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C.erUfted Public Accountants 13100 Wortlram Center Drive Sidle 235 III CongressAveurte Houston, Texas 7706556I0 51tite 400 (713) 462-0341 Austin, Texas 78701 Pax (713) 462-2708 (512) 610-2204 1;-Ivlail: rnQs6�rtigsbp le conr guzuraas s 1e,rnn: 2012 Board of Directors La Porte Redevelopment Authority City of La Porte, Texas In planning and performing our audit of the financial statements of the La Porte Redevelopment Authority (the "Authority") as of and for the year ended September 30, 2012, in accordance with auditing standards generally accepted in the United. States of America, we considered the Authority's internal control over financial reporting (';internal control') as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Authority's internal control. Accordingly, we do not express an opinion on the effectiveness of the Authority's internal control. Statement of Auditing Standards No. 115 ("SAS No. 115"), effective for audits of financial statements for periods ending on or after December 15, 2009, set about to identify and define deficiencies in internal control that might be significant deficiencies or material weaknesses. SAS No. 115 requires that significant deficiencies or material weaknesses be communicated to management in writing. Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be significant deficiencies or material weaknesses and therefore, there can be no assurance that all deficiencies, significant deficiencies, or material weaknesses have been identified. A deficiency in internal control 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 and correct misstatements of the Authority's financial statements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Last year, and again this year, we observed the following deficiencies in the Authority's internal control that we consider to be material weaknesses. Member of American Institute afCertifiedPubllc Accountants Texas Society of Cerl$ed Public Accountants