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Tautges Redpath, Ltd. Certified Public Accountants and Consultants Novernber 3, 2005 City of St. Anthony 3301 Silver Lake Road St.. Anthony, MN 55415 Wc. are pleased to confirm our understanding of the services we are to provide the City of St. Anthony, Minnesota for the years ending December 31, 2005 through 2007. The scope of services includes the following: We will audit the financial statements of the governmental activities, the business - type activities, each major fund, and the aggregate remaining fund information, which collectively con.p:se the entity's basic financial statements, of the City of St. Anthony, Minnesota as of and for the years ending December 31, 2005 through 2007. We will provide an "in -relation -to" opinion on the combining and individual fund financial Statements, supporting schedules and supplemental information except for that portion marked "unaudited". The document: will include the following, supplementary information required by generally accepted accounting principles that will be subjected to certain limited procedures, but will not be audited: o Management's discussion and analysis o Budgetary comparison schedules presented as RST The document will also include additional information that will not be subject to the auditing procedures applied in our audit of the financial statements, and for which our auditor's report will disclaim an opinion as follows: o Introductory section ® Report on Internal Control over Financial Reporting and on Compliance and Other Matters. State Legal Compliance Audit. Preparation of draft Animal Financial Report. (City to prepare introductory section and Management's Discussion and Analysis. The City and. LIRA will. be combined in one Annual Financial Report. w Preparation of Audit Management Letter. ® Preparation of Skate Auditors Reporting Form. 4810 White Bear Parkway White Bear Lake, Minnesota 55110 6514267000 651 426 5004 Fax 1303 South Frontage Road Suite 13 Hastings, Minnesota 55033 6514804990 651 426 5004 Fax I1L0 Tautges Redpath, Ltd, is a member of Im International, a word -wide organization of accounPing firms and business advisors. 689072.1 wwwAhtr.com W