Nuveen Large Cap Select Fund (FLRYX) N-CSR Certified annual shareholder report (management investment company)

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-05309

First American Investment Funds, Inc.

(Exact name of registrant as specified in charter)

800 Nicollet Mall, Minneapolis, MN
(Address of principal executive offices) 55402
(Zip code)

Charles D. Gariboldi, Jr., 800 Nicollet Mall, Minneapolis, MN 55402
(Name and address of agent for service)

Registrant’s telephone number, including area code:       800-677-3863

Date of fiscal period end:       June 30

Date of reporting period:       June 30, 2006

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. Section 3507.

Item 1. Report to Shareholders

Table of Contents

Message to Shareholders	1
Report of Independent Registered Public Accounting Firm	44
Schedule of Investments	45
Statements of Assets and Liabilities	104
Statements of Operations	106
Statements of Changes in Net Assets	112
Financial Highlights	118
Notes to Financial Statements	128
Notice to Shareholders	138
Certification
Certification

Income from tax-exempt funds may be subject to state and local taxes and a portion of income may be subject to federal income tax, including the alternative minimum tax. Capital gains distributions, if any, will be subject to tax.

Mutual fund investing involves risk; principal loss is possible.

NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE

Message to SHAREHOLDERS August 14, 2006

Dear Shareholders:

We invite you to take a few minutes to review the results of the funds’ most recent fiscal period. Because the funds have changed their fiscal year-end from September 30 to June 30, this report covers the nine-month time period from October 1, 2005, through June 30, 2006.

This report includes comparative performance graphs and tables, portfolio commentaries, complete listings of portfolio holdings, and additional fund information. We hope you will find this helpful in monitoring your investment portfolio.

Also, through our website, firstamericanfunds.com, we provide quarterly performance fact sheets on all First American Funds, the economic outlook as viewed by our senior investment officers, and other information about fund investments and portfolio strategies.

Please contact your financial professional if you have questions about First American Funds or contact First American Investor Services at 800.677.FUND.

We appreciate your investment with First American Funds and look forward to serving your financial needs in the future.

Sincerely,

Virginia L. Stringer	Thomas S. Schreier, Jr.
Chairperson of the Board First American Investment Funds, Inc.	President First American Investment Funds, Inc.

First American Funds Annual Report 2006      1

Arizona Tax Free fund

Investment Objective: maximum current income that is exempt from both federal income tax and Arizona state income tax to the extent consistent with prudent investment risk

How did the fund perform for the nine-month fiscal period ended June 30, 2006?

The First American Arizona Tax Free Fund (the “fund”), Class Y shares, returned 0.92% for the fiscal period ended June 30, 2006 (Class A shares returned 0.73%, without taking the sales charge into account, for the same period). By comparison, the fund’s benchmark, the Lehman Municipal Bond Index*, returned 1.01%. Performance for the fund’s peer group, the Lipper Arizona Municipal Debt Funds Category Average, was 1.03%.

What were the general municipal market conditions during the fiscal period?

Yields in the municipal market rose across the entire range of bond maturities during the fiscal period. The shape of the yield curve flattened significantly as short-term interest rates rose much more than long-term rates. The combination of rising rates and a flattening yield curve produced small positive total returns. Coupon income was sufficient to offset the corresponding decline in bond prices. Intermediate-maturity bonds were the poorest performers in this environment, while bonds with very short or very long maturities generally produced the best returns.

Lower-quality, high-yield securities had another good period. The additional yield spread required over high-grade bonds for such securities generally narrowed over the course of the period, as demand from high-yield investors continued to outpace supply.

How did market conditions and investment strategies affect the fund’s performance?

An overweight in bonds with 15-year and longer maturities allowed the fund to benefit from the flattening municipal yield curve. This part of the municipal curve was also supported by heightened demand, driven by an increased number of tender-option bond programs (trusts that routinely purchase large quantities of bonds for both trading and investment purposes) and yield-oriented investors. Another source of added value was the fund’s overweight in the hospital/healthcare sector, which significantly outperformed most other revenue sectors and all general obligation sectors.

The fund’s exposure to higher-quality, intermediate maturity bonds brought the weakest performance, since this group was negatively affected by the flattening yield curve. As a relatively new member in its peer group, the fund had less time to accumulate higher-yielding, lower-rated investment-grade, non-rated, or noninvestment-grade bonds. The fund’s limited exposure to these issues also detracted from performance. The fund’s position in pre-refunded bonds that mature in four to eight years underperformed the general obligation and revenue sectors.

What strategic moves were made by the fund and why?

Because of the still positive, though flattening, slope of the yield curve and our moderate interest-rate outlook, the fund’s duration was anywhere from neutral to slightly long relative to its Lehman benchmark most of the fiscal period. The new issue supply for Arizona was down by 32% for the first half of 2006, making it more difficult to augment the fund’s position in lower-quality in-state bonds. To counter this lack of new supply, the fund selectively added out-of-state higher yielding securities. The out-of-state portion of the fund remained very limited.

* Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects.

Portfolio Allocation as of June 30, 2006¹  (% of net assets)

Revenue Bonds3	76.4	%
General Obligations3	16.0
Certificates of Participation3	5.3
Short-Term Investments	1.4
Other Assets and Liabilities, Net	0.9
	100.0	%

Credit Quality Distribution as of June 30, 2006²  (% of market value)

AAA	39.8	%
AA	16.7
A	14.8
BBB	19.6
BB	1.0
Non-Rated	8.1
	100.0	%

1	Portfolio allocations are subject to change and are not recommendations to buy or sell any security.
2	Individual security ratings are based on information from Moody’s Investors Service, Standard & Poor’s, and/or Fitch. In the case of split ratings, the middle rating is used. If ratings are provided by only two agencies, the lower rating is used. If only one rating agency provides a rating, that rating is used.
3	These sectors may include bonds that are pre-refunded or escrowed to maturity issues; see the fund’s Notes to Schedule of Investments. As of June 30, 2006, 13.7% of the fund’s net assets were pre-refunded and escrowed to maturity issues.

2      First American Funds Annual Report 2006

Arizona Tax Free fund continued

Annual Performance¹  as of June 30, 2006

	Nine-						Since Inception
	Month
	Period*		1 year		5 years		2/1/2000
Average annual return with sales charge (POP)
Class A		(3.58)%		(3.72)%		4.02%		5.60%
Class C		(0.55)%		(0.84)%	��	4.51%		5.90%
Average annual return without sales charge (NAV)
Class A		0.73%		0.53%		4.92%		6.32%
Class C		0.42%		0.12%		4.51%		5.90%
Class Y		0.92%		0.69%		5.18%		6.57%
Lehman Municipal Bond Index2		1.01%		0.89%		5.05%		6.26%

Value of $10,000 Investment^1,3  as of June 30, 2006

Arizona Tax Free Fund, Class A (NAV)		$	14,808
Arizona Tax Free Fund, Class A (POP)		$	14,184
Arizona Tax Free Fund, Class Y		$	15,039
Lehman Municipal Bond Index2		$	14,762

Class A

Class Y

The chart above illustrates the total value of an assumed $10,000 investment in the fund’s Class A and Class Y shares (from 2/1/2000 to 6/30/2006) as compared to the Lehman Municipal Bond Index².

The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.

*

Total returns have not been annualized.

¹  Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Investment performance reflects fee waivers that are or were in effect. In the absence of such fee waivers, total returns would be reduced. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available.

A portion of the fund’s income may be subject to state and/or federal income tax, including the alternative minimum tax. Capital gains distributions, if any, will be subject to tax.

Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV.

Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 4.25% for Class A shares and the maximum contingent deferred sales charge (“CDSC”) for Class C shares for the relevant period. Maximum CDSC is 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV.

Investments in debt securities typically decrease in value when interest rates rise. The risk is usually greater for longer-term debt securities.

2	An unmanaged index comprised of fixed-rate, investment-grade tax-exempt bonds with remaining maturities of one year or more.
3	Performance for Class C shares is not presented. Performance for this class is lower due to higher expenses.

First American Funds Annual Report 2006      3

Arizona Tax Free fund continued

Expense Example

As a shareholder of the Arizona Tax Free Fund (the “fund”), you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments; and (2) ongoing costs, including investment advisory fees, distribution and/or service (12b-1) fees, and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from January 1, 2006, to June 30, 2006.

Actual Expenses

For each class, the first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

For each class, the second line of the table below provides information about hypothetical account values and hypothetical expenses based on the fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line of the table for each class is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

Expense Examples

					Expenses Paid During
	Beginning Account		Ending Account		Period1 (1/01/06 to
	Value (1/01/06)		Value (6/30/06)		6/30/06)
Class A Actual2	$	1,000.00	$	999.40	$	3.72
Class A Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.08	$	3.76
Class C Actual2	$	1,000.00	$	997.40	$	5.70
Class C Hypothetical (5% return before expenses)	$	1,000.00	$	1,019.09	$	5.76
Class Y Actual2	$	1,000.00	$	999.80	$	2.48
Class Y Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.32	$	2.51

1	Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.75%, 1.15%, and 0.50% for Class A, Class C, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period).
2	Based on the actual returns for the six-month period ended June 30, 2006 of -0.06%, -0.26%, and -0.02% for Class A, Class C, and Class Y, respectively.

4      First American Funds Annual Report 2006

California Intermediate Tax Free fund

Investment Objective: current income that is exempt from both federal income tax and California state income tax to the extent consistent with preservation of capital

How did the fund perform for the nine-month fiscal period ended June 30, 2006?

The First American California Intermediate Tax Free Fund (the “fund”), Class Y shares, returned 0.88% for the fiscal period ended June 30, 2006 (Class A shares returned 0.78%, without taking the sales charge into account, for the same period). By comparison, the fund’s benchmark, the Lehman 7-Year Municipal Bond Index*, returned 0.56%. Performance for the fund’s peer group, the Lipper California Intermediate Municipal Debt Funds Category Average, was 0.47%.

What were the general municipal market conditions during the fiscal period?

Yields in the municipal market rose across the entire range of bond maturities during the fiscal period. The shape of the yield curve flattened significantly as short-term interest rates rose much more than long-term rates. The combination of rising rates and a flattening yield curve produced small positive total returns. Coupon income was sufficient to offset the corresponding decline in bond prices. Intermediate-maturity bonds were the poorest performers in this environment, while bonds with very short or very long maturities generally produced the best returns.

Lower-quality, high-yield securities had another good period. The additional yield spread required over high-grade bonds for such securities generally narrowed over the course of the period, as demand from high-yield investors continued to outpace supply.

How did market conditions and investment strategies affect the fund’s performance?

While the fund’s holdings were arrayed fairly evenly across the range of maturities, the portion of the portfolio extending 15 years or more (somewhat longer than the normal intermediate-maturity range) helped performance because of the flattening municipal yield curve. In terms of quality, the fund’s holdings in lower-rated securities also proved beneficial, both because of their higher yields and because a general narrowing in yield spreads vs. higher-quality municipal bonds favorably impacted the relative values of these securities. The fund took advantage of narrowing yield spreads by selling a number of these securities during the period.

Though beneficial to the performance of longer-maturity bonds, the flattening of the yield curve generally weakened the relative performance of higher-quality, intermediate-maturity bonds. Despite a shorter duration, the greater rise in intermediate-term interest rates caused intermediate-maturity bonds to underperform longer-maturity bonds.

What strategic moves were made by the fund and why?

Because of the still positive, though flattening, slope of the yield curve and our moderate interest-rate outlook, the duration of the fund was moderately longer than its Lehman benchmark most of the fiscal period. In anticipation of an approaching end to Fed tightening and a resulting steepening of the yield curve, we have begun to de-emphasize the weighting in shorter and longer maturities in favor of an increased intermediate maturity weighting.

* Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects.

Portfolio Allocation as of June 30, 2006¹  (% of net assets)

Revenue Bonds3	68.9	%
General Obligations3	19.5
Certificates of Participation3	7.6
Short-Term Investment	2.2
Other Assets and Liabilities, Net	1.8
	100.0	%

Credit Quality Distribution as of June 30, 2006²  (% of market value)

AAA	53.0	%
AA	7.1
A	18.2
BBB	19.2
Non-Rated	2.5
	100.0	%

1	Portfolio allocations are subject to change and are not recommendations to buy or sell any security.
2	Individual security ratings are based on information from Moody’s Investors Service, Standard & Poor’s, and/or Fitch. In the case of split ratings, the middle rating is used. If ratings are provided by only two agencies, the lower rating is used. If only one rating agency provides a rating, that rating is used.
3	These sectors may include bonds that are pre-refunded or escrowed to maturity issues; see the fund’s Notes to Schedule of Investments. As of June 30, 2006, 8.8% of the fund’s net assets were pre-refunded and escrowed to maturity issues.

First American Funds Annual Report 2006      5

California Intermediate Tax Free fund continued

Annual Performance¹  as of June 30, 2006

	Nine-						Since
	Month						Inception
	Period*		1 year		5 years		8/8/1997
Average annual return with sales charge (POP)
Class A		(1.51)%		(1.88)%		3.52%		4.18%
Average annual return without sales charge (NAV)
Class A		0.78%		0.36%		4.00%		4.45%
Class Y		0.88%		0.51%		4.16%		4.55%
Lehman 7-Year Municipal Bond Index2		0.56%		0.15%		4.45%		4.85%

Value of a $10,000 Investment¹  as of June 30, 2006

California Intermediate Tax Free Fund, Class A (NAV)		$	14,724
California Intermediate Tax Free Fund, Class A (POP)		$	14,392
California Intermediate Tax Free Fund, Class Y		$	14,851
Lehman 7-Year Municipal Bond Index2		$	15,240

Class A

Class Y

The chart above illustrates the total value of an assumed $10,000 investment in the fund’s Class A and Class Y shares (from 8/8/1997 to 6/30/2006) as compared to the Lehman 7-Year Municipal Bond Index².

The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.

*  Total returns have not been annualized.

¹  Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Investment performance reflects fee waivers that are or were in effect. In the absence of such fee waivers, total returns would be reduced. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available.

A portion of the fund’s income may be subject to state and/or federal income tax, including the alternative minimum tax. Capital gains distributions, if any, will be subject to tax.

Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV.

Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 2.25% for Class A shares. Total returns assume reinvestment of all distributions at NAV.

Investments in debt securities typically decrease in value when interest rates rise. The risk is usually greater for longer-term debt securities.

²  An unmanaged index comprised of fixed-rate, investment-grade tax-exempt bonds with remaining maturities between six and eight years.

6      First American Funds Annual Report 2006

California Intermediate Tax Free fund continued

Expense Example

As a shareholder of the California Intermediate Tax Free Fund (the “fund”), you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments; and (2) ongoing costs, including investment advisory fees, distribution and/or service (12b-1) fees, and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from January 1, 2006, to June 30, 2006.

Actual Expenses

For each class, the first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

For each class, the second line of the table below provides information about hypothetical account values and hypothetical expenses based on the fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line of the table for each class is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

Expense Examples

					Expenses Paid During
	Beginning Account		Ending Account		Period1(1/01/06 to
	Value (1/01/06)		Value (6/30/06)		6/30/06)
Class A Actual2	$	1,000.00	$	1,000.60	$	4.22
Class A Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.58	$	4.26
Class Y Actual2	$	1,000.00	$	1,001.40	$	3.47
Class Y Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.32	$	3.51

1	Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.85% and 0.70% for Class A and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period).
2	Based on the actual returns for the six-month period ended June 30, 2006 of 0.06% and 0.14% for Class A and Class Y, respectively.

First American Funds Annual Report 2006      7

California Tax Free fund

Investment Objective: maximum current income that is exempt from both federal income tax and California state income tax to the extent consistent with prudent investment risk

How did the fund perform for the nine-month fiscal period ended June 30, 2006?

The First American California Tax Free Fund (the “fund”), Class Y shares, returned 0.82% for the fiscal period ended June 30, 2006 (Class A shares returned 0.63%, without taking the sales charge into account, for the same period). By comparison, the fund’s benchmark, the Lehman Municipal Bond Index*, returned 1.01%. Performance for the fund’s peer group, the Lipper California Municipal Debt Funds Category Average, was 0.88%.

What were the general municipal market conditions during the fiscal period?

Yields in the municipal market rose across the entire range of bond maturities during the fiscal period. The shape of the yield curve flattened significantly as short-term interest rates rose much more than long-term rates. The combination of rising rates and a flattening yield curve produced small positive total returns. Coupon income was sufficient to offset the corresponding decline in bond prices. Intermediate-maturity bonds were the poorest performers in this environment, while bonds with very short or very long maturities generally produced the best returns.

Lower-quality, high-yield securities had another good period. The additional yield spread required over high-grade bonds for such securities generally narrowed over the course of the period, as demand from high-yield investors continued to outpace supply.

How did market conditions and investment strategies affect the fund’s performance?

Due to the flattening of the municipal yield curve, the fund’s holdings with very short and very long maturities generally performed well this fiscal period, while high-quality, intermediate-maturity bonds generally showed the weakest performance. A more pronounced barbell portfolio structure – with reduced weighting in intermediate-term bonds – would have produced better results, especially if more emphasis had been placed on very short bonds and a higher allocation made at the long end of the curve (22 years or more). Despite a shorter duration, the greater rise in yields for intermediate maturities caused them to underperform longer-maturity bonds.

Lower-rated, higher-yielding bonds enjoyed strong performance. Generally, allocations to lower-rated securities benefited the fund, both because of their higher yields and because a general narrowing in yield spreads vs. higher-quality municipal bonds favorably impacted the relative values of these securities. The fund took advantage of narrowing yield spreads by selling a number of these securities during the period.

Although the fund holds a variety of lower-rated securities, greater exposure to high-yield bonds, especially those with longer maturities, would also have helped over the past year due to the continued narrowing of yield spreads, which helped the performance of lower-rated bonds.

What strategic moves were made by the fund and why?

Because of the still positive, though flattening, slope of the yield curve and our moderate interest-rate outlook, throughout the fiscal period, the duration of the fund ranged from neutral to moderately long relative to the Lehman benchmark. In view of the flattening yield curve, we increased the weighting of longer maturity bonds during the period. We also slightly increased the fund’s position in higher-yielding, lower-quality bonds.

* Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects.

Portfolio Allocation as of June 30, 2006¹  (% of net assets)

Revenue Bonds3	76.1	%
General Obligations3	16.8
Certificates of Participation3	3.5
Short-Term Investments	2.8
Other Assets and Liabilities, Net	0.8
	100.0	%

Credit Quality Distribution as of June 30, 2006²  (% of market value)

AAA	49.7	%
AA	13.2
A	14.7
BBB	18.6
Non-Rated	3.8
	100.0	%

1	Portfolio allocations are subject to change and are not recommendations to buy or sell any security.
2	Individual security ratings are based on information from Moody’s Investors Service, Standard & Poor’s, and/or Fitch. In the case of split ratings, the middle rating is used. If ratings are provided by only two agencies, the lower rating is used. If only one rating agency provides a rating, that rating is used.
3	These sectors may include bonds that are pre-refunded or escrowed to maturity issues; see the fund’s Notes to Schedule of Investments. As of June 30, 2006, 13.6% of the fund’s net assets were pre-refunded and escrowed to maturity issues.

8      First American Funds Annual Report 2006

California Tax Free fund continued

Annual Performance¹  as of June 30, 2006

	Nine-						Since
	Month						Inception
	Period*		1 year		5 years		2/1/2000
Average annual return with sales charge (POP)
Class A		(3.66)%		(3.81)%		4.05%		5.63%
Class C		(0.64)%		(0.92)%		4.53%		5.95%
Average annual return without sales charge (NAV)
Class A		0.63%		0.42%		4.96%		6.34%
Class C		0.33%		0.05%		4.53%		5.95%
Class Y		0.82%		0.77%		5.22%		6.61%
Lehman Municipal Bond Index2		1.01%		0.89%		5.05%		6.26%

Value of a $10,000 Investment^{1, 3}  as of June 30, 2006

California Tax Free Fund, Class A (NAV)		$	14,833
California Tax Free Fund, Class A (POP)		$	14,208
California Tax Free Fund, Class Y		$	15,078
Lehman Municipal Bond Index2		$	14,762

Class A

Class Y

The chart above illustrates the total value of an assumed $10,000 investment in the fund’s Class A and Class Y shares (from 2/1/2000 to 6/30/2006) as compared to the Lehman Municipal Bond Index².

The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.

*  Total returns have not been annualized.

¹  Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Investment performance reflects fee waivers that are or were in effect. In the absence of such fee waivers, total returns would be reduced. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available.

A portion of the fund’s income may be subject to state and/or federal income tax, including the alternative minimum tax. Capital gains distributions, if any, will be subject to tax.

Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV.

Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 4.25% for Class A shares and the maximum contingent deferred sales charge (“CDSC”) for Class C shares for the relevant period. Maximum CDSC is 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV.

Investments in debt securities typically decrease in value when interest rates rise. The risk is usually greater for longer-term debt securities.

2	An unmanaged index comprised of fixed-rate, investment-grade tax-exempt bonds with remaining maturities of one year or more.
3	Performance for Class C shares is not presented. Performance for this class is lower due to higher expenses.

First American Funds Annual Report 2006      9

California Tax Free fund continued

Expense Example

As a shareholder of the California Tax Free Fund (the “fund”), you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments; and (2) ongoing costs, including investment advisory fees, distribution and/or service (12b-1) fees, and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from January 1, 2006, to June 30, 2006.

Actual Expenses

For each class, the first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

For each class, the second line of the table below provides information about hypothetical account values and hypothetical expenses based on the fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line of the table for each class is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

Expense Examples

					Expenses Paid During
	Beginning Account		Ending Account		Period1 (1/01/06) to
	Value (1/01/06)		Value (6/30/06)		6/30/06)
Class A Actual2	$	1,000.00	$	998.50	$	3.72
Class A Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.08	$	3.76
Class C Actual2	$	1,000.00	$	996.50	$	5.69
Class C Hypothetical (5% return before expenses)	$	1,000.00	$	1,019.09	$	5.76
Class Y Actual2	$	1,000.00	$	999.80	$	2.48
Class Y Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.32	$	2.51

1	Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.75%, 1.15%, and 0.50% for Class A, Class C, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period).
2	Based on the actual returns for the six-month period ended June 30, 2006 of -0.15%, -0.35%, and -0.02% for Class A, Class C, and Class Y, respectively.

10      First American Funds Annual Report 2006

Colorado Intermediate Tax Free fund

Investment Objective: current income that is exempt from both federal income tax and Colorado state income tax to the extent consistent with preservation of capital

How did the fund perform for the nine-month fiscal period ended June 30, 2006?

The First American Colorado Intermediate Tax Free Fund (the “fund”), Class Y shares, returned 0.49% for the fiscal period ended June 30, 2006 (Class A shares returned 0.37%, without taking the sales charge into account, for the same period). By comparison, the fund’s benchmark, the Lehman 7-Year Municipal Bond Index*, returned 0.56%. Performance for the fund’s peer group, the Lipper Other States Intermediate Municipal Debt Funds Category Average, was 0.12%.

What were the general municipal market conditions during the fiscal period?

Yields in the municipal market rose across the entire range of bond maturities during the fiscal period. The shape of the yield curve flattened significantly as short-term interest rates rose much more than long-term rates. The combination of rising rates and a flattening yield curve produced small positive total returns. Coupon income was sufficient to offset the corresponding decline in bond prices. Intermediate-maturity bonds were the poorest performers in this environment, while bonds with very short or very long maturities generally produced the best returns.

Lower-quality, high-yield securities had another good period. The additional yield spread required over high-grade bonds for such securities generally narrowed over the course of the period, as demand from high-yield investors continued to outpace supply.

How did market conditions and investment strategies affect the fund’s performance?

While the fund’s holdings were arrayed fairly evenly across the range of maturities, the portion of the portfolio extending 15 years or more (somewhat longer than the normal intermediate-maturity range) helped performance because of the flattening municipal yield curve. In terms of quality, the fund’s holdings in lower-rated securities also proved beneficial, both because of their higher yields and because a general narrowing in yield spreads vs. higher-quality municipal bonds favorably impacted the relative values of these securities. The fund took advantage of narrowing yield spreads by selling a number of these securities during the period.

Though beneficial to the performance of longer-maturity bonds, the flattening of the yield curve generally weakened the relative performance of higher-quality, intermediate-maturity bonds. Despite a shorter duration, the greater rise in intermediate-term interest rates caused intermediate-maturity bonds to underperform longer-maturity bonds.

What strategic moves were made by the fund and why?

Because of the still positive, though flattening, slope of the yield curve and our moderate interest-rate outlook, the duration of the fund was moderately longer than its Lehman benchmark most of the fiscal period. In anticipation of an approaching end to Fed tightening and a resulting steepening of the yield curve, we have begun to de-emphasize the weighting in shorter and longer maturities in favor of an increased intermediate-maturity (five- to ten-year range) weighting. During the fiscal period, the fund was able to increase its allocation to higher-yielding A-rated and BBB-rated securities.

* Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects.

Portfolio Allocation as of June 30, 2006¹  (% of net assets)

Revenue Bonds3	70.4	%
General Obligations3	20.6
Certificates of Participation3	7.5
Short-Term Investment	1.6
Other Assets and Liabilities, Net	(0.1	)
	100.0	%

Credit Quality Distribution as of June 30, 2006²  (% of market value)

AAA	47.4	%
AA	16.6
A	11.9
BBB	17.3
BB	0.8
Non-Rated	6.0
	100.0	%

1	Portfolio allocations are subject to change and are not recommendations to buy or sell any security.
2	Individual security ratings are based on information from Moody’s Investors Service, Standard & Poor’s, and/or Fitch. In the case of split ratings, the middle rating is used. If ratings are provided by only two agencies, the lower rating is used. If only one rating agency provides a rating, that rating is used.
3	These sectors may include bonds that are pre-refunded or escrowed to maturity issues; see the fund’s Notes to Schedule of Investments. As of June 30, 2006, 9.0% of the fund’s net assets were pre-refunded and escrowed to maturity issues.

First American Funds Annual Report 2006      11

Colorado Intermediate Tax Free fund continued

Annual Performance¹  as of June 30, 2006

	Nine-
	Month
	Period*		1 year		5 years		10 years
Average annual return with sales charge (POP)
Class A		(1.91)%		(2.32)%		3.45%		4.34%
Average annual return without sales charge (NAV)
Class A		0.37%		(0.08)%		3.92%		4.58%
Class Y		0.49%		0.07%		4.07%		4.64%
Lehman 7-Year Municipal Bond Index2		0.56%		0.15%		4.45%		5.26%

Value of $10,000 Investment¹  as of June 30, 2006

Colorado Intermediate Tax Free Fund, Class A (NAV)		$	15,397
Colorado Intermediate Tax Free Fund, Class A (POP)		$	15,051
Colorado Intermediate Tax Free Fund, Class Y		$	15,489
Lehman 7-Year Municipal Bond Index2		$	16,395

Class A

Class Y

The chart above illustrates the total value of an assumed $10,000 investment in the fund’s Class A and Class Y shares (from 9/30/1996 to 6/30/2006) as compared to the Lehman 7-Year Municipal Bond Index².

The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.

*  Total returns have not been annualized.

¹  Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Investment performance reflects fee waivers that are or were in effect. In the absence of such fee waivers, total returns would be reduced. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available.

A portion of the fund’s income may be subject to state and/or federal income tax, including the alternative minimum tax. Capital gains distributions, if any, will be subject to tax.

Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV.

Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 2.25% for Class A shares. Total returns assume reinvestment of all distributions at NAV.

Investments in debt securities typically decrease in value when interest rates rise. The risk is usually greater for longer-term debt securities.

²  An unmanaged index comprised of fixed-rate, investment-grade tax-exempt bonds with remaining maturities between six and eight years.

12      First American Funds Annual Report 2006

Colorado Intermediate Tax Free fund continued

Expense Example

As a shareholder of the Colorado Intermediate Tax Free Fund (the “fund”), you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments; and (2) ongoing costs, including investment advisory fees, distribution and/or service (12b-1) fees, and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from January 1, 2006, to June 30, 2006.

Actual Expenses

For each class, the first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

For each class, the second line of the table below provides information about hypothetical account values and hypothetical expenses based on the fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line of the table for each class is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

Expense Examples

					Expenses Paid During
	Beginning Account		Ending Account		Period1 (1/01/06 to
	Value (1/01/06)		Value (6/30/06)		6/30/06)
Class A Actual2	$	1,000.00	$	997.50	$	4.21
Class A Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.58	$	4.26
Class Y Actual2	$	1,000.00	$	999.20	$	3.47
Class Y Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.32	$	3.51

1	Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.85% and 0.70% for Class A and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period).
2	Based on the actual returns for the six-month period ended June 30, 2006 of -0.25% and -0.08% for Class A and Class Y, respectively.

First American Funds Annual Report 2006      13

Colorado Tax Free fund

Investment Objective: maximum current income that is exempt from both federal income tax and Colorado state income tax to the extent consistent with prudent investment risk

How did the fund perform for the nine-month fiscal period ended June 30, 2006?

The First American Colorado Tax Free Fund (the “fund”), Class Y shares, returned 0.96% for the fiscal period ended June 30, 2006 (Class A shares returned 0.77%, without taking the sales charge into account, for the same period). By comparison, the fund’s benchmark, the Lehman Municipal Bond Index*, returned 1.01%. Performance for the fund’s peer group, the Lipper Colorado Municipal Debt Funds Category, was 0.78%.

What were the general municipal market conditions during the fiscal period?

Yields in the municipal market rose across the entire range of bond maturities during the fiscal period. The shape of the yield curve flattened significantly as short-term interest rates rose much more than long-term rates. The combination of rising rates and a flattening yield curve produced small positive total returns. Coupon income was sufficient to offset the corresponding decline in bond prices. Intermediate-maturity bonds were the poorest performers in this environment, while bonds with very short or very long maturities generally produced the best returns.

Lower-quality, high-yield securities had another good period. The additional yield spread required over high-grade bonds for such securities generally narrowed over the course of the period, as demand from high-yield investors continued to outpace supply.

How did market conditions and investment strategies affect the fund’s performance?

An overweight in bonds with 15-year and longer maturities allowed the fund to benefit from the flattening municipal yield curve. This part of the municipal curve was also supported by heightened demand, driven by an increased number of tender-option bond programs (trusts that routinely purchase large quantities of bonds for both trading and investment purposes) and yield-oriented investors. Another source of added value was the fund’s overweight in the hospital/healthcare sector, which significantly outperformed most other revenue sectors and all general obligation sectors.

The fund’s exposure to higher-quality, intermediate-maturity bonds brought the weakest performance, since this group was negatively affected by the flattening yield curve. As a relatively new member in its peer group, the fund had less time to accumulate higher-yielding, lower-rated investment-grade, non-rated, or noninvestment-grade bonds. The fund’s limited exposure to these issues also detracted from performance. The fund’s position in pre-refunded bonds that mature in four to eight years underperformed the general obligation and revenue sectors.

What strategic moves were made by the fund and why?

Because of the still positive, though flattening, slope of the yield curve and our moderate interest-rate outlook, the fund’s duration was anywhere from neutral to slightly long relative to its Lehman benchmark most of the fiscal period. The new issue supply for Colorado was down by 19% for the first half of 2006, making it more difficult to augment the fund’s position in lower-quality in-state bonds. To counter this lack of new supply, the fund selectively added out-of-state higher yielding securities. The out-of-state portion of the fund remained very limited.

* Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects.

Portfolio Allocation as of June 30, 2006¹  (% of net assets)

Revenue Bonds3	71.3	%
General Obligations3	14.3
Certificates of Participation3	14.5
Short-Term Investments	2.7
Other Assets and Liabilities, Net	(2.8	)
	100.0	%

Credit Quality Distribution as of June 30, 2006²  (% of market value)

AAA	52.6	%
AA	9.8
A	15.3
BBB	19.5
Non-Rated	2.8
	100.0	%

1	Portfolio allocations are subject to change and are not recommendations to buy or sell any security.
2	Individual security ratings are based on information from Moody’s Investors Service, Standard & Poor’s, and/or Fitch. In the case of split ratings, the middle rating is used. If ratings are provided by only two agencies, the lower rating is used. If only one rating agency provides a rating, that rating is used.
3	These sectors may include bonds that are pre-refunded or escrowed to maturity issues; see the fund’s Notes to Schedule of Investments. As of June 30, 2006, 11.8% of the fund’s net assets were pre-refunded and escrowed to maturity issues.

14      First American Funds Annual Report 2006

Colorado Tax Free fund continued

Annual Performance¹  as of June 30, 2006

	Nine-						Since
	Month						Inception
	Period*		1 year		5 years		2/1/2000
Average annual return with sales charge (POP)
Class A		(3.50)%		(3.56)%		4.15%		5.73%
Class C		(0.48)%		(0.60)%		4.64%		6.03%
Average annual return without sales charge (NAV)
Class A		0.77%		0.74%		5.06%		6.45%
Class C		0.47%		0.34%		4.64%		6.03%
Class Y		0.96%		1.08%		5.31%		6.73%
Lehman Municipal Bond Index2		1.01%		0.89%		5.05%		6.26%

Value of $10,000 Investment^{1, 3}  as of June 30, 2006

Colorado Tax Free Fund, Class A (NAV)		$	14,926
Colorado Tax Free Fund, Class A (POP)		$	14,297
Colorado Tax Free Fund, Class Y		$	15,181
Lehman Municipal Bond Index2		$	14,762

Class A

Class Y

The chart above illustrates the total value of an assumed $10,000 investment in the fund’s Class A and Class Y shares (from 2/1/2000 to 6/30/2006) as compared to the Lehman Municipal Bond Index².

The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.

*  Total returns have not been annualized.

¹  Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Investment performance reflects fee waivers that are or were in effect. In the absence of such fee waivers, total returns would be reduced. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available.

A portion of the fund’s income may be subject to state and/or federal income tax, including the alternative minimum tax. Capital gains distributions, if any, will be subject to tax.

Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV.

Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 4.25% for Class A shares and the maximum contingent deferred sales charge (“CDSC”) for Class C shares for the relevant period. Maximum CDSC is 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV.

Investments in debt securities typically decrease in value when interest rates rise. The risk is usually greater for longer-term debt securities.

2	An unmanaged index comprised of fixed-rate, investment-grade tax-exempt bonds with remaining maturities of one year or more.
3	Performance for Class C shares is not presented. Performance for this class is lower due to higher expenses.

First American Funds Annual Report 2006      15

Colorado Tax Free fund continued

Expense Example

As a shareholder of the Colorado Tax Free Fund (the “fund”), you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments; and (2) ongoing costs, including investment advisory fees, distribution and/or service (12b-1) fees, and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from January 1, 2006, to June 30, 2006.

Actual Expenses

For each class, the first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

For each class, the second line of the table below provides information about hypothetical account values and hypothetical expenses based on the fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line of the table for each class is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

Expense Examples

					Expenses Paid During
	Beginning Account		Ending Account		Period1 (1/01/06 to
	Value (1/01/06)		Value (6/30/06)		6/30/06)
Class A Actual2	$	1,000.00	$	999.40	$	3.72
Class A Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.08	$	3.76
Class C Actual2	$	1,000.00	$	997.40	$	5.70
Class C Hypothetical (5% return before expenses)	$	1,000.00	$	1,019.09	$	5.76
Class Y Actual2	$	1,000.00	$	1,000.70	$	2.48
Class Y Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.32	$	2.51

1	Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.75%, 1.15%, and 0.50% for Class A, Class C, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period).
2	Based on the actual returns for the six-month period ended June 30, 2006 of -0.06%, -0.26%, and 0.07% for Class A, Class C, and Class Y, respectively.

16      First American Funds Annual Report 2006

Intermediate Tax Free fund

Investment Objective: current income that is exempt from federal income tax to the extent consistent with preservation of capital

How did the fund perform for the nine-month fiscal period ended June 30, 2006?

The First American Intermediate Tax Free Fund (the “fund”), Class Y shares, returned 0.67% for the fiscal period ended June 30, 2006 (Class A shares returned 0.56%, without taking the sales charge into account, for the same period). By comparison, the fund’s benchmark, the Lehman 7-Year Municipal Bond Index*, returned 0.56%. Performance for the fund’s peer group, the Lipper Intermediate Municipal Debt Funds Category Average, was 0.46%.

What were the general municipal market conditions during the fiscal period?

Yields in the municipal market rose across the entire range of bond maturities during the fiscal period. The shape of the yield curve flattened significantly as short-term interest rates rose much more than long-term rates. The combination of rising rates and a flattening yield curve produced small positive total returns. Coupon income was sufficient to offset the corresponding decline in bond prices. Intermediate-maturity bonds were the poorest performers in this environment, while bonds with very short or very long maturities generally produced the best returns.

Lower-quality, high-yield securities had another good period. The additional yield spread required over high-grade bonds for such securities generally narrowed over the course of the period, as demand from high-yield investors continued to outpace supply.

How did market conditions and investment strategies affect the fund’s performance?

While the fund’s holdings were arrayed fairly evenly across the range of maturities, the portion of the portfolio extending 15 years or more (somewhat longer than the normal intermediate maturity range) helped performance because of the flattening municipal yield curve. In terms of quality, the fund’s holdings in lower-rated securities also proved beneficial, both because of their higher yields and because a general narrowing in yield spreads vs. higher-quality municipal bonds favorably impacted the relative values of these securities. The fund took advantage of narrowing yield spreads by selling a number of these securities during the period.

Though beneficial to the performance of longer-maturity bonds, the flattening of the yield curve generally weakened the relative performance of higher-quality intermediate-maturity bonds. Despite a shorter duration, the greater rise in intermediate-term interest rates caused intermediate-maturity bonds to underperform longer-maturity bonds.

What strategic moves were made by the fund and why?

In anticipation of an approaching end to Fed tightening and a resulting steepening of the yield curve, we have begun to de-emphasize the weighting in shorter and longer maturities in favor of an increased intermediate maturity (five- to ten-year range) weighting. During the fiscal period the fund moderately increased its allocation to higher-yielding A-rated and non-rated securities.

* Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects.

Portfolio Allocation as of June 30, 2006¹  (% of net assets)

Revenue Bonds3	62.3	%
General Obligations3	33.1
Certificates of Participation3	3.3
Short-Term Investment	0.3
Other Assets and Liabilities, Net	1.0
	100.0	%

Credit Quality Distribution as of June 30, 2006²  (% of market value)

AAA	55.3	%
AA	11.9
A	14.1
BBB	10.8
BB	0.9
Non-Rated	7.0
	100.0	%

1	Portfolio allocations are subject to change and are not recommendations to buy or sell any security.
2	Individual security ratings are based on information from Moody’s Investors Service, Standard & Poor’s, and/or Fitch. In the case of split ratings, the middle rating is used. If ratings are provided by only two agencies, the lower rating is used. If only one rating agency provides a rating, that rating is used.
3	These sectors may include bonds that are pre-refunded or escrowed to maturity issues; see the fund’s Notes to Schedule of Investments. As of June 30, 2006, 23.4% of the fund’s net assets were pre-refunded and escrowed to maturity issues.

First American Funds Annual Report 2006      17

Intermediate Tax Free fund continued

Annual Performance¹  as of June 30, 2006

	Nine-
	Month
	Period*			1 year			5 years		10 years
Average annual return with sales charge (POP)								��
Class A		(1.69	)%		(1.85	)%		3.55%		4.37%
Average annual return without sales charge (NAV)
Class A		0.56	%		0.37	%		4.02%		4.60%
Class Y		0.67	%		0.42	%		4.17%		4.67%
Lehman 7-Year Municipal Bond Index2		0.56	%		0.15	%		4.45%		5.26%

Value of $10,000 Investment¹  as of June 30, 2006

Intermediate Tax Free Fund, Class A (NAV)		$	15,438
Intermediate Tax Free Fund, Class A (POP)		$	15,085
Intermediate Tax Free Fund, Class Y		$	15,542
Lehman 7-Year Municipal Bond Index2		$	16,395

Class A

Class Y

The chart above illustrates the total value of an assumed $10,000 investment in the fund’s Class A and Class Y shares (from 9/30/1996 to 6/30/2006) as compared to the Lehman 7-Year Municipal Bond Index².

The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.

*  Total returns have not been annualized.

¹  Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Investment performance reflects fee waivers that are or were in effect. In the absence of such fee waivers, total returns would be reduced. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available.

Income from the fund may be subject to state and local taxes. A portion of the fund’s income may be subject to federal income tax, including the alternative minimum tax. Capital gains distributions, if any, will be subject to tax.

Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV.

Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 2.25% for Class A. Total returns assume reinvestment of all distributions at NAV.

Investments in debt securities typically decrease in value when interest rates rise. The risk is usually greater for longer-term debt securities.

²  An unmanaged index comprised of fixed-rate, investment-grade tax-exempt bonds with remaining maturities between six and eight years.

18      First American Funds Annual Report 2006

Intermediate Tax Free fund continued

Expense Example

As a shareholder of the Intermediate Tax Free Fund (the “fund”), you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments; and (2) ongoing costs, including investment advisory fees, distribution and/or service (12b-1) fees, and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from January 1, 2006, to June 30, 2006.

Actual Expenses

For each class, the first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

For each class, the second line of the table below provides information about hypothetical account values and hypothetical expenses based on the fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line of the table for each class is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

Expense Examples

					Expenses Paid During
	Beginning Account		Ending Account		Period1 (1/01/06 to
	Value (1/01/06)		Value (6/30/06)		6/30/06)
Class A Actual2	$	1,000.00	$	999.70	$	4.21
Class A Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.58	$	4.26
Class Y Actual2	$	1,000.00	$	1,000.40	$	3.47
Class Y Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.32	$	3.51

1	Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.85% and 0.70% for Class A and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period).
2	Based on the actual returns for the six-month period ended June 30, 2006 of -0.03% and 0.04% for Class A and Class Y, respectively.

First American Funds Annual Report 2006      19

Minnesota Intermediate Tax Free fund

Investment Objective: current income that is exempt from both federal income tax and Minnesota state income tax to the extent consistent with preservation of capital

How did the fund perform for the nine-month fiscal period ended June 30, 2006?

The First American Minnesota Intermediate Tax Free Fund (the “fund”), Class Y shares, returned 0.85% for the fiscal period ended June 30, 2006 (Class A shares returned 0.74%, without taking the sales charge into account, for the same period). By comparison, the fund’s benchmark, the Lehman 7-Year Municipal Bond Index*, returned 0.56%. Performance for the fund’s peer group, the Lipper Other States Intermediate Municipal Debt Funds Category Average, was 0.12%.

What were the general municipal market conditions during the fiscal period?

Yields in the municipal market rose across the entire range of bond maturities during the fiscal period. The shape of the yield curve flattened significantly as short-term interest rates rose much more than long-term rates. The combination of rising rates and a flattening yield curve produced small positive total returns. Coupon income was sufficient to offset the corresponding decline in bond prices. Intermediate-maturity bonds were the poorest performers in this environment, while bonds with very short or very long maturities generally produced the best returns.

Lower-quality, high-yield securities had another good period. The additional yield spread required over high-grade bonds for such securities generally narrowed over the course of the period, as demand from high-yield investors continued to outpace supply.

How did market conditions and investment strategies affect the fund’s performance?

While the fund’s holdings were arrayed fairly evenly across the range of maturities, the portion of the portfolio extending 15 years or more (somewhat longer than the normal intermediate maturity range) helped performance because of the flattening municipal yield curve. In terms of quality, the fund’s holdings in lower-rated securities also proved beneficial, both because of their higher yields and because a general narrowing in yield spreads vs. higher-quality municipal bonds favorably impacted the relative values of these securities. The fund took advantage of narrowing yield spreads by selling a number of these securities during the period.

Though beneficial to the performance of longer-maturity bonds, the flattening of the yield curve generally weakened the relative performance of higher-quality intermediate-maturity bonds. Despite a shorter duration, the greater rise in intermediate-term interest rates caused intermediate-maturity bonds to underperform longer-maturity bonds.

What strategic moves were made by the fund and why?

While the duration of the fund was fairly neutral relative to its Lehman benchmark most of the fiscal period, it was lengthened slightly near the end of the reporting period in anticipation of an approaching end to Fed tightening and, consequently, of a reduced risk of further rate increases. Expecting, for the same reasons, a steepening of the yield curve, we began to deemphasize the weighting in shorter and longer maturities in favor of increased intermediate-maturity weighting. During the fiscal period, the fund was able to increase its allocation to higher-yielding A-rated and lower-rated securities.

* Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects.

Portfolio Allocation as of June 30, 2006¹  (% of net assets)

Revenue Bonds3	64.1	%
General Obligations3	33.6
Certificate of Participation	0.5
Short-Term Investment	0.7
Other Assets and Liabilities, Net	1.1
	100.0	%

Credit Quality Distribution as of June 30, 2006²  (% of market value)

AAA	41.4	%
AA	18.5
A	17.4
BBB	10.4
BB	2.6
Non-Rated	9.7
	100.0	%

1	Portfolio allocations are subject to change and are not recommendations to buy or sell any security.
2	Individual security ratings are based on information from Moody’s Investors Service, Standard & Poor’s, and/or Fitch. In the case of split ratings, the middle rating is used. If ratings are provided by only two agencies, the lower rating is used. If only one rating agency provides a rating, that rating is used.
3	These sectors may include bonds that are pre-refunded or escrowed to maturity issues; see the fund’s Notes to Schedule of Investments. As of June 30, 2006, 6.0% of the fund’s net assets were pre-refunded and escrowed to maturity issues.

20      First American Funds Annual Report 2006

Minnesota Intermediate Tax Free fund continued

Annual Performance¹  as of June 30, 2006

	Nine-
	Month
	Period*		1 year		5 years		10 years
Average annual return with sales charge (POP)
Class A		(1.50)%		(1.77)%		3.39%		4.26%
Average annual return without sales charge (NAV)
Class A		0.74%		0.52%		3.86%		4.50%
Class Y		0.85%		0.68%		4.00%		4.54%
Lehman 7-Year Municipal Bond Index2		0.56%		0.15%		4.45%		5.26%

Value of $10,000 Investment¹  as of June 30, 2006

Minnesota Intermediate Tax Free Fund, Class A (NAV)		$	15,288
Minnesota Intermediate Tax Free Fund, Class A (POP)		$	14,941
Minnesota Intermediate Tax Free Fund, Class Y		$	15,342
Lehman 7-Year Municipal Bond Index2		$	16,395

Class A

Class Y

The chart above illustrates the total value of an assumed $10,000 investment in the fund’s Class A and Class Y shares (from 9/30/1996 to 6/30/2006) as compared to the Lehman 7-Year Municipal Bond Index².

The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.

*  Total returns have not been annualized.

¹  Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Investment performance reflects fee waivers that are or were in effect. In the absence of such fee waivers, total returns would be reduced. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available.

A portion of the fund’s income may be subject to state and/or federal income tax, including the alternative minimum tax. Capital gains distributions, if any, will be subject to tax.

Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV.

Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 2.25% for Class A shares. Total returns assume reinvestment of all distributions at NAV.

Investments in debt securities typically decrease in value when interest rates rise. The risk is usually greater for longer-term debt securities.

²  An unmanaged index comprised of fixed-rate, investment-grade tax-exempt bonds with remaining maturities between six and eight years.

First American Funds Annual Report 2006      21

Minnesota Intermediate Tax Free fund continued

Expense Example

As a shareholder of the Minnesota Intermediate Tax Free Fund (the “fund”), you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments; and (2) ongoing costs, including investment advisory fees, distribution and/or service (12b-1) fees, and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from January 1, 2006, to June 30, 2006.

Actual Expenses

For each class, the first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

For each class, the second line of the table below provides information about hypothetical account values and hypothetical expenses based on the fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line of the table for each class is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

Expense Examples

					Expenses Paid During
	Beginning Account		Ending Account		Period1 (1/01/06 to
	Value (1/01/06)		Value (6/30/06)		6/30/06)
Class A Actual2	$	1,000.00	$	1,001.60	$	4.22
Class A Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.58	$	4.26
Class Y Actual2	$	1,000.00	$	1,002.40	$	3.48
Class Y Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.32	$	3.51

1	Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.85% and 0.70% for Class A and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period).
2	Based on the actual returns for the six-month period ended June 30, 2006 of 0.16% and 0.24% for Class A and Class Y, respectively.

22      First American Funds Annual Report 2006

Minnesota Tax Free fund

Investment Objective: maximum current income that is exempt from both federal income tax and Minnesota state income tax to the extent consistent with prudent investment risk

How did the fund perform for the nine-month fiscal period ended June 30, 2006?

The First American Minnesota Tax Free Fund (the “fund”), Class Y shares, returned 1.47% for the fiscal period ended June 30, 2006 (Class A shares returned 1.28%, without taking the sales charge into account, for the same period). By comparison, the fund’s benchmark, the Lehman Municipal Bond Index*, returned 1.01%. Performance for the fund’s peer group, the Lipper Minnesota Municipal Debt Funds Objective Average, was 0.76%.

What were the general municipal market conditions during the fiscal period?

Yields in the municipal market rose across the entire range of bond maturities during the fiscal period. The shape of the yield curve flattened significantly as short-term interest rates rose much more than long-term rates. The combination of rising rates and a flattening yield curve produced small positive total returns. Coupon income was sufficient to offset the corresponding decline in bond prices. Intermediate-maturity bonds were the poorest performers in this environment, while bonds with very short or very long maturities generally produced the best returns.

Lower-quality, high-yield securities had another good period. The additional yield spread required over high-grade bonds for such securities generally narrowed over the course of the period, as demand from high-yield investors continued to outpace supply.

How did market conditions and investment strategies affect the fund’s performance?

The fund’s holdings were arrayed fairly evenly across the range of maturities, but with some overweighting in the 22-year and longer range. This overweight helped performance, as the yield curve flattened over the period and, as a result, longer-maturity bonds outperformed shorter maturities. In terms of quality, the fund was overweighted in A-rated, BBB-rated, and non-rated issues. Continued strong demand for the additional yield provided by these securities caused them to outperform higher-quality bonds. In addition, overweights in healthcare, housing, and education sectors added value, since many positions in these sectors are considered high-yield, thereby benefiting from strong demand.

Long-term zero coupon bonds in the portfolio underperformed during this fiscal period because of rising interest rates and a lack of demand. These issues are among the most price-volatile in the portfolio due to their relatively longer duration, or interest rate risk; hence their prices, compared with coupon-bearing bonds, tend to fall faster when interest rates rise and rise faster when interest rates fall. As the yield curve flattened, the fund’s positions in four- to eight-year maturities underperformed longer-term maturities. Positions in general obligation bonds, which tend to be higher-quality issues, generally underperformed lower-quality issues during the period.

What strategic moves were made by the fund and why?

Duration was shortened to less than the benchmark during the spring, reducing risk as interest rates rose. It was extended beyond the benchmark near the end of the period as interest rates moved to their highs for the year to date. AA-rated positions were reduced and higher-yielding A-rated positions were increased.

* Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects.

Portfolio Allocation as of June 30, 2006¹  (% of net assets)

Revenue Bonds3	86.3	%
General Obligations3	10.1
Short-Term Investments	3.4
Other Assets and Liabilities, Net	0.2
	100.0	%

Credit Quality Distribution as of June 30, 2006²  (% of market value)

AAA	36.9	%
AA	10.1
A	26.9
BBB	8.1
BB	2.2
Non-Rated	15.8
	100.0	%

1	Portfolio allocations are subject to change and are not recommendations to buy or sell any security.
2	Individual security ratings are based on information from Moody’s Investors Service, Standard & Poor’s, and/or Fitch. In the case of split ratings, the middle rating is used. If ratings are provided by only two agencies, the lower rating is used. If only one rating agency provides a rating, that rating is used.
3	These sectors may include bonds that are pre-refunded or escrowed to maturity issues; see the fund’s Notes to Schedule of Investments. As of June 30, 2006, 13.6% of the fund’s net assets were pre-refunded and escrowed to maturity issues.

First American Funds Annual Report 2006      23

Minnesota Tax Free fund continued

Annual Performance¹  as of June 30, 2006

	Nine-								Since Inception
	Month
	Period*		1 year		5 years		10 years		8/1/1997		2/1/1999
Average annual return with sales charge (POP)
Class A		(3.05)%		(3.04)%		3.85%		4.84%		—		—
Class C		0.00%		(0.13)%		4.32%		—		—		3.88%
Average annual return without sales charge (NAV)
Class A		1.28%		1.24%		4.75%		5.29%		—		—
Class C		0.98%		0.84%		4.32%		—		—		3.88%
Class Y		1.47%		1.50%		5.01%		—		5.04%		—
Lehman Municipal Bond Index2		1.01%		0.89%		5.05%		5.79%		5.25%		4.87%

Value of $10,000 Investment^{1, 3}  as of June 30, 2006

		Class A		Class Y
Minnesota Tax Free Fund, Class A (NAV)		$	16,316
Minnesota Tax Free Fund, Class A (POP)		$	15,627
Minnesota Tax Free Fund, Class Y				$	15,503
Lehman Municipal Bond Index2		$	17,164	$	15,782

Class A

Class Y

The chart above illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 9/30/1996 to 6/30/2006) and Class Y shares (from 8/1/1997 to 6/30/2006) as compared to the Lehman Municipal Bond Index².

The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.

*

Total returns have not been annualized.

¹  Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Investment performance reflects fee waivers that are or were in effect. In the absence of such fee waivers, total returns would be reduced. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available.

A portion of the fund’s income may be subject to state and/or federal income tax, including the alternative minimum tax. Capital gains distributions, if any, will be subject to tax.

Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV.

Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 4.25% for Class A shares and the maximum contingent deferred sales charge (“CDSC”) for Class C shares for the relevant period. Maximum CDSC is 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV.

Investments in debt securities typically decrease in value when interest rates rise. The risk is usually greater for longer-term debt securities.

On July 31, 1998, the Minnesota Tax Free Fund became the successor by merger to the Piper Minnesota Tax-Exempt Fund, a series of Piper Funds Inc. Prior to the merger, the First American Fund had no assets or liabilities. Performance presented prior to July 31, 1998, represents that of the Piper Minnesota Tax-Exempt Fund.

2	An unmanaged index comprised of fixed-rate, investment-grade tax-exempt bonds with remaining maturities of one year or more.
3	Performance for Class C shares is not presented. Performance of this class is lower due to higher expenses.

24      First American Funds Annual Report 2006

Minnesota Tax Free fund continued

Expense Example

As a shareholder of the Minnesota Tax Free Fund (the “fund”), you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments; and (2) ongoing costs, including investment advisory fees, distribution and/or service (12b-1) fees, and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from January 1, 2006, to June 30, 2006.

Actual Expenses

For each class, the first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

For each class, the second line of the table below provides information about hypothetical account values and hypothetical expenses based on the fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line of the table for each class is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

Expense Examples

					Expenses Paid During
	Beginning Account		Ending Account		Period1 (1/01/06 to
	Value (1/01/06)		Value (6/30/06)		6/30/06)
Class A Actual2	$	1,000.00	$	1,001.90	$	4.72
Class A Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.08	$	4.76
Class C Actual2	$	1,000.00	$	999.90	$	6.69
Class C Hypothetical (5% return before expenses)	$	1,000.00	$	1,018.10	$	6.76
Class Y Actual2	$	1,000.00	$	1,003.20	$	3.48
Class Y Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.32	$	3.51

1	Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.95%, 1.35%, and 0.70% for Class A, Class C, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period).
2	Based on the actual returns for the six-month period ended June 30, 2006 of 0.19%, -0.01%, and 0.32% for Class A, Class C, and Class Y, respectively.

First American Funds Annual Report 2006      25

Missouri Tax Free fund

Investment Objective: maximum current income that is exempt from both federal income tax and Missouri state income tax to the extent consistent with prudent investment risk

How did the fund perform for the nine-month fiscal period ended June 30, 2006?

The First American Missouri Tax Free Fund (the “fund”), Class Y shares, returned 0.49% for the fiscal period ended June 30, 2006 (Class A shares returned 0.38%, without taking the sales charge into account, for the same period). By comparison, the fund’s benchmark, the Lehman Municipal Bond Index*, returned 1.01%. Performance for the fund’s peer group, the Lipper Missouri Municipal Debt Funds Category Average, was 0.55%.

What were the general municipal market conditions during the fiscal period?

Yields in the municipal market rose across the entire range of bond maturities during the fiscal period. The shape of the yield curve flattened significantly as short-term interest rates rose much more than long-term rates. The combination of rising rates and a flattening yield curve produced small positive total returns. Coupon income was sufficient to offset the corresponding decline in bond prices. Intermediate-maturity bonds were the poorest performers in this environment, while bonds with very short or very long maturities generally produced the best returns.

Lower-quality, high-yield securities had another good period. The additional yield spread required over high-grade bonds for such securities generally narrowed over the course of the period, as demand from high-yield investors continued to outpace supply.

How did market conditions and investment strategies affect the fund’s performance?

Due to the flattening of the municipal yield curve, the fund’s holdings with very short and very long maturities generally performed well this fiscal period, while high-quality, intermediate-maturity bonds generally showed the weakest performance. A more pronounced barbell portfolio structure – with reduced weighting in intermediate-term bonds – would have produced better results, especially if more emphasis had been placed on very short bonds and a higher allocation made at the long end of the curve (22 years or more). Despite a shorter duration, the greater rise in yields for intermediate maturities caused them to underperform longer maturity bonds.

Lower-rated, higher-yielding bonds enjoyed strong performance. Generally, allocations to lower-rated securities benefited the fund, both because of their higher yields and because a general narrowing in yield spreads vs. higher-quality municipal bonds favorably impacted the relative values of these securities. The fund took advantage of narrowing yield spreads by selling a number of these securities during the period.

Although the fund holds a variety of lower-rated securities, greater exposure to high-yield bonds, especially those with longer maturities, would also have helped over the past period due to the continued narrowing of yield spreads, which made lower-rated bonds more attractive.

What strategic moves were made by the fund and why?

Throughout the fiscal period, the duration of the fund was generally neutral relative to the Lehman benchmark. In view of the flattening yield curve, we increased the weighting of longer maturity bonds during the period. The weighting in higher-yielding, lower-quality bonds was also increased.

* Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects.

Portfolio Allocation as of June 30, 2006¹  (% of net assets)

Revenue Bonds3	77.1	%
General Obligations3	19.5
Certificates of Participation3	1.8
Short-Term Investment	0.5
Other Assets and Liabilities, Net	1.1
	100.0	%

Credit Quality Distribution as of June 30, 2006²  (% of market value)

AAA	59.5	%
AA	22.6
A	7.1
BBB	6.5
BB	1.1
Non-Rated	3.2
	100.0	%

1	Portfolio allocations are subject to change and are not recommendations to buy or sell any security.
2	Individual security ratings are based on information from Moody’s Investors Service, Standard & Poor’s, and/or Fitch. In the case of split ratings, the middle rating is used. If ratings are provided by only two agencies, the lower rating is used. If only one rating agency provides a rating, that rating is used.
3	These sectors may include bonds that are pre-refunded or escrowed to maturity issues; see the fund’s Notes to Schedule of Investments. As of June 30, 2006, 15.8% of the fund’s net assets were pre-refunded and escrowed to maturity issues.

26      First American Funds Annual Report 2006

Missouri Tax Free fund continued

Annual Performance¹  as of June 30, 2006

	Nine-								Since Inception
	Month
	Period*		1 year		5 years		10 years		9/24/2001
Average annual return with sales charge (POP)
Class A		(3.89)%		(4.31)%		3.24%		4.31%		—
Class C		(0.96)%		(1.47)%		—		—		3.40%
Average annual return without sales charge (NAV)
Class A		0.38%		(0.03)%		4.15%		4.77%		—
Class C		0.00%		(0.51)%		—		—		3.40%
Class Y		0.49%		0.13%		4.40%		5.04%		—
Lehman Municipal Bond Index2		1.01%		0.89%		5.05%		5.79%		4.73%

Value of $10,000 Investment^{1, 3}  as of June 30, 2006

Missouri Tax Free Fund, Class A (NAV)		$	15,234
Missouri Tax Free Fund, Class A (POP)		$	14,585
Missouri Tax Free Fund, Class Y		$	15,625
Lehman Municipal Bond Index2		$	16,667

Class A

Class Y

The chart above illustrates the total value of an assumed $10,000 investment in the fund’s Class A and Class Y shares (from 11/30/1996 to 6/30/2006) as compared to the Lehman Municipal Bond Index².

The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.

*

Total returns have not been annualized.

¹  Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Investment performance reflects fee waivers that are or were in effect. In the absence of such fee waivers, total returns would be reduced. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available.

A portion of the fund’s income may be subject to state and/or federal income tax, including the alternative minimum tax. Capital gains distributions, if any, will be subject to tax.

Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV.

Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 4.25% for Class A shares and the maximum contingent deferred sales charge (“CDSC”) for Class C shares for the relevant period. Maximum CDSC is 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV.

Investments in debt securities typically decrease in value when interest rates rise. The risk is usually greater for longer-term debt securities.

On September 24, 2001, the Missouri Tax Free Fund became the successor by merger to the Firstar Missouri Tax-Exempt Bond Fund, a series of Firstar Funds, Inc. Prior to the merger, the First American fund had no assets or liabilities. Performance presented prior to September 24, 2001, represents that of the Firstar Missouri Tax-Exempt Bond Fund. The Firstar Missouri Tax-Exempt Bond Fund was organized on December 11, 2000.

2	An unmanaged index comprised of fixed-rate, investment-grade tax-exempt bonds with remaining maturities of one year or more.
3	Performance for Class C shares is not presented. Performance for this class is lower due to higher expenses.

First American Funds Annual Report 2006      27

Missouri Tax Free fund continued

Expense Example

As a shareholder of the Missouri Tax Free Fund (the “fund”), you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments; and (2) ongoing costs, including investment advisory fees, distribution and/or service (12b-1) fees, and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from January 1, 2006, to June 30, 2006.

Actual Expenses

For each class, the first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

For each class, the second line of the table below provides information about hypothetical account values and hypothetical expenses based on the fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line of the table for each class is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

Expense Examples

					Expenses Paid During
	Beginning Account		Ending Account		Period1 (1/01/06 to
	Value (1/01/06)		Value (6/30/06)		6/30/06)
Class A Actual2	$	1,000.00	$	997.30	$	4.70
Class A Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.08	$	4.76
Class C Actual2	$	1,000.00	$	994.60	$	6.68
Class C Hypothetical (5% return before expenses)	$	1,000.00	$	1,018.10	$	6.76
Class Y Actual2	$	1,000.00	$	997.80	$	3.47
Class Y Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.32	$	3.51

1	Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.95%, 1.35%, and 0.70% for Class A, Class C, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period).
2	Based on the actual returns for the six-month period ended June 30, 2006 of -0.27%, -0.54%, and -0.22% for Class A, Class C, and Class Y, respectively.

28      First American Funds Annual Report 2006

Nebraska Tax Free fund

Investment Objective: maximum current income that is exempt from both federal income tax and Nebraska state income tax to the extent consistent with prudent investment risk

How did the fund perform for the nine-month fiscal period ended June 30, 2006?

The First American Nebraska Tax Free Fund (the “fund”), Class Y shares, returned 0.85% for the fiscal period ended June 30, 2006 (Class A shares returned 0.65%, without taking the sales charge into account, for the same period). By comparison, the fund’s benchmark, the Lehman Municipal Bond Index*, returned 1.01%. Performance for the fund’s peer group, the Lipper Other States Municipal Debt Funds Category Average, was 0.84%.

What were the general municipal market conditions during the fiscal period?

Yields in the municipal market rose across the entire range of bond maturities during the fiscal period. The shape of the yield curve flattened significantly as short-term interest rates rose much more than long-term rates. The combination of rising rates and a flattening yield curve produced small positive total returns. Coupon income was sufficient to offset the corresponding decline in bond prices. Intermediate-maturity bonds were the poorest performers in this environment, while bonds with very short or very long maturities generally produced the best returns.

Lower-quality, high-yield securities had another good period. The additional yield spread required over high-grade bonds for such securities generally narrowed over the course of the period, as demand from high-yield investors continued to outpace supply.

How did market conditions and investment strategies affect the fund’s performance?

An overweight in bonds with 15-year and longer maturities allowed the fund to benefit from the flattening municipal yield curve. This part of the municipal curve was also supported by heightened demand, driven by an increased number of tender-option bond programs (trusts that routinely purchase large quantities of bonds for both trading and investment purposes) and yield-oriented investors. Another source of added value was the fund’s overweight in the hospital/healthcare sector, which significantly outperformed most other revenue sectors and all general obligation sectors.

The fund’s exposure to higher-quality, intermediate-maturity bonds brought the weakest performance, since this group was negatively affected by the flattening yield curve. As a relatively new member in its peer group, the fund had less time to accumulate higher-yielding, lower-rated investment-grade, non-rated, or noninvestment-grade bonds. The fund’s limited exposure to these issues also detracted from performance. The fund’s position in pre-refunded bonds that mature in four to eight years underperformed the general obligation and revenue sectors.

What strategic moves were made by the fund and why?

Because of the still positive, though flattening, slope of the yield curve and our moderate interest-rate outlook, the fund’s duration was anywhere from neutral to slightly long relative to its Lehman benchmark most of the fiscal period. The new issue supply for Nebraska was down by 17% for the first half of 2006, making it more difficult to augment the fund’s position in lower-quality in-state bonds. To counter this lack of new supply, the fund selectively added out-of-state higher yielding securities. The out-of-state portion of the fund remained very limited.

* Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects.

Portfolio Allocation as of June 30, 2006¹  (% of net assets)

Revenue Bonds3	75.3	%
General Obligations3	19.7
Certificates of Participation3	3.3
Short-Term Investments	4.3
Other Assets and Liabilities, Net	(2.6	)
	100.0	%

Credit Quality Distribution as of June 30, 2006²  (% of market value)

AAA	37.7	%
AA	31.6
A	14.9
BBB	3.8
Non-Rated	12.0
	100.0	%

1	Portfolio allocations are subject to change and are not recommendations to buy or sell any security.
2	Individual security ratings are based on information from Moody’s Investors Service, Standard & Poor’s, and/or Fitch. In the case of split ratings, the middle rating is used. If ratings are provided by only two agencies, the lower rating is used. If only one rating agency provides a rating, that rating is used.
3	These sectors may include bonds that are pre-refunded or escrowed to maturity issues; see the fund’s Notes to Schedule of Investments. As of June 30, 2006, 0.6% of the fund’s net assets were pre-refunded and escrowed to maturity issues.

First American Funds Annual Report 2006      29

Nebraska Tax Free fund continued

Annual Performance¹  as of June 30, 2006

	Nine-						Since Inception
	Month
	Period*		1 year		5 years		2/28/2001
Average annual return with sales charge (POP)
Class A		(3.63)%		(3.89)%		3.82%		3.86%
Class C		(0.51)%		(0.85)%		4.32%		4.20%
Average annual return without sales charge (NAV)
Class A		0.65%		0.42%		4.72%		4.70%
Class C		0.46%		0.12%		4.32%		4.20%
Class Y		0.85%		0.67%		4.98%		4.96%
Lehman Municipal Bond Index2		1.01%		0.89%		5.05%		5.03%

Value of a $10,000 Investment^{1, 3}  as of June 30, 2006

Nebraska Tax Free Fund, Class A (NAV)		$	12,776
Nebraska Tax Free Fund, Class A (POP)		$	12,237
Nebraska Tax Free Fund, Class Y		$	12,943
Lehman Municipal Bond Index2		$	12,990

Class A

Class Y

The chart above illustrates the total value of an assumed $10,000 investment in the fund’s Class A and Class Y shares (from 2/28/2001 to 6/30/2006) as compared to the Lehman Municipal Bond Index².

The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.

*

Total returns have not been annualized.

¹  Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Investment performance reflects fee waivers that are or were in effect. In the absence of such fee waivers, total returns would be reduced. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available.

A portion of the fund’s income may be subject to state and/or federal income tax, including the alternative minimum tax. Capital gains distributions, if any, will be subject to tax.

Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV.

Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 4.25% for Class A shares and the maximum contingent deferred sales charge (“CDSC”) for Class C shares for the relevant period. Maximum CDSC is 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV.

Investments in debt securities typically decrease in value when interest rates rise. The risk is usually greater for longer-term debt securities.

2	An unmanaged index comprised of fixed-rate, investment-grade tax-exempt bonds with remaining maturities of one year or more.
3	Performance for Class C shares is not presented. Performance of this class is lower due to higher expenses.

30      First American Funds Annual Report 2006

Nebraska Tax Free fund continued

Expense Example

As a shareholder of the Nebraska Tax Free Fund (the “fund”), you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments; and (2) ongoing costs, including investment advisory fees, distribution and/or service (12b-1) fees, and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from January 1, 2006, to June 30, 2006.

Actual Expenses

For each class, the first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

For each class, the second line of the table below provides information about hypothetical account values and hypothetical expenses based on the fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line of the table for each class is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

Expense Examples

					Expenses Paid During
	Beginning Account		Ending Account		Period1 (1/01/06 to
	Value (1/01/06)		Value (6/30/06)		6/30/06)
Class A Actual2	$	1,000.00	$	998.70	$	3.72
Class A Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.08	$	3.76
Class C Actual2	$	1,000.00	$	997.70	$	5.70
Class C Hypothetical (5% return before expenses)	$	1,000.00	$	1,019.09	$	5.76
Class Y Actual2	$	1,000.00	$	999.90	$	2.48
Class Y Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.32	$	2.51

1	Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.75%, 1.15%, and 0.50% for Class A, Class C, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period).
2	Based on the actual returns for the six-month period ended June 30, 2006 of -0.13%, -0.23%, and -0.01% for Class A, Class C, and Class Y, respectively.

First American Funds Annual Report 2006      31

Ohio Tax Free fund

Investment Objective: maximum current income that is exempt from both federal income tax and Ohio state income tax to the extent consistent with prudent investment risk

How did the fund perform for the nine-month fiscal period ended June 30, 2006?

The First American Ohio Tax Free Fund (the “fund”), Class Y shares, returned 0.49% for the fiscal period ended June 30, 2006 (Class A shares returned 0.40%, without taking the sales charge into account, for the same period). By comparison, the fund’s benchmark, the Lehman Municipal Bond Index*, returned 1.01%. Performance for the fund’s peer group, the Lipper Ohio Municipal Debt Funds Category Average, was 0.34%.

What were the general municipal market conditions during the fiscal period?

Yields in the municipal market rose across the entire range of bond maturities during the fiscal period. The shape of the yield curve flattened significantly as short-term interest rates rose much more than long-term rates. The combination of rising rates and a flattening yield curve produced small positive total returns. Coupon income was sufficient to offset the corresponding decline in bond prices. Intermediate-maturity bonds were the poorest performers in this environment, while bonds with very short or very long maturities generally produced the best returns.

Lower-quality, high-yield securities had another good period. The additional yield spread required over high-grade bonds for such securities generally narrowed over the course of the period, as demand from high-yield investors continued to outpace supply.

How did market conditions and investment strategies affect the fund’s performance?

Bonds with maturities longer that 15 years performed better than those with shorter maturities due to a flattening of the yield curve (short-term interest rates rising faster than long-term interest rates). The fund also benefited by continuing to increase its position in lower-quality, high-yield securities. As demand for these securities continued to outpace supply, they enjoyed strong performance.

The fund had an overweight in high-quality, intermediate-maturity bonds, which generally showed the weakest performance during this period due to the flattening of the municipal yield curve. Despite a shorter duration, the greater rise in intermediate-term interest rates caused intermediate-maturity bonds to underperform longer-maturity bonds.

What strategic moves were made by the fund and why?

Because of the still positive, though flattening, slope of the yield curve and our moderate interest-rate outlook, the duration of the fund was moderately longer its Lehman benchmark for the period. As opportunities arose, lower-quality, higher-yielding securities were added to the portfolio. Most of these purchases were in issues with maturities of 20 years or longer, which benefited the most from the flattening yield curve and a general narrowing in yield spreads vs. higher-quality municipal bonds.

* Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects.

Portfolio Allocation as of June 30, 2006¹  (% of net assets)

Revenue Bonds3	53.4	%
General Obligations3	42.3
Certificate of Participation3	3.2
Short-Term Investments	1.4
Other Assets and Liabilities, Net	(0.3	)
	100.0	%

Credit Quality Distribution as of June 30, 2006²  (% of market value)

AAA	40.4	%
AA	34.6
A	18.8
BBB	5.2
Non-Rated	1.0
	100.0	%

1	Portfolio allocations are subject to change and are not recommendations to buy or sell any security.
2	Individual security ratings are based on information from Moody’s Investors Service, Standard & Poor’s, and/or Fitch. In the case of split ratings, the middle rating is used. If ratings are provided by only two agencies, the lower rating is used. If only one rating agency provides a rating, that rating is used.
3	These sectors may include bonds that are pre-refunded or escrowed to maturity issues; see the fund’s Notes to Schedule of Investments. As of June 30, 2006, 6.2% of the fund’s net assets were pre-refunded and escrowed to maturity issues.

32      First American Funds Annual Report 2006

Ohio Tax Free fund continued

Annual Performance¹  as of June 30, 2006

	Nine-				Since Inception
	Month
	Period*		1 year		4/30/2002
Average annual return with sales charge (POP)
Class A		(3.85)%		(4.43)%		3.25%
Class C		(1.06)%		(1.62)%		3.64%
Average annual return without sales charge (NAV)
Class A		0.40%		(0.18)%		4.32%
Class C		(0.08)%		(0.66)%		3.64%
Class Y		0.49%		(0.02)%		4.57%
Lehman Municipal Bond Index2		1.01%		4.81%

Value of $10,000 Investment^{1, 3}  as of June 30, 2006

Ohio Tax Free Fund, Class A (NAV)		$	11,927
Ohio Tax Free Fund, Class A (POP)		$	11,424
Ohio Tax Free Fund, Class Y		$	12,048
Lehman Municipal Bond Index2		$	12,164

Class A

Class Y

The chart above illustrates the total value of an assumed $10,000 investment in the fund’s Class A and Class Y Shares (from 4/30/2002 to 6/30/2006) as compared to the Lehman Municipal Bond Index².

The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.

*  Total returns have not been annualized.

¹  Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Investment performance reflects fee waivers that are or were in effect. In the absence of such fee waivers, total returns would be reduced. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available.

A portion of the fund’s income may be subject to state and/or federal income tax, including the alternative minimum tax. Capital gains distributions, if any, will be subject to tax.

Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV.

Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 4.25% for Class A shares and the maximum contingent deferred sales charge (“CDSC”) for Class C shares for the relevant period. Maximum CDSC is 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV.

Investments in debt securities typically decrease in value when interest rates rise. The risk is usually greater for longer-term debt securities.

2	An unmanaged index comprised of fixed-rate, investment-grade tax-exempt bonds with remaining maturities of one year or more.
3	Performance for Class C shares is not presented. Performance of this class is lower due to higher expenses.

First American Funds Annual Report 2006      33

Ohio Tax Free fund continued

Expense Example

As a shareholder of the Ohio Tax Free Fund (the “fund”), you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments; and (2) ongoing costs, including investment advisory fees, distribution and/or service (12b-1) fees, and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from January 1, 2006, to June 30, 2006.

Actual Expenses

For each class, the first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

For each class, the second line of the table below provides information about hypothetical account values and hypothetical expenses based on the fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line of the table for each class is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

Expense Examples

					Expenses Paid During
	Beginning Account		Ending Account		Period1 (1/01/06 to
	Value (1/01/06)		Value (6/30/06)		6/30/06)
Class A Actual2	$	1,000.00	$	997.10	$	3.71
Class A Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.08	$	3.76
Class C Actual2	$	1,000.00	$	994.20	$	5.69
Class C Hypothetical (5% return before expenses)	$	1,000.00	$	1,019.09	$	5.76
Class Y Actual2	$	1,000.00	$	997.40	$	2.48
Class Y Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.32	$	2.51

1	Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.75%, 1.15%, and 0.50% for Class A, Class C, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period).
2	Based on the actual returns for the six-month period ended June 30, 2006 of -0.29%, -0.58%, and -0.26% for Class A, Class C, and Class Y, respectively.

34      First American Funds Annual Report 2006

Oregon Intermediate Tax Free fund

Investment Objective: current income that is exempt from both federal income tax and Oregon state income tax to the extent consistent with preservation of capital

How did the fund perform for the nine-month fiscal period ended June 30, 2006?

The First American Oregon Intermediate Tax Free Fund (the “fund”), Class Y shares, returned 0.28% for the fiscal period ended June 30, 2006 (Class A shares returned 0.16%, without taking the sales charge into account, for the same period). By comparison, the fund’s benchmark, the Lehman 7-Year Municipal Bond Index*, returned 0.56%. Performance for the fund’s peer group, the Lipper Other States Intermediate Municipal Debt Funds Category Average, was 0.12%.

What were the general municipal market conditions during the fiscal period?

Yields in the municipal market rose across the entire range of bond maturities during the fiscal period. The shape of the yield curve flattened significantly as short-term interest rates rose much more than long-term rates. The combination of rising rates and a flattening yield curve produced small positive total returns. Coupon income was sufficient to offset the corresponding decline in bond prices. Intermediate-maturity bonds were the poorest performers in this environment, while bonds with very short or very long maturities generally produced the best returns.

Lower-quality, high-yield securities had another good period. The additional yield spread required over high-grade bonds for such securities generally narrowed over the course of the period, as demand from high-yield investors continued to outpace supply.

How did market conditions and investment strategies affect the fund’s performance?

With its holdings arrayed fairly evenly across the range of maturities, the fund benefited from the purchases of securities with maturities longer than 15 years, whose performance was strengthened by the flattening municipal yield curve. In addition, the fund benefited from the initial price appreciation of securities that were refunded by issuers looking to reduce their interest costs. (Refunding, made attractive by the flattening yield curve, is the refinancing of older, higher-coupon bonds by issuing new, lower-coupon bonds.)

Higher-quality, intermediate-maturity bonds generally posted the weakest performance this fiscal period due to the flattening of the municipal yield curve. Despite a shorter duration, the greater rise in intermediate-term interest rates caused intermediate-maturity bonds to underperform longer-maturity bonds.

What strategic moves were made by the fund and why?

The duration of the fund was fairly neutral relative to its Lehman benchmark most of the period. In view of the flattening yield curve, the securities we purchased during this period had somewhat longer maturities than those normally purchased for an intermediate fund, which helped the fund’s performance. While Oregon has very few issuers that would be considered high-yield, and therefore few opportunities to purchase such issues, we were able to add some of these names during the period and as a result the fund benefited from the higher income.

* Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects.

Portfolio Allocation as of June 30, 2006¹  (% of net assets)

General Obligations3	58.1	%
Revenue Bonds3	34.6
Certificates of Participation3	6.2
Short-Term Investment	0.3
Other Assets and Liabilities, Net	0.8
	100.0	%

Credit Quality Distribution as of June 30, 2006²  (% of market value)

AAA	55.1	%
AA	32.9
A	4.1
BBB	4.9
Non-Rated	3.0
	100.0	%

1	Portfolio allocations are subject to change and are not recommendations to buy or sell any security.
2	Individual security ratings are based on information from Moody’s Investors Service, Standard & Poor’s, and/or Fitch. In the case of split ratings, the middle rating is used. If ratings are provided by only two agencies, the lower rating is used. If only one rating agency provides a rating, that rating is used.
3	These sectors may include bonds that are pre-refunded or escrowed to maturity issues; see the fund’s Notes to Schedule of Investments. As of June 30, 2006, 20.6% of the fund’s net assets were pre-refunded and escrowed to maturity issues.

First American Funds Annual Report 2006      35

Oregon Intermediate Tax Free fund continued

Annual Performance¹  as of June 30, 2006

	Nine-								Since Inception
	Month
	Period*		1 year		5 years		10 years		2/1/1999
Average annual return with sales charge (POP)
Class A		(2.07)%		(2.63)%		3.17%		—		3.29%
Average annual return without sales charge (NAV)
Class A		0.16%		(0.34)%		3.63%		—		3.62%
Class Y		0.28%		(0.19)%		3.76%		4.44%		—
Lehman 7-Year Municipal Bond Index2		0.56%		0.15%		4.45%		5.26%		4.43%

Value of $10,000 Investment¹  as of June 30, 2006

		Class A		Class Y
Oregon Intermediate Tax Free Fund, Class A (NAV)		$	13,012
Oregon Intermediate Tax Free Fund, Class A (POP)		$	12,714
Oregon Intermediate Tax Free Fund, Class Y				$	15,231
Lehman 7-Year Municipal Bond Index2		$	13,791	$	16,395

Class A

Class Y

The chart above illustrates the total value of an assumed $10,000 investment in the fund’s Class A shares (from 2/1/1999 to 6/30/2006) and Class Y shares (from 9/30/1996 to 6/30/2006) as compared to the Lehman 7-Year Municipal Bond Index².

The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.

*  Total returns have not been annualized.

¹  Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Investment performance reflects fee waivers that are or were in effect. In the absence of such fee waivers, total returns would be reduced. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available.

A portion of the fund’s income may be subject to state and/or federal income tax, including the alternative minimum tax. Capital gains distributions, if any, will be subject to tax.

Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV.

Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 2.25% for Class A. Total returns assume reinvestment of all distributions at NAV.

Investments in debt securities typically decrease in value when interest rates rise. The risk is usually greater for longer-term debt securities.

Performance prior to August 8, 1997, is that of Oregon Municipal Bond Trust Fund, a predecessor common trust fund. On August 8, 1997, substantially all of the assets of Oregon Municipal Bond Trust Fund were transferred into Oregon Intermediate Tax Free Fund. The objectives, policies, and guidelines of the two funds were, in all material respects, identical. Oregon Municipal Bond Trust Fund was not registered under the Investment Company Act of 1940 and therefore was not subject to certain investment restrictions that might have adversely affected performance.

²  An unmanaged index comprised of fixed-rate, investment-grade tax-exempt bonds with remaining maturities between six and eight years.

36      First American Funds Annual Report 2006

Oregon Intermediate Tax Free fund continued

Expense Example

As a shareholder of the Oregon Intermediate Tax Free Fund (the “fund”), you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments; and (2) ongoing costs, including investment advisory fees, distribution and/or service (12b-1) fees, and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from January 1, 2006, to June 30, 2006.

Actual Expenses

For each class, the first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

For each class, the second line of the table below provides information about hypothetical account values and hypothetical expenses based on the fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line of the table for each class is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

Expense Examples

					Expenses Paid During
	Beginning Account		Ending Account		Period1 (1/01/06 to
	Value (1/01/06)		Value (6/30/06)		6/30/06)
Class A Actual2	$	1,000.00	$	997.20	$	4.21
Class A Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.58	$	4.26
Class Y Actual2	$	1,000.00	$	996.90	$	3.47
Class Y Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.32	$	3.51

1	Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.85% and 0.70% for Class A and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period).
2	Based on the actual returns for the six-month period ended June 30, 2006 of -0.28% and -0.31% for Class A and Class Y, respectively.

First American Funds Annual Report 2006      37

Short Tax Free fund

Investment Objective: to provide investors with current income that is exempt from federal income tax, to the extent consistent with the preservation of capital

How did the fund perform for the nine-month fiscal period ended June 30, 2006?

The First American Short Tax Free Fund (the “fund”), Class Y shares, returned 1.13% for the fiscal period ended June 30, 2006 (Class A shares returned 1.02%, without taking the sales charge into account, for the same period). By comparison, the fund’s benchmark, the Lehman 3-Year Municipal Bond Index*, returned 0.74%. Performance for the fund’s peer group, the Lipper Short Municipal Debt Funds Category Average, was 1.54%.

What were the general municipal market conditions during the fiscal period?

Yields in the municipal market rose across the entire range of bond maturities during the fiscal period. The shape of the yield curve flattened significantly as short-term interest rates rose much more than long-term rates. The combination of rising rates and a flattening yield curve produced small positive total returns. Coupon income was sufficient to offset the corresponding decline in bond prices. Intermediate-maturity bonds were the poorest performers in this environment, while bonds with very short or very long maturities generally produced the best returns.

Lower-quality, high-yield securities had another good period. The additional yield spread required over high-grade bonds for such securities generally narrowed over the course of the period, as demand from high-yield investors continued to outpace supply.

How did market conditions and investment strategies affect the fund’s performance?

Maintaining the duration in a range of 60% to 70% of its benchmark for the fiscal period caused the fund to significantly outperform the benchmark. The fund held anywhere from 20% to 30% of its assets in variable-rate-demand securities, which increased the income of the portfolio over the fiscal period as the Fed continued its tightening mode. (Variable-rate-demand obligations are short-term securities that are priced at par (i.e., their nominal value) and reset daily/weekly/monthly to reflect current interest-rate levels.) Another source of added value was the fund’s overweight in the hospital/healthcare sector, which significantly outperformed most other revenue sectors and all general obligation sectors.

The fund generally held securities with maturities out to five years, with a higher representation in bonds with one- and two-year maturities. The fund’s exposure to higher-quality, three- to five-year maturity bonds, which proved to be weaker performers this fiscal period, had a negative effect on performance, as did the fund’s limited exposure to nonrated and noninvestment-grade bonds. The fund’s investment in prerefunded bonds also had a negative impact.

What strategic moves were made by the fund and why?

To reduce risk as interest rates rose, the duration of the fund was significantly shorter than its benchmark for the fiscal period. The fund continued its overweight in variable-rate-demand securities to capture the increase in short-term rates and to maintain liquidity at a time when the fund was challenged by significant outflows. We started selectively adding higher-yielding non-rated and non-investment-grade securities to the fund when available.

* Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects.

Portfolio Allocation as of June 30, 2006¹  (% of net assets)

Revenue Bonds3	81.8	%
General Obligations3	18.1
Short-Term Investment	1.0
Other Assets and Liabilities, Net	(0.9	)
	100.0	%

Credit Quality Distribution as of June 30, 2006²  (% of market value)

AAA	38.4	%
AA	20.2
A	21.5
BBB	15.3
BB	0.3
Non-Rated	4.3
	100.0	%

1	Portfolio allocations are subject to change and are not recommendations to buy or sell any security.
2	Individual security ratings are based on information from Moody’s Investors Service, Standard & Poor’s, and/or Fitch. In the case of split ratings, the middle rating is used. If ratings are provided by only two agencies, the lower rating is used. If only one rating agency provides a rating, that rating is used.
3	These sectors may include bonds that are pre-refunded or escrowed to maturity issues; see the fund’s Notes to Schedule of Investments. As of June 30, 2006, 7.6% of the fund’s net assets were pre-refunded and escrowed to maturity issues.

38      First American Funds Annual Report 2006

Short Tax Free fund continued

Annual Performance¹  as of June 30, 2006

	Nine-				Since Inception
	Month
	Period*		1 year		10/25/2002
Average annual return with sales charge (POP)
Class A		(1.30)%		(1.15)%		1.30%
Average annual return without sales charge (NAV)
Class A		1.02%		1.16%		1.93%
Class Y		1.13%		1.32%		2.07%
Lehman 3-Year Municipal Bond Index2		0.74%		0.89%		4.50%

Value of $10,000 Investment¹  as of June 30, 2006

Short Tax Free Fund, Class A (NAV)		$	10,728
Short Tax Free Fund, Class A (POP)		$	10,486
Short Tax Free Fund, Class Y		$	10,784
Lehman 3-Year Municipal Bond Index2		$	10,841

Class A

Class Y

The chart above illustrates the total value of an assumed $10,000 investment in the fund’s Class A and Class Y shares (from 10/25/2002 to 6/30/2006) as compared to the Lehman 3-Year Municipal Bond Index².

The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.

*  Total returns have not been annualized.

¹  Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Investment performance reflects fee waivers that are or were in effect. In the absence of such fee waivers, total returns would be reduced. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available.

Income from the fund may be subject to state and local taxes. A portion of the fund’s income may be subject to federal income tax, including the alternative minimum tax. Capital gains distributions, if any, will be subject to tax.

Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV.

Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 2.25% for Class A shares. Total returns assume reinvestment of all distributions at NAV.

Investments in debt securities typically decrease in value when interest rates rise. The risk is usually greater for longer-term debt securities.

²  An unmanaged index comprised of fixed-rate, investment-grade tax-exempt bonds with remaining maturities between two and four years.

First American Funds Annual Report 2006      39

Short Tax Free fund continued

Expense Example

As a shareholder of the Short Tax Free Fund (the “fund”), you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments; and (2) ongoing costs, including investment advisory fees, distribution and/or service (12b-1) fees, and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from January 1, 2006, to June 30, 2006.

Actual Expenses

For each class, the first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

For each class, the second line of the table below provides information about hypothetical account values and hypothetical expenses based on the fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line of the table for each class is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

Expense Examples

					Expenses Paid During
	Beginning Account		Ending Account		Period1 (1/01/06 to
	Value (1/01/06)		Value (6/30/06)		6/30/06)
Class A Actual2	$	1,000.00	$	1,007.70	$	3.73
Class A Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.08	$	3.76
Class Y Actual2	$	1,000.00	$	1,008.50	$	2.99
Class Y Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.82	$	3.01

1	Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.75% and 0.60% for Class A and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period).
2	Based on the actual returns for the six-month period ended June 30, 2006 of 0.77% and 0.85% for Class A and Class Y, respectively.

