established to compensate for this <br />situation (such as President and Treasurer signing of all checks and the Board's authority to <br />inspect all receipts and disbursements of the Relief Association; additionally, all members <br />receive a financial report that is reviewed and accepted by vote of the membership). These <br />conditions are common to organizations of this size. Any modification of intemal controls <br />in these areas must be viewed from a cost/benefit perspective. <br />This report is intended for the information of the Little Canada Firemen's Relief <br />Association. This restriction is not intended to limit the distribution of this report, which is <br />a matter of public record. <br />Respectfully submitted, <br />• f co_ Li-- <br />TAUTGES, REDPATH & CO., LTD. <br />Certified Public Accountants <br />February 20, 1995 <br />4810 White Bear Parkway • White Bear Lake, Minr <br />Page 63 <br />• FAX /426 -5004 • Member of HLB International <br />