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City of St. Anthony, Minnesota <br />Communication With Those Charged With Governance <br />June 5, 2008 <br />Page 3 <br />Management Representations <br />We have requested certain representations from management that are included in the <br />management representation letter dated June 5, 2008. <br />Management Consultations with Other Independent Accountants <br />In some cases, management may decide to consult with other accountants about auditing and <br />accounting matters, similar to obtaining a "second opinion" on certain situations_ if a <br />consultation involves application of an accounting principle to the government unit's financial <br />statements or a determination of the type of auditor's opinion that may be expressed on those <br />statements, our professional standards require the consulting accountant to check with us to <br />determine that the consultant has all the relevant facts. To our knowledge, there were no such <br />consultations with other accountants. <br />Other Audit Findings or Issues <br />We generally discuss a variety of matters, including the application of accounting principles <br />and auditing standards, with management each year prior to retention as the City's auditors. <br />Idowever, these discussions occurred in the normal course of our professional relationship and <br />our responses were not a condition to our retention. <br />During the course of our audit, we noted that the City is making some debt payments out of <br />capital project funds. Generally accepted accounting principles (GAAP) dictate that debt <br />payments should be made out of a debt service fund, which is defined as a "Governmental fund <br />type used to account for the accumulation of resources for, and the payment of, general long- <br />term debt principal and interest." 'hhe City's bard issuance documents also dictate that such a <br />fund be used for the repayment of bonds. We recommend that the City establish a debt service <br />fund for all debt issuances. <br />This report is intended solely for the information and use of the City of St. Anthony, <br />Minnesota's City Council and management and is not intended to be, and should not be, used by <br />anyone other than these specified parties. <br />MY 7A� A*oi / Al. <br />1-11,13 TAUTGLS RI DPATIJ, LTD. <br />White Bear Lake, Minnesota <br />June 5, 2008 <br />