40      First American Funds Annual Report 2006

Tax Free fund

Investment Objective: maximum current income that is exempt from federal income tax to the extent consistent with the prudent investment risk

How did the fund perform for the nine-month fiscal period ended June 30, 2006?

The First American Tax Free Fund (the “fund”), Class Y shares, returned 1.57% for the fiscal period ended June 30, 2006 (Class A shares returned 1.37%, without taking the sales charge into account, for the same period). By comparison, the fund’s benchmark, the Lehman Municipal Bond Index*, returned 1.01%. Performance for the fund’s peer group, the Lipper General Municipal Debt Funds Objective Average, was 0.86%.

What were the general municipal market conditions during the fiscal period?

Yields in the municipal market rose across the entire range of bond maturities during the fiscal period. The shape of the yield curve flattened significantly as short-term interest rates rose much more than long-term rates. The combination of rising rates and a flattening yield curve produced small positive total returns. Coupon income was sufficient to offset the corresponding decline in bond prices. Intermediate-maturity bonds were the poorest performers in this environment, while bonds with very short or very long maturities generally produced the best returns.

Lower-quality, high-yield securities had another good period. The additional yield spread required over high-grade bonds for such securities generally narrowed over the course of the period, as demand from high-yield investors continued to outpace supply.

How did market conditions and investment strategies affect the fund’s performance?

The fund’s holdings were generally arrayed fairly evenly across the range of maturities, but with some overweighting in the 22-year and longer range. This overweight helped performance, as the yield curve flattened over the period and, as a result, longer-maturity bonds outperformed shorter maturities. In terms of quality, the fund was overweighted in A-rated, BBB-rated, and non-rated issues. Continued strong demand for the additional yield provided by these securities caused them to outperform higher-quality bonds. In addition, an overweight in the healthcare and education sectors added value, since many positions in these sectors are considered high-yield, thereby benefiting from strong demand. Overweighting in Texas, Illinois, Minnesota, Washington, and Wisconsin also added value as these states outperformed the national index. Indiana, which underperformed the national index, was underweighted in the fund.

Long-term zero coupon bonds in the portfolio underperformed during this fiscal period because of rising interest rates and a lack of demand. These issues are among the most price-volatile in the portfolio due to their relatively greater duration, or interest rate risk; hence their prices, compared with coupon-bearing bonds, tend to fall faster when interest rates rise and rise faster when interest rates fall. As the yield curve flattened, the fund’s positions in four- to eight-year maturities underperformed longer-term maturities. Positions in general obligation bonds, which tend to be higher-quality issues, generally underperformed lower-quality issues during the period. The fund’s positions in electric and sewer utility bonds detracted from performance as our holdings in these sectors tended to be higher-quality, which generally underperformed lower-quality issues over the period. The fund’s underweight in California and Florida also hurt performance, as these states outperformed the benchmark.

What strategic moves were made by the fund and why?

The fund’s duration was shortened to less than the benchmark during the spring, reducing risk as interest rates rose. It was extended to near the benchmark toward the end of the period as interest rates moved to their highs for the period to date. Our AAA-rated positions were reduced and higher-yielding A-rated and non-rated positions were increased. Additionally, select BBB-rated issues were sold at relatively higher prices than purchase levels.

* Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects.

Portfolio Allocation as of June 30, 2006¹  (% of net assets)

Revenue Bonds3	73.9	%
General Obligations3	23.7
Certificates of Participation3	0.8
Short-Term Investment	1.3
Other Assets and Liabilities, Net	0.3
	100.0	%

Credit Quality Distribution as of June 30, 2006²  (% of market value)

AAA	33.3	%
AA	10.8
A	21.0
BBB	18.7
BB	1.0
Non-Rated	15.2
	100.0	%

1	Portfolio allocations are subject to change and are not recommendations to buy or sell any security.
2	Individual security ratings are based on information from Moody’s Investors Service, Standard & Poor’s, and/or Fitch. In the case of split ratings, the middle rating is used. If ratings are provided by only two agencies, the lower rating is used. If only one rating agency provides a rating, that rating is used.
3	These sectors may include bonds that are pre-refunded or escrowed to maturity issues; see the fund’s Notes to Schedule of Investments. As of June 30, 2006, 21.9% of the fund’s net assets were pre-refunded and escrowed to maturity issues.

First American Funds Annual Report 2006      41

Tax Free fund continued

Annual Performance¹  as of June 30, 2006

	Nine-						Since Inception
	Month
	Period*		1 year		5 years		11/14/1996		9/24/2001
Average annual return with sales charge (POP)
Class A		(2.92)%		(2.91)%		4.17%		4.85%		—
Class C		0.08%		0.04%		—		—		4.43%
Average annual return without sales charge (NAV)
Class A		1.37%		1.43%		5.08%		5.32%		—
Class C		1.06%		1.01%		—		—		4.43%
Class Y		1.57%		1.69%		5.36%		5.55%		—
Lehman Municipal Bond Index2		1.01%		0.89%		5.05%		5.65%		4.73%

Value of $10,000 Investment^{1, 3}  as of June 30, 2006

Tax Free Fund, Class A (NAV)		$	16,354
Tax Free Fund, Class A (POP)		$	15,662
Tax Free Fund, Class Y		$	16,695
Lehman Municipal Bond Index2		$	16,667

Class A

Class Y

The chart above illustrates the total value of an assumed $10,000 investment in the fund’s Class A and Class Y shares (from 11/30/1996 to 6/30/2006) as compared to the Lehman Municipal Bond Index².

The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.

*

Total returns have not been annualized.

1

Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Investment performance reflects fee waivers that are or were in effect. In the absence of such fee waivers, total returns would be reduced. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available.

Income from the fund may be subject to state and local taxes. A portion of the fund’s income may be subject to federal income tax, including the alternative minimum tax. Capital gains distributions, if any, will be subject to tax.

Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV.

Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 4.25% for Class A shares and the maximum contingent deferred sales charge (“CDSC”) for Class C shares for the relevant period. Maximum CDSC is 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV.

Investments in debt securities typically decrease in value when interest rates rise. The risk is usually greater for longer-term debt securities.

On September 24, 2001, the First American Tax Free Fund merged with the Firstar National Municipal Bond Fund. Performance history prior to September 24, 2001, represents that of the Firstar National Municipal Bond Fund.

2	An unmanaged index comprised of fixed-rate, investment-grade tax-exempt bonds with remaining maturities of one year or more.
3	Performance for Class C shares is not presented. Performance of this class is lower due to higher expenses.

42      First American Funds Annual Report 2006

Tax Free fund continued

Expense Example

As a shareholder of the Tax Free Fund (the “fund”), you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments; and (2) ongoing costs, including investment advisory fees, distribution and/or service (12b-1) fees, and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from January 1, 2006, to June 30, 2006.

Actual Expenses

For each class, the first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

For each class, the second line of the table below provides information about hypothetical account values and hypothetical expenses based on the fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line of the table for each class is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

Expense Examples

					Expenses Paid During
	Beginning Account		Ending Account		Period1 (1/01/06 to
	Value (1/01/06)		Value (6/30/06)		6/30/06)
Class A Actual2	$	1,000.00	$	1,003.90	$	4.72
Class A Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.08	$	4.76
Class C Actual2	$	1,000.00	$	1,001.90	$	6.70
Class C Hypothetical (5% return before expenses)	$	1,000.00	$	1,018.10	$	6.76
Class Y Actual2	$	1,000.00	$	1,005.10	$	3.48
Class Y Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.32	$	3.51

1	Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.95%, 1.35%, and 0.70% for Class A, Class C, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period).
2	Based on the actual returns for the six-month period ended June 30, 2006 of 0.39%, 0.19%, and 0.51% for Class A, Class C, and Class Y, respectively.

First American Funds Annual Report 2006      43

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Directors

First American Investment Funds, Inc.

We have audited the accompanying statements of assets and liabilities, including the schedules of investments of the Arizona Tax Free, California Intermediate Tax Free, California Tax Free, Colorado Intermediate Tax Free, Colorado Tax Free, Intermediate Tax Free, Minnesota Intermediate Tax Free, Minnesota Tax Free, Missouri Tax Free, Nebraska Tax Free, Ohio Tax Free, Oregon Intermediate Tax Free, Short Tax Free, and Tax Free Funds (series of First American Investment Funds, Inc.) (the “funds”) as of June 30, 2006, the related statements of operations, changes in net assets and the financial highlights for each of the periods indicated therein. These financial statements and financial highlights are the responsibility of the funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the funds’ internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designating audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the funds’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included verification by examination of securities held by the custodian as of June 30, 2006 and confirmation of the securities held, by correspondence with the custodian and brokers, or by other appropriate auditing procedures where replies from brokers were not received. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights audited by us as referred to above present fairly, in all material respects, the financial position of the funds listed above of First American Investment Funds, Inc. at June 30, 2006, the results of their operations, the changes in their net assets and their financial highlights for each of the periods indicated therein, in conformity with U.S. generally accepted accounting principles.

Minneapolis, Minnesota

August 11, 2006

44      First American Funds Annual Report 2006

Schedule of  Investments June 30, 2006, all dollars are rounded to thousands (000)

Arizona Tax Free Fund
DESCRIPTION		PAR		VALUE
Municipal Bonds – 97.7%
Revenue Bonds – 76.4%
Continuing Care Retirement Communities – 7.0%
Arizona Health Facilities Authority, The Terraces Project, Series A, Callable 11/15/2013 @ 101
	7.500%, 11/15/2023	$	200	$	223
Maricopa County Industrial Development Authority, Senior Living Health Care Revenue, Immanuel Care, Series A, Callable 02/20/2016 @ 100 (GNMA)
	4.850%, 08/20/2026		750		740
North Carolina Community Health Care Facilities, Presbyterian Homes, Callable 10/01/2016 @ 100
	5.400%, 10/01/2027 (a)		270		267
South Dakota Health & Educational Facilities Authority, Westhills Village Retirement Community, Callable 09/01/2014 @ 100
	5.000%, 09/01/2025 (a)		400		398
Tempe Industrial Development Authority, Friendship Village Project, Series A
	5.375%, 12/01/2013		200		198
					1,826
Education – 7.2%
Gilbert Industrial Development Authority, Southwest Student Services, Pre-refunded 02/01/2009 @ 102
	5.850%, 02/01/2019 (b)		1,000		1,063
Glendale Industrial Development Authority, Midwestern University
	5.250%, 05/15/2014		140		146
Glendale Industrial Development Authority, Midwestern University, Series A, Callable 05/15/2011 @ 101
	5.750%, 05/15/2021		250		264
Pima County, Industrial Development Authority, Education Revenue, Paradise Education Center Project, Callable 06/01/2016 @ 100
	5.875%, 06/01/2022		250		248
University of Arizona Board of Regents, Series A, Pre-refunded 12/01/2009 @ 100 (FGIC)
	5.800%, 06/01/2024 (b)		150		159
					1,880
Healthcare – 20.5%
Arizona Health Facilities Authority, Blood Systems Inc., Callable 04/01/2014 @ 100
	4.750%, 04/01/2025		300		287
Arizona Health Facilities Authority, John C. Lincoln Health Network, Callable 12/01/2012 @ 101
	5.750%, 12/01/2032		150		155
Glendale Industrial Development Authority, Callable 12/01/2015 @ 100
	4.625%, 12/01/2027		200		184
Halifax Medical Center, Hospital Revenue, Series A, Callable 06/01/2016 @ 100
	5.000%, 06/01/2038		375		363
Indiana Health & Educational Facility Financing Authority, Schneck Memorial Hospital Project, Series A, Callable 02/15/2016 @ 100
	5.250%, 02/15/2030		400		409
Johnson City, Tennessee Health & Elderly Facilities Authority, Callable 07/01/2012 @ 103
	7.500%, 07/01/2025		100		115
Maricopa County Hospital, Sun Health Corporation, Callable 04/01/2015 @ 100
	5.000%, 04/01/2025		200		198
Maricopa County Industrial Development Authority, Catholic Healthcare West, Series A, Callable 07/01/2014 @ 100
	5.375%, 07/01/2023		500		512
Maricopa County Industrial Development Authority, Mayo Clinic, Callable 05/15/2016 @ 100
	5.000%, 11/15/2031		500		508
Scottsdale Industrial Development Authority, Scottsdale Healthcare, Pre-refunded 12/01/2011 @ 101
	5.700%, 12/01/2021 (b)		1,000		1,087
University Medical Center Corporation, Hospital Revenue, Callable 07/01/2014 @ 100
	5.000%, 07/01/2024		500		495
University Medical Center Corporation, Hospital Revenue, Callable 07/01/2015 @ 100
	5.000%, 07/01/2016		250		254
Yavapai Industrial Development Authority, Yavapai Regional Medical Center, Series A,     Callable 08/01/2013 @ 100 (RAAI)
	5.250%, 08/01/2021		375		387
	6.000%, 08/01/2033		100		105
Yuma Industrial Development Authority, Yuma Regional Medical Center, Callable 08/01/2007 @ 102, Escrowed to Maturity (MBIA)
	5.500%, 08/01/2017 (c)		250		259
					5,318
Housing – 3.9%
Douglas Community Housing Corporation, Rancho La Perilla, Series A, Callable 01/20/2010 @ 102 (GNMA)
	5.900%, 07/20/2020		500		521
	6.000%, 07/20/2025		475		492
Phoenix Industrial Development Authority, The Phoenix Authority, Series 1A, Callable 06/01/2010 @ 102 (FHLMC) (FNMA) (GNMA)
	5.875%, 06/01/2016		5		5
					1,018
Lease Revenue – 3.2%
Nogales Municipal Development Authority, Callable 06/01/2016 @ 100 (MBIA) (MLO)
	4.500%, 06/01/2031		250		239
Peoria Municipal Development Authority (MLO)
	5.000%, 07/01/2015		310		327
Pinal County Industrial Development Authority Correctional Facilities Contract, Florence West Prison Project, Series A (ACA) (MLO)
	5.000%, 10/01/2016		250		255
					821
Miscellaneous – 5.2%
Aleutians East Burough Project, Aleutian Pribilof Islands, Callable 06/01/2016 @ 100 (ACA)
	5.500%, 06/01/2036		250		256

First American Funds Annual Report 2006      45

Schedule of  Investments continued

Arizona Tax Free Fund (continued)
DESCRIPTION		PAR		VALUE
Arizona Student Loan Acquisition Authority, Series A, Callable 11/01/2009 @ 102 (AMT)
	5.900%, 05/01/2024	$	100	$	105
Greater Arizona Infrastructure Development Authority, Series A, Callable 08/01/2008 @ 102 (MBIA)
	5.625%, 08/01/2020		200		210
Greater Arizona Infrastructure Development Authority, Series B, Callable 08/01/2014 @ 100
	5.250%, 08/01/2026		750		773
					1,344
Tax Revenue – 11.8%
Greater Arizona Development Authority Infrastructure Revenue, Pinal County Road Project, Series 1, Callable 08/01/2016 @ 100 (MBIA)
	4.500%, 08/01/2025		750		726
Ohio County, Special District Excise Tax Revenue, Fort Henry Economic Development, Series B, Callable 03/01/2016 @ 100
	5.625%, 03/01/2036		135		135
Phoenix Civic Improvements, Excise Tax Revenue, Callable 07/01/2009 @ 101
	5.750%, 07/01/2016		300		317
Scottsdale Municipal Property Corporation, Excise Tax Revenue, Convertible CABs, Series C, Callable 07/01/2017 @ 100 (AMBAC)
	0.000% through 06/30/2013,
	thereafter 4.550%, 07/01/2021		500		342
Scottsdale Municipal Property Corporation, Excise Tax Revenue, Series A, Callable 07/14/2014 @ 100
	4.500%, 07/01/2025		100		97
Scottsdale Preservation Authority, Excise Tax Revenue (FGIC)
	5.000%, 07/01/2011		500		524
Tempe, Excise Tax Revenue, Series A, Callable 07/01/2009 @ 100
	5.625%, 07/01/2020		300		314
Vanderburgh County, Industrial Redevelopment Commission, Tax Increment, Callable 08/01/2016 @ 100
	5.000%, 02/01/2026		270		271
Yuma Improvement District #68, Callable 01/01/2017 @ 101
	4.700%, 01/01/2021		365		355
					3,081
Transportation – 6.7%
Arizona State Transportation Highway Board, Series A
	5.000%, 07/01/2009		400		412
Phoenix Civic Improvements, Series B, Callable 07/01/2012 @ 100 (AMT) (FGIC)
	5.250%, 07/01/2021		250		257
	5.250%, 07/01/2027		750		766
Tucson Street & Highway Improvements, Series 1994-E, Pre-refunded 07/01/2010 @ 100 (FGIC)
	5.000%, 07/01/2018 (b)		300		312
					1,747
Utilities – 10.9%
Chandler Water & Sewer Improvements, Pre-refunded 07/01/2010 @ 101 (FSA)
	5.800%, 07/01/2017 (b)		250		269
Cottonwood Water Revenue, Callable 07/01/2016 @ 100 (XLCA)
	5.000%, 07/01/2017		250		262
Gilbert Water Municipal Property Wastewater System & Utility, Callable 04/01/2008 @ 100
	5.000%, 04/01/2017		375		375
Glendale Water & Sewer Revenue, Callable 01/01/2016 @ 100 (FGIC)
	5.000%, 07/01/2019		1,000		1,045
Tucson Water, Series 1994-A (MBIA)
	6.250%, 07/01/2016		170		196
Yavapai Industrial Development Authority, Waste Management Incorporated Project, Series A-1, Callable 03/01/2016 @ 101 (AMT)
	3.650%, 03/01/2028 (d)		400		385
Yavapai Industrial Development Authority, Waste Management Incorporated Project, Series A-2, Mandatory Put 03/01/2008 @ 100 (AMT)
	4.450%, 03/01/2028		300		300
					2,832
Total Revenue Bonds					19,867
General Obligations – 16.0%
California State, Callable 02/01/2014 @ 100
	4.750%, 02/01/2024		100		100
Centerra Community Facilities Distributors, Callable 07/15/2015 @ 100
	5.500%, 07/15/2029		200		197
Chandler Public & Recreational Improvements, Callable 07/01/2010 @ 101
	5.800%, 07/01/2018		250		268
Greenlee County School District #18, Morenci
	5.000%, 07/01/2012		165		168
Maricopa County School District #3, Tempe Elementary School Improvement Project, Series A, Callable 07/01/2016 @ 100 (MBIA)
	4.750%, 07/01/2024		400		403
Peoria, Callable 04/01/2009 @ 100 (FGIC)
	5.400%, 04/01/2015		100		103
	5.000%, 04/01/2018		575		588
	5.000%, 04/01/2019		125		128
Phoenix, Callable 07/01/2007 @ 102
	5.250%, 07/01/2020		250		258
Phoenix, Callable 07/01/2010 @ 100
	5.250%, 07/01/2019		350		365
	5.375%, 07/01/2025		750		780
Puerto Rico Commonwealth, Government Development, Series B
	5.000%, 12/01/2014		250		257
Scottsdale, Pre-refunded 07/01/2009 @ 100
	5.500%, 07/01/2022 (b)		250		261
Tucson
	5.500%, 07/01/2018		250		274
Total General Obligations					4,150
Certificates of Participation – 5.3%
Arizona Board of Regents, Northern Arizona University Projects, Callable 09/01/2016 @ 100 (AMBAC)
	4.500%, 09/01/2030		500		480

The accompanying notes are an integral part of the financial statements.

46      First American Funds Annual Report 2006

Arizona Tax Free Fund (continued)
DESCRIPTION		PAR/SHARES		VALUE
Northern Arizona University, Research Projects, Callable 09/01/2015 @ 100 (AMBAC) (MLO)
	5.000%, 09/01/2023	$	140	$	144
Pinal County (MLO)
	5.000%, 12/01/2014		400		414
Tucson, Callable 07/01/2008 @ 100 (MBIA) (MLO)
	5.500%, 07/01/2015		200		206
University of Arizona Parking & Student Housing Authority, Pre-refunded 06/01/2009 @ 100 (AMBAC) (MLO)
	5.750%, 06/01/2019 (b)		140		147
Total Certificates of Participation					1,391
Total Municipal Bonds (Cost $24,784)					25,408
Short-Term Investments – 1.4%
Money Market Funds – 1.3%
Federated Arizona Municipal Money Market Fund			349,392		349
First American Tax Free Obligations Fund, Class Z (e)			6,794		7
					356
U.S. Treasury Obligation – 0.1%
U.S. Treasury Bill
	4.612%, 07/20/2006 (f)	$	25		25
Total Short-Term Investments (Cost $381)					381
Total Investments – 99.1% (Cost $25,165)					25,789
Other Assets and Liabilities, Net – 0.9%					224
Total Net Assets – 100.0%				$	26,013

(a)	Security purchased on a when-issued basis. On June 30, 2006, the total cost of investments purchased on a when-issued basis was $665 or 2.6% of total net assets. See note 2 in Notes to Financial Statements.
(b)	Pre-refunded issues are typically backed by U.S. government obligations. These bonds mature at the call date and price indicated.
(c)	Escrowed to Maturity issues are typically backed by U.S. government obligations. If callable, these bonds may still be subject to call and price indicated.
(d)	Variable Rate Security – The rate shown is the rate in effect as of June 30, 2006.
(e)	Investment in affiliated security. This money market fund is advised by FAF Advisors, Inc., which also serves as advisor for this fund. See note 3 in Notes to Financial Statements.

(f)  Security has been deposited as initial margin on open futures contracts. Yield shown is effective yield as of June 30, 2006. See note 2 in Notes to Financial Statements.

ACA – American Capital Access

AMBAC – American Municipal Bond Assurance Corporation

AMT –  Alternative Minimum Tax. As of June 30, 2006, the aggregate market value of securities subject to AMT was $1,047 which represents 4.0% of total net assets.

Convertible CABs –  Convertible Capital Appreciation Bonds initially pay no interest, but accrete in value from the date of issuance through the conversion date. At the conversion date, the bonds start to accrue and pay interest on a semiannual basis until final maturity.

FGIC – Financial Guaranty Insurance Corporation

FHLMC – Federal Home Loan Mortgage Corporation

FNMA – Federal National Mortgage Association

FSA – Financial Security Assurance

GNMA – Government National Mortgage Association

MBIA – Municipal Bond Insurance Association

MLO – Municipal Lease Obligation

RAAI – Radian Asset Assurance Inc.

XLCA – XL Capital Assurance Inc.

Schedule of Open Futures Contracts

	Number of		Notional
	Contracts		Contract			Settlement		Unrealized
Description	Sold		Value			Month		Appreciation
U.S. Treasury 10 Year Note Futures		(10)	$	(1,049	)		September 2006	$	10

First American Funds Annual Report 2006      47

Schedule of  Investments continued

California Intermediate Tax Free Fund
DESCRIPTION		PAR		VALUE
Municipal Bonds – 96.0%
Revenue Bonds – 68.9%
Continuing Care Retirement Communities – 4.7%
Association of Bay Area Governments Financial Authority, Odd Fellows Home of California (CMI)
	4.950%, 08/15/2007	$	500	$	506
California Health Facilities Financing Authority, Paradise Valley Estates (CMI)
	4.125%, 01/01/2010		500		500
	4.375%, 01/01/2012		540		543
California Statewide Communities Development Authority, Los Angeles Jewish Home (CMI)
	5.000%, 11/15/2012		500		519
La Verne, Brethren Hillcrest Homes, Series B, Callable 02/15/2013 @ 101 (ACA)
	5.600%, 02/15/2033		500		517
					2,585
Education – 11.2%
Association of Bay Area Governments Financial Authority, Schools of the Sacred Heart, Series A
	5.800%, 06/01/2008		200		206
California Educational Facilities Authority, Golden Gate University, Callable 10/01/2015 @ 100
	5.000%, 10/01/2020		505		509
California Educational Facilities Authority, Lutheran University, Series C, Callable 10/01/2014 @ 100
	4.750%, 10/01/2015		675		685
California Educational Facilities Authority, University of Redlands, Series A, Callable 10/01/2015 @ 100
	5.000%, 10/01/2020		500		507
California Educational Facilities Authority, University of the Pacific
	5.000%, 11/01/2015		300		314
California Educational Facilities Authority, Woodbury University
	4.400%, 01/01/2015		450		441
California State Higher Educational Facilities Authority, Fresno Pacific University, Series A
	5.650%, 03/01/2007		380		384
	5.750%, 03/01/2008		400		409
California State Higher Educational Facilities Authority, Occidental College Project, Pre-refunded 10/01/2007 @ 102 (MBIA)
	5.300%, 10/01/2010 (a)		500		519
California State Higher Educational Facilities Authority, University of La Verne & Western University of Health Sciences, Series B, Partially Escrowed to Maturity
	6.000%, 06/01/2010 (b)		495		524
California State Higher Educational Facilities Authority, University of Redlands, Series A, Escrowed to Maturity
	5.550%, 06/01/2009 (b)		225		235
California State Higher Educational Facilities Authority, University of Redlands, Series A, Pre-refunded 06/01/2010 @ 101
	5.700%, 06/01/2011 (a)		250		269
	5.750%, 06/01/2012 (a)		260		280
California Statewide Communities Development Authority, Cathedral High School Project, Callable until 03/31/2033 @ 100 (LOC: Allied Irish Bank PLC) (VRDO)
	3.850%, 04/01/2033 (c)		500		500
California Statewide Communities Development Authority, Viewpoint Schools (ACA)
	4.125%, 10/01/2014		405		390
					6,172
Healthcare – 15.3%
California Health Facilities Financing Authority, Casa Colina, Callable 04/01/2012 @ 100
	5.500%, 04/01/2013		300		311
California Health Facilities Financing Authority, Catholic Healthcare West, Series I, Mandatory Put 07/01/2014 @ 100
	4.950%, 07/01/2026		450		461
California Health Facilities Financing Authority, Marshall Medical Center, Series A, Callable 11/01/2014 @ 100 (CMI)
	4.750%, 11/01/2019		1,200		1,196
California Health Facilities Financing Authority, Valleycare Medical Center, Series A, Callable 05/01/2012 @ 100 (CMI)
	4.625%, 05/01/2013		300		304
	4.800%, 05/01/2014		715		727
California State Health Facilities Authority, Casa de las Campanas, Series A, Callable 08/01/2008 @ 100 (CMI)
	5.375%, 08/01/2009		250		256
California Statewide Communities Development Authority, Daughters of Charity Health, Series G
	5.250%, 07/01/2013		500		522
California Statewide Communities Development Authority, Elder Care Alliance, Series A
	7.250%, 11/15/2011		500		518
California Statewide Communities Development Authority, Kaiser Permanente, Series C, Mandatory Put 06/01/2012 @ 100
	3.850%, 11/01/2029		1,000		971
California Statewide Communities Development Authority, Los Angeles Orthopedic Hospital Foundation, Callable 06/01/2007 @ 101 (AMBAC)
	5.000%, 06/01/2012		150		153
Loma Linda University Medical Center, Hospital Revenue, Series A
	5.000%, 12/01/2015		600		612
Marysville Hospital, Fremont Rideout Health Project, Series A, Callable 07/01/2008 @ 103 (AMBAC)
	5.000%, 01/01/2010		500		516
Puerto Rico Industrial, Tourist, Educational, Medical & Environmental Control Facilities, Hospital de la Concepcion, Series A
	5.500%, 11/15/2009		650		672
Rancho Mirage Joint Powers Finance Authority, Eisenhower Medical Center, Series A, Callable 07/01/2007 @ 102 (MBIA)
	5.125%, 07/01/2008		500		513
Turlock California Health Facilities Revenue, Emanuel Medical Center, Callable 10/15/2014 @ 100 (MLO)
	5.000%, 10/15/2024		700		692
					8,424

The accompanying notes are an integral part of the financial statements.

48      First American Funds Annual Report 2006

California Intermediate Tax Free Fund (continued)
DESCRIPTION		PAR		VALUE
Housing – 3.8%
Association of Bay Area Governments Financial Authority, Archstone Redwood Housing Project, Series A
	5.300%, 10/01/2008	$	500	$	509
Aztec Shops, California State Auxiliary Organization, San Diego State University, Callable 09/01/2010 @ 101
	5.400%, 09/01/2011		1,035		1,085
California Rural Home Mortgage Finance Authority, Single Family Mortgage, Series D (AMT) (FNMA) (GNMA)
	5.250%, 06/01/2010		15		15
California Statewide Communities Development Authority, Equity Residential, Series B, Mandatory Put 06/15/2009 @ 100
	5.200%, 12/01/2029		500		512
					2,121
Lease Revenue – 6.5%
California State Public Works Board, California Community Colleges, Series A, Callable 12/01/2009 @ 101 (MLO)
	4.875%, 12/01/2018		200		203
California State Public Works Board, Department of Health Services, Callable 11/01/2009 @ 101 (MBIA) (MLO)
	5.200%, 11/01/2012		500		523
California State Public Works Board, Department of Mental Health, Callable 06/01/2014 @ 100 (MLO)
	5.500%, 06/01/2016		540		584
Golden State Tobacco Securitization Corporation, California Tobacco Settlement, Convertible CABs, Series A (MLO)
	0.000% through 05/31/2010,
	thereafter 4.550%, 06/01/2022		250		202
Los Angeles Community Redevelopment Agency, Lease Revenue, Manchester Social Services Project, Callable 09/01/2015 @ 100 (AMBAC) (MLO)
	5.000%, 09/01/2016		1,500		1,582
Los Angeles Municipal Improvement Corporation, Sanitation Equipment, Series A (FSA) (MLO)
	6.000%, 02/01/2007		500		507
					3,601
Miscellaneous – 3.7%
Children’s Trust Fund, Puerto Rico Tobacco Settlement Issue, Escrowed to Maturity
	5.000%, 07/01/2008 (b)		250		256
Golden West Schools Financing Authority, Series A (MBIA)
	5.700%, 02/01/2013		720		790
	5.750%, 02/01/2014		520		576
Golden West Schools Financing Authority, Series A, Zero Coupon Bond (MBIA)
	5.000%, 02/01/2012 (d)		535		424
					2,046
Recreational Facility Authority – 1.0%
California State University Fresno Association, Auxiliary Organization Event Center, Pre-refunded 07/01/2012 @ 101
	6.000%, 07/01/2022 (a)		500		556
Tax Revenue – 5.1%
Coachella Redevelopment Agency, Tax Allocation, Sub-Merged Project Areas, Series A (AMBAC)
	4.150%, 09/01/2015		440		439
Long Beach Community Facilities District #5, Towne Center Special Tax, Callable 10/01/2006 @ 102
	6.100%, 10/01/2012		165		169
Murrieta Community Facilities District #2, The Oaks Area, Callable 09/01/2014 @ 100
	5.750%, 09/01/2020		250		262
Norco, Special Tax, Community Facilities District #97-1, Callable 10/01/2015 @ 100 (AGTY)
	4.500%, 10/01/2016		260		263
Poway Unified School District, Special Tax, Community Facilities District #6-4, Callable 09/01/2006 @ 103
	5.000%, 09/01/2023		400		397
San Bernardino Redevelopment Agency, Tax Allocation, San Sevaine Redevelopment Project, Series A, Callable 09/01/2015 @ 100 (RAAI)
	5.000%, 09/01/2016		500		519
Southern California Logistics Airport Authority, Callable 06/01/2016 @ 100 (XLCA)
	4.000%, 12/01/2016		265		257
	4.250%, 12/01/2018		285		277
Stockton Public Financing Revenue, Assessment Districts, Senior Lien, Series A, Callable 09/02/2015 @ 100 (RAAI)
	4.300%, 09/02/2018		215		206
					2,789
Transportation – 3.0%
Alameda Corridor Transportation Authority, Zero Coupon Bond (AMBAC)
	4.650%, 10/01/2014 (d)		1,000		694
San Francisco City & County International Airports Commission, Second Series, Issue 25 (AMT) (FSA)
	5.500%, 05/01/2008		500		513
San Francisco City & County International Airports Commission, SFO Fuel, Series A (AMT) (FSA)
	5.250%, 01/01/2007		450		453
					1,660
Utilities – 14.6%
Banning Water Utility Authority, Enterprise Revenue, Referendum and Improvement Projects, Callable 11/01/2016 @ 100 (FGIC)
	5.000%, 11/01/2020		1,025		1,068
California Municipal Financial Authority, Solid Waste Disposal Revenue, Waste Management Incorporated Project, Mandatory Put 09/01/2009 @ 100 (AMT)
	4.100%, 09/01/2014		750		746
California Pollution Control Financing Authority, Solid Waste Disposal Revenue, Waste Management Incorporated Project, Series B, Callable 07/01/2015 @ 101 (AMT) (GTY)
	5.000%, 07/01/2027		250		247
California State Department of Water, Reservoir Power Supply, Series C-5 (LOC: Dexia Credit Local) (VRDO)
	3.920%, 05/01/2022 (c)		1,000		1,000

First American Funds Annual Report 2006      49

Schedule of  Investments continued

California Intermediate Tax Free Fund (continued)
DESCRIPTION		PAR		VALUE
California Statewide Communities Development Authority, Pollution Control Revenue, Southern California Edison Company, Series A, Mandatory Put 04/01/2013 @ 100 (XLCA)
	4.100%, 04/01/2028	$	500	$	499
California Statewide Communities Development Authority, Water Revenue, Series B, Callable 10/01/2016 @ 100 (FSA)
	4.250%, 10/01/2017		635		628
Chino Basin Regional Financing Authority, Inland Empire Utility Agency Sewer Project, Pre-refunded 11/01/2009 @ 101 (MBIA)
	5.200%, 11/01/2011 (a)		405		426
Imperial, Wastewater Treatment Facility, Callable 10/15/2011 @ 102 (FGIC)
	5.000%, 10/15/2020		1,000		1,028
Metropolitan Water District of Southern California, Series B, Callable 07/01/2006 @ 102 (MBIA)
	4.875%, 07/01/2010		190		193
	5.000%, 07/01/2014		295		301
Metropolitan Water District of Southern California, Series B, Pre-refunded 07/01/2006 @ 102 (MBIA)
	4.875%, 07/01/2010 (a)		135		138
	5.000%, 07/01/2014 (a)		205		209
Richmond Wastewater Systems, Callable 08/01/2009 @ 102 (FGIC)
	5.200%, 08/01/2011		500		525
Signal Hill, Water Revenue, Callable 11/01/2016 @ 100 (MBIA)
	4.250%, 11/01/2017		330		328
	4.375%, 11/01/2018		345		343
Whittier Utility Authority, Callable 06/01/2013 @ 100 (MBIA)
	4.400%, 06/01/2017		305		305
	4.500%, 06/01/2018		65		65
					8,049
Total Revenue Bonds					38,003
General Obligations – 19.5%
Alisal Union School District, Series C, Zero Coupon Bond (FGIC)
	5.050%, 08/01/2008 (d)		860		791
California State, Callable 04/01/2014 @ 100
	5.125%, 04/01/2024		500		516
California State, Callable 08/01/2013 @ 100
	5.000%, 02/01/2017		1,000		1,037
Foothill-De Anza Community College District, Callable 08/01/2010 @ 101
	6.000%, 08/01/2011		300		327
Fresno Unified School District, Series A (MBIA)
	6.050%, 08/01/2011		500		549
Jefferson Union High School District, San Mateo County, Series A (MBIA)
	6.250%, 02/01/2014		300		342
Los Angeles Unified School District Election of 2005, Series C (AMBAC)
	5.000%, 07/01/2015		1,500		1,596
Pomona Unified School District, Series A (MBIA)
	5.500%, 08/01/2006		250		250
Pomona Unified School District, Series A, Callable 08/01/2011 @ 103 (MBIA)
	6.150%, 08/01/2015		500		563
Puerto Rico Commonwealth, Series B (FSA)
	6.500%, 07/01/2015		1,000		1,170
Roseville Joint Union High School District, Callable 08/01/2011 @ 101
	5.200%, 08/01/2020		600		621
San Diego Community College, District Election of 2002, Callable 05/01/2015 @ 100 (FSA)
	5.000%, 05/01/2019		1,000		1,044
San Juan Unified School District, Zero Coupon Bond (FSA)
	5.420%, 08/01/2016 (d)		390		245
San Mateo Unified High School District, Series B, Zero Coupon Bond (FGIC)
	5.150%, 09/01/2017 (d)		1,000		594
Walnut Valley Unified School District, Series A, Pre-refunded 08/01/2010 @ 102 (FSA)
	5.000%, 08/01/2012 (a)		255		271
West Covina Unified School District, Series A (MBIA)
	5.350%, 02/01/2020		770		843
Total General Obligations					10,759
Certificates of Participation – 7.6%
Bakersfield Convention Center Expansion Project, Pre-refunded 04/01/2007 @ 101 (MBIA) (MLO)
	5.500%, 04/01/2010 (a)		250		256
California Special Districts Association Financial Corporation, Special Districts Finance Program, Series SS, Callable 08/01/2015 @ 100 (XLCA)
	4.250%, 08/01/2017		100		99
Grossmont Unified High School District, Pre-refunded 09/01/2008 @ 102 (FSA) (MLO)
	5.400%, 09/01/2013 (a)		300		315
Kern County Board of Education, Series A (MBIA)
	4.300%, 06/01/2016		500		501
Kern County Board of Education, Series A, Callable 05/01/2008 @ 102 (MBIA) (MLO)
	5.200%, 05/01/2012		325		338
Kern County Board of Education, Series A, Pre-refunded 05/01/2008 @ 102 (MBIA) (MLO)
	5.200%, 05/01/2012 (a)		580		605
Los Angeles County Schools, Regionalized Business Services Financing Project, Series A (MLO)
	5.000%, 09/01/2008		200		204
Los Angeles, Sonnenblick Del Rio, West Los Angeles (AMBAC) (MLO)
	5.375%, 11/01/2010		500		529
Paradise Unified School District, Measure M Project, Series A, Callable 09/01/2006 @ 101 (AMBAC) (MLO)
	5.250%, 09/01/2007		300		304
Poway California, Callable 08/01/2015 @ 100 (MLO)
	4.500%, 08/01/2016		585		595
Travis Unified School District (FGIC)
	4.500%, 09/01/2016		425		431
Total Certificates of Participation					4,177
Total Municipal Bonds (Cost $52,029)					52,939

The accompanying notes are an integral part of the financial statements.

50      First American Funds Annual Report 2006

California Intermediate Tax Free Fund (concluded)
DESCRIPTION	SHARES		VALUE
Short-Term Investment – 2.2%
Blackrock Liquidity Funds (Cost $1,237)		1,237,090	$	1,237
Total Investments – 98.2% (Cost $53,266)				54,176
Other Assets and Liabilities, Net – 1.8%				991
Total Net Assets – 100.0%			$	55,167

(a)	Pre-refunded issues are typically backed by U.S. government obligations. These bonds mature at the call date and price indicated.
(b)	Escrowed to Maturity issues are typically backed by U.S. government obligations. If callable, these bonds may still be subject to call at the call date and price indicated.
(c)	Variable Rate Security – The rate shown is in effect as of June 30, 2006.
(d)	Zero coupon bonds make no periodic interest payments, but are issued at deep discounts from par value. The rate shown is the effective yield at the time of purchase.

ACA – American Capital Access

AGTY – Assured Guaranty

AMBAC – American Municipal Bond Assurance Corporation

AMT – Alternative Minimum Tax. As of June 30, 2006, the aggregate market value of securities subject to the AMT was $1,959 or 3.6% of total net assets.

CMI – California Mortgage Insurance Program

Convertible CABs – Convertible Capital Appreciation Bonds initially pay no interest, but accrete in value from the date of issuance through the conversion date. At the conversion date, the bonds start to accrue and pay interest on a semiannual basis until final maturity.

FGIC – Financial Guaranty Insurance Corporation

FNMA – Federal National Mortgage Association

FSA – Financial Security Assurance

GNMA – Government National Mortgage Association

GTY – Guaranty

LOC – Letter of Credit

MBIA – Municipal Bond Insurance Association

MLO – Municipal Lease Obligation

RAAI – Radian Asset Assurance Inc.

VRDO – Variable Rate Demand Obligation. Floating or variable rate obligation maturing in more than one year. The interest is based on specific, or an index of, market interest rates, and is subject to change periodically. This instrument may also have a demand feature which allows the recovery of principal at any time, or at specified intervals not exceeding one year, on up to 30 days’ notice. Maturity date shown represents final maturity.

XLCA – XL Capital Assurance Inc.

California Tax Free Fund
DESCRIPTION		PAR		VALUE
Municipal Bonds – 96.4%
Revenue Bonds – 76.1%
Continuing Care Retirement Community – 0.7%
Association of Bay Area Governments Finance Authority, Lincoln Glen Manor Senior Citizens, Callable 02/15/2008 @ 101 (CMI)
	6.100%, 02/15/2025	$	250	$	258
Education – 14.2%
Association of Bay Area Governments Financial Authority, Schools of the Sacred Heart, Series A
	5.900%, 06/01/2010		200		211
California Educational Facilities Authority, University of Redlands, Series A, Callable 10/01/2015 @ 100
	5.000%, 10/01/2020		500		507
California Educational Facilities Authority, University of the Pacific, Callable 11/01/2015 @ 100
	5.000%, 11/01/2030		1,000		1,007
California Educational Facilities Authority, Woodbury University, Callable 01/01/2015 @ 100
	4.500%, 01/01/2016		470		462
California Municipal Financing Authority, Education Revenue, American Heritage Education Foundation Project, Series A, Callable 06/01/2016 @ 100
	5.250%, 06/01/2026		400		402
California State Higher Educational Facilities Authority, Fresno Pacific University, Series A, Callable 03/01/2010 @ 101
	6.750%, 03/01/2019		380		406
California State Higher Educational Facilities Authority, University of La Verne & Western University of Health Sciences, Series B, Partially Pre-refunded 06/01/2010 @ 101
	6.625%, 06/01/2020 (a)		215		231
California State Higher Educational Facilities Authority, University of Redlands, Series A, Pre-refunded 06/01/2010 @ 101
	5.950%, 06/01/2015 (a)		310		336
California State University Foundation, Monterey Bay, Pre-refunded 06/01/2011 @ 100 (MBIA)
	5.300%, 06/01/2022 (a)		500		532
University of California, Series K, Callable 09/01/2008 @ 101
	5.000%, 09/01/2020		1,000		1,025
					5,119
Healthcare – 11.5%
California Health Facilities Financing Authority, Casa Colina, Callable 04/01/2012 @ 100
	5.500%, 04/01/2013		50		52
California Health Facilities Financing Authority,     Cedars-Sinai Medical Center
	5.000%, 11/15/2015		500		520
California Health Facilities Financing Authority, Marshall Medical Center, Series A, Callable 11/01/2014 @ 100 (CMI)
	4.750%, 11/01/2019		560		558
California Statewide Communities Development Authority, Adventist Health, Series A, Callable 03/01/2015 @ 100
	5.000%, 03/01/2030		300		299

First American Funds Annual Report 2006      51

Schedule of  Investments continued

California Tax Free Fund (continued)
DESCRIPTION		PAR		VALUE
California Statewide Communities Development Authority, Daughters of Charity Healthcare, Series A, Callable 07/01/2015 @ 100
	5.250%, 07/01/2030	$	100	$	101
California Statewide Communities Development Authority, Elder Care Alliance, Series A
	7.250%, 11/15/2011		250		259
California Statewide Communities Development Authority, Kaiser Permanente, Series C, Mandatory Put 06/01/2012 @ 100
	3.850%, 11/01/2029		400		389
California Statewide Communities Development Authority, Los Angeles Orthopedic Hospital Foundation, Callable 06/01/2007 @ 101 (AMBAC)
	5.000%, 06/01/2012		350		357
California Statewide Communities Development Authority, Redlands Community Hospital, Series A (RAAI)
	5.000%, 04/01/2015		500		519
Loma Linda University Medical Center, Hospital Revenue, Series A
	5.000%, 12/01/2015		400		408
Puerto Rico Industrial, Tourist, Educational, Medical & Environmental Control Facilities, Hospital de La Concepcion, Series A
	5.500%, 11/15/2008		400		410
Turlock California Health Facilities Revenue, Emanuel Medical Center, Callable 10/15/2014 @ 100 (MLO)
	5.000%, 10/15/2024		300		297
					4,169
Housing – 3.3%
Aztec Shops, California State Auxiliary Organization, San Diego University
	5.200%, 09/01/2008		455		465
California State Department of Veterans Affairs, Series C, Callable 01/09/2011 @ 101 (AMT)
	5.500%, 12/01/2019		205		212
California State Housing Finance Agency, Single Family Mortgage, Series B, Callable until 05/31/2010 @ 100 (AMT) (FNMA) (GNMA)
	5.650%, 06/01/2010		10		10
California Statewide Communities Development Authority, Archstone Seascape, Mandatory Put 06/01/2008 @ 100
	5.250%, 06/01/2029		500		507
					1,194
Lease Revenue – 7.9%
California State Public Works Board, California Community Colleges, Series B, Callable 06/01/2014 @ 100 (MLO)
	5.500%, 06/01/2019		1,035		1,111
Golden State Tobacco Securitization Corporation, California Tobacco Settlement, Convertible CABs, Series A (MLO)
	0.000% through 05/31/2010,
	thereafter 4.550%, 06/01/2022		1,250		1,012
Los Angeles Community Redevelopment Agency, Lease Revenue, Manchester Social Services Project, Callable 09/01/2015 @ 100 (AMBAC) (MLO)
	5.000%, 09/01/2016		700		738
					2,861
Miscellaneous – 8.9%
Golden West Schools Financing Authority, Glendora Unified School District (MBIA)
	5.500%, 09/01/2019		910		1,005
Golden West Schools Financing Authority, Series A (MBIA)
	5.750%, 02/01/2014		250		277
	5.800%, 08/01/2022		320		367
	5.800%, 08/01/2023		345		396
Sacramento City Financing Authority, Pre-refunded 06/01/2010 @ 101 (MLO)
	5.400%, 06/01/2018 (a)		455		485
	5.500%, 06/01/2023 (a)		645		689
					3,219
Recreational Facility Authority – 1.6%
California State University Fresno Association, Auxiliary Organization Event Center, Pre-refunded 07/01/2012 @ 101
	6.000%, 07/01/2022 (a)		500		556
Tax Revenue – 13.8%
Grass Valley Community Redevelopment Agency, Tax Allocation, Callable 12/01/2008 @ 102
	6.400%, 12/01/2034		400		425
Irvine Unified School District Financing Authority, Special Tax Group II, Series A, Callable 09/01/2006 @ 103
	5.000%, 09/01/2026		225		223
Long Beach Community Facilities District #5, Towne Center Special Tax, Callable 10/01/2006 @ 102
	6.100%, 10/01/2012		250		256
Los Angeles, Callable 03/01/2010 @ 101
	5.625%, 03/01/2019		200		212
Los Angeles County Community Facilities District #3, Special Tax, Series A, Callable 09/01/2010 @ 100 (AMBAC)
	5.250%, 09/01/2018		715		747
Murrieta Community Facilities District #2, The Oaks Area, Callable 09/01/2014 @ 100
	5.750%, 09/01/2020		125		131
Norco, Special Tax, Community Facilities District #97-1, Callable 10/01/2015 @ 100 (AGTY)
	4.875%, 10/01/2030		500		493
Ohio County, Special District Excise Tax Revenue, Fort Henry Economic Development, Series B, Callable 03/01/2016 @ 100
	5.625%, 03/01/2036		155		155
Poway Unified School District, Special Tax, Community Facilities District #6-4, Callable 09/01/2006 @ 103
	5.000%, 09/01/2023		250		248
San Bernardino Redevelopment Agency, Tax Allocation, San Sevaine Redevelopment Project, Series A, Callable 09/01/2015 @ 100 (RAAI)
	5.000%, 09/01/2016		350		363

The accompanying notes are an integral part of the financial statements.

52      First American Funds Annual Report 2006

California Tax Free Fund (continued)
DESCRIPTION		PAR		VALUE
Solana Beach Public Financing Authority, Assessment Revenue, Callable 03/02/2007 @ 103
	5.000%, 09/02/2026	$	100	$	97
Southern California Logistics Airport Authority, Callable 06/01/2016 @ 100 (XLCA)
	4.125%, 12/01/2017		275		268
	4.500%, 12/01/2026		1,000		956
Stockton Public Financing Revenue, Assessment Districts, Senior Lien, Series A, Callable 09/02/2015 @ 100 (RAAI)
	4.375%, 09/02/2020		415		397
					4,971
Transportation – 1.0%
Puerto Rico Commonwealth Highway & Transportation Authority, Series X (MBIA)
	5.500%, 07/01/2015		100		110
San Francisco Airport Commission, SFO Fuel Company, Callable 01/01/2008 @ 102 (AMT) (FSA)
	5.625%, 01/01/2012		250		260
					370
Utilities – 13.2%
Banning Water Utility Authority, Enterprise Revenue, Referendum and Improvement Projects, Callable 11/01/2016 @ 100 (FGIC)
	5.000%, 11/01/2023		1,190		1,230
California Pollution Control Financing Authority, Solid Waste Disposal Revenue, Waste Management Incorporated Project, Series A-2, Callable 04/01/2015 @ 101 (AMT)
	5.400%, 04/01/2025		500		513
California Pollution Control Financing Authority, Solid Waste Disposal Revenue, Waste Management Incorporated Project, Series B, Callable 07/01/2015 @ 101 (AMT)
	5.000%, 07/01/2027		250		247
California State, Pre-refunded 10/01/2010 @ 100
	5.250%, 10/01/2019 (a)		460		485
California Statewide Communities Development Authority, Pollution Control Revenue, Southern California Edison Company, Series C, Mandatory Put 11/01/2016 @ 100 (FGIC)
	4.250%, 11/01/2033		500		493
California Statewide Communities Development Authority, Water Revenue, Series B, Callable 10/01/2016 @ 100 (FSA)
	4.750%, 10/01/2032		450		443
Compton Sewer Authority, Callable 09/01/2008 @ 102 (MBIA)
	5.375%, 09/01/2023		1,150		1,203
South Bayside Waste Management Authority, Callable 03/01/2009 @ 102 (AMBAC)
	5.750%, 03/01/2020		150		160
					4,774
Total Revenue Bonds					27,491
General Obligations – 16.8%
Acalanes Unified High School District, Zero Coupon Bond, Pre-refunded 08/01/2010 @ 70.92 (FGIC)
	5.560%, 08/01/2016 (a) (b)		700		421
California State, Callable 10/01/2010 @ 100
	5.250%, 10/01/2019		140		145
California State, Callable 02/01/2013 @ 100
	5.000%, 02/01/2024		700		714
East Side Union High School District, Santa Clara County, Series B (MBIA)
	5.100%, 02/01/2018		100		107
Glendora Unified School District, Series A, Pre-refunded 09/01/2010 @ 101 (FSA)
	5.350%, 09/01/2020 (a)		340		363
Jefferson Union High School District, San Mateo County, Series A (MBIA)
	6.250%, 08/01/2020		460		546
Los Angeles Unified School District Election of 2005, Series C (AMBAC)
	5.000%, 07/01/2015		500		532
Pleasant Valley School District, Ventura County, Series A (MBIA)
	5.850%, 02/01/2019		250		285
Pomona Unified School District, Series A (MBIA)
	5.950%, 02/01/2017		855		975
Puerto Rico Commonwealth, Government Development, Series B
	5.000%, 12/01/2014		200		206
Sacramento Unified School District, Series A, Pre-refunded 07/01/2009 @ 102
	5.750%, 07/01/2017 (a)		400		429
Vallejo City Unified School District, Series A (MBIA)
	5.900%, 08/01/2021		350		404
Ventura County Community College District, Series A, Callable 08/01/2012 @ 101 (MBIA)
	5.000%, 08/01/2018		910		945
Total General Obligations					6,072
Certificates of Participation – 3.5%
Escondido, Series A, Callable 09/01/2010 @ 101 (FGIC)
	5.625%, 09/01/2020		300		320
Los Angeles, Sonnenblick del Rio Senior Lien, Callable 11/01/2010 @ 101 (AMBAC) (MLO)
	6.000%, 11/01/2019		330		358
Ridgecrest Civic Center Project, Pre-refunded 03/01/2009 @ 101 (MLO)
	6.250%, 03/01/2021 (a)		250		267
West Kern County Water District, Pre-refunded 06/01/2010 @ 101 (MLO)
	5.200%, 06/01/2014 (a)		320		337
Total Certificates of Participation					1,282
Total Municipal Bonds (Cost $34,022)					34,845

First American Funds Annual Report 2006      53

Schedule of  Investments continued

California Tax Free Fund (concluded)
DESCRIPTION		SHARES/PAR		VALUE
Short-Term Investments – 2.8%
Money Market Fund – 2.8%
Blackrock Liquidity Funds			997,998	$	998
U.S. Treasury Obligation – 0.0%
U.S. Treasury Bill
	4.547%, 07/20/2006 (c)	$	10		10
Total Short-Term Investments (Cost $1,008)					1,008
Total Investments – 99.2% (Cost $35,030)					35,853
Other Assets and Liabilities, Net – 0.8%					289
Total Net Assets – 100.0%				$	36,142

(a)	Pre-refunded issues are typically backed by U.S. government obligations. These bonds mature at the call and price indicated.
(b)	Zero coupon bonds make no periodic interest payments, but are issued at deep discounts from par value. The rate shown is the effective yield at the time of purchase.
(c)	Yield shown is effective as of June 30, 2006.

AGTY – Assured Guaranty

AMBAC – American Municipal Bond Assurance Corporation

AMT – Alternative Minimum Tax. As of June 30, 2006, the aggregate market value of securities subject to the AMT was $1,242 or 3.4% of total net assets.

Convertible CABs –  Convertible Capital Appreciation Bonds initially pay no interest, but accrete in value from the date of issuance through the conversion date. At the conversion date, the bonds start to accrue and pay interest on a semiannual basis until final maturity.

CMI – California Mortgage Insurance Program

FGIC – Financial Guaranty Insurance Corporation

FNMA – Federal National Mortgage Association

FSA – Financial Security Assurance

GNMA – Government National Mortgage Association

MBIA – Municipal Bond Insurance Association

MLO – Municipal Lease Obligation

RAAI – Radian Asset Assurance Inc.

XLCA – XL Capital Assurance Inc.

Colorado Intermediate Tax Free Fund
DESCRIPTION	PAR		VALUE
Municipal Bonds – 98.5%
Revenue Bonds – 70.4%
Continuing Care Retirement Community – 1.2%
Colorado State Health Facilities Authority, Covenant Retirement Communities, Callable 12/01/2015 @ 100
5.000%, 12/01/2016	$	500	$	504
Education – 5.0%
Colorado State Educational & Cultural Facilities Authority, Bromley East Charter School Project, Escrowed to Maturity
6.250%, 09/15/2011 (a)		330		344
Colorado State Educational & Cultural Facilities Authority, Classical Academy Charter School Project, Escrowed to Maturity
6.375%, 12/01/2011 (a)		705		746
Colorado State Educational & Cultural Facilities Authority, Core Knowledge Charter School, Pre-refunded 11/01/2009 @ 100
6.850%, 11/01/2016 (b)		440		478
Colorado State Educational & Cultural Facilities Authority, Northwest Nazarene Project, Callable 11/01/2010 @ 102
4.500%, 11/01/2015		550		529
				2,097
Healthcare – 20.6%
Colorado State Health Facilities Authority, Boulder Hospital (MBIA)
5.000%, 10/01/2010		500		518
Colorado State Health Facilities Authority, Catholic Health Initiatives, Series A
5.000%, 03/01/2012		500		519
Colorado State Health Facilities Authority, Evangelical Lutheran Health Facilities, Callable 12/01/2010 @ 102
6.900%, 12/01/2025		350		384
Colorado State Health Facilities Authority, Evangelical Lutheran Health Facilities, Series A
4.200%, 06/01/2013		200		196
Colorado State Health Facilities Authority, Longmont United Hospital, Series B (RAAI)
5.250%, 12/01/2013		860		906
Colorado State Health Facilities Authority, National Jewish Medical & Research Center Project, Callable 01/01/2008 @ 100
5.375%, 01/01/2016		700		705
Colorado State Health Facilities Authority, Parkview Medical Center
5.500%, 09/01/2007		250		254
5.750%, 09/01/2008		250		258
5.500%, 09/01/2009		500		518
Colorado State Health Facilities Authority, Steamboat Springs Health Project, Callable 09/15/2008 @ 101
5.300%, 09/15/2009		205		205
Colorado State Health Facilities Authority, The Devereux Foundation, Callable 11/01/2012 @ 100 (RAAI)
4.200%, 11/01/2013		80		79
Colorado State Health Facilities Authority, Vail Valley Medical Center Project
5.000%, 01/15/2013		300		307

The accompanying notes are an integral part of the financial statements.

54      First American Funds Annual Report 2006

Colorado Intermediate Tax Free Fund (continued)
DESCRIPTION	PAR		VALUE
Colorado State Health Facilities Authority, Vail Valley Medical Center Project, Callable 01/15/2012 @ 100
5.750%, 01/15/2022	$	800	$	832
Colorado State Health Facilities Authority, Valley View Hospital Association Project, Series A (RAAI
5.000%, 05/15/2013		500		517
Delta County Memorial Hospital District, Callable 09/01/2013 @ 100
5.350%, 09/01/2017		500		509
La Junta County Hospital, Arkansas Valley Regional Medical Center Project
5.300%, 04/01/2007		320		321
5.400%, 04/01/2008		335		337
5.500%, 04/01/2009		355		360
Montrose Memorial Hospital
5.300%, 12/01/2013		260		266
Montrose Memorial Hospital, Callable 12/01/2013 @ 102
5.450%, 12/01/2014		390		401
University of Colorado Hospital Authority, Callable 11/15/2011 @ 100
5.000%, 11/15/2014		300		305
				8,697
Miscellaneous – 5.1%
Colorado Educational & Cultural Facilities Authority, Colorado Public Radio
4.800%, 07/01/2009		250		253
4.900%, 07/01/2010		265		269
Colorado Educational & Cultural Facilities Authority, National Conference of State Legislatures, Callable 06/01/2011 @ 100
5.250%, 06/01/2013		700		727
Denver City & County, Helen G. Bonfils Foundation Project, Series B, Callable 12/01/2007 @ 100
5.125%, 12/01/2017		900		910
				2,159
Recreational Facility Authority – 0.5%
Hyland Hills Metropolitan Park & Recreation District, Series A, Callable 12/15/2007 @ 101
6.100%, 12/15/2009		210		216
Tax Revenue – 4.4%
Larimer County Sales & Use Tax (AMBAC)
5.000%, 12/15/2010		460		480
Longmont Sales & Use Tax, Pre-refunded 11/15/2010 @ 100
5.500%, 11/15/2015 (b)		500		531
Superior Open Space Sales & Use Tax
4.500%, 06/01/2013		100		100
4.600%, 06/01/2014		225		224
Westminster Sales & Use Tax, Series A, Callable 12/01/2007 @ 102 (FGIC)
5.250%, 12/01/2011		500		518
				1,853
Transportation – 15.9%
Colorado Department of Transportation (AMBAC)
6.000%, 06/15/2010		1,000		1,077
E-470 Public Highway Authority, Convertible CABs, Series C (MBIA)
0.000% through 09/01/2011,
thereafter 5.000%, 09/01/2017		500		403
E-470 Public Highway Authority, Series B, Zero Coupon Bond (MBIA)
5.250%, 09/01/2017 (c)		1,575		934
6.400%, 09/01/2019 (c)		960		509
5.396%, 09/01/2022 (c)		1,000		452
Eagle County Air Terminal Revenue, Airport Terminal Improvement Project, Series B, Callable 05/01/2016 @ 100 (AMT)
5.250%, 05/01/2020		200		199
Northwest Parkway Public Highway Authority, Convertible CABs (FSA)
0.000% through 06/15/2011,
thereafter 5.200%, 06/15/2014		750		623
Northwest Parkway Public Highway Authority, Convertible CABs (AMBAC)
0.000% through 06/15/2011,
thereafter 5.250%, 06/15/2015		2,000		1,667
Northwest Parkway Public Highway Authority, Convertible CABs (AMBAC)
0.000% through 06/15/2011,
thereafter 5.350%, 06/15/2016		1,000		840
				6,704
Utilities – 17.7%
Adams County Pollution Control Revenue, Public Service Project, Series A, Callable 09/01/2015 @ 100
4.375%, 09/01/2017		1,000		985
Arapahoe County Water & Wastewater Authority, Escrowed to Maturity
5.550%, 12/01/2006 (a)		140		141
5.650%, 12/01/2007 (a)		150		153
5.750%, 12/01/2008 (a)		160		166
Arapahoe County Water & Wastewater Authority, Pre-refunded 12/01/2009 @ 100
6.000%, 12/01/2011 (b)		185		196
Boulder Water & Sewer
5.750%, 12/01/2010		1,545		1,659
Broomfield Water Activity Enterprise, Callable 12/01/2010 @ 101 (MBIA)
5.500%, 12/01/2017		500		533
Colorado State Water Resources & Power Development Authority, Small Water Resources, Series A, Callable 11/01/2010 @ 100 (FGIC)
5.700%, 11/01/2015		100		107
Denver City & County Wastewater, Callable 11/01/2012 @ 100 (FGIC)
5.250%, 11/01/2017		1,260		1,332
Inverness Water & Sanitation District, Arapahoe & Douglas Counties, Series A (RAAI)
4.250%, 12/01/2016		600		588
Platte River Power Authority, Series DD, Callable 06/01/2007 @ 102 (MBIA)
5.375%, 06/01/2017		875		903
Ute Water Conservancy District (MBIA)
6.000%, 06/15/2009		680		720
				7,483
Total Revenue Bonds				29,713
General Obligations – 20.6%
Arapahoe County School District #5, Cherry Creek, Pre-refunded 12/15/2009 @ 100 (STAID)
5.500%, 12/15/2011 (b)		1,000		1,048
Cordillera Metropolitan District, Eagle County (RAAI)
5.000%, 12/01/2013		620		642

First American Funds Annual Report 2006      55

Schedule of  Investments continued

Colorado Intermediate Tax Free Fund (continued)
DESCRIPTION		PAR/SHARES		VALUE
Denver West Metropolitan School District
	4.125%, 12/01/2014	$	150	$	143
	4.200%, 12/01/2015		480		458
Douglas County School District #RE-1, Douglas & Elbert Counties, Series B, Zero Coupon Bond (FSA) (STAID)
	4.230%, 12/15/2015 (c)		1,255		809
Erie, Series A (MBIA)
	4.500%, 12/01/2014 (d)		240		246
Garfield County School District #RE-2, Callable 12/01/2012 @ 100 (FSA) (STAID)
	5.250%, 12/01/2019		1,530		1,619
High Plains Metropolitan District, Series B (LOC: Compass Bank)
	4.375%, 12/01/2015		980		969
Jefferson County School District #R-001 (MBIA) (STAID)
	6.250%, 12/15/2009		1,000		1,075
SBC Metropolitan School District (ACA)
	4.250%, 12/01/2015		445		426
Westglenn Metropolitan District, Callable 12/01/2009 @ 100
	6.000%, 12/01/2014		1,220		1,266
Total General Obligations					8,701
Certificates of Participation – 7.5%
Garfield County Building Corporation (AMBAC) (MLO)
	5.750%, 12/01/2009		400		423
Garfield County Building Corporation, Callable 12/01/2009 @ 101 (AMBAC) (MLO)
	5.300%, 12/01/2011		400		419
Glendale, Callable 12/01/2016 @ 100 (MLO) (XLCA)
	4.500%, 12/01/2017		400		401
Pueblo County, Capital Construction, Callable 12/01/2015 @ 100 (MLO)
	4.400%, 12/01/2016		410		396
Routt County Public Building Authority, Justice Center Project, Callable 12/01/2012 @ 100 (AMBAC) (MLO)
	4.000%, 12/01/2013		500		492
Westminster Recreational Facilities, Callable 09/01/2009 @ 101 (MBIA) (MLO)
	5.200%, 09/01/2010		1,000		1,044
Total Certificates of Participation					3,175
Total Municipal Bonds (Cost $40,310)					41,589
Short-Term Investment – 1.6%
First American Tax Free Obligations Fund, Class Z (e)
	(Cost $687)		686,597		687
Total Investments – 100.1% (Cost $40,997)					42,276
Other Assets and Liabilities, Net – (0.1)%					(38	)
Total Net Assets – 100.0%				$	42,238

(a)	Escrowed to Maturity issues are typically backed by U.S. government obligations. If callable, these bonds may still be subject to call at the call date and price indicated.
(b)	Pre-refunded issues are typically backed by U.S. government obligations. These bonds mature at the call date and price indicated.
(c)	Zero coupon bonds make no periodic interest payments, but are issued at deep discounts from par value. The rate shown is the effective yield at the time of purchase.
(d)	Security purchased on a when-issued basis. On June 30, 2006, the total cost of investments purchased on a when-issued basis was $246 or 0.6% of total net assets. See note 2 in Notes to Financial Statements.
(e)	Investment in affiliated security. This money market fund is advised by FAF Advisors, Inc., which also serves as advisor for this fund. See note 3 in Notes to Financial Statements.

ACA – American Capital Access

AMBAC – American Municipal Bond Assurance Corporation

AMT – Alternative Minimum Tax. As of June 30, 2006, the aggregate market value of securities subject to the AMT was $199, which represents 0.5% of total net assets.

Convertible CABs – Convertible Capital Appreciation Bonds initially pay no interest, but accrete in value from the date of issuance through the conversion date. At the conversion date, the bonds start to accrue and pay interest on a semiannual basis until final maturity.

FGIC – Financial Guaranty Insurance Corporation

FSA – Financial Security Assurance

MBIA – Municipal Bond Insurance Association

MLO – Municipal Lease Obligation

RAAI – Radian Asset Assurance Inc.

STAID – State Aid Withholding

XLCA – XL Capital Assurance Inc.

The accompanying notes are an integral part of the financial statements.

56      First American Funds Annual Report 2006

Colorado Tax Free Fund
DESCRIPTION		PAR		VALUE
Municipal Bonds – 100.1%
Revenue Bonds – 71.3%
Continuing Care Retirement Communities – 5.1%
Colorado State Health Facilities Authority, Covenant Retirement Communities, Callable 12/01/2015 @ 100
	5.250%, 12/01/2025	$	200	$	201
Colorado State Health Facilities Authority, Covenant Retirement Communities, Series B, Callable 12/01/2012 @ 101
	6.125%, 12/01/2033		350		372
North Carolina Community Health Care Facilities, Presbyterian Homes, Callable 10/01/2016 @ 100
	5.400%, 10/01/2027 (c)		220		217
South Dakota Health & Educational Facilities Authority, Westhills Village Retirement Community, Callable 09/01/2014 @ 100
	5.000%, 09/01/2025 (c)		325		323
					1,113
Education – 5.6%
Colorado State Board of Agriculture, Auxiliary Facility Systems, Callable 03/01/2007 @ 100 (AMBAC)
	5.125%, 03/01/2017		200		203
Colorado State Educational & Cultural Facilities Authority, Ave Marie School Project, Callable 12/01/2010 @ 100 (RAAI)
	6.000%, 12/01/2016		200		214
Colorado State Educational & Cultural Facilities Authority, Classical Academy Charter School Project, Escrowed to Maturity
	6.375%, 12/01/2011 (a)		490		518
Colorado State Educational & Cultural Facilities Authority, Northwest Nazarene Project, Callable 11/01/2010 @ 102
	4.500%, 11/01/2015		300		289
					1,224
Healthcare – 21.0%
Boulder County Longmont United Hospital Project (RAAI)
	5.300%, 12/01/2010		330		345
Colorado State Health Facilities Authority, Evangelical Lutheran Health Facilities, Callable 12/01/2010 @ 102
	6.900%, 12/01/2025		150		165
Colorado State Health Facilities Authority, Evangelical Lutheran Health Facilities, Series A, Callable 06/01/2014 @ 100
	5.250%, 06/01/2034		230		233
Colorado State Health Facilities Authority, Longmont United Hospital, Series B, Callable 12/01/2016 @ 100 (RAAI)
	4.625%, 12/01/2024		325		313
Colorado State Health Facilities Authority, National Jewish Medical & Research Center Project, Callable 01/01/2008 @ 100
	5.375%, 01/01/2016		300		302
Colorado State Health Facilities Authority, Parkview Medical Center
	5.600%, 09/01/2011		300		317
Colorado State Health Facilities Authority, Portercare Adventist Project, Pre-refunded 11/15/2011 @ 101
	6.500%, 11/15/2023 (b)		600		674
Colorado State Health Facilities Authority, Poudre Valley Health Care, Series F, Callable 03/01/2015 @ 100
	5.000%, 03/01/2025		350		347
Colorado State Health Facilities Authority, Steamboat Springs Health Project, Callable 09/15/2008 @ 101
	5.300%, 09/15/2009		205		205
Colorado State Health Facilities Authority, Vail Valley Medical Center Project, Callable 01/15/2015 @ 100
	5.000%, 01/15/2020		250		253
Colorado State Health Facilities Authority, Vail Valley Medical Center, Callable 01/15/2012 @ 100
	5.800%, 01/15/2027		500		518
Delta County Memorial Hospital District, Callable 09/01/2013 @ 100
	5.350%, 09/01/2017		220		224
Halifax Medical Center, Hospital Revenue, Series A, Callable 06/01/2016 @ 100
	5.000%, 06/01/2038		325		314
La Junta, Arkansas Valley Regional Medical Center Project, Callable 04/01/2009 @ 101
	6.100%, 04/01/2024		100		103
Montrose Memorial Hospital, Callable 12/01/2013 @ 102
	6.375%, 12/01/2023		130		142
New Hampshire Health & Educational Facilities Authority, The Memorial Hospital, Callable 06/01/2016 @ 100
	5.250%, 06/01/2036		100		98
					4,553
Housing – 4.3%
Burlingame Housing, Multifamily Revenue, Housing Project, Callable 11/01/2015 @ 100 (MBIA)
	4.500%, 11/01/2029		750		719
Colorado State Housing & Finance Authority, Multifamily Project, Class I, Series B-4, Callable 10/01/2010 @ 100
	5.900%, 04/01/2031		100		104
Colorado State Housing & Finance Authority, Series E-2, Callable 08/01/2010 @ 105 (AMT)
	7.000%, 02/01/2030		60		63
Colorado State Housing & Finance Authority, Single Family Housing Program, Series A-2, Callable 10/01/2009 @ 105 (AMT)
	7.450%, 10/01/2016		10		10
Colorado State Housing & Finance Authority, Single Family Housing Program, Series B-2, Callable 04/01/2010 @ 105 (AMT)
	7.100%, 04/01/2017		35		36
					932
Miscellaneous – 5.0%
Aleutians East Burough Project, Aleutian Pribilof Islands, Callable 06/01/2016 @ 100 (ACA)
	5.500%, 06/01/2036		200		205

First American Funds Annual Report 2006      57

Schedule of  Investments continued

Colorado Tax Free Fund (continued)
DESCRIPTION		PAR		VALUE
Colorado State Educational & Cultural Facilities Authority, National Conference of State Legislatures, Callable 06/01/2011 @ 100
	5.250%, 06/01/2021	$	750	$	767
Denver City & County, Helen G. Bonfils Foundation Project, Series B, Callable 12/01/2007 @ 100
	5.125%, 12/01/2017		100		101
					1,073
Recreational Facility Authority – 2.2%
Denver Convention Center, Hotel Authority Revenue, Callable 11/01/2016 @ 100 (XLCA)
	4.500%, 12/01/2025		500		479
Tax Revenue – 5.4%
Douglas County Sales & Use Tax Revenue, Callable 10/15/2010 @ 100 (FSA)
	5.625%, 10/15/2020		200		212
Highlands Ranch Metropolitan School District #2, Callable until 06/15/2007 @ 100 (FSA)
	5.000%, 06/15/2016		20		20
Larimer County Sales & Use Tax, Callable 12/15/2010 @ 100 (AMBAC)
	5.625%, 12/15/2018		100		107
Mountain Village Metropolitan District, San Miguel County, Callable 12/01/2007 @ 101 (MBIA)
	5.200%, 12/01/2017		200		205
Ohio County, Special District Excise Tax Revenue, Fort Henry Economic Development, Series B, Callable 03/01/2016 @ 100
	5.625%, 03/01/2036		100		100
Superior Open Space Sales & Use Tax, Callable 06/01/2016 @ 100
	5.000%, 06/01/2026		330		325
Vanderburgh County, Industrial Redevelopment Commission, Tax Increment, Callable 08/01/2016 @ 100
	5.000%, 02/01/2026		210		211
					1,180
Transportation – 11.5%
Denver City & County Airport, Series E, Callable 11/15/2007 @ 101 (MBIA)
	5.250%, 11/15/2023		500		512
Eagle County Air Term Revenue, Airport Term Improvement Project, Series B, Callable 05/01/2016 @ 100 (AMT)
	5.250%, 05/01/2020		110		109
Northwest Parkway Public Highway Authority, Convertible CABs (FSA)
	0.000% through 06/15/2011,
	thereafter 5.200%, 06/15/2014		750		622
Northwest Parkway Public Highway Authority, Convertible CABs (AMBAC)
	0.000% through 06/15/2011,
	thereafter 5.250%, 06/15/2015		500		417
Northwest Parkway Public Highway Authority, Convertible CABs, Callable 06/15/2016 @ 100 (AMBAC)
	0.000% through 06/15/2011,
	thereafter 5.700%, 06/15/2021		1,000		845
					2,505
Utilities – 11.2%
Arapahoe County Water & Wastewater (MBIA) (MLO)
	5.000%, 12/01/2026		250		256
Boulder Water & Sewer, Callable 12/01/2010 @ 100
	5.700%, 12/01/2019		300		319
Broomfield Water Activity Enterprise, Callable 12/01/2010 @ 101 (MBIA)
	5.500%, 12/01/2019		400		426
Colorado Housing & Finance Authority, Waste Disposal Management Income Project (AMT)
	5.700%, 07/01/2018		250		262
Inverness Water & Sanitation District, Arapahoe & Douglas Counties, Series A, Callable 12/01/2016 @ 100 (RAAI)
	4.500%, 12/01/2019		325		319
Fort Collins Wastewater Utility Enterprise, Callable 12/01/2010 @ 100 (FSA)
	5.500%, 12/01/2020		300		317
Platte River Power Authority, Series DD, Callable 06/01/2007 @ 102 (MBIA)
	5.375%, 06/01/2017		500		516
					2,415
Total Revenue Bonds					15,474
General Obligations – 14.3%
Antelope Water System, Callable until 12/01/2015 @ 100
	4.875%, 12/01/2025		175		170
Boulder Open Space Acquisition, Callable 08/15/2010 @ 100
	5.450%, 08/15/2016		350		369
El Paso County School District #49, Falcon, Series A, Callable 12/01/2009 @ 105 (FSA) (STAID)
	6.000%, 12/01/2018		200		221
Grand County School District #002, East Grand, Series B, Callable 12/01/2014 @ 100 (FSA) (STAID)
	5.000%, 12/01/2023		500		516
Larimer, Weld & Boulder Counties School District #R-2J, Thompson, Callable until 12/15/2015 @ 100 (MBIA)
	5.000%, 12/15/2020		1,250		1,301
Midcities Metropolitan School District #2, Callable 12/01/2016 @ 100 (RAAI)
	5.125%, 12/01/2030 (c)		200		203
Puerto Rico Commonwealth, Government Development, Series B
	5.000%, 12/01/2014		200		206
SBC Metropolitan District, Callable 12/01/2015 @ 100 (ACA)
	5.000%, 12/01/2025		115		114
Total General Obligations					3,100
Certificates of Participation – 14.5%
Arapahoe County Building Finance Authority, Pre-refunded 02/15/2010 @ 100 (AMBAC) (MLO)
	5.250%, 02/15/2019 (b)		350		364
	5.250%, 02/15/2021 (b)		650		677
Broomfield County, Westminster Open Space Foundation, Callable 12/01/2016 @ 100
	4.625%, 12/01/2025		330		318

The accompanying notes are an integral part of the financial statements.

58      First American Funds Annual Report 2006

Colorado Tax Free Fund (continued)
DESCRIPTION		PAR/SHARES		VALUE
Broomfield County, Open Space Park & Recreation Facilities, Callable 12/01/2010 @ 100 (AMBAC) (MLO)
	5.500%, 12/01/2020	$	800	$	845
Colorado Springs Old City Hall Project, Callable 12/01/2010 @ 100 (FSA) (MLO)
	5.500%, 12/01/2017		200		211
	5.500%, 12/01/2020		200		211
Garfield County, Pre-refunded 12/01/2009 @ 101 (AMBAC) (MLO)
	5.750%, 12/01/2019 (b)		300		320
Pueblo County, Capital Construction, Callable 12/01/2015 @ 100 (MLO)
	5.000%, 12/01/2024		200		201
Total Certificates of Participation					3,147
Total Municipal Bonds (Cost $20,861)					21,721
Short-Term Investments – 2.7%
Money Market Fund – 2.5%
First American Tax Free Obligations Fund, Class Z (d)			550,440		550
U.S. Treasury Obligation – 0.2%
U.S. Treasury Bill
	4.656%, 07/20/2006 (e)	$	25		25
Total Short-Term Investments (Cost $575)					575
Total Investments 102.8% (Cost $21,436)					22,296
Other Assets and Liabilities, Net – (2.8)%					(601	)
Total Net Assets – 100.0%				$	21,695

(a)	Escrowed to Maturity issues are typically backed by U.S. government obligations. If callable, these bonds may still be subject to call at the call date and price indicated.
(b)	Pre-refunded issues are typically backed by U.S. government obligations. These bonds mature at the call date and price indicated.
(c)	Security purchased on a when-issued basis. On June 30, 2006, the total cost of investments purchased on a when-issued basis was $743 or 3.4% of total net assets. See note 2 in Notes to Financial Statements.
(d)	Investment in affiliated security. This money market fund is advised by FAF Advisors, Inc., which also serves as advisor for this fund. See note 3 in Notes to Financial Statements.
(e)	Security has been deposited as initial margin on open futures contracts. Yield shown is the effective yield as of June 30, 2006. See note 2 in Notes to Financial Statements.

ACA – American Capital Access

AMBAC – American Municipal Bond Assurance Corporation

AMT – Alternative Minimum Tax. As of June 30, 2006, the aggregate market value of securities subject to the AMT was $480, which represents 2.2% of total net assets.

Convertible CABs – Convertible Capital Appreciation Bonds initially pay no interest, but accrete in value from the date of issuance throughout the conversion date. At the conversion date, the bonds start to accrue and pay interest on a semiannual basis until final maturity.

FSA – Financial Security Assurance

MBIA – Municipal Bond Insurance Association

MLO – Municipal Lease Obligation

RAAI – Radian Asset Assurance Inc.

STAID – State Aid Withholding

XLCA – XL Capital Assurance Inc.

Schedule of Open Futures Contract

	Number of		Notional
	Contracts		Contract			Settlement		Unrealized
	Sold		Value			Month		Appreciation
Description
U.S. Treasury 10 Year Note Futures		(15)	$	(1,573	)		September 2006	$	15

First American Funds Annual Report 2006      59

Schedule of  Investments continued

Intermediate Tax Free Fund
DESCRIPTION		PAR		VALUE
Municipal Bonds – 98.7%
Alabama – 1.2%
Revenue Bonds – 1.2%
Alabama State Docks Department, Callable 10/01/2008 @ 102 (MBIA)
	5.250%, 10/01/2010	$	3,000	$	3,138
Anniston Regional Medical Center Board, Northeast Alabama Regional Medical Center Project, Escrowed to Maturity
	8.000%, 07/01/2011 (a)		1,400		1,553
Health Care Authority for Baptist Health, Series D
	5.000%, 11/15/2015		800		813
Montgomery BMC Special Care Facilities Finance Authority, Baptist Health, Convertible CABs, Series A-2, Pre-refunded 11/15/2014 @ 100, (MBIA)
	0.000% through 11/15/2007,
	thereafter 5.000%, 11/15/2016 (b)		2,000		1,948
					7,452
Alaska – 0.1%
Revenue Bond – 0.1%
Aleutians East Burough Project, Aleutian Pribilof Islands (ACA)
	4.375%, 06/01/2015		400		389
Arizona – 2.8%
Revenue Bonds – 1.6%
Arizona Health Facilities Authority, The Terraces Project, Series A, Callable 11/15/2013 @ 101
	7.500%, 11/15/2023		3,300		3,670
Phoenix Street & Highway User, Callable until 06/30/2009 @ 100
	6.500%, 07/01/2009		180		180
Phoenix Street & Highway User, Callable until 06/30/2011 @ 100
	6.250%, 07/01/2011		900		902
Tempe Industrial Development Authority, Friendship Village Project, Series A
	5.375%, 12/01/2013		1,300		1,287
Tucson Airport Authority (FSA)
	5.000%, 06/01/2013		3,760		3,938
					9,977
General Obligation – 0.2%
Maricopa County School District #69, Paradise Valley (MBIA)
	5.300%, 07/01/2011		1,000		1,061
Certificates of Participation – 1.0%
Arizona Board of Regents, University of Arizona & Arizona State University, Biomed Project, Callable 06/01/2016 @ 100 (AMBAC)
	4.100%, 06/01/2017		340		331
	4.150%, 06/01/2018		1,000		971
Arizona State Municipal Financing Program, Escrowed to Maturity (MLO)
	8.750%, 08/01/2007 (a)		1,500		1,578
Arizona State Municipal Financing Program, Series 15, Escrowed to Maturity (MLO)
	8.750%, 08/01/2007 (a)		2,085		2,192
Northern Arizona University, Research Projects, Callable 09/01/2015 @ 100 (AMBAC) (MLO)
	4.250%, 09/01/2016		1,405		1,384
					6,456
					17,494
Arkansas – 0.9%
Revenue Bonds – 0.9%
Pulaski County, Residential Housing Facilities Board, Escrowed to Maturity (FHA) (VA)
	7.250%, 06/01/2010 (a)		1,675		1,723
University of Arkansas, Fayetteville, Series B, Callable 11/01/2015 @ 100 (FGIC)
	4.500%, 11/01/2016		2,000		2,030
University of Arkansas, UAMS Campus (FGIC)
	5.000%, 03/01/2015		1,000		1,056
Washington County Hospital Revenue, Regional Medical Center, Series B, Callable 02/01/2015 @ 100
	5.000%, 02/01/2016		1,145		1,169
					5,978
California – 6.2%
Revenue Bonds – 3.3%
Alameda Corridor Transportation Authority, Zero Coupon Bond (AMBAC)
	4.650%, 10/01/2014 (c)		2,000		1,388
Association of Bay Area Governments Finance Authority for Nonprofit Corporations, Elder Care Alliance (CMI)
	4.500%, 08/15/2012		335		337
Association of Bay Area Governments Finance Authority for Nonprofit Corporations, Elder Care     Alliance, Callable 08/15/2014 @ 100 (CMI)
	5.000%, 08/15/2017		1,215		1,235
Association of Bay Area Governments Financial Authority, Archstone Redwood Housing Project, Series A
	5.300%, 10/01/2008		290		295
Bell Community Housing Authority, Lease Revenue, Callable 10/01/2015 @ 100 (AMBAC) (MLO)
	5.000%, 10/01/2025		545		559
California Educational Facilities Authority, Lutheran University, Series C, Callable 10/01/2014 @ 100
	5.000%, 10/01/2024		1,000		1,007
California Municipal Financial Authority, Solid Waste Disposal Revenue, Waste Management Incorporated Project, Mandatory Put 09/01/2009 @ 100 (AMT)
	4.100%, 09/01/2014		250		249
California State Department of Water, Series A, Pre-refunded 05/01/2012 @ 101
	5.875%, 05/01/2016 (b)		2,000		2,220
California Statewide Communities Development Authority, Archstone Seascape, Mandatory Put 06/01/2008 @ 100
	5.250%, 06/01/2029		1,000		1,015
California Statewide Communities Development Authority, Elder Care Alliance, Series A
	7.250%, 11/15/2011		1,450		1,502

The accompanying notes are an integral part of the financial statements.

