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<br />400 Robert Street North, Suite 1600, St. Paul, MN, 55101 651.426.7000 www.redpathcpas.com <br />COMMUNICATION WITH THOSE CHARGED WITH GOVERNANCE <br /> <br /> <br />To the Honorable Mayor and <br />Members of the City Council <br />City of Lino Lakes, Minnesota <br /> <br /> <br />We have audited the financial statements of the governmental activities, the business-type <br />activities, each major fund, and the aggregate remaining fund information of the City of Lino <br />Lakes, Minnesota (the City) for the year ended December 31, 2024. Professional standards <br />require that we provide you with information about our responsibilities under generally accepted <br />auditing standards and Government Auditing Standards, as well as certain information related to <br />the planned scope and timing of our audit. We have communicated such information in our <br />letter to you dated January 24, 2025. Professional standards also require that we communicate to <br />you the following information related to our audit. <br /> <br />Significant Audit Matters <br /> <br />Qualitative Aspects of Accounting Practices <br /> <br />Management is responsible for the selection and use of appropriate accounting policies. The <br />significant accounting policies used by the City are described in Note 1 to the financial <br />statements. No new accounting policies were adopted and the application of existing policies <br />was not changed during 2024, except that the City implemented Governmental Accounting <br />Standards Board Statement No. 101, Compensated Absences. The implementation of this <br />standard did not have a material effect on the financial statements. We noted no transactions <br />entered into by the City during the year for which there is a lack of authoritative guidance or <br />consensus. All significant transactions have been recognized in the financial statements in the <br />proper period. <br /> <br />Accounting estimates are an integral part of the financial statements prepared by management <br />and are based on management’s knowledge and experience about past and current events and <br />assumptions about future events. Certain accounting estimates are particularly sensitive because <br />of their significance to the financial statements and because of the possibility that future events <br />affecting them may differ significantly from those expected. <br /> <br />The most sensitive estimates affecting the financial statements are the estimates used to calculate <br />the net pension liability, the pension related deferred outflows and inflows of resources, and <br />pension expense. These estimates are based on actuarial studies. We evaluated the key factors <br />and assumptions used to develop the estimates in determining that they are reasonable in relation <br />to the financial statements taken as a whole. <br />Page 201 of 353