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<br />Attachment III <br /> <br />To the Honorable Mayor and Members of City Council <br />of the City of Redwood City <br />Redwood City, California <br /> <br />In planning and performing our audit of the basic financial statements of the City of Redwood City <br />(City) for the year ended June 30, 2005, we considered the City's internal controls to plan our auditing <br />procedures for the purpose of expressing our opinion on the basic financial statements and not to <br />provide assurance on the internal controls. <br /> <br />However, during our audit, we noted certain matters involving the internal controls and other <br />operational matters that are presented for your consideration. This letter does not affect our report <br />dated October 20, 2005, on the financial statements of the City. We will review the status of these <br />comments during our next audit engagement. Our comments and recommendations, all of which have <br />been discussed with management, are intended to improve the internal controls or result in other <br />operating efficiencies. We will be pleased to discuss these comments in further detail at your <br />convenience, to perform any additional study of these matters, or to assist you in implementing the <br />recommendations. . <br /> <br />We would like to express our appreciation to the City's staff for their cooperation, assistance, and <br />support during this year's audit process. <br /> <br />This report is intended solely for the information and use of the City Council, management and others <br />within the City. <br /> <br />Caporicci & Larson <br />Certified Public Accountants <br />Oakland, California <br />