60      First American Funds Annual Report 2006

Intermediate Tax Free Fund (continued)
DESCRIPTION		PAR		VALUE
California Statewide Communities Development Authority, Health Facilities, Adventist Health, Series A, Callable 03/01/2015 @ 100
	5.000%, 03/01/2030	$	700	$	698
California Statewide Communities Development Authority, Kaiser Permanente, Series C, Mandatory Put 06/01/2012 @ 100
	3.850%, 11/01/2029		1,180		1,146
California Statewide Communities Development Authority, Kaiser Permanente, Series I, Mandatory Put 05/01/2011 @ 100
	3.450%, 04/01/2035		500		478
California Statewide Communities Development Authority, Los Angeles Jewish Home (CMI)
	5.000%, 11/15/2012		1,210		1,256
Golden State Tobacco Securitization, Pre-refunded 06/01/2010 @ 100 (MLO)
	5.600%, 06/01/2028 (b)		2,450		2,594
Golden State Tobacco Securitization, Series A, Convertible CABs, Callable 06/01/2018 @ 100, (FSA) (MLO)
	0.000% through 06/01/2010,
	thereafter 4.550%, 06/01/2022		1,630		1,319
Golden State Tobacco Securitization, Series B, Escrowed to Maturity (MLO)
	5.000%, 06/01/2012 (a)		1,000		1,052
San Bernardino County Redevelopment Agency, Tax Allocation, San Sevaine Redevelopment Project, Series A, Callable 09/01/2015 @ 100 (RAAI)
	5.000%, 09/01/2016		575		597
Woodland Financial Authority, Callable 03/01/2013 @ 102 (MLO) (XLCA)
	4.700%, 03/01/2019		815		823
	4.800%, 03/01/2020		855		867
					20,637
General Obligations – 2.6%
ABC Unified School District, Series A (MBIA)
	4.900%, 02/01/2020		1,615		1,693
California State Economic Recovery, Series A (FGIC)
	5.250%, 07/01/2014		1,000		1,077
California State, Callable 11/01/2011 @ 100
	5.000%, 11/01/2018		5,000		5,131
California State, Callable 08/01/2013 @ 100
	5.000%, 02/01/2016		1,000		1,042
	5.000%, 02/01/2017		2,000		2,075
California State, Callable 02/01/2014 @ 100
	5.000%, 02/01/2021		1,500		1,542
California State, Callable 04/01/2014 @ 100
	5.125%, 04/01/2024		500		516
Placentia-Yorba Linda Unified School District, Callable 08/01/2014 @ 100 (FGIC)
	5.000%, 08/01/2016		500		527
Roseville Joint Unified High School District, Callable 08/01/2011 @ 101
	5.100%, 08/01/2019		390		402
San Mateo Unified High School District, Series B, Zero Coupon Bond (FGIC)
	5.150%, 09/01/2017 (c)		1,000		594
Santa Monica Community College District, Capital Appreciation, 2002 Election, Series C, Zero Coupon Bond, Callable 08/01/2015 @ 95.722 (MBIA)
	4.420%, 08/01/2016 (c)		2,000		1,242
Victor Elementary School District, Series A, Zero Coupon Bond (FGIC)
	5.660%, 08/01/2023 (c)		2,030		873
					16,714
Certificate of Participation – 0.3%
Bakersfield, Convention Center, Series A (AMBAC)
	5.000%, 04/01/2016		1,665		1,760
					39,111
Colorado – 9.6%
Revenue Bonds – 7.1%
Adams County Pollution Control Revenue, Public Service Company Colorado Project, Series A, Callable 09/01/2015 @ 100 (MBIA)
	4.375%, 09/01/2017		5,000		4,927
Arapahoe County, Single Family, Escrowed to Maturity, Zero Coupon Bond
	3.340%, 09/01/2010 (a) (c)		9,320		7,843
Colorado Department of Transportation (AMBAC)
	6.000%, 06/15/2008		3,000		3,123
Colorado Health Facilities Authority, Parkview Medical Center, Callable 09/01/2013 @ 100
	5.000%, 09/01/2016		640		648
Colorado State Educational & Cultural Facilities Authority, Bromley East Charter School Project, Pre-refunded 09/15/2011 @ 100
	6.750%, 09/15/2015 (b)		1,200		1,333
Colorado State Educational & Cultural Facilities     Authority, Classical Academy Charter School Project, Escrowed to Maturity
	6.375%, 12/01/2011 (a)		700		740
Colorado State Educational & Cultural Facilities Authority, Classical Academy Charter School Project, Pre-refunded 12/01/2011 @ 100
	6.750%, 12/01/2016 (b)		1,500		1,696
	7.250%, 12/01/2021 (b)		1,500		1,729
Colorado State Educational & Cultural Facilities Authority, Pinnacle Charter School Project, Escrowed to Maturity
	5.250%, 12/01/2011 (a)		1,175		1,218
Colorado State Health Facilities Authority, Catholic Health Initiatives, Series A
	5.000%, 03/01/2012		745		774
Colorado State Health Facilities Authority, Covenant Retirement Communities, Callable 12/01/2015 @ 100
	5.000%, 12/01/2016		500		503
Colorado State Health Facilities Authority, Longmont United Hospital, Series B (RAAI)
	4.250%, 12/01/2015		1,250		1,224
Colorado State Health Facilities Authority, Retirement Facilities, Escrowed to Maturity, Zero Coupon Bond
	5.500%, 07/15/2020 (a) (c)		10,000		5,054
Colorado State Health Facilities Authority, Valley View Hospital Association Project, Series A (RAAI)
	5.000%, 05/15/2013		405		419

First American Funds Annual Report 2006      61

Schedule of  Investments continued

Intermediate Tax Free Fund (continued)
DESCRIPTION		PAR		VALUE
Colorado State Housing Finance Authority, Series A-2, Callable until 10/31/2006 @ 104.50
	7.150%, 11/01/2014	$	55	$	56
Denver Convention Center, Hotel Authority Revenue, Callable 11/01/2016 @ 100 (XLCA)
	4.125%, 12/01/2016		1,000		975
E-470 Public Highway Authority, Convertible CABs, Series C, (MBIA)
	0.000% through 09/01/2011,
	thereafter 5.000%, 09/01/2017		1,500		1,209
Mesa County, Escrowed to Maturity, Zero Coupon Bond
	3.539%, 12/01/2011 (a) (c)		5,500		4,386
Montrose Memorial Hospital, Callable 12/01/2013 @ 102
	5.700%, 12/01/2017		2,170		2,264
Northwest Parkway Public Highway Authority, Convertible CABs, (AMBAC)
	0.000% through 06/15/2011,
	thereafter 5.250%, 06/15/2015		2,750		2,292
Superior Metropolitan School District #1, Special Revenue (AMBAC)
	4.000%, 12/01/2014		1,020		1,004
University of Northern Colorado, Callable 06/01/2015 @ 100 (FSA)
	4.000%, 06/01/2016		1,505		1,469
					44,886
General Obligations – 2.2%
Denver City & County School District #1, Callable 12/01/2013 @ 100 (FSA) (STAID)
	4.000%, 12/01/2014		4,545		4,491
El Paso County School District #2, Harrison, Callable 12/01/2011 @ 100 (FGIC) (STAID)
	5.500%, 12/01/2016		1,280		1,368
El Paso County School District #49, Falcon, Callable 12/01/2016 @ 100 (MBIA)
	5.000%, 12/01/2017		1,000		1,055
Erie, Series A, Callable 12/01/2016 @ 100 (MBIA)
	4.500%, 12/01/2017 (d)		500		505
High Plains Metropolitan District, Series B (LOC: Compass Bank)
	4.375%, 12/01/2015		380		376
Jefferson County School District #R-1 (MBIA)
	6.500%, 12/15/2011		5,100		5,715
Midcities Metropolitan District #2 (RAAI)
	4.875%, 12/01/2016 (d)		385		394
					13,904
Certificates of Participation – 0.3%
Arapahoe County (AMBAC) (MLO)
	4.000%, 02/15/2014		440		433
Colorado State Department of Corrections, State Penitentiary II Project, Series B (AMBAC) (MLO)
	5.000%, 03/01/2014		1,250		1,311
					1,744
					60,534
Connecticut – 0.9%
Revenue Bonds – 0.9%
Connecticut State Health & Educational Facilities Authority, Griffin Hospital, Series B (RAAI)
	5.000%, 07/01/2014		1,185		1,232
Mashantucket Western Pequot Tribe, Series A, Callable 09/01/2006 @ 102, Pre-refunded 09/01/2007 @ 101
	6.400%, 09/01/2011 (b) (e)		4,170		4,334
					5,566
Florida – 0.8%
Revenue Bonds – 0.4%
Lee County Industrial Development Authority, Shell Point Village Health Project, Series A
	5.500%, 11/15/2008		1,000		1,016
Palm Beach County Health Facilities Authority, Abbey Delray South, Life Care Retirement Community
	5.250%, 10/01/2013		1,400		1,436
					2,452
Certificate of Participation – 0.4%
Clay County School Board, Series B, Callable 07/01/2015 @ 100 (MBIA) (MLO)
	5.000%, 07/01/2018		2,205		2,288
					4,740
Georgia – 0.3%
Revenue Bond – 0.2%
Cherokee County Water & Sewer Authority, Escrowed to Maturity, Callable 08/01/2006 @ 101.50 (MBIA)
	11.250%, 08/01/2007 (a)		1,045		1,091
General Obligations – 0.1%
Fayette County School District,     Convertible CABs, (FSA)
	0.000% through 09/01/2010,
	thereafter 4.150%, 03/01/2014		500		409
Fayette County School District, Convertible CABs, (FSA)
	0.000% through 09/01/2010,
	thereafter 4.250%, 03/01/2015		265		216
Fayette County School District, Convertible CABs, (FSA)
	0.000% through 09/10/2010,
	thereafter 4.350%, 03/01/2016		300		243
					868
					1,959
Idaho – 0.2%
Certificates of Participation – 0.2%
Madison County Hospital Revenue
	5.000%, 09/01/2012		500		511
	5.250%, 09/01/2015		295		304
	5.250%, 09/01/2016		500		515
					1,330
Illinois – 17.4%
Revenue Bonds – 8.7%
Chicago, Midway Airport Project, Series C (MBIA)
	5.500%, 01/01/2014		1,300		1,400
Chicago, Park District, Parking Facilities Authority, Escrowed to Maturity (ACA)
	5.500%, 01/01/2008 (a)		3,585		3,670
Chicago, Single Family Mortgages, Series A, Callable until 02/28/2007 @ 103 (AMT) (FHLMC) (FNMA) (GNMA)
	5.250%, 03/01/2013		10		10

The accompanying notes are an integral part of the financial statements.

62      First American Funds Annual Report 2006

Intermediate Tax Free Fund (continued)
DESCRIPTION		PAR		VALUE
Granite Single Family Mortgage, Escrowed to Maturity
	7.750%, 10/01/2011 (a)	$	635	$	701
Chicago Water, Zero Coupon Bond (FGIC)
	6.776%, 11/01/2008 (c)		5,150		4,686
	5.260%, 11/01/2009 (c)		6,450		5,631
Illinois Development Finance Authority, Midwestern University, Series B, Callable 05/15/2011 @ 101
	5.750%, 05/15/2016		350		367
Illinois Finance Authority, Clare at Water Tower Project, Series A
	5.400%, 05/15/2014		1,000		987
	5.500%, 05/15/2015		1,000		987
Illinois Finance Authority, Friendship Village Schaumburg, Series A
	5.000%, 02/15/2015		2,500		2,462
Illinois Finance Authority, Landing at Plymouth Project, Series A
	5.250%, 05/15/2014		1,320		1,304
Illinois Finance Authority, Peoples Gas, Light and Coke Co., Series A, Mandatory Put 06/01/2016 @ 100 (AMBAC)
	4.300%, 06/01/2035		2,000		1,983
Illinois Health Facilities Authority, St. Benedict, Series 2003A-2, Callable until 11/14/2015 @ 100
	5.750%, 11/15/2015		2,750		2,751
Illinois Sports Facilities Authority, Convertible CABs, (AMBAC)
	0.000% through 06/15/2010,
	thereafter 4.750%, 06/15/2013		1,405		1,205
Illinois Sports Facilities Authority, Convertible CABs, Callable 06/15/2015 @ 101, (AMBAC)
	0.000% through 06/15/2010,
	thereafter 5.100%, 06/15/2016		1,620		1,406
Illinois State Development Finance Authority, Elgin School District, Zero Coupon Bond
	5.210%, 01/01/2018 (c)		2,750		1,604
Illinois State Development Finance Authority, Elmhurst Community School #205, Pre-refunded 01/01/2011 @ 100 (FSA)
	6.375%, 01/01/2013 (b)		1,025		1,126
Illinois State Development Finance Authority, Waste Management Incorporated Project (AMT)
	5.850%, 02/01/2007		1,000		1,009
Illinois State Educational Facilities Authority, Loyola University of Chicago, Series A, Escrowed to Maturity
	7.000%, 07/01/2007 (a)		1,000		1,016
Illinois State Health Facilities Authority, Covenant Retirement Communities, Series A (RAAI)
	4.350%, 12/01/2010		1,605		1,613
Illinois State Health Facilities Authority, Evangelical, Escrowed to Maturity
	6.750%, 04/15/2012 (a)		1,320		1,451
Illinois State Health Facilities Authority, Mercy Hospital & Medical Center, Escrowed to Maturity, Callable until 12/31/2014 @ 100
	10.000%, 01/01/2015 (a)		695		871
Illinois State Sales Tax
	6.000%, 06/15/2009		2,500		2,643
	5.100%, 06/15/2010		2,000		2,083
Metropolitan Pier & Exposition Authority, State Sales Tax, Convertible CABs, (MBIA)
	0.000% through 06/15/2012,
	thereafter 5.200%, 06/15/2017		1,000		777
Metropolitan Pier & Exposition Authority, State Sales Tax, Series A (AMBAC)
	6.000%, 06/15/2007		750		765
Metropolitan Pier & Exposition Authority, State Sales Tax, Series A, Callable 12/15/2009 @ 101 (FGIC)
	5.550%, 12/15/2011		675		714
Metropolitan Pier & Exposition Authority, State Sales Tax, Series A, Escrowed to Maturity, Zero Coupon Bond (FGIC)
	5.000%, 06/15/2009 (a) (c)		1,465		1,300
Morton Grove, Residential Housing, Escrowed to Maturity (MBIA)
	7.350%, 09/01/2009 (a)		5,570		6,117
Southwestern Illinois Development Authority Revenue, Local Government, Triad School District 2 (MBIA)
	4.250%, 10/01/2016		300		296
Southwestern Illinois Development Authority Revenue, Local Government, Triad School District 2, Callable 10/01/2016 @ 100 (MBIA)
	4.250%, 10/01/2017		615		602
	5.000%, 10/01/2018		1,000		1,044
					54,581
General Obligations – 8.7%
Champaign County Community Unit School     District #004
	8.250%, 01/01/2009		1,315		1,444
Chicago, City Colleges, Zero Coupon Bond (FGIC)
	5.900%, 01/01/2015 (c)		10,000		6,816
Chicago, Convertible CABs, Series A, (MBIA)
	0.000% through 01/01/2011,
	thereafter 5.300%, 01/01/2016		2,000		1,694
Chicago, Project & Refunding (FSA)
	5.500%, 01/01/2013		1,000		1,076
Chicago, Project & Refunding, Series A (FGIC)
	5.250%, 01/01/2011		5,000		5,255
Cook County Community Unit School District #65, Evanston, Series A (FSA)
	6.375%, 05/01/2009		3,000		3,191
Cook County Community Unit School District #102, La Grange, Zero Coupon Bond (FGIC)
	5.200%, 12/01/2013 (c)		2,440		1,762
Cook County Community Unit School District #401, Elmwood Park, Zero Coupon Bond (FSA)
	5.800%, 12/01/2011 (c)		3,625		2,889
Cook County, Escrowed to Maturity (MBIA)
	7.250%, 11/01/2007 (a)		1,380		1,411
Cook County High School District #209, Proviso Township, Convertible CABs, (FSA)
	0.000% through 12/01/2007,
	thereafter 5.000%, 12/01/2016		1,000		969
Cook County School District #088, Bellwood, Series B, Callable 12/01/2014 @ 100 (FSA)
	5.000%, 12/01/2017		1,675		1,743

First American Funds Annual Report 2006      63

Schedule of  Investments continued

Intermediate Tax Free Fund (continued)
DESCRIPTION		PAR		VALUE
Cook County School District #123, Oak Lawn, Capital Appreciation, Zero Coupon Bond (MBIA)
	5.100%, 12/01/2015 (c)	$	2,250	$	1,470
Cook County, Series A (MBIA)
	6.250%, 11/15/2011		1,000		1,105
Du Page County Community High School District #94, West Chicago (FSA)
	7.250%, 11/01/2009		1,780		1,955
Illinois State, First Series, Callable 08/01/2010 @ 100
	5.500%, 08/01/2015		4,500		4,743
Lake County Community Unit School District #60, Waukegan, Series B (FSA)
	7.500%, 12/01/2008		3,640		3,931
Lake County School District #56, Gurnee (FGIC)
	8.375%, 01/01/2010		1,290		1,468
Madison & Jersey Counties Unit School District #11, Alton, Capital Appreciation, Zero Coupon Bond (FSA)
	5.350%, 12/01/2019 (c)		2,100		1,100
Rockford School District #205 (FGIC)
	5.000%, 02/01/2014		500		525
St. Clair County, Callable 10/01/2009 @ 102 (FGIC)
	6.000%, 10/01/2011		1,000		1,078
Will County School District #86, Joliet, Zero Coupon Bond (FSA)
	5.600%, 11/01/2017 (c)		3,870		2,273
Winnebago & Boone Counties School District #205, Series C, Partially Escrowed to Maturity (FGIC)
	6.000%, 02/01/2008 (a)		5,065		5,227
Winnebago County School District #122, Harlem-Love Park, Zero Coupon Bond (FSA)
	5.200%, 01/01/2017 (c)		3,000		1,832
					54,957
					109,538
Indiana – 2.0%
Revenue Bonds – 1.8%
Crown Point Multi-School Building, First Mortgage (MBIA) (MLO)
	7.625%, 01/15/2008		1,000		1,054
Evansville Vanderburgh, Public Leasing, Pre-refunded 01/15/2012 @ 100 (MBIA) (MLO)
	5.750%, 07/15/2018 (b)		1,000		1,086
Franklin Township Independent School Building Corporation, Escrowed to Maturity
	5.750%, 07/15/2009 (a)		1,235		1,300
Indiana State Housing Authority, Series B-1, Callable until 07/01/2006 @ 102
	6.150%, 07/01/2017		210		213
Indiana Transportation Finance Authority, Escrowed to Maturity, Callable 06/01/2011 @ 100
	5.750%, 06/01/2012 (a)		180		193
Indiana Transportation Finance Authority, Series A (AMBAC)
	5.750%, 06/01/2012		1,820		1,981
Indiana University, Series K, Zero Coupon Bond (MBIA)
	5.360%, 08/01/2011 (c)		750		607
St. Joseph County Hospital Authority, Callable 02/15/2008 @ 101 (MBIA)
	4.750%, 08/15/2012		1,000		1,018
St. Joseph County Independent Economic Development Revenue, Holy Cross Village, Notre Dame Project, Series A
	5.750%, 05/15/2016		450		462
St. Joseph County Independent Economic Development Revenue, Holy Cross Village, Notre Dame Project, Series A, Callable 05/15/2011 @ 100
	5.550%, 05/15/2019		230		231
St. Joseph County Independent Hospital Authority, Health Facilities Revenue, Madison Center Obligation Group Project, Callable 02/15/2015 @ 100
	5.250%, 02/15/2028		2,295		2,243
Wayne Independent Marion County School Building Corporation, First Meeting (FGIC) (MLO) (STAID)
	4.000%, 07/15/2017		275		263
Zionsville Community Schools Building, First Mortgage Bonds, Pre-refunded 01/15/2012 @ 100 (FGIC) (MLO) (STAID)
	5.750%, 07/15/2015 (b)		775		842
					11,493
General Obligation – 0.2%
Gary Sanitation District, Special Tax District (RAAI)
	3.750%, 02/01/2011		1,260		1,236
					12,729
Iowa – 1.9%
Revenue Bonds – 1.9%
Iowa Finance Authority Retirement Community, Friendship Haven Project, Series A, Callable 11/15/2009 @ 100
	5.750%, 11/15/2019		500		498
Iowa Higher Education Authority, Central College
	5.450%, 10/01/2026		1,000		1,034
Iowa Higher Education Authority, Wartburg College Project, Pre-refunded 10/01/2012 @ 100 (ACA) (MBIA)
	5.500%, 10/01/2028 (b)		2,000		2,147
Iowa Higher Education Authority, Wartburg College Project, Series A, Callable 10/01/2013 @ 100
	4.700%, 10/01/2016		925		899
	4.750%, 10/01/2017		1,100		1,071
	4.800%, 10/01/2018		1,155		1,124
	5.000%, 10/01/2023		1,475		1,435
Iowa State University, Science & Technology University Revenue, Dorm ISU (AMBAC)
	4.000%, 07/01/2013		595		593
	4.000%, 07/01/2014		650		645
	4.000%, 07/01/2015		350		345
Muscatine Electric, Escrowed to Maturity, Callable 07/01/2006 @ 100
	9.700%, 01/01/2013 (a)		1,790		2,127
					11,918

The accompanying notes are an integral part of the financial statements.

64      First American Funds Annual Report 2006

Intermediate Tax Free Fund (continued)
DESCRIPTION		PAR		VALUE
Kansas – 2.6%
Revenue Bonds – 1.9%
Butler County Public Building Authority (MBIA) (MLO)
	6.375%, 10/01/2010	$	1,000	$	1,091
Johnson County Residual Housing, Escrowed to Maturity, Zero Coupon Bond
	3.800%, 05/01/2012 (a) (c)		7,500		5,879
Kansas State Development Finance Authority, Health Facilities Revenue, Hays Medical Center, Series L, Callable 11/15/2015 @ 100
	4.500%, 11/15/2017		1,405		1,361
La Cygne Environmental Improvement Revenue, Kansas City Power & Light (XLCA)
	4.050%, 03/01/2015		1,000		972
Olathe Senior Living Facility Revenue, Catholic Care Campus, Series A
	5.750%, 11/15/2013		700		718
	5.750%, 11/15/2014		765		785
	5.750%, 11/15/2015		820		842
Sedgwick & Shawnee Counties, Single Family Mortgages, Series A-2 (GNMA)
	6.700%, 06/01/2029		420		424
					12,072
General Obligations – 0.7%
Johnson County Unified School District #232, Series A, Callable 09/01/2015 @ 100 (FSA)
	4.250%, 09/01/2016		2,000		1,987
Sedgwick County School District #267 (AMBAC)
	5.250%, 11/01/2012		1,045		1,117
Wyandotte County School District #204, Bonner Springs, Series A, Callable 09/01/2015 @ 100 (FGIC)
	4.100%, 09/01/2016		1,035		1,016
					4,120
					16,192
Kentucky – 0.7%
Revenue Bonds – 0.7%
Kentucky State Turnpike Authority, Escrowed to Maturity
	7.200%, 07/01/2009 (a)		885		925
Kentucky State Turnpike Authority, Escrowed to Maturity, Callable until 06/30/2011 @ 100
	6.000%, 07/01/2011 (a)		640		669
Louisville Water, Escrowed to Maturity
	6.000%, 11/15/2007 (a)		1,250		1,283
Louisville Water, Escrowed to Maturity, Callable until 10/31/2007 @ 101
	6.375%, 11/01/2007 (a)		1,000		1,033
Murray State University, Housing & Dining Services Revenue, Series Q, Callable 09/01/2015 @ 100 (MBIA)
	4.125%, 09/01/2016		520		511
					4,421
Louisiana – 0.7%
Revenue Bonds – 0.5%
Louisiana Local Government Environmental Facilities, Community Development Authority, Callable 01/01/2012 @ 101 (AMT)
	6.650%, 01/01/2025		730		778
Louisiana Public Facilities Authority, Pennington Medical Foundation Project, Callable 07/01/2016 @ 100
	5.000%, 07/01/2021		1,000		1,009
St. Tammany Parish Sales Tax Revenue, District #03, Sales & Use Tax, Callable 06/01/2016 @ 101 (CIFG)
	5.000%, 06/01/2017		1,405		1,461
					3,248
General Obligation – 0.2%
St. Tammany Parish Wide School District #12 (FSA)
	4.000%, 03/01/2016		1,390		1,338
					4,586
Maine – 0.3%
General Obligation – 0.3%
Maine Municipal Bond Bank, Series B (FSA)
	5.750%, 11/01/2010		2,000		2,144
Maryland – 0.2%
Revenue Bond – 0.2%
Maryland State Department of Transportation, Callable 02/15/2016 @ 100
	4.250%, 02/15/2017		1,000		995
Massachusetts – 3.6%
Revenue Bonds – 3.1%
Boston Industrial Development Financing Authority, Crosstown Center Project, Callable 09/01/2012 @ 102 (AMT)
	6.500%, 09/01/2035		2,000		2,036
Massachusetts Bay Transportation Authority, General Transportation System Project, Series C (FGIC)
	5.750%, 03/01/2010		2,100		2,228
Massachusetts Bay Transportation Authority, Series A
	6.250%, 03/01/2012		1,875		2,078
Massachusetts State Commonwealth, Special Obligation, Series A
	5.500%, 06/01/2013		1,000		1,081
Massachusetts State Health & Educational Authority Revenue, Berkshire Health System, Series F (AGTY)
	5.000%, 10/01/2015		2,000		2,088
Massachusetts State Health & Educational Facilities Authority, Partners Healthcare System, Series A, Callable 07/01/2007 @ 101 (MBIA)
	5.100%, 07/01/2010		3,000		3,057
Massachusetts State, Multifamily Housing, Escrowed to Maturity, Callable 10/01/2006 @ 100 (FHA)
	6.350%, 04/01/2008 (a)		430		431
Massachusetts State Port Authority
	5.750%, 07/01/2012		1,000		1,079
Massachusetts State Port Authority, Escrowed to Maturity, Callable until 06/30/2013 @ 100
	13.000%, 07/01/2013 (a)		3,990		5,267
					19,345
General Obligation – 0.5%
Massachusetts State, Series A, Pre-refunded 01/01/2011 @ 100
	5.125%, 01/01/2016 (b)		3,000		3,137
					22,482
Michigan – 4.2%
Revenue Bonds – 2.3%
Detroit Water Supply, Escrowed to Maturity, Callable until 06/30/2012 @ 100 (FGIC)
	6.250%, 07/01/2012 (a)		285		305

First American Funds Annual Report 2006      65

Schedule of  Investments continued

Intermediate Tax Free Fund (continued)
DESCRIPTION		PAR		VALUE
Michigan State Hospital Finance Authority, Henry Ford Health Systems, Series A, Callable 03/01/2013 @ 100
	5.500%, 03/01/2015	$	3,500	$	3,769
Michigan State Hospital Finance Authority, Henry Ford Hospital, Escrowed to Maturity, Callable until 04/30/2008 @ 100
	9.000%, 05/01/2008 (a)		2,470		2,624
Michigan State Housing Development Authority, Green Hill Project, Callable until 07/15/2006 @ 101 (FNMA)
	5.125%, 07/15/2008		1,045		1,046
Romulus Economic Development Corporation, Partnership Project, Escrowed to Maturity, Callable until 10/31/2006 @ 100.50
	7.000%, 11/01/2015 (a)		1,300		1,541
Wayne Charter County Airport, Series A, Callable 12/01/2008 @ 101 (AMT) (MBIA)
	5.250%, 12/01/2009		5,000		5,174
					14,459
General Obligations – 1.9%
Chippewa Valley Schools, Callable 05/01/2012 @ 100 (MQSBLF)
	5.500%, 05/01/2014		1,775		1,897
Constantine Public Schools, Callable 11/01/2012 @ 100 (MQSBLF)
	5.000%, 05/01/2016		1,075		1,122
Detroit (AMT) (FSA)
	5.750%, 04/01/2009		1,255		1,311
Lakeshore Public Schools, Callable 05/01/2011 @ 100 (MQSBLF)
	5.000%, 05/01/2012		1,160		1,208
Lakeview Public Schools, Callable 05/01/2011 @ 100 (MQSBLF)
	5.000%, 05/01/2014		1,985		2,058
Rochester Community School District, Series 1, Pre-refunded 05/01/2010 @ 100 (FGIC)
	5.375%, 05/01/2011 (b)		2,000		2,102
Woodhaven Brownstown School District (FSA) (MQSBLF)
	5.000%, 05/01/2014		2,000		2,109
					11,807
					26,266
Minnesota – 3.2%
Revenue Bonds – 2.5%
Minneapolis & St. Paul Metropolitan Airports Commission, Series B (AMT) (FGIC)
	5.750%, 01/01/2010		1,000		1,053
Minneapolis & St. Paul Metropolitan Airports Commission, Series B, Callable 01/01/2008 @ 101 (AMBAC) (AMT)
	5.375%, 01/01/2010		3,000		3,083
Minneapolis Hospital & Rehabilitation, Escrowed to Maturity
	10.000%, 06/01/2013 (a)		850		1,031
Minnesota Agricultural & Economic Development Board, Health Care Systems, Series A, Callable 11/15/2010 @ 101
	5.875%, 11/15/2011		2,135		2,280
Minnesota State Higher Education Facilities Revenue, College of Art & Design, Series 6-K
	5.000%, 05/01/2012 (d)		295		304
Minnesota State Municipal Power Agency, Electric Revenue, Callable 10/01/2015 @ 100
	4.375%, 10/01/2025		1,950		1,797
Monticello Big Lake Community Hospital District, Health Care Facilities, Series C
	5.250%, 12/01/2011		1,940		2,007
St. Paul Housing & Redevelopment Authority, Callable 08/01/2006 @ 102.50 (AMBAC)
	6.500%, 02/01/2009		1,315		1,351
St. Paul Port Authority Hotel, Pre-refunded 08/01/2008 @ 100
	8.050%, 08/01/2021 (b)		2,335		2,525
					15,431
General Obligations – 0.7%
Moorhead Independent School District #152, Crossover Refunded 04/01/2012 @ 100 (FGIC) (MSDCEP)
	5.000%, 04/01/2013 (f)		1,270		1,325
New Brighton Tax Increment, Series A (MBIA)
	4.250%, 02/01/2015 (d)		610		612
Robbinsdale Independent School District #281, Crossover Refunded 02/01/2009 @ 100 (MSDCEP)
	5.250%, 02/01/2012 (f)		1,435		1,479
South Washington County Independent School District #833, Series A, Crossover Refunded 02/01/2010 @ 100 (MSDCEP)
	5.300%, 02/01/2011 (f)		1,000		1,043
					4,459
					19,890
Mississippi – 0.5%
Revenue Bonds – 0.2%
Mississippi Development Bank Special Obligation, Hattiesburg Water & Sewer, Callable 08/01/2016 @ 100 (AMBAC)
	4.125%, 08/01/2017		575		558
	4.125%, 08/01/2018		800		770
					1,328
General Obligation – 0.3%
Madison County School District, Series A (FGIC)
	4.000%, 09/01/2015		1,790		1,745
					3,073
Missouri – 0.9%
Revenue Bonds – 0.8%
Hannibal Industrial Development Authority, Health Facilities Revenue, Hannibal Regional Hospital
	4.350%, 03/01/2014		1,405		1,380
Joplin Individual Development Authority Health Facilities, Freeman Health System Project
	4.125%, 02/15/2009		750		745
Missouri Joint Municipal Electric Utilities, Commission Power Project Revenue, Plum Point Project, Callable 01/01/2016 @ 100 (MBIA)
	4.200%, 01/01/2018		1,000		976

The accompanying notes are an integral part of the financial statements.

66      First American Funds Annual Report 2006

Intermediate Tax Free Fund (continued)
DESCRIPTION		PAR		VALUE
Missouri State Health & Educational Facilities Revenue, Senior Living Facilities, Lutheran, Series B
	4.350%, 02/01/2015	$	850	$	824	��
	4.375%, 02/01/2016		930		892
					4,817
General Obligation – 0.1%
Nixa Recognized School District #R 02, Missouri Direct Deposit Program, Callable 03/01/2016 @ 100 (FSA) (STAID)
	5.000%, 03/01/2018		530		556
					5,373
Montana – 0.1%
Revenue Bond – 0.1%
Montana Facilities Financial Authority, Health Care Facilities Revenue, Master Loan Project, North Montgomery Group Project
	4.500%, 10/01/2014		435		440
Nebraska – 1.3%
Revenue Bonds – 1.1%
Douglas County Hospital Authority #002, Nebraska Medical Center, Clarkson Regional Health Guaranty (GTY)
	5.000%, 11/15/2011		2,860		2,951
Douglas County Zoo Facilities Revenue, Omaha’s Henry Doory Zoo Project, Callable 04/13/2015 @ 100
	4.750%, 09/01/2017		745		748
	4.750%, 09/01/2018		740		740
Nebraska Investment Financial Authority, Great Plains Regional Medical Center (RAAI)
	4.700%, 11/15/2011		500		511
Nebraska Investment Financial Authority, Great Plains Regional Medical Center, Callable 05/15/2012 @ 100 (RAAI)
	4.800%, 11/15/2012		500		512
	4.900%, 11/15/2013		600		615
Omaha Northwest Library Facilities, Pre-refunded 08/15/2007 @ 102 (MLO)
	5.250%, 08/15/2012 (b)		975		1,009
					7,086
General Obligation – 0.2%
Lincoln-Lancaster County Public Building, Tax Supported Lease Rental, Callable 04/15/2015 @ 100 (MLO)
	4.500%, 10/15/2015		1,020		1,035
					8,121
Nevada – 1.8%
Revenue Bonds – 0.7%
Carson City, Carson-Tahoe Hospital Project
	5.750%, 09/01/2011		1,000		1,046
	5.750%, 09/01/2012		1,055		1,109
Director of the State of Nevada, Development of Business & Industry, Las Ventanas Retirement Project, Series B, Callable 11/15/2014 @ 100
	6.750%, 11/15/2023		2,150		2,122
					4,277
General Obligations – 1.1%
Clark County School District, Building & Renovation, Series B, Pre-refunded 06/15/2007 @ 101 (FGIC)
	5.750%, 06/15/2008 (b)		1,000		1,028
Nevada State, Pre-refunded 06/01/2008 @ 100
	5.250%, 06/01/2011 (b)		3,000		3,078
Washoe County, Escrowed to Maturity, Callable 08/01/2006 @ 100
	9.875%, 08/01/2009 (a)		2,890		3,157
					7,263
					11,540
New Hampshire – 0.4%
Revenue Bonds – 0.4%
New Hampshire Health & Education Facilities Authority, Callable 07/01/2014 @ 100
	5.375%, 07/01/2024		1,250		1,285
New Hampshire State Health & Educational Facilities Authority, Speare Memorial Hospital, Callable 07/01/2015 @ 100
	5.500%, 07/01/2025		1,000		1,003
					2,288
New Jersey – 1.0%
Revenue Bonds – 1.0%
New Jersey Economic Development Authority, Cigarette Tax
	5.500%, 06/15/2016		2,000		2,125
New Jersey Health Care Facilities, Capital Health Systems, Series A
	5.500%, 07/01/2012		1,500		1,571
New Jersey State Transportation Trust Fund Authority, Series A
	5.500%, 06/15/2008		2,000		2,057
New Jersey State Turnpike Authority, Escrowed to Maturity
	6.750%, 01/01/2009 (a)		605		609
					6,362
New York – 2.7%
Revenue Bonds – 1.0%
Hempstead Town Industrial Development Agency, Callable 12/01/2006 @ 102 (MBIA)
	5.000%, 12/01/2008		2,000		2,048
Long Island Power Authority, Series B
	5.250%, 12/01/2013		4,000		4,247
					6,295
General Obligations – 1.7%
New York, Series A, Callable 08/01/2012 @ 100
	5.750%, 08/01/2015		3,220		3,479
New York, Series C, Callable 03/15/2012 @ 100
	5.500%, 03/15/2014		3,000		3,177
New York, Series D
	5.500%, 06/01/2012		2,000		2,134
New York, Series G (XLCA)
	5.500%, 08/01/2012		2,000		2,149
					10,939
					17,234
North Carolina – 0.8%
Revenue Bonds – 0.8%
North Carolina Eastern Power Agency, Series D
	5.375%, 01/01/2013		2,955		3,116
North Carolina Power Agency #1, Series A, Callable 01/01/2013 @ 100 (FSA)
	5.250%, 01/01/2016		2,000		2,116
					5,232

First American Funds Annual Report 2006      67

Schedule of  Investments continued

Intermediate Tax Free Fund (continued)
DESCRIPTION		PAR		VALUE
Ohio – 1.9%
Revenue Bonds – 1.2%
Lorain County Hospital Facilities, Catholic Healthcare Partners, Series B, Callable 09/01/2007 @ 102 (MBIA)
	5.375%, 09/01/2009	$	1,000	$	1,033
Miami County Hospital Facilities, Upper Valley Medical Center
	5.250%, 05/15/2016		750		779
Ohio State Higher Education Facilities Revenue, John Carroll University Project
	4.000%, 04/01/2014		1,135		1,110
	4.500%, 04/01/2015		1,000		1,012
Ohio State Higher Education Facilities Revenue, John Carrol University Project, Callable 04/01/2016 @ 100
	4.300%, 04/01/2018		550		533
Ohio State Water Development Authority, Escrowed to Maturity, Callable 12/01/2006 @ 100
	9.375%, 12/01/2010 (a)		1,550		1,692
Richland County Hospital Facilities, Series A
	5.550%, 11/15/2006		765		770
	5.650%, 11/15/2008		595		615
					7,544
General Obligations – 0.5%
Hilliard School District, Series A, Callable 12/01/2016 @ 100 (MBIA)
	5.000%, 12/01/2017		1,260		1,330
Lakota Local School District, Callable 12/01/2015 @ 100 (FSA)
	4.200%, 12/01/2017		1,685		1,661
North Olmsted, Limited Tax Capital Improvement, Series C, Callable 12/01/2016 @ 100 (AMBAC)
	4.125%, 12/01/2017		400		389
					3,380
Certificate of Participation – 0.2%
Akron, Callable 06/01/2015 @ 100 (AGTY) (MLO)
	5.000%, 12/01/2015		1,000		1,036
					11,960
Oklahoma – 1.7%
Revenue Bonds – 1.7%
Cherokee County Economic, Escrowed to Maturity, Zero Coupon Bond (AMBAC)
	5.610%, 11/01/2011 (a) (c)		3,340		2,681
McClain County Economic Development Authority, Educational Facilities Lease Revenue, Newcastle Public Schools Project (MLO)
	5.000%, 09/01/2009		510		520
	5.000%, 09/01/2011		345		354
	5.000%, 09/01/2012		355		366
	4.125%, 09/01/2013		250		244
Oklahoma City Industrial & Cultural Facilities, Oklahoma City Project, Callable 10/01/2014 @ 101 (AMT)
	5.750%, 01/01/2023		1,430		1,462
South Oklahoma City, Callable until 01/31/2013 @ 100, Pre-refunded 02/01/2010 @ 100
	9.750%, 02/01/2013 (b)		3,270		3,733
Tulsa Educational Facilities Authority, Holland Hall School Project, Series B, Callable 12/01/2008 @ 101
	4.600%, 12/01/2009		1,195		1,213
					10,573
Oregon – 0.9%
General Obligations – 0.6%
Clackamas County School District #108, Estacada (FSA) (SBG)
	5.250%, 06/15/2017		1,205		1,299
Lane County School District #52, Bethel (SBG)
	5.500%, 06/15/2009		1,000		1,045
Morrow County School District #001 (FSA) (SBG)
	5.250%, 06/15/2016		1,245		1,338
					3,682
Certificate of Participation – 0.3%
Oregon State Department of Administrative Services, Series E, Callable 11/01/2012 @ 100 (FSA) (MLO)
	5.000%, 11/01/2014		2,170		2,274
					5,956
Pennsylvania – 1.5%
Revenue Bonds – 1.0%
Delaware County Hospital Revenue Authority, Crozer-Chester Medical Center (RAAI)
	5.000%, 12/15/2015		1,275		1,327
Delaware County Hospital Revenue Authority, Crozer-Chester Medical Center,     Callable 12/15/2015 @ 100 (RAAI)
	5.000%, 12/15/2017		1,405		1,449
Montgomery County Industrial Development Authority, Whitemarsh Continued Care Project, Callable 02/01/2015 @ 100
	6.125%, 02/01/2028		1,000		1,050
Westmoreland County Independent Development Authority Revenue, Retirement Community, Redstone, Series A
	5.375%, 01/01/2014		1,100		1,111
	5.500%, 01/01/2016		1,200		1,217
					6,154
General Obligations – 0.5%
Central Greene School District, Capital Appreciation, Escrowed to Maturity, Zero Coupon Bond, Callable until 05/31/2007 @ 101.50 of compound accreted value (MBIA) (STAID)
	4.690%, 12/01/2007 (a) (c)		2,000		1,894
Ephrata Area School District, Callable 04/15/2016 @ 100 (FGIC) (STAID)
	4.500%, 04/15/2018		1,500		1,503
					3,397
					9,551
South Carolina – 1.5%
Revenue Bonds – 1.5%
Charleston EDL Excellence Finance, Charleston County School District Project (MLO)
	5.000%, 12/01/2013		2,000		2,091

The accompanying notes are an integral part of the financial statements.

68      First American Funds Annual Report 2006

Intermediate Tax Free Fund (continued)
DESCRIPTION		PAR		VALUE
Lexington County Health Services District, Lexington Medical Center, Callable 11/01/2013 @ 100
	5.500%, 11/01/2023	$	2,000	$	2,065
South Carolina Jobs Economic Development Authority, Palmetto Health Alliance, Series A
	6.000%, 08/01/2013		1,000		1,090
South Carolina Jobs Economic Development Authority, Palmetto Health Alliance, Series C
	6.000%, 08/01/2013		2,000		2,180
South Carolina State Public Service Authority, Series A (MBIA)
	5.500%, 01/01/2010		1,665		1,751
					9,177
South Dakota – 1.4%
Revenue Bonds – 0.8%
South Dakota State Health & Educational Facilities Authority, Sioux Valley Hospital
	5.250%, 11/01/2008		900		924
South Dakota State Health & Educational Facilities Authority, Westhills Village Retirement
	5.800%, 09/01/2006		735		737
	5.900%, 09/01/2007		755		767
	4.750%, 09/01/2011		530		537
	5.000%, 09/01/2012		1,000		1,027
South Dakota State Health & Educational Facilities Authority, Westhills Village Retirement Community, Callable 09/01/2012 @ 101
	5.000%, 09/01/2013		1,000		1,023
					5,015
Certificates of Participation – 0.6%
Deadwood (ACA) (MLO)
	5.500%, 11/01/2007		800		815
	5.600%, 11/01/2008		845		872
Deadwood, Callable 11/01/2015 @ 100 (ACA) (MLO)
	5.000%, 11/01/2018		2,385		2,420
					4,107
					9,122
Tennessee – 2.2%
Revenue Bonds – 1.7%
Metropolitan Government Nashville & Davidson County, Escrowed to Maturity, Callable 10/01/2006 @ 102
	6.400%, 04/01/2011 (a)		1,030		1,138
Shelby County Health, Educational & Housing Facilities Board, Methodist Healthcare, Pre-refunded 09/01/2012 @ 100
	6.000%, 09/01/2016 (b)		1,500		1,661
Shelby County Health, Educational & Housing Facilities Board, St. Jude’s Children’s Research
	5.000%, 07/01/2009		400		407
Sullivan County Health, Educational & Housing Facilities Board, Wellmont Health Systems Project, Callable 09/01/2013 @ 100 (RAAI)
	5.000%, 09/01/2016		2,000		2,058
Sullivan County Health, Educational & Housing Facilities Board, Wellmont Health Systems Project, Escrowed to Maturity
	6.250%, 09/01/2011 (a)		1,465		1,601
	6.250%, 09/01/2012 (a)		1,085		1,200
Sullivan County Health, Educational & Housing Facilities Board, Wellmont Health Systems Project, Pre-refunded 09/01/2012 @ 101
	6.500%, 09/01/2013 (b)		2,215		2,498
					10,563
General Obligations – 0.5%
Knoxville, Series A
	5.000%, 05/01/2016		1,030		1,089
Memphis (MBIA)
	5.000%, 10/01/2016		2,000		2,120
					3,209
					13,772
Texas – 9.3%
Revenue Bonds – 3.9%
Abilene Health Facilities Development, Sears Methodist Retirement, Series A
	5.250%, 11/15/2006		1,175		1,178
	5.300%, 11/15/2007		1,000		1,013
	5.350%, 11/15/2008		1,300		1,327
Brazos River Authority, Electric Company Project, Series 1999-B, Mandatory Put 04/01/2013 @ 100 (AMT)
	6.750%, 09/01/2034		2,000		2,200
Brazos River Authority, Electric Company Project, Series C, Mandatory Put 11/01/2011 @ 100 (AMT)
	5.750%, 05/01/2036		1,585		1,664
Brazos River Harbor District, Dow Chemical, Series A-5, Mandatory Put 05/15/2012 @ 100 (AMT)
	5.700%, 05/15/2033		1,000		1,055
Grapevine Industrial Development, Air Cargo, Callable 01/01/2012 @ 101 (AMT)
	6.500%, 01/01/2024		490		524
Gregg County Health Facilities Development, Good Shepherd Medical Center, Series A
	5.750%, 10/01/2009		2,895		2,981
Houston Health Facilities Development, Buckingham Senior Living Community, Series A, Callable 02/15/2014 @ 101
	7.000%, 02/15/2023		2,000		2,201
Odessa Housing Finance, Escrowed to Maturity, Zero Coupon Bond, Callable 12/01/2006 @ 64.958 (MBIA)
	3.780%, 06/01/2012 (a) (c)		1,465		1,138
Richardson Hospital Authority
	5.500%, 12/01/2013		1,290		1,356
Richardson Hospital Authority, Callable 12/01/2013 @ 100
	5.500%, 12/01/2014		1,310		1,370
San Antonio Electric & Gas, Series A, Callable 02/01/2009 @ 101
	5.250%, 02/01/2013		2,135		2,216
Tarrant County Cultural Education Financial Corporation Retirement Facilities, Northwest Senior Housing, Edgemere Project, Series A
	5.750%, 11/15/2014		1,235		1,280
Travis County Health Facilities, Development Retirement Facilities Revenue, Querencia Barton Creek Project, Callable 11/15/2015 @ 100
	5.250%, 11/15/2017		1,000		981
	5.500%, 11/15/2025		900		878
Tyler Health Facilities, Mother Frances Hospital
	5.250%, 07/01/2012		1,000		1,038
					24,400

First American Funds Annual Report 2006      69

Schedule of  Investments continued

Intermediate Tax Free Fund (continued)
DESCRIPTION		PAR		VALUE
General Obligations – 5.4%
Alvin Independent School District, Callable 02/15/2016 @ 100 (PSFG)
	4.250%, 02/15/2018	$	1,360	$	1,326
Austin, Callable 09/01/2011 @ 100
	5.000%, 09/01/2013		4,510		4,699
Brownsville, Callable 02/15/2015 @ 100 (MBIA)
	5.000%, 02/15/2017		2,125		2,215
Cypress-Fairbanks Independent School District, Pre-refunded 02/15/2010 @ 100 (PSFG)
	5.500%, 02/15/2018 (b)		4,000		4,214
Donna Independent School District, Callable 02/15/2015 @ 100 (GTY) (PSFG)
	5.000%, 02/15/2019		1,440		1,492
El Campo Independent School District, Callable 08/15/2015 @ 100 (PSFG)
	4.500%, 08/15/2018		600		599
Frisco, Callable 02/05/2011 @ 100 (FGIC)
	5.000%, 02/15/2018		1,125		1,160
	5.000%, 02/15/2019		1,675		1,719
Irving Independent School District, Series A, Zero Coupon Bond (PSFG)
	5.000%, 02/15/2009 (c)		5,000		4,496
Kaufman County, Callable 02/15/2012 @ 100 (FSA)
	5.000%, 02/15/2017		1,000		1,033
Keller Independent School District, Callable 08/15/2011 @ 100 (PSFG)
	5.375%, 08/15/2014		235		248
Laredo, Callable 02/15/2015 @ 100 (MBIA)
	4.500%, 02/15/2016		525		530
Los Fresnos Independent School District, Callable 08/15/2015 @ 100 (PSFG)
	4.000%, 08/15/2017		1,305		1,251
Mission Independent School District (GTY) (PSFG)
	5.000%, 02/15/2015		1,430		1,506
North Harris Montgomery Community College District, Callable 02/15/2012 @ 100 (FGIC)
	5.375%, 02/15/2015		2,535		2,691
Port Houston Authority, Harris County, Series B, Callable 10/01/2011 @ 100 (AMT) (FGIC)
	5.500%, 10/01/2012		2,405		2,540
Santa Fe Independent School District, Callable 02/15/2013 @ 100 (PSFG)
	4.250%, 02/15/2015		1,365		1,364
United Independent School District (PSFG)
	5.000%, 08/15/2015		1,000		1,055
					34,138
					58,538
Utah – 0.9%
Revenue Bonds – 0.7%
Salt Lake & Sandy Metropolitan Water District, Series A (AMBAC)
	5.000%, 07/01/2015		2,500		2,629
South Jordan, Sales Tax, Callable 08/15/2011 @ 100 (AMBAC)
	5.500%, 08/15/2018		1,000		1,063
Utah State Housing Finance Agency, Single Family Mortgages, Issue F-1, Callable until 07/01/2006 @ 102 (FHA) (VA)
	6.300%, 01/01/2018		35		36
Utah State Housing Finance Agency, Single Family Mortgages, Series III, Class R, Callable 07/01/2006 @ 102 (FHA) (VA)
	5.950%, 07/01/2008		470		480
					4,208
General Obligation – 0.2%
Ashley Valley Water & Sewer, Escrowed to Maturity, Callable 07/01/2006 @ 102 (AMBAC)
	10.900%, 01/01/2010 (a)		1,095		1,241
					5,449
Virginia – 0.4%
Revenue Bonds – 0.4%
Richmond Industrial Development Authority, Government Facilities (AMBAC) (MLO)
	5.000%, 07/15/2018		1,795		1,888
Riverside Regional Jail Authority, Callable until 07/01/2006 @ 102 (MBIA)
	5.700%, 07/01/2008		905		915
					2,803
Washington – 4.7%
Revenue Bonds – 1.3%
Energy Northwest, Washington Wind Project, Series A, Pre-refunded 01/01/2007 @ 103
	5.100%, 07/01/2009 (b)		1,850		1,916
	5.200%, 07/01/2010 (b)		1,950		2,020
Energy Northwest, Wind Project, Callable 07/01/2014 @ 100 (MBIA)
	4.500%, 07/01/2015		1,000		1,013
Port Seattle Passenger Facility Charge,     Series B (AMBAC) (AMT)
	5.000%, 12/01/2007		1,000		1,014
Snohomish County Housing Authority, Callable 10/01/2006 @ 100
	6.300%, 04/01/2016		1,035		1,038
Washington State Public Power Supply System, Nuclear Project #2, Series A, Pre-refunded 07/01/2006 @ 102 (AMBAC)
	5.700%, 07/01/2011 (b)		1,000		1,020
					8,021
General Obligations – 3.4%
Clark County School District #37, Vancouver (FSA)
	5.250%, 12/01/2014		1,515		1,622
King County (AMBAC)
	5.000%, 12/01/2012		2,000		2,099
King County, Series B, Pre-refunded 12/01/2007 @ 102
	5.850%, 12/01/2013 (b)		3,000		3,141
Pierce County School District #320, Sumner
	6.000%, 12/01/2006		130		131
Snohomish County, Callable 12/01/2011 @ 100 (MBIA)
	5.375%, 12/01/2019		5,000		5,287
Spokane County School District #081, Convertible CABs, Callable 06/01/2015 @ 100, (MBIA) (SBG)
	0.000% through 12/01/2008,
	thereafter 5.000%, 06/01/2016		1,000		918
Spokane County School District #356, Central Valley, Series B, Zero Coupon Bond (FGIC)
	3.030%, 12/01/2014 (c)		5,690		3,900

The accompanying notes are an integral part of the financial statements.

70      First American Funds Annual Report 2006

Intermediate Tax Free Fund (continued)
DESCRIPTION		PAR		VALUE
Washington State, Series C
	5.500%, 07/01/2014	$	2,275	$	2,469
Washington State, Series S-5, Zero Coupon Bond (FGIC)
	5.830%, 01/01/2016 (c)		3,000		1,936
					21,503
					29,524
West Virginia – 0.3%
Revenue Bond – 0.3%
Brooke Pleasants & Tyler Wetzel Counties, Single Family Mortgage, Escrowed to Maturity
	7.400%, 08/15/2010 (a)		1,675		1,888
Wisconsin – 2.4%
Revenue Bonds – 2.1%
Franklin Solid Waste Disposal Revenue, Waste Management Wisconsin, Series A, Mandatory Put 05/01/2016 @ 100 (AMT)
	4.950%, 11/01/2016		2,000		1,988
Wisconsin State Health & Educational Facilities Authority, Aurora Health Care, Series A, Callable 02/15/2009 @ 101
	5.500%, 02/15/2020		1,500		1,543
Wisconsin State Health & Educational Facilities Authority, Eastcastle Place Income Project, Callable 12/01/2011 @ 100
	5.750%, 12/01/2019		2,000		2,007
Wisconsin State Health & Educational Facilities Authority, Fort Healthcare Income Project, Callable 05/01/2014 @ 100
	5.375%, 05/01/2018		1,250		1,298
Wisconsin State Health & Educational Facilities Authority, Marshfield Clinic, Series B
	6.250%, 02/15/2009		500		524
Wisconsin State Health & Educational Facilities Authority, Marshfield Clinic, Series B, Callable 02/15/2012 @ 100
	5.500%, 02/15/2013		850		888
Wisconsin State Health & Educational Facilities Authority, Southwest Health Center, Series A, Callable 04/01/2014 @ 100
	6.125%, 04/01/2024		1,500		1,523
Wisconsin State Health & Educational Facilities Authority, Vernon Memorial Healthcare Project
	4.650%, 03/01/2015		1,150		1,124
Wisconsin State Health & Educational Facilities Authority, Wheaton Franciscan Services
	5.750%, 08/15/2011		645		690
Wisconsin State Health & Educational Facilities Authority, Wisconsin Medical College, Callable 12/01/2014 @ 100
	5.000%, 12/01/2015		1,450		1,518
					13,103
General Obligation – 0.3%
Door County, Series A, Crossover Refunded 09/01/2011 @ 100 (FGIC)
	5.125%, 09/01/2016 (f)		1,720		1,797
					14,900
Wyoming – 0.3%
Revenue Bond – 0.3%
Lincoln County, Pacificorp Project, Mandatory Put 06/03/2012 @ 100 (AMT)
	4.125%, 11/01/2025		2,250		2,188
Total Municipal Bonds (Cost $602,792)					620,778
Short-Term Investment – 0.3%
First American Tax Free Obligations Fund, Class Z (g)
	(Cost $1,982)		1,981,820		1,982
Total Investments – 99.0% (Cost $604,774)					622,760
Other Assets and Liabilities, Net – 1.0%					6,067
Total Net Assets – 100.0%				$	628,827

(a)	Escrowed to Maturity issues are typically backed by U.S. government obligations. If callable, these bonds may still be subject to call at the call date and price indicated.
(b)	Pre-refunded issues are typically backed by U.S. government obligations. These bonds mature at the call date and price indicated.
(c)	Zero coupon bonds make no periodic interest payments, but are issued at deep discounts from par value. The rate shown is the effective yield at the time of purchase.
(d)	Security purchased on a when-issued basis. On June 30, 2006, the total cost of investments purchased on a when-issued basis was $1,815 or 0.3% of total net assets. See note 2 in Notes to Financial Statements.
(e)	Security sold within the terms of a private placement memorandum, exempt from registration under Rule 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or other “qualified institutional buyers.” These securities have been determined to be liquid under the guidelines established by the funds’ board of directors. As of June 30, 2006, the value of these investments was $4,334 or 0.7% of total net assets.

(f)  Crossover Refunded securities are backed by the credit of the refunding issuer. These bonds mature at the call date and price indicated.

(g)  Investment in affiliated security. This money market fund is advised by FAF Advisors, Inc., which also serves as advisor for this fund. See note 3 in Notes to Financial Statements.

ACA – American Capital Access

AGTY – Assured Guaranty

AMBAC – American Municipal Bond Assurance Corporation

AMT – Alternative Minimum Tax. As of June 30, 2006, the aggregate market value of securities subject to the AMT was $29,338, which represents 4.7% of total net assets.

CIFG – CDC IXIS Financial Guaranty

CMI – California Mortgage Insurance Program

Convertible CABs –  Convertible Capital Appreciation Bonds initially pay no interest, but accrete in value from the date of issuance through the conversion date. At the conversion date, the bonds start to accrue and pay interest on a semiannual basis until final maturity.

FGIC – Financial Guaranty Insurance Corporation

FHA – Federal Housing Authority

FHLMC – Federal Home Loan Mortgage Corporation

FNMA – Federal National Mortgage Association

FSA – Financial Security Assurance

GNMA – Government National Mortgage Association

GTY – Guaranty

LOC – Letter of Credit

MBIA – Municipal Bond Insurance Association

MLO – Municipal Lease Obligation

MQSBLF – Michigan Qualified School Board Loan Fund Program

MSDCEP – Minnesota School District Credit Enhancement Program

PSFG – Permanent School Fund Guarantee

RAAI – Radian Asset Assurance Inc.

SBG – School Board Guaranty

STAID – State Aid Withholding

VA – Veterans Administration

XLCA – XL Capital Assurance Inc.

First American Funds Annual Report 2006      71

Schedule of  Investments continued

Minnesota Intermediate Tax Free Fund
DESCRIPTION		PAR		VALUE
Municipal Bonds – 98.2%
Revenue Bonds – 64.1%
Economic Development – 2.0%
Minneapolis Community Development Agency, Series G-3, Pre-refunded 12/01/2011 @ 100
	5.350%, 12/01/2021 (a)	$	1,000	$	1,064
Minneapolis Development Revenue, Common Bond, Series 1A (AMT)
	4.550%, 12/01/2013		480		477
	4.625%, 12/01/2014		505		502
Minnesota State Agricultural & Economic Development Board, Small Business Development, Series B (AMT)
	6.500%, 08/01/2008		1,030		1,064
Minnesota State Agricultural & Economic Development Board, Small Business Development, Series C (AMT)
	6.625%, 08/01/2008		940		974
					4,081
Education – 9.5%
Minneapolis, The Blake School Project, Callable 09/01/2011 @ 100
	5.000%, 09/01/2012		445		459
Minnesota State Higher Education Facilities Authority, Augsburg College, Series 4
	4.850%, 10/01/2009		520		528
Minnesota State Higher Education Facilities Authority, Augsburg College, Series 4, Callable 10/01/2009 @ 100
	5.000%, 10/01/2011		500		508
	5.000%, 10/01/2012		500		507
Minnesota State Higher Education Facilities Authority, Augsburg College, Series 6-C, Callable 05/01/2014 @ 100
	4.750%, 05/01/2018		1,075		1,069
Minnesota State Higher Education Facilities Authority, College of Art & Design, Series 6-K
	5.000%, 05/01/2013 (b)		310		319
	5.000%, 05/01/2014 (b)		320		328
	5.000%, 05/01/2015 (b)		340		349
Minnesota State Higher Education Facilities Authority, College of Art & Design, Series 6-K, Callable 05/01/2015 @ 100
	5.000%, 05/01/2016 (b)		355		363
Minnesota State Higher Education Facilities Authority, College of Art & Design, Series 6-K, Callable 05/15/2015 @ 100
	5.000%, 05/01/2017 (b)		370		377
Minnesota State Higher Education Facilities Authority, Minneapolis College of Art and Design, Series 5-K
	5.000%, 05/01/2011		250		254
Minnesota State Higher Education Facilities Authority, St. Benedict College, Callable 03/01/2007 @ 100
	4.875%, 03/01/2008		1,000		1,004
	5.100%, 03/01/2011		2,885		2,894
Minnesota State Higher Education Facilities Authority, St. Benedict College, Series 5-W
	4.200%, 03/01/2012		345		343
Minnesota State Higher Education Facilities Authority, St. Catherine College, Series 5-N1, Callable 10/01/2012 @ 100
	5.250%, 10/01/2022		1,500		1,531
Minnesota State Higher Education Facilities Authority, St. John’s University, Series 5-I, Escrowed to Maturity (MBIA)
	5.000%, 10/01/2011 (c)		255		267
Minnesota State Higher Education Facilities Authority, St. John’s University, Series 5-I, Pre-refunded 10/01/2011 @ 100 (MBIA)
	5.000%, 10/01/2012 (a)		480		502
Minnesota State Higher Education Facilities Authority, St. John’s University, Series 6-G, Callable 10/01/2015 @ 100
	4.000%, 10/01/2016		1,000		961
Minnesota State Higher Education Facilities Authority, University of St. Thomas, Callable 10/01/2014 @ 100
	5.250%, 10/01/2019		530		555
Minnesota State Higher Education Facilities Authority, University of St. Thomas, Series 4, Pre-refunded 04/01/2008 @ 100
	5.250%, 04/01/2012 (a)		385		394
Minnesota State Higher Education Facilities Authority, University of St. Thomas, Series 6-I
	4.000%, 04/01/2014		1,045		1,024
Moorhead Educational Facilities, Concordia College, Series A
	4.100%, 12/15/2014		845		830
	4.200%, 12/15/2015		880		867
Moorhead Educational Facilities, Concordia College, Series A,     Callable 12/15/2015 @ 100
	4.300%, 12/15/2016		925		913
	5.000%, 12/15/2018		1,005		1,041
	5.000%, 12/15/2019		1,060		1,095
					19,282
Healthcare – 22.9%
Bemidji Health Care Facilities, North Country Health Services
	4.125%, 09/01/2013		300		294
	4.250%, 09/01/2014		485		477
	4.250%, 09/01/2015		500		488
Bemidji Health Care Facilities, North Country Health Services, Callable 09/01/2016 @ 100
	5.000%, 09/01/2017		500		514
	5.000%, 09/01/2018		1,050		1,076
Cuyuna Range Hospital District, Callable 06/01/2013 @ 101
	5.000%, 06/01/2016		425		429
	5.000%, 06/01/2019		1,320		1,317
Cuyuna Range Hospital District, Series A, Callable 06/01/2007 @ 102
	5.500%, 06/01/2010		435		444
	5.650%, 06/01/2012		940		960
Duluth Economic Development Authority, Benedictine Health System, Callable 02/15/2014 @ 100
	5.375%, 02/15/2022		2,045		2,112
Glencoe Health Care Facilities, Pre-refunded 04/01/2011 @ 101
	7.400%, 04/01/2021 (a)		1,000		1,136
Glencoe Health Care Facilities, Regional Health Services Project
	5.000%, 04/01/2013		760		778

The accompanying notes are an integral part of the financial statements.

72      First American Funds Annual Report 2006

Minnesota Intermediate Tax Free Fund (continued)
DESCRIPTION		PAR		VALUE
Glencoe Health Care Facilities, Regional Health Services Project, Callable 04/01/2013 @ 101
	5.000%, 04/01/2014	$	800	$	820
	5.000%, 04/01/2015		845		864
	5.000%, 04/01/2017		1,815		1,842
Hastings Health Care Facility, Regina Medical Center, Callable 09/15/2008 @ 100 (ACA)
	5.000%, 09/15/2013		500		504
Maple Grove Health Care Facilities, North Memorial, Callable 09/01/2015 @ 100
	4.500%, 09/01/2017		1,730		1,698
Minneapolis & St. Paul Housing & Redevelopment Authority, Healthspan, Series A, Callable until 11/14/2013 @ 100 (AMBAC)
	5.000%, 11/15/2013		1,000		1,001
Minneapolis Healthcare System, Allina Health System, Series A, Callable 11/15/2012 @ 100
	6.000%, 11/15/2023		2,500		2,677
	5.750%, 11/15/2032		1,300		1,368
Minneapolis Healthcare System, Fairview Health Services, Series A, Escrowed to Maturity
	5.000%, 05/15/2012 (c)		605		634
Minnesota Agricultural & Economic Development Board, Benedictine Health, Series A (MBIA)
	5.000%, 02/15/2010		3,815		3,942
Minnesota Agricultural & Economic Development Board, Evangelical Lutheran Project
	5.500%, 02/01/2011		280		291
	5.500%, 02/01/2012		200		209
Minnesota Agricultural & Economic Development Board, Evangelical Lutheran Project, Callable 02/01/2012 @ 101
	5.500%, 02/01/2015		730		759
Minnesota Agricultural & Economic Development Board, Healthcare Systems, Series A, Callable 11/15/2007 @ 102 (MBIA)
	5.500%, 11/15/2017		305		317
	5.750%, 11/15/2026		10		10
Minnesota Agricultural & Economic Development Board, Healthcare Systems, Series A, Pre-refunded 11/15/2007 @ 102 (MBIA)
	5.750%, 11/15/2026 (a)		490		512
Monticello, Big Lake Community Hospital, Series C, Callable 12/01/2012 @ 100
	5.750%, 12/01/2015		2,320		2,375
Moorhead Economic Development Authority, Eventide Senior Housing, Series B, Callable until 05/31/2016 @ 100
	5.750%, 06/01/2016		1,360		1,360
New Hope Housing & Health Care Facilities, Masonic Home North Ridge
	5.300%, 03/01/2007		685		688
New Hope Housing & Health Care Facilities, Masonic Home North Ridge, Callable 03/01/2009 @ 102
	5.500%, 03/01/2010		500		509
Plymouth Health Facilities, Westhealth Project, Series A, Callable until 05/31/2011 @ 100 (FSA)
	6.200%, 06/01/2011		1,360		1,362
Rochester, St. Mary’s Hospital, Escrowed to Maturity, Callable 10/01/2006 @ 100
	5.750%, 10/01/2007 (c)		555		561
Shakopee Health Care Facilities, St. Francis Regional Medical Center
	4.000%, 09/01/2012		305		299
Shakopee Health Care Facilities, St. Francis Regional Medical Center, Callable 09/01/2014 @ 100
	5.000%, 09/01/2017		1,785		1,816
St. Cloud Health Care, St. Cloud Hospital Obligated Group (FSA)
	5.500%, 05/01/2008		1,450		1,491
St. Paul Housing & Redevelopment Authority, HealthEast Project, Callable 11/15/2015 @ 100
	5.150%, 11/15/2020		1,790		1,770
St. Paul Port Authority, HealthEast Midway Campus, Series A (MLO)
	5.250%, 05/01/2015		1,500		1,498
St. Paul Port Authority, HealthEast Midway Campus, Series A, Callable 05/01/2015 @ 100 (MLO)
	5.750%, 05/01/2025		2,000		2,025
Stillwater Health Care, Health Systems Obligation Group
	4.250%, 06/01/2015		300		291
Stillwater Health Care, Health Systems Obligation Group, Callable 06/01/2015 @ 100
	4.250%, 06/01/2016		760		725
Todd, Morrison, Cass & Wadena Counties, United Hospital District
	4.250%, 12/01/2012		425		420
	4.000%, 12/01/2013		400		387
Winona Health Care Facilities, Series A, Callable 07/01/2012 @ 102
	5.300%, 07/01/2017		525		538
	5.350%, 07/01/2018		590		605
					46,193
Housing – 1.4%
Dakota County Housing & Redevelopment Authority, Single Family Mortgages, Callable 10/01/2007 @ 101.50 (AMT) (FNMA) (GNMA)
	5.125%, 10/01/2020		80		80
Minneapolis Mortgage Revenue, Convertible CABs, Callable until 09/30/2012 @ 100
	7.000%, 10/01/2012		59		30
Minnesota State Housing Finance Agency, Rental Housing, Series D, Callable until 01/31/2007 @ 101 (MBIA)
	5.450%, 08/01/2007		245		246
Minnesota State Housing Finance Agency, Single Family Mortgages, Series B, Callable 07/01/2009 @ 100 (AMT)
	5.550%, 07/01/2024		425		431
Moorhead Senior Housing Revenue, Sheyenne Crossing Project, Callable 04/01/2014 @ 101
	5.600%, 04/01/2025		2,000		1,981

First American Funds Annual Report 2006      73

Schedule of  Investments continued

Minnesota Intermediate Tax Free Fund (continued)
DESCRIPTION		PAR		VALUE
South St. Paul Housing & Redevelopment Authority, Single Family Mortgages, Callable until 08/31/2007 @ 100 (FNMA)
	5.100%, 09/01/2007	$	25	$	25
					2,793
Lease Revenue – 3.9%
Andover Economic Development Authority, Andover Community Center, Callable 02/01/2014 @ 100 (MLO)
	5.000%, 02/01/2019		1,225		1,254
Eden Prairie Housing & Redevelopment Authority, Series A, Callable 12/01/2010 @ 100 (MLO)
	5.000%, 12/01/2011		255		266
Pine County Housing & Redevelopment Authority, Series A (MLO)
	4.500%, 02/01/2015		440		437
	4.500%, 02/01/2016		465		457
Pine County Housing & Redevelopment Authority, Series A, Callable 02/01/2016 @ 100 (MLO)
	4.500%, 02/01/2017		385		375
St. Paul Housing & Redevelopment Authority, Smith Avenue Transit Center, Callable 06/01/2010 @ 100 (MLO)
	4.000%, 06/01/2012		1,500		1,488
St. Paul Port Authority, Office Building, Callable 12/01/2012 @ 100 (MLO)
	5.000%, 12/01/2019		2,415		2,494
St. Paul Recreational Facilities, Highland National (MLO)
	4.000%, 10/01/2015		115		112
St. Paul Recreational Facilities, Highland National, Callable 10/01/2015 @ 100 (MLO)
	5.000%, 10/01/2020		1,000		1,031
					7,914
Miscellaneous – 1.0%
Minnesota State Retirement Systems Building, Callable 06/01/2010 @ 100
	5.450%, 06/01/2012		550		578
Seaway Port Authority of Duluth, Cargill Income Project
	4.200%, 05/01/2013		1,500		1,479
					2,057
Recreational Facility Authority – 1.4%
St. Paul Port Authority, Hotel Facilities, Radisson Kellogg Project, Series 2, Escrowed to Maturity
	6.700%, 08/01/2007 (c)		960		975
St. Paul Port Authority, Hotel Facilities, Radisson Kellogg Project, Series 2, Pre-refunded 08/01/2008 @ 103
	6.875%, 08/01/2010 (a)		1,685		1,816
					2,791
Revolving Funds – 1.3%
Minnesota Public Facilities Authority, Drinking Water, Series B, Pre-refunded 03/01/2009 @ 100
	5.125%, 03/01/2019 (a)		2,000		2,064
Minnesota Public Facilities Authority, Water Pollution Control, Callable 03/01/2007 @ 100
	5.000%, 03/01/2009		590		594
					2,658
Tax Revenue – 2.1%
Childrens Trust Fund, Puerto Rico, Tobacco Settlement
	4.000%, 05/15/2012		500		484
Minneapolis, St. Anthony Falls Project, Callable 02/01/2014 @ 100
	5.300%, 02/01/2021		570		564
Minneapolis, St. Anthony Falls Project, Callable 03/01/2012 @ 102
	5.000%, 02/01/2017		1,040		1,014
St. Paul Port Authority, Energy Park, Tax Increment, Escrowed to Maturity (FSA)
	5.000%, 02/01/2008 (c)		2,100		2,122
					4,184
Transportation – 5.9%
Minneapolis & St. Paul Metropolitan Airports Commission, Series A, Callable 01/01/2013 @ 100 (MBIA)
	5.000%, 01/01/2020		2,200		2,266
Minneapolis & St. Paul Metropolitan Airports Commission, Series B (AMT) (FGIC)
	5.750%, 01/01/2010		2,880		3,033
Minneapolis & St. Paul Metropolitan Airports Commission, Series B, Callable 01/01/2009 @ 101 (AMT) (FGIC)
	5.625%, 01/01/2014		1,000		1,039
Minneapolis & St. Paul Metropolitan Airports Commission, Series C,     Callable 01/01/2011 @ 100 (FGIC)
	5.125%, 01/01/2020		3,095		3,210
Minnesota Public Facilities Authority Transportation, Callable 03/01/2010 @ 100
	5.000%, 03/01/2012		970		1,001
Puerto Rico Commonwealth, Highway Transportation Authority, Series X (MBIA)
	5.500%, 07/01/2013		1,250		1,346
					11,895
Utilities – 12.7%
Chaska Electric, Series A
	5.600%, 10/01/2008		680		703
	5.650%, 10/01/2009		720		753
	5.650%, 10/01/2010		760		804
	4.000%, 10/01/2012		500		492
	4.200%, 10/01/2015		1,000		977
Cohasset Pollution Control, Allete Project, Callable 07/01/2014 @ 100 (RAAI)
	4.950%, 07/01/2022		2,230		2,227
Northern Minnesota Municipal Power Agency, Electric System (FSA)
	5.500%, 01/01/2008		2,090		2,141
Princeton Public Utility System, Callable 04/01/2012 @ 100
	4.100%, 04/01/2015		450		437
Rochester Electric Utility, Callable 12/01/2010 @ 100
	5.000%, 12/01/2016		1,150		1,177

The accompanying notes are an integral part of the financial statements.

74      First American Funds Annual Report 2006

Minnesota Intermediate Tax Free Fund (continued)
DESCRIPTION		PAR		VALUE
Southern Minnesota Municipal Power Agency, Series A (AMBAC)
	5.250%, 01/01/2014	$	3,415	$	3,653
Southern Minnesota Municipal Power Agency, Series A, Callable 01/01/2009 @ 101 (AMBAC)
	5.000%, 01/01/2011		1,270		1,312
Southern Minnesota Municipal Power Agency, Series A, Zero Coupon Bond (MBIA)
	5.257%, 01/01/2020 (d)		3,500		1,840
	5.275%, 01/01/2021 (d)		5,000		2,495
Western Minnesota Municipal Power Agency, Series A, Callable 01/01/2011 @ 100 (AMBAC)
	5.500%, 01/01/2012		1,360		1,443
Western Minnesota Municipal Power Agency, Series A, Callable until 12/31/2006 @ 102 (AMBAC)
	5.500%, 01/01/2011		5,000		5,166
					25,620
Total Revenue Bonds					129,468
General Obligations – 33.6%
Anoka County Capital Improvements, Series B
	4.550%, 01/01/2011		1,960		2,003
Anoka-Hennepin Independent School District #11, Callable 02/01/2011 @ 100 (MSDCEP)
	5.000%, 02/01/2014		2,000		2,078
Anoka-Hennepin Independent School District #11, Series A, Callable 02/01/2011 @ 100 (MSDCEP)
	5.000%, 02/01/2012		1,000		1,041
Anoka-Hennepin Independent School District #11, Series A, Crossover Refunded 02/01/2010 @ 100 (MSDCEP)
	5.375%, 02/01/2013 (e)		600		629
Bloomington Independent School District #271, Series B, Crossover Refunded 02/01/2010 @ 100 (MSDCEP)
	5.250%, 02/01/2011 (e)		1,000		1,041
Brooklyn Center Independent School District #286, Series A, Callable 02/01/2016 @ 100 (MBIA) (MSDCEP)
	4.250%, 02/01/2017		510		505
Buffalo Independent School District #877, Series B (FSA) (MSDCEP)
	4.500%, 02/01/2013		325		334
Cambridge Independent School District #911, Series A, Callable 02/01/2015 @ 100 (MSDCEP)
	4.000%, 02/01/2016		1,060		1,037
Cambridge Independent School District #911, Series B, Zero Coupon Bond, Callable 02/01/2018 @ 86.965 (MBIA) (MSDCEP)
	4.710%, 02/01/2021 (d)		645		307
Centennial Independent School District #12, Series A, Callable 02/01/2012 @ 100 (FSA) (MSDCEP)
	5.000%, 02/01/2014		1,040		1,086
Crow Wing County, Series A (MBIA)
	4.500%, 02/01/2014		1,480		1,519
Dakota County, Capital Improvements, Series C
	4.850%, 02/01/2010		1,000		1,033
Delano Independent School District #879, Callable 02/01/2015 @ 100 (FSA) (MSDCEP)
	4.250%, 02/01/2019		900		880
Farmington Independent School District #192, Callable 06/01/2013 @ 100 (MBIA) (MSDCEP)
	4.000%, 06/01/2016		1,000		977
Howard Lake, Waverly & Winsted School District #2687, School Building, Series A (FSA) (MSDCEP)
	4.000%, 02/01/2013		705		702
Lakeville Independent School District #194, Callable 02/01/2009 @ 100 (MSDCEP)
	5.000%, 02/01/2016		2,000		2,046
Lakeville Independent School District #194, Series A, Callable 02/01/2013 @ 100 (FGIC) (MSDCEP)
	5.000%, 02/01/2022		2,435		2,501
Lakeville Independent School District #194, Series A, Crossover Refunded 02/01/2008 @ 100 (MSDCEP)
	5.125%, 02/01/2022 (e)		1,000		1,018
Minneapolis & St. Paul Metropolitan Council, Waste Water Treatment, Series A, Callable 03/01/2011 @ 100
	5.000%, 03/01/2013		1,890		2,000
Monticello, Series A, Callable 02/01/2013 @ 100 (FSA)
	4.000%, 02/01/2014		500		495
Moorhead Independent School District #152 (MSDCEP)
	5.000%, 04/01/2012		1,220		1,281
Moorhead Independent School District #152, Callable 04/01/2014 @ 100 (MSDCEP)
	4.000%, 04/01/2015		1,100		1,083
Moorhead Independent School District #152,     Crossover Refunded 04/01/2012 @ 100 (FGIC) (MSDCEP)
	5.000%, 04/01/2015 (e)		3,450		3,598
	5.000%, 04/01/2016 (e)		2,510		2,618
Mounds View Independent School District #621, Series A (MSDCEP)
	5.250%, 02/01/2010		1,230		1,286
Mounds View Independent School District #621, Series A, Callable 02/01/2012 @ 100 (MBIA) (MSDCEP)
	5.000%, 02/01/2018		2,340		2,423
	5.000%, 02/01/2019		2,565		2,650
Mounds View Independent School District #621, Series A, Crossover Refunded 02/01/2011 @ 100 (MSDCEP)
	5.250%, 02/01/2012 (e)		1,000		1,048
	5.350%, 02/01/2016 (e)		1,000		1,053
Northfield Independent School District #659, Callable 02/01/2011 @ 100 (MSDCEP)
	4.600%, 02/01/2013		1,100		1,126
	5.000%, 02/01/2015		1,295		1,348
Pequot Lakes Independent School District #186, Callable 02/01/2012 @ 100 (FGIC) (MSDCEP)
	5.125%, 02/01/2018		500		522
Perham, Callable 05/01/2011 @ 100 (AMT)
	5.850%, 05/01/2015		1,205		1,245
Pipestone-Jasper Independent School District #2689, Crossover Refunded 03/01/2009 @ 100 (FGIC) (MSDCEP)
	5.400%, 03/01/2013 (e)		1,095		1,137
Puerto Rico Commonwealth (MBIA)
	6.000%, 07/01/2014		1,605		1,804
Puerto Rico Commonwealth, Government Development, Series B
	5.000%, 12/01/2014		1,000		1,029

First American Funds Annual Report 2006      75

Schedule of  Investments continued

Minnesota Intermediate Tax Free Fund (continued)
DESCRIPTION		PAR/SHARES		VALUE
Puerto Rico Commonwealth, Series A (XLCA)
	5.500%, 07/01/2017	$	1,000	$	1,095
Ramsey County, Series D
	5.000%, 02/01/2014		2,000		2,124
Robbinsdale Independent School District #281, Crossover Refunded 02/01/2009 @ 100 (MBIA) (MSDCEP)
	5.000%, 02/01/2016 (e)		1,000		1,025
Robbinsdale Independent School District #281, Crossover Refunded 02/01/2012 @ 100 (FSA) (MSDCEP)
	5.000%, 02/01/2019 (e)		1,160		1,198
	5.000%, 02/01/2020 (e)		1,215		1,250
Rochester Independent School District #535, Series A, Callable 02/01/2011 @ 100 (MSDCEP)
	5.000%, 02/01/2015		1,595		1,657
Sauk Rapids Independent School District #47, Series B, Zero Coupon Bond, Crossover Refunded 02/01/2011 @ 89.368 (FSA) (MSDCEP)
	5.700%, 02/01/2013 (d) (e)		1,055		781
Sauk Rapids Independent School District #47, Series B, Zero Coupon Bond, Crossover Refunded 02/01/2011 @ 94.63 (FSA) (MSDCEP)
	5.753%, 02/01/2012 (d) (e)		1,790		1,404
South Washington County, Independent School District #833, Series B, Callable 02/01/2012 @ 100 (FSA) (MSDCEP)
	5.000%, 02/01/2015		1,030		1,074
St. Louis Park Independent School District #283, Crossover Refunded 02/01/2009 @ 100 (MSDCEP)
	5.250%, 02/01/2010 (e)		1,500		1,549
	5.600%, 02/01/2015 (e)		725		752
St. Michael Independent School District #885, Callable 02/01/2012 @ 100 (FSA) (MSDCEP)
	5.000%, 02/01/2014		1,690		1,765
	5.000%, 02/01/2017		1,000		1,036
Stillwater Independent School District #834, Callable 02/01/2009 @ 100 (MSDCEP)
	4.750%, 02/01/2011		2,140		2,182
Stillwater Independent School District #834, Series A, Callable 02/01/2013 @ 100 (FSA) (MSDCEP)
	4.500%, 02/01/2015		505		514
Total General Obligations					67,889
Certificate of Participation – 0.5%
Northeast Metropolitan Intermediate School District #916, Callable 01/01/2014 @ 100 (MLO)
	4.250%, 01/01/2015		1,000		979
Total Municipal Bonds (Cost $194,288)					198,336
Short-Term Investment – 0.7%
Federated Minnesota Municipal Cash Trust (Cost $1,528)			1,527,757		1,528
Total Investments – 98.9% (Cost $195,816)					199,864
Other Assets and Liabilities, Net – 1.1%					2,147
Total Net Assets – 100.0%				$	202,011

(a)	Pre-refunded issues are typically backed by U.S. government obligations. These bonds mature at the call date and price indicated.
(b)	Security purchased on a when-issued basis. On June 30, 2006, the total cost of investments purchased on a when-issued basis was $1,736 or 0.9% of total net assets. See note 2 in Notes to Financial Statements.
(c)	Escrowed to Maturity issues are typically backed by U.S. government obligations. If callable, these bonds may still be subject to call at the call date and price indicated.
(d)	Zero coupon bonds make no periodic interest payments, but are issued at deep discounts from par value. The rate shown is the effective yield at the time of purchase.
(e)	Crossover Refunded securities are backed by the credit of the refunding issuer. These bonds mature at the call date and price indicated.

ACA – American Capital Access

AMBAC – American Municipal Bond Assurance Corporation

AMT – Alternative Minimum Tax. As of June 30, 2006, the aggregate market value of securities subject to the AMT was $8,845, which represents 4.4% of total net assets.

Convertible CABs –  Convertible Capital Appreciation Bonds initially pay no interest, but accrete in value from the date of issuance through the conversion date. At the conversion date, the bonds start to accrue and pay interest on a semiannual basis until final maturity.

FGIC – Financial Guaranty Insurance Corporation

FNMA – Federal National Mortgage Association

FSA – Financial Security Assurance

GNMA – Government National Mortgage Association

MBIA – Municipal Bond Insurance Association

MLO – Municipal Lease Obligation

MSDCEP – Minnesota School District Credit Enhancement Program

RAAI – Radian Asset Assurance Inc.

XLCA – XL Capital Assurance Inc.

The accompanying notes are an integral part of the financial statements.

76      First American Funds Annual Report 2006

Minnesota Tax Free Fund
DESCRIPTION		PAR		VALUE
Municipal Bonds – 96.4%
Revenue Bonds – 86.3%
Continuing Care Retirement Community – 1.1%
Golden Valley, Covenant Retirement Communities, Series A, Callable 12/01/2009 @ 101
	5.500%, 12/01/2029	$	1,750	$	1,790
Economic Development – 4.8%
Minneapolis Community Development, Series G-3, Pre-refunded 12/01/2011 @ 100
	5.450%, 12/01/2031 (a)		3,250		3,472
Minnesota Agricultural & Economic Development Board, Minnesota Small Business Program, Series A, Callable 08/01/2010 @ 100 (AMT)
	5.550%, 08/01/2016		500		506
Minnesota Agricultural & Economic Development Board, Small Business Development, Series B, Callable 08/01/2008 @ 102 (AMT)
	7.250%, 08/01/2020		1,000		1,053
Minnesota Agricultural & Economic Development Board, Small Business Development, Series C, Callable 08/01/2008 @ 102 (AMT)
	7.250%, 08/01/2020		1,385		1,458
Minnesota Agricultural & Economic Development Board, Small Business Development, Series D, Callable 08/01/2008 @ 102 (AMT)
	7.250%, 08/01/2020		1,120		1,179
					7,668
Education – 6.7%
Golden Valley, The Breck School, Callable 10/01/2009 @ 100
	5.750%, 10/01/2014		1,000		1,046
Minneapolis, The Blake School Project, Callable 09/01/2011 @ 100
	5.450%, 09/01/2021		2,000		2,072
Minnesota State Higher Education Facilities Authority, College of Art & Design, Series 5-D, Callable 05/01/2010 @ 100
	6.625%, 05/01/2020		1,000		1,063
Minnesota State Higher Education Facilities Authority, College of Art & Design, Series 6-K, Callable until 05/01/2015 @ 100
	5.000%, 05/01/2026		1,750		1,753
Minnesota State Higher Education Facilities Authority, St. John University, Series 6-G, Callable 10/01/2015 @ 100
	5.000%, 10/01/2022		1,000		1,028
	4.500%, 10/01/2026		1,000		955
Minnesota State Higher Education Facilities Authority, Vermilion Community College, Series 3-T, Callable 07/01/2006 @ 100
	6.000%, 01/01/2013		470		473
Moorhead Educational Facilities, Concordia College, Series A, Callable 12/15/2015 @ 100
	5.000%, 12/15/2021		1,070		1,098
	5.000%, 12/15/2024		1,240		1,266
					10,754
Healthcare – 28.7%
Bemidji Hospital Facilities, North Country Health Services, Callable 09/01/2006 @ 102
	5.625%, 09/01/2015		1,600		1,636
Cuyuna Range Hospital District, Callable 06/01/2013 @ 101
	5.500%, 06/01/2035		350		351
Cuyuna Range Hospital District, Series A, Callable 06/01/2007 @ 102
	6.000%, 06/01/2029		3,000		3,062
Duluth Economic Development Authority, Benedictine Health System, Callable 02/15/2014 @ 100
	5.250%, 02/15/2028		1,000		1,019
	5.250%, 02/15/2033		1,660		1,682
Fergus Falls Health Care Facilities Authority, Broen Memorial Home, Series A, Callable until 10/31/2006 @ 101
	7.000%, 11/01/2019		1,000		1,003
Glencoe Health Care Services Facilities Project, Glencoe Regional Health, Callable 04/01/2013 @ 101
	5.000%, 04/01/2020		500		503
	5.000%, 04/01/2025		1,000		992
	5.000%, 04/01/2031		1,500		1,471
Glencoe Health Care Services Facilities Project, Glencoe Regional Health, Pre-refunded 04/01/2011 @ 101
	7.500%, 04/01/2031 (a)		1,700		1,939
Maple Grove Health Care Facilities, North Memorial Health Care, Callable 09/01/2015 @ 100
	5.000%, 09/01/2035		2,000		2,003
Marshall Medical Center, Weiner Memorial Medical Center Project, Series A, Callable 11/01/2013 @ 100
	5.250%, 11/01/2016		305		315
	5.850%, 11/01/2023		875		926
Minneapolis Healthcare System, Allina Health System, Series A, Callable 11/15/2012 @ 100
	6.000%, 11/15/2023		1,500		1,606
	5.750%, 11/15/2032		2,400		2,526
Minnesota Agricultural & Economic Development Board, Benedictine Health, Series A, Callable 02/15/2010 @ 101 (MBIA)
	5.250%, 02/15/2015		2,000		2,079
Minnesota Agricultural & Economic Development Board, Fairview Hospital Project, Series A, Callable 11/15/2007 @ 102 (MBIA)
	5.500%, 11/15/2011		500		519
	5.500%, 11/15/2017		205		213
Minnesota Agricultural & Economic Development Board, Fairview Hospital Project, Series A, Callable 11/15/2010 @ 101
	6.375%, 11/15/2029		125		133
Minnesota Agricultural & Economic Development Board, Fairview Hospital Project, Series A, Pre-refunded 11/15/2007 @ 102 (MBIA)
	5.500%, 11/15/2017 (a)		795		828
Minnesota Agricultural & Economic Development Board, Fairview Hospital Project, Series A, Pre-refunded 11/15/2010 @ 101
	6.375%, 11/15/2029 (a)		3,875		4,264
Monticello, Big Lake Community Hospital, Series A, Callable 12/01/2009 @ 100
	5.750%, 12/01/2019		1,000		1,008
Monticello, Big Lake Community Hospital, Series C, Callable 12/01/2012 @ 100
	6.200%, 12/01/2022		1,000		1,027
Moorhead Economic Development Authority, Eventide Senior Housing, Series B, Callable until 05/31/2029 @ 100
	6.000%, 06/01/2029		1,900		1,901

First American Funds Annual Report 2006      77

Schedule of  Investments continued

Minnesota Tax Free Fund (continued)
DESCRIPTION		PAR		VALUE
New Hope Housing & Healthcare Facilities Authority, Masonic Home North Ridge, Callable 03/01/2009 @ 102
	5.750%, 03/01/2015	$	1,600	$	1,636
Rochester Health Care Facilities, Mayo Clinic, Callable 05/15/2016 @ 100
	5.000%, 11/15/2031		1,000		1,016
Shakopee Health Care Facilities, St. Francis Regional Medical Center, Callable 09/01/2014 @ 100
	5.250%, 09/01/2034		2,000		2,029
St. Louis Park Health Care Facilities, Park Nicollet Health Services, Series B, Callable 07/01/2014 @ 100
	5.500%, 07/01/2025		2,000		2,086
St. Paul Housing & Redevelopment Authority, HealthEast Project, Callable 11/15/2015 @ 100
	6.000%, 11/15/2030		800		854
St. Paul Housing & Redevelopment Authority, Regions Hospital, Callable 05/15/2009 @ 100
	5.250%, 05/15/2018		500		505
St. Paul Port Authority, HealthEast Midway Campus, Series A, Callable 05/01/2015 @ 100 (MLO)
	5.875%, 05/01/2030		900		908
St. Paul Port Authority, HealthEast Midway Campus, Series B, Callable 05/01/2015 @ 100 (MLO)
	6.000%, 05/01/2030		1,800		1,820
Stillwater Health Care, Health Systems Obligation Group, Callable 06/01/2015 @ 100
	5.000%, 06/01/2035		1,000		1,001
Winona Health Care Facilities, Series A, Callable 07/01/2012 @ 102
	6.000%, 07/01/2034		1,000		1,059
					45,920
Housing – 12.3%
Dakota County Community Development Agency, Multifamily Housing, Ebenezer Ridges Project, Callable 04/20/2011 @ 102 (GNMA)
	5.900%, 04/20/2042		2,000		2,104
Eden Prairie Multifamily Housing, Parkway Apartments Project, Series A, Callable 02/20/2007 @ 104
	5.700%, 08/20/2022		1,000		1,035
Eden Prairie Multifamily Housing, Preserve Place, Callable 01/20/2008 @ 102 (GNMA)
	5.500%, 01/20/2018		500		512
Hennepin County Housing & Redevelopment Authority, Loring Park Apartments, Callable 08/15/2006 @ 102.50, Mandatory Put 02/15/2009 @ 100 (AMT) (FNMA)
	3.050%, 06/15/2034		2,000		1,935
Hopkins Elderly Housing, St. Theresa Project, Series A, Callable 11/20/2007 @ 102 (GNMA)
	5.600%, 11/20/2017		500		513
Hopkins Multifamily Housing, Renaissance Project, Callable 04/01/2007 @ 102
	6.250%, 04/01/2015		500		517
Maplewood Multifamily Housing, Carefree Cottages II, Callable 04/15/2014 @ 100 (AMT) (FNMA)
	4.800%, 04/15/2034		2,000		1,968
Minnesota State Housing Finance Agency, Rental Housing, Series A, Callable 08/01/2011 @ 100
	3.850%, 02/01/2013		1,430		1,405
Minnesota State Housing Finance Agency, Residential Housing, Series B, Callable 07/01/2011 @ 100 (AMT)
	5.650%, 07/01/2033		835		855
Minnesota State Housing Finance Agency, Residential Housing, Series B, Callable 07/01/2015 @ 100 (AMT)
	4.750%, 07/01/2026		1,000		977
Minnesota State Housing Finance Agency, Residential Housing, Series B1-RMK, Callable 07/01/2011 @ 100 (AMT)
	5.350%, 07/01/2033		1,385		1,402
Minnesota State Housing Finance Agency, Residential Housing, Series F, Callable 07/01/2011 @ 100 (AMT)
	5.400%, 07/01/2030		2,395		2,434
Minnesota State Housing Finance Agency, Single Family Mortgage, Series C, Callable 07/01/2009 @ 100 (AMT)
	6.100%, 07/01/2030		420		423
Moorhead Senior Housing Revenue, Sheyenne Crossing Project, Callable 04/01/2014 @ 101
	5.650%, 04/01/2041		1,620		1,570
Pine City Health Care & Housing Revenue, North Branch, Series A, Callable 04/20/2014 @ 100 (GNMA)
	5.000%, 10/20/2047		550		554
St. Louis Park, Multifamily Housing, Park Ridge Apartments, Callable 11/01/2008 @ 102 (FHA) (GNMA)
	5.250%, 11/01/2020		500		511
White Bear Lake, Multifamily Housing, Lake Square, Series A, Callable 02/01/2007 @ 102 (FHA)
	6.000%, 08/01/2020		1,020		1,045
					19,760
Lease Revenue – 4.5%
New Brighton Economic Development Authority, Public Safety Facility, Leasing Project, Series A, Callable 02/01/2010 @ 100 (MLO)
	4.900%, 02/01/2015		850		864
	5.000%, 02/01/2016		895		911
	5.100%, 02/01/2017		900		917
Pine County Housing & Redevelopment Authority, Series A, Callable 02/01/2016 @ 100 (MLO)
	5.000%, 02/01/2028		1,000		993
	5.000%, 02/01/2031		1,890		1,861
St. Paul Port Authority, Office Building at Robert St.-3-11 (MLO)
	4.000%, 12/01/2013		1,695		1,672
					7,218

The accompanying notes are an integral part of the financial statements.

