REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE

AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN

ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

JAMES MAISER

CERTIFIED PUBLIC ACCOUNTANT & CONSULTANT

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

Board of Supervisors

Mille Lacs Soil and Water Conservation District

Milaca, Minnesota

In planning and performing my audit of the 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, in accordance with auditing standards generally accepted in the

United States of America, I considered the District's internal control over financial reporting (internal

control) as a basis for designing my auditing procedures for the purpose of expressing my opinion on

the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the

District's internal control. Accordingly, I do not express an opinion on the effectiveness of the District's

internal control.

Internal Control

A control deficiency exists when the design or operation of a control does not allow management or

employees, in the normal course of performing their assigned functions, to prevent or detect

misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of

control deficiencies, that adversely affects the entity's ability to initiate, authorize, record, process, or

report financial data reliably in accordance with generally accepted accounting principles such that

there is more than a remote likelihood that a misstatement of the entity's financial statements that is

more than inconsequential will not be prevented or detected by the entity's internal control.

A material weakness is a significant deficiency, or combination of significant deficiencies, that results

in more than a remote likelihood that a material misstatement of the financial statements will not be

prevented or detected by the entity's internal control.

My consideration of internal control was for the limited purpose described in the first paragraph and

would not necessarily identify all deficiencies in internal control that might be significant deficiencies or

material weaknesses. I did not identify any deficiencies in internal control that I consider to be material

weaknesses, as defined above.

Compliance and Other Matters

As part of obtaining reasonable assurance about whether Mille Lacs Soil and Water Conservation

District's financial statements are free of material misstatement, I performed tests of its compliance

with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with

which could have a direct and material effect on the determination of financial statement amounts.

However, providing an opinion on compliance with those provisions was not an objective of my audit

and, accordingly, I do not express such an opinion. The results of my tests disclosed no instances of

noncompliance or other matters that are required to be reported under Government Auditing

Standards.

This communication is intended solely for the information and use of management and others within

the organization and the Board of Supervisors, and is not intended to be and should not be used by

anyone other than these specified parties.

MAISER

ftftied Public Accountant and Consultant

August 31, 2007

Waconia, Minnesota

17