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Board of Directors <br /> Colorado Water Conservation Board <br /> Denver, Colorado <br /> We have compiled the accompanying balance sheets of the Colorado Water Conservation Board, <br /> Severance Tax Trust Fund-Perpetual Base Account as of June 30,2001 and 2000 and the related <br /> statements of revenue, expenses and changes in retained earnings and schedules of cash sources <br /> and cash uses for the years then ended, in accordance with Statements on Standards for <br /> Accounting and Review Services issued by the American Institute of Certified Public Accountants. <br /> A compilation is limited to presenting in the form of financial statements information that is the <br /> representation of management. We have not audited or reviewed the accompanying financial <br /> statements and, accordingly, do not express an opinion or any other form of assurance on them. <br /> The financial statement of the Colorado Water Conservation Board, Severance Tax Trust Fund- <br /> Perpetual Base Account is intended to present the financial position of only that portion of the <br /> funds of the Colorado Water Conservation Board that is attributable to the transactions of the <br /> Colorado Water Conservation Board, Severance Tax Trust Fund-Perpetual Base Account. <br /> Management has elected to omit the statement of cash flows and all of the disclosures required by <br /> generally accepted accounting principles. If the omitted disclosures were included in the fmancial <br /> statements,they might influence the user's conclusions about the Fund's fmancial position,results <br /> of operations and cash flows. Accordingly,these financial statements are not designed for those <br /> who are not informed about such matters. <br /> August 23, 2001 <br />