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CITY OF LINO LAKES, MINNESOTA <br />TABLE OF CONTENTS <br />DECEMBER 31, 2006 <br />Page <br />Report on Internal Control over Financial Reporting <br />and on Compliance and Other Matters Based on an <br />Audit of Financial Statements Performed in Accordance <br />with Governmental Auditing Standards 1 -2 <br />•- Report on Minnesota Legal Compliance 3 <br />Other Required Auditor Communications 4 -6 <br />Management Letter 7 -11 <br />New Accounting and Reporting Standards 12 <br />— <br />New Auditing Standards 15 <br />