78      First American Funds Annual Report 2006

Minnesota Tax Free Fund (continued)
DESCRIPTION		PAR		VALUE
Miscellaneous – 6.0%
Little Canada Commercial Development, RLF Minnesota Project, Callable 10/01/2006 @ 100 (MLO)
	5.000%, 04/01/2013	$	1,040	$	1,042
Minnesota State Retirement Systems Building, Callable 06/01/2010 @ 100
	5.875%, 06/01/2027		7,000		7,445
Seaway Port Authority of Duluth, Cargill Income Project
	4.200%, 05/01/2013		1,130		1,114
					9,601
Recreational Facility Authority – 2.6%
Moorhead, Golf Course, Series B, Callable 12/01/2008 @ 100
	5.875%, 12/01/2021		2,000		2,023
St. Paul Port Authority, Radisson Kellogg Project, Series 2, Pre-refunded 08/01/2008 @ 103
	7.375%, 08/01/2029 (a)		2,000		2,191
					4,214
Tax Revenue – 0.5%
Duluth Economic Development Authority
	8.000%, 08/01/2008		140		148
Minneapolis, St. Anthony Falls Project, Callable 02/01/2014 @ 100
	5.650%, 02/01/2027		400		396
Minneapolis, St. Anthony Falls Project, Callable 03/01/2012 @ 102
	5.750%, 02/01/2027		300		300
					844
Transportation – 2.7%
Minneapolis & St. Paul Metropolitan Airports Commission, Series A, Pre-refunded 01/01/2010 @ 101 (FGIC)
	5.750%, 01/01/2032 (a)		3,000		3,205
Minneapolis & St. Paul Metropolitan Airports Commission, Series B, Callable 01/01/2015 @ 100 (AMBAC) (AMT)
	5.000%, 01/01/2019		1,000		1,027
					4,232
Utilities – 16.4%
Chaska Electric, Series A, Callable 10/01/2010 @ 100
	6.100%, 10/01/2030		45		48
Chaska Electric, Series A, Pre-refunded 10/01/2010 @ 100
	6.100%, 10/01/2030 (a)		4,955		5,368
Minnesota Municipal Power Agency, Electricity Revenue, Callable 10/01/2015 @ 100
	5.000%, 10/01/2035		1,500		1,502
Puerto Rico Electric Power Authority, Series SS, Callable until 06/30/2024 @ 100 (MBIA)
	5.000%, 07/01/2024		2,000		2,069
Southern Minnesota Municipal Power Agency, Series A, Zero Coupon Bond (MBIA)
	6.650%, 01/01/2019 (b)		4,000		2,219
	6.700%, 01/01/2024 (b)		12,000		5,143
	5.800%, 01/01/2025 (b)		7,000		2,858
	5.600%, 01/01/2026 (b)		8,300		3,211
	5.151%, 01/01/2027 (b)		3,000		1,103
Western Minnesota Municipal Power Agency, Callable 01/01/2011 @ 100 (AMBAC)
	5.500%, 01/01/2014		1,545		1,636
	5.500%, 01/01/2015		550		582
Western Minnesota Municipal Power Agency, Escrowed to Maturity, Callable until 12/31/2015 @ 100 (MBIA)
	9.750%, 01/01/2016 (c)		410		578
					26,317
Total Revenue Bonds					138,318
General Obligations – 10.1%
Anoka-Hennepin Independent School District #11, Series A, Crossover Refunded 02/01/2010 @ 100 (MSDCEP)
	5.750%, 02/01/2017 (d)		1,000		1,061
Becker Independent School District #726, Series A, Crossover Refunded 02/01/2010 @ 100 (FSA) (MSDCEP)
	6.000%, 02/01/2021 (d)		1,000		1,066
Brooklyn Center Independent School District #286, Series A, Callable 02/01/2016 @ 100 (MSDCEP)
	4.500%, 02/01/2029		1,135		1,094
Chaska Independent School District #112, Series A, Crossover Refunded 02/01/2009 @ 100 (FSA) (MSDCEP)
	5.700%, 02/01/2018 (d)		1,000		1,044
Columbia Heights Independent School District #13, Crossover Refunded 02/01/2007 @ 100     (MSDCEP)
	5.250%, 02/01/2015 (d)		1,000		1,008
Delano Independent School District #879, Series A, Crossover Refunded 02/01/2011 @ 100 (FSA) (MSDCEP)
	5.875%, 02/01/2025 (d)		1,000		1,076
Minneapolis Sports Arena, Callable 04/01/2008 @ 100
	5.100%, 04/01/2013		500		509
	5.100%, 10/01/2013		250		255
Perham, Disposal System, Callable 05/01/2011 @ 100 (AMT)
	6.000%, 05/01/2022		1,500		1,559
Sauk Rapids Independent School District #47, Series A, Crossover Refunded 02/01/2011 @ 100 (MBIA) (MSDCEP)
	5.750%, 02/01/2023 (d)		2,000		2,149
St. Louis Park Independent School District #283, Crossover Refunded 02/01/2009 @ 100 (MSDCEP)
	5.700%, 02/01/2017 (d)		2,000		2,082
St. Michael Independent School District #885, Series A, Callable 02/01/2016 @ 100 (FSA) (MSDCEP)
	4.750%, 02/01/2028		1,200		1,205

First American Funds Annual Report 2006      79

Schedule of  Investments continued

Minnesota Tax Free Fund (concluded)
DESCRIPTION		PAR/SHARES		VALUE
Wayzata Independent School District #284, Series A, Crossover Refunded 02/01/2007 @ 100
	5.500%, 02/01/2017 (d)	$	2,000	$	2,018
Total General Obligations					16,126
Total Municipal Bonds (Cost $148,629)					154,444
Short-Term Investments – 3.4%
Money Market Funds – 3.3%
Federated Minnesota Municipal Cash Trust			5,272,876		5,273
First American Tax Free Obligations Fund, Class Z (e)			45,558		46
					5,319
U.S. Treasury Obligation – 0.1%
U.S. Treasury Bill
	4.640%, 07/20/2006 (f)	$	80		79
Total Short-Term Investments (Cost $5,398)					5,398
Total Investments – 99.8% (Cost $154,027)					159,842
Other Assets and Liabilities, Net – 0.2%					419
Total Net Assets – 100.0%				$	160,261

(a)	Pre-refunded issues are typically backed by U.S. government obligations. These bonds mature at the call date and price indicated.
(b)	Zero coupon bonds make no periodic interest payments, but are issued at deep discounts from par value. The rate shown is the effective yield at the time of purchase.
(c)	Escrowed to Maturity issues are typically backed by U.S. government obligations. If callable, these bonds may still be subject to call at the call date and price indicated.
(d)	Crossover Refunded securities are backed by the credit of the refunding issuer. These bonds mature at the call date and price indicated.
(e)	Investment in affiliated security. This money market fund is advised by FAF Advisors, Inc., which also serves as advisor for this fund. See note 3 in Notes to Financial Statements.

(f)  Yield shown is effective yield as of June 30, 2006.

AMBAC – American Municipal Bond Assurance Corporation

AMT – Alternative Minimum Tax. As of June 30, 2006, the aggregate market value of securities subject to the AMT was $16,776, which represents 10.5% of total net assets.

FGIC – Financial Guaranty Insurance Corporation

FHA – Federal Housing Authority

FNMA – Federal National Mortgage Association

FSA – Financial Security Assurance

GNMA – Government National Mortgage Association

MBIA – Municipal Bond Insurance Association

MLO – Municipal Lease Obligation

MSDCEP – Minnesota School District Credit Enhancement Program

Missouri Tax Free Fund
DESCRIPTION		PAR		VALUE
Municipal Bonds – 98.4%
Revenue Bonds – 77.1%
Continuing Care Retirement Communities – 3.2%
Cole County Industrial Development Authority, Lutheran Services Heisinger Project, Callable 02/01/2014 @ 100
	5.250%, 02/01/2024	$	2,000	$	2,023
Illinois Financing Authority, Friendship Village, Schaumburg, Series A, Callable 02/15/2015
	5.375%, 02/15/2025		1,800		1,791
Missouri State Health & Educational Facilities Authority, Senior Living Facilities, Lutheran Senior, Series A, Callable 02/01/2015 @ 100
	5.375%, 02/01/2035		1,500		1,516
					5,330
Education – 9.2%
Missouri State Health & Educational Facilities Authority, University of Missouri-Columbia Arena Project, Callable 11/01/2011 @ 100
	5.000%, 11/01/2019		2,540		2,620
Missouri State Health & Educational Facilities Authority, Washington University, Series A, Callable 02/15/2015 @ 100
	5.000%, 02/15/2019		1,465		1,526
Missouri State Health & Educational Facilities Authority, Washington University, Series A, Callable 06/15/2011 @ 100
	5.125%, 06/15/2041		2,150		2,185
Northwest Missouri State University Housing, Callable 06/01/2013 @ 100 (MBIA)
	5.000%, 06/01/2016		650		676
University of Missouri, Pre-refunded 11/01/2007 @ 101
	5.500%, 11/01/2021 (a)		3,000		3,095
	5.800%, 11/01/2027 (a)		5,000		5,177
					15,279
Healthcare – 15.5%
Boone County Hospital, Callable 08/01/2012 @ 100
	5.050%, 08/01/2020		1,200		1,209
Cape Girardeau County Authority, Southeast Missouri Hospital Association,     Callable 06/01/2012 @ 100
	5.625%, 06/01/2022		1,500		1,540
Carthage Hospital Revenue, Callable 04/01/2016 @ 100
	6.000%, 04/01/2038		1,000		985
Hannibal Industrial Development Authority Health Facilities
	4.300%, 03/01/2013		1,345		1,326
Hannibal Industrial Development Authority Health Facilities, Callable 03/01/2016 @ 100
	5.000%, 03/01/2022		1,000		1,002
Joplin Industrial Development Authority Healthcare Facilities, Freeman Health Systems Project, Callable 02/15/2015 @ 102
	5.500%, 02/15/2024		2,000		2,070
Missouri State Health & Educational Facilities Authority, BJC Health Systems, Series A, Escrowed to Maturity
	6.750%, 05/15/2012 (b)		3,310		3,768

The accompanying notes are an integral part of the financial statements.

80      First American Funds Annual Report 2006

Missouri Tax Free Fund (continued)
DESCRIPTION		PAR		VALUE
Missouri State Health & Educational Facilities Authority, Jefferson Memorial Hospital (RAAI)
	4.250%, 08/15/2013	$	735	$	731
Missouri State Health & Educational Facilities Authority, Jefferson Memorial Hospital, Callable 08/15/2014 @ 100 (RAAI)
	5.000%, 08/15/2019		2,300		2,349
Missouri State Health & Educational Facilities Authority, Lake Regional Health System Project
	5.000%, 02/15/2012		515		529
Missouri State Health & Educational Facilities Authority, SSM Health, Series A, Pre-refunded 06/01/2008 @ 101 (MBIA)
	5.000%, 06/01/2018 (a)		1,555		1,603
Missouri State Health & Educational Facilities Authority, SSM Health, Series B, Callable 06/01/2008 @ 101 (MBIA)
	5.000%, 06/01/2018		445		454
Missouri State Health & Educational Facilities Authority, St. Lukes Health Systems, Series A
	5.000%, 11/15/2014		3,000		3,140
North Kansas City Hospital, Series A, Callable 11/15/2013 @ 100 (FSA)
	5.000%, 11/15/2021		250		257
Saline County Industrial Development Authority, Health Facilities, John Fitzgibbon Memorial Hospital, Callable 12/01/2015 @ 100
	5.625%, 12/01/2035		1,000		987
St. Louis County Industrial Development Authority, Ranken-Jordan Project, Series A, Callable 11/15/2013 @ 100
	6.625%, 11/15/2035		500		513
University Health Facilities, University of Missouri Health System, Series A, Pre-refunded 11/01/2006 @ 102 (AMBAC)
	5.600%, 11/01/2026 (a)		3,000		3,077
					25,540
Housing – 2.9%
Missouri State Housing Development Commission, Homeownership Loan Program, Series B, Callable 09/01/2015 @ 100 (AMT) (GNMA) (FNMA)
	4.800%, 09/01/2031		2,500		2,422
Missouri State Housing Development Commission, Homeownership Loan Program, Series C1, Callable 09/01/2015 @ 100 (AMT) (GNMA) (FNMA)
	5.000%, 09/01/2037		1,000		984
University City Industrial Development Authority, Multifamily Housing, Series A, Callable 07/31/2006 @ 102 (GNMA)
	5.950%, 12/20/2025		1,400		1,419
					4,825
Lease Revenue – 15.1%
Clay County, Public Building Authority, Callable 05/15/2008 @ 100 (MLO)
	5.125%, 05/15/2014		2,000		2,039
Kansas City Municipal Assistance, Capital Appreciation Leasehold, Series B-1, Zero Coupon Bond (MLO)
	5.260%, 04/15/2027 (c)		2,000		703
Kansas City Special Facilities Revenue, MCI Overhaul Base Project, Series G, Callable 09/01/2015 @ 100 (AMT) (MLO)
	4.750%, 09/01/2028		4,000		3,798
Missouri State Board of Public Buildings, Series A, Callable 10/15/2013 @ 100 (MLO)
	5.000%, 10/15/2027		1,000		1,023
Missouri State Board of Public Buildings, State Office Building Special Obligation, Series A, Callable 05/01/2011 @ 100 (MBIA) (MLO)
	5.000%, 05/01/2023		2,000		2,048
	5.000%, 05/01/2024		5,130		5,246
	5.125%, 05/01/2026		5,000		5,137
Missouri State Board of Public Buildings, State Office Building Special Obligation, Series A, Callable 05/01/2011 @ 100 (MLO)
	5.000%, 05/01/2017		1,000		1,032
Missouri State Financial Board Infrastructure Facilities, Branson, Series A, Callable 12/01/2012 @ 100 (MLO)
	5.000%, 12/01/2017		1,000		1,008
	5.375%, 12/01/2022		750		766
Springfield Public Building, Capital Improvement Project, Callable 03/01/2014 @ 100 (AMBAC) (MLO)
	5.000%, 03/01/2024		2,000		2,050
Springfield Public Utility Revenue, Series A (MBIA) (MLO)
	4.000%, 12/01/2014		150		148
					24,998
Miscellaneous – 1.9%
Missouri Financial Board Cultural Facilities, Nelson Gallery Foundation, Series A,     Callable 12/01/2011 @ 100
	5.250%, 12/01/2014		1,000		1,054
Platte County Industrial Development Transportation Authority (MLO)
	4.000%, 12/01/2014		780		766
St. Louis Industrial Development Authority, St. Louis Science Center, Series A (RAAI)
	4.000%, 02/15/2014		315		309
Sugar Creek, Lafarge North America, Series A, Callable 06/01/2013 @ 101 (AMT)
	5.650%, 06/01/2037		1,000		1,027
					3,156
Revolving Funds – 14.1%
Missouri State Environmental Improvement & Energy Resources Authority, Series A, State Revolving Fund Program, Pre-refunded 07/01/2010 @ 100
	5.500%, 07/01/2016 (a)		1,875		1,984
Missouri State Environmental Improvement & Energy Resources Authority, Water Pollution Control, Series A, State Revolving Fund Program, Callable 07/01/2010 @ 100
	5.500%, 07/01/2016		620		653
Missouri State Environmental Improvement & Energy Resources Authority, Water Pollution Control, Series A, State Revolving program, Callable 07/01/2016 @ 100
	4.750%, 07/01/2020		2,000		2,045
Missouri State Environmental Improvement & Energy Resources Authority, Water Pollution Control, Series B, Drinking Water, Callable 01/01/2013 @ 100
	5.500%, 07/01/2014		2,000		2,160

First American Funds Annual Report 2006      81

Schedule of  Investments continued

Missouri Tax Free Fund (continued)
DESCRIPTION		PAR		VALUE
Missouri State Environmental Improvement & Energy Resources Authority, Water Pollution Control, Series B, Drinking Water, Callable 01/01/2009 @ 101
	5.250%, 01/01/2015	$	2,180	$	2,259
Missouri State Environmental Improvement & Energy Resources Authority, Water Pollution Control, Series C, State Revolving Fund Program
	5.375%, 07/01/2014		2,400		2,609
	5.375%, 07/01/2015		1,500		1,637
	5.375%, 07/01/2016		2,000		2,182
Missouri State Environmental Improvement & Energy Resources Authority, Water Pollution Control, Series C, State Revolving Fund Program, Callable 07/01/2011 @ 100
	5.000%, 07/01/2023		6,655		6,847
Missouri State Environmental Improvement & Energy Resources Authority, Water Pollution Control, Series C, State Revolving Fund Program, Callable 01/01/2016 @ 100
	4.750%, 07/01/2025		1,000		1,011
					23,387
Tax Revenue – 4.3%
Belton Increment Tax Revenue, Town Center Project, Callable 03/01/2016 @ 100
	5.500%, 03/01/2020		250		246
	5.625%, 03/01/2025		600		591
Branson Industrial Development Authority Tax Increment Revenue, Branson Landing Retail Project, Callable 06/01/2015 @ 100
	5.500%, 06/01/2029		1,000		997
Brentwood Tax Increment Revenue, Brentwood Square Project
	4.125%, 05/01/2011		250		245
Fenton Tax Increment Revenue, Gravois Bluffs Redevelopment Project
	5.000%, 04/01/2014		1,000		1,024
Howard Bend Levee District (XLCA)
	5.500%, 03/01/2026		1,745		1,921
Riverside Tax Increment Revenue, L-385 Levee Project, Callable 05/01/2015 @ 100 (MLO)
	5.250%, 05/01/2020		1,000		1,008
St. Joseph Industrial Development Authority, Tax Increment Revenue, Shoppes at North Village Project, Callable 11/01/2014 @ 100
	5.375%, 11/01/2023		1,000		995
					7,027
Transportation – 6.7%
Missouri State Highways & Transportation Road, Series A, Callable 02/01/2011 @ 100
	5.250%, 02/01/2020		5,000		5,223
Missouri State Highways & Transportation Road, Series A, Callable 02/01/2012 @ 100
	5.000%, 02/01/2022		3,725		3,818
Puerto Rico Commonwealth Highway & Transportation Authority, Series K, Callable 07/01/2015 @ 100
	5.000%, 07/01/2017		1,000		1,019
St. Louis Airport, Capital Improvement Program, Series A, Callable 07/01/2012 @ 100 (MBIA)
	5.375%, 07/01/2021		1,000		1,055
					11,115
Utilities – 4.2%
Kansas City Water, Series B, Callable 12/01/2006 @ 101
	5.000%, 12/01/2016		2,200		2,231
Metropolitan St. Louis Sewer District, Series A, Callable 05/01/2014 @ 100 (MBIA)
	5.000%, 05/01/2023		1,075		1,107
Missouri Joint Municipal Electric Utilities, Commission Power Project Revenue, Plum Point Project, Callable 01/01/2016 @ 100 (MBIA)
	4.200%, 01/01/2018		40		39
Missouri Joint Municipal Electric Utilities, Commission Power Project Revenue, Plum Point Project (MBIA)
	5.000%, 01/01/2016		1,500		1,584
Missouri State Development Financial Board, Independence Water System, Callable 11/01/2014 @ 100 (AMBAC)
	5.000%, 11/01/2024		1,000		1,029
Missouri State Environmental Improvement & Energy Resources Authority, Water Pollution Control, Kansas City Power & Light
	4.000%, 01/02/2012		1,000		981
					6,971
Total Revenue Bonds					127,628
General Obligations – 19.5%
Columbia School District, Crossover Refunded 03/01/2007 @ 100
	6.300%, 03/01/2011 (d)		365		371
Hazelwood School District, Series A, Callable 03/01/2015 @ 100 (FGIC) (MDDP)
	5.000%, 03/01/2017		570		598
Independence School District, Callable 03/01/2013 @ 100 (MBIA) (MDDP)
	5.000%, 03/01/2020		1,000		1,032
Jackson County School District #7, Lee’s Summit, Callable 03/01/2016 @ 100 (MBIA)
	4.750%, 03/01/2020		560		570
Jackson County School District #7, Lee’s Summit, Callable 03/01/2015 @ 100 (MBIA) (MDDP)
	4.250%, 03/01/2016		2,000		1,993
Jefferson City School District, Series A (MDDP)
	6.700%, 03/01/2011		1,000		1,083
Miller County School District #2, Callable 03/01/2016 @ 100 (FSA)
	5.000%, 03/01/2017		1,000		1,053
Platte County School District #R-3, Callable 03/01/2014 @ 100 (MBIA)
	5.000%, 03/01/2024		1,000		1,028
Puerto Rico Municipal Finance Agency, Pre-refunded 08/01/2009 @ 101
	5.500%, 08/01/2023 (a)		3,000		3,169
Riverview Gardens School District Educational Facilities Authority, Series A (MLO)
	4.125%, 04/01/2016		500		486
St. Charles Community College (MBIA)
	5.250%, 02/15/2018		1,390		1,499
St. Charles County, Francis Howell School District (FGIC) (MDDP)
	5.250%, 03/01/2018		2,095		2,256
St. Joseph School District (FSA) (MDDP)
	5.250%, 03/01/2017		1,500		1,619

The accompanying notes are an integral part of the financial statements.

82      First American Funds Annual Report 2006

Missouri Tax Free Fund (concluded)
DESCRIPTION		PAR/SHARES		VALUE
St. Louis County
	5.000%, 02/01/2012	$	3,250	$	3,426
St. Louis County Public Safety, Pre-refunded 08/15/2009 @ 100 (FGIC)
	5.125%, 02/15/2017 (a)		4,185		4,335
St. Louis County Rockwood School District #R-6, Callable 02/01/2011 @ 100 (MDDP)
	5.000%, 02/01/2013		3,000		3,116
St. Louis County Rockwood School District #R-6, Series A, Callable 02/01/2013 @ 100
	5.000%, 02/01/2014		2,000		2,101
St. Louis County School District, Series A (FSA)
	5.000%, 03/01/2014		2,000		2,112
St. Louis County School District, Series A, Callable 03/01/2014 @ 100
	5.000%, 03/01/2016		500		523
Total General Obligations					32,370
Certificates of Participation – 1.8%
Hazelwood School District, Energy Improvements Project
	4.200%, 03/01/2013		405		404
Hazelwood School District, Energy Improvements Project, Callable 03/01/2016 @ 100
	4.500%, 03/01/2017		515		516
	4.500%, 03/01/2018		445		444
Mehlville School District #R-9 (FSA) (MLO)
	5.000%, 09/01/2015		1,500		1,576
Total Certificates of Participation					2,940
Total Municipal Bonds (Cost $160,028)					162,938
Short-Term Investment – 0.5%
First American Tax Free Obligations Fund, Class Z (e)
	(Cost $889)		889,270		889
Total Investments – 98.9% (Cost $160,917)					163,827
Other Assets and Liabilities, Net – 1.1%					1,753
Total Net Assets – 100.0%				$	165,580

(a)	Pre-refunded issues are typically backed by U.S. government obligations. These bonds mature at the call date and price indicated.
(b)	Escrowed to Maturity issues are typically backed by U.S. government obligations. If callable, these bonds may still be subject to call at the call date and price indicated.
(c)	Zero coupon bonds make no periodic interest payments, but are issued at deep discounts from par value. The rate shown is the effective yield at the time of purchase.
(d)	Crossover Refunded securities are backed by the credit of the refunding issuer. These bonds mature at the call date and price indicated.
(e)	Investment in affiliated security. This money market fund is advised by FAF Advisors, Inc., which also serves as advisor for this fund. See note 3 in Notes to Financial Statements.

AMBAC – American Municipal Bond Assurance Corporation

AMT –  Alternative Minimum Tax. As of June 30, 2006, the aggregate market value of securities subject to the AMT was $8,231 which represents 5.0% of total net assets.

FGIC – Financial Guaranty Insurance Corporation

FNMA – Federal National Mortgage Association

FSA – Financial Security Assurance

GNMA – Government National Mortgage Association

MBIA – Municipal Bond Insurance Association

MDDP – Missouri Direct Deposit Program

MLO – Municipal Lease Obligation

RAAI – Radian Asset Assurance Inc.

XLCA – XL Capital Assurance Inc.

Nebraska Tax Free Fund
DESCRIPTION	PAR		VALUE
Municipal Bonds – 98.3%
Revenue Bonds – 75.3%
Continuing Care Retirement Communities – 2.5%
North Carolina Community Health Care Facilities, Presbyterian Homes, Callable 10/01/2016 @ 100
5.400%, 10/01/2027 (a)	$	410	$	405
South Dakota Health & Educational Facilities Authority, Westhills Village Retirement Community, Callable 09/01/2014 @ 100
5.000%, 09/01/2025 (a)		600		597
				1,002
Education – 17.9%
Nebraska Educational Finance Authority, Concordia University Project, Callable 12/15/2008 @ 100
5.350%, 12/15/2018		650		661
Nebraska Educational Finance Authority, Creighton University Project, Series A (AMBAC)
5.000%, 09/01/2009		500		513
Nebraska Educational Finance Authority, Midland Lutheran College Project, Callable 10/01/2010 @ 100
5.200%, 10/01/2020		350		353
Nebraska Educational Finance Authority, Wesleyan University Project, Callable 04/01/2012 @ 100 (RAAI)
5.000%, 04/01/2017		605		617
Nebraska Utility Corporation,     University of Nebraska, Lincoln Project, Callable 01/01/2012 @ 100
5.250%, 01/01/2015		1,045		1,102
University of Nebraska Facility Corporation, Deferred Maintenance Project, Callable 07/15/2008 @ 100
5.250%, 07/15/2011		1,000		1,023
University of Nebraska Facility Corporation, Medical Center Research Project, Callable 02/15/2012 @ 100
5.000%, 02/15/2015		500		519
University of Nebraska, Kearney Student Fees, Callable 01/01/2016 @ 100
5.000%, 07/01/2030		500		506
University of Nebraska, Lincoln Memorial Stadium Project, Series A, Callable 05/01/2014 @ 100
5.000%, 11/01/2015		500		519
University of Nebraska, Lincoln Student Fees, Callable 01/01/2013 @ 100
5.000%, 07/01/2022		750		766
University of Nebraska, Omaha Student Housing Project, Callable 11/24/2013 @ 100
5.000%, 05/15/2023		500		514
				7,093
Healthcare – 21.0%
Douglas County Hospital Authority #1, Immanuel Medical Center, Callable 09/01/2007 @ 102 (AMBAC)
4.900%, 09/01/2009		750		770
Douglas County Hospital Authority #2, Girls & Boys Town Project, Callable 09/01/2015 @ 100
4.500%, 09/01/2030		1,000		938

First American Funds Annual Report 2006      83

Schedule of  Investments continued

Nebraska Tax Free Fund (continued)
DESCRIPTION		PAR		VALUE
Douglas County Hospital Authority #2, Nebraska Medical Center
	5.000%, 11/15/2016	$	700	$	718
Halifax Medical Center, Hospital Revenue, Series A, Callable 06/01/2016 @ 100
	5.000%, 06/01/2038		600		580
Indiana Health & Educational Facility Financing Authority, Schneck Memorial Hospital Project, Series A, Callable 02/15/2016 @ 100
	5.250%, 02/15/2030		600		613
Lancaster County Hospital Authority #1, BryanLGH Medical Center Project, Series A, Callable 06/01/2011 @ 100 (AMBAC)
	5.000%, 06/01/2019		500		510
	5.125%, 06/01/2021		1,200		1,227
Madison County Hospital Authority #1, Faith Regional Health Services Project, Callable 01/01/2012 @ 100 (RAAI)
	5.500%, 07/01/2021		1,000		1,042
Nebraska Investment Finance Authority, Great Plains Regional Medical Center, Callable 05/15/2012 @ 100 (RAAI)
	5.200%, 11/15/2016		250		259
	5.300%, 11/15/2017		805		834
New Hampshire Health & Educational Facilities Authority, The Memorial Hospital, Callable 06/01/2016 @ 100
	5.250%, 06/01/2036		150		147
Platte County Hospital Authority #1, Columbus Community Hospital Project, Callable 05/01/2010 @ 101 (RAAI)
	5.850%, 05/01/2014		650		687
					8,325
Housing – 6.4%
Nebraska Investment Finance Authority, Multifamily Housing, Callable 07/01/2012 @ 100 (AMT) (GNMA)
	4.625%, 07/20/2012		365		365
Nebraska Investment Finance Authority, Single Family Housing, Series A, Callable 03/01/2011 @ 100 (AMT)
	5.150%, 03/01/2016		340		345
Nebraska Investment Finance Authority, Single Family Housing, Series C, Callable 03/01/2014 @ 100 (AMT)
	4.400%, 09/01/2020		680		656
Nebraska Investment Finance Authority, Single Family Housing, Series D, Callable 03/01/2015 @ 100 (AMT)
	4.950%, 09/01/2026		500		498
Omaha Housing Authority, Multifamily Housing, Timbercreek Apartments, Callable 10/01/2011 @ 100 (GNMA)
	5.150%, 11/20/2022		670		685
					2,549
Miscellaneous – 1.8%
Aleutians East Burough Project, Aleutian Pribilof Islands, Callable 06/01/2016 @ 100 (ACA)
	5.500%, 06/01/2036		400		409
Washington County Wastewater Facilities, Cargill Income Project, Callable 11/01/2012 @ 101 (AMT)
	5.900%, 11/01/2027		300		320
					729
Recreational Facility Authority – 5.9%
Douglas County Zoo Facility, Omaha Henry Doory Zoo Project, Callable 04/13/2015 @ 100
	4.750%, 09/01/2024		1,365		1,327
Omaha Convention Hotel Corporation, Series A, Callable 04/01/2012 @ 100 (AMBAC)
	5.125%, 04/01/2026		1,000		1,027
					2,354
Revolving Funds – 2.7%
Nebraska Investment Finance Authority, Drinking Water System Revolving Fund, Callable 01/01/2009 @ 100
	4.500%, 01/01/2010		115		116
	5.150%, 01/01/2016		580		589
Nebraska Investment Finance Authority, Drinking Water System Revolving Fund, Series A, Callable 07/01/2011 @ 100
	4.300%, 01/01/2021		400		383
					1,088
Tax Revenue – 2.8%
Ohio County, Special District Excise Tax Revenue, Fort Henry Economic Development, Series B, Callable 03/01/2016 @ 100
	5.625%, 03/01/2036		200		201
Omaha Special Tax Revenue, Series A, Callable 02/01/2012 @ 101
	5.125%, 02/01/2032		500		513
Vanderburgh County, Industrial Redevelopment Commission, Tax Increment, Callable 08/01/2016 @ 100
	5.000%, 02/01/2026		400		401
					1,115
Utilities – 14.3%
Alliance Electrical Systems, Callable 06/15/2008 @ 100 (AMBAC)
	5.000%, 12/15/2014		260		264
	5.100%, 12/15/2015		460		469
Burt County Public Power District Electric Systems, Callable 07/01/2011 @ 100
	4.850%, 07/01/2026		335		330
Grand Island Electrical Systems, Callable 06/27/2011 @ 100 (MBIA)
	5.125%, 08/15/2016		750		784
Hastings Electrical Systems, Callable 05/01/2011 @ 100 (FSA)
	5.000%, 01/01/2015		1,000		1,038
	5.000%, 01/01/2016		750		779
Lincoln Electrical Systems, Callable 09/01/2011 @ 100
	5.000%, 09/01/2015		500		520
Lincoln Electrical Systems, Callable 09/01/2013 @ 100
	5.000%, 09/01/2026		250		256
Omaha Public Power District, Nebraska City, Series A, Callable 12/01/2015 @ 100 (AMBAC)
	4.400%, 02/01/2023		260		253
	4.550%, 02/01/2026		750		734

The accompanying notes are an integral part of the financial statements.

84      First American Funds Annual Report 2006

Nebraska Tax Free Fund (continued)
DESCRIPTION		PAR		VALUE
Omaha Public Power Electrical Systems, Escrowed to Maturity
	6.200%, 02/01/2017 (b)	$	210	$	239
					5,666
Total Revenue Bonds					29,921
General Obligations – 19.7%
Douglas County School District #10, Elkhorn Public Schools, Callable 01/10/2011 @ 100
	4.500%, 07/15/2026		500		491
Douglas County School District #17, Millard Public Schools, Series A, Callable 05/15/2010 @ 100 (FSA)
	4.500%, 06/15/2025		750		724
Douglas County School District #54, Ralston Public Schools, Callable 08/15/2011 @ 100 (FSA)
	5.000%, 12/15/2016		845		879
Hall County, Callable 03/15/2011 @ 100 (MBIA)
	4.250%, 12/15/2026		500		463
Hayes County School District #79, Callable 11/15/2010 @ 100
	4.550%, 11/15/2022		170		166
	4.600%, 11/15/2023		180		176
La Vista, Callable 12/15/2010 @ 100
	4.800%, 12/15/2026		345		340
La Vista, Off-Street Parking, Callable 04/15/2011 @ 100
	4.700%, 04/15/2025		500		478
Lancaster County School District #1, Lincoln Public Schools, Callable 01/15/2011 @ 100
	5.250%, 07/15/2019		220		230
Lancaster County School District #1, Lincoln Public Schools, Callable 07/15/2012 @ 100
	5.000%, 01/15/2017		750		778
Lincoln-Lancaster County Public Building Community, Tax Supported Lease Rental, Callable 04/15/2015 @ 100
	4.500%, 10/15/2026		750		724
Omaha-Douglas Public Building, Callable 05/01/2011 @ 100
	4.900%, 05/01/2016		500		516
	5.100%, 05/01/2020		300		311
Puerto Rico Commonwealth, Government Development, Series B
	5.000%, 12/01/2014		400		412
Saunders County, Callable 01/10/2011 @ 100 (FSA)
	5.000%, 11/01/2030		650		658
Scotts Bluff County, Callable 07/12/2011 @ 100
	4.550%, 01/15/2026 (a)		500		495
Total General Obligations					7,841
Certificates of Participation – 3.3%
Western Nebraska Community College, Callable 10/15/2007 @ 100 (MLO)
	4.700%, 10/15/2010		295		297
	4.800%, 10/15/2011		195		196
	4.900%, 10/15/2012		250		252
	5.000%, 10/15/2013		300		303
	5.100%, 10/15/2014		250		252
					1,300
Total Municipal Bonds (Cost $38,635)					39,062
Short-Term Investments – 4.3%
Money Market Fund – 4.2%
First American Tax Free Obligations Fund, Class Z (c)			1,691,927		1,692
U.S. Treasury Obligation – 0.1%
U.S. Treasury Bill
	4.467%, 07/20/2006 (d)	$	40		40
Total Short-Term Investments (Cost $1,732)					1,732
Total Investments – 102.6% (Cost $40,367)					40,794
Other Assets and Liabilities, Net – (2.6)%					(1,050	)
Total Net Assets – 100.0%				$	39,744

(a)	Security purchased on a when-issued basis. On June 30, 2006, the total cost of investments purchased on a when-issued basis was $1,504 or 3.8% of total net assets. See note 2 in Notes to Financial Statements.
(b)	Escrowed to Maturity issues are typically backed by U.S. government obligations. If callable, these bonds may still be subject to call at the call date and price indicated.
(c)	Investment in affiliated security. This money market fund is advised by FAF Advisors, Inc., which also serves as advisor for this fund. See note 3 in Notes to Financial Statements.
(d)	Security has been deposited as initial margin on open futures contracts. Yield shown is effective yield as of June 30, 2006. See note 2 in Notes to Financial Statements.

ACA – American Capital Access

AMBAC – American Municipal Bond Assurance Corporation

AMT – Alternative Minimum Tax. As of June 30, 2006, the aggregate market value of securities subject to the AMT was $2,184, which represents 5.5% of total net assets.

FSA – Financial Security Assurance

GNMA – Government National Mortgage Association

MBIA – Municipal Bond Insurance Association

MLO –	Municipal Lease Obligation
RAAI –	Radian Asset Assurance Inc.

Schedule of Open Futures Contracts

	Number of		Notional
	Contracts		Contract			Settlement		Unrealized
Description	Sold		Value			Month		Appreciation
U.S. Treasury 10 Year Note Futures		(20)	$	(2,097	)		September 2006	$	20

First American Funds Annual Report 2006      85

Schedule of  Investments continued

Ohio Tax Free Fund
DESCRIPTION		PAR		VALUE
Municipal Bonds – 98.9%
Revenue Bonds – 53.4%
Continuing Care Retirement Communities – 4.1%
Franklin County Health Care Facilities, Refunding & Improvement, Ohio Presbyterian, Series A, Callable 07/01/2012 @ 100 (RAAI)
	5.125%, 07/01/2022	$	500	$	510
Franklin County Health Care Facilities, Refunding & Improvement, Ohio Presbyterian, Series A, Callable 07/01/2015 @ 100
	5.000%, 07/01/2026		800		791
Toledo-Lucas County Port Authority Facilities, St. Mary Woods Project, Series A, Callable 05/15/2010 @ 100
	6.000%, 05/15/2024		400		405
					1,706
Economic Development – 0.6%
Summit County Port Authority Board Funding Program, Garfield Heights Project, Series A, Callable 05/15/2014 @ 102
	5.250%, 05/15/2023		250		250
Education – 14.7%
Cincinnati Port Development Authority, Economic Development Authority, Sisters of Mercy, Callable 10/01/2016 @ 100
	5.000%, 10/01/2025		250		251
Ohio State Higher Educational Facilities, Baldwin-Wallace College Project
	5.000%, 12/01/2013		750		765
Ohio State Higher Educational Facilities, College of Wooster Project, Callable 09/01/2015 @ 100
	5.000%, 09/01/2020		400		410
Ohio State Higher Educational Facilities, Ohio Northern University Project, Callable 05/01/2015 @ 100
	5.000%, 05/01/2026		1,000		1,019
Ohio State Higher Educational Facilities, Wittenburg University Project, Callable 12/01/2015 @ 100
	5.000%, 12/01/2024		505		500
Ohio State Higher Educational Facilities, Xavier University Project, Callable 05/01/2013 @ 100 (FGIC)
	5.250%, 05/01/2016		1,000		1,050
Ohio State University, Series B, Callable 06/01/2013 @ 100
	5.250%, 06/01/2016		1,000		1,063
University of Cincinnati, Series A, Callable 06/01/2011 @ 101 (FGIC)
	5.500%, 06/01/2014		1,000		1,071
					6,129
Healthcare – 11.1%
Akron, Bath & Copley Joint Township Hospital Facilities, Summa Health Systems, Series A, Callable 11/15/2014 @ 100 (RAAI)
	5.250%, 11/15/2016		800		841
Erie County Hospital Facilities, Firelands Regional Medical Center, Series A, Callable 08/15/2012 @ 101
	5.500%, 08/15/2022		500		517
Erie County Hospital Facilities, Firelands Regional Medical Center Project, Series A, Callable 08/15/2016 @ 100
	5.000%, 08/15/2036		600		599
Fairfield County Hospital Facilities, Fairfield Medical Center, Callable 06/15/2012 @ 100 (RAAI)
	5.000%, 06/15/2022		500		506
Hamilton County Hospital Facilities, Children’s Medical Center, Series F (FGIC)
	5.200%, 05/15/2009		1,000		1,024
Lorain County Hospital, Catholic Healthcare, Callable 10/01/2012 @ 100
	5.500%, 10/01/2017		350		368
Miami County Hospital Facilities, Upper Valley Medical Center, Callable 05/15/2016 @ 100
	5.250%, 05/15/2018		125		129
Miami County Hospital Facilities, Upper Valley Medical Center, Callable 05/15/2016 @ 100
	5.250%, 05/15/2026		250		256
South Dakota Health & Educational Facilities Authority, Westhills Village Retirement Community, Callable 09/01/2014 @ 100
	5.000%, 09/01/2025 (a)		400		397
					4,637
Housing – 2.4%
Ohio Housing Finance Agency, Residential Mortgage Backed Securities, Series E, Callable 03/01/2016 @ 100 (AMT) (GNMA) (FNMA)
	4.850%, 09/01/2026		1,000		990
Lease Revenue – 6.9%
Cleveland-Cuyahoga County Port Authority, Rita Project, Callable 11/15/2014 @ 100 (MLO) (RAAI)
	5.000%, 11/15/2019		750		767
Ohio State Building Authority, State Facility, Administration Building Fund, Series A, Callable 04/01/2012 @ 100 (FSA) (MLO)
	5.500%, 04/01/2016		1,000		1,070
Riversouth Authority Revenue, Riversouth Area Redevelopment, Series A, Callable 06/01/2014 @ 100 (MLO)
	5.250%, 12/01/2017		1,000		1,056
					2,893
Miscellaneous – 2.8%
Aleutians East Burough Project, Aleutian Pribilof Islands, Callable 06/01/2016 @ 100 (ACA)
	5.500%, 06/01/2036		150		153
Toledo-Lucas County Port Authority Facilities, Cargill Income Project, Series B
	4.500%, 12/01/2015		1,000		996
					1,149

The accompanying notes are an integral part of the financial statements.

86      First American Funds Annual Report 2006

Ohio Tax Free Fund (continued)
DESCRIPTION		PAR		VALUE
Revolving Funds – 4.9%
Ohio State Water Development Authority, Escrowed to Maturity, Callable until 11/30/2011 @ 100 (AMBAC)
	5.800%, 12/01/2011 (b)	$	1,000	$	1,011
Ohio State Water Development Authority, Water Pollution Control, Pre-refunded 06/01/2012 @ 100
	5.050%, 12/01/2021 (c)		1,000		1,055
					2,066
Tax Revenue – 1.0%
Toledo-Lucas County Port Authority, Crocker Park Public Improvement Project, Callable 12/01/2013 @ 102
	5.250%, 12/01/2023		400		406
Utilities – 4.9%
Hamilton Electric Systems, Series A, Callable 10/15/2015 @ 101
	4.300%, 10/15/2016		1,000		991
Montgomery County Water, Greater Moraine Beaver, Callable 11/15/2012 @ 100 (AMBAC)
	5.375%, 11/15/2016		1,000		1,068
					2,059
Total Revenue Bonds					22,285
General Obligations – 42.3%
Cincinnati, Callable 12/01/2011 @ 100
	5.000%, 12/01/2016		1,000		1,042
	5.000%, 12/01/2017		1,000		1,036
Dayton City School District, School Facilities Construction & Improvement, Series D (FGIC)
	5.000%, 12/01/2011		1,000		1,050
Dublin, Refunding & Improvement, Series A, Callable 12/01/2009 @ 101
	5.250%, 12/01/2014		1,000		1,048
Greater Cleveland Regional Transportation Authority, Pre-refunded 12/01/2006 @ 101 (FGIC)
	5.650%, 12/01/2016 (c)		500		509
Ohio State Common Schools, Series A, Callable 03/15/2012 @ 101 (FGIC)
	5.125%, 09/15/2022		1,750		1,813
Ohio State Common Schools, Series B (VRDO)
	3.900%, 03/15/2025 (d)		200		200
Ohio State Higher Education, Series A, Callable 02/01/2011 @ 100
	5.000%, 02/01/2019		1,000		1,030
Ohio State Higher Education, Series A, Callable 02/01/2012 @ 100
	5.000%, 08/01/2022		1,000		1,026
Ohio State Higher Education, Series B, Callable 11/01/2011 @ 100
	5.000%, 11/01/2015		1,000		1,042
Ohio State Higher Educational Facilities, John Carroll University Project, Callable 04/01/2016 @ 100
	5.000%, 04/01/2019		1,000		1,033
Ohio State Infrastructure Improvement, Series A
	5.500%, 02/01/2020		1,000		1,112
Ohio State Parks & Recreational Facilities, Series II-A, Callable 02/01/2015 @ 100
	5.250%, 02/01/2020		1,000		1,057
Puerto Rico Commonwealth, Government Development, Series B
	5.000%, 12/01/2014		260		268
Revere Local School District (FSA)
	5.000%, 12/01/2012		1,150		1,211
Solon, Callable 12/01/2012 @ 100
	5.000%, 12/01/2021		1,000		1,028
Springfield City School District, Callable 12/01/2011 @ 102 (FGIC)
	5.200%, 12/01/2023		1,000		1,047
Toledo City School District, School Facilities Improvement, Callable 12/01/2013 @ 100 (FSA)
	5.000%, 12/01/2014		1,000		1,053
Total General Obligations					17,605
Certificate of Participation – 3.2%
Midview Local School District, School Buildings Facilities Project, Callable 05/01/2013 @ 100 (MLO)
	5.250%, 11/01/2017		1,270		1,324
Total Municipal Bonds (Cost $40,934)					41,214
Short-Term Investments – 1.4%
Money Market Fund – 1.3%
Federated Ohio Municipal Cash Trust			523,878		524
U.S. Treasury Obligation – 0.1%
U.S. Treasury Bill
	4.642%, 07/20/2006 (e)	$	40		40
Total Short-Term Investments (Cost $564)					564
Total Investments – 100.3% (Cost $41,498)					41,778
Other Assets and Liabilities, Net – (0.3)%					(122	)
Total Net Assets – 100.0%				$	41,656

(a)	Security purchased on a when-issued basis. On June 30, 2006, the total cost of investments purchased on a when-issued basis was $401 or 1.0% of total net assets. See note 2 in Notes to Financial Statements.
(b)	Escrowed to Maturity issues are typically backed by U.S. government obligations. If callable, these bonds may still be subject to call at the call date and price indicated.
(c)	Pre-refunded issues are typically backed by U.S. government obligations. These bonds mature at the call date and price indicated.
(d)	Variable Rate Security – The rate shown is in effect as of June 30, 2006.
(e)	Yield shown is effective yield as of June 30, 2006.

ACA – American Capital Access

AMBAC – American Municipal Bond Assurance Corporation

AMT – Alternative Minimum Tax. As of June 30, 2006 the aggregate market value of securities subject to the AMT was $990, which represents 2.4% of total net assets.

FGIC – Financial Guaranty Insurance Corporation

FNMA – Federal National Mortgage Association

FSA – Financial Security Assurance

GNMA – Government National Mortgage Association

LOC – Letter Of Credit

MLO – Municipal Lease Obligation

RAAI – Radian Asset Assurance Inc.

VRDO – Variable Rate Demand Obligation. Floating or variable rate obligation maturing in more than one year. The interest is based on specific, or an index of, market interest rates, and is subject to change periodically. This instrument may also have a demand feature which allows the recovery of principal at any time, or at specified intervals not exceeding one year, on up to 30 days’ notice. Maturity date shown represents final maturity.

First American Funds Annual Report 2006      87

Schedule of  Investments continued

Oregon Intermediate Tax Free Fund
DESCRIPTION	PAR		VALUE
Municipal Bonds – 98.9%
Revenue Bonds – 34.6%
Continuing Care Retirement Communities – 2.5%
Clackamas County Hospital Facilities Authority, Mary’s Woods, Series A, Pre-refunded 05/15/2009 @ 102
6.125%, 05/15/2013 (a)	$	1,000	$	1,075
Clackamas County Hospital Facilities Authority, Robison Jewish Home, Callable 10/01/2015 @ 100
5.125%, 10/01/2024		1,000		969
Oregon State Health, Housing, Educational & Cultural Facilities Authority, Oregon Baptist Retirement Homes, Callable until 11/14/2006 @ 103
8.000%, 11/15/2026		895		916
				2,960
Economic Development – 1.2%
Port Morrow, Callable until 05/31/2015 @ 100
6.250%, 06/01/2015		1,500		1,501
Education – 6.0%
Forest Grove Campus Improvement, Pacific University Project, Series A, Callable 05/01/2015 @ 100 (RAAI)
5.000%, 05/01/2022		3,130		3,186
Multnomah County Educational Facilities, University of Portland, Callable 04/01/2007 @ 102 (AMBAC)
5.700%, 04/01/2015		1,000		1,041
Oregon State Facilities Authority, Linfield College Project, Series A, Callable 10/01/2015 @ 100
5.000%, 10/01/2025		1,000		1,002
Oregon State Health, Housing, Educational & Cultural Facilities Authority, Reed College, Series A, Callable 07/01/2006 @ 102
5.375%, 07/01/2015		2,000		2,040
				7,269
Healthcare – 5.4%
Clackamas County Hospital Facilities Authority, Legacy Health Systems, Callable 08/15/2009 @ 101
5.250%, 02/15/2011		2,000		2,083
5.375%, 02/15/2012		1,000		1,033
Medford Hospital Facilities Authority, Asante Health Systems, Series A, Callable 08/15/2008 @ 101 (MBIA)
5.250%, 08/15/2011		325		335
5.375%, 08/15/2012		320		330
Multnomah County Hospital Facilities Authority, Providence Health Systems, Callable 10/01/2014 @ 100
5.250%, 10/01/2022		1,000		1,044
Salem Hospital Facilities Authority, Callable 08/15/2008 @ 101
5.250%, 08/15/2014		1,000		1,023
Umatilla County Hospital Facilities Authority, Catholic Health Initiatives, Series A
5.000%, 03/01/2012		690		718
				6,566
Housing – 0.5%
Oregon State Housing & Community Services, Series A, Callable 07/01/2006 @ 102
6.000%, 07/01/2016		5		5
Oregon State Housing & Community Services, Series A, Callable until 06/30/2017 @ 100
6.400%, 07/01/2018		230		231
Oregon State Housing & Community Services, Series E, Callable 01/01/2010 @ 100 (FHA)
5.750%, 07/01/2013		365		370
				606
Recreational Facility Authority – 0.9%
Portland Urban Renewal & Redevelopment, Convention Center, Series A, Callable 06/15/2010 @ 101 (AMBAC)
5.750%, 06/15/2015		1,000		1,071
Tax Revenue – 2.2%
Medford Urban Renewal Agency, Callable 01/01/2013 @ 101
4.500%, 06/01/2013		1,010		1,025
Oregon State Department of Administrative Services Lottery, Series A, Callable 04/01/2010 @ 100 (FSA)
5.000%, 04/01/2012		1,050		1,085
Tri-County Metropolitan Transportation District, Series 1 (MGT)
4.900%, 06/01/2009		500		511
				2,621
Transportation – 7.6%
Oregon State Department of Transportation, Highway User Tax, Pre-refunded 11/15/2010 @ 100
5.125%, 11/15/2014 (a)		2,260		2,367
Oregon State Department of Transportation, Highway User Tax, Series A, Callable 11/15/2014 @ 100
5.000%, 11/15/2020		1,085		1,126
5.000%, 11/15/2024		1,325		1,364
Oregon State Department of Transportation, Highway User Tax, Series A, Pre-refunded 11/15/2012 @ 100
5.500%, 11/15/2016 (a)		1,000		1,083
Portland International Airport, Series 12-A, Callable 01/01/2009 @ 101 (FGIC)
5.250%, 07/01/2011		1,165		1,209
5.250%, 07/01/2012		2,000		2,063
				9,212
Utilities – 8.3%
Eugene Electric Utilities, Callable 08/01/2006 @ 100 (FSA)
5.375%, 08/01/2011		1,195		1,196
Eugene Electric Utilities, Callable 08/01/2007 @ 100 (FSA)
5.000%, 08/01/2011		1,305		1,319
Eugene Electric Utilities, Callable 08/01/2008 @ 100 (FSA)
4.800%, 08/01/2013		690		699
Port of St. Helens Pollution Control, Portland General Electric
4.800%, 04/01/2010		2,450		2,444
4.800%, 06/01/2010		400		399
Washington County Clean Water Services (MBIA)
5.000%, 10/01/2014		1,000		1,058

The accompanying notes are an integral part of the financial statements.

88      First American Funds Annual Report 2006

Oregon Intermediate Tax Free Fund (continued)
DESCRIPTION		PAR		VALUE
Washington County Clean Water Services, Callable 10/01/2011 @ 100 (FGIC)
	5.125%, 10/01/2014	$	1,790	$	1,875
Washington County Unified Sewer Agency, Series 1 (FGIC)
	5.750%, 10/01/2008		1,000		1,040
					10,030
Total Revenue Bonds					41,836
General Obligations – 58.1%
Chemeketa Community College District, Escrowed to Maturity (FGIC)
	5.500%, 06/01/2013 (b)		2,170		2,359
Clackamas Community College District, Callable 05/01/2016 @ 100 (MBIA)
	5.000%, 05/01/2019		1,145		1,199
Clackamas County School District #7, Lake Oswego, Pre-refunded 06/01/2011 @ 100
	5.500%, 06/01/2012 (a)		1,240		1,322
Clackamas County School District #7J, Lake Oswego (FSA)
	5.250%, 06/01/2025		200		217
Clackamas County School District #86, Canby, Callable 06/15/2015 @ 100 (FSA)
	5.000%, 06/15/2024		1,500		1,548
Clackamas County School District #86, Canby, Callable 06/15/2015 @ 100 (FSA) (SBG)
	5.000%, 06/15/2018		1,000		1,047
	5.000%, 06/15/2021		1,305		1,355
Clackamas County School District #86, Canby, Pre-refunded 06/15/2010 @ 100 (SBG)
	5.500%, 06/15/2015 (a)		1,835		1,940
Columbia County School District #502, Zero Coupon Bond (FGIC)
	3.900%, 06/01/2012 (c)		1,530		1,196
Deschutes & Jefferson Counties School District #2, Pre-refunded 06/15/2011 @ 100
	5.500%, 06/15/2014 (a)		1,725		1,844
Deschutes & Jefferson Counties School District #2-J, Redmond, Series A (FGIC) (SBG)
	5.000%, 06/15/2013		1,250		1,317
Deschutes & Jefferson Counties School District #2-J, Redmond, Series B, Zero Coupon Bond (FGIC) (SBG)
	5.090%, 06/15/2021 (c)		1,000		489
Deschutes County, Callable 12/01/2012 @ 100 (FSA)
	5.000%, 12/01/2014		1,755		1,839
Hood River County School District, Callable 06/15/2011 @ 100 (SBG)
	5.250%, 06/15/2016		1,030		1,082
Jackson County School District #549, Medford (SBG)
	5.000%, 06/15/2012		2,000		2,100
Lake Oswego (MBIA)
	5.250%, 06/01/2013		1,035		1,106
Lane & Douglas Counties School District #97-J (FGIC) (SBG)
	5.375%, 06/15/2016		1,235		1,342
Lane County School District #4, Eugene (FGIC)
	5.000%, 07/01/2011		1,785		1,870
Lane County School District #40, Creswell, Callable 06/15/2010 @ 100 (SBG)
	5.000%, 06/15/2011		1,120		1,162
Lane County School District #52, Bethel, Pre-refunded 06/15/2010 @ 100 (SBG)
	5.350%, 06/15/2011 (a)		1,285		1,352
Linn County Community School District, Pre-refunded 06/15/2013 @ 100 (FGIC) (SBG)
	5.550%, 06/15/2021 (a)		1,000		1,092
McMinnville School District #40 (FSA)
	5.500%, 06/15/2012		620		668
	5.500%, 06/15/2013		1,000		1,081
Metro, Callable 09/01/2010 @ 102
	5.250%, 09/01/2014		1,000		1,061
Morrow County School District #1 (FSA) (SBG)
	5.000%, 06/15/2014		605		638
Multnomah County, Series A, Pre-refunded 04/01/2010 @ 100
	5.000%, 04/01/2011 (a)		1,000		1,038
	5.125%, 04/01/2013 (a)		1,000		1,042
Multnomah County School District #7, Reynolds, Callable 06/01/2010 @ 100 (MBIA)
	5.000%, 06/01/2021		1,545		1,585
Multnomah County School District #7, Reynolds, Pre-refunded 06/15/2011 @ 100 (SBG)
	5.625%, 06/15/2015 (a)		1,000		1,075
Multnomah-Clackamas County School District #10, Gresham-Barlow, Pre-refunded 06/15/2011 @ 100 (FSA) (SBG)
	5.500%, 06/15/2013 (a)		1,780		1,903
Multnomah-Clackamas County School District #10JT, Gresham-Barlow (FSA) (SBG)
	5.250%, 06/15/2017		1,000		1,080
Multnomah-Clackamas County School District #28-302, Centennial,     Pre-refunded 06/15/2011 @ 100 (FGIC) (SBG)
	5.500%, 06/15/2014 (a)		1,500		1,604
Oregon State Board of Higher Education, Series D, Callable 08/01/2014 @ 100
	5.000%, 08/01/2020		1,000		1,034
Oregon State Pollution Control, Series A, Callable 11/01/2007 @ 100
	4.875%, 11/01/2011		455		460
Portland Community College Services, Pre-refunded 06/01/2011 @ 100
	5.375%, 06/01/2015 (a)		1,375		1,462
Portland Emergency Facilities, Series A, Callable 06/01/2009 @ 100
	5.000%, 06/01/2012		1,060		1,088
Puerto Rico Commonwealth, Government Development, Series B
	5.000%, 12/01/2014		1,000		1,029
Puerto Rico Public Buildings Authority, Series J, Callable 07/01/2012 @ 100 (AMBAC) (COMGTY)
	5.000%, 07/01/2036		1,000		1,050
Rogue Community College District, Callable 06/15/2015 @ 100 (MBIA) (SBG)
	5.000%, 06/15/2022		1,000		1,036
Salem-Keizer School District #24-J, Callable 06/01/2008 @ 100 (FSA)
	5.100%, 06/01/2012		2,000		2,039
Salem-Keizer School District #24-J, Pre-refunded 06/01/2009 @ 100 (SBG)
	5.250%, 06/01/2012 (a)		1,000		1,038
Tri-County Metropolitan Transportation District, Light Rail Extension, Series A, Callable 07/01/2009 @ 101
	5.250%, 07/01/2012		1,000		1,043
Tualatin Hills Park & Recreation District (FGIC)
	5.750%, 03/01/2013		870		954
Umatilla County School District #016-R, Pendleton (FGIC)
	5.250%, 07/01/2014		1,540		1,654

First American Funds Annual Report 2006      89

Schedule of  Investments continued

Oregon Intermediate Tax Free Fund (continued)
DESCRIPTION		PAR		VALUE
Wasco County School District #12
	5.500%, 06/15/2014	$	1,080	$	1,177
Washington, Multnomah & Yamill Counties School District #1-J
	5.000%, 11/01/2014		1,000		1,058
Washington, Multnomah & Yamill Counties School District #1-J, Pre-refunded 06/01/2009 @ 100
	5.250%, 06/01/2012 (a)		1,185		1,229
Washington & Clackamas Counties School District #23-J, Tigard (FGIC)
	5.250%, 06/01/2011		1,335		1,412
	5.500%, 06/01/2013		1,000		1,084
Washington & Clackamas Counties School District #23-J, Tigard, Zero Coupon Bond
	5.820%, 06/15/2014 (c)		1,030		725
Washington County, Callable 06/01/2016 @ 102
	5.000%, 06/01/2022		2,000		2,084
Washington County School District #48-J, Beaverton, Series A, Callable 12/01/2014 @ 100 (FSA)
	5.000%, 06/01/2016		1,500		1,580
Wilsonville, Callable 06/01/2008 @ 100
	5.000%, 12/01/2010		255		257
Yamhill County School District #29-J, Newberg (FGIC) (SBG)
	5.250%, 06/15/2015		2,010		2,166
	5.250%, 06/15/2016		1,835		1,975
Total General Obligations					70,187
Certificates of Participation – 6.2%
Multnomah County, Callable 08/01/2008 @ 101 (MLO)
	4.750%, 08/01/2011		1,685		1,720
Oregon State Department of Administrative Services, Series A, Callable 05/01/2009 @ 101 (AMBAC) (MLO)
	5.000%, 05/01/2014		1,240		1,281
Oregon State Department of Administrative Services, Series A, Callable 05/01/2013 @ 100 (FSA) (MLO)
	5.000%, 05/01/2014		1,200		1,254
Oregon State Department of Administrative Services, Series A, Callable 11/01/2016 @ 100 (FGIC) (MLO)
	5.000%, 11/01/2018		1,060		1,114
Oregon State Department of Administrative Services, Series B, Callable 11/01/2007 @ 101 (AMBAC) (MLO)
	5.000%, 11/01/2011		315		322
Oregon State Department of Administrative Services, Series B, Callable 05/01/2014 @ 100 (FSA) (MLO)
	5.000%, 05/01/2018		1,680		1,739
Total Certificates of Participation					7,430
Total Municipal Bonds (Cost $117,869)					119,453
Short-Term Investment – 0.3%
First American Tax Free Obligations Fund, Class Z (d)   (Cost $356)			355,612		356
Total Investments – 99.2% (Cost $118,225)					119,809
Other Assets and Liabilities, Net – 0.8%					991
Total Net Assets – 100.0%				$	120,800

(a)	Pre-refunded issues are typically backed by U.S. government obligations. These bonds mature at the call date and price indicated.
(b)	Escrowed to Maturity issues are typically backed by U.S. government obligations. If callable, this bond may still be subject to call at the call date and price indicated.
(c)	Zero coupon bonds make no periodic interest payments, but are issued at deep discounts from par value. The rate shown is the effective yield at the time of purchase.
(d)	Investment in affiliated security. This money market fund is advised by FAF Advisors, Inc., which also serves as advisor for this fund. See note 3 in Notes to Financial Statements.

AMBAC – American Municipal Bond Assurance Corporation

COMGTY – Commonwealth Guaranty

FGIC – Financial Guaranty Insurance Corporation

FHA – Federal Housing Authority

FSA – Financial Security Assurance

MBIA – Municipal Bond Insurance Association

MGT – Morgan Guaranty Trust

MLO – Municipal Lease Obligation

RAAI – Radian Asset Assurance Inc.

SBG – School Board Guaranty

The accompanying notes are an integral part of the financial statements.

90      First American Funds Annual Report 2006

Short Tax Free Fund
DESCRIPTION		PAR		VALUE
Municipal Bonds – 99.9%
Alabama – 3.2%
Revenue Bonds – 2.1%
Foley Utilities Board, Escrowed to Maturity, Callable 09/01/2006 @ 100
	6.000%, 03/01/2007 (a)	$	1,500	$	1,522
Jefferson County Limited Obligation School Warrant, Series A
	5.000%, 01/01/2008		3,500		3,550
					5,072
General Obligations – 1.1%
Homewood Warrant, Sewer 7, Escrowed to Maturity, Callable until 02/28/2007 @ 100
	6.125%, 03/01/2007 (a)		1,340		1,361
Mobile Warrant, Escrowed to Maturity, Callable until 12/14/2007 @ 100
	6.200%, 02/15/2007 (a)		1,280		1,298
					2,659
					7,731
Arizona – 6.0%
Revenue Bonds – 6.0%
Arizona Health Facilities Authority, Community Behavioral Health Property (LOC: Wells Fargo Bank) (VRDO)
	3.970%, 08/01/2025 (b)		1,065		1,065
Glendale Industrial Development Authority
	4.250%, 05/15/2008		1,240		1,243
Maricopa County Hospital, Sun Health Corporation
	5.000%, 04/01/2011		3,815		3,916
Salt River Project, Agricultural Improvement & Power District
	5.000%, 12/01/2009		5,500		5,678
Tempe Industrial Development Authority, Series A
	4.500%, 12/01/2006		1,000		999
University Medical Center
	5.000%, 07/01/2007		300		302
	5.000%, 07/01/2008		700		710
	5.000%, 07/01/2009		500		510
					14,423
California – 0.7%
Revenue Bonds – 0.7%
California Statewide Community Development Authority, Daughters of Charity Health
	5.000%, 07/01/2009		500		511
Contra Costa Transportation Authority, Series A, Escrowed to Maturity, Callable until 02/28/2007 @ 100
	6.875%, 03/01/2007 (a)		1,070		1,092
					1,603
Colorado – 3.1%
Revenue Bonds – 3.1%
Colorado Health Facilities Authority, Covenant Retirement Communities
	4.500%, 12/01/2009		500		501
Colorado Health Facilities Authority, Evangelical Lutheran
	5.000%, 06/01/2010		435		446
Colorado Health Facilities Authority, Vail Valley Medical Center Project
	4.000%, 01/15/2007		500		500
Colorado Housing, Financial & Economic Development Authority, Gressman Enterprises Project (LOC: Wells Fargo Bank) (AMT) (VRDO)
	4.070%, 09/01/2025 (b)		900		900
Denver City & County Airport, Series E (AMT) (XLCA)
	5.000%, 11/15/2007		5,000		5,066
					7,413
District of Columbia – 1.2%
General Obligation – 1.2%
District of Columbia, Series A
	5.000%, 06/01/2007		2,810		2,840
Florida – 3.2%
Revenue Bonds – 3.2%
Florida Hurricane Catastrophe Fund Financial Corporation, Series A
	5.000%, 07/01/2008		5,000		5,106
Highlands County Health Facilities Authority, The Adventist Health System, Series B
	3.750%, 11/15/2006		2,605		2,605
					7,711
Georgia – 0.9%
Revenue Bond – 0.9%
Cartersville Development Authority, Sewer Facilities, Anheuser Busch (AMT)
	5.625%, 05/01/2009		2,075		2,151
Illinois – 9.2%
Revenue Bonds – 6.6%
Chicago O’Hare International Airport, 2nd Lien, Passenger Facilities, Series C (MBIA)
	5.750%, 01/01/2009		1,000		1,041
Chicago Sales Tax Revenue
	5.000%, 01/01/2011		3,165		3,294
Illinois Development Finance Authority, People’s Gas, Light & Coke, Series B, Mandatory Put 02/01/2008 @ 100 (AMBAC)
	3.050%, 02/01/2033		3,000		2,945
Illinois Educational Facilities Authority, The Art Institute of Chicago, Mandatory Put 03/01/2008 @ 100
	3.100%, 03/01/2034		2,000		1,961
Illinois Finance Authority, Clare at Watertower Project, Series A
	5.100%, 05/15/2011		1,000		988
Illinois Finance Authority, DePaul University, Series A
	5.000%, 10/01/2007		1,000		1,014
	5.000%, 10/01/2009		2,355		2,424
Illinois Finance Authority, Landing at Plymouth Project, Series A
	5.000%, 05/15/2011		500		496
Illinois Health Facilities Authority, Covenant Retirement Communities, Series A (RAAI)
	3.375%, 12/01/2006		695		693

First American Funds Annual Report 2006      91

Schedule of  Investments continued

Short Tax Free Fund (continued)
DESCRIPTION		PAR		VALUE
Illinois Health Facilities Authority, University of Chicago, Hospital & Health (MBIA)
	5.000%, 08/15/2007	$	1,000	$	1,013
Illinois State Toll Highway Authority, Pre-refunded 07/01/2006 @ 100, Callable until 12/31/2009 @ 100
	6.750%, 01/01/2010 (c)		10		10
					15,879
General Obligations – 2.6%
Champaign County Community Unit School District #4, Partially Escrowed to Maturity
	8.300%, 01/01/2007 (a)		1,120		1,144
Chicago, Various Neighborhoods Alive 21-B (MBIA) (SPA: Lloyds TSB Bank) (VRDO)
	3.980%, 01/01/2037 (b)		800		800
Cook County High School District #209, Proviso Township, Convertible CABs (FSA)
	0.000% through 12/01/2007,
	thereafter 4.000%, 12/01/2008		1,485		1,408
Lake County School District #112, Highland Park
	9.000%, 12/01/2006		1,655		1,689
	9.000%, 12/01/2007		1,000		1,069
					6,110
					21,989
Indiana – 4.0%
Revenue Bonds – 3.6%
Indiana Health Facility Financing Authority, Ascension Health Credit
	5.000%, 05/01/2009		7,000		7,174
New Albany & Floyd County School Building (FSA) (MLO)
	5.000%, 01/15/2010		1,310		1,354
					8,528
General Obligation – 0.4%
Gary Sanitation District, Special Tax District (RAAI)
	3.500%, 02/01/2007		1,105		1,102
					9,630
Iowa – 0.5%
Revenue Bonds – 0.5%
Iowa Finance Authority, Diocese of Sioux City (LOC: Wells Fargo Bank) (VRDO)
	3.970%, 03/01/2019 (b)		655		655
Scott County, Ridgecrest Village
	4.000%, 11/15/2006		500		498
					1,153
Kansas – 0.6%
Revenue Bonds – 0.6%
Augusta Electric Generating & Distribution System, Escrowed to Maturity, Callable 11/15/2006 @ 100
	6.700%, 11/15/2007 (a)		1,440		1,462
Kentucky – 0.2%
Revenue Bonds – 0.2%
Kentucky State Turnpike Authority, Escrowed to Maturity, Callable until 06/30/2007 @ 100
	6.125%, 07/01/2007 (a)		225		227
Owensboro Electric, Light & Power, Escrowed to Maturity, Callable 07/01/2006 @ 100
	6.850%, 01/01/2008 (a)		305		313
					540
Louisiana – 4.8%
Revenue Bonds – 1.3%
Louisiana State Health & Education Authority, Lambeth House Project, Pre-refunded 10/01/2006 @ 102
	9.000%, 10/01/2026 (c)		1,000		1,033
Tangipahoa Parish Hospital District #1, North Oaks Medical Center Project
	5.000%, 02/01/2011		2,035		2,094
					3,127
General Obligation – 3.5%
Louisiana State, Series A
	5.000%, 08/01/2009		8,000		8,239
					11,366
Massachusetts – 0.8%
General Obligation – 0.8%
Massachusetts State, Series A (FSA)
	5.250%, 01/01/2009		1,760		1,816
Michigan – 1.4%
Revenue Bonds – 1.4%
Detroit Water Supply Systems, Series D (MBIA) (SPA: Bank One) (VRDO)
	3.980%, 07/01/2033 (b)		1,000		1,000
Michigan State Hospital Finance Authority, Harper-Grace Hospital, Escrowed to Maturity, Callable until 04/30/2009 @ 100
	7.125%, 05/01/2009 (a)		245		257
Michigan State Hospital Finance Authority, Marquette General Hospital Obligated Group
	5.000%, 05/15/2011		1,000		1,021
Michigan State Hospital Finance Authority, Oakwood Obligated Group
	5.000%, 11/01/2006		1,000		1,004
					3,282
Minnesota – 5.0%
Revenue Bonds – 5.0%
Hennepin County Housing & Redevelopment Authority, Loring Park Apartments, Callable 08/15/2006 @ 102.50, Mandatory Put 02/15/2009 @ 100 (AMT) (FNMA)
	3.050%, 06/15/2034		2,000		1,936
Minneapolis Children’s Theatre Project (LOC: Wells Fargo Bank) (VRDO)
	3.920%, 10/01/2033 (b)		1,500		1,500
Minneapolis Healthcare System, Allina Health System, Series A
	5.000%, 11/15/2006		1,895		1,903

The accompanying notes are an integral part of the financial statements.

92      First American Funds Annual Report 2006

Short Tax Free Fund (continued)
DESCRIPTION		PAR		VALUE
Minneapolis Healthcare System, Fairview Health Services, Series B (AMBAC) (SPA: Royal Bank of Canada) (VRDO)
	3.960%, 11/15/2029 (b)	$	400	$	400
Minneapolis Nursing Home, Catholic Eldercare Project (LOC: Wells Fargo Bank) (VRDO)
	3.920%, 12/01/2022 (b)		1,220		1,220
Minnesota Municipal Power Agency
	4.500%, 10/01/2010		1,000		1,013
Minnesota State Higher Education Facilities Authority, Bethel College, Series 5 (LOC: Allied Irish Bank) (VRDO)
	4.040%, 06/01/2034 (b)		1,450		1,450
Minnesota State Higher Education Facilities Authority, Series 4S, Mandatory Put 04/01/2008 @ 100 (LOC: Allied Irish Bank)
	4.600%, 04/01/2028 (b)		815		821
Monticello, Big Lake Community Hospital District, Series C
	4.250%, 12/01/2007		865		864
Northwestern Mutual Life Insurance Company Tax-Exempt Mortgage Trust #1 (LOC: Credit Suisse First Boston)
	7.605%, 02/15/2009 (b)		19		19
St. Paul Housing & Redevelopment Authority, Cretin-Derham Project (LOC: Allied Irish Bank) (VRDO)
	3.970%, 02/01/2026 (b)		300		300
St. Paul Port Authority Lease Revenue, HealthEast Midway Campus (MLO)
	5.000%, 05/01/2010		625		627
					12,053
Mississippi – 1.3%
General Obligation – 1.3%
Mississippi State, Escrowed to Maturity
	6.200%, 02/01/2008 (a)		3,000		3,097
Missouri – 0.6%
General Obligation – 0.6%
Blue Springs Neighborhood Improvements, Series A, Callable 03/01/2007 @ 100
	4.125%, 03/01/2009		1,500		1,501
Nebraska – 1.7%
Revenue Bonds – 1.7%
Douglas County Hospital Authority #002, Nebraska Medical Center (GTY)
	5.000%, 11/15/2007		1,000		1,012
	5.000%, 11/15/2008		1,000		1,019
Nebraska Investment Finance Authority, Catholic Health Initiatives, Series A
	5.500%, 12/01/2007		2,000		2,042
					4,073
Nevada – 2.4%
Revenue Bonds – 2.4%
Clark County Pollution Control, Series A, Mandatory Put 03/02/2009 @ 100 (AMT)
	3.250%, 06/01/2031 (b)		3,000		2,887
Clark County Pollution Control, Series C, Mandatory Put 03/02/2009 @ 100 (AMT)
	3.250%, 06/01/2031 (b)		3,000		2,887
					5,774
New Hampshire – 0.8%
Revenue Bond – 0.8%
New Hampshire Health & Education Facilities Authority, Dartmouth College (SPA: J.P. Morgan Chase Bank) (VRDO)
	3.930%, 06/01/2023 (b)		1,875	$	1,875
New Jersey – 6.8%
Revenue Bonds – 6.1%
New Jersey Economic Development Authority, Cigarette Tax
	5.000%, 06/15/2007		2,000		2,017
New Jersey Economic Development Authority, School Facilities Construction, Series O
	5.000%, 03/01/2009		3,000		3,079
New Jersey Healthcare Facilities Financing Authority, Capital Health Systems, Series A
	5.000%, 07/01/2007		2,465		2,482
	5.000%, 07/01/2008		1,585		1,602
New Jersey State Transportation System, Series C
	5.000%, 06/15/2009		3,490		3,595
New Jersey State Turnpike Authority, Escrowed to Maturity
	6.750%, 01/01/2009 (a)		1,895		1,909
					14,684
General Obligation – 0.7%
Bayonne
	5.000%, 10/27/2006		1,500		1,501
					16,185
New Mexico – 0.8%
Revenue Bond – 0.8%
Gallup Pollution Control,     Tri-state Generation (AMBAC)
	5.000%, 08/15/2010		1,910		1,977
New York – 3.5%
Revenue Bonds – 3.5%
Monroe County Airport Authority, Greater Rochester International (AMT) (MBIA)
	5.000%, 01/01/2009		1,175		1,198
New York State Dormitory Authority, Rochester General Hospital
	5.000%, 12/01/2010		1,970		2,035
New York Urban Development, Correctional & Youth Facilities, Series A, Mandatory Put 01/01/2009 @ 100 (MLO)
	5.250%, 01/01/2021		2,000		2,059
Port Authority of New York & New Jersey (AMT)
	5.000%, 07/15/2007		3,125		3,159
					8,451
North Carolina – 1.1%
Revenue Bonds – 1.1%
North Carolina Medical Care Commission, Health Care Facilities, Series A
	2.500%, 11/01/2007		1,000		980
University North Carolina Chapel Hill, University Hospital, Series A
	5.000%, 02/01/2010		1,060		1,089
	5.000%, 02/01/2011		500		517
					2,586

First American Funds Annual Report 2006      93

Schedule of  Investments continued

Short Tax Free Fund (continued)
DESCRIPTION		PAR		VALUE
Ohio – 2.5%
Revenue Bonds – 2.5%
Allen County Economic Development, Young Men’s Christian Association, Mandatory Put 04/14/2008 @ 100
	3.000%, 04/15/2018 (b)	$	5,000	$	4,904
Toledo-Lucas County Port Authority, Crocker Park Public Improvement Project
	3.000%, 12/01/2006		1,090		1,086
					5,990
Oklahoma – 0.5%
Revenue Bond – 0.5%
Ponca City Utility Authority, Escrowed to Maturity, Callable until 06/30/2008 @ 100
	6.000%, 07/01/2008 (a)		1,110		1,156
Pennsylvania – 3.8%
Revenue Bonds – 3.1%
Chartiers Valley Industrial & Commercial Development Authority, Friendship Village South, Series A
	3.150%, 08/15/2006		400		399
	3.450%, 08/15/2007		300		296
Hampden Township Sewer Authority, Escrowed to Maturity, Callable until 03/31/2007 @ 100
	6.150%, 04/01/2007 (a)		800		810
Pennsylvania Higher Education Facilities Authority, University of Pennsylvania, Health Systems, Series B
	5.000%, 08/15/2008		5,000		5,100
Ringgold School District Authority, Escrowed to Maturity, Callable until 01/14/2008 @ 100
	6.700%, 01/15/2008 (a)		815		839
					7,444
General Obligation – 0.7%
Pittsburgh, Series A (MBIA)
	5.000%, 09/01/2009		1,515		1,564
					9,008
Puerto Rico – 1.8%
General Obligation – 1.8%
Puerto Rico Commonwealth, Series C, Mandatory Put 07/01/2008 @ 100
	5.000%, 07/01/2018		4,250		4,298
Rhode Island – 0.9%
Revenue Bond – 0.9%
Rhode Island Housing & Mortgage Financial, Homeowner Opportunity, Series 50-C (AMT)
	4.000%, 04/01/2008		2,070		2,067
South Carolina – 3.9%
Revenue Bonds – 3.9%
Charleston County Hospital Facilities, Carealliance Health Services, Series A
	5.000%, 08/15/2007		700		706
Piedmont Municipal Power Agency, Subseries B-1 (MBIA) (SPA: J.P. Morgan Chase) (VRDO)
	3.950%, 01/01/2034 (b)		5,600		5,600
Piedmont Municipal Power Agency, Subseries B-3 (AMBAC) (VRDO)
	3.950%, 01/01/2034 (b)		1,000		1,000
Richland-Lexington Columbia Apartments (AMT) (CIFG)
	4.000%, 01/01/2007		670		671
	4.000%, 01/01/2008		700		701
South Carolina Jobs Economic Development Authority, Palmetto Health Alliance, Series C
	4.500%, 08/01/2006		660		660
					9,338
South Dakota – 3.8%
Revenue Bonds – 3.8%
Sioux Falls Health Facilities, Dow Rummel Village Project, Series B, Mandatory Put 11/15/2007 @ 100, Callable 11/15/2007 @ 100
	4.750%, 11/15/2033		1,675		1,675
South Dakota State Health & Educational Facilities Authority, Avera Health, Callable 07/01/2008 @ 100 (AMBAC)
	4.000%, 07/01/2031		7,500		7,500
					9,175
Tennessee – 1.3%
Revenue Bonds – 1.3%
Clarksville Natural Gas Acquisition Corporation
	5.000%, 12/15/2008		1,500		1,534
Sullivan County Health Educational & Housing Facilities, Wellmont Health Systems Project
	4.500%, 09/01/2006		1,500		1,500
					3,034
Texas – 9.4%
Revenue Bonds – 6.0%
Brazos River Harbor Naval District, Brazoria County Environmental, Dow Chemical Project, Series A-3, Mandatory Put 05/15/2007 @ 100 (AMT)
	4.950%, 05/15/2033		3,000		3,017
Brownsville Utility Systems, Series A (MBIA) (SPA: Bank of America) (VRDO)
	3.950%, 09/01/2027 (b)		2,875		2,875
Dallas Fort Worth International Airport, Series A (AMT)
	5.000%, 11/01/2007		1,500		1,516
Houston Health Facilities Development, Buckingham Senior Living Community, Series A, Callable 02/15/2009 @ 100
	4.900%, 02/15/2010		1,020		1,020
Jefferson County Health Facilities Development Authority, Baptist Hospitals (AMBAC) (FHA)
	4.200%, 08/15/2007		1,450		1,454
North Central Texas Health Facility Development, Baylor Health Care Systems Project
	5.500%, 05/15/2007		1,000		1,012
Richardson Hospital Authority
	4.000%, 12/01/2006		1,165		1,164
	5.000%, 12/01/2007		1,230		1,241

The accompanying notes are an integral part of the financial statements.

94      First American Funds Annual Report 2006

Short Tax Free Fund (continued)
DESCRIPTION		PAR		VALUE
Southeast Hospital Financing Agency, Memorial Hospital System Project, Escrowed to Maturity, Callable until 11/30/2008 @ 100
	8.500%, 12/01/2008 (a)	$	520	$	549
Tyler Health Facilities Development, Mother Frances Hospital
	5.000%, 07/01/2007		575		580
					14,428
General Obligations – 3.4%
Donna Independent School District
	4.000%, 02/15/2011		1,505		1,506
Northside Independent School District, Series B, Pre-refunded 08/01/2006 @ 100, Mandatory Put 08/01/2006 @ 100 (PSFG) (SPA: Dexia Credit)
	2.450%, 08/01/2033 (b) (c)		6,600		6,591
					8,097
					22,525
Utah – 1.6%
Revenue Bonds – 1.6%
Jordanelle Special Services District, Tuhaye Project (LOC: Wells Fargo Bank)
	3.970%, 09/01/2025 (b)		1,900		1,900
Utah State Board, University of Utah Hospital, Series A (MBIA)
	5.000%, 08/01/2009		1,855		1,908
					3,808
Virginia – 1.8%
Revenue Bonds – 1.8%
Chesapeake Hospital Authority, Chesapeake General Hospital, Series A
	5.000%, 07/01/2007		2,300		2,324
Virginia State Housing Development Authority (AMT)
	3.600%, 01/01/2009		2,000		1,986
					4,310
Washington – 1.7%
Revenue Bonds – 1.7%
Portland & Seattle Intermediate Lien, Series A
	5.000%, 03/01/2010		2,000		2,070
Washington State Higher Educational Facilities Authority, University Puget Sound Project, Series A, Mandatory Put 04/01/2008 @ 100 (LOC: Bank of America)
	5.000%, 10/01/2030		2,000		2,034
					4,104
West Virginia – 1.2%
Revenue Bond – 1.2%
Putnam County Pollution Control, Appalachian Power Company Project, Series E, Mandatory Put 11/01/2006 @ 100
	2.800%, 05/01/2019 (b)		3,000		2,978
Wisconsin – 1.9%
Revenue Bonds – 1.9%
Wisconsin State Health & Educational Facilities Authority, Children’s Hospital of Wisconsin, Series A
	4.500%, 08/15/2008		1,500		1,515
Wisconsin State Health & Educational Facilities Authority, Froedtert & Community Health, Series A
	5.000%, 04/01/2010		1,000		1,030
Wisconsin State Health & Educational Facilities Authority, Gundersen Lutheran, Series A (FSA)
	5.000%, 02/15/2008		1,000		1,017
Wisconsin State Health & Educational Facilities Authority, Wheaton Franciscan Services, Series A
	5.000%, 08/15/2007		1,000		1,010
					4,572
Total Municipal Bonds (Cost $241,875)					239,045
Short-Term Investment – 1.0%
First American Tax Free Obligations Fund, Class Z (d)
	(Cost $2,378)		2,377,549		2,378
Total Investments – 100.9% (Cost $244,253)					241,423
Other Assets and Liabilities, Net – (0.9)%					(2,202	)
Total Net Assets – 100.0%				$	239,221

(a)	Escrowed to Maturity issues are typically backed by U.S. government obligations. If callable, these bonds may still be subject to call at the call date and price indicated.
(b)	Variable Rate Security – The rate shown is the rate in effect as of June 30, 2006.
(c)	Pre-refunded issues are typically backed by U.S. government obligations. These bonds mature at the call date and price indicated.
(d)	Investment in affiliated security. This money market fund is advised by FAF Advisors, Inc., which also serves as advisor for this fund. See note 3 in Notes to Financial Statements.

AMBAC – American Municipal Bond Assurance Corporation

AMT – Alternative Minimum Tax. As of June 30, 2006, the aggregate market value of securities subject to the AMT was $30,142, which represents 12.6% of total net assets.

CIFG – CDC IXIS Financial Guaranty

FHA – Federal Housing Authority

FNMA – Federal National Mortgage Association

FSA – Financial Security Assurance

GTY – Assured Guaranty

LOC – Letter of Credit

MBIA – Municipal Bond Insurance Association

MLO – Municipal Lease Obligation

PSFG – Permanent School Fund Guarantee

RAAI – Radian Asset Assurance Inc.

SPA – Standby Purchase Agreement

VRDO – Variable Rate Demand Obligation. Floating or variable rate obligation maturing in more than one year. The interest rate is based on specific, or an index of, market interest rates, and is subject to change periodically. This instrument may also have a demand feature which allows the recovery of principal at any time, or at specific intervals not exceeding one year, on up to 30 days notice. Maturity date shown represents final maturity.

XLCA – XL Capital Assurance Inc.

