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ABDO <br />Via (i.e� SICK & <br />ME 1 lel W LLP <br />Certified Public Accountants & Consultants <br />INDEPENDENT AUDITOR'S REPORT ON MINNESOTA LEGAL COMPLIANCE <br />Honorable Mayor and City Council <br />City of Elk River, Minnesota <br />We have audited, in accordance with auditing standards generally accepted in the United States of America, the financial statements of <br />the governmental activities, the business -type activities, the discretely presented component unit, each major fund, and the aggregate <br />remaining fund information of the City of Elk River, Minnesota (the City), as of and for the year ended December 31, 2015, and the <br />related notes to the financial statements, and have issued our report thereon dated May 18, 2016. <br />The Minnesota Legal Compliance Audit Guide for Cities, promulgated by the State Auditor pursuant to Minnesota Statute §6.65, <br />contains seven categories of compliance to be tested: contracting and bidding, deposits and investments, conflicts of interest, public <br />indebtedness, claims and disbursements, miscellaneous provisions, and tax increment financing. Our audit considered all of the listed <br />categories. <br />In connection with our audit, nothing came to our attention that caused us to believe that the City failed to comply with the provisions <br />of the Minnesota Legal Compliance Audit Guide for Cities. However, our audit was not directed primarily toward obtaining <br />knowledge of such noncompliance. Accordingly, had we performed additional procedures, other matters may have come to our <br />attention regarding the City's noncompliance with the above referenced provisions. <br />This report is intended solely for the information and use of those charged with governance and management of the City and the State <br />Auditor and is not intended to be and should not be used by anyone other than these specified parties. <br />0L&&0ft4wjLLe <br />ABDO, EICK & MEYERS, LLP <br />Minneapolis, Minnesota <br />May 18, 2016 <br />5201 Eden Avenue, Suite 250 <br />Edina, MN 55436 -2- <br />952.835.9090 1 Fax 952.835.3261 <br />