February 17,2017

[PETERSONSULLIVAN LLP LETTERHEAD]

REPORT OF INDEPENDENT AUDITORS

To the Shareholders and Board of Directors
Kavilco Incorporated
Kasaan,Alaska

In  planning  and  performing our audit of the financial statements  of  Kavilco
Incorporated  (the Company) as of and for the year ended December 31,  2016,  in
accordance  with  auditing standards generally accepted in the United  Sates  of
America,  we considered the Company's internal control over financial reporting,
including  control  activities  for safeguarding  securities,  as  a  basis  for
designing  our auditing procedures for the purpose of expressing our opinion  on
the  financial statements and to comply with the requirements of Form N-SAR, but
not  for  the  purpose  of  expressing an opinion on the  effectiveness  of  the
Company's  internal control over financial reporting. Accordingly we express  no
such opinion.

The  management  of the Company is responsible for establishing and  maintaining
effective  internal  control  over  financial  reporting.  In  fulfilling   this
responsibility, estimates and judgments by management are required to assess the
expected  benefits and related costs of controls. A company's  internal  control
over  financial reporting is a process designed to provide reasonable  assurance
regarding  the  reliability  of  financial  reporting  and  the  preparation  of
financial statements for external purposes in accordance with generally accepted
accounting  principles.  A company's internal control over  financial  reporting
includes  those  policies and procedures that (1) pertain to the maintenance  of
records   that,  in  reasonable  detail,  accurately  and  fairly  reflect   the
transactions  and  dispositions  of  the assets  of  the  company;  (2)  provide
reasonable  assurance  that transactions are recorded  as  necessary  to  permit
preparation  of  financial  statements in  accordance  with  generally  accepted
accounting  principles, and that receipts and expenditures of  the  company  are
being made only in accordance with authorizations of management and directors of
the  company and (3) provide reasonable assurance regarding prevention or timely
detection of unauthorized acquisition, use or disposition of a company's  assets
that could have a material effect on the financial statements.

Because  of its inherent limitations, internal control over financial  reporting
may not prevent or detect misstatements. Also, projections of any evaluation  of
effectiveness to future periods are subject to the risk that controls may become
inadequate  because of changes in conditions, or that the degree  of  compliance
with the policies or procedures may deteriorate.

A deficiency in internal control over financial reporting 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 material weakness  is  a  deficiency,  or
combination  of deficiencies in internal control over financial reporting,  such
that  there  is  a  reasonable possibility that a material misstatement  of  the
Company's   annual  or  interim  financial  statements  will  not  be  prevented
or detected on a timely basis.

Our consideration of the Company's internal control over financial reporting was
for  the  limited  purpose  described  in the  first  paragraph  and  would  not
necessarily disclose all deficiencies in internal control that might be material
weaknesses under standards established by auditing standards generally  accepted
in  the  United States of America. However, we noted no deficiencies in  Kavilco
Incorporated's internal control over such financial reporting and its operation,
including  controls  for  safeguarding securities, that  we  consider  to  be  a
material weakness as defined above as of December 31, 2016.

This report is intended solely for the information and use of management and the
Board  of  Directors  of  Kavilco Incorporated and the Securities  and  Exchange
Commission and is not intended to be and should not be used by anyone other than
these specified parties.


/S/Petersonsullivan LLP