First American Funds Annual Report 2006      95

Schedule of  Investments continued

Tax Free Fund
DESCRIPTION		PAR		VALUE
Municipal Bonds – 98.4%
Alabama – 0.8%
Revenue Bonds – 0.8%
Bessemer Water Revenue, Callable 07/01/2006 @ 102 (AMBAC)
	5.750%, 07/01/2016	$	2,500	$	2,554
Camden Industrial Development Board, Weyerhauser Company, Series A, Callable 12/01/2013 @ 100
	6.125%, 12/01/2024		1,000		1,079
Camden Industrial Development Board, Weyerhauser Company, Series B, Callable 12/01/2013 @ 100 (AMT)
	6.375%, 12/01/2024		350		378
					4,011
Alaska – 1.7%
Revenue Bonds – 1.3%
Alaska Energy Authority, Bradley Lake, Third Series (FSA)
	6.000%, 07/01/2010		1,000		1,073
	6.000%, 07/01/2011		4,040		4,392
Alaska State Housing Finance Corporation, Series A, Callable 06/01/2007 @ 102 (MBIA)
	5.900%, 12/01/2019		695		708
					6,173
General Obligation – 0.4%
Anchorage, Series B, Callable 07/01/2012 @ 100 (MBIA)
	5.000%, 07/01/2022		2,000		2,051
					8,224
Arizona – 2.2%
Revenue Bonds – 2.2%
Arizona Health Facilities Authority, The Terraces Project, Series A, Callable 11/15/2013 @ 101
	7.500%, 11/15/2023		3,000		3,336
Arizona State Transportation Board, Pre-refunded 07/01/2009 @ 100
	6.000%, 07/01/2012 (a)		3,830		4,056
Maricopa County Industrial Development Authority, Health Facilities Revenue, Mayo Clinic, Callable 05/15/2016 @ 100
	5.000%, 11/15/2031		500		509
Maricopa County Industrial Development Authority, Senior Living Healthcare Revenue, Immanuel Care, Series A, Callable 02/20/2016 @ 100 (GNMA)
	4.850%, 08/20/2026		1,760		1,737
Tempe Industrial Development Authority, Friendship Village Project, Series A
	5.375%, 12/01/2013		1,300		1,287
					10,925
Arkansas – 0.3%
Revenue Bond – 0.3%
Washington County Arkansas Hospital, Regional Medical Center, Series B, Callable 02/01/2015 @ 100
	5.000%, 02/01/2030		1,500		1,482
California – 9.6%
Revenue Bonds – 6.0%
California Pollution Control Financing Authority, Solid Waste Disposal Revenue, Waste Management Incorporated Project, Series B, Callable 07/01/2015 @ 101 (AMT) (AGTY)
	5.000%, 07/01/2027		2,500		2,473
California Pollution Control Financing Authority, Solid Waste Disposal Revenue, Waste Management Incorporated Project, Series C, Callable 11/01/2015 @ 101 (AMT)
	5.125%, 11/01/2023		5,000		5,063
California State Department of Water, Series A, Pre-refunded 05/01/2012 @ 101
	5.375%, 05/01/2022 (a)		4,500		4,881
California State Public Works Board Mental Health-Coalinga, Series A, Callable 06/01/2014 @ 100 (MLO)
	5.500%, 06/01/2019		3,000		3,220
California Statewide Communities Development Authority, Los Angeles Jewish Home, Callable 11/01/2013 @ 100 (CMI)
	5.250%, 11/15/2023		4,000		4,125
Chula Vista Industrial Development, San Diego Gas & Electric, Series A, Callable 03/01/2014 @ 102 (AMT)
	4.900%, 03/01/2023		2,500		2,485
Golden State Tobacco Securitization, Series B, Pre-refunded 06/01/2013 @ 100
	5.500%, 06/01/2033 (a)		6,940		7,521
					29,768
General Obligations – 3.6%
California State, Callable 02/01/2013 @ 100
	5.000%, 02/01/2021		5,500		5,636
California State, Callable 04/01/2009 @ 101
	4.750%, 04/01/2022		500		501
California State, Callable 03/01/2016 @ 100
	4.500%, 03/01/2030		10,000		9,363
California State, Callable 02/01/2014 @ 100
	5.000%, 02/01/2033		2,000		2,014
					17,514
					47,282
Colorado – 3.8%
Revenue Bonds – 3.6%
Colorado Housing & Finance Authority, Waste Disposal Management Income Project (AMT)
	5.700%, 07/01/2018		1,590		1,667
Colorado State Educational & Cultural Facilities Authority, Classical Academy Charter School Project, Pre-refunded 12/01/2011 @ 100
	7.250%, 12/01/2021 (a)		1,500		1,729
Colorado State Health Facilities Authority, Covenant Retirement Communities, Series B, Callable 12/01/2012 @ 101
	6.125%, 12/01/2033		1,150		1,223
Colorado State Health Facilities Authority, Evangelical Lutheran Health Facilities, Callable 10/01/2012 @ 100
	5.900%, 10/01/2027		2,500		2,626
Colorado State Health Facilities Authority, Evangelical Lutheran Health Facilities, Callable 06/01/2016 @ 100
	5.000%, 06/01/2029		2,000		1,965

The accompanying notes are an integral part of the financial statements.

96      First American Funds Annual Report 2006

Tax Free Fund (continued)
DESCRIPTION		PAR		VALUE
Colorado State Health Facilities Authority, Parkview Medical Center, Callable 09/01/2011 @ 100
	6.500%, 09/01/2020	$	1,000	$	1,081
Colorado State Health Facilities Authority, Vail Valley Medical Center, Callable 01/15/2012 @ 100
	5.800%, 01/15/2027		1,500		1,554
La Junta Hospital, Arkansas Valley Medical Center Project, Callable 04/01/2009 @ 101
	6.000%, 04/01/2019		1,000		1,033
Montrose Memorial Hospital, Callable 12/01/2013 @ 102
	6.000%, 12/01/2028		1,000		1,045
	6.000%, 12/01/2033		1,000		1,043
Northwest Parkway Public Highway Authority, Zero Coupon Bond (AMBAC)
	6.290%, 06/15/2029 (b)		10,000		2,643
					17,609
General Obligation – 0.2%
Antelope Water Systems General Improvement District, Callable 12/01/2015 @ 100
	5.125%, 12/01/2035		1,000		976
					18,585
Florida – 2.6%
Revenue Bonds – 1.5%
Capital Trust Agency, Fort Lauderdale Project, Callable 01/01/2014 @ 101 (AMT)
	5.750%, 01/01/2032		1,000		1,031
Florida State Department of Transportation, Alligator Alley, Callable 07/01/2007 @ 101 (FGIC)
	5.125%, 07/01/2013		1,280		1,306
Palm Beach County, Park & Recreational Facilities, Pre-refunded 11/01/2006 @ 102 (FSA)
	5.250%, 11/01/2016 (a)		5,000		5,123
					7,460
General Obligation – 1.1%
Florida State Department of Transportation, Right-of-Way, Callable 07/01/2006 @ 101
	5.250%, 07/01/2017		5,525		5,586
					13,046
Georgia – 2.5%
Revenue Bonds – 2.5%
Fulton County Development Authority, Maxon Atlantic Station, Series A, Mandatory Put 03/01/2015 @ 100 (AMT)
	5.125%, 03/01/2026		2,300		2,276
Fulton County Residential Care Facilities, Canterbury Court Project, Series A, Callable 02/15/2014 @ 101
	6.125%, 02/15/2026		1,500		1,553
	6.125%, 02/15/2034		2,500		2,542
Gainesville & Hall County Hospital Authority, Northeast Georgia Health Systems Project, Callable 05/15/2011 @ 100
	5.500%, 05/15/2031		5,000		5,107
Georgia Municipal Electric Authority Power, Series BB (MBIA)
	5.250%, 01/01/2025		1,000		1,080
					12,558
Hawaii – 1.7%
General Obligation – 1.7%
Hawaii State, Series CN, Pre-refunded 03/01/2007 @ 102 (FGIC)
	5.500%, 03/01/2014 (a)		8,000		8,247
Idaho – 0.4%
Certificates of Participation – 0.4%
Madison County Hospital, Callable 09/01/2016 @ 100
	5.250%, 09/01/2026		1,000		1,007
	5.250%, 09/01/2030		1,000		1,004
					2,011
Illinois – 10.3%
Revenue Bonds – 6.5%
Bolingbrook, Residential Mortgages, Escrowed to Maturity (FGIC)
	7.500%, 08/01/2010 (c)		990		1,061
Illinois Development Finance Authority, Adventist Health System, Pre-refunded 11/15/2009 @ 101
	5.500%, 11/15/2029 (a)		5,000		5,287
Illinois Financial Authority, Clare At Water Tower Project, Series A, Callable 05/15/2016 @ 100
	6.000%, 05/15/2025		2,350		2,383
Illinois Financial Authority, Friendship Village Schaumburg, Series A, Callable 02/15/2015 @ 100
	5.375%, 02/15/2025		1,700		1,691
Illinois Financial Authority, Landing at Plymouth Place Project, Series A,     Callable 05/15/2016 @ 100
	6.000%, 05/15/2037		2,300		2,349
Illinois Financial Authority, Luther Oaks Project, Series A, Callable 08/15/2016 @ 100
	6.000%, 08/15/2039		2,000		2,028
Illinois Health Facilities Authority, Covenant Retirement Communities, Callable 12/01/2011 @ 101
	5.875%, 12/01/2031		4,500		4,617
Illinois Health Facilities Authority, Covenant Retirement Communities, Series A, Callable 12/01/2012 @ 100 (RAAI)
	5.500%, 12/01/2022		4,000		4,182
Illinois Health Facilities Authority, Lutheran Senior Ministries, Series A, Callable 08/15/2011 @ 101
	7.375%, 08/15/2031		3,000		3,236
Illinois State Development Finance Authority, Pollution Control Illinois Power Company Project, Series A, Pre-refunded 07/01/2006 @ 102
	7.375%, 07/01/2021 (a)		500		510
Illinois State Development Finance Authority, Waste Management Incorporated Project (AMT)
	5.850%, 02/01/2007		1,000		1,009
Illinois State Educational Facilities Authority, Augustana College, Pre-refunded 10/01/2007 @ 100 (CLE)
	5.875%, 10/01/2017 (a)		500		513
Illinois State Toll Highway Authority, Series A
	6.300%, 01/01/2012		1,000		1,105
Northern Illinois University, Auxiliary Facilities Systems, Partially Pre-refunded 04/01/2007 @ 100 (FGIC)
	5.700%, 04/01/2016 (a)		1,000		1,012

First American Funds Annual Report 2006      97

Schedule of  Investments continued

Tax Free Fund (continued)
DESCRIPTION		PAR		VALUE
Rockford Multifamily Housing, Rivers Edge Apartments, Series A, Callable 01/20/2008 @ 102 (AMT) (GNMA)
	5.875%, 01/20/2038	$	1,215	$	1,235
					32,218
General Obligations – 3.8%
Cook County, Series A (MBIA)
	6.250%, 11/15/2012		9,090		10,153
Cook County Community School District #97, Oak Park, Series B (FGIC)
	9.000%, 12/01/2011		2,235		2,755
Illinois State, Callable 02/01/2007 @ 101 (FGIC)
	5.250%, 02/01/2013		1,400		1,424
Illinois State, Pre-refunded 09/01/2006 @ 102 (MBIA)
	5.750%, 05/01/2021 (a)		1,410		1,443
McHenry County Community Unit, School District #20 Woodstock, Series A, Pre-refunded 01/01/2008 @ 100 (FSA)
	5.850%, 01/01/2016 (a)		560		577
St. Clair County, Callable 10/01/2009 @ 102 (FGIC)
	6.000%, 10/01/2011		2,020		2,177
					18,529
					50,747
Indiana – 2.9%
Revenue Bonds – 2.9%
Indiana Health & Educational Facilities Hospital Financing Authority, Clarian Health Obligation Group, Series A, Callable 02/15/2016 @ 100
	5.000%, 02/15/2039		700		691
Indiana State Municipal Power Agency, Power Supply, Series B (MBIA)
	6.000%, 01/01/2011		1,000		1,081
	6.000%, 01/01/2012		1,000		1,093
Indiana Transportation Finance Authority, Series A (AMBAC)
	5.750%, 06/01/2012		3,185		3,467
Indianapolis Airport Authority, Special Facilities, Federal Express Corporation Project (AMT) (AGTY)
	5.100%, 01/15/2017		3,000		3,061
Portage Economic Development, Ameriplex Project, Callable 07/15/2016 @ 100
	5.000%, 07/15/2023		1,000		977
	5.000%, 01/15/2027		775		746
St. Joseph County Industries Hospital Authority, Madison Center Obligation Group Project, Callable 02/15/2015 @ 100
	5.250%, 02/15/2028		3,500		3,420
					14,536
Iowa – 1.2%
Revenue Bonds – 1.2%
Iowa Higher Education Loan Authority, Central College Project, Callable 10/01/2011 @ 100 (RAAI)
	5.500%, 10/01/2031		1,500		1,550
Iowa Higher Education Loan Authority, Private College Facility – Simpson College, Callable 12/01/2010 @ 102
	5.100%, 12/01/2035		2,000		2,014
Iowa Higher Education Loan Authority, Wartburg College, Series A, Callable 10/01/2013 @ 100
	5.100%, 10/01/2025		1,635		1,601
Muscatine Electric, Escrowed to Maturity, Callable until 12/31/2012 @ 100
	6.700%, 01/01/2013 (c)		830		896
					6,061
Kansas – 0.4%
Revenue Bond – 0.4%
Olathe Senior Living Facility, Catholic Care Campus, Series A, Callable 11/15/2016 @ 100
	6.000%, 11/15/2038		2,000		2,061
Louisiana – 1.4%
Revenue Bonds – 1.4%
Baton Rouge Sales & Use Tax, Public Improvements, Series A, Callable 08/01/2008 @ 101.50 (FGIC)
	5.250%, 08/01/2015		2,030		2,102
Jefferson Parish, Drain Sales Tax (AMBAC)
	5.000%, 11/01/2011		1,000		1,038
Jefferson Parish, Home Mortgage Authority, Escrowed to Maturity, Callable until 07/31/2011 @ 100 (FGIC) (FHA)
	7.100%, 08/01/2011 (c)		1,000		1,118
Lafayette, Public Improvement Sales Tax, Series B (FGIC)
	7.000%, 03/01/2008		1,000		1,048
Louisiana Public Facilities Authority, Tulane University of Louisiana, Series A-1,     Callable 11/15/2007 @ 102 (MBIA)
	5.100%, 11/15/2014		1,500		1,532
					6,838
Massachusetts – 0.7%
Revenue Bonds – 0.7%
Boston Industrial Development Financing Authority, Crosstown Center Project, Callable 09/01/2012 @ 102 (AMT)
	6.500%, 09/01/2035		2,500		2,545
Massachusetts State Health & Educational Facilities Authority, U Mass Memorial Issue, Series D, Callable 07/01/2015 @ 100
	5.000%, 07/01/2033		1,000		978
					3,523
Michigan – 1.1%
Revenue Bond – 0.4%
Kent Hospital Financial Authority, Metropolitan Hospital Project, Series A, Callable 07/01/2015 @ 100
	5.250%, 07/01/2030		2,000		2,000

The accompanying notes are an integral part of the financial statements.

98      First American Funds Annual Report 2006

Tax Free Fund (continued)
DESCRIPTION		PAR		VALUE
General Obligations – 0.7%
Thornapple Kellogg School Building & Site, Callable 11/01/2012 @ 100 (MQSBLF)
	5.500%, 05/01/2014	$	1,485	$	1,594
	5.500%, 05/01/2016		1,810		1,944
					3,538
					5,538
Minnesota – 5.3%
Revenue Bonds – 5.3%
Cuyuna Range Hospital District, Callable 06/01/2013 @ 101
	5.200%, 06/01/2025		1,000		995
Cuyuna Range Hospital District, Series A, Callable 06/01/2007 @ 102
	6.000%, 06/01/2029		650		664
Duluth Economic Development Authority, Benedictine Health System, Callable 02/15/2014 @ 100
	5.250%, 02/15/2033		3,500		3,546
Fergus Falls Health Care Facilities Authority, Series A, Callable until 11/01/2018 @ 100
	7.000%, 11/01/2019		150		150
Maple Grove Health Care Facilities, North Memorial Health Care, Callable 09/01/2015 @ 100
	4.250%, 09/01/2025		1,000		913
Minneapolis Healthcare System, Fairview Health Services, Series A, Pre-refunded 05/15/2012 @ 101
	5.625%, 05/15/2032 (a)		7,000		7,621
Minnesota Agriculture & Economic Development Board, Health Care System, Fairview, Series A, Callable 11/15/2010 @ 101
	6.375%, 11/15/2029		95		101
Minnesota Agriculture & Economic Development Board, Health Care System, Fairview, Series A, Pre-refunded 11/15/2010 @ 101
	6.375%, 11/15/2029 (a)		2,905		3,197
Monticello, Big Lake Community Hospital, Series C, Callable 12/01/2012 @ 100
	6.200%, 12/01/2022		2,995		3,077
Shakopee Health Care Facilities, St. Francis Regional Medical Center, Callable 09/01/2014 @ 100
	5.250%, 09/01/2034		1,000		1,015
Southern Minnesota Municipal Power Agency, Capital Appreciation, Series A, Zero Coupon Bond (MBIA)
	4.550%, 01/01/2024 (b)		2,245		962
St. Paul Housing & Redevelopment Hospital Authority, HealthEast Project
	5.250%, 11/15/2014		990		1,005
Stillwater Health Care, Health System Obligation Group, Callable 06/01/2015 @ 100
	5.000%, 06/01/2035		3,000		3,003
					26,249
Missouri – 0.2%
Revenue Bond – 0.2%
Sugar Creek, Lafarge North America, Series A, Callable 06/01/2013 @ 101 (AMT)
	5.650%, 06/01/2037		1,000		1,027
Montana – 0.7%
Revenue Bond – 0.7%
Forsyth Pollution Control, Northwestern Corporation, Callable 08/01/2016 @ 100
	4.650%, 08/01/2023		3,500		3,459
Nebraska – 1.8%
Revenue Bonds – 1.8%
Douglas County Zoo Facility, Omaha Henry Doory Zoo Project, Callable 04/13/2015 @ 100
	4.750%, 09/01/2024		2,750		2,673
Nebraska Educational Finance Authority, Concordia University Project, Callable 12/15/2008 @ 100
	5.250%, 12/15/2015		500		509
	5.350%, 12/15/2018		540		549
Nebraska Educational Finance Authority, Midland Lutheran College, Series A, Callable 09/15/2013 @ 100
	5.600%, 09/15/2029		1,800		1,764
Omaha Metropolitan Utilities, Water Revenue, Series A, Callable 12/01/2016 @ 100
	4.250%, 12/01/2021		1,500		1,434
Washington County Wastewater Facilities, Cargill Income Project, Callable 11/01/2012 @ 101 (AMT)
	5.900%, 11/01/2027		1,700		1,811
					8,740
Nevada – 2.5%
Revenue Bonds – 2.5%
Carson City, Carson-Tahoe Hospital Project,  Callable 09/01/2012 @ 101
	5.750%, 09/01/2031		5,000		5,105
Clark County Industrial Development, Southwest Gas Corporation Project, Series A, Callable 07/01/2014 @ 100 (AMBAC) (AMT)
	5.250%, 07/01/2034		4,000		4,092
Director of the State of Nevada, Development of Business & Industry, Las Ventanas Retirement Project, Series B Callable 11/15/2008 @ 100
	6.000%, 11/15/2014		750		740
Director of the State of Nevada, Development of Business & Industry, Las Ventanas Retirement Project, Series B, Callable 11/15/2014 @ 100
	6.750%, 11/15/2023		2,300		2,270
					12,207
New Hampshire – 0.4%
Revenue Bonds – 0.4%
New Hampshire Health & Educational Facilities Authority Covenant Health, Callable 07/01/2014 @ 100
	5.375%, 07/01/2024		1,250		1,284

First American Funds Annual Report 2006      99

Schedule of  Investments continued

Tax Free Fund (continued)
DESCRIPTION		PAR		VALUE
New Hampshire Health & Educational Facilities Authority, Speare Memorial Hospital, Callable 07/01/2015 @ 100
	5.875%, 07/01/2034	$	800	$	813
					2,097
New Jersey – 0.7%
General Obligation – 0.7%
Camden County, Municipal Utilities Authority Sewer Revenue Refunding, Series C, Callable 07/15/2008 @ 101 (FGIC)
	5.100%, 07/15/2012		3,500		3,604
New York – 3.3%
Revenue Bond – 2.6%
Liberty Development Corporation, Goldman Sachs Headquarters, Callable until 09/30/2035 @ 100
	5.250%, 10/01/2035		12,000		12,765
General Obligation – 0.7%
New York, Series C, Callable 03/15/2012 @ 100
	5.250%, 03/15/2032		3,590		3,684
					16,449
North Carolina – 1.4%
Revenue Bonds – 1.4%
North Carolina Medical Care Community Health Care Facilities, Pennybyrn at Maryfield, Series A, Callable 10/01/2015 @ 100
	6.000%, 10/01/2023		4,700		4,790
North Carolina Medical Care Community Health Care Facilities, Presbyterian Homes, Callable 10/01/2016 @ 100
	5.400%, 10/01/2027 (d)		2,100		2,075
					6,865
North Dakota – 0.5%
Revenue Bond – 0.5%
North Dakota State Board of Higher Education, Bismarck State College, Callable 05/01/2015 @ 100
	5.350%, 05/01/2030		2,500		2,413
Ohio – 1.3%
Revenue Bonds – 1.3%
Cincinnati Water System, Callable 06/01/2011 @ 100
	5.000%, 12/01/2020		125		128
Miami County Hospital Facilities, Upper Valley Medical Center, Callable 05/15/2016 @ 100
	5.250%, 05/15/2026		1,000		1,023
Ohio State Higher Educational Facility, Baldwin-Wallace College Project, Callable 06/01/2014 @ 100
	5.125%, 12/01/2017		1,490		1,516
	5.250%, 12/01/2019		1,540		1,570
Toledo-Lucas County Port Authority, Crocker Park Public Improvement Project, Callable 12/01/2013 @ 102
	5.250%, 12/01/2023		2,000		2,030
					6,267
Oklahoma – 0.7%
Revenue Bonds – 0.7%
Norman Regional Hospital Authority, Callable 09/01/2016 @ 100
	5.375%, 09/01/2029		1,000		1,009
	5.375%, 09/01/2036		2,325		2,337
					3,346
Oregon – 1.6%
Revenue Bonds – 1.6%
Gilliam County Solid Waste Disposal, Waste Management Project, Callable 05/01/2016 @ 101 (AMT)
	5.250%, 07/01/2029		1,500		1,497
Washington County Unified Sewer Agency, Series 1 (FGIC)
	5.750%, 10/01/2010		6,110		6,540
					8,037
Pennsylvania – 2.0%
Revenue Bonds – 0.9%
Chester Upland School Authority, Series A, Callable 09/01/2007 @ 100 (FSA)
	5.250%, 09/01/2017		2,000		2,028
Erie County Industrial Development Authority, International Paper Company Project, Series A, Callable 11/01/2014 @ 100 (AMT)
	5.000%, 11/01/2018		1,350		1,324
Westmoreland County Industrial Development Authority, Redstone Retirement Community, Series A, Callable 01/01/2016 @ 100
	5.750%, 01/01/2026		1,200		1,222
					4,574
General Obligation – 1.1%
Pennsylvania State,  Callable 03/15/2007 @ 101.50 (AMBAC)
	5.125%, 09/15/2011		5,000		5,112
					9,686
Puerto Rico – 1.1%
Revenue Bond – 1.0%
Puerto Rico Electric Power Authority, Series RR, Callable 07/01/2015 @ 100 (CIFG)
	5.000%, 07/01/2029		5,000		5,117
General Obligation – 0.1%
Puerto Rico Public Improvements, Callable 07/01/2010 @ 100 (MBIA)
	5.750%, 07/01/2026		500		533
					5,650
Rhode Island – 1.0%
General Obligation – 1.0%
Rhode Island State, Series A, Pre-refunded 08/01/2007 @ 101 (MBIA)
	5.125%, 08/01/2012 (a)		5,055		5,176
South Carolina – 1.5%
Revenue Bonds – 1.5%
Georgetown County Environmental Improvement, International Paper, Series A, Callable 12/01/2015 @ 100 (AMT)
	5.550%, 12/01/2029		700		717
Lexington County Health Services District, Lexington Medical Center, Callable 11/01/2013 @ 100
	5.500%, 11/01/2023		2,000		2,065

The accompanying notes are an integral part of the financial statements.

100      First American Funds Annual Report 2006

Tax Free Fund (continued)
DESCRIPTION		PAR		VALUE
South Carolina Jobs Economic Development Authority, Palmetto Health Alliance, Series A, Callable 08/01/2013 @ 100
	6.125%, 08/01/2023	$	1,250	$	1,353
South Carolina Jobs Economic Development Authority, Palmetto Health Alliance, Series C, Callable 08/01/2013 @ 100
	6.375%, 08/01/2034		135		149
South Carolina Jobs Economic Development Authority, Palmetto Health Alliance, Series C, Pre-refunded 08/01/2013 @ 100
	6.375%, 08/01/2034 (a)		1,115		1,263
South Carolina State Public Service Authority, Santee Cooper, Series A, Callable 01/01/2016 @ 100
	5.000%, 01/01/2030		2,000		2,046
					7,593
South Dakota – 1.9%
Revenue Bonds – 1.4%
Sioux Falls, Dow Rummel Village Project, Series A, Callable 11/15/2012 @ 100
	6.625%, 11/15/2023		2,200		2,268
South Dakota Economic Development Finance Authority, DTS Project, Series A, Callable 04/01/2009 @ 102 (AMT)
	5.500%, 04/01/2019		1,055		1,076
South Dakota Economic Development Finance Authority, Pooled Loan Project – Davis Family, Series 4-A, Callable 04/01/2014 @ 100 (AMT)
	6.000%, 04/01/2029		1,400		1,422
South Dakota Health & Educational Facilities Authority, Westhills Village Retirement Community, Callable 09/01/2014 @ 100
	5.000%, 09/01/2025 (d)		645		641
	5.000%, 09/01/2031 (d)		1,250		1,222
					6,629
General Obligation – 0.1%
Sioux Falls School District #49-5, Series B, Callable 07/01/2016 @ 100
	4.750%, 07/01/2020		510		518
Certificate of Participation – 0.4%
Deadwood, Callable 11/01/2015 @ 100 (ACA) (MLO)
	5.000%, 11/01/2020		2,000		2,013
					9,160
Tennessee – 2.5%
Revenue Bonds – 2.5%
Johnson City Health & Educational Facilities Authority Mountain States Health, Series A, Callable 07/01/2012 @ 103
	7.500%, 07/01/2033		2,500		2,871
Shelby County Health, Educational & Housing Facilities Board, Methodist Healthcare, Pre-refunded 09/01/2012 @ 100
	6.500%, 09/01/2021 (a)		3,000		3,403
Sullivan County Health, Educational & Housing Facilities Board, Wellmont Health Systems Project, Pre-refunded 09/01/2012 @ 101
	6.250%, 09/01/2032 (a)		5,500		6,128
					12,402
Texas – 14.9%
Revenue Bonds – 9.9%
Abilene Health Facilities Development, Sears Methodist Retirement Project, Callable 05/15/2009 @ 101
	5.875%, 11/15/2018		500		509
	6.000%, 11/15/2029		2,000		2,017
Abilene Health Facilities Development, Sears Methodist Retirement Project, Series A, Callable 11/15/2008 @ 101
	5.875%, 11/15/2018		2,500		2,543
Abilene Health Facilities Development, Sears Methodist Retirement Project, Series A, Callable 11/15/2013 @ 101
	7.000%, 11/15/2033		4,000		4,297
Bexar County Housing Finance Authority, American Opportunity Housing, Colinas LLC Project, Series A, Callable 01/01/2011 (MBIA)
	5.800%, 01/01/2031		2,000		2,070
Brazos River Authority PCR-Texas Utility Company, Callable 04/01/2013 @ 101 (AMT)
	7.700%, 04/01/2033		2,500		2,902
Brazos River Harbor District, Dow Chemical, Series A-5, Mandatory Put 05/15/2012 @ 100 (AMT)
	5.700%, 05/15/2033		2,500		2,637
Crawford Education Facilities, University of St. Thomas Project,  Callable 10/01/2012 @ 100
	5.250%, 10/01/2022		1,300		1,301
	5.375%, 10/01/2027		1,750		1,764
Harris County Health Facilities Development, Memorial Hospital Systems Project, Series A, Callable 06/01/2007 @ 102 (MBIA)
	5.500%, 06/01/2017		8,000		8,252
Red River Authority Sewer & Solidwaste Disposal Excel Corporation Project, Callable 02/01/2012 @ 101 (AMT)
	6.100%, 02/01/2022		3,775		3,983
Richardson Hospital Authority, Richardson Regional Hospital, Callable 12/01/2013 @ 100
	6.000%, 12/01/2034		9,500		10,035
Tarrant County Cultural Education Retirement Facilities, Northwest Senior Housing Edgemere Project, Series A, Callable 11/15/2016 @ 100
	6.000%, 11/15/2026		1,600		1,675
Texas Water Development Board, Series A, Callable 07/15/2006 @ 100
	5.500%, 07/15/2010		2,500		2,503
Travis County Health Facilities, Querencia Barton Creek Project, Callable 11/15/2015 @ 100
	5.500%, 11/15/2025		1,300		1,268
	5.650%, 11/15/2035		1,100		1,060
					48,816
General Obligations – 5.0%
Cypress-Fairbanks Independent School District, Pre-refunded 02/15/2010 @ 100 (PSFG)
	5.500%, 02/15/2018 (a)		5,000		5,267
Fort Bend Independent School District, Escrowed to Maturity, Callable until 02/15/2013 @ 100 (PSFG)
	5.000%, 02/15/2014 (c)		500		529

First American Funds Annual Report 2006      101

Schedule of  Investments continued

Tax Free Fund (continued)
DESCRIPTION		PAR		VALUE
Laredo Independent School District (PSFG)
	6.750%, 08/01/2009	$	2,290	$	2,473
Remington Municipal Utility District #1, Series A, Callable 09/01/2008 @ 100 (RAAI)
	5.800%, 09/01/2025		1,000		1,030
San Antonio Independent School District, Pre-refunded 08/15/2008 @ 100 (PSFG)
	5.125%, 08/15/2014 (a)		6,000		6,155
Spring Branch Independent School District, Pre-refunded 02/01/2010 @ 100 (PSFG)
	5.750%, 02/01/2025 (a)		2,400		2,541
Texas State, Water Development, Pre-refunded 08/01/2006 @ 100
	5.400%, 08/01/2021 (a)		6,750		6,759
					24,754
					73,570
Utah – 0.2%
Revenue Bonds – 0.2%
Intermountain Power Agency, Utah Power Supply, Series A, (AMBAC)
	6.500%, 07/01/2011		365		405
Intermountain Power Agency, Utah Power Supply, Series A, Escrowed to Maturity (AMBAC)
	6.500%, 07/01/2011 (c)		635		708
					1,113
Vermont – 0.2%
Revenue Bond – 0.2%
Vermont Economic Development Authority, Wake Robin Corporation Project, Series A, Callable 05/01/2016 @ 100
	5.250%, 05/01/2026 (d)		1,000		986
Virginia – 0.2%
Revenue Bond – 0.2%
Arlington County Industrial Development Authority, Berkeley Apartments, Callable 12/01/2010 @ 102 (AMT) (FNMA)
	5.850%, 12/01/2020		1,000		1,058
Washington – 5.1%
Revenue Bonds – 1.6%
Energy Northwest, Washington Wind Project, Pre-refunded 01/01/2007 @ 103
	5.600%, 07/01/2015 (a)		4,640		4,817
Snohomish County Public Utilities District #1, Escrowed to Maturity, Callable until 01/01/2011 @ 100
	6.750%, 01/01/2012 (c)		1,000		1,083
Washington State Public Power Supply System, Nuclear Project #3, Series A, Callable 07/01/2007 @ 102 (FSA)
	5.250%, 07/01/2016		1,000		1,031
Washington State Public Power Supply System, Nuclear Project #3, Series B
	7.125%, 07/01/2016		600		725
					7,656
General Obligations – 3.5%
King County, Series F, Callable 12/01/2007 @ 100
	5.125%, 12/01/2014		5,000		5,077
Washington State, Series C, Pre-refunded 01/01/2007 @ 100
	5.500%, 01/01/2017 (a)		4,190		4,226
Washington State Motor Vehicle Fuel Tax, Series D, Pre-refunded 01/01/2007 @ 100 (FGIC)
	5.375%, 01/01/2022 (a)		8,000		8,064
					17,367
					25,023
Wisconsin – 3.0%
Revenue Bonds – 3.0%
Amery, Apple River Hospital Project, Pre-refunded 06/01/2008 @ 100
	5.700%, 06/01/2013 (a)		1,440		1,452
Wisconsin State Health & Educational Facilities Authority, Attic Angel Obligation Group, Pre-refunded 11/17/2008 @ 102
	5.750%, 11/15/2027 (a)		1,000		1,052
Wisconsin State Health & Educational Facilities Authority, Beaver Dam Community Hospitals, Series A, Callable 08/15/2014 @ 100
	6.750%, 08/15/2034		1,000		1,072
Wisconsin State Health & Educational Facilities Authority, Beloit Memorial Hospital, Callable until 07/01/2008 @ 100
	5.800%, 07/01/2009		555		555
Wisconsin State Health & Educational Facilities Authority, Eastcastle Place Income Project, Callable 12/01/2011 @ 100
	6.000%, 12/01/2024		1,000		1,019
Wisconsin State Health & Educational Facilities Authority, Marshfield Clinic, Series B, Callable 02/15/2012 @ 100
	6.000%, 02/15/2025		3,500		3,680
Wisconsin State Health & Educational Facilities Authority, Meriter Hospital, Callable 12/01/2006 @ 102 (MBIA)
	6.000%, 12/01/2017		2,000		2,055
Wisconsin State Health & Educational Facilities Authority, New Castle Place Project, Series A, Callable 12/01/2011 @ 101
	7.000%, 12/01/2031		2,000		2,055
Wisconsin State Health & Educational Facilities Authority, Southwest Health Center, Series A, Callable 04/01/2014 @ 100
	6.250%, 04/01/2034		2,000		2,020
					14,960
Wyoming – 0.8%
Revenue Bonds – 0.8%
Teton County Hospital District, St. John’s Medical Center, Callable 06/01/2012 @ 101
	6.750%, 12/01/2022		2,100		2,221
	6.750%, 12/01/2027		1,500		1,577
					3,798
Total Municipal Bonds (Cost $468,010)					486,610
Short-Term Investment – 1.3%
First American Tax Free Obligations Fund, Class Z (e)
	(Cost $6,548)		6,548,268		6,548
Total Investments – 99.7% (Cost $474,558)					493,158
Other Assets and Liabilities, Net – 0.3%					1,481
Total Net Assets – 100.0%				$	494,639

The accompanying notes are an integral part of the financial statements.

102      First American Funds Annual Report 2006

Tax Free Fund (concluded)

(a)	Pre-refunded issues are typically backed by U.S. government obligations. These bonds mature at the call date and price indicated.
(b)	Zero coupon bonds make no periodic interest payments, but are issued at deep discounts from par value. The rate shown is the effective yield at the time of purchase.
(c)	Escrowed to Maturity issues are typically backed by U.S. government obligations. If callable, these bonds may still be subject to call at the call date and price indicated.
(d)	Security purchased on a when-issued basis. On June 30, 2006, the total cost of investments purchased on a when-issued basis was $4,947 or 1.0% of total net assets. See note 2 in Notes to Financial Statements.
(e)	Investment in affiliated security. This money market fund is advised by FAF Advisors, Inc., which also serves as advisor for this fund. See note 3 in Notes to Financial Statements.

ACA – American Capital Access

AGTY – Assured Guaranty

AMBAC – American Municipal Bond Assurance Corporation

AMT – Alternative Minimum Tax. As of June 30, 2006, the aggregate market value of securities subject to the AMT was $46,769, which represents 9.5% of total net assets.

CIFG – CDC IXIS Financial Guaranty

CLE – Connie Lee Insurance Company

CMI – California Mortgage Insurance Program

FGIC – Financial Guaranty Insurance Corporation

FHA – Federal Housing Authority

FNMA – Federal National Mortgage Association

FSA – Financial Security Assurance

GNMA – Government National Mortgage Association

MBIA – Municipal Bond Insurance Association

MLO – Municipal Lease Obligation

MQSBLF – Michigan Qualified School Board Loan Fund Program

PSFG – Permanent School Fund Guarantee

RAAI – Radian Asset Assurance Inc.

First American Funds Annual Report 2006      103

Statements of  Assets and Liabilities June 30, 2006, all dollars are rounded to thousands (000), except per share data

			California				Colorado
	Arizona		Intermediate		California		Intermediate		Colorado
	Tax Free Fund		Tax Free Fund		Tax Free Fund		Tax Free Fund		Tax Free Fund
Investments in unaffiliated securities, at cost	$	25,158	$	53,266	$	35,030	$	40,310	$	20,886
Investments in affiliated money market fund, at cost		7		—		—		687		550
ASSETS:
Investments in unaffiliated securities, at value (note 2)	$	25,782	$	54,176	$	35,853	$	41,589	$	21,746
Investments in affiliated money market fund, at value (note 2)		7		—		—		687		550
Cash		—		—		3		—		—
Receivable for dividends and interest		413		692		430		277		159
Receivable for investment securities sold		517		174		—		—		—
Receivable for capital shares sold		—		180		—		—		23
Receivable from advisor		2		—		—		—		2
Prepaid expenses and other assets		6		4		5		5		5
Total assets		26,727		55,226		36,291		42,558		22,485
LIABILITIES:
Payable for investment securities purchased		—		—		—		—		—
Payable for investment securities purchased on a when-issued basis		668		—		—		245		745
Payable for capital shares redeemed		1		—		105		25		—
Payable for variation margin		5		—		—		—		7
Payable to affiliates (note 3)		10		31		13		22		8
Payable for distribution and shareholder servicing fees		3		—		4		1		3
Accrued expenses and other liabilities		27		28		27		27		27
Total liabilities		714		59		149		320		790
Net assets	$	26,013	$	55,167	$	36,142	$	42,238	$	21,695
COMPOSITION OF NET ASSETS:
Portfolio capital	$	25,278	$	54,034	$	35,249	$	40,632	$	20,620
Undistributed net investment income		7		16		17		34		39
Accumulated net realized gain (loss) on investments (note 2)		94		207		53		293		161
Net unrealized appreciation (depreciation) of investments		624		910		823		1,279		860
Net unrealized appreciation on futures contracts		10		—		—		—		15
Net assets	$	26,013	$	55,167	$	36,142	$	42,238	$	21,695
Class A:
Net assets	$	9,041	$	3,441	$	10,783	$	9,577	$	8,507
Shares issued and outstanding ($0.0001 par value – 2 billion authorized)		833		340		984		920		793
Net asset value and redemption price per share	$	10.85	$	10.11	$	10.96	$	10.40	$	10.73
Maximum offering price per share (1)	$	11.33	$	10.34	$	11.45	$	10.64	$	11.21
Class C:
Net assets	$	1,358		—	$	3,592		—	$	3,007
Shares issued and outstanding ($0.0001 par value – 2 billion authorized)		125		—		327		—		281
Net asset value, offering price, and redemption price per share (2)	$	10.84		—	$	10.97		—	$	10.71
Class Y:
Net assets	$	15,614	$	51,726	$	21,767	$	32,661	$	10,181
Shares issued and outstanding ($0.0001 par value – 2 billion authorized)		1,438		5,107		1,985		3,147		947
Net asset value, offering price, and redemption price per share	$	10.85	$	10.13	$	10.97	$	10.38	$	10.75

(1)	The offering price is calculated by dividing the net asset value by 1 minus the maximum sales charge. For a description of front-end sales charges, see note 1 in Notes to Financial Statements.
(2)	Class C has a contingent deferred sales charge. For a description of this sales charge, see notes 1 and 3 in Notes to Financial Statements.

The accompanying notes are an integral part of the financial statements.

104      First American Funds Annual Report 2006

		Minnesota										Oregon
Intermediate		Intermediate		Minnesota		Missouri		Nebraska		Ohio		Intermediate		Short
Tax Free		Tax Free		Tax Free		Tax Free		Tax Free		Tax Free		Tax Free		Tax Free			Tax Free
Fund		Fund		Fund		Fund		Fund		Fund		Fund		Fund			Fund
$	602,792	$	195,816	$	153,981	$	160,028	$	38,675	$	41,498	$	117,869	$	241,875		$	468,010
	1,982		—		46		889		1,692		—		356		2,378			6,548
$	620,778	$	199,864	$	159,796	$	162,938	$	39,102	$	41,778	$	119,453	$	239,045		$	486,610
	1,982		—		46		889		1,692		—		356		2,378			6,548
	—		—		—		—		—		—		—		—			—
	7,823		3,045		2,054		2,316		489		359		1,079		2,829			7,062
	674		1,125		—		395		488		—		—		—			—
	49		321		252		—		20		—		20		260			110
	—		—		—		—		—		—		—		—			—
	8		5		6		6		6		5		5		6			9
	631,314		204,360		162,154		166,544		41,797		42,142		120,913		244,518			500,339
	—		—		1,755		—		497		401		—		5,117			—
	1,809		1,736		—		—		1,504		—		—		—			4,947
	261		461		—		833				42		13		25			421
	—		—		—		—		9		—		—		—			—
	375		118		87		96		14		16		70		123			288
	4		3		21		6		2		—		1		—			9
	38		31		30		29		27		27		29		32			35
	2,487		2,349		1,893		964		2,053		486		113		5,297			5,700
$	628,827	$	202,011	$	160,261	$	165,580	$	39,744	$	41,656	$	120,800	$	239,221		$	494,639
$	610,840	$	197,037	$	153,957	$	162,057	$	39,117	$	41,315	$	118,894	$	243,168		$	473,806
	—		65		56		31		19		16		67		119			81
	1		861		433		582		161		45		255		(1,236	)		2,152
	17,986		4,048		5,815		2,910		427		280		1,584		(2,830	)		18,600
	—		—		—		—		20		—		—		—			—
$	628,827	$	202,011	$	160,261	$	165,580	$	39,744	$	41,656	$	120,800	$	239,221		$	494,639
$	32,521	$	26,526	$	101,142	$	26,972	$	6,910	$	841	$	9,456	$	3,321		$	36,519
	3,059		2,686		9,220		2,294		669		83		967		343			3,363
$	10.63	$	9.88	$	10.97	$	11.76	$	10.33	$	10.17	$	9.78	$	9.68		$	10.86
$	10.87	$	10.11	$	11.46	$	12.28	$	10.79	$	10.62	$	10.01	$	9.90		$	11.34
	—		—	$	10,359	$	214	$	1,487	$	209		—		—		$	2,210
	—		—		948		18		145		21		—		—			204
	—		—	$	10.93	$	11.73	$	10.26	$	10.05		—		—		$	10.81
$	596,306	$	175,485	$	48,760	$	138,394	$	31,347	$	40,606	$	111,344	$	235,900		$	455,910
	56,201		17,858		4,450		11,765		3,036		3,994		11,386		24,360			41,937
$	10.61	$	9.83	$	10.96	$	11.76	$	10.33	$	10.17	$	9.78	$	9.68		$	10.87

First American Funds Annual Report 2006      105

Statements of  Operations all dollars are rounded to thousands (000)

							California
	Arizona						Intermediate
	Tax Free Fund						Tax Free Fund
	Nine-Month						Nine-Month
	Period Ended			Year Ended			Period Ended			Year Ended
	6/30/06			9/30/05			6/30/06			9/30/05
INVESTMENT INCOME:
Interest from unaffiliated securities	$	928		$	1,086		$	1,921		$	2,378
Dividends from affiliated money market fund		13			2			—			—
Total investment income		941			1,088			1,921			2,378
EXPENSES (note 3):
Investment advisory fees		99			111			209			261
Administration fees		31			52			61			114
Transfer agent fees		30			15			60			33
Custodian fees		1			2			2			5
Professional fees		40			13			40			15
Registration fees		8			8			6			5
Postage and printing fees		6			1			3			2
Directors’ fees		10			1			10			1
Other expenses		15			4			15			5
Distribution and shareholder servicing fees – Class A		18			24			8			10
Distribution and shareholder servicing fees – Class C		11			16			—			—
Total expenses		269			247			414			451
Less: Fee waivers (note 3)		(145	)		(102	)		(116	)		(80	)
Less: Indirect payments from custodian (note 3)		—	(1)		—			—	(1)		—
Total net expenses		124			145			298			371
Investment income – net		817			943			1,623			2,007
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS – NET (note 5):
Net realized gain on investments		94			215			207			174
Net realized gain on futures contracts		—			—			—			—
Net change in unrealized appreciation or depreciation of investments		(713	)		(401	)		(1,353	)		(809	)
Net change in unrealized appreciation or depreciation of futures contracts		10			—			—			—
Net loss on investments		(609	)		(186	)		(1,146	)		(635	)
Net increase in net assets resulting from operations	$	208		$	757		$	477		$	1,372

(1)   Due to the presentation of the financial statements in thousands, the numbers round to zero.

The accompanying notes are an integral part of the financial statements.

106      First American Funds Annual Report 2006

						Colorado
California						Intermediate						Colorado						Intermediate
Tax Free Fund						Tax Free Fund						Tax Free Fund						Tax Free Fund
Nine-Month						Nine-Month						Nine-Month						Nine-Month
Period Ended			Year Ended			Period Ended			Year Ended			Period Ended			Year Ended			Period Ended			Year Ended
6/30/06			9/30/05			6/30/06			9/30/05			6/30/06			9/30/05			6/30/06			9/30/05
$	1,244		$	1,374		$	1,649		$	2,367		$	807		$	1,090		$	23,513		$	32,007
	—			—			15			14			15			5			145			144
	1,244			1,374			1,664			2,381			822			1,095			23,658			32,151
	131			148			170			254			81			110			2,462			3,326
	40			68			51			111			26			52			674			1,397
	39			20			50			32			26			14			670			425
	1			3			2			4			1			2			25			58
	40			14			40			15			40			14			38			44
	7			7			6			5			7			7			29			23
	2			1			3			2			2			1			28			25
	10			1			10			1			10			1			13			16
	15			4			14			5			14			4			17			16
	22			26			22			36			17			23			63			87
	25			17			—			—			24			38			—			—
	332			309			368			465			248			266			4,019			5,417
	(163	)		(124	)		(116	)		(88	)		(134	)		(108	)		(531	)		(709	)
	—			—			—	(1)		—			—	(1)		—			(1	)		—
	169			185			252			377			114			158			3,487			4,708
	1,075			1,189			1,412			2,004			708			937			20,171			27,443
	45			66			293			284			158			586			881			1,758
	8			—			—			—			3			—			—			—
	(895	)		(182	)		(1,489	)		(1,134	)		(714	)		(804	)		(16,513	)		(13,264	)
	—			—			—			—			15			—			—			—
	(842	)		(116	)		(1,196	)		(850	)		(538	)		(218	)		(15,632	)		(11,506	)
$	233		$	1,073		$	216		$	1,154		$	170		$	719		$	4,539		$	15,937

First American Funds Annual Report 2006      107

Statements of  Operations continued

	Minnesota
	Intermediate						Minnesota
	Tax Free Fund						Tax Free Fund
	Nine-Month						Nine-Month
	Period Ended			Year Ended			Period Ended			Year Ended
	6/30/06			9/30/05			6/30/06			9/30/05
INVESTMENT INCOME:
Interest from unaffiliated securities	$	7,607		$	11,092		$	6,207		$	8,303
Dividends from affiliated money market fund		—			—			10			—
Total investment income		7,607			11,092			6,217			8,303
EXPENSES (note 3):
Investment advisory fees		809			1,199			610			832
Administration fees		225			509			169			352
Transfer agent fees		223			151			169			106
Custodian fees		8			21			7			15
Professional fees		40			24			40			21
Registration fees		7			5			8			9
Postage and printing fees		11			9			12			7
Directors’ fees		11			6			11			4
Other expenses		15			9			15			7
Distribution and shareholder servicing fees – Class A		54			85			195			278
Distribution and shareholder servicing fees – Class C		—			—			74			99
Total expenses		1,403			2,018			1,310			1,730
Less: Fee waivers (note 3)		(236	)		(288	)		(213	)		(223	)
Less: Indirect payments from custodian (note 3)		(1	)		—			—	(1)		—
Total net expenses		1,166			1,730			1,097			1,507
Investment income – net	��	6,441			9,362			5,120			6,796
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS – NET (note 5):
Net realized gain on investments		874			1,370			382			399
Net realized gain on futures contracts		—			—			51			—
Net change in unrealized appreciation or depreciation of investments		(5,474	)		(4,978	)		(3,439	)		20
Net change in unrealized appreciation or depreciation of futures contracts		—			—			—			—
Net gain (loss) on investments		(4,600	)		(3,608	)		(3,006	)		419
Net increase in net assets resulting from operations	$	1,841		$	5,754		$	2,114		$	7,215

(1)   Due to the presentation of the financial statements in thousands, the numbers round to zero.

The accompanying notes are an integral part of the financial statements.

108      First American Funds Annual Report 2006

																		Oregon
Missouri						Nebraska						Ohio						Intermediate
Tax Free Fund						Tax Free Fund						Tax Free Fund						Tax Free Fund
Nine-Month						Nine-Month						Nine-Month						Nine-Month
Period Ended			Year Ended			Period Ended			Year Ended			Period Ended			Year Ended			Period Ended			Year Ended
6/30/06			9/30/05			6/30/06			9/30/05			6/30/06			9/30/05			6/30/06			9/30/05
$	6,119		$	8,285		$	1,390		$	1,726		$	1,352		$	1,768		$	4,401		$	6,277
	38			37			27			22			—			—			16			23
	6,157			8,322			1,417			1,748			1,352			1,768			4,417			6,300
	656			905			153			193			155			212			494			715
	181			383			45			85			45			93			138			306
	181			116			45			25			46			27			138			91
	6			16			2			3			2			4			6			13
	40			21			40			14			40			15			40			19
	8			8			7			8			7			7			6			6
	9			8			2			2			2			2			6			5
	11			4			10			1			10			1			10			3
	16			7			15			5			15			5			15			6
	54			71			13			15			2			3			19			22
	1			2			12			18			1			1			—			—
	1,163			1,541			344			369			325			370			872			1,186
	(189	)		(202	)		(170	)		(149	)		(167	)		(154	)		(169	)		(173	)
	—	(1)		—			—	(1)		—			—			—			—	(1)		—
	974			1,339			174			220			158			216			703			1,013
	5,183			6,983			1,243			1,528			1,194			1,552			3,714			5,287
	622			1,283			153			67			36			58			255			590
	—			—			8			—			9			—			—			—
	(4,893	)		(2,964	)		(1,126	)		(332	)		(1,077	)		(282	)		(3,575	)		(3,269	)
	—			—			20			—			—			—			—			—
	(4,271	)		(1,681	)		(945	)		(265	)		(1,032	)		(224	)		(3,320	)		(2,679	)
$	912		$	5,302		$	298		$	1,263		$	162		$	1,328		$	394		$	2,608

First American Funds Annual Report 2006      109

Statements of  Operations continued

	Short
	Tax Free Fund						Tax Free Fund
	Nine-Month						Nine-Month
	Period Ended			Year Ended			Period Ended			Year Ended
	6/30/06			9/30/05			6/30/06			9/30/05
INVESTMENT INCOME:
Interest from unaffiliated securities	$	6,948		$	12,331		$	19,059		$	23,876
Dividends from affiliated money market fund		347			170			166			110
Total investment income		7,295			12,501			19,225			23,986
EXPENSES (note 3):
Investment advisory fees		1,072			1,942			1,838			2,330
Administration fees		289			824			499			976
Transfer agent fees		294			238			501			299
Custodian fees		12			35			18			41
Professional fees		37			31			39			35
Registration fees		29			23			35			31
Postage and printing fees		12			15			24			20
Directors’ fees		11			9			12			11
Other expenses		16			12			17			13
Distribution and shareholder servicing fees – Class A		7			14			68			97
Distribution and shareholder servicing fees – Class C		—			—			19			27
Total expenses		1,779			3,143			3,070			3,880
Less: Fee waivers (note 3)		(482	)		(804	)		(413	)		(503	)
Less: Indirect payments from custodian (note 3)		—	(1)		—			—	(1)		—
Total net expenses		1,297			2,339			2,657			3,377
Investment income – net		5,998			10,162			16,568			20,609
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS – NET (note 5):
Net realized gain (loss) on investments		(611	)		(387	)		2,831			1,085
Net change in unrealized appreciation or depreciation of investments		(2,031	)		(6,969	)		(11,649	)		(206	)
Net change in unrealized appreciation or depreciation of futures contracts		—			—			—			—
Net gain (loss) on investments		(2,642	)		(7,356	)		(8,818	)		879
Net increase in net assets resulting from operations	$	3,356		$	2,806		$	7,750		$	21,488

(1)   Due to the presentation of the financial statements in thousands, the numbers round to zero.

The accompanying notes are an integral part of the financial statements.

110      First American Funds Annual Report 2006

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Statements of  Changes in Net Assets all dollars are rounded to thousands (000)

											California
		Arizona									Intermediate
		Tax Free Fund									Tax Free Fund
		Nine-Month									Nine-Month
		Period Ended			Year Ended			Year Ended			Period Ended			Year Ended			Year Ended
		6/30/06			9/30/05			9/30/04			6/30/06			9/30/05			9/30/04
OPERATIONS:
Investment income – net		$	817		$	943		$	902		$	1,623		$	2,007		$	1,910
Net realized gain on investments			94			215			230			207			174			358
Net realized gain on futures contracts			—			—			—			—			—			—
Net change in unrealized appreciation or depreciation of investments			(713	)		(401	)		17			(1,353	)		(809	)		(628	)
Net change in unrealized appreciation or depreciation of futures contracts			10			—			—			—			—			—
Net increase in net assets resulting from operations			208			757			1,149			477			1,372			1,640
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income – net:
	Class A		(284	)		(412	)		(413	)		(115	)		(142	)		(154	)
	Class C		(39	)		(64	)		(60	)		—			—			—
	Class Y		(487	)		(516	)		(414	)		(1,509	)		(1,860	)		(1,780	)
Net realized gain on investments:
	Class A		(80	)		(99	)		(50	)		(14	)		(25	)		(13	)
	Class C		(11	)		(18	)		(8	)		—			—			—
	Class Y		(119	)		(113	)		(41	)		(160	)		(331	)		(141	)
Total distributions			(1,020	)		(1,222	)		(986	)		(1,798	)		(2,358	)		(2,088	)
CAPITAL SHARE TRANSACTIONS (note 4):
Class A:
	Proceeds from sales		1,018			2,145			1,820			972			1,367			1,820
	Reinvestment of distributions		302			422			397			77			120			128
	Payments for redemptions		(1,534	)		(1,831	)		(5,214	)		(1,460	)		(852	)		(2,787	)
Increase (decrease) in net assets from Class A transactions			(214	)		736			(2,997	)		(411	)		635			(839	)
Class C:
	Proceeds from sales		125			201			372			—			—			—
	Reinvestment of distributions		45			65			50			—			—			—
	Payments for redemptions (note 3)		(394	)		(192	)		(698	)		—			—			—
Increase (decrease) in net assets from Class C transactions			(224	)		74			(276	)		—			—			—
Class Y:
	Proceeds from sales		5,805			5,175			2,320			9,187			6,384			8,208
	Reinvestment of distributions		117			73			27			47			80			29
	Payments for redemptions		(3,869	)		(499	)		(2,150	)		(5,573	)		(3,209	)		(5,478	)
Increase (decrease) in net assets from Class Y transactions			2,053			4,749			197			3,661			3,255			2,759
Increase (decrease) in net assets from capital share transactions			1,615			5,559			(3,076	)		3,250			3,890			1,920
Total increase (decrease) in net assets			803			5,094			(2,913	)		1,929			2,904			1,472
Net assets at beginning of period			25,210			20,116			23,029			53,238			50,334			48,862
Net assets at end of period		$	26,013		$	25,210		$	20,116		$	55,167		$	53,238		$	50,334
Undistributed net investment income at end of period		$	7		$	—		$	44		$	16		$	17		$	12

The accompanying notes are an integral part of the financial statements.

112      First American Funds Annual Report 2006

									Colorado
California									Intermediate									Colorado
Tax Free Fund									Tax Free Fund									Tax Free Fund
Nine-Month									Nine-Month									Nine-Month
Period Ended			Year Ended			Year Ended			Period Ended			Year Ended			Year Ended			Period Ended			Year Ended			Year Ended
6/30/06			9/30/05			9/30/04			6/30/06			9/30/05			9/30/04			6/30/06			9/30/05			9/30/04
$	1,075		$	1,189		$	1,130		$	1,412		$	2,004		$	2,441		$	708		$	937		$	1,086
	45			66			274			293			284			631			158			586			177
	8			—			—			—			—			—			3			—			—
	(895	)		(182	)		(104	)		(1,489	)		(1,134	)		(1,415	)		(714	)		(804	)		(145	)
	—			—			—			—			—			—			15			—			—
	233			1,073			1,300			216			1,154			1,657			170			719			1,118
	(344	)		(400	)		(415	)		(346	)		(577	)		(660	)		(275	)		(420	)		(515	)
	(91	)		(60	)		(43	)		—			—			—			(91	)		(153	)		(152	)
	(632	)		(744	)		(681	)		(1,055	)		(1,500	)		(1,748	)		(310	)		(419	)		(431	)
	(23	)		(89	)		(84	)		(74	)		(44	)		—			(271	)		(77	)		(90	)
	(6	)		(13	)		(9	)		—			—			—			(98	)		(30	)		(29	)
	(36	)		(149	)		(117	)		(209	)		(125	)		—			(217	)		(70	)		(68	)
	(1,132	)		(1,455	)		(1,349	)		(1,684	)		(2,246	)		(2,408	)		(1,262	)		(1,169	)		(1,285	)
	1,708			4,192			1,756			88			4,258			2,059			1,620			303			879
	249			383			413			276			428			471			460			421			542
	(2,773	)		(2,086	)		(3,770	)		(3,840	)		(4,917	)		(10,910	)		(1,468	)		(2,770	)		(4,575	)
	(816	)		2,489			(1,601	)		(3,476	)		(231	)		(8,380	)		612			(2,046	)		(3,154	)
	1,135			1,840			577			—			—			—			132			485			273
	58			65			49			—			—			—			178			172			172
	(585	)		(109	)		(439	)		—			—			—			(556	)		(950	)		(924	)
	608			1,796			187			—			—			—			(246	)		(293	)		(479	)
	7,852			6,071			4,068			4,709			6,325			2,159			4,754			1,391			1,223
	30			33			22			57			53			8			33			15			13
	(5,145	)		(2,349	)		(3,260	)		(5,572	)		(8,784	)		(11,728	)		(2,514	)		(2,293	)		(1,255	)
	2,737			3,755			830			(806	)		(2,406	)		(9,561	)		2,273			(887	)		(19	)
	2,529			8,040			(584	)		(4,282	)		(2,637	)		(17,941	)		2,639			(3,226	)		(3,652	)
	1,630			7,658			(633	)		(5,750	)		(3,729	)		(18,692	)		1,547			(3,676	)		(3,819	)
	34,512			26,854			27,487			47,988			51,717			70,409			20,148			23,824			27,643
$	36,142		$	34,512		$	26,854		$	42,238		$	47,988		$	51,717		$	21,695		$	20,148		$	23,824
$	17		$	9		$	24		$	34		$	23		$	96		$	39		$	7		$	62

First American Funds Annual Report 2006      113

Statements of  Changes in Net Assets continued

											Minnesota
		Intermediate									Intermediate
		Tax Free Fund									Tax Free Fund
		Nine-Month									Nine-Month
		Period Ended			Year Ended			Year Ended			Period Ended			Year Ended			Year Ended
		6/30/06			9/30/05			9/30/04			6/30/06			9/30/05			9/30/04
OPERATIONS:
Investment income – net		$	20,171		$	27,443		$	29,117		$	6,441		$	9,362		$	10,291
Net realized gain (loss) on investments			881			1,758			3,586			874			1,370			796
Net realized gain on futures contracts			—			—			—			—			—			—
Net change in unrealized appreciation or depreciation of investments			(16,513	)		(13,264	)		(11,098	)		(5,474	)		(4,978	)		(3,173	)
Net change in unrealized appreciation or depreciation of futures contracts			—			—			—			—			—			—
Net increase in net assets resulting from operations			4,539			15,937			21,605			1,841			5,754			7,914
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income – net:
	Class A		(1,012	)		(1,423	)		(1,374	)		(843	)		(1,267	)		(1,251	)
	Class C		—			—			—			—			—			—
	Class Y		(19,466	)		(26,720	)		(27,568	)		(5,686	)		(8,038	)		(9,017	)
Net realized gain on investments:
	Class A		(85	)		(194	)		(38	)		(183	)		(114	)		(59	)
	Class C		—			—			—			—			—			—
	Class Y		(1,527	)		(3,485	)		(799	)		(1,195	)		(683	)		(444	)
Total distributions			(22,090	)		(31,822	)		(29,779	)		(7,907	)		(10,102	)		(10,771	)
CAPITAL SHARE TRANSACTIONS (note 4):
Class A:
	Proceeds from sales		3,630			7,869			15,334			2,992			5,677			13,308
	Reinvestment of distributions		824			1,256			1,138			738			1,026			940
	Payments for redemptions		(5,699	)		(8,912	)		(14,985	)		(8,720	)		(8,801	)		(9,940	)
Increase (decrease) in net assets from Class A transactions			(1,245	)		213			1,487			(4,990	)		(2,098	)		4,308
Class C:
	Proceeds from sales		—			—			—			—			—			—
	Reinvestment of distributions		—			—			—			—			—			—
	Payments for redemptions (note 3)		—			—			—			—			—			—
Increase (decrease) in net assets from Class C transactions			—			—			—			—			—			—
Class Y:
	Proceeds from sales		84,989			111,544			98,239			17,422			16,162			21,189
	Reinvestment of distributions		2,325			3,541			2,319			352			335			333
	Payments for redemptions		(115,490	)		(96,251	)		(152,459	)		(34,284	)		(32,427	)		(41,022	)
Increase (decrease) in net assets from Class Y transactions			(28,176	)		18,834			(51,901	)		(16,510	)		(15,930	)		(19,500	)
Increase (decrease) in net assets from capital share transactions			(29,421	)		19,047			(50,414	)		(21,500	)		(18,028	)		(15,192	)
Total increase (decrease) in net assets			(46,972	)		3,162			(58,588	)		(27,566	)		(22,376	)		(18,049	)
Net assets at beginning of period			675,799			672,637			731,225			229,577			251,953			270,002
Net assets at end of period		$	628,827		$	675,799		$	672,637		$	202,011		$	229,577		$	251,953
Undistributed net investment income at end of period		$	—		$	46		$	746		$	65		$	153		$	96

The accompanying notes are an integral part of the financial statements.

114      First American Funds Annual Report 2006

Minnesota									Missouri									Nebraska
Tax Free Fund									Tax Free Fund									Tax Free Fund
Nine-Month									Nine-Month									Nine-Month
Period Ended			Year Ended			Year Ended			Period Ended			Year Ended			Year Ended			Period Ended			Year Ended			Year Ended
6/30/06			9/30/05			9/30/04			6/30/06			9/30/05			9/30/04			6/30/06			9/30/05			9/30/04
$	5,120		$	6,796		$	6,945		$	5,183		$	6,983		$	7,270		$	1,243		$	1,528		$	1,416
	382			399			851			622			1,283			913			153			67			(5	)
	51			—			—			—			—			—			8			—			—
	(3,439	)		20			(1,049	)		(4,893	)		(2,964	)		(1,413	)		(1,126	)		(332	)		91
	—			—			—			—			—			—			20			—			—
	2,114			7,215			6,747			912			5,302			6,770			298			1,263			1,502
	(3,313	)		(4,455	)		(4,878	)		(811	)		(1,038	)		(1,014	)		(204	)		(239	)		(178	)
	(285	)		(361	)		(421	)		(5	)		(7	)		(8	)		(41	)		(65	)		(60	)
	(1,648	)		(1,939	)		(1,970	)		(4,402	)		(5,959	)		(6,239	)		(991	)		(1,277	)		(1,153	)
	(259	)		(552	)		(947	)		(217	)		(140	)		(75	)		(11	)		—			(17	)
	(25	)		(49	)		(93	)		(2	)		(1	)		(1	)		(3	)		—			(6	)
	(115	)		(210	)		(358	)		(1,080	)		(783	)		(437	)		(49	)		—			(99	)
	(5,645	)		(7,566	)		(8,667	)		(6,517	)		(7,928	)		(7,774	)		(1,299	)		(1,581	)		(1,513	)
	12,726			8,058			7,430			798			4,587			3,852			780			3,144			1,430
	2,905			4,005			5,356			524			621			564			117			113			120
	(19,024	)		(20,033	)		(22,419	)		(3,624	)		(1,714	)		(5,313	)		(952	)		(989	)		(1,516	)
	(3,393	)		(7,970	)		(9,633	)		(2,302	)		3,494			(897	)		(55	)		2,268			34
	1,999			933			854			25			2			2			158			411			547
	289			384			480			6			8			8			31			47			49
	(1,559	)		(1,841	)		(2,766	)		(1	)		(34	)		(70	)		(229	)		(736	)		(389	)
	729			(524	)		(1,432	)		30			(24	)		(60	)		(40	)		(278	)		207
	11,180			8,746			6,064			14,690			22,140			15,823			4,187			7,132			4,887
	158			211			239			279			279			269			75			93			63
	(7,977	)		(5,285	)		(10,775	)		(23,600	)		(21,183	)		(30,637	)		(4,541	)		(4,286	)		(3,318	)
	3,361			3,672			(4,472	)		(8,631	)		1,236			(14,545	)		(279	)		2,939			1,632
	697			(4,822	)		(15,537	)		(10,903	)		4,706			(15,502	)		(374	)		4,929			1,873
	(2,834	)		(5,173	)		(17,457	)		(16,508	)		2,080			(16,506	)		(1,375	)		4,611			1,862
	163,095			168,268			185,725			182,088			180,008			196,514			41,119			36,508			34,646
$	160,261		$	163,095		$	168,268		$	165,580		$	182,088		$	180,008		$	39,744		$	41,119		$	36,508
$	56		$	182		$	141		$	31		$	66		$	87		$	19		$	12		$	65

First American Funds Annual Report 2006      115

Statements of  Changes in Net Assets continued

											Oregon
		Ohio									Intermediate
		Tax Free Fund									Tax Free Fund
		Nine-Month									Nine-Month
		Period Ended			Year Ended			Year Ended			Period Ended			Year Ended			Year Ended
		6/30/06			9/30/05			9/30/04			6/30/06			9/30/05			9/30/04
OPERATIONS:
Investment income – net		$	1,194		$	1,552		$	1,477		$	3,714		$	5,287		$	5,538
Net realized gain (loss) on investments			36			58			115			255			590			530
Net realized gain on futures contracts			9			—			—			—			—			—
Net change in unrealized appreciation or depreciation of investments			(1,077	)		(282	)		120			(3,575	)		(3,269	)		(1,354	)
Net change in unrealized appreciation or depreciation of futures contracts			—			—			—			—			—			—
Net increase in net assets resulting from operations			162			1,328			1,712			394			2,608			4,714
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income – net:
	Class A		(24	)		(36	)		(38	)		(268	)		(317	)		(324	)
	Class C		(5	)		(4	)		(7	)		—			—			—
	Class Y		(1,178	)		(1,524	)		(1,393	)		(3,398	)		(4,973	)		(5,228	)
Net realized gain on investments:
	Class A		(1	)		(3	)		(8	)		(42	)		(30	)		(66	)
	Class C		—			—			(2	)		—			—			—
	Class Y		(40	)		(130	)		(358	)		(514	)		(481	)		(1,095	)
Total distributions			(1,248	)		(1,697	)		(1,806	)		(4,222	)		(5,801	)		(6,713	)
CAPITAL SHARE TRANSACTIONS (note 4):
Class A:
	Proceeds from sales		152			253			810			2,798			2,055			2,426
	Reinvestment of distributions		15			25			20			197			226			244
	Payments for redemptions		(291	)		(480	)		(469	)		(2,604	)		(1,426	)		(2,041	)
Increase (decrease) in net assets from Class A transactions			(124	)		(202	)		361			391			855			629
Class C:
	Proceeds from sales		80			110			112			—			—			—
	Reinvestment of distributions		2			1			2			—			—			—
	Payments for redemptions (note 3)		(42	)		(55	)		(206	)		—			—			—
Increase (decrease) in net assets from Class C transactions			40			56			(92	)		—			—			—
Class Y:
	Proceeds from sales		4,878			8,183			5,782			9,313			19,409			17,962
	Reinvestment of distributions		182			238			263			352			405			779
	Payments for redemptions		(4,500	)		(6,200	)		(6,189	)		(28,397	)		(21,076	)		(25,235	)
Increase (decrease) in net assets from Class Y transactions			560			2,221			(144	)		(18,732	)		(1,262	)		(6,494	)
Increase (decrease) in net assets from capital share transactions			476			2,075			125			(18,341	)		(407	)		(5,865	)
Total increase (decrease) in net assets			(610	)		1,706			31			(22,169	)		(3,600	)		(7,864	)
Net assets at beginning of period			42,266			40,560			40,529			142,969			146,569			154,433
Net assets at end of period		$	41,656		$	42,266		$	40,560		$	120,800		$	142,969		$	146,569
Undistributed net investment income at end of period		$	16		$	29		$	41		$	67		$	19		$	22

The accompanying notes are an integral part of the financial statements.

116      First American Funds Annual Report 2006

Short
Tax Free Fund									Tax Free Fund
Nine-Month									Nine-Month
Period Ended			Year Ended			Year Ended			Period Ended			Year Ended			Year Ended
6/30/06			9/30/05			9/30/04			6/30/06			9/30/05			9/30/04
$	5,998		$	10,162		$	11,631		$	16,568		$	20,609		$	21,168
	(611	)		(387	)		(238	)		2,831			1,085			4,298
	—			—			—			—			—			—
	(2,031	)		(6,969	)		(6,917	)		(11,649	)		(206	)		(4,320	)
	—			—			—			—			—			—
	3,356			2,806			4,476			7,750			21,488			21,146
	(79	)		(134	)		(170	)		(1,170	)		(1,623	)		(1,741	)
	—			—			—			(72	)		(105	)		(142	)
	(6,055	)		(10,086	)		(11,193	)		(15,430	)		(18,782	)		(19,659	)
	—			—			(44	)		(122	)		(379	)		(405	)
	—			—			—			(9	)		(28	)		(46	)
	—			—			(2,391	)		(1,492	)		(4,002	)		(4,411	)
	(6,134	)		(10,220	)		(13,798	)		(18,295	)		(24,919	)		(26,404	)
	1,175			2,110			3,312			4,203			4,259			8,839
	64			104			164			1,055			1,669			1,855
	(1,984	)		(4,320	)		(3,434	)		(6,155	)		(7,589	)		(12,976	)
	(745	)		(2,106	)		42			(897	)		(1,661	)		(2,282	)
	—			—			—			30			277			462
	—			—			—			74			126			181
	—			—			—			(554	)		(352	)		(2,823	)
	—			—			—			(450	)		51			(2,180	)
	32,598			67,779			163,207			80,167			69,526			44,937
	439			676			3,494			902			1,078			1,184
	(124,043	)		(150,873	)		(135,099	)		(51,758	)		(47,832	)		(85,368	)
	(91,006	)		(82,418	)		31,602			29,311			22,772			(39,247	)
	(91,751	)		(84,524	)		31,644			27,964			21,162			(43,709	)
	(94,529	)		(91,938	)		22,322			17,419			17,731			(48,967	)
	333,750			425,688			403,366			477,220			459,489			508,456
$	239,221		$	333,750		$	425,688		$	494,639		$	477,220		$	459,489
$	119		$	255		$	313		$	81		$	185		$	86

First American Funds Annual Report 2006      117

Financial Highlights  For a share outstanding throughout the indicated periods.

						Realized and
		Net Asset				Unrealized			Distributions			Distributions			Net Asset
		Value		Net		Gains			from Net			from Net			Value
		Beginning		Investment		(Losses) on			Investment			Realized			End of
		of Period		Income		Investments			Income			Gains			Period
Arizona Tax Free Fund
Class A
	2006 (1)	$	11.19	$	0.33	$	(0.25	)	$	(0.33	)	$	(0.09	)	$	10.85
	2005 (2)		11.42		0.46		(0.07	)		(0.49	)		(0.13	)		11.19
	2004 (2)		11.33		0.49		0.12			(0.47	)		(0.05	)		11.42
	2003 (2)		11.41		0.46		(0.06	)		(0.45	)		(0.03	)		11.33
	2002 (2)		10.99		0.48		0.44			(0.48	)		(0.02	)		11.41
	2001 (2)		10.45		0.55		0.53			(0.54	)		—			10.99
Class C
	2006 (1)	$	11.18	$	0.30	$	(0.25	)	$	(0.30	)	$	(0.09	)	$	10.84
	2005 (2)		11.41		0.42		(0.08	)		(0.44	)		(0.13	)		11.18
	2004 (2)		11.31		0.43		0.14			(0.42	)		(0.05	)		11.41
	2003 (2)		11.40		0.42		(0.08	)		(0.40	)		(0.03	)		11.31
	2002 (2)		10.98		0.44		0.44			(0.44	)		(0.02	)		11.40
	2001 (2)		10.44		0.53		0.51			(0.50	)		—			10.98
Class Y
	2006 (1)	$	11.19	$	0.35	$	(0.25	)	$	(0.35	)	$	(0.09	)	$	10.85
	2005 (2)		11.43		0.50		(0.09	)		(0.52	)		(0.13	)		11.19
	2004 (2)		11.33		0.50		0.15			(0.50	)		(0.05	)		11.43
	2003 (2)		11.41		0.48		(0.06	)		(0.47	)		(0.03	)		11.33
	2002 (2)		10.99		0.51		0.44			(0.51	)		(0.02	)		11.41
	2001 (2)		10.45		0.57		0.53			(0.56	)		—			10.99
California Intermediate Tax Free Fund
Class A
	2006 (1)	$	10.35	$	0.28	$	(0.20	)	$	(0.29	)	$	(0.03	)	$	10.11
	2005 (2)		10.55		0.39		(0.13	)		(0.39	)		(0.07	)		10.35
	2004 (2)		10.64		0.40		(0.05	)		(0.41	)		(0.03	)		10.55
	2003 (2)		10.80		0.41		(0.14	)		(0.41	)		(0.02	)		10.64
	2002 (2)		10.41		0.42		0.39			(0.42	)		—			10.80
	2001 (2)		10.02		0.44		0.39			(0.44	)		—			10.41
Class Y
	2006 (1)	$	10.37	$	0.30	$	(0.21	)	$	(0.30	)	$	(0.03	)	$	10.13
	2005 (2)		10.57		0.40		(0.13	)		(0.40	)		(0.07	)		10.37
	2004 (2)		10.66		0.41		(0.05	)		(0.42	)		(0.03	)		10.57
	2003 (2)		10.81		0.43		(0.14	)		(0.42	)		(0.02	)		10.66
	2002 (2)		10.43		0.43		0.38			(0.43	)		—			10.81
	2001 (2)		10.04		0.44		0.39			(0.44	)		—			10.43
California Tax Free Fund
Class A
	2006 (1)	$	11.24	$	0.33	$	(0.26	)	$	(0.33	)	$	(0.02	)	$	10.96
	2005 (2)		11.40		0.44		(0.05	)		(0.44	)		(0.11	)		11.24
	2004 (2)		11.40		0.46		0.08			(0.46	)		(0.08	)		11.40
	2003 (2)		11.63		0.47		(0.16	)		(0.47	)		(0.07	)		11.40
	2002 (2)		11.17		0.48		0.50			(0.47	)		(0.05	)		11.63
	2001 (2)		10.66		0.52		0.50			(0.51	)		—			11.17
Class C
	2006 (1)	$	11.25	$	0.30	$	(0.26	)	$	(0.30	)	$	(0.02	)	$	10.97
	2005 (2)		11.41		0.40		(0.05	)		(0.40	)		(0.11	)		11.25
	2004 (2)		11.41		0.41		0.09			(0.42	)		(0.08	)		11.41
	2003 (2)		11.64		0.43		(0.16	)		(0.43	)		(0.07	)		11.41
	2002 (2)		11.18		0.42		0.52			(0.43	)		(0.05	)		11.64
	2001 (2)		10.66		0.47		0.51			(0.46	)		—			11.18
Class Y
	2006 (1)	$	11.25	$	0.35	$	(0.26	)	$	(0.35	)	$	(0.02	)	$	10.97
	2005 (2)		11.40		0.47		(0.04	)		(0.47	)		(0.11	)		11.25
	2004 (2)		11.40		0.48		0.09			(0.49	)		(0.08	)		11.40
	2003 (2)		11.63		0.49		(0.15	)		(0.50	)		(0.07	)		11.40
	2002 (2)		11.17		0.49		0.52			(0.50	)		(0.05	)		11.63
	2001 (2)		10.66		0.54		0.50			(0.53	)		—			11.17

(1)	For the nine-month period October 1, 2005 to June 30, 2006. Effective in 2006, the fund’s fiscal year-end was changed from September 30 to June 30. All ratios for the period have been annualized, except total return and portfolio turnover.
(2)	For the period October 1 to September 30 in the year indicated.
(3)	Total return does not reflect sales charges. Total return would have been lower had certain expenses not been waived.

The accompanying notes are an integral part of the financial statements.

118      First American Funds Annual Report 2006

														Ratio of Net
											Ratio of			Investment
								Ratio of Net			Expenses to			Income to
					Ratio of			Investment			Average			Average Net
			Net Assets		Expenses to			Income			Net Assets			Assets			Portfolio
Total			End of		Average			to Average			(Excluding			(Excluding			Turnover
Return (3)			Period (000)		Net Assets			Net Assets			Waivers)			Waivers)			Rate
	0.73	%	$	9,041		0.75	%		4.02	%		1.47	%		3.30	%		47	%
	3.49			9,547		0.75			4.14			1.18			3.71			20
	5.50			9,008		0.75			4.16			1.12			3.79			21
	3.61			11,928		0.75			4.03			1.09			3.69			37
	8.69			12,413		0.75			4.40			1.37			3.78			30
	10.50			13,971		0.25			5.10			1.45			3.90			19
	0.42	%	$	1,358		1.15	%		3.62	%		2.22	%		2.55	%		47	%
	3.08			1,628		1.15			3.74			1.93			2.96			20
	5.17			1,588		1.15			3.76			1.87			3.04			21
	3.10			1,857		1.15			3.63			1.84			2.94			37
	8.28			2,910		1.15			4.00			2.12			3.03			30
	10.15			2,003		0.65			4.66			1.84			3.47			19
	0.92	%	$	15,614		0.50	%		4.27	%		1.22	%		3.55	%		47	%
	3.65			14,035		0.50			4.39			0.93			3.96			20
	5.85			9,520		0.50			4.42			0.87			4.05			21
	3.86			9,244		0.50			4.28			0.84			3.94			37
	8.95			10,656		0.50			4.64			1.12			4.02			30
	10.76			5,822		—			5.33			1.19			4.14			19
	0.78	%	$	3,441		0.85	%		3.73	%		1.22	%		3.36	%		21	%
	2.51			3,946		0.85			3.71			1.10			3.46			29
	3.36			3,381		0.85			3.78			1.06			3.57			20
	2.58			4,262		0.85			3.86			1.06			3.65			17
	8.01			4,870		0.85			4.01			1.14			3.72			23
	8.41			3,392		0.70			4.25			1.21			3.74			12
	0.88	%	$	51,726		0.70	%		3.89	%		0.97	%		3.62	%		21	%
	2.66			49,292		0.70			3.86			0.85			3.71			29
	3.51			46,953		0.70			3.93			0.81			3.82			20
	2.83			44,600		0.70			4.02			0.81			3.91			17
	8.05			45,212		0.70			4.16			0.89			3.97			23
	8.39			43,647		0.70			4.26			0.96			4.00			12
	0.63	%	$	10,783		0.75	%		3.99	%		1.34	%		3.40	%		24	%
	3.50			11,888		0.75			3.88			1.15			3.48			14
	4.93			9,513		0.75			4.03			1.09			3.69			16
	2.85			11,143		0.75			4.16			1.08			3.83			20
	9.10			12,954		0.75			4.26			1.31			3.70			33
	9.73			18,139		0.25			4.75			1.35			3.65			19
	0.33	%	$	3,592		1.15	%		3.60	%		2.09	%		2.66	%		24	%
	3.11			3,068		1.15			3.47			1.90			2.72			14
	4.52			1,294		1.15			3.65			1.84			2.96			16
	2.45			1,101		1.15			3.75			1.83			3.07			20
	8.69			1,115		1.15			3.86			2.06			2.95			33
	9.42			647		0.65			4.38			1.75			3.28			19
	0.82	%	$	21,767		0.50	%		4.24	%		1.09	%		3.65	%		24	%
	3.85			19,556		0.50			4.12			0.90			3.72			14
	5.19			16,047		0.50			4.29			0.84			3.95			16
	3.11			15,243		0.50			4.40			0.83			4.07			20
	9.36			11,853		0.50			4.51			1.06			3.95			33
	9.99			6,726		—			5.00			1.10			3.90			19

First American Funds Annual Report 2006      119

Financial Highlights  continued

						Realized and
		Net Asset				Unrealized			Distributions			Distributions			Distributions			Net Asset
		Value		Net		Gains			from Net			from Net			from			Value
		Beginning		Investment		(Losses) on			Investment			Realized			Return of			End of
		of Period		Income		Investments			Income			Gains			Capital			Period
Colorado Intermediate Tax Free Fund
Class A
	2006 (1)	$	10.74	$	0.32	$	(0.28	)	$	(0.32	)	$	(0.06	)	$	—		$	10.40
	2005 (2)		10.98		0.42		(0.19	)		(0.43	)		(0.04	)		—			10.74
	2004 (2)		11.08		0.45		(0.11	)		(0.44	)		—			—			10.98
	2003 (2)		11.12		0.41		(0.02	)		(0.43	)		—			—			11.08
	2002 (2)		10.79		0.47		0.32			(0.46	)		—			—			11.12
	2001 (2)		10.28		0.46		0.52			(0.47	)		—			—			10.79
Class Y
	2006 (1)	$	10.72	$	0.33	$	(0.28	)	$	(0.33	)	$	(0.06	)	$	—		$	10.38
	2005 (2)		10.95		0.43		(0.18	)		(0.44	)		(0.04	)		—			10.72
	2004 (2)		11.05		0.46		(0.11	)		(0.45	)		—			—			10.95
	2003 (2)		11.10		0.43		(0.03	)		(0.45	)		—			—			11.05
	2002 (2)		10.76		0.49		0.33			(0.48	)		—			—			11.10
	2001 (2)		10.26		0.48		0.49			(0.47	)		—			—			10.76
Colorado Tax Free Fund
Class A
	2006 (1)	$	11.30	$	0.35	$	(0.26	)	$	(0.34	)	$	(0.32	)	$	—		$	10.73
	2005 (2)		11.52		0.49		(0.11	)		(0.51	)		(0.09	)		—			11.30
	2004 (2)		11.57		0.51		0.02			(0.50	)		(0.08	)		—			11.52
	2003 (2)		11.65		0.50		(0.10	)		(0.48	)		—			—			11.57
	2002 (2)		11.09		0.48		0.56			(0.47	)		(0.01	)		—			11.65
	2001 (2)		10.42		0.54		0.66			(0.53	)		—			—			11.09
Class C
	2006 (1)	$	11.28	$	0.32	$	(0.27	)	$	(0.30	)	$	(0.32	)	$	—		$	10.71
	2005 (2)		11.50		0.43		(0.10	)		(0.46	)		(0.09	)		—			11.28
	2004 (2)		11.56		0.44		0.03			(0.45	)		(0.08	)		—			11.50
	2003 (2)		11.63		0.44		(0.08	)		(0.43	)		—			—			11.56
	2002 (2)		11.08		0.44		0.56			(0.44	)		(0.01	)		—			11.63
	2001 (2)		10.41		0.49		0.67			(0.49	)		—			—			11.08
Class Y
	2006 (1)	$	11.32	$	0.37	$	(0.26	)	$	(0.36	)	$	(0.32	)	$	—		$	10.75
	2005 (2)		11.53		0.51		(0.09	)		(0.54	)		(0.09	)		—			11.32
	2004 (2)		11.59		0.52		0.03			(0.53	)		(0.08	)		—			11.53
	2003 (2)		11.67		0.51		(0.09	)		(0.50	)		—			—			11.59
	2002 (2)		11.10		0.48		0.60			(0.50	)		(0.01	)		—			11.67
	2001 (2)		10.43		0.58		0.64			(0.55	)		—			—			11.10
Intermediate Tax Free Fund
Class A
	2006 (1)	$	10.92	$	0.32	$	(0.26	)	$	(0.32	)	$	(0.03	)	$	—		$	10.63
	2005 (2)		11.18		0.44		(0.19	)		(0.45	)		(0.06	)		—			10.92
	2004 (2)		11.30		0.44		(0.10	)		(0.45	)		(0.01	)		—			11.18
	2003 (2)		11.32		0.44		(0.03	)		(0.43	)		—			—			11.30
	2002 (2)		10.95		0.43		0.40			(0.43	)		—			(0.03	)		11.32
	2001 (2)		10.48		0.48		0.46			(0.47	)		—			—			10.95
Class Y
	2006 (1)	$	10.90	$	0.33	$	(0.26	)	$	(0.33	)	$	(0.03	)	$	—		$	10.61
	2005 (2)		11.16		0.46		(0.19	)		(0.47	)		(0.06	)		—			10.90
	2004 (2)		11.28		0.46		(0.11	)		(0.46	)		(0.01	)		—			11.16
	2003 (2)		11.30		0.46		(0.03	)		(0.45	)		—			—			11.28
	2002 (2)		10.93		0.44		0.40			(0.44	)		—			(0.03	)		11.30
	2001 (2)		10.46		0.48		0.46			(0.47	)		—			—			10.93

(1)	For the nine-month period October 1, 2005 to June 30, 2006. Effective in 2006, the fund’s fiscal year-end was changed from September 30 to June 30. All ratios for the period have been annualized, except total return and portfolio turnover.
(2)	For the period October 1 to September 30 in the year indicated.
(3)	Total return does not reflect sales charges. Total return would have been lower had certain expenses not been waived.

The accompanying notes are an integral part of the financial statements.

