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Tautges Redpath, Ltd. <br />Certified Public Accountants and Consultants <br />REPORT ON COMPLIANCE WITH MINNESOTA LEGAL <br />COMPLIANCE AUDIT GUIDE FOR LOCAL GOVERNMENTS <br />To the Honorable Mayor and <br />Members of the City Council <br />City of St. Anthony, Minnesota <br />We have audited the basic financial statements of the City of St. Anthony, Minnesota, as of and <br />for the year ended December 31, 2007, and have issued our report thereon dated <br />June 5, 2008. <br />We conducted our audit in accordance with auditing standards generally accepted in the United <br />States of America, and the provisions of the Minnesota Legal Compliance Audit Guide for Local <br />Government promulgated by the State Auditor pursuant to Minnesota Statutes Section 6.65. <br />Accordingly, the audit included such tests of the accounting records and such other auditing <br />procedures as we considered necessary in the circumstances. <br />The Minnesota Legal Compliance Audit Guide for Local Government covers seven main <br />categories of compliance to be tested: contracting and bidding, deposits and investments, <br />conflicts of interest, public indebtedness, claims and disbursements, miscellaneous provisions <br />and tax increment financing. Our study included all of the listed categories. <br />The results of our tests indicate that for the items tested, the City of St. Anthony, Minnesota <br />complied with the material terms and conditions of applicable legal provisions, except as <br />described in this report in finding 2007-9. <br />This report is intended solely for the information and use of the City of St. Anthony, Minnesota's <br />City Council and management and is not intended to be, and should not be, used by anyone other <br />than these specified parties. <br />Are % &+., 0*0/. <br />HLB TAUTGES REDPATH, LTD. <br />White Bear Lake, Minnesota <br />June 5, 2008 <br />4810 White Bear Parkway White Bear Lake, Minnesota 55110 I 651 426 7000 651 426 5004 Fax I www.hlbtr.com <br />HLB Toutges Redpath. Ltdrs a member of M International, a world-wide organization of accounting firms and business advisors I Equal Opportunely Employer <br />