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JAMES MAISER

CERTIFIED PUBLIC ACCOUNTANT & CONSULTANT

44 West First Street, Waconia, MN 55387 Office: 952-442-4807 Fax: 952-442-6888

REPORT ON LEGAL COMPLIANCE

Board of Supervisors

Mille Lacs Soil and Water Conservation District

Milaca, Minnesota

I have audited the accompanying financial statements of the governmental activities, and

the General fund of the Mille Lacs Soil and Water Conservation District, Milaca,

Minnesota, as of and for the year ended December 31, 2006, which collectively

comprise the District's basic financial statements and have issued my report thereon

dated August 31, 2007.

My audit was made in accordance with auditing standards generally accepted in the

United States of America and provisions of the Minnesota Leqal Compliance Audit Guide

for Local Government, promulgated by the State Auditor pursuant to Minnesota Statutes

Sec. 6.65. Accordingly, the audit included such tests of the accounting records and such

other auditing procedures, as I considered necessary in the circumstances.

The Legal Compliance Audit Guide for Local Government covers five main categories of

compliance to be tested: contracting and bidding, deposits and investments, conflicts of

interest, public indebtedness, and claims and disbursements. My study included all of

the listed categories except public indebtness. The public indebtness category was not

tested because the District is not allowed to issue debt.

The results of my test indicate that for the items tested, the District complied with the

material terms and conditions of applicable legal provisions.

This report is intended solely for the information and use of the District and is not

intended to be, and should not be, used by anyone other than these specified parties.

ER

ertified Public Accountant and Consultant

August 31, 2007

Waconia, Minnesota

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