120      First American Funds Annual Report 2006

														Ratio of Net
											Ratio of			Investment
								Ratio of Net			Expenses to			Income to
					Ratio of			Investment			Average			Average Net
			Net Assets		Expenses to			Income			Net Assets			Assets			Portfolio
Total			End of		Average			to Average			(Excluding			(Excluding			Turnover
Return (3)			Period (000)		Net Assets			Net Assets			Waivers)			Waivers)			Rate
	0.37	%	$	9,577		0.85	%		4.02	%		1.27	%		3.60	%		17	%
	2.11			13,426		0.85			3.85			1.10			3.60			20
	3.12			13,969		0.85			4.00			1.06			3.79			4
	3.64			22,555		0.85			3.79			1.06			3.58			14
	7.56			15,244		0.85			4.48			1.11			4.22			15
	9.75			8,320		0.70			4.55			1.34			3.91			24
	0.49	%	$	32,661		0.70	%		4.18	%		1.02	%		3.86	%		17	%
	2.36			34,562		0.70			4.01			0.85			3.86			20
	3.29			37,748		0.70			4.15			0.81			4.04			4
	3.71			47,854		0.70			3.94			0.81			3.83			14
	7.83			48,398		0.70			4.60			0.86			4.44			15
	9.67			47,907		0.70			4.58			1.09			4.19			24
	0.77	%	$	8,507		0.75	%		4.30	%		1.52	%		3.53	%		35	%
	3.36			8,362		0.75			4.23			1.18			3.80			30
	4.71			10,598		0.75			4.25			1.09			3.91			12
	3.53			13,843		0.75			4.23			1.07			3.91			14
	9.72			19,633		0.75			4.32			1.30			3.77			22
	11.78			20,550		0.25			5.03			1.42			3.86			23
	0.47	%	$	3,007		1.15	%		3.90	%		2.27	%		2.78	%		35	%
	2.95			3,423		1.15			3.83			1.93			3.05			30
	4.21			3,787		1.15			3.85			1.84			3.16			12
	3.23			4,284		1.15			3.83			1.82			3.16			14
	9.23			3,705		1.15			3.95			2.05			3.05			22
	11.41			1,698		0.65			4.61			1.82			3.44			23
	0.96	%	$	10,181		0.50	%		4.58	%		1.27	%		3.81	%		35	%
	3.70			8,363		0.50			4.48			0.93			4.05			30
	4.87			9,439		0.50			4.51			0.84			4.17			12
	3.78			9,516		0.50			4.49			0.82			4.17			14
	10.07			9,244		0.50			4.59			1.05			4.04			22
	12.02			1,923		—			5.32			1.18			4.14			23
	0.56	%	$	32,521		0.85	%		3.95	%		1.05	%		3.75	%		15	%
	2.31			34,658		0.85			3.98			1.05			3.78			15
	3.06			35,276		0.85			3.98			1.05			3.78			10
	3.74			34,231		0.85			3.91			1.05			3.71			15
	7.78			29,838		0.85			3.87			1.03			3.69			28
	9.19			23,236		0.70			4.43			1.13			4.00			12
	0.67	%	$	596,306		0.70	%		4.10	%		0.80	%		4.00	%		15	%
	2.47			641,141		0.70			4.13			0.80			4.03			15
	3.22			637,361		0.70			4.13			0.80			4.03			10
	3.90			696,994		0.70			4.05			0.80			3.95			15
	7.95			485,592		0.70			4.04			0.78			3.96			28
	9.21			458,743		0.70			4.43			0.87			4.26			12

First American Funds Annual Report 2006      121

Financial Highlights  continued

						Realized and
		Net Asset				Unrealized			Distributions			Distributions			Net Asset
		Value		Net		Gains			from Net			from Net			Value
		Beginning		Investment		(Losses) on			Investment			Realized			End of
		of Period		Income		Investments			Income			Gains			Period
Minnesota Intermediate Tax Free Fund
Class A
	2006 (1)	$	10.16	$	0.29	$	(0.22	)	$	(0.29	)	$	(0.06	)	$	9.88
	2005 (2)		10.34		0.39		(0.15	)		(0.39	)		(0.03	)		10.16
	2004 (2)		10.44		0.39		(0.08	)		(0.39	)		(0.02	)		10.34
	2003 (2)		10.51		0.40		(0.04	)		(0.41	)		(0.02	)		10.44
	2002 (2)		10.21		0.43		0.29			(0.42	)		—			10.51
	2001 (2)		9.80		0.44		0.41			(0.44	)		—			10.21
Class Y
	2006 (1)	$	10.11	$	0.30	$	(0.22	)	$	(0.30	)	$	(0.06	)	$	9.83
	2005 (2)		10.29		0.40		(0.15	)		(0.40	)		(0.03	)		10.11
	2004 (2)		10.40		0.41		(0.10	)		(0.40	)		(0.02	)		10.29
	2003 (2)		10.46		0.42		(0.03	)		(0.43	)		(0.02	)		10.40
	2002 (2)		10.17		0.45		0.27			(0.43	)		—			10.46
	2001 (2)		9.76		0.44		0.41			(0.44	)		—			10.17
Minnesota Tax Free Fund
Class A
	2006 (1)	$	11.21	$	0.35	$	(0.21	)	$	(0.35	)	$	(0.03	)	$	10.97
	2005 (2)		11.23		0.45		0.03			(0.45	)		(0.05	)		11.21
	2004 (2)		11.34		0.44		(0.01	)		(0.45	)		(0.09	)		11.23
	2003 (2)		11.39		0.48		(0.05	)		(0.45	)		(0.03	)		11.34
	2002 (2)		11.06		0.47		0.34			(0.47	)		(0.01	)		11.39
	2001 (2)		10.64		0.53		0.43			(0.54	)		—			11.06
Class C
	2006 (1)	$	11.17	$	0.31	$	(0.20	)	$	(0.32	)	$	(0.03	)	$	10.93
	2005 (2)		11.19		0.41		0.03			(0.41	)		(0.05	)		11.17
	2004 (2)		11.31		0.39		(0.01	)		(0.41	)		(0.09	)		11.19
	2003 (2)		11.36		0.43		(0.04	)		(0.41	)		(0.03	)		11.31
	2002 (2)		11.04		0.43		0.33			(0.43	)		(0.01	)		11.36
	2001 (2)		10.62		0.49		0.43			(0.50	)		—			11.04
Class Y
	2006 (1)	$	11.20	$	0.36	$	(0.20	)	$	(0.37	)	$	(0.03	)	$	10.96
	2005 (2)		11.22		0.48		0.03			(0.48	)		(0.05	)		11.20
	2004 (2)		11.33		0.47		(0.01	)		(0.48	)		(0.09	)		11.22
	2003 (2)		11.38		0.51		(0.05	)		(0.48	)		(0.03	)		11.33
	2002 (2)		11.05		0.49		0.35			(0.50	)		(0.01	)		11.38
	2001 (2)		10.63		0.55		0.44			(0.57	)		—			11.05
Missouri Tax Free Fund
Class A
	2006 (1)	$	12.14	$	0.34	$	(0.29	)	$	(0.34	)	$	(0.09	)	$	11.76
	2005 (2)		12.32		0.45		(0.12	)		(0.45	)		(0.06	)		12.14
	2004 (2)		12.37		0.45		(0.02	)		(0.45	)		(0.03	)		12.32
	2003 (2)		12.47		0.45		(0.04	)		(0.45	)		(0.06	)		12.37
	2002 (2)		12.05		0.46		0.47			(0.47	)		(0.04	)		12.47
	2001 (3)(4)		11.54		0.46		0.50			(0.44	)		(0.01	)		12.05
Class C
	2006 (1)	$	12.12	$	0.30	$	(0.30	)	$	(0.30	)	$	(0.09	)	$	11.73
	2005 (2)		12.29		0.40		(0.11	)		(0.40	)		(0.06	)		12.12
	2004 (2)		12.35		0.40		(0.03	)		(0.40	)		(0.03	)		12.29
	2003 (2)		12.46		0.40		(0.04	)		(0.41	)		(0.06	)		12.35
	2002 (2)		12.05		0.41		0.48			(0.44	)		(0.04	)		12.46
	2001 (5)		12.03		—		0.02			—			—			12.05
Class Y
	2006 (1)	$	12.15	$	0.36	$	(0.30	)	$	(0.36	)	$	(0.09	)	$	11.76
	2005 (2)		12.32		0.48		(0.11	)		(0.48	)		(0.06	)		12.15
	2004 (2)		12.38		0.48		(0.03	)		(0.48	)		(0.03	)		12.32
	2003 (2)		12.48		0.49		(0.05	)		(0.48	)		(0.06	)		12.38
	2002 (2)		12.06		0.48		0.48			(0.50	)		(0.04	)		12.48
	2001 (3)(4)		11.55		0.49		0.50			(0.47	)		(0.01	)		12.06

(1)	For the nine-month period October 1, 2005 to June 30, 2006. Effective in 2006, the fund’s fiscal year-end was changed from September 30 to June 30. All ratios for the period have been annualized, except total return and portfolio turnover.
(2)	For the period October 1 to September 30 in the year indicated.
(3)	The financial highlights for the Missouri Tax Free Fund prior to September 24, 2001 are those of the Firstar Missouri Tax-Exempt Bond Fund Class A shares and Class I shares. The assets of the Firstar Missouri Tax-Exempt Bond Fund were acquired by Missouri Tax Free Fund on September 24, 2001. In connection with such acquisition, Class A shares and Class I shares of the Firstar Missouri Tax-Exempt Bond Fund were exchanged for Class A shares and Class Y shares of Missouri Tax Free Fund, respectively.
(4)	For the period November 1, 2000 to September 30, 2001. Effective in 2001, the fund’s fiscal year-end was changed from October 31 to September 30. All ratios for the period have been annualized, except total return and portfolio turnover.
(5)	For the period from September 24, 2001, when the class of shares was first offered, to September 30, 2001. All ratios for the period have been annualized, except total return and portfolio turnover.
(6)	Total return does not reflect sales charges. Total return would have been lower had certain expenses not been waived.

The accompanying notes are an integral part of the financial statements.

122      First American Funds Annual Report 2006

														Ratio of Net
											Ratio of			Investment
								Ratio of Net			Expenses to			Income to
					Ratio of			Investment			Average			Average Net
			Net Assets		Expenses to			Income			Net Assets			Assets			Portfolio
Total			End of		Average			to Average			(Excluding			(Excluding			Turnover
Return (6)			Period (000)		Net Assets			Net Assets			Waivers)			Waivers)			Rate
	0.74	%	$	26,526		0.85	%		3.85	%		1.08	%		3.62	%		11	%
	2.33			32,326		0.85			3.78			1.06			3.57			15
	3.03			35,047		0.85			3.77			1.05			3.57			8
	3.55			31,044		0.85			3.85			1.05			3.65			15
	7.23			19,914		0.85			4.27			1.03			4.09			15
	8.85			12,408		0.70			4.38			1.13			3.95			13
	0.85	%	$	175,485		0.70	%		4.00	%		0.83	%		3.87	%		11	%
	2.50			197,251		0.70			3.93			0.81			3.82			15
	3.10			216,906		0.70			3.92			0.80			3.82			8
	3.82			238,958		0.70			4.01			0.80			3.91			15
	7.31			251,597		0.70			4.41			0.78			4.33			15
	8.89			255,939		0.70			4.38			0.88			4.20			13
	1.28	%	$	101,142		0.95	%		4.15	%		1.10	%		4.00	%		11	%
	4.42			106,783		0.95			4.04			1.06			3.93			16
	3.94			114,981		0.95			3.87			1.05			3.77			25
	3.90			125,916		0.95			4.25			1.06			4.14			23
	7.23			135,607		0.95			4.22			1.09			4.08			26
	9.24			107,260		0.95			4.84			1.18			4.61			15
	0.98	%	$	10,359		1.35	%		3.75	%		1.85	%		3.25	%		11	%
	4.02			9,841		1.35			3.64			1.81			3.18			16
	3.45			10,387		1.35			3.47			1.80			3.02			25
	3.51			11,951		1.35			3.85			1.81			3.39			23
	7.10			11,703		1.35			3.80			1.84			3.31			26
	8.88			6,382		1.35			4.39			1.58			4.16			15
	1.47	%	$	48,760		0.70	%		4.40	%		0.85	%		4.25	%		11	%
	4.69			46,471		0.70			4.29			0.81			4.18			16
	4.20			42,900		0.70			4.12			0.80			4.02			25
	4.16			47,858		0.70			4.50			0.81			4.39			23
	7.84			54,638		0.70			4.47			0.84			4.33			26
	9.52			49,078		0.70			5.09			0.93			4.86			15
	0.38	%	$	26,972		0.95	%		3.74	%		1.09	%		3.60	%		20	%
	2.74			30,188		0.95			3.65			1.06			3.54			19
	3.60			27,114		0.95			3.68			1.05			3.58			15
	3.45			28,141		0.95			3.69			1.06			3.58			20
	7.99			26,496		0.95			3.81			1.06			3.70			25
	8.44			22,573		0.94			4.23			1.00			4.17			9
	0.00	%	$	214		1.35	%		3.34	%		1.84	%		2.85	%		20	%
	2.42			190		1.35			3.25			1.81			2.79			19
	3.11			218		1.35			3.28			1.80			2.83			15
	3.05			279		1.35			3.30			1.81			2.84			20
	7.58			21		1.35			3.28			1.81			2.82			25
	0.17			—		—			—			—			—			9
	0.49	%	$	138,394		0.70	%		3.99	%		0.84	%		3.85	%		20	%
	3.08			151,710		0.70			3.90			0.81			3.79			19
	3.77			152,676		0.70			3.93			0.80			3.83			15
	3.71			168,094		0.70			3.94			0.81			3.83			20
	8.25			142,344		0.70			4.06			0.81			3.95			25
	8.67			129,715		0.69			4.48			0.75			4.42			9

First American Funds Annual Report 2006      123

Financial Highlights  continued

						Realized and
		Net Asset				Unrealized			Distributions			Distributions			Net Asset
		Value		Net		Gains			from Net			from Net			Value
		Beginning		Investment		(Losses) on			Investment			Realized			End of
		of Period		Income		Investments			Income			Gains			Period
Nebraska Tax Free Fund
Class A
	2006 (1)	$	10.58	$	0.31	$	(0.24	)	$	(0.30	)	$	(0.02	)	$	10.33
	2005 (2)		10.66		0.39		(0.05	)		(0.42	)		—			10.58
	2004 (2)		10.66		0.41		0.03			(0.40	)		(0.04	)		10.66
	2003 (2)		10.70		0.41		(0.04	)		(0.40	)		(0.01	)		10.66
	2002 (2)		10.20		0.41		0.49			(0.40	)		—			10.70
	2001 (3)		10.00		0.24		0.20			(0.24	)		—			10.20
Class C
	2006 (1)	$	10.50	$	0.27	$	(0.22	)	$	(0.27	)	$	(0.02	)	$	10.26
	2005 (2)		10.58		0.35		(0.06	)		(0.37	)		—			10.50
	2004 (2)		10.58		0.35		0.04			(0.35	)		(0.04	)		10.58
	2003 (2)		10.63		0.36		(0.04	)		(0.36	)		(0.01	)		10.58
	2002 (2)		10.14		0.36		0.50			(0.37	)		—			10.63
	2001 (3)		10.00		0.20		0.17			(0.23	)		—			10.14
Class Y
	2006 (1)	$	10.58	$	0.32	$	(0.23	)	$	(0.32	)	$	(0.02	)	$	10.33
	2005 (2)		10.66		0.43		(0.07	)		(0.44	)		—			10.58
	2004 (2)		10.65		0.43		0.04			(0.42	)		(0.04	)		10.66
	2003 (2)		10.69		0.43		(0.03	)		(0.43	)		(0.01	)		10.65
	2002 (2)		10.19		0.43		0.50			(0.43	)		—			10.69
	2001 (3)		10.00		0.26		0.19			(0.26	)		—			10.19
Ohio Tax Free Fund
Class A
	2006 (1)	$	10.42	$	0.29	$	(0.25	)	$	(0.28	)	$	(0.01	)	$	10.17
	2005 (2)		10.52		0.36		(0.06	)		(0.36	)		(0.04	)		10.42
	2004 (2)		10.54		0.36		0.07			(0.35	)		(0.10	)		10.52
	2003 (2)		10.58		0.36		(0.03	)		(0.37	)		—			10.54
	2002 (4)		10.00		0.15		0.59			(0.16	)		—			10.58
Class C
	2006 (1)	$	10.32	$	0.25	$	(0.26	)	$	(0.25	)	$	(0.01	)	$	10.05
	2005 (2)		10.41		0.32		(0.05	)		(0.32	)		(0.04	)		10.32
	2004 (2)		10.44		0.29		0.09			(0.31	)		(0.10	)		10.41
	2003 (2)		10.57		0.32		(0.12	)		(0.33	)		—			10.44
	2002 (4)		10.00		0.13		0.58			(0.14	)		—			10.57
Class Y
	2006 (1)	$	10.43	$	0.30	$	(0.25	)	$	(0.30	)	$	(0.01	)	$	10.17
	2005 (2)		10.53		0.38		(0.05	)		(0.39	)		(0.04	)		10.43
	2004 (2)		10.55		0.38		0.07			(0.37	)		(0.10	)		10.53
	2003 (2)		10.57		0.39		(0.02	)		(0.39	)		—			10.55
	2002 (4)		10.00		0.16		0.58			(0.17	)		—			10.57
Oregon Intermediate Tax Free Fund
Class A
	2006 (1)	$	10.07	$	0.27	$	(0.25	)	$	(0.27	)	$	(0.04	)	$	9.78
	2005 (2)		10.30		0.36		(0.19	)		(0.36	)		(0.04	)		10.07
	2004 (2)		10.43		0.37		(0.05	)		(0.37	)		(0.08	)		10.30
	2003 (2)		10.49		0.37		(0.03	)		(0.38	)		(0.02	)		10.43
	2002 (2)		10.18		0.40		0.31			(0.40	)		—			10.49
	2001 (2)		9.74		0.43		0.44			(0.43	)		—			10.18
Class Y
	2006 (1)	$	10.07	$	0.28	$	(0.25	)	$	(0.28	)	$	(0.04	)	$	9.78
	2005 (2)		10.30		0.38		(0.19	)		(0.38	)		(0.04	)		10.07
	2004 (2)		10.43		0.39		(0.05	)		(0.39	)		(0.08	)		10.30
	2003 (2)		10.49		0.40		(0.05	)		(0.39	)		(0.02	)		10.43
	2002 (2)		10.18		0.42		0.31			(0.42	)		—			10.49
	2001 (2)		9.74		0.43		0.44			(0.43	)		—			10.18

(1)	For the nine-month period October 1, 2005 to June 30, 2006. Effective in 2006, the fund’s fiscal year-end was changed from September 30 to June 30. All ratios for the period have been annualized, except total return and portfolio turnover.
(2)	For the period October 1 to September 30 in the year indicated.
(3)	For the period from February 28, 2001, when the class of shares was first offered, to September 30, 2001. All ratios for the period have been annualized, except total return and portfolio turnover.
(4)	For the period from April 30, 2002, when the class of shares was first offered, to September 30, 2002. All ratios for the period have been annualized, except total return and portfolio turnover.
(5)	Total return does not reflect sales charges. Total return would have been lower had certain expenses not been waived.

The accompanying notes are an integral part of the financial statements.

124      First American Funds Annual Report 2006

														Ratio of Net
											Ratio of			Investment
								Ratio of Net			Expenses to			Income to
					Ratio of			Investment			Average			Average Net
			Net Assets		Expenses to			Income			Net Assets			Assets			Portfolio
Total			End of		Average			to Average			(Excluding			(Excluding			Turnover
Return (5)			Period (000)		Net Assets			Net Assets			Waivers)			Waivers)			Rate
	0.65	%	$	6,910		0.75	%		3.89	%		1.30	%		3.34	%		35	%
	3.20			7,136		0.75			3.78			1.12			3.41			21
	4.18			4,925		0.75			3.82			1.08			3.49			17
	3.57			4,869		0.75			3.87			1.07			3.55			15
	9.09			4,904		0.75			3.98			1.29			3.44			35
	4.48			5,090		0.55			4.12			1.38			3.29			30
	0.46	%	$	1,487		1.15	%		3.49	%		2.05	%		2.59	%		35	%
	2.81			1,565		1.15			3.38			1.87			2.66			21
	3.80			1,861		1.15			3.42			1.83			2.74			17
	3.10			1,657		1.15			3.46			1.82			2.79			15
	8.66			982		1.15			3.57			2.04			2.68			35
	3.71			226		0.95			3.73			1.75			2.93			30
	0.85	%	$	31,347		0.50	%		4.14	%		1.05	%		3.59	%		35	%
	3.45			32,418		0.50			4.03			0.87			3.66			21
	4.54			29,722		0.50			4.07			0.83			3.74			17
	3.82			28,120		0.50			4.11			0.82			3.79			15
	9.37			27,348		0.50			4.22			1.04			3.68			35
	4.51			22,443		0.30			4.36			1.13			3.53			30
	0.40	%	$	841		0.75	%		3.60	%		1.28	%		3.07	%		11	%
	2.86			988		0.75			3.41			1.11			3.05			13
	4.16			1,200		0.75			3.43			1.08			3.10			19
	3.22			849		0.75			3.52			1.09			3.18			22
	7.42			453		0.75			3.25			1.23			2.77			3
	(0.08	)%	$	209		1.15	%		3.22	%		2.03	%		2.34	%		11	%
	2.58			174		1.15			3.01			1.86			2.30			13
	3.69			120		1.15			3.03			1.83			2.35			19
	1.95			215		1.15			3.08			1.84			2.39			22
	7.13			1		1.15			3.01			1.98			2.18			3
	0.49	%	$	40,606		0.50	%		3.85	%		1.03	%		3.32	%		11	%
	3.12			41,104		0.50			3.66			0.86			3.30			13
	4.42			39,240		0.50			3.68			0.82			3.36			19
	3.65			39,465		0.50			3.78			0.84			3.44			22
	7.41			38,083		0.50			3.74			0.98			3.26			3
	0.16	%	$	9,456		0.85	%		3.62	%		1.11	%		3.36	%		13	%
	1.67			9,356		0.85			3.56			1.06			3.35			20
	3.20			8,700		0.85			3.62			1.05			3.42			12
	3.31			8,189		0.85			3.67			1.05			3.47			17
	7.23			7,030		0.85			3.95			1.05			3.75			18
	9.08			5,477		0.70			4.27			1.13			3.84			20
	0.28	%	$	111,344		0.70	%		3.77	%		0.86	%		3.61	%		13	%
	1.82			133,613		0.70			3.71			0.81			3.60			20
	3.35			137,869		0.70			3.77			0.80			3.67			12
	3.46			146,244		0.70			3.82			0.80			3.72			17
	7.39			151,928		0.70			4.10			0.80			4.00			18
	9.08			153,951		0.70			4.28			0.89			4.09			20

First American Funds Annual Report 2006      125

Financial Highlights  continued

						Realized and
		Net Asset				Unrealized			Distributions			Distributions			Net Asset
		Value		Net		Gains			from Net			from Net			Value
		Beginning		Investment		(Losses) on			Investment			Realized			End of
		of Period		Income		Investments			Income			Gains			Period
Short Tax Free Fund
Class A
	2006 (1)	$	9.78	$	0.19	$	(0.09	)	$	(0.20	)	$	—		$	9.68
	2005 (2)		9.96		0.24		(0.17	)		(0.25	)		—			9.78
	2004 (2)		10.18		0.26		(0.17	)		(0.25	)		(0.06	)		9.96
	2003 (3)		10.00		0.26		0.19			(0.27	)		—			10.18
Class Y
	2006 (1)	$	9.78	$	0.21	$	(0.10	)	$	(0.21	)	$	—		$	9.68
	2005 (2)		9.96		0.26		(0.18	)		(0.26	)		—			9.78
	2004 (2)		10.18		0.27		(0.17	)		(0.26	)		(0.06	)		9.96
	2003 (3)		10.00		0.28		0.18			(0.28	)		—			10.18
Tax Free Fund
Class A
	2006 (1)	$	11.10	$	0.35	$	(0.20	)	$	(0.35	)	$	(0.04	)	$	10.86
	2005 (2)		11.18		0.47		0.03			(0.47	)		(0.11	)		11.10
	2004 (2)		11.28		0.47		0.02			(0.48	)		(0.11	)		11.18
	2003 (2)		11.44		0.47		(0.03	)		(0.47	)		(0.13	)		11.28
	2002 (2)		10.99		0.47		0.44			(0.46	)		—			11.44
	2001 (4)(5)		10.53		0.42		0.43			(0.39	)		—			10.99
Class C
	2006 (1)	$	11.05	$	0.32	$	(0.20	)	$	(0.32	)	$	(0.04	)	$	10.81
	2005 (2)		11.13		0.42		0.03			(0.42	)		(0.11	)		11.05
	2004 (2)		11.24		0.43		—			(0.43	)		(0.11	)		11.13
	2003 (2)		11.40		0.42		(0.02	)		(0.43	)		(0.13	)		11.24
	2002 (2)		10.96		0.42		0.45			(0.43	)		—			11.40
	2001 (6)		10.93		0.01		0.02			—			—			10.96
Class Y
	2006 (1)	$	11.11	$	0.37	$	(0.20	)	$	(0.37	)	$	(0.04	)	$	10.87
	2005 (2)		11.19		0.50		0.02			(0.49	)		(0.11	)		11.11
	2004 (2)		11.29		0.50		0.01			(0.50	)		(0.11	)		11.19
	2003 (2)		11.45		0.50		(0.03	)		(0.50	)		(0.13	)		11.29
	2002 (2)		11.00		0.49		0.45			(0.49	)		—			11.45
	2001 (4)(5)		10.53		0.44		0.45			(0.42	)		—			11.00

(1)	For the nine-month period October 1, 2005 to June 30, 2006. Effective in 2006, the fund’s fiscal year-end was changed from September 30 to June 30. All ratios for the period have been annualized, except total return and portfolio turnover.
(2)	For the period October 1 to September 30 in the year indicated.
(3)	For the period from October 25, 2002, when the class of shares was first offered, to September 30, 2003. All ratios for the period have been annualized, except total return and portfolio turnover.
(4)	The financial highlights for the Tax Free Fund prior to September 24, 2001 are those of the Firstar National Municipal Bond Fund Class A shares and Class I shares. The assets of the Firstar National Municipal Bond Fund were acquired by Tax Free Fund on September 24, 2001. In connection with such acquisition, Class A shares and Class I shares of the Firstar National Municipal Bond Fund were exchanged for Class A shares and Class Y shares of Tax Free Fund, respectively. Historical per-share amounts have been adjusted to reflect the conversion ratios utilized for the merger of the Tax Free Fund and the Firstar National Municipal Bond Fund.
(5)	For the period November 1, 2000 to September 30, 2001. Effective in 2001, the fund’s fiscal year-end was changed from October 31 to September 30. All ratios for the period have been annualized, except total return and portfolio turnover.
(6)	For the period from September 24, 2001, when the class of shares was first offered, to September 30, 2001. All ratios for the period have been annualized, except total return and portfolio turnover.
(7)	Total return does not reflect sales charges. Total return would have been lower had certain expenses not been waived.

The accompanying notes are an integral part of the financial statements.

126      First American Funds Annual Report 2006

														Ratio of Net
											Ratio of			Investment
								Ratio of Net			Expenses to			Income to
					Ratio of			Investment			Average			Average Net
			Net Assets		Expenses to			Income			Net Assets			Assets			Portfolio
Total			End of		Average			to Average			(Excluding			(Excluding			Turnover
Return (7)			Period (000)		Net Assets			Net Assets			Waivers)			Waivers)			Rate
	1.02	%	$	3,321		0.75	%		2.65	%		1.08	%		2.32	%		22	%
	0.67			4,103		0.75			2.46			1.06			2.15			37
	0.90			6,329		0.75			2.55			1.05			2.25			30
	4.54			6,448		0.75			2.67			1.05			2.37			54
	1.13	%	$	235,900		0.60	%		2.80	%		0.83	%		2.57	%		22	%
	0.83			329,647		0.60			2.62			0.81			2.41			37
	1.05			419,359		0.60			2.70			0.80			2.50			30
	4.66			396,918		0.60			3.00			0.80			2.80			54
	1.37	%	$	36,519		0.95	%		4.28	%		1.06	%		4.17	%		13	%
	4.51			38,205		0.95			4.20			1.06			4.09			8
	4.45			40,156		0.95			4.18			1.05			4.08			23
	4.06			42,942		0.95			4.21			1.05			4.11			23
	8.56			43,708		0.95			4.20			1.02			4.13			39
	8.22			48,769		1.16			4.27			1.18			4.25			3
	1.06	%	$	2,210		1.35	%		3.87	%		1.81	%		3.41	%		13	%
	4.13			2,712		1.35			3.80			1.81			3.34			8
	3.92			2,682		1.35			3.77			1.80			3.32			23
	3.67			4,880		1.35			3.81			1.80			3.36			23
	8.14			6,199		1.35			3.82			1.77			3.40			39
	0.27			4,494		1.04			5.61			1.04			5.61			3
	1.57	%	$	455,910		0.70	%		4.53	%		0.81	%		4.42	%		13	%
	4.77			436,303		0.70			4.45			0.81			4.34			8
	4.71			416,651		0.70			4.43			0.80			4.33			23
	4.31			460,634		0.70			4.46			0.80			4.36			23
	8.84			497,140		0.70			4.47			0.77			4.40			39
	8.59			501,361		0.73			4.32			0.74			4.31			3

First American Funds Annual Report 2006      127

Notes to  Financial Statements June 30, 2006, all dollars are rounded to thousands (000)

1 > Organization

The Arizona Tax Free Fund, California Intermediate Tax Free Fund, California Tax Free Fund, Colorado Intermediate Tax Free Fund, Colorado Tax Free Fund, Intermediate Tax Free Fund, Minnesota Intermediate Tax Free Fund, Minnesota Tax Free Fund, Missouri Tax Free Fund, Nebraska Tax Free Fund, Ohio Tax Free Fund, Oregon Intermediate Tax Free Fund, Short Tax Free Fund, and Tax Free Fund (each a “fund” and collectively, the “funds”) are mutual funds offered by First American Investment Funds, Inc. (“FAIF”), which is a member of the First American Family of Funds. As of June 30, 2006, FAIF offered 38 funds, including the funds listed above. FAIF is registered under the Investment Company Act of 1940, as amended, as an open-end investment management company. FAIF’s articles of incorporation permit the board of directors to create additional funds in the future. The Intermediate Tax Free Fund, Short Tax Free Fund, and Tax Free Fund are each diversified open-end management investment companies. The Arizona Tax Free Fund, California Intermediate Tax Free Fund, California Tax Free Fund, Colorado Intermediate Tax Free Fund, Colorado Tax Free Fund, Minnesota Intermediate Tax Free Fund, Minnesota Tax Free Fund, Missouri Tax Free Fund, Nebraska Tax Free Fund, Ohio Tax Free Fund, and Oregon Intermediate Tax Free Fund are each non-diversified open-end management investment companies. Non-diversified funds may invest a large component of their net assets in securities of relatively few issuers.

The funds offer Class A and Class Y shares. The Arizona Tax Free Fund, California Tax Free Fund, Colorado Tax Free Fund, Minnesota Tax Free Fund, Missouri Tax Free Fund, Nebraska Tax Free Fund, Ohio Tax Free Fund, and Tax Free Fund also offer Class C shares. Class A shares of Arizona Tax Free Fund, California Tax Free Fund, Colorado Tax Free Fund, Minnesota Tax Free Fund, Missouri Tax Free Fund, Nebraska Tax Free Fund, Ohio Tax Free Fund, and Tax Free Fund are sold with a maximum front-end sales charge of 4.25%. Class A shares of California Intermediate Tax Free Fund, Colorado Intermediate Tax Free Fund, Intermediate Tax Free Fund, Minnesota Intermediate Tax Free Fund, Oregon Intermediate Tax Free Fund, and Short Tax Free Fund are sold with a maximum front-end sales charge of 2.25%. Class C shares may be subject to a contingent deferred sales charge of 1.00% for 12 months. Class Y shares have no sales charge and are offered only to qualifying institutional investors and certain other qualifying accounts.

The funds’ prospectuses provide a description of each fund’s investment objective, principal investment strategies, and principal risks. All classes of shares in a fund have identical voting, dividend, liquidation, and other rights, and the same terms and conditions, except that certain fees and expenses, including distribution and shareholder servicing fees, may differ among classes. Each class has exclusive voting rights on any matters relating to that class’ servicing or distribution arrangements.

On February 23, 2006, the funds’ board of directors approved a change in the funds’ fiscal year-end from September 30 to June 30, effective with the nine-month period ending June 30, 2006 (the “fiscal period”).

2 > Summary of Significant Accounting Policies

The significant accounting policies followed by the funds are as follows:

SECURITY VALUATIONS – Security valuations for the funds’ investments are furnished by an independent pricing service that has been approved by the funds’ board of directors. Debt obligations exceeding 60 days to maturity are valued by an independent pricing service. The pricing service may employ methodologies that utilize actual market transactions, broker-dealer supplied valuations, or other formula-driven valuation techniques. These techniques generally consider such factors as yields or prices of bonds of comparable quality, type of issue, coupon, maturity, ratings, and general market conditions. Securities for which prices are not available from an independent pricing service, but where an active market exists, are valued using market quotations obtained from one or more dealers that make markets in the securities or from a widely-used quotation system. When market quotations are not readily available, securities are valued at fair value as determined in good faith by procedures established and approved by the funds’ board of directors. Some of the factors which may be considered in determining fair value are fundamental analytical data relating to the investment; the nature and duration of any restrictions on disposition; trading in similar securities of the same issuer or comparable companies; information from broker-dealers; and an evaluation of the forces that influence the market in which the securities are purchased and sold. If events occur that materially affect the value of securities between the close of trading in those securities and the close of regular trading on the New York Stock Exchange, the securities will be valued at fair value. The use of fair value pricing by a fund may cause the net asset value of its shares to differ significantly from net asset value that would be calculated without regard to such considerations. As of June 30, 2006, the funds held no fair-valued securities. Debt obligations with 60 days or less remaining until maturity will be valued at their amortized cost, which approximates market value. Investments in open-end mutual funds are valued at the respective net asset value of each underlying fund on the valuation date.

SECURITY TRANSACTIONS AND INVESTMENT INCOME – For financial statement purposes, the funds record security transactions on the trade date of the security purchase or

128      First American Funds Annual Report 2006

sale. Interest income, including amortization of bond premium and discount, is recorded on an accrual basis. Security gains and losses are determined on the basis of identified cost, which is the same basis used for federal income tax purposes. Each fund reserves the right to pay part or all of the proceeds from a redemption request in a proportionate share of readily marketable securities in the fund instead of cash. The resulting gain/loss is calculated as the difference between the fair value and the underlying cost of the security on the transaction date.

DISTRIBUTIONS TO SHAREHOLDERS – Distributions from net investment income are declared and paid monthly and are payable in cash or reinvested in additional shares of each respective fund. Any net realized capital gains on sales of a fund’s securities are distributed to shareholders at least annually.

FEDERAL TAXES – Each fund is treated as a separate taxable entity. Each fund intends to continue to qualify as a regulated investment company as provided in Subchapter M of the Internal Revenue Code, as amended, and to distribute all taxable income, if any, to its shareholders. Accordingly, no provision for federal income taxes is required.

Net investment income and net realized gains (losses) may differ for financial statement and tax purposes because of temporary or permanent book/tax differences. These differences are primarily due to book and tax differences for straddle loss deferrals and classification of dividends paid by the funds. To the extent these differences are permanent, reclassifications are made to the appropriate equity accounts in the fiscal period that the differences arise.

On the Statements of Assets and Liabilities, the following reclassification was made:

	Accumulated			Undistributed
	Net Realized			Net Investment
Fund	Gain			Income
Intermediate Tax Free Fund	$	(261	)	$	261

The tax character of distributions made during the fiscal period from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. In addition, due to the timing of dividend distributions, the fiscal period in which the amounts are distributed may differ from the period that the income or realized gains (losses) were recorded by the fund. The distributions paid during the fiscal period ended June 30, 2006 and the fiscal years ended September 30, 2005 and 2004, were as follows:

	2006
	Tax Exempt		Ordinary		Long Term
Fund	Income		Income		Gain		Total
Arizona Tax Free Fund	$	807	$	3	$	210	$	1,020
California Intermediate Tax Free Fund		1,622		85		91		1,798
California Tax Free Fund		1,067		12		53		1,132
Colorado Intermediate Tax Free Fund		1,396		22		266		1,684
Colorado Tax Free Fund		667		54		541		1,262
Intermediate Tax Free Fund		20,212		93		1,785		22,090
Minnesota Intermediate Tax Free Fund		6,508		27		1,372		7,907
Minnesota Tax Free Fund		5,235		29		381		5,645
Missouri Tax Free Fund		5,218		2		1,297		6,517
Nebraska Tax Free Fund		1,236		—		63		1,299
Ohio Tax Free Fund		1,207		—		41		1,248
Oregon Intermediate Tax Free Fund		3,646		20		556		4,222
Short Tax Free Fund		6,134		—		—		6,134
Tax Free Fund		16,637		262		1,396		18,295

First American Funds Annual Report 2006      129

Notes to  Financial Statements continued

	2005
	Tax Exempt		Ordinary		Long Term
Fund	Income		Income		Gain		Total
Arizona Tax Free Fund	$	984	$	3	$	235	$	1,222
California Intermediate Tax Free Fund		2,002		27		329		2,358
California Tax Free Fund		1,203		53		199		1,455
Colorado Intermediate Tax Free Fund		2,077		—		169		2,246
Colorado Tax Free Fund		992		—		177		1,169
Intermediate Tax Free Fund		28,143		—		3,679		31,822
Minnesota Intermediate Tax Free Fund		9,305		—		797		10,102
Minnesota Tax Free Fund		6,755		—		811		7,566
Missouri Tax Free Fund		7,004		—		924		7,928
Nebraska Tax Free Fund		1,581		—		—		1,581
Ohio Tax Free Fund		1,564		—		133		1,697
Oregon Intermediate Tax Free Fund		5,290		—		511		5,801
Short Tax Free Fund		10,220		—		—		10,220
Tax Free Fund		20,510		—		4,409		24,919

	2004
	Tax Exempt		Ordinary		Long Term
Fund	Income		Income		Gain		Total
Arizona Tax Free Fund	$	884	$	39	$	63	$	986
California Intermediate Tax Free Fund		1,931		83		74		2,088
California Tax Free Fund		1,139		—		210		1,349
Colorado Intermediate Tax Free Fund		2,396		12		—		2,408
Colorado Tax Free Fund		1,081		18		186		1,285
Intermediate Tax Free Fund		28,938		100		741		29,779
Minnesota Intermediate Tax Free Fund		10,248		56		467		10,771
Minnesota Tax Free Fund		7,250		103		1,314		8,667
Missouri Tax Free Fund		7,261		5		508		7,774
Nebraska Tax Free Fund		1,391		27		95		1,513
Ohio Tax Free Fund		1,438		183		185		1,806
Oregon Intermediate Tax Free Fund		5,536		97		1,080		6,713
Short Tax Free Fund		11,367		172		2,259		13,798
Tax Free Fund		21,461		155		4,788		26,404

As of June 30, 2006, the components of accumulated earnings (deficit) on a tax basis were as follows:

							Accumulated									Total
	Undistributed		Undistributed		Undistributed		Capital and			Unrealized			Other			Accumulated
	Ordinary		Tax Exempt		Long Term		Post-October			Appreciation			Accumulated			Earnings
Fund	Income		Income		Capital Gains		Losses			(Depreciation)			Losses			(Deficit)
Arizona Tax Free Fund	$	—	$	7	$	108	$	—		$	624		$	(4	)	$	735
California Intermediate Tax Free Fund		16		15		192		—			910			—			1,133
California Tax Free Fund		—		17		53		—			823			—			893
Colorado Intermediate Tax Free Fund		6		32		289		—			1,279			—			1,606
Colorado Tax Free Fund		3		36		183		—			860			(7	)		1,075
Intermediate Tax Free Fund		—		—		1		—			17,986			—			17,987
Minnesota Intermediate Tax Free Fund		5		60		861		—			4,048			—			4,974
Minnesota Tax Free Fund		26		55		419		—			5,815			(11	)		6,304
Missouri Tax Free Fund		—		31		582		—			2,910			—			3,523
Nebraska Tax Free Fund		—		19		187		—			427			(6	)		627
Ohio Tax Free Fund		2		16		57		—			280			(14	)		341
Oregon Intermediate Tax Free Fund		5		62		255		—			1,584			—			1,906
Short Tax Free Fund		—		119		—		(1,236	)		(2,830	)		—			(3,947	)
Tax Free Fund		74		66		2,093		—			18,600			—			20,833

The difference between book and tax basis unrealized appreciation (depreciation) is primarily due to the tax deferral of losses deferred due to straddles.

As of June 30, 2006, Short Tax Free Fund had a capital loss carryforward of $788 of which $238 will expire in 2013 and $550 will expire in 2014, if not offset by subsequent capital gains.

130      First American Funds Annual Report 2006

The Short Tax Free Fund incurred a loss of $448 for tax purposes for the period from November 1, 2005 to June 30, 2006. As permitted by tax regulations, the fund intends to elect to defer and treat those losses as arising in the fiscal year ending June 30, 2007.

FUTURES TRANSACTIONS – In order to protect against changes in the market and to maintain sufficient liquidity to meet redemption requests, each fund may enter into futures contracts. Upon entering into a futures contract, the fund is required to deposit cash or pledge U.S. Government securities. The margin required for a futures contract is set by the exchange on which the contract is traded. Subsequent payments, which are dependent on the daily fluctuations in the value of the underlying security or securities, are made or received by the fund each day (daily variation margin) and are recorded as unrealized gains (losses) until the contract is closed. When the contract is closed, the fund records a realized gain (loss) equal to the difference between the proceeds from (or cost of) the closing transaction and the fund’s basis in the contract.

Risks of entering into futures contracts, in general, include the possibility that there will not be a perfect price correlation between the futures contracts and the underlying securities. Second, it is possible that a lack of liquidity for futures contracts could exist in the secondary market, resulting in an inability to close a futures position prior to its maturity date. Third, the purchase of a futures contract involves the risk that a fund could lose more than the original margin deposit required to initiate a futures transaction. These contracts involve market risk in excess of the amount reflected in the fund’s statement of assets and liabilities. Unrealized gains (losses) on outstanding positions in futures contracts held at the close of the year will be recognized as capital gains (losses) for federal income tax purposes.

SECURITIES PURCHASED ON A WHEN-ISSUED BASIS – Delivery and payment for securities that have been purchased by a fund on a when-issued or forward-commitment basis can take place up to a month or more after the transaction date. Such securities do not earn interest, are subject to market fluctuations, and may increase or decrease in value prior to delivery. Each fund segregates assets with a market value equal to or greater than the amount of that fund’s purchase commitments. The purchase of securities on a when-issued or forward-commitment basis may increase the volatility of a fund’s net asset value if the fund makes such purchases while remaining substantially fully invested. At June 30, 2006, the following funds had outstanding commitments to purchase securities on a when-issued or forward-commitment basis:

			Segregated
Fund	Cost		Assets
Arizona Tax Free Fund	$	668	$	4,929
Colorado Intermediate Tax Free Fund		245		8,606
Colorado Tax Free Fund		745		5,146
Intermediate Tax Free Fund		1,809		144,313
Minnesota Intermediate Tax Free Fund		1,736		41,822
Nebraska Tax Free Fund		1,504		6,491
Ohio Tax Free Fund		401		7,582
Tax Free Fund		4,947		105,743

ILLIQUID OR RESTRICTED SECURITIES – A security may be considered illiquid if it lacks a readily available market. Securities are generally considered liquid if they can be sold or disposed of in the ordinary course of business within seven days at approximately the price at which the security is valued by the fund. Illiquid securities may be valued under methods approved by the funds’ board of directors as reflecting fair value. Each fund intends to invest no more than 15% of its net assets (determined at the time of purchase and reviewed periodically) in illiquid securities. Certain restricted securities may be considered illiquid. Restricted securities are often purchased in private placement transactions, are not registered under the Securities Act of 1933, and may have contractual restrictions on resale. Certain restricted securities eligible for resale to qualified institutional investors, including Rule 144A securities, are not subject to the limitation on a fund’s investment in illiquid securities if they are determined to be liquid in accordance with procedures adopted by the funds’ board of directors. At June 30, 2006, no fund had investments in illiquid securities.

INVERSE FLOATERS – As part of their investment strategy, the funds may invest in certain securities for which the potential income return is inversely related to changes in a floating interest rate (“inverse floaters”). In general, income on inverse floaters will decrease when short-term interest rates increase and increase when short-term interest rates decrease. Inverse floaters may be characterized as derivative securities and may subject a fund to the risks of reduced or eliminated interest payments and losses of invested principal. In addition, inverse floaters have the effect of providing investment leverage and, as a result, the market values of such securities will generally be more volatile than those of fixed-rate, tax-exempt securities. To the extent the funds invest in inverse floaters, the net asset value of the funds’ shares may be more volatile than if the funds did not invest in such securities. At June 30, 2006, no fund had investments in inverse floaters.

EXPENSES – Expenses that are directly related to one of the funds are charged directly to that fund. Other operating expenses are allocated to the funds on several bases, including relative net assets of all funds within the First

First American Funds Annual Report 2006      131

Notes to  Financial Statements continued

American Family of Funds. Class specific expenses, such as distribution fees and shareholder servicing fees, are borne by that class. Income, other expenses, and realized and unrealized gains and losses of a fund are allocated to each respective class in proportion to the relative net assets of each class.

INTERFUND LENDING PROGRAM – Pursuant to an exemptive order issued by the Securities and Exchange Commission, the funds, along with other registered investment companies in the First American Family of Funds, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating funds. The funds did not have any interfund lending transactions during the fiscal period ended June 30, 2006.

DEFERRED COMPENSATION PLAN – Under a Deferred Compensation Plan (the “Plan”), non-interested directors of the First American Family of Funds may participate and elect to defer receipt of part or all of their annual compensation. Deferred amounts are treated as though equivalent dollar amounts had been invested in shares of selected open-end First American Funds as designated by the board of directors. All amounts in the Plan are 100% vested and accounts under the Plan are obligations of the funds. Deferred amounts remain in the funds until distributed in accordance with the Plan.

USE OF ESTIMATES IN THE PREPARATION OF FINANCIAL STATEMENTS – The preparation of financial statements, in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of net assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported results of operations during the reporting period. Actual results could differ from those estimates.

3 > Fees and Expenses

INVESTMENT ADVISORY FEES – Pursuant to an investment advisory agreement (the “Agreement”), FAF Advisors, Inc. (“FAF Advisors”), formerly U.S. Bancorp Asset Management, Inc., manages each fund’s assets and furnishes related office facilities, equipment, research, and personnel. The Agreement requires each fund to pay FAF Advisors a monthly fee based upon average daily net assets. The annual fee for each fund is 0.50%. FAF Advisors has agreed to waive fees and reimburse other fund expenses at least through June 30, 2007, so that total fund operating expenses, as a percentage of average daily net assets, do not exceed the following amounts:

	Share Class
Fund	A			C			Y
Arizona Tax Free Fund		0.75	%		1.15	%		0.50	%
California Intermediate Tax Free Fund		0.85			NA			0.70
California Tax Free Fund		0.75			1.15			0.50
Colorado Intermediate Tax Free Fund		0.85			NA			0.70
Colorado Tax Free Fund		0.75			1.15			0.50
Intermediate Tax Free Fund		0.85			NA			0.70
Minnesota Intermediate Tax Free Fund		0.85			NA			0.70
Minnesota Tax Free Fund		0.95			1.35			0.70
Missouri Tax Free Fund		0.95			1.35			0.70
Nebraska Tax Free Fund		0.75			1.15			0.50
Ohio Tax Free Fund		0.75			1.15			0.50
Oregon Intermediate Tax Free Fund		0.85			NA			0.70
Short Tax Free Fund		0.75			NA			0.60
Tax Free Fund		0.95			1.35			0.70

NA = Not Applicable

The funds may invest in related money market funds that are series of First American Funds, Inc., subject to certain limitations. In order to avoid the payment of duplicative investment advisory fees to FAF Advisors, which acts as the investment advisor to both the investing funds and the related money market funds, FAF Advisors will reimburse each investing fund an amount equal to that portion of FAF Advisors’ investment advisory fee received from the related money market funds that is attributable to the assets of the investing fund. For financial statement purposes, these reimbursements are recorded as investment income.

ADMINISTRATION FEES – FAF Advisors serves as the funds’ administrator pursuant to an administration agreement between FAF Advisors and the funds. U.S. Bancorp Fund Services, LLC (“USBFS”) serves as sub-administrator pursuant to a sub-administration agreement between USBFS and FAF Advisors. FAF Advisors is a subsidiary of U.S. Bank National Association (“U.S. Bank”). Both U.S. Bank and USBFS are direct subsidiaries of U.S. Bancorp. Under the administration agreement, FAF Advisors is compensated to provide, or compensates other entities to provide, services to the funds. These services include various legal, oversight and administrative services and accounting services. The funds pay FAF Advisors administration fees which are calculated daily and paid monthly. Prior to July 1, 2006, such fees were equal to each fund’s pro rata share of an amount equal, on an annual basis, to 0.15% of the aggregate average daily net assets of all open-end mutual funds in the First American Family of Funds, up to $8 billion, 0.135% on the next $17 billion of the aggregate average daily net assets, 0.12% on the next $25 billion of the aggregate average daily net assets, and 0.10% of the aggregate average daily net assets in excess of $50 billion. All fees paid to the sub-administrator are paid from the administration fee. In addition to these fees, the funds may reimburse FAF

132      First American Funds Annual Report 2006

Advisors and the sub-administrator for any out-of-pocket expenses incurred in providing administration services.

Prior to July 1, 2006, as part of the transfer agent fee, FAIF paid USBFS a fee equal, on an annual basis, to 0.10% of each fund’s average daily net assets, to compensate USBFS for providing certain shareholder services and reimbursed USBFS for its payments to financial institutions that establish and maintain omnibus accounts and provide customary services for such accounts. Effective July 1, 2006, this fee was incorporated into the administration fee which, as a result, on an annual basis, is 0.25% of the aggregate average daily net assets of all open-end mutual funds in the First American Family of Funds, up to $8 billion, 0.235% on the next $17 billion of the aggregate average daily net assets, 0.22% on the next $25 billion of the aggregate average daily net assets, and 0.20% of the aggregate average daily net assets in excess of $50 billion.

For the fiscal period ended June 30, 2006, administration fees paid to FAF Advisors by the funds included in this annual report were as follows:

Fund	Amount
Arizona Tax Free Fund	$	25
California Intermediate Tax Free Fund		53
California Tax Free Fund		33
Colorado Intermediate Tax Free Fund		43
Colorado Tax Free Fund		21
Intermediate Tax Free Fund		622
Minnesota Intermediate Tax Free Fund		204
Minnesota Tax Free Fund		154
Missouri Tax Free Fund		166
Nebraska Tax Free Fund		39
Ohio Tax Free Fund		39
Oregon Intermediate Tax Free Fund		125
Short Tax Free Fund		271
Tax Free Fund		464

TRANSFER AGENT FEES – USBFS serves as the funds’ transfer agent pursuant to a transfer agent agreement with FAIF. For the period from July 1, 2005 to July 1, 2006, FAIF paid transfer agent fees of $18,500 per share class and additional per account fees for transfer agent services. These fees were allocated to each fund based upon the fund’s pro rata share of the aggregate average daily net assets of the funds that comprise FAIF. Under the transfer agent agreement, FAIF also paid USBFS a fee equal, on an annual basis, to 0.10% of each fund’s average daily net assets. This fee was intended to compensate USBFS for providing certain shareholder services and to reimburse USBFS for its payments to financial institutions that establish and maintain omnibus accounts and provide customary services for such accounts. In addition to these fees, the funds reimbursed USBFS for out-of-pocket expenses incurred in providing transfer agent services. Prior to July 1, 2005, this 0.10% fee was included in the administration fee.

Effective July 1, 2006, FAIF will be charged transfer agent fees on a per shareholder account basis, subject to a minimum per share class fee. These fees will be charged to each fund based on the number of accounts within that fund. The $18,500 per share class fee that was charged in addition to per account fees has been eliminated. As noted above, effective July 1, 2006, the 0.10% fee for shareholder services and payments to financial services was incorporated into the administration fee. Funds will continue to reimburse USBFS for out-of-pocket expenses incurred in providing transfer agent services.

For the fiscal period ended June 30, 2006, transfer agent fees paid to USBFS by the funds included in this annual report were as follows:

Fund	Amount
Arizona Tax Free Fund	$	27
California Intermediate Tax Free Fund		57
California Tax Free Fund		36
Colorado Intermediate Tax Free Fund		46
Colorado Tax Free Fund		22
Intermediate Tax Free Fund		668
Minnesota Intermediate Tax Free Fund		220
Minnesota Tax Free Fund		165
Missouri Tax Free Fund		178
Nebraska Tax Free Fund		41
Ohio Tax Free Fund		42
Oregon Intermediate Tax Free Fund		134
Short Tax Free Fund		291
Tax Free Fund		499

CUSTODIAN FEES – U.S. Bank serves as the funds’ custodian pursuant to a custodian agreement with FAIF. The custodian fee charged for each fund is equal to an annual rate of 0.005% of average daily net assets. Prior to July 1, 2005, the fee for each fund was an annual rate of 0.01% of average daily net assets. All fees are computed daily and paid monthly.

Under the custodian agreement, interest earned on uninvested cash balances is used to reduce a portion of each fund’s custodian expenses. These credits, if any, are disclosed as “Indirect payments from custodian” in the Statements of Operations. Conversely, the custodian charges a fee for any cash overdrafts incurred which will increase the fund’s custodian expenses.

For the fiscal period ended June 30, 2006, custodian fees were increased as a result of overdrafts, and decreased as a result of interest earned as follows:

Fund	Increased			Decreased
Arizona Tax Free Fund	$	—	*	$	—	*
California Intermediate Tax Free Fund		—	*		—	*
California Tax Free Fund		—	*		—
Colorado Intermediate Tax Free Fund		—	*		—	*
Colorado Tax Free Fund		—	*		—	*
Intermediate Tax Free Fund		—			1
Minnesota Intermediate Tax Free Fund		—	*		1
Minnesota Tax Free Fund		1			—	*
Missouri Tax Free Fund		—	*		—	*
Nebraska Tax Free Fund		—	*		—	*
Ohio Tax Free Fund		—	*		—
Oregon Intermediate Tax Free Fund		1			—	*
Short Tax Free Fund		1			—	*
Tax Free Fund		—	*		—	*

*  Rounds to zero.

First American Funds Annual Report 2006      133

Notes to  Financial Statements continued

DISTRIBUTION AND SHAREHOLDER SERVICING FEES – Quasar Distributors, LLC (“Quasar”), a subsidiary of U.S. Bancorp, serves as the distributor of the funds pursuant to a distribution agreement with FAIF. Under the distribution agreement, and pursuant to a plan adopted by each fund under Rule 12b-1 of the Investment Company Act, each of the funds pays Quasar a monthly distribution and/or shareholder servicing fee equal to an annual rate of 0.25% and 1.00% of each fund’s average daily net assets of the Class A and Class C shares, respectively. No distribution or shareholder servicing fees are paid by Class Y shares. These fees may be used by Quasar to provide compensation for sales support, distribution activities, or shareholder servicing activities.

Quasar is currently waiving a portion of its 12b-1 fees. For Class A shares, Quasar is limiting its fees to 0.15% of average daily net assets for California Intermediate Tax Free Fund, Colorado Intermediate Tax Free Fund, Intermediate Tax Free Fund, Minnesota Intermediate Tax Free Fund, Oregon Intermediate Tax Free Fund, and Short Tax Free Fund. For Class C shares, Quasar is limiting its fees to 0.65% of average daily net assets for Arizona Tax Free Fund, California Tax Free Fund, Colorado Tax Free Fund, Minnesota Tax Free Fund, Missouri Tax Free Fund, Nebraska Tax Free Fund, Ohio Tax Free Fund, and Tax Free Fund.

For the fiscal period ended June 30, 2006, total distribution and shareholder servicing fees waived by Quasar for the funds included in this annual report were as follows:

Fund	Amount
Arizona Tax Free Fund	$	4
California Intermediate Tax Free Fund		3
California Tax Free Fund		9
Colorado Intermediate Tax Free Fund		9
Colorado Tax Free Fund		9
Intermediate Tax Free Fund		25
Minnesota Intermediate Tax Free Fund		22
Minnesota Tax Free Fund		26
Missouri Tax Free Fund		1
Nebraska Tax Free Fund		4
Ohio Tax Free Fund		1
Oregon Intermediate Tax Free Fund		7
Short Tax Free Fund		3
Tax Free Fund		7

Under these distribution and shareholder servicing agreements, the following amounts were retained by affiliates of FAF Advisors for the fiscal period ended June 30, 2006:

Fund	Amount
Arizona Tax Free Fund	$	2
California Intermediate Tax Free Fund		3
California Tax Free Fund		30
Colorado Intermediate Tax Free Fund		10
Colorado Tax Free Fund		11
Intermediate Tax Free Fund		27
Minnesota Intermediate Tax Free Fund		17
Minnesota Tax Free Fund		47
Missouri Tax Free Fund		48
Nebraska Tax Free Fund		5
Ohio Tax Free Fund		3
Oregon Intermediate Tax Free Fund		9
Short Tax Free Fund		4
Tax Free Fund		28

OTHER EXPENSES – In addition to the investment advisory fees, administration fees, transfer agent fees, custodian fees, and distribution and shareholder servicing fees, each fund is responsible for paying other operating expenses, including: legal, auditing, registration fees, postage and printing of shareholder reports, fees and expenses of independent directors, insurance, and other miscellaneous expenses. For the fiscal period ended June 30, 2006, legal fees and expenses of $44 were paid to a law firm of which an Assistant Secretary of the funds is a partner.

CONTINGENT DEFERRED SALES CHARGES – A contingent deferred sales charge (“CDSC”) of 1.00% is imposed on redemptions made in the Class C shares for the first 12 months. The CDSC is imposed on the value of the purchased shares, or the value at the time of redemption, whichever is less.

For the fiscal period ended June 30, 2006, total front-end sales charges and CDSCs retained by affiliates of FAF Advisors for distributing the funds’ shares were as follows:

Fund	Amount
Arizona Tax Free Fund	$	2
California Intermediate Tax Free Fund		4
California Tax Free Fund		86
Colorado Intermediate Tax Free Fund		1
Colorado Tax Free Fund		29
Intermediate Tax Free Fund		4
Minnesota Intermediate Tax Free Fund		12
Minnesota Tax Free Fund		55
Missouri Tax Free Fund		22
Nebraska Tax Free Fund		8
Ohio Tax Free Fund		7
Oregon Intermediate Tax Free Fund		24
Short Tax Free Fund		11
Tax Free Fund		26

134      First American Funds Annual Report 2006

4 > Capital Share Transactions

FAIF has 324 billion shares of $0.0001 par value capital stock authorized. Capital share transactions for the funds were as follows:

											California
		Arizona									Intermediate									California
		Tax Free Fund									Tax Free Fund									Tax Free Fund
		Fiscal									Fiscal									Fiscal
		Period			Year			Year			Period			Year			Year			Period			Year			Year
		Ended			Ended			Ended			Ended			Ended			Ended			Ended			Ended			Ended
		6/30/06			9/30/05			9/30/04			6/30/06			9/30/05			9/30/04			6/30/06			9/30/05			9/30/04
Class A:
	Shares issued		92			189			162			94			131			174			154			373			155
	Shares issued in lieu of cash distributions		27			37			35			8			11			12			23			33			37
	Shares redeemed		(139	)		(162	)		(461	)		(143	)		(81	)		(267	)		(250	)		(184	)		(335	)
Total Class A transactions			(20	)		64			(264	)		(41	)		61			(81	)		(73	)		222			(143	)
Class C:
	Shares issued		11			18			33			—			—			—			102			163			51
	Shares issued in lieu of cash distributions		4			6			4			—			—			—			5			6			4
	Shares redeemed		(36	)		(17	)		(62	)		—			—			—			(53	)		(9	)		(38	)
Total Class C transactions			(21	)		7			(25	)		—			—			—			54			160			17		��
Class Y:
	Shares issued		525			459			204			894			609			777			705			536			358
	Shares issued in lieu of cash distributions		10			6			2			5			8			3			3			3			2
	Shares redeemed		(351	)		(44	)		(189	)		(544	)		(307	)		(523	)		(462	)		(207	)		(290	)
Total Class Y transactions			184			421			17			355			310			257			246			332			70
Net increase (decrease) in capital shares			143			492			(272	)		314			371			176			227			714			(56	)

		Colorado
		Intermediate									Colorado									Intermediate
		Tax Free Fund									Tax Free Fund									Tax Free Fund
		Fiscal									Fiscal									Fiscal
		Period			Year			Year			Period			Year			Year			Period			Year			Year
		Ended			Ended			Ended			Ended			Ended			Ended			Ended			Ended			Ended
		6/30/06			9/30/05			9/30/04			6/30/06			9/30/05			9/30/04			6/30/06			9/30/05			9/30/04
Class A:
	Shares issued		8			392			187			146			26			77			337			714			1,364
	Shares issued in lieu of cash distributions		26			39			43			42			37			47			76			114			102
	Shares redeemed		(363	)		(454	)		(994	)		(135	)		(243	)		(400	)		(528	)		(809	)		(1,341	)
Total Class A transactions			(329	)		(23	)		(764	)		53			(180	)		(276	)		(115	)		19			125
Class C:
	Shares issued		—			—			—			12			42			24			—			—			—
	Shares issued in lieu of cash distributions		—			—			—			16			15			15			—			—			—
	Shares redeemed		—			—			—			(51	)		(83	)		(80	)		—			—			—
Total Class C transactions			—			—			—			(23	)		(26	)		(41	)		—			—			—
Class Y:
	Shares issued		444			583			196			432			122			106			7,885			10,127			8,772
	Shares issued in lieu of cash distributions		5			5			1			3			1			1			216			321			208
	Shares redeemed		(526	)		(810	)		(1,081	)		(227	)		(202	)		(110	)		(10,731	)		(8,735	)		(13,668	)
Total Class Y transactions			(77	)		(222	)		(884	)		208			(79	)		(3	)		(2,630	)		1,713			(4,688	)
Net increase (decrease) in capital shares			(406	)		(245	)		(1,648	)		238			(285	)		(320	)		(2,745	)		1,732			(4,563	)

		Minnesota
		Intermediate									Minnesota									Missouri
		Tax Free Fund									Tax Free Fund									Tax Free Fund
		Fiscal									Fiscal									Fiscal
		Period			Year			Year			Period			Year			Year			Period			Year			Year
		Ended			Ended			Ended			Ended			Ended			Ended			Ended			Ended			Ended
		6/30/06			9/30/05			9/30/04			6/30/06			9/30/05			9/30/04			6/30/06			9/30/05			9/30/04
Class A:
	Shares issued		298			553			1,288			1,143			716			664			67			374			314
	Shares issued in lieu of cash distributions		74			100			91			262			356			477			44			51			46
	Shares redeemed		(869	)		(859	)		(963	)		(1,711	)		(1,782	)		(2,006	)		(303	)		(140	)		(434	)
Total Class A transactions			(497	)		(206	)		416			(306	)		(710	)		(865	)		(192	)		285			(74	)
Class C:
	Shares issued		—			—			—			181			83			76			2			—			1
	Shares issued in lieu of cash distributions		—			—			—			26			34			43			—			1			1
	Shares redeemed		—			—			—			(140	)		(164	)		(248	)		—			(3	)		(6	)
Total Class C transactions			—			—			—			67			(47	)		(129	)		2			(2	)		(4	)
Class Y:
	Shares issued		1,745			1,581			2,053			1,004			779			540			1,228			1,808			1,288
	Shares issued in lieu of cash distributions		35			33			32			14			19			21			23			23			22
	Shares redeemed		(3,437	)		(3,175	)		(3,996	)		(718	)		(471	)		(961	)		(1,975	)		(1,732	)		(2,503	)
Total Class Y transactions			(1,657	)		(1,561	)		(1,911	)		300			327			(400	)		(724	)		99			(1,193	)
Net increase (decrease) in capital shares			(2,154	)		(1,767	)		(1,495	)		61			(430	)		(1,394	)		(914	)		382			(1,271	)

First American Funds Annual Report 2006      135

Notes to  Financial Statements continued

																				Oregon
		Nebraska									Ohio									Intermediate
		Tax Free Fund									Tax Free Fund									Tax Free Fund
		Fiscal									Fiscal									Fiscal
		Period			Year			Year			Period			Year			Year			Period			Year			Year
		Ended			Ended			Ended			Ended			Ended			Ended			Ended			Ended			Ended
		6/30/06			9/30/05			9/30/04			6/30/06			9/30/05			9/30/04			6/30/06			9/30/05			9/30/04
Class A:
	Shares issued		74			295			137			15			24			77			281			202			237
	Shares issued in lieu of cash distributions		11			11			12			1			2			2			19			22			24
	Shares redeemed		(91	)		(93	)		(144	)		(28	)		(45	)		(46	)		(263	)		(139	)		(201	)
Total Class A transactions			(6	)		213			5			(12	)		(19	)		33			37			85			60
Class C:
	Shares issued		15			39			51			8			10			11			—			—			—
	Shares issued in lieu of cash distributions		3			4			5			—			—			1			—			—			—
	Shares redeemed		(22	)		(70	)		(37	)		(4	)		(5	)		(20	)		—			—			—
Total Class C transactions			(4	)		(27	)		19			4			5			(8	)		—			—			—
Class Y:
	Shares issued		398			669			461			473			779			558			938			1,909			1,741
	Shares issued in lieu of cash distributions		7			9			6			18			22			25			35			39			76
	Shares redeemed		(433	)		(403	)		(317	)		(436	)		(590	)		(596	)		(2,855	)		(2,067	)		(2,448	)
Total Class Y transactions			(28	)		275			150			55			211			(13	)		(1,882	)		(119	)		(631	)
Net increase (decrease) in capital shares			(38	)		461			174			47			197			12			(1,845	)		(34	)		(571	)

		Short
		Tax Free Fund									Tax Free Fund
		Fiscal									Fiscal
		Period			Year			Year			Period			Year			Year
		Ended			Ended			Ended			Ended			Ended			Ended
		6/30/06			9/30/05			9/30/04			6/30/06			9/30/05			9/30/04
Class A:
	Shares issued		121			213			330			383			382			791
	Shares issued in lieu of cash distributions		7			11			16			96			150			166
	Shares redeemed		(204	)		(440	)		(344	)		(559	)		(682	)		(1,170	)
Total Class A transactions			(76	)		(216	)		2			(80	)		(150	)		(213	)
Class C:
	Shares issued		—			—			—			3			25			42
	Shares issued in lieu of cash distributions		—			—			—			7			11			16
	Shares redeemed		—			—			—			(51	)		(32	)		(251	)
Total Class C transactions			—			—			—			(41	)		4			(193	)
Class Y:
	Shares issued		3,350			6,860			16,264			7,282			6,235			4,012
	Shares issued in lieu of cash distributions		45			69			347			82			97			106
	Shares redeemed		(12,753	)		(15,310	)		(13,499	)		(4,706	)		(4,293	)		(7,665	)
Total Class Y transactions			(9,358	)		(8,381	)		3,112			2,658			2,039			(3,547	)
Net increase (decrease) in capital shares			(9,434	)		(8,597	)		3,114			2,537			1,893			(3,953	)

5 > Investment Security Transactions

During the fiscal period ended June 30, 2006, purchases of securities and proceeds from sales of securities, other than government securities and temporary investments in short-term securities, were as follows:

Fund	Purchases		Sales
Arizona Tax Free Fund	$	14,429	$	11,884
California Intermediate Tax Free Fund		12,837		10,921
California Tax Free Fund		10,585		8,049
Colorado Intermediate Tax Free Fund		7,719		12,367
Colorado Tax Free Fund		9,929		7,430
Intermediate Tax Free Fund		100,217		132,593
Minnesota Intermediate Tax Free Fund		23,303		46,387
Minnesota Tax Free Fund		16,722		16,604
Missouri Tax Free Fund		33,945		45,258
Nebraska Tax Free Fund		14,591		13,943
Ohio Tax Free Fund		4,540		4,712
Oregon Intermediate Tax Free Fund		17,536		34,550
Short Tax Free Fund		52,803		149,281
Tax Free Fund		93,937		64,178

The aggregate gross unrealized appreciation and depreciation for securities held by the funds and the total cost of securities for federal income tax purposes at June 30, 2006, were as follows:

	Aggregate		Aggregate						Federal
	Gross		Gross						Income
Fund	Appreciation		Depreciation			Net			Tax Cost
Arizona Tax Free Fund	$	835	$	(211	)	$	624		$	25,165
California Intermediate Tax Free Fund		1,195		(285	)		910			53,266
California Tax Free Fund		1,082		(259	)		823			35,030
Colorado Intermediate Tax Free Fund		1,465		(186	)		1,279			40,997
Colorado Tax Free Fund		986		(126	)		860			21,436
Intermediate Tax Free Fund		21,452		(3,466	)		17,986			604,774
Minnesota Intermediate Tax Free Fund		5,037		(989	)		4,048			195,816
Minnesota Tax Free Fund		6,657		(842	)		5,815			154,027
Missouri Tax Free Fund		3,827		(917	)		2,910			160,917
Nebraska Tax Free Fund		691		(264	)		427			40,367
Ohio Tax Free Fund		545		(265	)		280			41,498
Oregon Intermediate Tax Free Fund		2,410		(826	)		1,584			118,225
Short Tax Free Fund		321		(3,151	)		(2,830	)		244,253
Tax Free Fund		20,425		(1,825	)		18,600			474,558

136      First American Funds Annual Report 2006

6 > Concentration of Credit Risk

The Arizona Tax Free Fund, California Intermediate Tax Free Fund, California Tax Free Fund, Colorado Intermediate Tax Free Fund, Colorado Tax Free Fund, Minnesota Intermediate Tax Free Fund, Minnesota Tax Free Fund, Missouri Tax Free Fund, Nebraska Tax Free Fund, Ohio Tax Free Fund, and Oregon Intermediate Tax Free Fund invest in debt instruments of municipal issuers in specific states. Although these funds monitor investment concentration, the issuers’ ability to meet their obligations may be affected by economic developments in the specific state or region. Additionally, each state has various guidelines relating to the tax treatment of the income distributed from each fund.

7 > Indemnifications

The funds enter into contracts that contain a variety of indemnifications. The funds’ maximum exposure under these arrangements is unknown. However, the funds have not had prior claims or losses pursuant to these contracts and expect the risk of loss to be remote.

8 > New Accounting Pronouncement

In June 2006, the Financial Accounting Standards Board issued Interpretation No. 48, Accounting for Uncertainty in Income Taxes, an interpretation of FAS109, Accounting for Income Taxes (FIN 48), to create a single model to address accounting for uncertainty in tax positions. FIN 48 clarifies the accounting for income taxes, by prescribing a minimum recognition threshold a tax position is required to meet before being recognized in the financial statements. FIN 48 also provides guidance on derecognition, measurement, classification, interest and penalties, accounting in interim periods, disclosure and transition. At this time, FAF Advisors is evaluating the implications of FIN 48 and its impact in the funds’ financial statements which has not yet been determined.

First American Funds Annual Report 2006      137

 NOTICE TO SHAREHOLDERS June 30, 2006 (unaudited)

TAX INFORMATION

The information set forth below is for each fund’s fiscal period as required by federal laws. Most shareholders, however, must report distributions on a calendar year basis for income tax purposes, which may include distributions for portions of two fiscal periods of a fund. Accordingly, the information needed for income tax purposes will be sent in early 2007 on Form 1099-DIV. Please consult your tax advisor for proper treatment of this information.

For the fiscal period ended June 30, 2006, each fund has designated long term capital gains, ordinary income, and tax exempt income with regard to distributions paid during the period as follows:

	Long Term						Ordinary
	Capital Gains						Income			Total
	Distributions			Tax Exempt			Distributions			Distributions
Fund	(Tax Basis)			Interest			(Tax Basis)			(Tax Basis) (a)
Arizona Tax Free Fund		21	%		79	%		—	%		100	%
California Intermediate Tax Free Fund		5			90			5			100
California Tax Free Fund		5			94			1			100
Colorado Intermediate Tax Free Fund		16			83			1			100
Colorado Tax Free Fund		43			53			4			100
Intermediate Tax Free Fund		8			91			1			100
Minnesota Intermediate Tax Free Fund		17			82			1			100
Minnesota Tax Free Fund		7			93			—			100
Missouri Tax Free Fund		20			80			—			100
Nebraska Tax Free Fund		5			95			—			100
Ohio Tax Free Fund		3			97			—			100
Oregon Intermediate Tax Free Fund		14			86			—			100
Short Tax Free Fund		—			100			—			100
Tax Free Fund		8			91			1			100

(a)  None of the distributions made by these funds are eligible for the dividends received deduction or are characterized as qualified dividend income.

Additional Information Applicable to Foreign Shareholders Only:

The percentage of ordinary income distributions that are designated as interest-related dividends under Internal Revenue Code Section 871(k)(1)(C) for each fund were as follows:

Fund
Arizona Tax Free Fund	100.00	%
California Intermediate Tax Free Fund	98.74	%
California Tax Free Fund	99.64	%
Colorado Intermediate Tax Free Fund	99.39	%
Colorado Tax Free Fund	98.09	%
Intermediate Tax Free Fund	99.96	%
Minnesota Intermediate Tax Free Fund	99.51	%
Minnesota Tax Free Fund	99.25	%
Missouri Tax Free Fund	99.75	%
Nebraska Tax Free Fund	99.81	%
Ohio Tax Free Fund	99.71	%
Oregon Intermediate Tax Free Fund	99.92	%
Short Tax Free Fund	100.00	%
Tax Free Fund	99.78	%

The percentage of ordinary income distributions that are designated as short-term capital gain distributions under Internal Revenue Code Section 871(k)(2)(C) for each fund were as follows:

Fund
Arizona Tax Free Fund	—	%
California Intermediate Tax Free Fund	98	%
California Tax Free Fund	100	%
Colorado Intermediate Tax Free Fund	77	%
Colorado Tax Free Fund	84	%
Intermediate Tax Free Fund	62	%
Minnesota Intermediate Tax Free Fund	23	%
Minnesota Tax Free Fund	61	%
Missouri Tax Free Fund	73	%
Nebraska Tax Free Fund	—	%
Ohio Tax Free Fund	—	%
Oregon Intermediate Tax Free Fund	—	%
Short Tax Free Fund	—	%
Tax Free Fund	87	%

138      First American Funds Annual Report 2006

HOW TO OBTAIN A COPY OF THE FUNDS’ PROXY VOTING POLICIES AND PROXY VOTING RECORD

A description of the policies and procedures that the funds use to determine how to vote proxies relating to portfolio securities, as well as information regarding how the funds voted proxies relating to portfolio securities during the most recent 12 month period ended June 30 is available (1) without charge upon request by calling 800.677.FUND; (2) at firstamericanfunds.com; and (3) on the U.S. Securities and Exchange Commission’s website at http://www.sec.gov.

FORM N-Q HOLDINGS INFORMATION

Each fund is required to file its complete schedule of portfolio holdings for the first and third quarters of each fiscal year with the Securities and Exchange Commission on Form N-Q. The funds’ Forms N-Q are available (1) without charge upon request by calling 800.677.FUND and (2) on the U.S. Securities and Exchange Commission’s website at http://www.sec.gov. In addition, you may review and copy the funds’ Forms N-Q at the Commission’s Public Reference Room in Washington, D.C. You may obtain information on the operation of the Public Reference Room by calling 1-800-SEC-0330.

QUARTERLY PORTFOLIO HOLDINGS

Each fund will make portfolio holdings information publicly available by posting the information at firstamericanfunds.com on a quarterly basis. The funds will attempt to post such information within 10 days of the quarter end.

APPROVAL OF INVESTMENT ADVISORY AGREEMENT

The Board of Directors of the funds (the “Board”), which is comprised entirely of independent directors, oversees the management of the funds and, as required by law, determines annually whether to renew the funds’ advisory agreement with FAF Advisors, Inc. (“FAF Advisors”).

At a meeting on May 1-3, 2006, the Board considered information relating to the funds’ investment advisory agreement with FAF Advisors (the “Agreement”). In advance of the meeting, the Board received materials relating to the Agreement, and had the opportunity to ask questions and request further information in connection with their consideration. At a subsequent meeting on June 19-21, 2006, the Board concluded its consideration of and approved the Agreement through June 30, 2007.

Although the Agreement, which is with First American Investment Funds, Inc., relates to all of the funds, the Board separately considered and approved the Agreement with respect to each fund. In considering the Agreement, the Board, advised by independent legal counsel, reviewed and considered the factors it deemed relevant, including: (1) the nature, quality, and extent of FAF Advisors’ services to the fund, (2) the investment performance of the fund, (3) the profitability of FAF Advisors related to the fund, including an analysis of FAF Advisors’ cost of providing services and comparative expense information, (4) whether economies of scale may be realized as the fund grows and whether fee levels are adjusted to enable fund investors to share in these potential economies of scale, and (5) other benefits that accrue to FAF Advisors through its relationship with the fund. In its deliberations, the Board did not identify any single factor which alone was responsible for the Board’s decision to approve the Agreement.

Before approving the Agreement, the Board met in executive session with its independent counsel on numerous occasions to consider the materials provided by FAF Advisors and the terms of the Agreement. Based on its evaluation of all material factors, the Board concluded that the Agreement is fair and in the interests of the shareholders of each fund. In reaching its conclusions, the Board considered the following:

Nature, Quality, and Extent of Investment Advisory Services

The Board examined the nature, quality, and extent of the services provided by FAF Advisors to each fund. The Board reviewed FAF Advisors’ key personnel who provide investment advisory services to each fund as well as the fact that, under the Agreement, FAF Advisors has the authority and responsibility to make and execute investment decisions for each fund within the framework of the fund’s investment policies and restrictions, subject to review by the Board. The Board further considered that FAF Advisors’ duties with respect to each fund include (i) investment research and security selection, (ii) adherence to (and monitoring compliance with) the fund’s investment policies and restrictions and the Investment Company Act of 1940, and (iii) monitoring the performance of the various organizations providing services to the fund, including the fund’s sub-administrator, transfer agent and custodian. Finally, the Board considered FAF Advisors’ representation that the services provided by FAF Advisors under the Agreement are the type of services customarily provided by investment advisors in the fund industry.

First American Funds Annual Report 2006      139

NOTICE TO SHAREHOLDERS continued

The Board also considered compliance reports about FAF Advisors from the funds’ Chief Compliance Officer.

Based on the foregoing, the Board concluded that each fund is likely to benefit from the nature, extent, and quality of the services provided by FAF Advisors under the Agreement.

Investment Performance of the Funds

The Board considered the performance of each fund, as summarized below, including how the fund performed versus the median performance of a group of comparable funds selected by an independent data service (the “performance universe”) and how the fund performed versus its benchmark index. The performance periods reviewed by the Board ended on January 31, 2006. In the case of each state-specific fund, the Board considered that the fund’s benchmark index is a national municipal index, rather than a state-specific index, and noted FAF Advisors’ assertion that the Board should, therefore, treat the fund’s performance universe as a more meaningful source of comparative performance data. The Board also considered that, in reviewing the comparative performance of income funds, the different expense levels of a fund’s share classes can result in different net performance results for each of those classes. Thus, while the Board considered the performance of all classes, it focused on Class Y shares, which, because they have the lowest expense ratios, offered the most meaningful data on performance.

Arizona Tax Free Fund, California Tax Free Fund, California Intermediate Tax Free Fund, Colorado Tax Free Fund, Colorado Intermediate Tax Free Fund, Intermediate Tax Free Fund, Minnesota Intermediate Tax Free Fund, and Oregon Intermediate Tax Free Fund. For each of these funds, the Board considered that the fund outperformed or performed competitively against its performance universe and benchmark for the one-, three-, and five-year periods. The Board concluded that, in light of each fund’s competitive performance, it would be in the interest of the fund and its shareholders to renew the Agreement.

Minnesota Tax Free Fund. The Board considered that the fund outperformed (in most instances, significantly) its performance universe and benchmark for the one-, three-, and five-year periods. The Board concluded that, in light of the fund’s strong performance, it would be in the interest of the fund and its shareholders to renew the Agreement.

Missouri Tax Free Fund. The Board considered that the fund outperformed or performed competitively against its performance universe for the one-, three-, and five-year periods. The Board also noted that the fund underperformed its benchmark for those periods. The Board considered FAF Advisors’ assertion that the fund’s performance has been affected by its limited ability to enter into transactions with Piper Jaffray, an active dealer in Missouri secondary market trading. This results from banking regulation related restrictions, which are expected to lapse, vis-à-vis the fund, before December 31, 2006. The Board concluded that, in light of the fund’s competitive performance compared to that of the performance universe and the anticipated positive impact of the increased access to Piper Jaffray’s offering and secondary market trading capabilities, it would be in the interest of the fund and its shareholders to renew the Agreement.

Nebraska Tax Free Fund. The Board considered that the fund outperformed or performed competitively against its performance universe and benchmark for the one- and three-year periods. The Board concluded that, in light of the fund’s competitive performance, it would be in the interest of the fund and its shareholders to renew the Agreement.

Ohio Tax Free Fund. The Board considered that the fund outperformed its performance universe for the one- and three-year periods. The Board also noted that the fund performed competitively against its benchmark for the three-year period though it underperformed for the one-year period. The Board concluded that, in light of the fund’s competitive longer-term performance, it would be in the interest of the fund and its shareholders to renew the Agreement.

Short Tax Free Fund. The Board considered that the fund outperformed or performed competitively against its benchmark for the one-and three-year periods. The Board also noted that the fund outperformed its performance universe for the three-year period, though it underperformed for the one-year period. The Board concluded that, in light of the fund’s competitive, longer-term performance, especially against its performance universe, it would be in the interest of the fund and its shareholders to renew the Agreement.

Tax Free Fund. The Board considered that the fund significantly outperformed its performance universe for the one-, three-, five-, and ten-year periods and also outperformed or performed competitively with its benchmark for all periods. The Board concluded that, in light of the fund’s strong performance, it would be in the interest of the fund and its shareholders to renew the Agreement.

140      First American Funds Annual Report 2006

Costs of Services and Profits Realized by FAF Advisors

The Board reviewed FAF Advisors’ estimated costs in serving as the funds’ investment manager, including the costs associated with the personnel and systems necessary to manage each fund. The Board also considered the reported profitability of FAF Advisors and its affiliates resulting from their relationship with each fund. For each fund, the Board reviewed fee and expense information as compared to that of other funds and accounts managed by FAF Advisors and of comparable funds managed by other advisers. The Board found that while the advisory fees for FAF Advisors’ institutional separate accounts are lower than the funds’ advisory fees, the funds receive additional services from FAF Advisors that separate accounts do not receive.

Using information provided by an independent data service, the Board also evaluated each fund’s advisory fee compared to the median advisory fee for other mutual funds similar in size, character and investment strategy, and each fund’s expense ratio after waivers compared to the median expense ratio, after waivers, of comparable funds. In connection with its review of fund fees and expenses, the Board asked FAF Advisors to articulate its pricing philosophy. FAF Advisors responded that it attempts generally to maintain each fund’s total operating expenses at a level that approximates its peer group median expense ratio. In addition, FAF Advisors committed to waive its investment advisory fees to the extent necessary to maintain the funds’ total expense ratios at levels generally in line with their respective peer groups. Consistent with this pricing philosophy, FAF Advisors agreed to maintain the funds’ expense caps at their current levels through June 30, 2007.

Further detail considered by the Board regarding the advisory fees and expense ratios of each fund is set forth below:

Arizona Tax Free Fund, California Intermediate Tax Free Fund, California Tax Free Fund, Colorado Tax Free Fund, Colorado Intermediate Tax Free Fund, Intermediate Tax Free Fund, Minnesota Intermediate Tax Free Fund, Nebraska Tax Free Fund, Ohio Tax Free Fund, Oregon Intermediate Tax Free Fund, and Short Tax Free Fund. For each of these funds, the advisory fee and expense ratio, after waivers, was less than or equal to the peer group median. The Board concluded that each fund’s advisory fee and expense ratio is reasonable in light of the services provided.

Minnesota Tax Free Fund. The Board considered that the fund’s advisory fee, after waivers, was lower than the peer group median, though the fund’s expense ratio was slightly higher than the median. Given the competitiveness of the advisory fee and the fact that the expense ratio is within a range consistent with FAF Advisors’ pricing philosophy, the Board concluded that the fund’s advisory fee and expense ratio are reasonable in light of the services provided.

Missouri Tax Free Fund. The Board considered that the fund’s advisory fee, after waivers, was slightly higher than the peer group median advisory fee. The Board also noted that the fund’s expense ratio, after waivers, was higher than that of the peer group median, though within a range consistent with FAF Advisors’ pricing philosophy. Given this and the fund’s competitive advisory fee, the Board concluded that the fund’s advisory fee and expense ratio are reasonable in light of the services provided.

Tax Free Fund. The Board considered that the fund’s advisory fee, after waivers, was lower than the peer group median. The Board also noted that the fund’s expense ratio, after waivers, was higher than that of the peer group median, though within a range consistent with FAF Advisors’ pricing philosophy. Given this and the fund’s competitive advisory fee, the Board concluded that the fund’s advisory fee and expense ratio are reasonable in light of the services provided.

Economies of Scale in Providing Investment Advisory Services

The Board considered whether each fund’s investment advisory fee reflects the potential for economies of scale for the benefit of fund shareholders. Based on information provided by FAF Advisors, the Board noted that profitability will likely increase somewhat as assets grow over time. The Board considered that, although the funds do not have advisory fee breakpoints in place, FAF Advisors has committed to waive advisory fees to the extent necessary to keep each fund’s total expenses generally in line with the median total expenses of a peer group of funds as selected by an independent data service. The median total expense ratio of a fund’s peer group will reflect the effect of any breakpoints in the advisory fee schedules of the funds in that group. Therefore, by capping a fund’s total expense ratio at a level close to the median, fund shareholders should receive the benefit of any breakpoints in the comparable funds’ advisory fee schedules. In light of FAF Advisors’ commitment to keep total fund expenses competitive, the Board concluded that it would be reasonable and in the best interest of each fund and its shareholders to renew the Agreement.

First American Funds Annual Report 2006      141

NOTICE TO SHAREHOLDERS continued

Other Benefits to FAF Advisors

In evaluating the benefits that accrue to FAF Advisors through its relationship with the funds, the Board noted that FAF Advisors and certain of its affiliates serve the funds in various capacities, including as advisor, administrator, transfer agent, distributor, custodian, and securities lending agent, and receive compensation from the funds in connection with providing services to the funds. The Board considered that each service provided to the Funds by FAF Advisors or one of its affiliates is pursuant to a written agreement, which the Board evaluates periodically as required by law.

After full consideration of these and other factors, the Board concluded that approval of the Agreement was in the best interest of each fund and its shareholders.

142      First American Funds Annual Report 2006

Directors and Officers of the Funds

Independent Directors
						Other
	Position(s)		Term of Office		Number of Portfolios	Directorships
Name, Address, and	Held		and Length of	Principal Occupation(s)	in Fund Complex	Held by
Year of Birth	with Funds		Time Served	During Past 5 Years	Overseen by Director	Director †
Benjamin R. Field III P.O. Box 1329 Minneapolis, MN 55440-1329 (1938)		Director	Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Director of FAIF since September 2003.	Retired; Senior Financial Advisor, Bemis Company, Inc. from May 2002 through June 2004; Senior Vice President, Chief Financial Officer & Treasurer, Bemis, through April 2002.	First American Funds Complex: twelve registered investment companies, including fifty-eight portfolios	None
Roger A. Gibson P.O. Box 1329 Minneapolis, MN 55440-1329 (1946)		Director	Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Director of FAIF since October 1997.	Retired; Vice President, Cargo – United Airlines from July 2001 through July 2004; Vice President, North America – Mountain Region, United Airlines, prior to July 2001.	First American Funds Complex: twelve registered investment companies, including fifty-eight portfolios	None
Victoria J. Herget P.O. Box 1329 Minneapolis, MN 55440-1329 (1951)		Director	Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Director of FAIF since September 2003.	Investment consultant and non-profit board member since 2001; Managing Director of Zurich Scudder Investments through 2001.	First American Funds Complex: twelve registered investment companies, including fifty-eight portfolios	None
Leonard W. Kedrowski P.O. Box 1329 Minneapolis, MN 55440-1329 (1941)		Director	Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Director of FAIF since November 1993.	Owner and President, Executive and Management Consulting, Inc., a management consulting firm; Board member, GC McGuiggan Corporation (dba Smyth Companies), a label printer; former Chief Executive Officer, Creative Promotions International, LLC, a promotional award programs and products company, through October 2003; Advisory Board member, Designer Doors, manufacturer of designer doors, through 2002.	First American Funds Complex: twelve registered investment companies, including fifty-eight portfolios	None
Richard K. Riederer P.O. Box 1329 Minneapolis, MN 55440-1329 (1944)		Director	Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Director of FAIF since August 2001.	Retired; Director, President, and Chief Executive Officer, Weirton Steel through 2001.	First American Funds Complex: twelve registered investment companies, including fifty-eight portfolios	Cleveland Cliffs Inc (a producer of iron ore pellets)
Joseph D. Strauss P.O. Box 1329 Minneapolis, MN 55440-1329 (1940)		Director	Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Director of FAIF since April 1991.	Attorney At Law, Owner and President, Strauss Management Company, a Minnesota holding company for various organizational management business ventures; Owner, Chairman and Chief Executive Officer, Community Resource Partnerships, Inc., a strategic planning, operations management, government relations, transportation planning and public relations organization; Owner, Chairman and Chief Executive Officer, Excensustm, LLC, a strategic demographic planning and application development firm, since 2001.	First American Funds Complex: twelve registered investment companies, including fifty-eight portfolios	None

First American Funds Annual Report 2006      143

NOTICE TO SHAREHOLDERS continued

Independent Directors — continued
						Other
	Position(s)		Term of Office		Number of Portfolios	Directorships
Name, Address, and	Held		and Length of	Principal Occupation(s)	in Fund Complex	Held by
Year of Birth	with Funds		Time Served	During Past 5 Years	Overseen by Director	Director †
Virginia L. Stringer P.O. Box 1329 Minneapolis, MN 55440-1329 (1944)	Chair; Director		Chair Term three years. Directors Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Chair of FAIF’s Board since September 1997; Director of FAIF since September 1987.	Owner and President, Strategic Management Resources, Inc., a management consulting firm; Executive Consultant to State Farm Insurance Company through 2003.	First American Funds Complex: twelve registered investment companies, including fifty-eight portfolios	None
James M. Wade P.O. Box 1329 Minneapolis, MN 55440-1329 (1943)		Director	Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Director of FAIF since August 2001.	Owner and President, Jim Wade Homes, a homebuilding company, since 1999.	First American Funds Complex: twelve registered investment companies, including fifty-eight portfolios	None

†  Includes only directorships in a company with a class of securities registered pursuant to Section 12 of the Securities Exchange Act or subject to the requirements of Section 15(d) of the Securities Exchange Act, or any company registered as an investment company under the Investment Company Act.

The Statement of Additional Information (SAI) includes additional information about fund directors and is available upon request without charge by calling 800-677-FUND or writing to First American Funds, P.O. Box 1330, Minneapolis, Minnesota, 55440-1330.

