VLAWMO Annual Financial Report 2007

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ABDO IEICK& ,10. MEYERS up Certified Public Accountants & Consultants Grandview Square 5201 Eden Avenue Suite 370 Edina, MN 55436 REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS Board of Directors Vadnais Lake Area Water Management Organization Vadnais Heights, Minnesota In planning and performing our audit, we considered Vadnais Lake Area Water Management Organization's (the Organization), Vadnais Heights, Minnesota, intemal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Organization's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Organization's internal control over financial reporting. Our consideration of internal control over financial reporting was for the limited purpose described in the preceding paragraph and would not necessarily identify all deficiencies in intemal control over financial reporting that might be significant deficiencies or material weaknesses. However, as discussed in the schedule of findings and responses, we identified certain deficiencies in internal control over financial reporting that we consider to be significant deficiencies. A control deficiency exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the Organization's ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement of the Organization's financial statements that is more than inconsequential will not be prevented or detected by the Organization's internal control. We consider findings 2007-1, 2007-2 and 2007-3 to be significant deficiencies in intemal control over financial reporting. A material weakness is a significant deficiency, or combination of significant deficiencies, that result in more than a remote likelihood that a material misstatement of the financial statements will not be prevented or detected by the Organization's internal control. We believe that finding 2007-4 constitutes a material weakness. The Organization's responses to the findings identified in our audit are described in the accompanying schedule of findings and responses. We did not audit the Organization's responses and, accordingly, we express no opinion on them. This report is intended solely for the information and use of the Board of Directors, management and the Minnesota Office of the State Auditor, and is not intended to be and should not be used by anyone other than these specified parties. 0,66 4Tittro March 19, 2008 ABDO, EICK & MEYERS, LLP Minneapolis, Minnesota Certified Public Accountants -19- 952.835.9090 • Fax 952.835.3261 www.aemcpas.com