144      First American Funds Annual Report 2006

Officers
	Position(s)		Term of Office
Name, Address, and	Held		and Length of
Year of Birth	with Funds		Time Served	Principal Occupation(s) During Past 5 Years
Thomas S. Schreier, Jr. FAF Advisors, Inc. 800 Nicollet Mall Minneapolis, MN 55402 (1962)*		President	Re-elected by the Board annually; President of FAIF since February 2001.	Chief Executive Officer of FAF Advisors, Inc.
Mark S. Jordahl FAF Advisors, Inc. 800 Nicollet Mall Minneapolis, MN 55402 (1960)*	Vice President – Investments		Re-elected by the Board annually; Vice President – Investments of FAIF since September 2001.	Chief Investment Officer of FAF Advisors, Inc., since September 2001.
Jeffery M. Wilson FAF Advisors, Inc. 800 Nicollet Mall Minneapolis, MN 55402 (1956)*	Vice President – Administration		Re-elected by the Board annually; Vice President – Administration of FAIF since March 2000.	Senior Vice President of FAF Advisors, Inc.
Charles D. Gariboldi, Jr. FAF Advisors, Inc. 800 Nicollet Mall Minneapolis, MN 55402 (1959)*		Treasurer	Re-elected by the Board annually; Treasurer of FAIF since December 2004.	Treasurer, FAF Advisors, Inc., since October 2004; prior thereto, Vice President of investment accounting and Fund Treasurer for Thrivent Financial for Lutherans.
Jill M. Stevenson FAF Advisors, Inc. 800 Nicollet Mall Minneapolis, MN 55402 (1965)*	Assistant Treasurer		Re-elected by the Board annually; Assistant Treasurer of FAIF since September 2005.	Assistant Treasurer, FAF Advisors, Inc., since September 2005; prior thereto, Director, Senior Project Manager, FAF Advisors, Inc. from May 2003 to September 2005; prior to that, Vice President, Director of Operations, Paladin Investment Associates, LLC.
David H. Lui FAF Advisors, Inc. 800 Nicollet Mall Minneapolis, MN 55402 (1960)*	Chief Compliance Officer		Re-elected by the Board annually; Chief Compliance Officer of FAIF since February 2005.	Chief Compliance Officer for First American Funds and FAF Advisors, Inc., since February 2005; prior thereto, Chief Compliance Officer, Franklin Advisors, Inc. and Chief Compliance Counsel, Franklin Templeton Investments from March 2004 to February 2005; prior to that, Vice President, Charles Schwab & Co., Inc.
Jevad (“Jay”) Aslani FAF Advisors, Inc. 800 Nicollet Mall Minneapolis, MN 55402 (1961)*	Anti-Money Laundering Officer		Re-elected by the Board annually; Anti-Money Laundering Officer of FAIF since June 2006.	Director of Compliance of FAF Advisors, Inc., since September 2004; prior thereto, Independent Compliance Consultant from December 2002 to August 2004; prior to that, Assistant Vice President, Assistant Secretary, and Anti-Money Laundering Officer of Artisan Funds, Assistant Secretary and Compliance Officer of Artisan Distributors, and Compliance Officer of Artisan Partners Limited Partnership.
Kathleen L. Prudhomme FAF Advisors, Inc. 800 Nicollet Mall Minneapolis, MN 55402 (1953)*		Secretary	Re-elected by the Board annually; Secretary of FAIF since December 2004; prior thereto, Assistant Secretary of FAIF since September 1998.	Deputy General Counsel, FAF Advisors, Inc., since November 2004; prior thereto, Partner, Dorsey & Whitney LLP, a Minneapolis-based law firm.
James D. Alt 50 South Sixth Street Suite 1500, Minneapolis, MN 55402 (1951)	Assistant Secretary		Re-elected by the Board annually; Assistant Secretary of FAIF since December 2004; prior thereto, Secretary of FAIF since June 2002; Assistant Secretary of FAIF from September 1998 through June 2002.	Partner, Dorsey & Whitney LLP, a Minneapolis-based law firm.
Brett L. Agnew FAF Advisors, Inc. 800 Nicollet Mall Minneapolis, MN 55402 (1971)*	Assistant Secretary		Re-elected by the Board annually; Assistant Secretary of FAIF since December 2004.	Attorney for FAF Advisors, Inc., since August 2004; prior thereto, Senior Counsel, Thrivent Financial for Lutherans from May 2001 to August 2004; prior to that, Consultant, Principal Financial Group.

First American Funds Annual Report 2006      145

NOTICE TO SHAREHOLDERS continued

Officers — continued
	Position(s)	Term of Office
Name, Address, and	Held	and Length of
Year of Birth	with Funds	Time Served	Principal Occupation(s) During Past 5 Years
James R. Arnold 615 E. Michigan Street Milwaukee, WI 53202 (1957)*	Assistant Secretary	Re-elected by the Board annually; Assistant Secretary of FAIF since June 2003.	Vice President, U.S. Bancorp Fund Services, LLC, since March 2002; prior thereto, Senior Administration Services Manager, UMB Fund Services, Inc.
Richard J. Ertel FAF Advisors, Inc. 800 Nicollet Mall Minneapolis, MN 55402 (1967)*	Assistant Secretary	Re-elected by the Board annually; Assistant Secretary of FAIF since June 2006 and from June 2003 through August 2004.	Counsel, FAF Advisors, Inc., since May 2006; prior thereto, Counsel, Ameriprise Financial Services, Inc. from September 2004 to May 2006; prior to that, Counsel, FAF Advisors, Inc. from May 2003 to August 2004; prior to May 2003, Associate Counsel, Hartford Life and Accident Insurance Company.
Douglas G. Hess 615 E. Michigan Street Milwaukee, WI 53202 (1967)*	Assistant Secretary	Re-elected by the Board annually; Assistant Secretary of FAIF since September 2001.	Vice President, U.S. Bancorp Fund Services, LLC.

*  Messrs. Schreier, Jordahl, Wilson, Gariboldi, Lui, Aslani, Agnew and Ertel, Ms. Stevenson and Ms. Prudhomme are each officers and/or employees of FAF Advisors, Inc., which serves as investment adviser and administrator for FAIF. Messrs. Hess and Arnold are officers of U.S. Bancorp Fund Services, LLC, which is a subsidiary of U.S. Bancorp and which serves as Transfer Agent for FAIF.

146      First American Funds Annual Report 2006

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Board of DirectorsFirst American Investment Funds, Inc.

Virginia Stringer

Chairperson of First American Investment Funds, Inc.

Owner and President of Strategic Management Resources, Inc.

Benjamin Field III

Director of First American Investment Funds, Inc.

Retired; former Senior Financial Advisor, Senior Vice President, Chief Financial Officer, and Treasurer of Bemis Company, Inc.

Roger Gibson

Director of First American Investment Funds, Inc.

Retired; former Vice President of Cargo-United Airlines

Victoria Herget

Director of First American Investment Funds, Inc.

Investment Consultant; former Managing Director of Zurich Scudder Investments

Leonard Kedrowski

Director of First American Investment Funds, Inc.

Owner and President of Executive and Management Consulting, Inc.

Richard Riederer

Director of First American Investment Funds, Inc.

Retired; former Director, President, and Chief Executive Officer of Weirton Steel

Joseph Strauss

Director of First American Investment Funds, Inc.

Owner and President of Strauss Management Company

James Wade

Director of First American Investment Funds, Inc.

Owner and President of Jim Wade Homes

First American Investment Funds’ Board of Directors is comprised entirely of independent directors.

Direct fund correspondence to:

First American Funds

P.O. Box 1330

Minneapolis, MN 55440-1330

This report and the financial statements contained herein are not intended to be a forecast of future events, a guarantee of future results, or investment advice. Further, there is no assurance that certain securities will remain in or out of each fund’s portfolio. The views expressed in this report reflect those of the portfolio managers only through the period ended June 30, 2006. The portfolio managers’ views are subject to change at any time based upon market or other conditions.

This report is for the information of shareholders of the First American Investment Funds, Inc. It may also be used as sales literature when preceded or accompanied by a current prospectus, which contains information concerning investment objectives, risks, and charges and expenses of the funds. Read the prospectus carefully before investing.

The figures in this report represent past performance and do not guarantee future results. The principal value of an investment and investment return will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.

INVESTMENT ADVISOR

FAF Advisors, Inc.

800 Nicollet Mall

Minneapolis, Minnesota 55402

ADMINISTRATOR

FAF Advisors, Inc.

800 Nicollet Mall

Minneapolis, Minnesota 55402

TRANSFER AGENT

U.S. Bancorp Fund Services, LLC

615 East Michigan Street

Milwaukee, Wisconsin 53202

CUSTODIAN

U.S. Bank National Association

60 Livingston Avenue

St. Paul, Minnesota 55101

DISTRIBUTOR

Quasar Distributors, LLC

615 East Michigan Street

Milwaukee, Wisconsin 53202

INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM

Ernst & Young LLP

220 South Sixth Street

Suite 1400

Minneapolis, Minnesota 55402

COUNSEL

Dorsey & Whitney LLP

50 South Sixth Street

Suite 1500

Minneapolis, Minnesota 55402

First American Funds

P.O. Box 1330

Minneapolis, MN 55440-1330

In an attempt to reduce shareholder costs and help eliminate duplication, First American Funds will try to limit their mailing to one report for each address that lists one or more shareholders with the same last name. If you would like additional copies, please call First American Investor Services at 800.677.FUND or visit firstamericanfunds.com.

0169-06 8/2006 AR-TAXFREEINCOME

Table of Contents

Message to Shareholders	1
Report of Independent Registered Public Accounting Firm	26
Schedule of Investments	27
Statements of Assets and Liabilities	56
Statements of Operations	60
Statements of Changes in Net Assets	62
Financial Highlights	66
Notes to Financial Statements	76
Notice to Shareholders	88

Mutual fund investing involves risk; principal loss is possible.

NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE

Message to SHAREHOLDERS August 14, 2006

Dear Shareholders:

We invite you to take a few minutes to review the results of the funds’ most recent fiscal period. Because the funds have changed their fiscal year-end from September 30 to June 30, this report covers the nine-month time period from October 1, 2005, through June 30, 2006.

This report includes comparative performance graphs and tables, portfolio commentaries, complete listings of portfolio holdings, and additional fund information. We hope you will find this helpful in monitoring your investment portfolio.

Also, through our website, firstamericanfunds.com, we provide quarterly performance fact sheets on all First American Funds, the economic outlook as viewed by our senior investment officers, and other information about fund investments and portfolio strategies.

Please contact your financial professional if you have questions about First American Funds or contact First American Investor Services at 800.677.FUND.

We appreciate your investment with First American Funds and look forward to serving your financial needs in the future.

Sincerely,

Virginia L. Stringer	Thomas S. Schreier, Jr.
Chairperson of the Board First American Investment Funds, Inc.	President First American Investment Funds, Inc.

First American Funds Annual Report 2006      1

Core Bond fund

Investment Objective: high current income consistent with limited risk to capital

How did the fund perform for the nine-month fiscal period ended June 30, 2006?

The First American Core Bond Fund (the “fund”), Class Y shares, returned -0.24% for the fiscal period ended June 30, 2006 (Class A shares returned -0.34% without taking the sales charge into account). By comparison, the fund’s benchmark, the Lehman Aggregate Bond Index*, returned -0.13% for the same period.

What were the general economic and market conditions during the fiscal period?

Economic growth continued at an average pace slightly above sustainable levels during the nine months ending June 30, 2006. Economic growth was volatile on a quarter-by-quarter basis, reflecting disruptions to economic activity associated with the hurricanes last fall and the stimulus provided by the subsequent recovery and rebuilding effort. Gross Domestic Product growth was strong enough to move the unemployment rate down to 4.6% from 5.0% nine months earlier.

The strength in economic activity, fewer excess resources in the economy, and elevated energy prices pushed core inflation measures higher during this period. The rise in inflation and the decline in unemployment resulted in the Federal Reserve (the “Fed”) lifting its target lending rate by 25 basis points at each of its policy meetings during the fiscal period to the current level of 5.25%. As a result of these rate increases, fixed income returns during the period were in general fairly meager. Interest rate increases caused the prices of existing securities to decline, and because yields were fairly low at the beginning of the period, there was very little income to offset these price declines, resulting in very low absolute returns. The latest readings on broad economic activity and key sectors of the economy suggest that Fed tightening has begun to have its desired effect, as economic growth slowed to a sustainable pace during the second quarter of 2006.

How did market conditions and investment strategies affect the fund’s performance?

Sustained Fed tightening, driven by robust economic growth and increasing price pressures, caused market interest rates to rise significantly across all maturities last fiscal period. The yield curve continued its flattening trend, becoming inverted in early 2006. Two key drivers of performance for the period were the fund’s defensive (shorter than index) duration posture, adopted to reduce risk as interest rates rose, and its strategic positioning for a flattening yield curve. Issue selection, primarily within the mortgage and corporate sectors, also helped performance. In addition, sector selection added value, primarily because of the fund’s overweight to structured assets (mortgage-backed securities, asset-backed securities, and commercial mortgage-backed securities) and corresponding underweight to corporate bonds.

What strategic moves were made by the fund and why?

During the fiscal period, we moderated the fund’s yield-curve flattening bias, gradually increasing the fund’s weighting in intermediate-term bonds in anticipation of a steepening of the yield curve following the end of the Fed’s tightening cycle. We also brought the fund’s duration closer to neutral as the fiscal period ended, after having been defensive for most of the period. Reflecting our view that high-quality mortgage-backed securities offered superior risk-adjusted returns, the fund was underweighted in investment-grade corporate bonds for most of the fiscal period, particularly those of higher quality (A- and AA-rated). Corporate issue-selection changes were guided by bottom-up research opportunities and evolving themes related to the maturing of the economic cycle.

* Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects.

Portfolio Allocation as of June 30, 2006¹  (% of net assets)

U.S. Government Agency Mortgage-Backed Securities	37.1	%
Asset-Backed Securities	20.2
U.S. Government & Agency Securities	17.1
Collateralized Mortgage Obligation – Private Mortgage-Backed Securities	12.3
Corporate Bonds	11.2
Collateralized Mortgage Obligation – U.S. Government Agency Mortgage-Backed Securities	3.6
Short-Term Investments	3.0
Other Assets and Liabilities, Net	(4.5	)
	100.0	%

Credit Quality Distribution as of June 30, 2006²  (% of market value)

AAA	85.5	%
AA	3.7
A	3.1
BBB	7.7
	100.0	%

1	Portfolio allocations are subject to change and are not recommendations to buy or sell any security.
2	Individual security ratings are based on information from Moody’s Investor Service, Standard & Poor’s, and/or Fitch. In the case of split ratings, the middle rating is used. If ratings are provided by only two rating agencies, the lower rating is used. If only one rating agency provides a rating, that rating is used.

2      First American Funds Annual Report 2006

Core Bond fund continued

Annual Performance¹  as of June 30, 2006

	Nine-								Since Inception
	Month
	Period*		1 year		5 years		10 years		2/01/1999		9/24/2001
Average annual return with sales charge (POP)
Class A		(4.54)%		(5.16)%		3.20%		4.86%		—		—
Class B		(5.71)%		(6.46)%		2.97%		4.55%		—		—
Class C		(1.97)%		(2.77)%		3.31%		—		3.49%		—
Average annual return without sales charge (NAV)
Class A		(0.34)%		(0.98)%		4.10%		5.32%		—		—
Class B		(0.91)%		(1.73)%		3.31%		4.55%		—		—
Class C		(1.01)%		(1.83)%		3.31%		—		3.49%		—
Class R		(0.51)%		(1.19)%		—		—		—		3.38%
Class Y		(0.24)%		(0.82)%		4.34%		5.58%		—		—
Lehman Aggregate Bond Index2		(0.13)%		(0.81)%		4.97%		6.22%		5.21%		4.37%

Value of $10,000 Investment^{1, 3}  as of June 30, 2006

Core Bond Fund, Class A (NAV)		$	16,527
Core Bond Fund, Class A (POP)		$	15,822
Core Bond Fund, Class Y		$	16,932
Lehman Aggregate Bond Index2		$	17,948

Class A

Class Y

The chart above illustrates the total value of an assumed $10,000 investment in the fund’s Class A and Class Y shares (from 9/30/1996 to 6/30/2006) as compared to the Lehman Aggregate Bond Index².

The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.

*  Total returns have not been annualized.

¹  Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Investment performance reflects fee waivers that are or were in effect. In the absence of such fee waivers, total returns would be reduced. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available.

Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV.

Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 4.25% for Class A shares and the maximum contingent deferred sales charge (“CDSC”) for Class B and Class C shares for the relevant period. Maximum CDSC is 5.00% for Class B shares, decreasing annually to 0% in the seventh year following purchase, and 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV.

Investments in debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities.

2

An unmanaged index comprised of the Lehman Government/ Credit Bond Index, the Lehman Mortgage Backed Securities Index, and the Lehman Asset Backed Securities Index. The Lehman Government/ Credit Bond Index is comprised of Treasury securities, other securities issued or guaranteed by the U.S. Government or its agencies or instrumentalities, including U.S. agency mortgage securities, and investment-grade corporate debt securities. The Lehman Mortgage Backed Securities Index is comprised of the mortgage-backed pass-through securities of Ginnie Mae, Fannie Mae, and Freddie Mac. The Lehman Asset Backed Securities Index is comprised of debt securities rated investment grade or higher that are backed by credit card, auto, and home equity loans.

3

Performance for Class B, Class C, and Class R shares is not presented. Performance for these classes will vary due to different expense structures.

First American Funds Annual Report 2006      3

Core Bond fund continued

Expense Example

As a shareholder of the Core Bond Fund (the “fund”), you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments; and (2) ongoing costs, including investment advisory fees, distribution and/or service (12b-1) fees, and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from January 1, 2006, to June 30, 2006.

Actual Expenses

For each class, the first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

For each class, the second line of the table below provides information about hypothetical account values and hypothetical expenses based on the fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line of the table for each class is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

Expense Examples

					Expenses Paid During
	Beginning Account		Ending Account		Period1 (1/01/06 to
	Value (1/01/06)		Value (6/30/06)		6/30/06)
Class A Actual2	$	1,000.00	$	991.30	$	4.69
Class A Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.08	$	4.76
Class B Actual2	$	1,000.00	$	987.50	$	8.38
Class B Hypothetical (5% return before expenses)	$	1,000.00	$	1,016.36	$	8.50
Class C Actual2	$	1,000.00	$	986.60	$	8.37
Class C Hypothetical (5% return before expenses)	$	1,000.00	$	1,016.36	$	8.50
Class R Actual2	$	1,000.00	$	990.20	$	5.92
Class R Hypothetical (5% return before expenses)	$	1,000.00	$	1,018.84	$	6.01
Class Y Actual2	$	1,000.00	$	991.70	$	3.46
Class Y Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.32	$	3.51

1	Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.95%, 1.70%, 1.70%, 1.20%, and 0.70% for Class A, Class B, Class C, Class R, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period).
2	Based on the actual returns for the six-month period ended June 30, 2006 of -0.87%,-1.25%, -1.34%, -0.98%, and -0.83% for Class A, Class B, Class C, Class R, and Class Y, respectively.

4      First American Funds Annual Report 2006

High Income Bond fund

Investment Objective: high current income

How did the fund perform for the nine-month fiscal period ended June 30, 2006?

The First American High Income Bond Fund (the “fund”), Class Y shares, returned 3.34% for the fiscal period ended June 30, 2006 (Class A shares returned 3.14% without taking the sales charge into account). By comparison, the fund’s benchmark, the Lehman High Yield 2% Issuer Capped Index*, returned 3.36% for the same period.

What were the general economic and market conditions during the fiscal period?

Economic growth continued at an average pace slightly above sustainable levels during the nine months ending June 30, 2006. Economic growth was volatile on a quarter-by-quarter basis, reflecting disruptions to economic activity associated with the hurricanes last fall and the stimulus provided by the subsequent recovery and rebuilding effort. Gross Domestic Product growth was strong enough to move the unemployment rate down to 4.6% from 5.0% nine months earlier.

The strength in economic activity, fewer excess resources in the economy, and elevated energy prices pushed core inflation measures higher during this period. The rise in inflation and the decline in unemployment resulted in the Federal Reserve (the “Fed”) lifting its target lending rate by 25 basis points at each of its policy meetings during the fiscal period to the current level of 5.25%. The latest readings on broad economic activity and key sectors of the economy suggest that Fed tightening has begun to have its desired effect, as economic growth slowed to a sustainable pace during the second quarter of 2006.

How did market conditions and investment strategies affect the fund’s performance?

Throughout the fiscal period, high-yield bonds were fully valued, which limited potential performance. Spreads over Treasuries were relatively narrow at the beginning of the period, particularly for higher-quality high yield, and narrowed further throughout the period. Coupon income, combined with the spread-tightening, helped high yield to be one of the best fixed-income performers in a period of steadily rising interest rates, even though absolute returns were less than stellar.

Prior to the beginning of the fiscal period, we had improved the average quality of the portfolio and underweighted CCC-rated holdings in anticipation of a down phase in the credit cycle, which, however, never occurred. Instead, as CCCs outperformed higher-quality high yield by a fairly wide margin, the fund experienced weaker performance. On the other hand, emerging market exposure provided substantial diversification benefits to the portfolio, particularly in the first eight months of the fiscal period.

Individual security selection accounted for the lion’s share of performance. Timely overweights in bonds issued by General Motors, Lazard, Polyone, and American Airlines provided a lift. On the negative side, overweights to Inn of the Mountain Gods, Imax, Magnachip Semi, and Time Warner Telecom detracted from the fund’s performance.

What strategic moves were made by the fund and why?

We initiated several small positions in closed-end funds, primarily to gain access to leveraged loans. We augmented our portfolio of “busted” convertibles, which trade at fairly high yields but have some equity potential. (A “busted” convertible is a security for which the market price of the common stock is so low that the convertible feature is nearly worthless, and the security trades almost as if it were a fixed-income investment). We began investing in royalty trusts (securities that provide investors with income from royalties associated with the sale of oil and/or natural gas) for their large yields and possible upside in this environment of high energy prices. Together, these areas accounted for just a few percentage points of the overall portfolio, but they did provide alternative avenues for achieving high yields at a time when the high-yield market appeared to be richly valued.

* Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects.

Portfolio Allocation as of June 30, 2006¹  (% of net assets)

High Yield Corporate Bonds	91.1	%
Closed-End Funds	1.9
Asset-Backed Securities	1.5
Preferred Stock	1.0
High Grade Corporate Bonds	0.7
Common Stocks	0.5
Short-Term Investments	0.6
Other Assets and Liabilities, Net	2.7
	100.0	%

Credit Quality Distribution as of June 30, 2006²  (% of market value)

AAA	2.1	%
BBB	1.5
BB	34.4
B	45.8
CCC	11.6
D	0.1
Non-Rated	4.5
	100.0	%

1	Portfolio allocations are subject to change and are not recommendations to buy or sell any security.
2	Individual security ratings are based on information from Moody’s Investor Service, Standard & Poor’s, and/or Fitch. In the case of split ratings, the middle rating is used. If ratings are provided by only two rating agencies, the lower rating is used. If only one rating agency provides a rating, that rating is used.

First American Funds Annual Report 2006      5

High Income Bond fund continued

Annual Performance¹  as of June 30, 2006

	Nine-				Since Inception
	Month
	Period*		1 year		8/30/2001		9/24/2001
Average annual return with sales charge (POP)
Class A		(1.26)%		(0.20)%		5.27%		—
Class B		(2.33)%		(1.41)%		5.18%		—
Class C		1.58%		2.47%		5.44%		—
Average annual return without sales charge (NAV)
Class A		3.14%		4.22%		6.22%		—
Class B		2.57%		3.46%		5.49%		—
Class C		2.56%		3.45%		5.44%		—
Class R		3.09%		4.05%		—		7.26%
Class Y		3.34%		4.49%		6.51%		—
Lehman High Yield 2% Issuer Capped Index2		3.36%		4.38%		8.62%		8.51%
Lehman High Yield Index3		5.17%		4.80%		8.42%		9.74%

Value of $10,000 Investment^{1, 4}  as of June 30, 2006

High Income Bond Fund, Class A (NAV)		$	13,383
High Income Bond Fund, Class A (POP)		$	12,815
High Income Bond Fund, Class Y		$	13,564
Lehman High Yield 2% Issuer Capped Index2		$	14,843
Lehman High Yield Index3		$	14,741

Class A

Class Y

The chart above illustrates the total value of an assumed $10,000 investment in the fund’s Class A and Class Y shares (from 8/30/2001 to 6/30/2006) as compared to the Lehman High Yield 2% Issuer Capped Index² and the Lehman High Yield Index³.

The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.

* Total returns have not been annualized.

¹  Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Investment performance reflects fee waivers that are or were in effect. In the absence of such fee waivers, total returns would be reduced. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available.

The fund invests in lower-rated and non-rated securities which present a greater risk of loss to principal and interest than higher-rated securities.

Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV.

Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 4.25% for Class A shares and the maximum contingent deferred sales charge (“CDSC”) for Class B and Class C shares for the relevant period. Maximum CDSC is 5.00% for Class B shares, decreasing annually to 0% in the seventh year following purchase, and 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV.

2	An unmanaged index that covers the universe of fixed-rate, dollar-denominated, below-investment-grade debt with at least one year to final maturity with total index allocation to an individual issuer being limited to 2%. Previously, the fund used the Lehman Corporate High Yield Index as a benchmark. Currently the fund uses the Lehman High Yield 2% Issuer Capped index as a comparison, because its composition better matches the fund’s investment strategies.
3	An unmanaged index that covers the universe of fixed-rate, dollar-denominated, below-investment-grade debt with at least one year to final maturity. Payment-in-kind bonds, Eurobonds, and emerging markets debt securities are excluded, but SEC-registered Canadian and global bonds of issuers in non-emerging countries are included. Original issue zero coupon bonds, step-up coupon structures, and Rule 144A securities are also included.
4	Performance for Class B, Class C, and Class R shares is not presented. Performance for these classes will vary due to different expense structures.

6      First American Funds Annual Report 2006

High Income Bond fund continued

Expense Example

As a shareholder of the High Income Bond Fund (the “fund”), you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments; and (2) ongoing costs, including investment advisory fees, distribution and/or service (12b-1) fees, and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from January 1, 2006, to June 30, 2006.

Actual Expenses

For each class, the first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

For each class, the second line of the table below provides information about hypothetical account values and hypothetical expenses based on the fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line of the table for each class is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

Expense Examples

					Expenses Paid During
	Beginning Account		Ending Account		Period1 (1/01/06 to
	Value (1/01/06)		Value (6/30/06)		6/30/06)
Class A Actual2	$	1,000.00	$	1,019.70	$	5.51
Class A Hypothetical (5% return before expenses)	$	1,000.00	$	1,019.34	$	5.51
Class B Actual2	$	1,000.00	$	1,015.90	$	9.25
Class B Hypothetical (5% return before expenses)	$	1,000.00	$	1,015.62	$	9.25
Class C Actual2	$	1,000.00	$	1,015.90	$	9.25
Class C Hypothetical (5% return before expenses)	$	1,000.00	$	1,015.62	$	9.25
Class R Actual2	$	1,000.00	$	1,019.90	$	6.76
Class R Hypothetical (5% return before expenses)	$	1,000.00	$	1,018.10	$	6.76
Class Y Actual2	$	1,000.00	$	1,022.10	$	4.26
Class Y Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.58	$	4.26

1	Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 1.10%, 1.85%, 1.85%, 1.35%, and 0.85% for Class A, Class B, Class C, Class R, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period).
2	Based on the actual returns for the six-month period ended June 30, 2006 of 1.97%, 1.59%, 1.59%, 1.99%, and 2.21% for Class A, Class B, Class C, Class R, and Class Y, respectively.

First American Funds Annual Report 2006      7

Inflation Protected Securities fund

Investment Objective: provide investors with total return while providing protection against inflation

How did the fund perform for the nine-month fiscal period ended June 30, 2006?

The First American Inflation Protected Securities Fund (the “fund”) Class Y shares, returned -1.50% for the fiscal period ended June 30, 2006 (Class A shares returned -1.69% without taking the sales charge into account). By comparison, the fund’s benchmark, the Lehman Treasury Inflation Protected Securities Index*, returned -1.65% for the same period.

What were the general economic and market conditions during the fiscal period?

Economic growth continued at an average pace slightly above sustainable levels during the nine months ending June 30, 2006. Economic growth was volatile on a quarter-by-quarter basis, reflecting disruptions to economic activity associated with the hurricanes last fall and the stimulus provided by the subsequent recovery and rebuilding effort. Gross Domestic Product growth was strong enough to move the unemployment rate down to 4.6% from 5.0% nine months earlier.

The strength in economic activity, fewer excess resources in the economy, and elevated energy prices pushed core inflation measures higher during this period. The rise in inflation and the decline in unemployment resulted in the Federal Reserve (the “Fed”) lifting its target lending rate by 25 basis points at each of its policy meetings during the fiscal period to the current level of 5.25%. As a result of these rate increases, fixed income returns during the period were in general fairly meager. Interest rate increases caused the prices of existing securities to decline, and because yields were fairly low at the beginning of the period, there was very little income to offset these price declines, resulting in very low absolute returns. The latest readings on broad economic activity and key sectors of the economy suggest that Fed tightening has begun to have its desired effect, as economic growth slowed to a sustainable pace during the second quarter of 2006.

How did market conditions and investment strategies affect the fund’s performance?

Treasury Inflation-Protected Securities (TIPS) performed well during the fiscal period on a relative basis, outperforming comparable-duration regular treasuries by 144 basis points. Higher inflation levels resulted in upward adjustments to TIPS coupon income and higher inflation expectations. To reduce the risk in a rising rate environment, we kept the fund’s duration shorter than that of its benchmark, a strategy that contributed strongly to performance. We employed a barbell portfolio structure that emphasized shorter and longer term securities, while reducing the fund’s weighting in intermediate maturity securities. The fund’s bias toward bonds with longer maturities added value as yields on the longer end of the Treasury curve rose less than for intermediate maturities. The fund also benefited from its non dollar positions, most notably during the first half of 2006, when the dollar lost 6.5% of its value on a trade-weighted basis. The fund’s allocation to high-yield/emerging market bonds and mortgage-backed securities also proved beneficial, as these issues enjoyed strong performance during the fiscal period.

What strategic moves were made by the fund and why?

After a period of strong performance, we reduced our overweight to short-maturity TIPS in anticipation of the lower inflation adjustments that typically occur in the fourth quarter — a scenario that is less favorable for shorter-maturity TIPS. We added to our position in long-maturity TIPS with the expectation that, with the end of Fed tightening, inflation expectations will rise, increasing the value of these securities. The fund retained its shorter-duration strategy, given market-rate levels that appeared inconsistent with economic fundamentals. In anticipation of a weaker dollar, we maintained our non-dollar position in the portfolio.

* Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects.

Portfolio Allocation as of June 30, 2006¹  (% of net assets)

U.S. Government & Agency Securities	91.2	%
Corporate Bonds	3.1
Asset-Backed Securities	2.9
Collateralized Mortgage Obligation – U.S. Government Agency Mortgage-Backed Securities	0.3
Municipal Bond	0.3
Short-Term Investments	1.5
Other Assets and Liabilities, Net	0.7
	100.0	%

Credit Quality Distribution as of June 30, 2006²  (% of market value)

AAA	96.7	%
A	1.2
BBB	0.3
BB	1.6
Non-Rated	0.2
	100.0	%

1	Portfolio allocations are subject to change and are not recommendations to buy or sell any security.
2	Individual security ratings are based on information from Moody’s Investor Service, Standard & Poor’s, and/or Fitch. In the case of split ratings, the middle rating is used. If ratings are provided by only two rating agencies, the lower rating is used. If only one rating agency provides a rating, that rating is used.

8      First American Funds Annual Report 2006

Inflation Protected Securities fund continued

Annual Performance¹  as of June 30, 2006

					Since Inception
	Nine-
	Month
	Period*		1 year		10/01/2004
Average annual return with sales charge (POP)
Class A		(5.87)%		(6.08)%		(0.68)%
Class C		(3.20)%		(3.46)%		1.05%
Average annual return without sales charge (NAV)
Class A		(1.69)%		(1.88)%		1.80%
Class C		(2.26)%		(2.53)%		1.05%
Class R		(1.80)%		(1.94)%		1.67%
Class Y		(1.50)%		(1.53)%		2.09%
Lehman Treasury Inflation Protected Securities Index2		(1.65)%		(1.64)%		2.35%

Value of $10,000 Investment^{1, 3}  as of June 30, 2006

Inflation Protected Securities Fund, Class A (NAV)		$	10,316
Inflation Protected Securities Fund, Class A (POP)		$	9,881
Inflation Protected Securities Fund, Class Y		$	10,367
Lehman Treasury Inflation Protected Securities Index2		$	10,413

Class A

Class Y

The chart above illustrates the total value of an assumed $10,000 investment in the fund’s Class A and Class Y shares (from 10/01/2004 to 6/30/2006) as compared to the Lehman Treasury Inflation Protected Securities Index².

The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.

* Total returns have not been annualized.

¹  Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Investment performance reflects fee waivers that are or were in effect. In the absence of such fee waivers, total returns would be reduced. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available.

Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV.

Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 4.25% for Class A Shares and the maximum contingent deferred sales charge (“CDSC”) for Class C shares for the relevant period. Maximum CDSC is 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV.

Investments in debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities.

2	An unmanaged index comprised of inflation-protected securities issued by the U.S. Treasury that have at least one year to final maturity, at least $250 million par amount outstanding, and are investment-grade rated (Baa or better).
3	Performance for Class C and Class R shares is not presented. Performance for these classes will vary due to different expense structures.

First American Funds Annual Report 2006      9

Inflation Protected Securities fund continued

Expense Example

As a shareholder of the Inflation Protected Securities Fund (the “fund”), you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments; and (2) ongoing costs, including investment advisory fees, distribution and/or service (12b-1) fees, and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from January 1, 2006, to June 30, 2006.

Actual Expenses

For each class, the first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

For each class, the second line of the table below provides information about hypothetical account values and hypothetical expenses based on the fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line of the table for each class is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

Expense Examples

					Expenses Paid During
	Beginning Account		Ending Account		Period1 (1/01/06 to
	Value (1/01/06)		Value (6/30/06)		6/30/06)
Class A Actual2	$	1,000.00	$	983.40	$	4.18
Class A Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.58	$	4.26
Class C Actual2	$	1,000.00	$	979.60	$	7.85
Class C Hypothetical (5% return before expenses)	$	1,000.00	$	1,016.86	$	8.00
Class R Actual2	$	1,000.00	$	982.70	$	5.95
Class R Hypothetical (5% return before expenses)	$	1,000.00	$	1,018.79	$	6.06
Class Y Actual2	$	1,000.00	$	984.80	$	2.95
Class Y Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.82	$	3.01

1	Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.85%, 1.60%, 1.20%, and 0.60% for Class A, Class C, Class R, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period).
2	Based on the actual returns for the six-month period ended June 30, 2006 of -1.66%, -2.04%, -1.73%, and -1.52% for Class A, Class C, Class R, and Class Y, respectively.

10      First American Funds Annual Report 2006

Intermediate Government Bond fund

Investment Objective: provide investors with current income that is exempt from state income tax, to the extent consistent with the preservation of capital

How did the fund perform for the nine-month fiscal period ended June 30, 2006?

The First American Intermediate Government Bond Fund (the “fund”), Class Y shares, returned 0.30% for the fiscal period ended June 30, 2006 (Class A shares returned 0.06% without taking the sales charge into account). By comparison, the fund’s benchmark, the Lehman Intermediate Treasury Bond Index*, returned 0.58% for the same period.

What were the general economic and market conditions during the fiscal period?

Economic growth continued at an average pace slightly above sustainable levels during the nine months ending June 30, 2006. Economic growth was volatile on a quarter-by-quarter basis, reflecting disruptions to economic activity associated with the hurricanes last fall and the stimulus provided by the subsequent recovery and rebuilding effort. Gross Domestic Product growth was strong enough to move the unemployment rate down to 4.6% from 5.0% nine months earlier.

The strength in economic activity, fewer excess resources in the economy, and elevated energy prices pushed core inflation measures higher during this period. The rise in inflation and the decline in unemployment resulted in the Federal Reserve (the “Fed”) lifting its target lending rate by 25 basis points at each of its policy meetings during the fiscal period to the current level of 5.25%. As a result of these rate increases, fixed income returns during the period were in general fairly meager. Interest rate increases caused the prices of existing securities to decline, and because yields were fairly low at the beginning of the period, there was very little income to offset these price declines, resulting in very low absolute returns. The latest readings on broad economic activity and key sectors of the economy suggest that Fed tightening has begun to have its desired effect, as economic growth slowed to a sustainable pace during the second quarter of 2006.

How did market conditions and investment strategies affect the fund’s performance?

Positioning for yield-curve flattening through early 2006 contributed strongly to performance. Our tactical duration strategy, centered on being defensive – i.e., shorter than the benchmark – to reduce risk in a rising-rate environment, also helped as rates rose roughly 125 basis points across the yield curve. An overweight to agency bonds, which performed well this fiscal period, was another significant source of added value.

What strategic moves were made by the fund and why?

The fund increased its holdings in agency securities, given the view that agencies should perform well with the end of Fed tightening, constrained supply from Federal National Mortgage Association and Federal Home Loan Mortgage Corporation, and continued strong investor appetite for non-Treasury products in general. In anticipation of a steepening of the yield curve following the end of the Fed’s tightening cycle, we have begun to increase the fund’s weighting in bonds with maturities ranging from two to five years. We continue to approach the fund’s duration tactically, remaining modestly short relative to the index.

* Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects.

Portfolio Allocation as of June 30, 2006¹  (% of net assets)

U.S. Government & Agency Securities	99.5	%
Short-Term Investment	0.5
	100.0	%

Credit Quality Distribution as of June 30, 2006²  (% of market value)

AAA 100.0 %

1	Portfolio allocations are subject to change and are not recommendations to buy or sell any security.
2	Individual security ratings are based on information from Moody’s Investor Service, Standard & Poor’s, and/or Fitch. In the case of split ratings, the middle rating is used. If ratings are provided by only two rating agencies, the lower rating is used. If only one rating agency provides a rating, that rating is used.

First American Funds Annual Report 2006      11

Intermediate Government Bond fund continued

Annual Performance¹  as of June 30, 2006

	Nine-
	Month				Since Inception
	Period*		1 year		10/25/2002
Average annual return with sales charge (POP)
Class A		(2.19)%		(2.64)%		0.99%
Average annual return without sales charge (NAV)
Class A		0.06%		(0.43)%		1.61%
Class Y		0.30%		(0.28)%		1.76%
Lehman Intermediate Treasury Bond Index2		0.58%		(0.19)%		1.98%

Value of $10,000 Investment¹  as of June 30, 2006

Intermediate Government Bond Fund, Class A (NAV)		$	10,607
Intermediate Government Bond Fund, Class A (POP)		$	10,369
Intermediate Government Bond Fund, Class Y		$	10,664
Lehman Intermediate Treasury Bond Index2		$	10,747

Class A

Class Y

The chart above illustrates the total value of an assumed $10,000 investment in the fund’s Class A and Class Y shares (from 10/25/2002 to 6/30/2006) as compared to the Lehman Intermediate Treasury Bond Index².

The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.

*  Total returns have not been annualized.

¹  Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Investment performance reflects fee waivers that are or were in effect. In the absence of such fee waivers, total returns would be reduced. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available.

Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV.

Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 2.25% for Class A Shares. Total returns assume reinvestment of all distributions at NAV.

Investments in debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities.

²  An unmanaged index comprised of public obligations of the U.S. Treasury with a remaining maturity between one and 10 years.

12      First American Funds Annual Report 2006

Intermediate Government Bond fund continued

Expense Example

As a shareholder of the Intermediate Government Bond Fund (the “fund”), you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments; and (2) ongoing costs, including investment advisory fees, distribution and/or service (12b-1) fees, and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from January 1, 2006, to June 30, 2006.

Actual Expenses

For each class, the first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

For each class, the second line of the table below provides information about hypothetical account values and hypothetical expenses based on the fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line of the table for each class is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

Expense Examples

					Expenses Paid During
	Beginning Account		Ending Account		Period1 (1/01/06 to
	Value (1/01/06)		Value (6/30/06)		6/30/06)
Class A Actual2	$	1,000.00	$	996.20	$	3.71
Class A Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.08	$	3.76
Class Y Actual2	$	1,000.00	$	996.90	$	2.97
Class Y Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.82	$	3.01

1	Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.75% and 0.60% for Class A and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period).
2	Based on the actual returns for the six-month period ended June 30, 2006 of -0.38% and -0.31% for Class A and Class Y, respectively.

First American Funds Annual Report 2006      13

Intermediate Term Bond fund

Investment Objective: current income to the extent consistent with preservation of capital

How did the fund perform for the nine-month fiscal period ended June 30, 2006?

The First American Intermediate Term Bond Fund (the “fund”), Class Y shares, returned 0.34% for the fiscal period ended June 30, 2006 (Class A shares returned 0.23% without taking the sales charge into account). By comparison, the fund’s benchmark, the Lehman Intermediate Government/ Credit Bond Index*, returned 0.34% for the same period.

What were the general economic and market conditions during the fiscal period?

Economic growth continued at an average pace slightly above sustainable levels during the nine months ending June 30, 2006. Economic growth was volatile on a quarter-by-quarter basis, reflecting disruptions to economic activity associated with the hurricanes last fall and the stimulus provided by the subsequent recovery and rebuilding effort. Gross Domestic Product growth was strong enough to move the unemployment rate down to 4.6% from 5.0% nine months earlier.

The strength in economic activity, fewer excess resources in the economy, and elevated energy prices pushed core inflation measures higher during this period. The rise in inflation and the decline in unemployment resulted in the Federal Reserve (the “Fed”) lifting its target lending rate by 25 basis points at each of its policy meetings during the fiscal period to the current level of 5.25%. As a result of these rate increases, fixed income returns during the period were in general fairly meager. Interest rate increases caused the prices of existing securities to decline, and because yields were fairly low at the beginning of the period, there was very little income to offset these price declines, resulting in very low absolute returns. The latest readings on broad economic activity and key sectors of the economy suggest that Fed tightening has begun to have its desired effect, as economic growth slowed to a sustainable pace during the second quarter of 2006.

How did market conditions and investment strategies affect the fund’s performance?

Our tactical duration strategy, centered on being defensive – i.e., shorter than the benchmark – to reduce risk in a rising-rate environment, contributed strongly to performance, as did the fund’s positioning to take advantage of the flattening yield curve. The fund’s significant allocation to high-quality structured products – like mortgage-backed, commercial mortgage-backed, and asset-backed securities – paid off, as these sectors performed well, offsetting the fund’s underweights in corporate and government bonds. Our overweight in BBB rated securities brought solid gains at the start of the fiscal period, when these issues enjoyed strong performance.

What strategic moves were made by the fund and why?

The fund maintained a sizeable underweight in corporate bonds because, while corporate earnings growth was strong, the reward for credit risk was not compelling, especially in an environment increasingly characterized by shareholder friendly activity on the part of issuers (leveraged buyouts, share buybacks, etc.). The fund also maintained an overweight in structured securities as a defensive way to maintain income in the portfolio (these securities are higher rated and do not present issuer-specific risks associated with corporate bonds). In anticipation of a steepening of the yield curve following the end of the Fed’s tightening cycle, we have begun to increase the fund’s weighting in bonds with maturities ranging from two to five years. We continued to approach the fund’s duration tactically, remaining modestly defensive relative to the index.

* Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects.

Portfolio Allocation as of June 30, 2006¹  (% of net assets)

Asset-Backed Securities	30.8	%
U.S. Government & Agency Securities	27.4
Corporate Bonds	17.4
Collateralized Mortgage Obligation – Private Mortgage-Backed Securities	12.8
U.S. Government Agency Mortgage-Backed Securities	5.6
Collateralized Mortgage Obligation – U.S. Government Agency Mortgage-Backed Securities	4.9
Municipal Bond	0.2
Short-Term Investment	0.1
Other Assets and Liabilities, Net	0.8
	100.0	%

Credit Quality Distribution as of June 30, 2006²  (% of market value)

AAA	78.9	%
AA	4.5
A	6.2
BBB	10.2
Non-Rated	0.2
	100.0	%

1	Portfolio allocations are subject to change and are not recommendations to buy or sell any security.
2	Individual security ratings are based on information from Moody’s Investor Service, Standard & Poor’s, and/or Fitch. In the case of split ratings, the middle rating is used. If ratings are provided by only two rating agencies, the lower rating is used. If only one rating agency provides a rating, that rating is used.

14      First American Funds Annual Report 2006

Intermediate Term Bond fund continued

Annual Performance¹  as of June 30, 2006

	Nine-
	Month
	Period*		1 year		5 years		10 years
Average annual return with sales charge (POP)
Class A		(2.03)%		(2.57)%		3.37%		5.00%
Average annual return without sales charge (NAV)
Class A		0.23%		(0.36)%		3.84%		5.23%
Class Y		0.34%		(0.21)%		4.01%		5.44%
Lehman Intermediate Government/ Credit Bond Index2		0.34%		(0.18)%		4.62%		5.81%

Value of $10,000 Investment¹  as of June 30, 2006

Intermediate Term Bond Fund, Class A (NAV)		$	16,105
Intermediate Term Bond Fund, Class A (POP)		$	15,750
Intermediate Term Bond Fund, Class Y		$	16,427
Lehman Intermediate Government/ Credit Bond Index2		$	16,979

Class A

Class Y

The chart above illustrates the total value of an assumed $10,000 investment in the fund’s Class A and Class Y shares (from 10/31/1996 to 6/30/2006) as compared to the Lehman Intermediate Government/Credit Bond Index².

The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.

*

Total returns have not been annualized.

¹  Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Investment performance reflects fee waivers that are or were in effect. In the absence of such fee waivers, total returns would be reduced. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available.

Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV.

Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 2.25% for Class A shares for the relevant period. Total returns assume reinvestment of all distributions at NAV.

Investments in debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities.

²  An unmanaged index of Treasury Securities, other securities issued or guaranteed by the U.S. Government or its agencies or instrumentalities, and investment-grade corporate debt securities. In each case with maturities of one to 10 years.

First American Funds Annual Report 2006      15

Intermediate Term Bond fund continued

Expense Example

As a shareholder of the Intermediate Term Bond Fund (the “fund”), you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments; and (2) ongoing costs, including investment advisory fees, distribution and/or service (12b-1) fees, and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from January 1, 2006, to June 30, 2006.

Actual Expenses

For each class, the first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

For each class, the second line of the table below provides information about hypothetical account values and hypothetical expenses based on the fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line of the table for each class is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

Expense Examples

					Expenses Paid During
	Beginning Account		Ending Account		Period1 (1/01/06 to
	Value (1/01/06)		Value (6/30/06)		6/30/06)
Class A Actual2	$	1,000.00	$	997.70	$	3.71
Class A Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.08	$	3.76
Class Y Actual2	$	1,000.00	$	998.50	$	2.97
Class Y Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.82	$	3.01

1	Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.75% and 0.60% for Class A and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period).
2	Based on the actual returns for the six-month period ended June 30, 2006 of -0.23% and -0.15% for Class A and Class Y, respectively.

16      First American Funds Annual Report 2006

Short Term Bond fund

Investment Objective: current income while maintaining a high degree of principal stability

How did the fund perform for the nine-month fiscal period ended June 30, 2006?

The First American Short Term Bond Fund (the “fund”) Class Y shares returned 1.87% for the fiscal period ended June 30, 2006 (Class A shares returned 1.75% without taking the sales charge into account). By comparison, the fund’s benchmark, the Lehman 1-3 Year Government/ Credit Bond Index*, returned 1.79% for the same period.

What were the general economic and market conditions during the fiscal period?

Economic growth continued at an average pace slightly above sustainable levels during the nine months ending June 30, 2006. Economic growth was volatile on a quarter-by-quarter basis, reflecting disruptions to economic activity associated with the hurricanes last fall and the stimulus provided by the subsequent recovery and rebuilding effort. Gross Domestic Product growth was strong enough to move the unemployment rate down to 4.6% from 5.0% nine months earlier.

The strength in economic activity, fewer excess resources in the economy, and elevated energy prices pushed core inflation measures higher during this period. The rise in inflation and the decline in unemployment resulted in the Federal Reserve (the “Fed”) lifting its target lending rate by 25 basis points at each of its policy meetings during the fiscal period to the current level of 5.25%. As a result of these rate increases, fixed income returns during the period were in general fairly meager. Interest rate increases caused the prices of existing securities to decline, and because yields were fairly low at the beginning of the period, there was very little income to offset these price declines, resulting in very low absolute returns. The latest readings on broad economic activity and key sectors of the economy suggest that Fed tightening has begun to have its desired effect, as economic growth slowed to a sustainable pace during the second quarter of 2006.

How did market conditions and investment strategies affect the fund’s performance?

With its emphasis on short-term securities, the fund’s strategy is defensive, seeking to minimize risk to income from rate changes over the long term. Unfortunately, the relentless tightening of monetary policy had a profoundly negative impact on the short end of the yield curve, and the overall returns for the fund were quite modest on an absolute basis. Fund performance benefited from a combination of sector weighting, duration strategy, and yield-curve positioning. The fund’s short duration, reducing risk as interest rates rose, helped performance as the portfolio was strategically defensive amidst the Fed tightening campaign. We generated income by overweighting sectors not included in the fund’s benchmark index; in this space, an overweight to asset-backed securities and commercial mortgage-backed securities proved beneficial, as they outpaced other market sectors during the fiscal period. An overweight to short-term mortgage products also added value.

What strategic moves were made by the fund and why?

The fund maintained a defensive duration – i.e., shorter than the fund’s benchmark – given market-rate levels that seemed inconsistent with both current and expected Fed fund rates. The fund had a significant underweight to Treasuries and agencies because valuations on most short-duration non-government sectors – i.e., mortgage- and asset-backed securities and corporate debt securities – offered more compelling risk/reward opportunities. Our substantial overweight to short asset-backed securities and commercial mortgage-backed securities served as a way to maintain income in the portfolio.

* Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects.

Portfolio Allocation as of June 30, 2006¹  (% of net assets)

Asset-Backed Securities	34.8	%
U.S. Government Agency Mortgage-Backed Securities	16.5
U.S. Government & Agency Securities	14.5
Corporate Bonds	13.8
Collateralized Mortgage Obligation – Private Mortgage-Backed Securities	11.7
Collateralized Mortgage Obligation – U.S. Government Agency Mortgage-Backed Securities	6.8
Short-Term Investments	1.6
Other Assets and Liabilities, Net	0.3
	100.0	%

Credit Quality Distribution as of June 30, 2006²  (% of market value)

AAA	79.9	%
AA	5.8
A	5.0
BBB	8.9
BB	0.4
	100.0	%

1	Portfolio allocations are subject to change and are not recommendations to buy or sell any security.
2	Individual security ratings are based on information from Moody’s Investor Service, Standard & Poor’s, and/or Fitch. In the case of split ratings, the middle rating is used. If ratings are provided by only two rating agencies, the lower rating is used. If only one rating agency provides a rating, that rating is used.

First American Funds Annual Report 2006      17

Short Term Bond fund continued

Annual Performance¹  as of June 30, 2006

	Nine-
	Month
	Period*		1 year		5 years		10 years
Average annual return with sales charge (POP)
Class A		(0.55)%		(0.28)%		2.34%		4.26%
Average annual return without sales charge (NAV)
Class A		1.75%		2.02%		2.80%		4.50%
Class Y		1.87%		2.07%		2.96%		4.60%
Lehman 1-3 Year Government/ Credit Bond Index2		1.79%		1.92%		3.50%		5.03%

Value of a $10,000 Investment¹  as of June 30, 2006

Short Term Bond Fund, Class A (NAV)		$	15,284
Short Term Bond Fund, Class A (POP)		$	14,937
Short Term Bond Fund, Class Y		$	15,429
Lehman 1-3 Year Government/ Credit Bond Index2		$	16,062

Class A

Class Y

The chart above illustrates the total value of an assumed $10,000 investment in the fund’s Class A and Class Y shares (from 9/30/1996 to 6/30/2006) as compared to the Lehman 1-3 Year Government/Credit Bond Index².

The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.

* Total returns have not been annualized.

¹  Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Investment performance reflects fee waivers that are or were in effect. In the absence of such fee waivers, total returns would be reduced. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available.

Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV.

Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 2.25% for Class A shares for the relevant period. Total returns assume reinvestment of all distributions at NAV.

Investments in debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities.

²  An unmanaged index of one-to-three-year Treasury securities, other securities issued or guaranteed by the U.S. Government or its agencies or instrumentalities, and investment-grade corporate debt securities.

18      First American Funds Annual Report 2006

Short Term Bond fund continued

Expense Example

As a shareholder of the Short Term Bond Fund (the “fund”), you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments; and (2) ongoing costs, including investment advisory fees, distribution and/or service (12b-1) fees, and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from January 1, 2006, to June 30, 2006.

Actual Expenses

For each class, the first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

For each class, the second line of the table below provides information about hypothetical account values and hypothetical expenses based on the fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line of the table for each class is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

Expense Examples

					Expenses Paid During
	Beginning Account		Ending Account		Period1 (1/01/06 to
	Value (1/01/06)		Value (6/30/06)		6/30/06)
Class A Actual2	$	1,000.00	$	1,011.80	$	3.74
Class A Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.08	$	3.76
Class Y Actual2	$	1,000.00	$	1,012.50	$	2.99
Class Y Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.82	$	3.01

1	Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.75% and 0.60% for Class A and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period).
2	Based on the actual returns for the six-month period ended June 30, 2006 of 1.18% and 1.25% for Class A and Class Y, respectively.

First American Funds Annual Report 2006      19

Total Return Bond fund

Investment Objective: high current income consistent with prudent risk to capital

How did the fund perform for the nine-month fiscal period ended June 30, 2006?

The First American Total Return Bond Fund, Class Y shares, returned 0.02% for the fiscal period ended June 30, 2006 (Class A shares returned -0.17% without taking the sales charge into account). By comparison, the fund’s benchmark, the Lehman Aggregate Bond Index*, returned -0.13% for the same period.

What were the general economic and market conditions during the fiscal period?

Economic growth continued at an average pace slightly above sustainable levels during the nine months ending June 30, 2006. Economic growth was volatile on a quarter-by-quarter basis, reflecting disruptions to economic activity associated with the hurricanes last fall and the stimulus provided by the subsequent recovery and rebuilding effort. Gross Domestic Product growth was strong enough to move the unemployment rate down to 4.6% from 5.0% nine months earlier.

The strength in economic activity, fewer excess resources in the economy, and elevated energy prices pushed core inflation measures higher during this period. The rise in inflation and the decline in unemployment resulted in the Federal Reserve (the “Fed”) lifting its target lending rate by 25 basis points at each of its policy meetings during the fiscal period to the current level of 5.25%. As a result of these rate increases, fixed income returns during the period were in general fairly meager. Interest rate increases caused the prices of existing securities to decline, and because yields were fairly low at the beginning of the period, there was very little income to offset these price declines, resulting in very low absolute returns. The latest readings on broad economic activity and key sectors of the economy suggest that Fed tightening has begun to have its desired effect, as economic growth slowed to a sustainable pace during the second quarter of 2006.

How did market conditions and investment strategies affect the fund’s performance?

Sustained Fed tightening, driven by robust economic growth and increasing price pressures, caused market interest rates to rise significantly across all maturities last fiscal period. The yield curve continued its flattening trend, becoming inverted in early 2006. Consequently, two key drivers of performance for the period were the fund’s defensive duration posture, adopted to reduce risk as interest rates rose, and its strategic positioning for a flattening yield curve. Emerging markets and high-yield corporate bonds performed well during the period. The fund’s holdings in emerging markets bonds, below investment-grade corporate bonds, and non-U.S. dollar exposure were all significant sources of relative return, with each contributing a similar amount to the fund’s return.

Issue selection, primarily within the mortgage and corporate sectors, also helped the fund’s relative performance. Sector selection within traditional bond market sectors also added value, primarily because of the fund’s overweight in mortgage-backed securities and corresponding underweight to investment-grade corporate bonds.

What strategic moves were made by the fund and why?

While we reduced our emerging-market and high-yield holdings in the middle of the fiscal period, mainly due to high valuations, we increased exposure in the non U.S. dollar sector. Fixed-income valuations are attractive overseas and the dollar is increasingly vulnerable to decline, in light of the peaking of the U.S. tightening cycle and strengthening foreign economies. Following declines in emerging-market equities and bonds late in the fiscal period, we took advantage of improved valuations to add selectively to the fund’s holdings in emerging-market bonds.

During the fiscal period, we moderated the fund’s yield-curve flattening bias, gradually increasing the fund’s weighting in intermediate-term bonds in anticipation of a steepening of the yield curve following the end of the Fed’s tightening cycle. We also brought the fund’s duration closer to neutral as the fiscal period ended, after having been defensive for most of the period. Corporate issue selection changes were guided by bottom-up research opportunities and evolving themes related to the maturing of the economic cycle.

* Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects.

Portfolio Allocation as of June 30, 2006¹  (% of net assets)

U.S. Government Agency Mortgage-Backed Securities	30.8	%
Corporate Bonds	19.6
Asset-Backed Securities	19.3
Collateralized Mortgage Obligation – Private Mortgage-Backed Securities	16.5
U.S. Government & Agency Securities	7.1
Collateralized Mortgage Obligation – U.S. Government Agency Mortgage-Backed Securities	6.6
Municipal Bonds	0.5
Short-Term Investments	3.0
Other Assets and Liabilities, Net	(3.4	)
	100.0	%

Credit Quality Distribution as of June 30, 2006²  (% of market value)

AAA	77.3	%
AA	4.2
A	3.1
BBB	7.8
BB	5.2
B	1.7
Not-Rated	0.7
	100.0	%

1	Portfolio allocations are subject to change and are not recommendations to buy or sell any security.
2	Individual security ratings are based on information from Moody’s Investor Service, Standard & Poor’s, and/or Fitch. In the case of split ratings, the middle rating is used. If ratings are provided by only two rating agencies, the lower rating is used. If only one rating agency provides a rating, that rating is used.

20      First American Funds Annual Report 2006

Total Return Bond fund continued

Annual Performance¹ as of June 30, 2006

	Nine-						Since Inception
	Month
	Period*		1 year		5 years		2/01/2000		9/24/2001
Average annual return with sales charge (POP)
Class A		(4.40)%		(4.55)%		4.00%		5.22%		—
Class B		(5.58)%		(5.92)%		3.76%		5.12%		—
Class C		(1.70)%		(2.09)%		4.09%		5.10%		—
Average annual return without sales charge (NAV)
Class A		(0.17)%		(0.28)%		4.91%		5.93%		—
Class B		(0.74)%		(1.13)%		4.09%		5.12%		—
Class C		(0.74)%		(1.13)%		4.09%		5.10%		—
Class R		(0.44)%		(0.72)%		—		—		4.68%
Class Y		0.02%		(0.13)%		5.15%		6.17%		—
Lehman Aggregate Bond Index2		(0.13)%		(0.81)%		4.97%		6.26%		4.37%

Value of $10,000 Investment^{1, 3} as of June 30, 2006

Total Return Bond Fund, Class A (NAV)		$	14,465
Total Return Bond Fund, Class A (POP)		$	13,855
Total Return Bond Fund, Class Y		$	14,677
Lehman Aggregate Bond Index2		$	14,758

Class A

Class Y

The chart above illustrates the total value of an assumed $10,000 investment in the fund’s Class A and Class Y shares (from 2/01/2000 to 6/30/2006) as compared to the Lehman Aggregate Bond Index².

The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.

*

Total returns have not been annualized.

1

Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Investment performance reflects fee waivers that are or were in effect. In the absence of such fee waivers, total returns would be reduced. Index performance is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available.

Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV.

Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 4.25% for Class A shares and the maximum contingent deferred sales charge (“CDSC”) for Class B and Class C shares for the relevant period. Maximum CDSC is 5.00% for Class B shares, decreasing annually to 0% in the seventh year following purchase, and 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV.

Investments in debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities.

A significant portion of the Fund’s portfolio may consist of lower-rated debt obligations, which are commonly called “high-yield” securities or “junk bonds.” High-yield securities generally have more volatile prices and carry more risk to principal than investment-grade securities. The Fund may also invest in foreign securities. International investing involves risks not typically associated with domestic investing including risks of adverse currency fluctuations, potential political and economic instability, different accounting standards, limited liquidity, and volatile prices.

2

An unmanaged index comprised of the Lehman Government/ Credit Bond Index, the Lehman Mortgage Backed Securities Index, and the Lehman Asset Backed Securities Index. The Lehman Government/ Credit Bond Index is comprised of Treasury securities, other securities issued or guaranteed by the U.S. Government or its agencies or instrumentalities, including U.S. agency mortgage securities, and investment-grade corporate debt securities. The Lehman Mortgage Backed Securities Index is comprised of the mortgage-backed pass-through securities of Ginnie Mae, Fannie Mae, and Freddie Mac. The Lehman Asset Backed Securities Index is comprised of debt securities rated investment grade or higher that are backed by credit card, auto, and home equity loans.

3

Performance for Class B, Class C, and Class R shares is not presented. Performance for these classes will vary due to different expense structures.

First American Funds Annual Report 2006      21

Total Return Bond fund continued

Expense Example

As a shareholder of the Total Return Bond Fund (the “fund”), you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments; and (2) ongoing costs, including investment advisory fees, distribution and/or service (12b-1) fees, and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from January 1, 2006, to June 30, 2006.

Actual Expenses

For each class, the first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

For each class, the second line of the table below provides information about hypothetical account values and hypothetical expenses based on the fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line of the table for each class is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

Expense Examples

					Expenses Paid During
	Beginning Account		Ending Account		Period1 (1/01/06 to
	Value (1/01/06)		Value (6/30/06)		6/30/06)
Class A Actual2	$	1,000.00	$	992.10	$	4.94
Class A Hypothetical (5% return before expenses)	$	1,000.00	$	1,019.84	$	5.01
Class B Actual2	$	1,000.00	$	988.30	$	8.63
Class B Hypothetical (5% return before expenses)	$	1,000.00	$	1,016.12	$	8.75
Class C Actual2	$	1,000.00	$	988.30	$	8.63
Class C Hypothetical (5% return before expenses)	$	1,000.00	$	1,016.12	$	8.75
Class R Actual2	$	1,000.00	$	990.00	$	6.22
Class R Hypothetical (5% return before expenses)	$	1,000.00	$	1,018.55	$	6.31
Class Y Actual2	$	1,000.00	$	993.30	$	3.71
Class Y Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.08	$	3.76

1	Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 1.00%, 1.75%, 1.75%, 1.25%, and 0.75% for Class A, Class B, Class C, Class R, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period).
2	Based on the actual returns for the six-month period ended June 30, 2006 of -0.79%, -1.17%, -1.17%, -1.00%, and -0.67% for Class A, Class B, Class C, Class R, and Class Y, respectively.

22      First American Funds Annual Report 2006

U.S. Government Mortgage fund

Investment Objective: high current income to the extent consistent with the preservation of capital

How did the fund perform for the nine-month fiscal period ended June 30, 2006?

The First American U.S. Government Mortgage Fund (the “fund”), Class Y shares returned 0.38% for the fiscal period ended June 30, 2006 (Class A shares returned 0.09% without taking the sales charge into account). By comparison, the fund’s benchmark, the Lehman Mortgage-Backed Securities Index*, returned 0.54% for the same period.

What were the general economic and market conditions during the fiscal period?

Economic growth continued at an average pace slightly above sustainable levels during the nine months ending June 30, 2006. Economic growth was volatile on a quarter-by-quarter basis, reflecting disruptions to economic activity associated with the hurricanes last fall and the stimulus provided by the subsequent recovery and rebuilding effort. Gross Domestic Product growth was strong enough to move the unemployment rate down to 4.6% from 5.0% nine months earlier.

The strength in economic activity, fewer excess resources in the economy, and elevated energy prices pushed core inflation measures higher during this period. The rise in inflation and the decline in unemployment resulted in the Federal Reserve (the “Fed”) lifting its target lending rate by 25 basis points at each of its policy meetings during the fiscal period to the current level of 5.25%. As a result of these rate increases, fixed income returns during the period were in general fairly meager. Interest rate increases caused the prices of existing securities to decline, and because yields were fairly low at the beginning of the period, there was very little income to offset these price declines, resulting in very low absolute returns. The latest readings on broad economic activity and key sectors of the economy suggest that Fed tightening has begun to have its desired effect, as economic growth slowed to a sustainable pace during the second quarter of 2006.

How did market conditions and investment strategies affect the fund’s performance?

Mortgage-backed security returns were fairly modest this fiscal period. Valuations were expensive at the beginning of the period and massive deleveraging by the government-sponsored enterprises that finance housing combined to drive spreads wider in the second half of 2005, causing mortgage-backed securities to underperform all other investment-grade sectors. The fund did benefit, however, from defensive positioning within the mortgage-backed securities sector as the portfolio was emphasizing seasoned mortgage pools, high-coupon securities, and 15-year mortgage paper. All of these mortgage types are defensive in nature, and they outperformed the overall mortgage-backed market during the period. The fund also carried a shorter-than benchmark duration and a bias toward a flattening Treasury yield curve, both of which helped performance as rates rose and the yield curve flattened. Overweights to non-agency mortgage securities and structured-mortgage securities also added value, as these securities outperformed agency issues.

What strategic moves were made by the fund and why?

The fund lengthened its duration to be more in line with the benchmark as it appears that the Fed is nearing the end of the tightening cycle. Our position within the mortgage-backed securities sector remains defensive, emphasizing seasoned loans, 15-year mortgage securities, and structured mortgage paper, all of which are relatively less susceptible to extension risk (i.e., lengthening in a security’s duration due to the deceleration of prepayments) in a higher rate and slower housing environment. As prepayments slowed due to the rise in rates, the portfolio also emphasized higher-coupon securities to maximize income. The fund had an overweight to non-agency mortgage securities, which trade at yield advantages to agency securities and often have favorable loan characteristics that can improve the return profile of the portfolio.

* Unlike mutual funds, index returns do not reflect any expenses, transaction costs, or cash flow effects.

Portfolio Allocation as of June 30, 2006¹  (% of net assets)

U.S. Government Agency Mortgage-Backed Securities	99.6	%
Collateralized Mortgage Obligation – Private Mortgage-Backed Securities	19.4
Asset-Backed Securities	4.6
Collateralized Mortgage Obligation – U.S. Government Agency Mortgage-Backed Securities	2.0
Short-Term Investments	2.6
Other Assets and Liabilities, Net	(28.2	)
	100.0	%

Credit Quality Distribution as of June 30, 2006²  (% of market value)

AAA	96.2	%
AA	3.5
BBB	0.3
	100.0	%

1	Portfolio allocations are subject to change and are not recommendations to buy or sell any security.
2	Individual security ratings are based on information from Moody’s Investor Service, Standard & Poor’s, and/or Fitch. In the case of split ratings, the middle rating is used. If ratings are provided by only two rating agencies, the lower rating is used. If only one rating agency provides a rating, that rating is used.

First American Funds Annual Report 2006      23

U.S. Government Mortgage fund continued

Annual Performance¹  as of June 30, 2006

	Nine-								Since Inception
	Month
	Period*		1 year		5 years		10 years		9/24/2001
Average annual return with sales charge (POP)
Class A		(4.18)%		(4.48)%		2.93%		4.47%		—
Class B		(5.21)%		(5.79)%		2.54%		4.15%		—
Class C		(1.34)%		(1.88)%		—		—		2.36%
Average annual return without sales charge (NAV)
Class A		0.09%		(0.27)%		3.82%		4.92%		—
Class B		(0.38)%		(1.02)%		3.05%		4.15%		—
Class C		(0.38)%		(0.93)%		—		—		2.36%
Class R		0.04%		(0.48)%		3.71%		4.82%		—
Class Y		0.38%		0.08%		4.09%		5.17%		—
Lehman Mortgage-Backed Securities Index2		0.54%		0.40%		4.65%		6.13%		4.08%

Value of $10,000 Investment ^{1, 3}  as of June 30, 2006

U.S. Government Mortgage Fund, Class A (NAV)		$	15,526
U.S. Government Mortgage Fund, Class A (POP)		$	14,871
U.S. Government Mortgage Fund, Class Y		$	15,871
Lehman Mortgage-Backed Securities Index2		$	17,180

Class A

Class Y

The chart above illustrates the total value of an assumed $10,000 investment in the fund’s Class A and Class Y shares (from 11/30/1996 to 6/30/2006) as compared to the Lehman Mortgage-Backed Securities Index².

The performance data quoted on this page represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance data quoted. Performance data current to the most recent month-end may be obtained by calling 800.677.FUND.

*  Total returns have not been annualized.

¹  Performance does not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. Investment performance reflects fee waivers that are or were in effect. In the absence of such fee waivers, total returns would be reduced. Index is for illustrative purposes only and does not reflect any expenses, transaction costs, or cash flow effects. Direct investment in the index is not available.

Total returns at net asset value (“NAV”) reflect performance over the time period indicated without including the fund’s maximum sales charge and assume reinvestment of all distributions at NAV.

Total returns at public offering price (“POP”) reflect performance over the time period indicated including maximum sales charges of 4.25% for Class A shares and the maximum contingent deferred sales charge (“CDSC”) for Class B and Class C shares for the relevant period. Maximum CDSC is 5.00% for Class B shares, decreasing annually to 0% in the seventh year following purchase, and 1.00% for Class C shares. Total returns assume reinvestment of all distributions at NAV.

On September 24, 2001, the U.S. Government Mortgage Fund became the successor by merger to the Firstar U.S. Government Securities Fund, a series of Firstar Funds, Inc. Prior to the merger, the First American fund had no assets or liabilities. Performance presented prior to September 24, 2001, represents that of the Firstar U.S. Government Securities Fund. The Firstar U.S. Government Securities Fund was organized on November 27, 2000, and, prior to that, was a separate series of Mercantile Mutual Funds, Inc.

Investments in debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities.

2

An unmanaged index comprised of the mortgage-backed pass-through securities of Ginnie Mae, Fannie Mae, and Freddie Mac. It is formed by grouping the universe of more than 600,000 individual fixed-rate MBS pools into approximately 3,500 generic aggregates. The aggregates included are priced daily using a matrix pricing routine based on trade price quotations by agency, program, coupon, and degree of seasoning.

3

Performance for Class B, Class C, and Class R shares is not presented. Performance for these classes will vary due to different expense structures.

24      First American Funds Annual Report 2006

U.S. Government Mortgage fund continued

Expense Example

As a shareholder of the U.S. Government Mortgage Fund (the “fund”), you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments; and (2) ongoing costs, including investment advisory fees, distribution and/or service (12b-1) fees, and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from January 1, 2006, to June 30, 2006.

Actual Expenses

For each class, the first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

For each class, the second line of the table below provides information about hypothetical account values and hypothetical expenses based on the fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line of the table for each class is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

Expense Examples

					Expenses Paid During
	Beginning Account		Ending Account		Period1 (1/01/06 to
	Value (1/01/06)		Value (6/30/06)		6/30/06)
Class A Actual2	$	1,000.00	$	996.20	$	4.70
Class A Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.08	$	4.76
Class B Actual2	$	1,000.00	$	993.40	$	8.40
Class B Hypothetical (5% return before expenses)	$	1,000.00	$	1,016.36	$	8.50
Class C Actual2	$	1,000.00	$	993.40	$	8.40
Class C Hypothetical (5% return before expenses)	$	1,000.00	$	1,016.36	$	8.50
Class R Actual2	$	1,000.00	$	995.10	$	5.99
Class R Hypothetical (5% return before expenses)	$	1,000.00	$	1,018.79	$	6.06
Class Y Actual2	$	1,000.00	$	998.40	$	3.47
Class Y Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.32	$	3.51

1	Expenses are equal to the fund’s annualized expense ratio for the most recent six-month period of 0.95%, 1.70%, 1.70%, 1.20%, and 0.70% for Class A, Class B, Class C, Class R, and Class Y, respectively, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year/365 (to reflect the one-half year period).
2	Based on the actual returns for the six-month period ended June 30, 2006 of -0.38%, -0.66%, -0.66%, -0.49%, and -0.16% for Class A, Class B, Class C, Class R, and Class Y, respectively.

First American Funds Annual Report 2006      25

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Directors

First American Investment Funds, Inc.

We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of the Core Bond, High Income Bond, Inflation Protected Securities, Intermediate Government Bond, Intermediate Term Bond, Short Term Bond, Total Return Bond, and U.S. Government Mortgage Funds (series of First American Investment Funds, Inc.) (the “funds”) as of June 30, 2006, and the related statements of operations, changes in net assets and financial highlights for each of the periods indicated therein. These financial statements and the financial highlights are the responsibility of the funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the funds’ internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the funds’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included verification by examination of securities held by the custodian as of June 30, 2006 and confirmation of the securities held, by correspondence with the custodian and brokers, or by other appropriate auditing procedures where replies from brokers were not received. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights audited by us as referred to above present fairly, in all material respects, the financial position of the funds listed above of First American Investment Funds, Inc. at June 30, 2006, the results of their operations, changes in their net assets and their financial highlights for each of the periods indicated therein, in conformity with U.S. generally accepted accounting principles.

Minneapolis, Minnesota

August 11, 2006

26      First American Funds Annual Report 2006

Schedule of  Investments June 30, 2006, all dollars are rounded to thousands (000)

Core Bond Fund
DESCRIPTION	PAR		VALUE
U.S. Government Agency   Mortgage-Backed Securities – 37.1%
Adjustable Rate (a) – 3.9%
Federal Home Loan Mortgage Corporation Pool
5.129%, 05/01/2025, #846757	$	357	$	363
5.935%, 04/01/2029, #847190 (b)		2,821		2,866
5.954%, 03/01/2030, #847180 (b)		4,287		4,371
4.887%, 07/01/2030, #847240 (b)		4,066		4,121
5.261%, 06/01/2031, #846984 (b)		1,580		1,608
Federal National Mortgage Association Pool
6.014%, 08/01/2030, #555843 (b)		9,152		9,256
6.210%, 03/01/2031, #545359		1,197		1,222
5.934%, 09/01/2033, #725553 (b)		3,316		3,324
5.286%, 11/01/2034, #735054 (b)		12,925		12,594
5.000%, 05/01/2035, #357883 (b)		19,203		18,037
4.871%, 09/01/2035, #745168 (b)		13,417		12,976
				70,738
Fixed Rate – 33.2%
Federal Home Loan Mortgage Corporation Pool
4.000%, 10/01/2010, #M80855 (b)		11,922		11,450
4.500%, 03/01/2018, #P10023 (b)		3,009		2,886
4.500%, 05/01/2018, #P10032 (b)		6,356		6,098
5.000%, 05/01/2018, #E96700 (b)		11,452		11,048
6.500%, 01/01/2028, #G00876		1,451		1,466
6.500%, 11/01/2028, #C00676		2,775		2,805
6.500%, 12/01/2028, #C00689		1,953		1,974
6.500%, 04/01/2029, #C00742		1,174		1,187
6.500%, 07/01/2031, #A17212 (b)		5,792		5,848
6.000%, 11/01/2033, #A15521 (b)		4,448		4,393
Federal National Mortgage Association Pool
7.750%, 06/01/2008, #001464		5		5
3.790%, 07/01/2013, #386314 (b)		25,263		22,826
5.500%, 02/01/2014, #440780 (b)		2,820		2,772
7.000%, 02/01/2015, #535206		753		773
7.000%, 08/01/2016, #591038 (b)		1,406		1,442
5.500%, 12/01/2017, #673010 (b)		5,257		5,170
5.000%, 06/01/2018, #555545 (b)		8,085		7,804
5.000%, 11/01/2018, #750989 (b)		19,423		18,748
4.500%, 01/01/2019, #755666 (b)		4,625		4,382
5.000%, 11/01/2019, #725934		3,844		3,708
5.500%, 01/01/2020, #735386 (b)		9,342		9,183
5.500%, 06/01/2020, #735792		7,911		7,777
5.000%, 02/01/2021, #745279		25,376		24,447
5.000%, 03/01/2021, #845444		41,245		39,725
6.000%, 10/01/2022, #254513 (b)		5,144		5,125
5.500%, 10/01/2024, #255456 (b)		13,397		13,022
5.500%, 01/01/2025, #255575 (b)		11,643		11,318
5.500%, 02/01/2025, #255628 (b)		16,411		15,952
7.000%, 04/01/2026, #340798		552		566
7.000%, 05/01/2026, #250551		576		591
6.500%, 02/01/2029, #252255		2,343		2,367
6.500%, 12/01/2031, #254169 (b)		7,214		7,254
6.000%, 04/01/2032, #745101		13,469		13,425
7.000%, 07/01/2032, #254379		3,503		3,589
7.000%, 07/01/2032, #545813 (b)		1,534		1,572
7.000%, 07/01/2032, #545815 (b)		956		979
6.000%, 09/01/2032, #254447 (b)		5,794		5,724
6.000%, 03/01/2033, #688330 (b)		9,028		8,919
5.500%, 04/01/2033, #694605 (b)		10,872		10,489
6.500%, 05/01/2033, #555798 (b)		7,569		7,638
5.500%, 06/01/2033, #843435 (b)		7,524		7,260
5.500%, 07/01/2033, #709446 (b)		12,928		12,472
5.500%, 07/01/2033, #728667		4,931		4,757
5.500%, 08/01/2033, #733380 (b)		12,289		11,856
5.000%, 10/01/2033, #741897 (b)		13,379		12,567
5.500%, 10/01/2033, #555800		18,589		17,933
6.000%, 11/01/2033, #772130		1,012		999
6.000%, 11/01/2033, #772256		1,199		1,184
5.500%, 12/01/2033, #756202 (b)		9,142		8,819
6.000%, 12/01/2033, #756200		4,655		4,595
5.000%, 03/01/2034, #725205 (b)		8,594		8,072
5.000%, 03/01/2034, #725248 (b)		4,273		4,013
5.000%, 03/01/2034, #725250 (b)		7,637		7,174
5.500%, 04/01/2034, #725424 (b)		11,381		10,979
5.500%, 05/01/2034, #357571 (b)		14,340		13,811
5.000%, 06/01/2034, #782909 (b)		6,184		5,799
6.500%, 06/01/2034, #735273 (b)		11,731		11,835
5.500%, 07/01/2034 (c)		66,625		63,981
6.000%, 07/01/2034 (c)		18,215		17,925
5.500%, 08/01/2034, #745563 (c)		14,111		13,791
5.500%, 10/01/2034, #255411 (b)		2,585		2,490
6.000%, 10/01/2034, #781776		2,326		2,294
6.000%, 09/01/2035, #832711 (b)		9,255		9,116
6.000%, 09/01/2035, #832773 (b)		6,984		6,879
5.500%, 03/01/2036, #870157		18,931		18,184
6.500%, 04/01/2036, #831377		7,116		7,154
6.500%, 04/01/2036, #852909		7,338		7,377
Government National Mortgage Association Pool
4.750%, 08/20/2023, #008259 (a)		2		2
7.500%, 11/15/2030, #537699 (b)		693		724
6.000%, 11/15/2033, #612374 (b)		8,527		8,470
				608,959
Total U.S. Government Agency
Mortgage-Backed Securities
(Cost $700,105)				679,697
Asset-Backed Securities – 20.2%
Automotive – 2.8%
Harley Davidson Motorcycle Trust Series 2005-4, Class A2
4.850%, 06/15/2012		7,325		7,214
Hertz Vehicle Financing Series 2005-2A, Class A6
5.080%, 11/25/2011 (d)		14,690		14,293
Triad Auto Receivables Owner Trust Series 2006-A, Class A3
4.770%, 01/12/2011		11,140		10,984
Volkswagen Auto Loan Enhanced Trust Series 2005-1, Class A4
4.860%, 04/20/2012		18,400		18,090
				50,581
Commercial – 10.5%
Banc of America Commercial Mortgage Series 2006-2, Class A4
5.741%, 05/10/2045		17,160		17,060
Bank of America Commercial Mortgage Series 2004-5, Class A3
4.561%, 11/10/2041		14,830		14,022
Bear Stearns Commercial Mortgage Securities Series 2005-PW10, Class A4
5.405%, 12/11/2040		10,185		9,840
Commercial Mortgage Pass-Through Certificates Series 2006-CN2A, Class A2FX
5.449%, 02/05/2019 (d)		9,225		9,052
Series 2005-LP5, Class A2
4.630%, 05/10/2043		14,180		13,679
Deutsche Mortgage and Asset Receiving Series 1998-C1, Class A2
6.538%, 06/15/2031		5,658		5,707
GE Capital Commercial Mortgage Corporation Series 2005-C3, Class A2
4.853%, 07/10/2045		11,590		11,256

First American Funds Annual Report 2006      27

Schedule of  Investments continued

Core Bond Fund (continued)
DESCRIPTION		PAR		VALUE
GMAC Commercial Mortgage Securities Series 2004-C2, Class A1
	3.896%, 08/10/2038	$	8,735	$	8,487
Series 2005-C1, Class A2
	4.471%, 05/10/2043		19,200		18,418
Greenwich Capital Commercial Funding Series 2003-C1, Class A2
	3.285%, 07/05/2035		14,170		13,299
J.P. Morgan Chase Commercial Mortgage Securities Series 2005-LDP5, Class A4
	5.345%, 12/15/2044 (a)		8,635		8,261
LB-UBS Commercial Mortgage Trust Series 2003-C3, Class A2
	3.086%, 05/15/2027		19,520		18,657
Series 2005-C7, Class A2
	5.103%, 11/15/2030		12,790		12,486
Nomura Asset Securities Series 1998-D6, Class A1B
	6.590%, 03/15/2030		12,465		12,636
Wachovia Bank Commercial Mortgage Trust Series 2005-C19, Class A5
	4.661%, 05/15/2044		21,390		20,081
					192,941
Credit Card – 4.1%
American Express Credit Account Series 2004-4, Class C
	5.371%, 03/15/2012 (a) (d)		4,500		4,520
Citibank Credit Card Issuance Trust Series 2006-B2, Class B2
	5.150%, 03/07/2011		7,775		7,664
Series 2006-A4, Class A4
	5.450%, 05/10/2013		29,430		29,182
MBNA Credit Card Master Note Trust Series 2005-A1, Class A1
	4.200%, 09/15/2010		14,285		13,968
Series 2003-C6, Class C6
	6.261%, 12/15/2010 (a)		4,800		4,895
Providian Gateway Master Trust Series 2004-DA, Class A
	3.350%, 09/15/2011 (d)		15,310		14,917
					75,146
Home Equity – 0.2%
Amresco Residential Security Mortgage Series 1997-3, Class A9
	6.960%, 03/25/2027		311		311
Countrywide Asset-Backed Certificates Series 2003-SC1, Class M2
	6.581%, 09/25/2023 (a)		1,443		1,455
Residential Asset Securities Series 2004-KS3, Class A2B2
	5.291%, 04/25/2034 (a)		1,371		1,374
Saxon Asset Securities Trust Series 2004-1, Class A
	5.351%, 03/25/2035 (a)		1,338		1,338
					4,478
Other – 2.6%
Global Signal Trust Series 2004-2A, Class A
	4.232%, 12/15/2014 (d)		11,480		10,976
Series 2006-1, Class C
	5.707%, 02/15/2036 (d)		8,093		7,939
GRP/ AG Real Estate Asset Trust Series 2004-2, Class A
	4.207%, 07/25/2034 (d)		514		504
Series 2005-1, Class A
	4.850%, 01/25/2035 (d)		1,922		1,897
Small Business Administration Series 2005-P10B, Class 1
	4.940%, 08/10/2015		10,838		10,456
Series 2006-P10A, Class 1
	5.408%, 02/10/2016		16,837		16,358
					48,130
Total Asset-Backed Securities
	(Cost $382,307)				371,276
U.S. Government & Agency
	Securities (b) – 17.1%
U.S. Agency Debentures – 3.9%
Federal National Mortgage Association
	3.875%, 02/15/2010		19,000		18,021
	5.125%, 04/15/2011		17,350		17,088
	6.125%, 03/15/2012		9,200		9,479
	5.250%, 08/01/2012		28,285		27,636
					72,224
U.S. Treasuries – 13.2%
U.S. Treasury Bonds
	9.000%, 11/15/2018		25,280		33,784
	8.750%, 08/15/2020		6,300		8,437
	6.250%, 08/15/2023		33,500		36,947
	7.625%, 02/15/2025		6,055		7,690
	5.500%, 08/15/2028		11,850		12,175
	5.375%, 02/15/2031		4,380		4,456
	4.500%, 02/15/2036		13,110		11,755
U.S. Treasury Notes
	4.000%, 09/30/2007		5,790		5,704
	3.375%, 11/15/2008		22,565		21,678
	4.375%, 11/15/2008		14,060		13,819
	4.500%, 02/28/2011		3,460		3,374
	2.375%, 04/15/2011		19,684		19,606
	4.500%, 02/15/2016		45,545		43,332
	5.125%, 05/15/2016		18,270		18,249
					241,006
Total U.S. Government & Agency Securities
(Cost $323,156)					313,230
Collateralized Mortgage Obligation –
Private Mortgage-Backed
Securities – 12.3%
Adjustable Rate (a) – 6.3%
Bank of America Mortgage Securities Series 2004-G, Class 2A3
	4.232%, 08/25/2034		5,739		5,701
Citigroup Mortgage Loan Trust Series 2005-7, Class 2A1A
	4.862%, 09/25/2035		13,247		12,837
GMAC Mortgage Corporation Loan Trust Series 2003-AR2, Class 4A1
	4.725%, 12/19/2033		12,700		12,137
Indymac Index Mortgage Loan Trust Series 2006-AR13, Class A1
	6.112%, 07/25/2036		14,017		14,057
Sequoia Mortgage Trust Series 2004-4, Class X1
	0.765%, 05/20/2034 (e)		118,439		866

The accompanying notes are an integral part of the financial statements.

28      First American Funds Annual Report 2006

Core Bond Fund (continued)
DESCRIPTION		PAR		VALUE
Structured Adjustable Rate Mortgage Loan Trust Series 2004-11, Class A
	6.623%, 08/25/2034	$	1,931	$	1,936
Wachovia Mortgage Loan Trust Series 2005-B, Class 1A1
	4.977%, 10/20/2035		10,442		10,270
Washington Mutual Series 2004-AR7, Class A6
	3.943%, 07/25/2034		12,035		11,546
Wells Fargo Mortgage Backed Securities Trust Series 2003-D, Class A1
	4.800%, 02/25/2033		5,306		5,226
Series 2003-O, Class 5A1
	4.812%, 01/25/2034		17,634		16,904
Series 2004-N, Class A3
	4.098%, 08/25/2034		16,045		15,832
Series 2004-EE, Class B1
	3.988%, 12/25/2034		8,544		8,153
					115,468
Fixed Rate – 6.0%
Bank of America Mortgage Securities Series 2003-6, Class 1A30
	4.750%, 08/25/2033		7,350		7,113
Countrywide Alternative Loan Trust Series 2004-12CB, Class 1A1
	5.000%, 07/25/2019		8,095		7,808
Series 2004-2CB, Class 1A1
	4.250%, 03/25/2034		5,910		5,747
Series 2004-24CB, Class 1A1
	6.000%, 11/25/2034		6,640		6,493
GMAC Mortgage Corporation Loan Trust Series 2004-J5, Class A7
	6.500%, 01/25/2035		9,193		9,175
GSR Mortgage Loan Trust Series 2004-10F, Class 3A1
	5.500%, 08/25/2019		7,774		7,627
Master Alternative Loans Trust Series 2005-2, Class 1A3
	6.500%, 03/25/2035		4,529		4,524
Master Asset Securitization Trust Series 2003-6, Class 3A1
	5.000%, 07/25/2018		9,697		9,348
Morgan Stanley Mortgage Loan Trust Series 2004-9, Class 1A
	6.224%, 11/25/2034		8,011		7,956
Residential Asset Mortgage Products Series 2003-SL1, Class M1
	7.316%, 04/25/2031		8,519		8,670
Series 2004-SL4, Class A3
	6.500%, 07/25/2032		4,419		4,455
Residential Asset Securitization Trust Series 2002-A12, Class 1A1
	5.200%, 11/25/2032		95		94
Washington Mutual Series 2003-S10, Class A2
	5.000%, 10/25/2018		10,804		10,510
Series 2004-CB1, Class 1A
	5.250%, 06/25/2019		11,703		11,421
Wells Fargo Mortgage Backed Securities Trust Series 2003-14, Class A1
	4.750%, 12/25/2018		9,668		9,112
Westam Mortgage Financial Series 11, Class A
	6.360%, 08/26/2020		75		75
					110,128
Total Collateralized Mortgage Obligation –
Private Mortgage-Backed Securities
(Cost $231,435)					227,994
Corporate Bonds – 11.2%
Banking – 0.7%
First National Bank of Chicago
	8.080%, 01/05/2018		1,388		1,535
J.P. Morgan Chase
	5.150%, 10/01/2015		5,660		5,283
J.P. Morgan Chase XVII
	5.850%, 08/01/2035		4,300		3,800
Shinsei Finance Cayman,
	6.418% through 07/20/2016 thereafter variable, 07/20/2048 (b) (d)		3,000		2,818
					13,436
Basic Industry – 1.0%
Celulosa Arauco y Constitucion
	5.625%, 04/20/2015		3,000		2,794
Falconbridge
	7.350%, 06/05/2012		5,135		5,349
Southern Copper
	7.500%, 07/27/2035		5,655		5,399
Teck Cominco Limited
	6.125%, 10/01/2035		2,975		2,663
Vale Overseas
	6.250%, 01/11/2016		2,485		2,367
					18,572
Brokerage – 1.7%
Goldman Sachs Group
	5.350%, 01/15/2016 (b)		14,770		13,949
Merrill Lynch
	6.050%, 05/16/2016		9,170		9,109
Morgan Stanley
	5.375%, 10/15/2015 (b)		8,270		7,829
					30,887
Capital Goods – 0.2%
Hutchison Whampoa International
	7.450%, 11/24/2033 (d)		3,900		4,122
Communications – 1.6%
Comcast
	7.050%, 03/15/2033		6,900		7,000
News America Holdings
	7.700%, 10/30/2025		4,015		4,286
Telecom Italia Capital
	4.000%, 11/15/2008 (b)		5,765		5,530
Time Warner Entertainment
	8.375%, 07/15/2033		7,140		8,078
Verizon Global Funding
	7.750%, 12/01/2030		4,275		4,611
					29,505
Consumer Cyclical – 0.4%
DaimlerChrysler
	4.875%, 06/15/2010		3,735		3,571
Duty Free International
	7.000%, 01/15/2004 (f) (g)		2,191		438

First American Funds Annual Report 2006      29

Schedule of  Investments continued

Core Bond Fund (continued)
DESCRIPTION		PAR		VALUE
Harrah’s
	5.750%, 10/01/2017	$	3,345	$	3,047
					7,056
Consumer Non Cyclical – 0.4%
Kroger
	7.250%, 06/01/2009		7,000		7,246
Electric – 1.4%
Florida Power & Light
	5.650%, 02/01/2037		4,160		3,822
MidAmerican Energy Holdings
	5.875%, 10/01/2012		8,845		8,774
Ohio Power Series K
	6.000%, 06/01/2016		4,100		4,043
Oncor Electric Delivery
	7.000%, 05/01/2032		5,115		5,308
Pacific Gas & Electric
	6.050%, 03/01/2034 (b)		4,650		4,389
					26,336
Energy – 1.2%
Gazprom International
	7.201%, 02/01/2020 (d)		5,170		5,241
Nexen
	5.875%, 03/10/2035		4,140		3,655
Petro-Canada
	5.350%, 07/15/2033		3,310		2,792
Tengizcheveroil Finance
	6.124%, 11/15/2014 (d)		4,655		4,498
XTO Energy
	6.100%, 04/01/2036 (b)		5,430		4,915
					21,101
Finance – 0.7%
American General Finance
	3.875%, 10/01/2009		7,545		7,136
ILFC E-Capital Trust II, Callable 12/21/2015 @ 100
	6.250%, 12/21/2065 (a) (d)		6,885		6,505
					13,641
Insurance – 0.2%
Liberty Mutual Group
	6.500%, 03/15/2035 (d)		5,000		4,366
Natural Gas – 0.3%
Duke Energy Field Services
	7.875%, 08/16/2010		4,200		4,489
Real Estate Investment Trust – 0.4%
Prologis 2006
	5.750%, 04/01/2016		6,835		6,589
Sovereign – 0.9%
United Mexican States
	5.625%, 01/15/2017 (b)		17,520		16,293
Technology – 0.1%
Chartered Semiconductor
	6.375%, 08/03/2015		1,715		1,637
Total Corporate Bonds
	(Cost $216,161)				205,276
Collateralized Mortgage Obligation –
	U.S. Government Agency
	Mortgage-Backed Securities – 3.6%
Fixed Rate – 3.5%
Federal Home Loan Mortgage Corporation Series 6, Class C
	9.050%, 06/15/2019		35		35
Series 162, Class F
	7.000%, 05/15/2021		142		141
Series 188, Class H
	7.000%, 09/15/2021		333		331
Series 1022, Class J
	6.000%, 12/15/2020		48		47
Series 1790, Class A
	7.000%, 04/15/2022		127		129
Series 2763, Class TA
	4.000%, 03/15/2011		10,402		10,049
Series 2901, Class UB
	5.000%, 03/15/2033 (b)		5,000		4,624
Series 2910, Class BE
	4.500%, 12/15/2019		2,077		1,868
Series 2987, Class KE
	5.000%, 12/15/2034 (b)		12,850		12,227
Federal National Mortgage Association Series 1988-24, Class G
	7.000%, 10/25/2018		70		72
Series 1989-24, Class H
	9.000%, 07/25/2019		70		75
Series 1989-90, Class E
	8.700%, 12/25/2019		11		12
Series 1990-30, Class E
	6.500%, 03/25/2020		40		41
Series 1990-61, Class H
	7.000%, 06/25/2020		48		49
Series 1990-72, Class B
	9.000%, 07/25/2020		41		43
Series 1990-102, Class J
	6.500%, 08/25/2020		50		51
Series 1990-105, Class J
	6.500%, 09/25/2020		490		498
Series 1991-56, Class M
	6.750%, 06/25/2021		192		194
Series 1992-120, Class C
	6.500%, 07/25/2022		77		78
Series 1998-M1, Class A2
	6.250%, 01/25/2008		2,494		2,499
Series 2005-44, Class PC
	5.000%, 11/25/2027 (b)		18,520		17,957
Series 2005-62, Class JE
	5.000%, 06/25/2035 (b)		14,170		13,774
					64,794
Z-Bonds (h) – 0.1%
Federal Home Loan Mortgage Corporation Series 1118, Class Z
	8.250%, 07/15/2021		74		74
Federal National Mortgage Association Series 1991-134, Class Z
	7.000%, 10/25/2021		348		354
Series 1996-35, Class Z
	7.000%, 07/25/2026		1,522		1,556
					1,984
Total Collateralized Mortgage Obligation –
	U.S. Government Agency
	Mortgage-Backed Securities
	(Cost $68,937)				66,778

The accompanying notes are an integral part of the financial statements.

30      First American Funds Annual Report 2006

Core Bond Fund (continued)
DESCRIPTION		PAR/SHARES		VALUE
Short-Term Investments – 3.0%
Money Market Fund – 2.8%
First American Prime Obligations Fund, Class Z (i)			52,047,169	$	52,047
U.S. Treasury Obligations – 0.2%
U.S. Treasury Bills
	4.629%, 09/07/2006 (j)	$	1,180		1,170
	4.808%, 11/02/2006		1,500		1,475
					2,645
Total Short-Term Investments
	(Cost $54,692)				54,692
Investments Purchased with Proceeds
from Securities Lending (k) – 44.6%
	(Cost $817,952)			$	817,952
Total Investments – 149.1%
	(Cost $2,794,745)				2,734,494
Other Assets and Liabilities, Net – (49.1)%					(900,508	)
Total Net Assets – 100.0%				$	1,833,986

(a)	Variable Rate Security – The rate shown is the rate in effect at June 30, 2006.
(b)	This security or a portion of this security is out on loan at June 30, 2006. Total loaned securities had a value of $804,157 at June 30, 2006. See note 2 in Notes to Financial Statements.
(c)	Security purchased on a when-issued basis. On June 30, 2006, the total cost of investments purchased on a when-issued basis was $95,795 or 5.2% of total net assets. See note 2 in Notes to Financial Statements.
(d)	Security purchased within the terms of a private placement memorandum, exempt from registration under Rule 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or other “qualified institutional buyers.” These securities have been determined to be liquid under the guidelines established by the fund’s board of directors. As of June 30, 2006, the value of these investments was $91,644 or 5.0% of total net assets. See note 2 in Notes to Financial Statements.
(e)	Interest only – Represents securities that entitle holders to receive only interest payments on the underlying mortgages. The yield to maturity of an interest only is extremely sensitive to the rate of principal payments on the underlying mortgage assets. A rapid (slow) rate of principal repayments may have an adverse (positive) effect on yield to maturity. The principal amount shown is the notional amount of the underlying mortgages. Interest rate disclosed represents the coupon rate in effect as of June 30, 2006.

(f)  Security is fair valued and illiquid. As of June 30, 2006, the value of this investment was $438 or 0.0% of total net assets. See note 2 in Notes to Financial Statements.

(g)	Security in default at June 30, 2006.
(h)	Z-Bonds – Represents securities that pay no interest or principal during their accrual periods, but accrue additional principal at specified rates. Interest rate shown represents current yield based upon the cost basis and estimated future cash flows.

(i)	Investment in affiliated security. This money market fund is advised by FAF Advisors, Inc., which also serves as advisor for this fund. See note 3 in Notes to Financial Statements.
(j)	Security has been deposited as initial margin on open futures contracts. Yield shown is effective yield as of June 30, 2006. See note 2 in Notes to Financial Statements.

(k)  The fund may loan securities in return for collateral in the form of cash, U.S. Government securities, or other high grade debt obligations. The cash collateral is invested in money market funds and various short term, high quality debt obligations, such as repurchase agreements, commercial paper, and other corporate obligations. See note 2 in Notes to Financial Statements.

Schedule of Open Futures Contracts

	Number of
	Contracts			Notional
	Purchased			Contract			Settlement		Unrealized
Description	(Sold)			Value			Month		Appreciation
U.S. Treasury 2 Year Note Futures		(413	)	$	(83,749	)		September 2006	$	295
U.S. Treasury 5 Year Note Futures		(636	)		(65,766	)		September 2006		8
U.S. Treasury 10 Year Note Futures		(823	)		(86,299	)		September 2006		402
U.S. Treasury Long Bond Futures		162			17,278			September 2006		116
									$	821

Credit Default Swap Agreements

				Pay/
	Reference	Buy/Sell		Receive		Expiration		Notional		Unrealized
Counterparty	Entity	Protection		Fixed Rate		Date		Amount		Appreciation
J.P. Morgan	Dow Jones CDX IG Hvol6 Index		Sell		0.75%		6/20/2011	$	22,000	$	159
UBS	Dow Jones CDX IG Hvol6 Index		Sell		0.75%		6/20/2011		50,500		215
										$	374

Interest Rate Swap Agreements

Pay/

Floating

Receive

Rate

Floating

Fixed

Expiration

Notional

Unrealized

Counterparty

Index

Rate

Rate

Date

Amount

Depreciation

Citigroup

3-Month LIBOR

Pay

5.427%

11/10/2008

$

158,000

$

(662

)

Citigroup

3-Month LIBOR

Pay

5.660%

6/19/2016

36,000

(193

)

$

(855

)

First American Funds Annual Report 2006      31

Schedule of  Investments continued

High Income Bond Fund
DESCRIPTION	PAR		VALUE
High Yield Corporate Bonds – 91.1%
Basic Industry – 11.6%
AK Steel, Callable 06/15/2007 @ 103.88
7.750%, 06/15/2012	$	1,000	$	980
Allegheny Technologies
8.375%, 12/15/2011		1,000		1,032
Basell AF SCAl, Callable 08/15/2010 @ 104.19
8.375%, 08/15/2015 (a) (b) (c)		1,250		1,202
Cosipa Commercial
8.250%, 06/14/2016 (a) (b)		850		854
Crystal U.S. Holdings,
Series B, 0.000% through 10/01/2009
thereafter 10.500%,       10/01/2014		2,000		1,565
Domtar
7.125%, 08/15/2015 (a) (c)		1,500		1,305
Drummond, Callable 02/15/2011 @ 103.69
7.375%, 02/15/2016 (b)		1,000		927
Equistar Chemicals, Callable 05/01/2007 @ 105.31
10.625%, 05/01/2011 (c)		2,000		2,148
Geon
7.500%, 12/15/2015		1,000		906
Georgia-Pacific
8.125%, 05/15/2011		1,000		995
Hexion, Callable 07/15/2009 @ 104.50
9.000%, 07/15/2014		1,000		1,013
IMC Global Series B
10.875%, 06/01/2008		1,000		1,065
Ineos Group Holdings, Callable 02/15/2011 @ 104.25
8.500%, 02/15/2016 (a) (b) (c)		1,000		936
International Wire Group, Callable 10/15/2007 @ 105.38
10.000%, 10/15/2011		546		551
James River Coal, Callable 06/01/2009 @ 104.69
9.375%, 06/01/2012		1,500		1,500
LPG International
7.250%, 12/20/2015 (a)		1,000		920
Massey Energy, Callable 12/15/2009 @ 103.44
6.875%, 12/15/2013 (b)		1,000		930
Mercer International, Callable 02/15/2009 @ 104.63
9.250%, 02/15/2013 (a) (c)		1,500		1,335
Neenah Paper, Callable 11/15/2009 @ 103.69
7.375%, 11/15/2014		1,500		1,380
Newark Group, Callable 03/15/2009 @ 104.88
9.750%, 03/15/2014		1,300		1,203
Rhodia
10.250%, 06/01/2010 (a)		1,000		1,068
Ryerson, Callable 12/15/2008 @ 104.13
8.250%, 12/15/2011		1,000		988
Southern Copper
7.500%, 07/27/2035 (a)		1,000		955
Stone Container, Callable 07/01/2007 @ 104.19
8.375%, 07/01/2012 (c)		1,000		945
Vedanta Resources
6.625%, 02/22/2010 (a) (b)		1,000		955
Witco
6.875%, 02/01/2026		1,500		1,335
				28,993
Brokerage – 0.6%
E*Trade Financial, Callable 06/15/2008 @ 104
8.000%, 06/15/2011		1,500		1,530
Building Materials – 0.2%
Ply Gem Industries, Callable 02/15/2008 @ 104.50
9.000%, 02/15/2012		500		455
Capital Goods – 6.9%
Allied Waste North America,
Series B
5.750%, 02/15/2011		1,000		932
Allied Waste North America, Callable 02/15/2009 @ 103.06
6.125%, 02/15/2014 (c)		1,000		900
Callable 05/15/2011 @ 103.56
7.125%, 05/15/2016 (b) (c)		1,000		942
Bombardier
6.750%, 05/01/2012 (a) (b)		1,000		920
Case New Holland
7.250%, 01/15/2016		1,000		945
Callable 08/01/2007 @ 104.62
9.250%, 08/01/2011		1,000		1,052
Chart Industries, Callable 10/15/2010 @ 104.56
9.125%, 10/15/2015 (b)		1,850		1,887
Crown Cork & Seal
7.375%, 12/15/2026		1,000		877
DRS Technologies, Callable 02/01/2011 @ 103.81
7.625%, 02/01/2018 (c)		1,000		995
Greif Brothers, Callable 08/01/2007 @ 104.44
8.875%, 08/01/2012		700		737
L-3 Communications, Callable 01/15/2010 @ 102.94
5.875%, 01/15/2015		1,000		933
Mid America Waste Systems
12.250%, 02/15/2020 (d) (e) (f) (g)		250		—
Millar Western Forest, Callable 11/15/2008 @ 103.88
7.750%, 11/15/2013 (a)		1,000		760
Nortek, Callable 09/01/2009 @ 104.25
8.500%, 09/01/2014		500		484
Owens-Brockway Glass Container, Callable until 02/15/2007 @ 102.219
8.875%, 02/15/2009		1,000		1,030
Owens-Illinois
8.100%, 05/15/2007 (c)		1,000		1,005
Sequa
9.000%, 08/01/2009		1,000		1,055
Sino Forest
9.125%, 08/17/2011 (a) (b) (c)		1,000		1,030

The accompanying notes are an integral part of the financial statements.

32      First American Funds Annual Report 2006

High Income Bond Fund (continued)
DESCRIPTION	PAR		VALUE
United Rentals of North America, Callable 02/15/2009 @ 103.50
7.000%, 02/15/2014 (c)	$	1,000	$	914
				17,398
Communications – 13.0%
Adelphia Communications
7.875%, 05/01/2009 (d) (g)		2,000		1,070
Alamosa Delaware, Callable 07/31/2007 @ 105.50
11.000%, 07/31/2010		650		712
C & M Finance, Callable 02/01/2011 @ 104.05
8.100%, 02/01/2016 (a) (b)		1,000		955
CCH, Callable 09/15/2008 @ 105.12
10.250%, 09/15/2010		1,000		1,002
CCO Holdings, Callable 12/15/2006 @ 102
9.454%, 12/15/2010 (h)		1,000		1,020
Charter Communications Holdings
8.000%, 04/30/2012 (b)		2,000		1,990
Citizens Communications
9.250%, 05/15/2011		1,000		1,075
9.000%, 08/15/2031 (c)		500		506
CSC Holdings
7.875%, 02/15/2018		500		499
Series B
7.625%, 04/01/2011		1,000		1,000
Dex Media West, Callable 08/15/2008 @ 104.94
9.875%, 08/15/2013		500		542
Echostar
6.625%, 10/01/2014		2,000		1,880
Excelcomindo Finance, Callable 01/18/2010 @ 103.56
7.125%, 01/18/2013 (a) (b)		1,000		951
Horizon PCS, Callable 07/15/2008 @ 105.69
11.375%, 07/15/2012		900		1,011
Houghton Mifflin, Callable 10/15/2008 @ 105.75,
0.000% through 10/15/200
thereafter 11.500%,       10/15/2013		1,000		825
Iesy Repository, Callable 02/15/2010 @ 105.19
10.375%, 02/15/2015 (a) (b)		500		477
Insight Midwest, Callable until 10/31/2006 @ 105.25
10.500%, 11/01/2010		500		521
Intelsat Bermuda, Callable until 07/14/2006 @ 102
9.614%, 01/15/2012 (a) (h)		1,000		1,010
Interpublic Group
7.250%, 08/15/2011		1,000		908
Level 3 Financing, Callable 03/15/2010 @ 106.12
12.250%, 03/15/2013 (b)		500		531
Nextel Partners, Callable 07/01/2007 @ 104.06
8.125%, 07/01/2011		1,000		1,046
Panamsat, Callable 08/15/2009 @ 104.50
9.000%, 08/15/2014		649		659
Callable 06/15/2011 @ 104.50
9.000%, 06/15/2016 (b)		1,000		1,015
Quebecor Media, Callable 03/15/2011 @ 103.88
7.750%, 03/15/2016 (a) (b)		1,000		980
Qwest
8.875%, 03/15/2012 (h)		2,000		2,110
Qwest Capital Funding
7.000%, 08/03/2009		2,000		1,965
Qwest, Callable 08/31/2006 @ 102.35
7.500%, 06/15/2023		1,000		938
R.H. Donnelley Finance, Callable 01/15/2011 @ 104.44
8.875%, 01/15/2016 (b)		1,500		1,513
Rogers Wireless
6.375%, 03/01/2014 (a)		1,000		953
Sirius Satellite Radio, Callable 09/01/2009 @ 104.81
9.625%, 08/01/2013 (c)		500		469
Time Warner Telecommunications Holdings, Callable 02/15/2009 @ 104.62
9.250%, 02/15/2014 (c)		1,000		1,025
Vimpelcom
8.250%, 05/23/2016 (a) (b)		1,500		1,438
				32,596
Consumer Cyclical – 19.9%
Affiliated Computer Services
4.700%, 06/01/2010		1,500		1,380
AMC Entertainment, Callable 03/01/2009 @ 104
8.000%, 03/01/2014 (c)		1,000		916
Arvinmeritor
8.750%, 03/01/2012 (c)		1,000		975
Autonation, Callable 04/15/2009 @ 105.25
7.000%, 04/15/2014 (b)		1,500		1,477
Avis Budget Car Rental, Callable 05/15/2010 @ 103.81
7.625%, 05/15/2014 (b)		500		485
Avis Budget Car Rental, Callable 05/15/2011 @ 103.88
7.750%, 05/15/2016 (b)		500		481
Beazer Homes USA, Callable 04/15/2007 @ 104.19
8.375%, 04/15/2012		1,000		1,000
Blockbuster, Callable 09/01/2008 @ 104.50
9.000%, 09/01/2012 (c)		1,000		932
Bon-Ton Department Stores, Callable 03/15/2010 @ 105.13
10.250%, 03/15/2014 (b) (c)		1,000		927
Brookstone, Callable 10/15/2009 @ 106
12.000%, 10/15/2012 (b) (c)		500		440
Chaoda Modern Agriculture
7.750%, 02/08/2010 (a) (b) (c)		1,200		1,182
Domino’s, Series B, Callable 07/01/2007 @ 104.13
8.250%, 07/01/2011		547		568

First American Funds Annual Report 2006      33

Schedule of  Investments continued

High Income Bond Fund (continued)
DESCRIPTION	PAR		VALUE
Ford Motor
7.450%, 07/16/2031 (c)	$	1,000	$	722
Ford Motor Credit
5.800%, 01/12/2009		3,000		2,741
7.000%, 10/01/2013 (c)		1,000		861
French Lick Resorts & Casino, Callable 04/15/2010 @ 105.38
10.750%, 04/15/2014 (b)		1,250		1,197
Galaxy Entertainment, Callable 12/15/2009 @ 104.94
9.875%, 12/15/2012 (a) (b) (c)		500		520
General Motors
6.375%, 05/01/2008 (c)		1,000		952
8.250%, 07/15/2023		1,000		788
General Motors Acceptance
5.625%, 05/15/2009		2,000		1,902
6.750%, 12/01/2014 (c)		2,000		1,858
8.000%, 11/01/2031 (c)		1,000		961
Glenoit, Callable until 04/14/2007 @ 100
11.000%, 04/15/2007 (d) (e) (f) (g)		100		—
Goodyear Tire & Rubber
7.857%, 08/15/2011 (c)		500		464
GSC Holdings, Callable 10/01/2009 @ 104
8.000%, 10/01/2012 (c)		1,000		1,000
IMAX, Callable 12/01/2007 @ 104.81
9.625%, 12/01/2010 (a)		1,000		1,025
K Hovnanian Enterprises
6.250%, 01/15/2016		1,250		1,084
7.500%, 05/15/2016		500		464
Landrys Restaurants, Callable 12/15/2009 @ 103.75
7.500%, 12/15/2014		1,000		917
Lear Series B
8.110%, 05/15/2009 (c)		500		487
Levi Strauss & Co., Callable 01/15/2008 @ 104.88
9.750%, 01/15/2015		1,000		1,000
Linens ’N Things, Callable 01/15/2008 @ 102
10.345%, 01/15/2014 (b) (c) (h)		1,000		947
Lippo Karwaci Finance, Callable 03/09/2009 @ 104.44
8.875%, 03/09/2011 (a)		1,000		968
M/ I Homes
6.875%, 04/01/2012		1,000		865
Majestic Star, Callable 10/15/2008 @ 104.88
9.750%, 01/15/2011 (b) (c)		1,000		1,003
MGM Mirage
8.375%, 02/01/2011		2,000		2,050
6.875%, 04/01/2016 (b)		1,000		934
Mohegan Tribal Gaming, Callable 02/15/2010 @ 103.44
6.875%, 02/15/2015		750		707
Neiman Marcus Group, Callable 10/15/2010 @ 105.19
10.375%, 10/15/2015 (b) (c)		1,000		1,063
NPC, Callable 05/01/2010 @ 104.75
9.500%, 05/01/2014 (b)		750		726
Oxford Industries, Callable 06/01/2007 @ 104.44
8.875%, 06/01/2011		1,055		1,055
Rite Aid, Callable 02/15/2007 @ 104.75
9.500%, 02/15/2011		1,500		1,556
Russell, Callable 08/31/2006 @ 104.62
9.250%, 05/01/2010		500		523
Service Corporation International
7.700%, 04/15/2009		1,000		1,005
Six Flags, Callable 04/15/2008 @ 104.88
9.750%, 04/15/2013 (c)		1,000		919
Standard Pacific
7.000%, 08/15/2015 (c)		1,000		888
Tenneco Automotive, Callable 11/15/2009 @ 104.31
8.625%, 11/15/2014 (c)		1,000		998
Trump Entertainment Resorts, Callable 06/01/2010 @ 104.25
8.500%, 06/01/2015 (c)		1,000		961
Visteon
7.000%, 03/10/2014		500		408
Warnaco, Callable 06/15/2008 @ 104.44
8.875%, 06/15/2013		1,150		1,167
WCI Communities, Callable 05/01/2007 @ 104.56
9.125%, 05/01/2012		500		469
Wynn Las Vegas, Callable 12/01/2009 @ 103.31
6.625%, 12/01/2014 (c)		1,000		943
				49,861
Consumer Non Cyclical – 6.6%
Delhaize America
9.000%, 04/15/2031		1,000		1,097
Dole Foods,
Callable 03/15/2007 @ 104.44
8.875%, 03/15/2011		356		334
HCA
5.750%, 03/15/2014		1,000		894
6.500%, 02/15/2016 (c)		850		786
HCA Columbia Healthcare
8.750%, 09/01/2010		2,000		2,109
Healthsouth, Callable 06/15/2011 @ 105.38
10.750%, 06/15/2016 (b)		1,750		1,715
Iasis Healthcare Capital, Callable 06/15/2009 @ 104.38
8.750%, 06/15/2014		1,000		980
National Mentor Holdings, Callable 07/01/2010 @ 105.62
11.250%, 07/01/2014 (b)		500		509
Reynolds American
6.500%, 07/15/2010 (b)		1,000		967
7.625%, 06/01/2016 (b)		500		489
Stater Brothers Holdings, Callable 06/15/2008 @ 104.06
8.125%, 06/15/2012		1,000		987
Swift & Co., Callable 10/01/2006 @ 106.25
12.500%, 01/01/2010		750		746
Tenet Healthcare
9.500%, 02/01/2015 (b)		2,000		1,965

The accompanying notes are an integral part of the financial statements.

34      First American Funds Annual Report 2006

High Income Bond Fund (continued)
DESCRIPTION	PAR		VALUE
Triad Hospitals, Callable 11/15/2008 @ 103.50
7.000%, 11/15/2013	$	1,000	$	972
U.S. Oncology, Callable 08/15/2008 @ 104.50
9.000%, 08/15/2012		1,000		1,040
Vanguard Health Holdings II, Callable 10/01/2009 @ 104.50
9.000%, 10/01/2014		1,000		998
				16,588
Electric – 7.9%
AES
9.500%, 06/01/2009		2,000		2,120
AES Red Oak Series B
9.200%, 11/30/2029		1,000		1,080
Aquila
14.875%, 07/01/2012		1,000		1,323
CMS Energy
8.500%, 04/15/2011		2,000		2,085
Dynegy-Roseton Danskamme Series B
7.670%, 11/08/2016		2,000		1,995
Edison Mission Energy
7.500%, 06/15/2013 (b)		500		490
Mirant Americas Generation
9.125%, 05/01/2031 (c)		1,500		1,455
Mission Energy Holdings
13.500%, 07/15/2008		2,750		3,066
NRG Energy, Callable 02/01/2011 @ 103.69
7.375%, 02/01/2016		1,000		975
Reliant Energy, Callable 07/15/2008 @ 104.75
9.500%, 07/15/2013		750		754
Sierra Pacific Resources, Callable 03/15/2009 @ 104.31
8.625%, 03/15/2014		1,500		1,589
TXU
4.800%, 11/15/2009		1,000		951
5.550%, 11/15/2014		1,000		907
Utilicorp Canada Finance
7.750%, 06/15/2011 (a)		1,000		1,035
				19,825
Energy – 6.9%
Allis-Chalmers Energy, Callable 01/15/2010 @ 104.50
9.000%, 01/15/2014 (b)		1,500		1,500
Aventine Renewable Energy, Callable 12/15/2006 @ 103
10.910%, 12/15/2011 (b)		1,000		1,054
Baytex Energy, Callable 07/15/2007 @ 104.81
9.625%, 07/15/2010 (a)		1,250		1,291
Bluewater Finance, Callable 02/15/2007 @ 105.13
10.250%, 02/15/2012 (a)		1,000		1,012
Chesapeake Energy, Callable 06/15/2009 @ 103.75
7.500%, 06/15/2014		2,000		1,995
Callable 08/15/2009 @ 103.50
7.000%, 08/15/2014		1,000		967
El Paso Production, Callable 06/01/2008 @ 103.88
7.750%, 06/01/2013		1,000		1,007
Encore Acquisition, Callable 04/15/2009 @ 103.13
6.250%, 04/15/2014		1,000		920
Harvest Operations, Callable 10/15/2008 @ 103.94
7.875%, 10/15/2011 (a)		1,250		1,188
Range Resources, Callable 07/15/2008 @ 103.69
7.375%, 07/15/2013		1,000		993
Tesoro, Callable 11/01/2010 @ 103.31
6.625%, 11/01/2015 (b)		2,000		1,895
Verasun Energy, Callable 12/15/2009 @ 104.94
9.875%, 12/15/2012 (b)		1,500		1,583
Whiting Petroleum
7.000%, 02/01/2014		1,000		945
Callable 05/01/2009 @ 103.63
7.250%, 05/01/2013		950		910
				17,260
Finance – 0.6%
Finova Group
7.500%, 11/15/2009		510		150
Gazprombank
6.500%, 09/23/2015		1,500		1,376
				1,526
Insurance – 1.3%
Fairfax Financial Holdings, Callable 07/15/2008 @ 100
5.000%, 07/15/2023 (a) (c)		1,000		879
Ohio Casualty
7.300%, 06/15/2014		1,000		1,011
Unumprovident Finance
6.850%, 11/15/2015 (a) (b)		1,500		1,475
				3,365
Miscellaneous – 2.7%
Dow Jones Series 5-T2
7.250%, 12/29/2010 (b)		6,829		6,705
Natural Gas – 3.7%
El Paso
6.375%, 02/01/2009 (b)		1,000		982
7.750%, 01/15/2032 (c)		1,000		974
Semgroup, Callable 11/15/2010 @ 104.38
8.750%, 11/15/2015 (b)		1,000		995
Targa Resources, Callable 11/01/2009 @ 104.25
8.500%, 11/01/2013 (b)		1,000		965
Tennessee Gas Pipeline
7.500%, 04/01/2017 (c)		1,500		1,501
Williams
6.375%, 10/01/2010 (b)		1,000		975
7.750%, 06/15/2031 (c)		1,000		985
Williams Partners
7.500%, 06/15/2011 (b) (c)		2,000		2,005
				9,382

First American Funds Annual Report 2006      35

Schedule of  Investments continued

High Income Bond Fund (continued)
DESCRIPTION	PAR		VALUE
Sovereigns (a)– 2.3%
Federal Republic of Brazil
10.250%, 06/17/2013	$	350	$	415
Callable 08/17/2015 @ 100
11.000%, 08/17/2040		650		806
Republic of Indonesia
6.875%, 03/09/2017 (b)		1,000		974
Republic of Panama
7.125%, 01/29/2026		1,000		965
Republic of Turkey
11.875%, 01/15/2030 (c)		500		683
Republic of Uruguay
8.000%, 11/18/2022		1,000		957
Republic of Venezuela
9.250%, 09/15/2027 (c)		800		944
				5,744
Technology – 3.1%
Amkor Technologies, Callable 05/15/2008 @ 103.88
7.750%, 05/15/2013		1,000		905
Avago Technologies, Callable 12/01/2009 @ 105.06
10.125%, 12/01/2013 (a) (b)		500		526
Avnet
9.750%, 02/15/2008		1,000		1,054
Celestica, Callable 07/01/2008 @ 103.94
7.875%, 07/01/2011 (a)		1,000		982
Freescale Semiconductor, Callable 07/15/2008 @ 103.44
6.875%, 07/15/2011 (c)		1,000		1,005
Hynix Semiconductor, Callable 07/01/2009 @ 105.25
9.875%, 07/01/2012 (a) (b) (c)		500		534
Magnachip Semiconductor, Callable 12/15/2009 @ 104
8.000%, 12/15/2014 (a) (c)		1,000		830
Sungard Data Systems, Callable 08/15/2009 @ 104.56
9.125%, 08/15/2013 (b)		1,000		1,038
Xerox
7.200%, 04/01/2016		1,000		1,003
				7,877
Transportation – 3.8%
American Airlines Series 2001-1
7.379%, 11/23/2017		1,020		923
Continental Airlines Series 2001-1, Class B
7.033%, 12/15/2012		388		378
Series RJ03
7.875%, 01/02/2020		852		830
Series 99-2
7.566%, 09/15/2021		1,718		1,673
Delta Air Lines
7.900%, 12/15/2009 (d)		1,000		282
Series 2000-1
7.920%, 05/18/2012 (d)		1,000		930
Hertz, Callable 01/01/2010 @ 104.44
8.875%, 01/01/2014 (b)		1,750		1,794
Progress Rail Services, Callable 04/01/2008 @ 107.75
7.750%, 04/01/2012 (b)		500		540
United Airlines Series 2000-2
7.811%, 04/01/2011 (d) (g)		1,964		2,047
				9,397
Total High Yield Corporate Bonds    (Cost $233,627)				228,502
Closed-End Funds – 1.9%
Aberdeen Asia-Pacific Income Fund (c)		185,000		1,105
Eaton Vance Floating-Rate Income Trust		90,000		1,631
Evergreen Managed Income Fund		60,000		971
Pioneer Floating Rate Trust (c)		60,000		1,126
Total Mutual Funds    (Cost $4,810)				4,833
Asset-Backed Securities – 1.5%
Commercial – 1.5%
GMAC Commercial Mortgage Securities Series 2003-C3, Class A2
4.223%, 04/10/2040	$	4,000		3,844
Manufactured Housing – 0.0%
Green Tree Financial Series 1998-1, Class A4
6.040%, 11/01/2029 (f)		11		11
Total Asset-Backed Securities    (Cost $4,032)				3,855
Preferred Stocks – 1.0%
Pegasus Communications, Fractional Shares (f) (g)		15,109		—
Freeport-McMoran Copper & Gold
5.500%, 12/31/2049		500		626
Homebanc Series A Callable 03/31/2011 @ 25		15,000		377
iStar Financial Series G Callable 12/19/2008 @ 25		20,000		492
NRG Energy, Convertible until 03/16/2009		2,000		494
Rural Cellular Series B Callable until 05/14/2007 @ 1,014.22 (PIK)		500		605
Total Preferred Stocks    (Cost $2,607)				2,594
High Grade Corporate Bonds – 0.7%
Basic Industry – 0.7%
Glencore Funding
6.000%, 04/15/2014 (b) (c)	$	1,000		913
Vale Overseas Limited
8.250%, 01/17/2034 (a)		750		809
Total High Grade Corporate Bonds    (Cost $1,774)				1,722
Common Stocks – 0.5%
Communications – 0.0%
Sullivan Broadcast Holdings, Escrow Shares (e) (f) (g)		400		—
Energy – 0.3%
Canetic Resources Trust (a) (c)		35,000		728
Financials – 0.2%
iStar Financial		10,000		378
Total Common Stocks    (Cost $1,129)				1,106

The accompanying notes are an integral part of the financial statements.

36      First American Funds Annual Report 2006

High Income Bond Fund (continued)
DESCRIPTION	PAR/SHARES		VALUE
Short-Term Investments – 0.6%
Money Market Fund – 0.6%
First American Prime Obligations Fund, Class Z (i)		1,250,858	$	1,251
U.S. Treasury Obligations – 0.0%
U.S. Treasury Bill (j)
4.629%, 09/07/2006		$105		104
Total Short-Term Investments    (Cost $1,355)				1,355
Investments Purchased with Proceeds from Securities Lending (k) – 18.6%
(Cost $46,723)				46,723
Total Investments – 115.9%    (Cost $296,057)				290,690
Other Assets and Liabilities, Net – (15.9)%				(39,801	)
Total Net Assets – 100.0%			$	250,889

(a)	Represents a foreign high yield (non-investment grade) U.S. dollar denominated bond. On June 30, 2006, the value of these investments was $39,732 which represents 15.8% of total net assets.
(b)	Security purchased within the terms of a private placement memorandum, exempt from registration under Rule 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or other “qualified institutional buyers.” These securities have been determined to be liquid under the guidelines established by the fund’s board of directors. As of June 30, 2006, the value of these investments was $66,435 or 26.5% of total net assets. See note 2 in Notes to Financial Statements.
(c)	This security or a portion of this security is out on loan at June 30, 2006. Total loaned securities had a value of $45,881 at June 30, 2006. See note 2 in Notes to Financial Statements.
(d)	Security in default at June 30, 2006.
(e)	Security is fair valued. As of June 30, 2006, the fair value of these investments was $0 or 0.0% of total net assets. See note 2 in Notes to Financial Statements.

(f)  Security is illiquid. As of June 30, 2006, the fair value of these investments was $11 or 0.0% of total net assets. See note 2 in Notes to Financial Statements.

(g)	Non-income producing security
(h)	Variable Rate Security – The rate shown is the rate in effect as of June 30, 2006.

(i)	Investment in affiliated security. This money market fund is advised by FAF Advisors, Inc., which also serves as advisor for this fund. See note 3 in Notes to Financial Statements.
(j)	Security has been deposited as initial margin on open futures contracts. Yield shown is effective yield as of June 30, 2006. See note 2 in Notes to Financial Statements.

(k)  The fund may loan securities in return for collateral in the form of cash, U.S. Government securities, or other high grade debt obligations. The cash collateral is invested in money market funds and various short term high quality debt obligations, such as repurchase agreements, commercial paper, and other corporate obligations. See note 2 in Notes to Financial Statements.

PIK – Payment-in-kind interest is generally paid by issuing additional shares or par of the security rather than paying cash.

Schedule of Open Futures Contracts

	Number of
	Contracts			Notional					Unrealized
	Purchased			Contract			Settlement		Appreciation
Description	(Sold)			Value			Month		(Depreciation)
U.S. Treasury 2 Year Note Futures		27		$	5,475			September 2006	$	(22	)
U.S. Treasury 5 Year Note Futures		120			12,409			September 2006		(36	)
U.S. Treasury 10 Year Note Futures		(191	)		(20,028	)		September 2006		84
U.S. Treasury Long Bond Futures		33			3,520			September 2006		12
									$	38

Credit Default Swap Agreements

Pay/

Reference

Buy/Sell

Receive

Expiration

Notional

Unrealized

Counterparty

Entity

Protection

Fixed Rate

Date

Amount

Depreciation

Citigroup

Dow Jones CDX

EM5 Index

Sell

1.350%

6/20/2011

$

4,000

$

(8

)

First American Funds Annual Report 2006      37

Schedule of  Investments continued

Inflation Protected Securities Fund
DESCRIPTION	PAR		VALUE
U.S. Government & Agency        Securities – 91.2%
Inflation Protected U.S. Treasuries (a) – 91.2%
U.S. Treasury Bonds
2.375%, 01/15/2025	$	26,717	$	26,003
2.000%, 01/15/2026 (b)		9,870		9,037
3.625%, 04/15/2028 (b)		20,115		23,868
3.875%, 04/15/2029 (b)		15,470		19,142
U.S. Treasury Notes
3.375%, 01/15/2007		7,120		7,139
3.625%, 01/15/2008 (b)		24,502		24,923
3.875%, 01/15/2009 (b)		22,355		23,155
4.250%, 01/15/2010 (b)		8,621		9,158
0.875%, 04/15/2010		26,052		24,575
3.500%, 01/15/2011		10,735		11,229
2.375%, 04/15/2011		16,492		16,427
3.000%, 07/15/2012		12,660		13,037
1.875%, 07/15/2013		11,900		11,432
2.000%, 01/15/2014		12,837		12,391
2.000%, 07/15/2014 (b)		17,446		16,801
1.625%, 01/15/2015 (b)		19,649		18,317
1.875%, 07/15/2015		12,531		11,890
2.000%, 01/15/2016 (b)		17,457		16,671
Total U.S. Government & Agency Securities (Cost $309,056)				295,195
Corporate Bonds – 3.1%
Banking – 0.7%
SLM Series MTN, Class A
4.643%, 02/01/2010 (c)		2,400		2,296
Basic Industry – 0.3%
Southern Copper
7.500%, 07/27/2035		950		907
Foreign Agencies – 0.6%
KFW Series MTN
5.213%, 03/03/2008 (c)		1,900		1,879
Sovereigns (d) – 1.5%
Federal Republic of Brazil Callable 08/17/2015 @ 100
11.000%, 08/17/2040		1,000		1,240
Republic of Philippines
9.500%, 02/02/2030		800		916
Republic of Turkey
11.875%, 01/15/2030		700		956
Republic of Venezuela
9.250%, 09/15/2027 (b)		1,650		1,947
				5,059
Total Corporate Bonds (Cost $10,306)				10,141
Asset-Backed Securities – 2.9%
Commercial – 2.4%
Banc of America Commercial Mortgage Series 2006-2, Class A4
5.741%, 05/10/2045		4,590		4,563
Deutsche Mortgage and Asset Receiving Series 1998-C1, Class A2
6.538%, 06/15/2031		278		280
GMAC Commercial Mortgage Securities Series 2003-C3, Class A2
4.223%, 04/10/2040		2,000		1,922
GS Mortgage Securities II Series 2003-C1, Class A2A
3.590%, 01/10/2040		500		486
Nomura Asset Securities Series 1998-D6, Class A1B
6.590%, 03/15/2030		500		507
				7,758
Other – 0.5%
Global Signal Trust Series 2006-1, Class C
5.707%, 02/15/2036 (e)		1,330		1,305
GRP/ AG Real Estate Asset Trust Series 2005-1, Class A
4.850%, 01/25/2035 (e)		238		235
				1,540
Total Asset-Backed Securities
(Cost $9,545)				9,298
Collateralized Mortgage Obligation –  U.S. Government Agency  Mortgage-Backed Securities – 0.3%
Fixed Rate – 0.3%
Federal Home Loan Mortgage Corporation Series 2763, Class TA
4.000%, 03/15/2011		363		350
Federal Home Loan Mortgage Corporation Pool
4.000%, 10/01/2010, #M80855 (b)		765		735
Total Collateralized Mortgage Obligation – U.S. Government Agency Mortgage-Backed Securities
(Cost $1,141)				1,085
Municipal Bond – 0.3%
Sullivan County Health, Education & Housing Facilities, Hospital Revenue, Wellmont Health, Class B, Callable 09/01/2010 @ 100
6.950%, 09/01/2016
(Cost $1,000)		1,000		1,004
Short-Term Investments – 1.5%
Money Market Fund – 1.2%
First American Prime Obligations Fund, Class Z (f)		3,949,236		3,949
U.S. Treasury Obligation – 0.3%
U.S. Treasury Bill
4.629%, 09/07/2006 (g)	$	780		773
Total Short-Term Investments    (Cost $4,722)				4,722
Investments Purchased with Proceeds   from Securities Lending (h) – 48.8%
(Cost $157,853)				157,853
Total Investments – 148.1%    (Cost $493,623)				479,298
Other Assets and Liabilities, Net – (48.1)%				(155,726	)
Total Net Assets – 100.0%			$	323,572

(a)	U.S. Treasury inflation-protection securities (TIPS) are securities in which the principal amount is adjusted for inflation and the semiannual interest payments equal a fixed percentage of the inflation-adjusted principal amount.
(b)	This security or a portion of this security is out on loan at June 30, 2006. Total loaned securities had a value of $155,556 at June 30, 2006. See note 2 in Notes to Financial Statements.
(c)	Variable rate security – The rate shown is the rate in effect as of June 30, 2006.

The accompanying notes are an integral part of the financial statements.

38      First American Funds Annual Report 2006

Inflation Protected Securities Fund (concluded)

(d)

Represents a foreign high yield (non-investment grade) U.S. dollar denominated bond. On June 30, 2006, the value of these investments was $5,059 which represents 1.5% of total net assets.

(e)

Security purchased within the terms of a private placement memorandum, exempt from registration under Rule 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or other “qualified institutional buyers.” These securities have been determined to be liquid under guidelines established by the fund’s board of directors. As of June 30, 2006, the value of these investments was $1,540 or 0.5% of total net assets. See note 2 in Notes to Financial Statements.

(f)  Investment in affiliated security. This money market fund is advised by FAF Advisors, Inc., which also serves as advisor for this fund. See note 3 in Notes to Financial Statements.

(g)	Security has been deposited as initial margin on open futures contracts. Yield shown is the effective yield as of June 30, 2006. See note 2 in Notes to Financial Statements.
(h)	The fund may loan securities in return for collateral in the form of cash, U.S. Government securities, or other high grade debt obligations. The cash collateral is invested in money market funds and various short-term, high quality debt obligations, such as repurchase agreements, commercial paper, and other corporate obligations. See note 2 in Notes to Financial Statements.

Schedule of Open Futures Contracts

	Number of
	Contracts			Notional					Unrealized
	Purchased			Contract			Settlement		Appreciation
Description	(Sold)			Value			Month		(Depreciation)
Australian Dollar Currency Futures		38		$	2,823			September 2006	$	26
Canadian Dollar Currency Futures		104			9,330			September 2006		(43	)
Euro-Bund Futures		34			5,015			September 2006		(26	)
Euro Currency Futures		41			6,586			September 2006		94
Japan 10 Year Bond Futures		(8	)		(9,203	)		September 2006		21
Japanese Yen Currency Futures		87			9,605			September 2006		51
Swiss Franc Currency Futures		39			4,017			September 2006		35
U.S. Treasury 2 Year Note Futures		(357	)		(72,393	)		September 2006		257
U.S. Treasury 5 Year Note Futures		(103	)		(10,651	)		September 2006		59
U.S. Treasury 10 Year Note Futures		(2	)		(210	)		September 2006		(2	)
U.S. Treasury Long Bond Futures		124			13,225			September 2006		(36	)
									$	436

Credit Default Swap Agreements

			Pay/
	Reference	Buy/Sell	Receive	Expiration	Notional	Unrealized
Counterparty	Entity	Protection	Fixed Rate	Date	Amount	Depreciation
UBS	Dow Jones CDX
	NA HY6 Index	Sell	3.450%	6/20/2011	$3,000		$(33	)

Interest Rate Swap Agreements

		Pay/
		Receive
	Floating	Floating	Fixed	Expiration	Notional	Unrealized
Counterparty	Rate Index	Rate	Rate	Date	Amount	Depreciation
Citigroup	3-Month LIBOR	Pay	5.427%	11/10/2008	$26,500	$	(111	)
Citigroup	3-Month LIBOR	Pay	5.660%	6/19/2016	6,000		(29	)
UBS	3-Month LIBOR	Pay	5.138%	3/06/2008	45,000		(346	)
						$	(486	)

Intermediate Government Bond Fund
DESCRIPTION		PAR/SHARES		VALUE
U.S. Government & Agency  Securities – 99.5%
U.S. Agency Debentures – 58.8%
Federal Farm Credit Bank
3.250%, 06/15/2007		$	1,490	$	1,459
2.625%, 09/17/2007			2,000		1,934
3.000%, 12/17/2007			1,805		1,746
4.125%, 07/17/2009			1,100		1,060
5.750%, 01/18/2011			1,800		1,821
4.875%, 02/18/2011			1,600		1,561
Federal Home Loan Bank
2.875%, 02/15/2007			1,350		1,328
4.430%, 04/07/2008			2,000		1,965
4.250%, 05/16/2008			1,600		1,566
4.100%, 06/13/2008			1,590		1,550
5.625%, 06/13/2016			900		889
Tennessee Valley Authority
5.375%, 11/13/2008			2,455		2,450
5.625%, 01/18/2011			3,450		3,459
6.790%, 05/23/2012			3,175		3,373
					26,161
U.S. Treasuries – 40.7%
U.S. Treasury Bond (STRIPS)
0.000%, 11/15/2011 (a)			1,670		1,638
U.S. Treasury Bonds
11.750%, 11/15/2014			1,575		1,894
9.125%, 05/15/2018			805		1,078
9.000%, 11/15/2018			1,075		1,437
8.125%, 08/15/2019			600		760
U.S. Treasury Notes
3.375%, 11/15/2008			140		134
3.000%, 02/15/2009			2,345		2,223
3.625%, 07/15/2009			1,060		1,016
3.875%, 05/15/2010			1,305		1,249
3.625%, 06/15/2010			1,800		1,706
3.875%, 09/15/2010			270		258
4.375%, 12/15/2010			2,495		2,423
2.375%, 04/15/2011			736		733
4.500%, 11/15/2015			1,595		1,519
					18,068
Total U.S. Government & Agency Securities
	(Cost $45,525)				44,229
Short-Term Investment – 0.5%
First American U.S. Treasury Money Market Fund, Class Z (b)
	(Cost $235)		234,785		235
Total Investments – 100.0%
(Cost $45,760)					44,464
Other Assets and Liabilities, Net – 0.0%					6
Total Net Assets – 100.0%				$	44,470

(a)

Principal Only – Represents securities that entitle holders to receive only principal payments on the underlying mortgages. The yield to maturity of a principal only is sensitive to the rate of principal payments on the underlying mortgage assets. A slow (rapid) rate of principal repayments may have an adverse (positive) effect on yield to maturity. The zero coupon rate represents the lack of interest as part of payments received.

(b)

Investment in affiliated security. This money market fund is advised by FAF Advisors, Inc., which also serves as advisor for this fund. See note 3 in Notes to Financial Statements.

STRIPS – Separate Trading of Registered Interest and Principal Securities.

First American Funds Annual Report 2006      39

Schedule of  Investments continued

Intermediate Term Bond Fund
DESCRIPTION	PAR		VALUE
Asset-Backed Securities – 30.8%
Automotive – 5.4%
Harley Davidson Motorcycle Trust Series 2005-4, Class A2
4.850%, 06/15/2012	$	4,240	$	4,176
Hertz Vehicle Financing Series 2005-2A, Class A6
5.080%, 11/25/2011 (a)		8,425		8,197
Honda Auto Receivables Owner Trust Series 2005-5, Class A4
4.690%, 02/15/2011		9,895		9,697
Series 2005-6, Class A4
4.930%, 03/18/2011		7,040		6,921
Volkswagen Auto Loan Enhanced Trust Series 2005-1, Class A4
4.860%, 04/20/2012		10,940		10,755
Wachovia Auto Owner Trust Series 2005-B, Class A4
4.840%, 04/20/2011		10,960		10,774
				50,520
Commercial – 14.3%
Banc of America Commercial Mortgage Series 2004-4, Class A3
4.128%, 07/10/2042		8,715		8,337
Series 2006-2, Class A4
5.741%, 05/10/2045		8,710		8,659
Citigroup/ Deutsche Bank Commercial Mortgage Series 2006-CD2, Class A2
5.408%, 01/15/2046		20,100		19,790
Commercial Mortgage Pass-Through Certificates Series 2006-CN2A, Class A2FX
5.449%, 02/05/2019 (a)		5,040		4,944
Series 2005-LP5, Class A2
4.630%, 05/10/2043		7,345		7,086
Deutsche Mortgage and Asset Receiving Series 1998-C1, Class A2
6.538%, 06/15/2031		3,923		3,957
GE Capital Commercial Mortgage Corporation Series 2004-C3, Class A2
4.433%, 07/10/2039		11,305		10,939
GMAC Commercial Mortgage Securities Series 2004-C2, Class A1
3.896%, 08/10/2038		6,039		5,868
Series 2005-C1, Class A2
4.471%, 05/10/2043		10,475		10,048
Greenwich Capital Commercial Funding Series 2003-C1, Class A2
3.285%, 07/05/2035		5,000		4,693
GS Mortgage Securities II Series 2004-GG2, Class A1
3.109%, 08/10/2038		2,096		2,086
Series 2003-C1, Class A2A
3.590%, 01/10/2040		13,840		13,445
JP Morgan Chase Commercial Mortgage Securities, Series 2005-LDP5, Class A3
5.208%, 12/15/2044 (b)		10,510		10,183
Nomura Asset Securities Series 1998-D6, Class A1B
6.590%, 03/15/2030		11,675		11,835
Wachovia Bank Commercial Mortgage Trust Series 2005-C19, Class A2
4.516%, 05/15/2044		12,533		11,964
				133,834
Credit Card – 6.6%
Chase Issuance Trust Series 2005-A10, Class A10
4.650%, 12/15/2012		18,300		17,682
Citibank Credit Card Issuance Trust Series 2004-A4, Class A4
3.200%, 08/24/2009		3,000		2,919
Series 2006-B2, Class B2
5.150%, 03/07/2011		4,495		4,431
Series 2006-A4, Class A4
5.450%, 05/10/2013		15,275		15,146
MBNA Credit Card Master Note Trust Series 2003-A1, Class A1
3.300%, 07/15/2010		12,560		12,126
Providian Gateway Master Trust Series 2004-DA, Class A
3.350%, 09/15/2011 (a)		10,355		10,089
				62,393
Home Equity – 0.4%
Amresco Residential Security Mortgage Series 1997-3, Class A9
6.960%, 03/25/2027		213		212
Contimortgage Home Equity Loan Trust Series 1997-2, Class A9
7.090%, 04/15/2028		260		258
Residential Funding Mortgage Securities Series 2004-HI2, Class A3
4.270%, 11/25/2016		2,005		1,994
Saxon Asset Securities Trust    Series 2004-1, Class A
5.351%, 03/25/2035 (b)		1,064		1,064
				3,528
Manufactured Housing – 1.1%
Green Tree Financial Series 1996-9, Class A5
7.200%, 01/15/2028		216		220
Origen Manufactured Housing Series 2005-A, Class A2
4.490%, 05/15/2018		10,095		9,833
				10,053
Other – 3.0%
Global Signal Trust Series 2004-2A, Class A
4.232%, 12/15/2014 (a)		7,390		7,066
Series 2006-1, Class C
5.707%, 02/15/2036 (a)		4,420		4,336
GRP/ AG Real Estate Asset Trust Series 2004-2, Class A
4.207%, 07/25/2034 (a)		257		252
Series 2005-1, Class A
4.850%, 01/25/2035 (a)		1,198		1,182

The accompanying notes are an integral part of the financial statements.

40      First American Funds Annual Report 2006

Intermediate Term Bond Fund (continued)
DESCRIPTION	PAR		VALUE
Small Business Administration Series 2005-P10B, Class 1
4.940%, 08/10/2015	$	6,464	$	6,236
Series 2006-P10A, Class 1
5.408%, 02/10/2016		9,442		9,174
				28,246
Total Asset-Backed Securities    (Cost $296,551)				288,574
U.S. Government & Agency Securities – 27.4%
U.S. Agency Debentures (c) – 16.4%
Federal Home Loan Bank
4.430%, 04/07/2008		24,000		23,579
Federal Home Loan Mortgage Corporation
4.250%, 06/23/2008		11,800		11,534
Callable 08/04/2006 @ 100
4.500%, 08/04/2008		11,420		11,205
Federal National Mortgage Association Callable 08/25/2006 @ 100
4.750%, 08/25/2008		11,345		11,182
Callable until 08/25/2008 @ 100
3.875%, 11/17/2008		13,000		12,531
7.250%, 01/15/2010		11,170		11,804
3.875%, 02/15/2010		12,260		11,628
4.500%, 02/15/2011		18,385		17,678
5.125%, 04/15/2011		20,600		20,289
6.125%, 03/15/2012		7,020		7,233
5.250%, 08/01/2012		15,225		14,876
				153,539
U.S. Treasuries (c) – 11.0%
U.S. Treasury Bonds
9.125%, 05/15/2018		18,175		24,339
9.000%, 11/15/2018		25,860		34,560
8.750%, 05/15/2020		7,630		10,193
U.S. Treasury Notes
4.250%, 01/15/2011		4,900		4,731
4.500%, 02/28/2011		13,850		13,505
2.375%, 04/15/2011		15,208		15,148
4.500%, 02/15/2016		1,250		1,189
				103,665
Total U.S. Government & Agency Securities     (Cost $264,204)				257,204
Corporate Bonds – 17.4%
Banking – 1.0%
Credit Suisse First Boston
3.875%, 01/15/2009		6,270		6,014
J.P. Morgan Chase
5.150%, 10/01/2015		3,290		3,071
				9,085
Basic Industry – 1.0%
Celulosa Arauco Constitucion
5.625%, 04/20/2015		2,000		1,863
Falconbridge
7.350%, 06/05/2012		3,290		3,427
Teck Cominco
5.375%, 10/01/2015		2,810		2,617
Vale Overseas
6.250%, 01/11/2016		1,525		1,452
				9,359
Brokerage – 2.1%
Goldman Sachs Group
5.350%, 01/15/2016		9,685		9,147
Merrill Lynch
6.050%, 05/16/2016		4,695		4,664
Morgan Stanley
5.375%, 10/15/2015		6,235		5,902
				19,713
Capital Goods – 0.3%
Hutchison Whampoa International
6.250%, 01/24/2014 (a)		2,680		2,669
Communications – 1.6%
Deutsche Telecom
8.500%, 06/15/2010		3,690		3,962
Telecom Italia Capital
4.000%, 11/15/2008 (c)		3,335		3,199
Verizon Global Funding
7.250%, 12/01/2010 (c)		3,750		3,927
6.875%, 06/15/2012 (c)		3,925		4,071
				15,159
Consumer Cyclicals – 1.7%
CBS
5.625%, 08/15/2012 (c)		3,320		3,244
DaimlerChrysler
6.500%, 11/15/2013		2,230		2,229
Harrah’s
5.625%, 06/01/2015 (c)		3,535		3,270
Mohawk Industries
5.750%, 01/15/2011		3,935		3,864
Sabre Holdings
6.350%, 03/15/2016		3,880		3,629
				16,236
Consumer Non Cyclical – 0.4%
Kroger
7.450%, 03/01/2008		4,000		4,098
Electric – 2.4%
DTE Energy
7.050%, 06/01/2011		4,600		4,779
MidAmerican Energy Holdings
3.500%, 05/15/2008		4,600		4,413
National Rural Utilities
5.750%, 08/28/2009		3,850		3,856
Ohio Power Series K
6.000%, 06/01/2016		2,100		2,071
Oncor Electric Delivery
6.375%, 01/15/2015		3,140		3,147
Pacific Gas & Electric
4.200%, 03/01/2011		2,065		1,931
Southern California Edison
5.000%, 01/15/2014		2,000		1,890
				22,087
Energy – 0.7%
Gazprom International
7.201%, 02/01/2020 (a)		3,500		3,548
Tengizcheveroil Finance
6.124%, 11/15/2014 (a)		3,095		2,991
				6,539
Finance – 0.4%
American General Finance
3.875%, 10/01/2009		4,345		4,109

First American Funds Annual Report 2006      41

Schedule of  Investments continued

Intermediate Term Bond Fund (continued)
DESCRIPTION	PAR		VALUE
Industrial Other – 0.5%
Johnson Controls
5.250%, 01/15/2011	$	4,720	$	4,600
Insurance – 0.4%
Liberty Mutual Group
5.750%, 03/15/2014 (a)		4,340		4,077
Miscellaneous – 1.3%
Core Investment Grade Trust
4.659%, 11/30/2007		12,712		12,506
Natural Gas – 0.7%
Duke Energy Field Services
7.875%, 08/16/2010		6,005		6,418
Real Estate Investment Trusts – 1.8%
Colonial Realty
4.750%, 02/01/2010		4,915		4,706
Istar Financial
5.650%, 09/15/2011		4,225		4,131
Mack-Cali Realty
7.250%, 03/15/2009		4,500		4,623
Prologis 2006
5.750%, 04/01/2016		3,525		3,398
				16,858
Sovereign – 0.9%
United Mexican States
5.625%, 01/15/2017 (c)		8,680		8,072
Technology – 0.2%
Chartered Semiconductor
5.750%, 08/03/2010 (c)		1,500		1,459
Total Corporate Bonds     (Cost $168,361)				163,044
Collateralized Mortgage Obligation –  Private Mortgage-Backed Securities – 12.8%
Adjustable Rate (b) – 9.8%
Adjustable Rate Mortgage Trust Series 2005-10, Class 1A21
4.741%, 01/25/2036		6,662		6,568
CS First Boston Mortgage Securities Series 2003-AR24, Class 2A4
4.029%, 10/25/2033		13,390		13,022
IMPAC CMB Trust Series 2003-12, Class A1
5.461%, 12/25/2033		1,776		1,777
Indymac Index Mortgage Loan Trust Series 2006-AR13, Class A1
6.112%, 07/25/2036		7,192		7,212
Sequoia Mortgage Trust Series 2004-4, Class X1
0.765%, 05/20/2034 (d)		66,688		487
Structured Mortgage Loan Trust Series 2004-11, Class A
6.623%, 08/25/2034		1,334		1,338
Washington Mutual Series 2003-AR10, Class A6
4.065%, 10/25/2033		16,305		15,761
Wells Fargo Mortgage Backed Securities Trust Series 2003-J, Class 2A5
4.449%, 10/25/2033		11,500		10,762
Series 2003-O, Class 5A1
4.812%, 01/25/2034		10,080		9,663
Series 2004-E, Class A5
3.662%, 05/25/2034		9,010		8,754
Series 2004-N, Class A3
4.098%, 08/25/2034		11,108		10,961
Wells Fargo Mortgage Backed Securities Trust Series 2004-EE, Class B1
3.988%, 12/25/2034		5,686		5,426
				91,731
Fixed Rate – 3.0%
Banc of America Mortgage Securities Series 2005-5, Class 1A21
5.000%, 06/25/2035		7,898		7,698
Bank of America Mortgage Securities Series 2003-6, Class 1A29
4.250%, 08/25/2033		9,000		8,787
Countrywide Alternative Loan Trust Series 2004-2CB, Class 1A1
4.250%, 03/25/2034		4,012		3,901
Salomon Brothers Mortgage Securities Series 1986-1, Class A
6.000%, 12/25/2011		109		109
Structured Asset Securities Corporation Series 2005-6, Class 5A6
5.000%, 05/25/2035		8,241		7,963
Westam Mortgage Financial Series 11, Class A
6.360%, 08/26/2020		43		43
				28,501
Total Collateralized Mortgage Obligation –    Private Mortgage-Backed Securities    (Cost $123,267)				120,232
U.S. Government Agency Mortgage-Backed Securities – 5.6%
Adjustable Rate (b) – 2.0%
Federal Home Loan Mortgage Corporation Pool
5.447%, 01/01/2028, #786281		1,945		1,970
5.935%, 04/01/2029, #847190 (c)		2,640		2,682
5.676%, 10/01/2030, #847209 (c)		4,817		4,897
5.768%, 05/01/2031, #847161		1,345		1,368
5.755%, 09/01/2033, #847210 (c)		4,215		4,288
Federal National Mortgage Association Pool
6.133%, 09/01/2033, #725111		3,388		3,459
				18,664
Fixed Rate – 3.6%
Federal Home Loan Mortgage Corporation Pool
5.500%, 09/01/2006, #G40394		15		16
4.000%, 10/01/2010, #M80855 (c)		6,513		6,255

The accompanying notes are an integral part of the financial statements.

42      First American Funds Annual Report 2006

Intermediate Term Bond Fund (continued)
DESCRIPTION	PAR		VALUE
Federal National Mortgage Association Pool
3.900%, 06/01/2010, #461013	$	10,958	$	10,280
3.790%, 07/01/2013, #386314 (c)		9,708		8,771
4.000%, 09/01/2013, #254909		8,931		8,467
				33,789
Total U.S. Government Agency Mortgage-    Backed Securities    (Cost $54,074)				52,453
Collateralized Mortgage Obligation –   U.S. Government Agency   Mortgage-Backed Securities – 4.9%
Fixed Rate – 4.9%
Federal Home Loan Mortgage Corporation Series 2763, Class TA
4.000%, 03/15/2011		7,042		6,803
Series 1167, Class E
7.500%, 11/15/2021		30		30
Series 1286, Class A
6.000%, 05/15/2022		108		108
Series 2893, Class PB
5.000%, 12/15/2027 (c)		11,590		11,280
Series 2991, Class QD
5.000%, 08/15/2034 (c)		11,705		11,138
Series 2987, Class KE
5.000%, 12/15/2034 (c)		7,785		7,408
Federal National Mortgage Association Series 1990-89, Class K
6.500%, 07/25/2020		23		24
Series 2004-76, Class CE
4.500%, 02/25/2021 (c)		9,815		9,438
				46,229
Total Collateralized Mortgage Obligation –    U.S. Government Agency    Mortgage-Backed Securities    (Cost $48,373)				46,229
Municipal Bond – 0.2%
Sullivan County Health, Education & Housing    Facilities, Hospital Revenue, Wellmont Health,    Class B, Callable 09/01/2010 @ 100 6.950%,    09/01/2016    (Cost $2,130)		2,130		2,139
Short-Term Investment – 0.1%
U.S. Treasury Obligation – 0.1%
U.S. Treasury Bill
4.629%, 09/07/2006 (e)        (Cost $669)		675		669
Investments Purchased with Proceeds       from Securities Lending (f) – 36.4%      (Cost $340,793)
Total Investments – 135.6%   (Cost $1,298,422)				1,271,337
Other Assets and Liabilities, Net – (35.6)%				(333,866	)
Total Net Assets – 100.0%			$	937,471

(a)	Security purchased within the terms of a private placement memorandum, exempt from registration under Rule 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or other “qualified institutional buyers.” These securities have been determined to be liquid under the guidelines established by the fund’s board of directors. As of June 30, 2006, the value of these investments was $49,351 or 5.3% of total net assets. See note 2 in Notes to Financial Statements.
(b)	Variable Rate Security – The rate shown is the rate in effect as of June 30, 2006.
(c)	This security or a portion of this security is out on loan at June 30, 2006. Total loaned securities had a value of $334,380 at June 30, 2006. See Note 2 in Notes to Financial Statements.
(d)	Interest only – Represents securities that entitle holders to receive only interest payments on the underlying mortgages. The yield to maturity of an interest only is extremely sensitive to the rate of principal payments on the underlying mortgage assets. A rapid (slow) rate of principal repayments may have an adverse (positive) effect on yield to maturity. The principal amount shown is the notional amount of the underlying mortgages. Interest rate disclosed represents the coupon rate in effect as of June 30, 2006.
(e)	Security has been deposited as initial margin on open futures contracts. Yield shown is the effective yield as of June 30, 2006. See note 2 in Notes to Financial Statements.

(f)  The fund may loan securities in return for collateral in the form of cash, U.S. Government securities, or other high grade debt obligations. The cash collateral is invested in various short-term fixed income securities, such as repurchase agreements, commercial paper, money market funds and other corporate obligations. See note 2 in Notes to Financial Statements.

Schedule of Open Futures Contracts

	Number of			Notional
	Contracts			Contract			Settlement		Unrealized
Description	Sold			Value			Month		Appreciation
U.S. Treasury 2 Year Note Futures		(334	)	$	(67,729	)		September 2006	$	244
U.S. Treasury 5 Year Note Futures		(167	)		(17,269	)		September 2006		49
U.S. Treasury 10 Year Note Futures		(34	)		(3,565	)		September 2006		7
U.S. Treasury Long Bond Futures		(179	)		(19,091	)		September 2006		34
									$	334

Credit Default Swap Agreements

				Pay/
	Reference	Buy/Sell		Receive		Expiration		Notional		Unrealized
Counterparty	Entity	Protection		Fixed Rate		Date		Amount		Appreciation
J.P. Morgan	Dow Jones CDX
	IG Hvol 6 Index		Sell		0.750%		6/20/2011	$	11,000	$	80
UBS	Dow Jones CDX
	IG Hvol 6 Index		Sell		0.750%		6/20/2011		25,000		106
										$	186

Interest Rate Swap Agreements

Floating

Pay/

Rate

Receive

Expiration

Notional

Unrealized

Counterparty

Index

Floating Rate

Fixed Rate

Date

Amount

Depreciation

Citigroup

3-Month LIBOR

Pay

5.000%

2/09/2009

$

25,000

$

(373

)

Citigroup

3-Month LIBOR

Pay

5.427%

11/10/2008

81,800

(343

)

Citigroup

3-Month LIBOR

Pay

5.660%

6/19/2006

19,000

(102

)

$

(818

)

See notes to financial statements

First American Funds Annual Report 2006      43

Schedule of  Investments continued

Short Term Bond Fund
DESCRIPTION	PAR		VALUE
Asset-Backed Securities – 34.8%
Automotive – 9.8%
Auto Bond Receivables Trust Series 1993-I, Class A
6.125%, 11/15/2021 (a) (b)	$	106	$	—
Capital One Auto Finance Trust Series 2003-A, Class A4A
2.470%, 01/15/2010		5,411		5,303
Ford Credit Auto Owner Trust Series 2005-B, Class A3
4.170%, 01/15/2009		10,000		9,897
Harley-Davidson Motorcycle Trust Series 2003-2, Class A2
2.070%, 02/15/2011		4,870		4,712
Hertz Vehicle Financing Series 2005-2A, Class A2
4.930%, 02/25/2010 (c)		5,460		5,364
M&I Auto Loan Trust Series 2005-1, Class A2
4.750%, 06/20/2008		5,000		4,984
Nissan Auto Receivables Owner Trust Series 2005-A, Class A2
3.220%, 07/16/2007		1,038		1,037
Series 2006-B, Class A3
5.160%, 02/15/2010		6,000		5,960
Toyota Auto Receivables Owner Trust Series 2003-B, Class A4
2.790%, 01/15/2010		2,000		1,981
Series 2003-A, Class A4
2.200%, 03/15/2010		3,004		3,001
Volkswagen Auto Loan Enhanced Trust Series 2005-1, Class A4
4.860%, 04/20/2012		7,000		6,882
WFS Financial Owner Trust Series 2004-3, Class A3
3.300%, 03/17/2009		3,039		3,014
				52,135
Commercial – 12.6%
Banc of America Commercial Mortgage Series 2004-2, Class A1
2.764%, 11/10/2038		4,622		4,439
Series 2004-4, Class A2
4.041%, 07/10/2042		7,475		7,179
Bear Stearns Commercial Mortgage Securities Series 2004-T14, Class A1
3.570%, 01/12/2041		4,341		4,188
Commercial Mortgage Series 2004-LB3A, Class A1
3.765%, 07/10/2037		5,084		4,983
GMAC Commercial Mortgage Securities Series 1999-C1, Class A2
6.175%, 05/15/2033		5,825		5,876
Series 2004-C1, Class A2
4.100%, 03/10/2038		4,000		3,826
Greenwich Capital Commercial Funding Series 2004-GG1, Class A2
3.835%, 06/10/2036		5,250		5,122
Series 2005-GG5, Class A2
5.117%, 04/10/2037		7,805		7,624
GS Mortgage Securities Series 2004-C1, Class A1
3.659%, 10/10/2028		5,859		5,626
JP Morgan Chase Commercial Mortgage Securities Series 2001-CIB3, Class A2
6.044%, 11/15/2035		6,235		6,274
LB-UBS Commercial Mortgage Trust Series 2003-C3, Class A2
3.086%, 05/15/2027		6,200		5,926
Series 2004-C2, Class A1
2.946%, 03/15/2029		6,636		6,280
				67,343
Credit Card – 2.5%
Citibank Credit Card Issuance Trust Series 2004-A1, Class A1
2.550%, 01/20/2009		800		787
MBNA Credit Card Master Note Trust Series 2005-A1, Class A1
4.200%, 09/15/2010		10,000		9,778
Providian Gateway Master Trust Series 2004-DA, Class A
3.350%, 09/15/2011 (c)		2,625		2,558
				13,123
Equipment Leases – 1.1%
CIT Equipment Collateral Series 2004-VT1, Class A3
2.200%, 03/20/2008		2,256		2,227
CNH Equipment Trust Series 2004-A, Class A3B
2.940%, 10/15/2008		3,599		3,549
				5,776
Home Equity – 3.7%
Equivantage Home Equity Loan Trust     Series 1996-1, Class A
6.550%, 10/25/2025		154		154
Series 1996-4, Class A
7.250%, 01/25/2028		553		551
GMAC Mortgage Corporation Loan Trust Series 2004-HE2, Class M1
3.950%, 10/25/2033		4,850		4,682
Home Equity Mortgage Trust Series 2004-6, Class M2
5.321%, 04/25/2035		1,500		1,430
IMC Home Equity Loan Trust Series 1998-3, Class A7
6.720%, 08/20/2029		2,310		2,305
New Century Home Equity Loan Trust Series 1997-NC6, Class A7
7.190%, 01/25/2029		813		810
Residential Funding Mortgage Securities Series 2004-HI2, Class A3
4.270%, 11/25/2016		1,844		1,835
Saxon Asset Securities Trust Series 2004-1, Class M1
5.853%, 03/25/2035 (d)		8,000		8,015
				19,782
Manufactured Housing – 0.6%
Origen Manufactured Housing Series 2005-B, Class A2
5.247%, 12/15/2018		3,230		3,176
Other – 1.8%
Global Signal Trust Series 2004-2A, Class A
4.232%, 12/15/2014 (c)		6,380		6,100
Series 2006-1, Class C
5.707%, 02/15/2036 (c)		2,750		2,697

The accompanying notes are an integral part of the financial statements.

44      First American Funds Annual Report 2006

Short Term Bond Fund (continued)
DESCRIPTION			PAR		VALUE
GRP/ AG Real Estate Asset Trust Series 2004-2, Class A
4.210%, 07/25/2034 (c)			$	257	$	252
Series 2005-1, Class A
4.850%, 01/25/2035 (c)				860		849
						9,898
Utilities – 2.7%
Detroit Edison Securitization Funding Series 2001-1, Class A3
5.875%, 03/01/2010				3,436		3,446
Massachusetts RRB Special Purpose Trust Series 1999-1, Class A4
6.910%, 09/15/2009				3,115		3,141
Peco Energy Transition Trust Series 1999-A, Class A6
6.050%, 03/01/2009				5,253		5,264
Public Service New Hampshire Funding Series 2001-1, Class A2
5.730%, 11/01/2010				2,473		2,480
						14,331
Total Asset-Backed Securities     (Cost $175,045)						185,564
U.S. Government Agency Mortgage-Backed    Securities – 16.5%
Adjustable Rate (d) – 7.4%
Federal Home Loan Mortgage Corporation Pool
5.973%, 12/01/2026, #756591				1,315		1,338
6.072%, 01/01/2029, #846946 (e)				910		924
5.437%, 10/01/2029, #786853				619		637
6.476%, 04/01/2030, #972055 (e)				651		664
5.860%, 05/01/2030, #847014 (e)				784		792
5.600%, 06/01/2031, #847367				414		421
5.591%, 08/01/2032, #847331 (e)				6,473		6,594
6.001%, 10/01/2032, #847063 (e)				685		703
4.236%, 05/01/2033, #780456				2,213		2,162
Federal National Mortgage Association Pool
6.092%, 11/01/2025, #433988 (e)				1,039		1,048
6.250%, 02/01/2028, #415285				238		242
5.723%, 10/01/2030, #847241 (e)				3,619		3,678
5.613%, 06/01/2031, #625338 (e)				695		702
6.443%, 12/01/2031, #535363				2,175		2,217
6.314%, 03/01/2032, #545791				296		302
6.710%, 05/01/2032, #545717				1,809		1,826
7.002%, 05/01/2032, #634948 (e)				382		390
4.494%, 10/01/2032, #661645 (e)				1,314		1,302
4.699%, 12/01/2032, #671884				2,467		2,456
6.701%, 04/01/2034, #775389				859		869
4.251%, 07/01/2034, #795242 (e)				4,086		3,969
5.768%, 08/01/2036, #555369 (e)				1,326		1,352
Government National Mortgage Association Pool
4.750%, 08/20/2021, #8824				286		287
4.750%, 07/20/2022, #8006 (e)				336		336
4.750%, 09/20/2025, #8699				185		185
4.375%, 04/20/2026, #8847				182		182
4.750%, 08/20/2027, #80106				58		59
5.375%, 01/20/2028, #80154				97		97
4.375%, 05/20/2029, #80283 (e)				475		476
4.375%, 06/20/2029, #80291 (e)				842		844
4.875%, 11/20/2030, #80469 (e)				487		486
4.375%, 04/20/2031, #80507 (e)				260		261
4.500%, 08/20/2031, #80535 (e)				989		990
5.500%, 02/20/2032, #80580 (e)				261		261
						39,052
Fixed Rate – 9.1%
Federal Home Loan Mortgage Corporation Pool
5.500%, 10/01/2006, #M90680				62		62
7.750%, 07/01/2009, #184513				7		7
Federal National Mortgage Association Pool
6.195%, 06/01/2007, #410601 (e)				4,857		4,847
4.250%, 09/15/2007 (e)				15,000		14,781
6.625%, 09/15/2009 (e)				12,355		12,773
3.900%, 06/01/2010, #461013				6,710		6,295
5.500%, 05/01/2012, #254340 (e)				1,383		1,372
4.000%, 12/01/2013, #255039 (e)				5,330		5,048
4.000%, 07/01/2014, #255322 (e)				3,650		3,444
						48,629
Total U.S. Government Agency Mortgage-     Backed Securities     (Cost $88,011)						87,861
U.S. Government & Agency    Securities – 14.5%
U.S. Agency Debentures – 7.0%
Federal Home Loan Mortgage Corporation
3.875%, 06/15/2008 (e)				15,000		14,562
Callable 10/17/2006 @ 100
		4.750%, 10/17/2008 (e)		6,000		5,889
Federal National Mortgage Association
4.000%, 09/02/2008 (e)				10,000		9,683
4.250%, 05/15/2009 (e)				7,500		7,267
						37,401
U.S. Treasuries – 7.5%
U.S. Treasury Bond (STRIPS)
0.000%, 11/15/2011 (e) (f)				11,200		10,988
U.S. Treasury Notes
2.500%, 09/30/2006 (e)				9,000		8,942
4.000%, 09/30/2007 (e)				5,030		4,955
4.375%, 12/31/2007 (e)				15,320		15,138
						40,023
Total U.S. Government & Agency Securities
	(Cost $78,076)					77,424
Corporate Bonds – 13.8%
Banking – 0.9%
Popular North America
3.875%, 10/01/2008				4,925		4,712
Basic Industry – 0.4%
Potash
7.125%, 06/15/2007				2,075		2,098
Brokerage – 1.2%
Goldman Sachs Group
7.350%, 10/01/2009				2,500		2,620
Morgan Stanley
4.000%, 01/15/2010				4,000		3,781
						6,401
Consumer Cyclical – 1.4%
Federated Department Stores
6.300%, 04/01/2009				3,000		3,034
Ford Motor Credit
6.625%, 06/16/2008				2,500		2,379
Harrah’s Operating Company
5.500%, 07/01/2010				2,000		1,951
						7,364

First American Funds Annual Report 2006      45

Schedule of  Investments continued

Short Term Bond Fund (continued)
DESCRIPTION	PAR		VALUE
Consumer Non Cyclical – 1.5%
Baxter International
5.196%, 02/16/2008	$	2,500	$	2,478
Kroger
6.375%, 03/01/2008		2,480		2,498
Wellpoint
3.750%, 12/14/2007		3,000		2,915
				7,891
Electric – 2.6%
CalEnergy
7.630%, 10/15/2007		6,255		6,389
Constellation Energy Group
6.350%, 04/01/2007		4,275		4,292
Oncor Electric Delivery
5.000%, 09/01/2007		3,000		2,967
				13,648
Energy – 1.3%
Louis Dreyfus Natural Gas
6.875%, 12/01/2007		3,000		3,040
PEMEX Project Funding Master Trust
6.125%, 08/15/2008		4,000		3,992
				7,032
Finance – 0.9%
Ameriprise Financial
5.350%, 11/15/2010		1,000		981
International Lease Finance
3.125%, 05/03/2007		4,000		3,913
				4,894
Miscellaneous – 0.9%
Core Investment Grade Trust
4.659%, 11/30/2007		5,000		4,919
Natural Gas – 1.5%
Duke Energy Field Services
5.750%, 11/15/2006		4,915		4,913
Oneok
5.510%, 02/16/2008 (e)		2,500		2,484
Ras Laffan Liquid Natural Gas
7.628%, 09/15/2006 (c)		831		832
				8,229
Real Estate Investment Trusts – 0.9%
Istar Financial
6.000%, 12/15/2010		2,500		2,491
Simon Property Group
6.375%, 11/15/2007		2,500		2,510
				5,001
Technology – 0.3%
Chartered Semiconductor
5.750%, 08/03/2010 (e)		1,500		1,459
Total Corporate Bonds     (Cost $75,040)				73,648
Collateralized Mortgage Obligation –   Private Mortgage-Backed   Securities – 11.7%
Adjustable Rate (d) – 9.7%
Adjustable Rate Mortgage Trust Series 2005-10, Class 1A21
4.741%, 01/25/2036		4,320		4,259
Citigroup Mortgage Loan Trust Series 2005-7, Class 2A1A
4.862%, 11/25/2035		4,469		4,331
GSR Mortgage Loan Trust Series 2005-AR1, Class B1
4.858%, 01/25/2035		2,189		2,119
Indymac Index Mortgage Loan Trust Series 2006-AR13, Class A1
6.112%, 07/25/2036		4,286		4,297
Sequoia Mortgage Trust Series 2004-4, Class B2
5.981%, 05/20/2034		3,581		3,587
Structured Mortgage Loan Trust Series 2004-11, Class A
6.623%, 08/25/2034		1,052		1,055
Washington Mutual Series 2003-AR3, Class A5
3.927%, 04/25/2033		6,461		6,214
Series 2003-AR10, Class A6
4.065%, 10/25/2033		5,000		4,833
Series 2004-AR7, Class A6
3.943%, 07/25/2034		5,000		4,797
Wells Fargo Mortgage Backed Securities Trust Series 2004-E, Class A5
3.662%, 05/25/2034		5,868		5,701
Series 2004-N, Class A3
4.098%, 08/25/2034		7,000		6,907
Series 2005-AR10, Class 2A5
4.110%, 06/25/2035		3,921		3,824
				51,924
Fixed Rate – 2.0%
Bank of America Mortgage Securities Series 2004-F, Class 2A2
4.021%, 07/25/2034		2,722		2,717
Citigroup Mortgage Loan Trust Series 2005-WF1, Class A2
4.490%, 02/25/2035		6,650		6,522
Mortgage Capital Funding Series 1997-MC1, Class A3
7.288%, 07/20/2027		109		109
Residential Accredited Loans Series 2003-QS17, Class CB7
5.500%, 09/25/2033		1,149		1,145
Residential Asset Securitization Trust Series 2002-A12, Class 1A1
5.200%, 11/25/2032		85		85
				10,578
Total Collateralized Mortgage Obligation –     Private Mortgage-Backed Securities     (Cost $63,663)				62,502

The accompanying notes are an integral part of the financial statements.

46      First American Funds Annual Report 2006

Short Term Bond Fund (continued)
DESCRIPTION		PAR /SHARES		VALUE
Collateralized Mortgage Obligation –    U.S. Government Agency    Mortgage-Backed Securities – 6.8%
Fixed Rate – 6.8%
Federal Home Loan Mortgage Corporation
	Series 2822, Class VM
5.000%, 04/15/2010		$	3,477	$	3,422
	Series 2763, Class TA
4.000%, 03/15/2011			5,064		4,892
	Series 1022, Class J
6.000%, 12/15/2020			47		47
	Series 2738, Class UA
3.570%, 12/15/2023 (e)			4,201		4,072
	Series 2589, Class GK
4.000%, 03/15/2026 (e)			2,811		2,749
	Series 2731, Class PV
4.500%, 05/15/2026 (e)			5,000		4,812
	Series 2893, Class PB
5.000%, 12/15/2027 (e)			6,367		6,196
Federal National Mortgage Association
	Series 2004-76, Class CE
4.500%, 02/25/2021 (e)			6,000		5,770
	Series 1992-150, Class MA
5.500%, 09/25/2022			134		133
	Series 2004-90, Class GA
4.350%, 03/25/2034 (e)			4,577		4,345
Total Collateralized Mortgage Obligation –     U.S. Government Agency     Mortgage-Backed Securities     (Cost $37,824)					36,438
Short-Term Investments – 1.6%
Money Market Fund – 1.5%
First American Prime Obligations Fund, Class Z (g)			8,057,539		8,058
U.S. Treasury Obligation – 0.1%
U.S. Treasury Bill
4.629%, 09/07/2006 (h)		$	340		337
Total Short-Term Investments     (Cost $8,395)					8,395
Investments Purchased with Proceeds
from Securities Lending (i) – 33.7%
(Cost $180,013)					180,013
Total Investments – 133.4%     (Cost $722,038)					711,665
Other Assets and Liabilities, Net – (33.4)%					(178,229	)
Total Net Assets – 100.0%				$	533,436

(a)	Security is fair valued and illiquid. As of June 30, 2006, the fair value of this investment was $0 or 0.0% of total net assets. See note 2 in Notes to Financial Statements.
(b)	Security in default at June 30, 2006.
(c)	Security purchased within terms of a private placement memorandum, exempt from registration under Rule 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or other “qualified institutional buyers.” These securities have been determined to be liquid under guidelines established by the fund’s board of directors. As of June 30, 2006, the value of these investments was $18,652 or 3.5% of total net assets. See note 2 in Notes to Financial Statements.
(d)	Variable Rate Security – The rate shown is the rate in effect as of June 30, 2006.
(e)	This security or a portion of this security is out on loan at June 30, 2006. Total loaned securities had a value of $175,789 at June 30, 2006. See note 2 in Notes to Financial Statements.

(f)  Principal only – Represents securities that entitle holders to receive only principal payments on the underlying mortgages. The yield to maturity of a principal only is sensitive to the rate of principal payments on the underlying mortgage assets. A slow (rapid) rate of principal repayments may have an adverse (positive) effect on yield to maturity. The zero coupon rate represents the lack of interest as part of payments received.

(g)	Investment in affiliated security. This money market fund is advised by FAF Advisors, Inc., which also serves as advisor for this fund. See note 3 in Notes to Financial Statements.
(h)	Security has been deposited as initial margin on open futures contracts. Yield shown is the effective yield as of June 30, 2006. See note 2 in Notes to Financial Statements.

(i)  The fund may loan securities in return for collateral in the form of cash, U.S. Government securities, or other high grade debt obligations. The cash collateral is invested in money market funds and various short-term, high quality debt obligations, such as repurchase agreements, commercial paper, and other corporate obligations. See note 2 in Notes to Financial Statements.

STRIPS – Separate Trading of Registered Interest and Principal of Securities.

Schedule of Open Futures Contracts

		Number of
		Contracts			Notional					Unrealized
		Purchased			Contract			Settlement		Appreciation
Description		(Sold)			Value			Month		(Depreciation)
U.S. Treasury
	2 Year Note Futures		512		$	103,824			September 2006	$	(154	)
U.S. Treasury
	5 Year Note Futures		(639	)		(66,077	)		September 2006		421
										$	267

Interest Rate Swap Agreements

Pay/

Floating

Receive

Unrealized

Rate

Floating

Fixed

Expiration

Notional

Appreciation

Counterparty

Index

Rate

Rate

Date

Amount

(Depreciation)

Citigroup

3-Month LIBOR

Pay

3.568%

1/11/2007

$

142,000

$

(1,543

)

UBS

3-Month LIBOR

Pay

4.520%

8/10/2007

37,000

(444

)

UBS

3-Month LIBOR

Pay

4.616%

10/06/2007

57,000

(724

)

UBS

3-Month LIBOR

Receive

4.773%

1/17/2011

12,000

414

$

(2,297

)

First American Funds Annual Report 2006      47

Schedule of  Investments continued

Total Return Bond Fund
DESCRIPTION	PAR		VALUE
U.S. Government Agency Mortgage-Backed    Securities – 30.8%
Adjustable Rate (a) – 4.6%
Federal Home Loan Mortgage Corporation Pool
6.180%, 10/01/2029, #1L0117	$	1,492	$	1,510
4.887%, 07/01/2030, #847240		1,724		1,747
5.682%, 05/01/2033, #847411		1,090		1,099
Federal National Mortgage Association Pool
5.934%, 09/01/2033, #725553 (b)		693		695
5.286%, 11/01/2034, #735054 (b)		1,924		1,875
5.963%, 01/01/2035, #745548		2,189		2,229
4.871%, 09/01/2035, #745168 (b)		2,645		2,558
5.310%, 12/01/2035, #850865 (b)		6,941		6,784
				18,497
Fixed Rate – 26.2%
Federal Home Loan Mortgage Corporation Pool
5.000%, 09/01/2018, #E99575		1,249		1,205
5.500%, 12/01/2020, #G11810 (b)		3,634		3,565
6.500%, 07/01/2031, #A17212 (b)		3,919		3,957
Federal National Mortgage Association Pool
3.900%, 06/01/2010, #461013		5,000		4,691
5.500%, 12/01/2018, #735575 (b)		2,082		2,047
5.500%, 01/01/2020, #735386 (b)		1,581		1,554
5.500%, 06/01/2020, #735792		1,339		1,316
5.000%, 02/01/2021, #745279		5,120		4,933
5.000%, 03/01/2021, #845444		3,815		3,674
5.500%, 02/01/2025, #255628 (b)		3,300		3,207
6.000%, 04/01/2032, #745101		1,280		1,276
5.500%, 06/01/2033, #843435 (b)		1,273		1,228
5.000%, 10/01/2033, #741897 (b)		1,495		1,404
5.500%, 10/01/2033, #555800		3,981		3,840
5.500%, 11/01/2033, #555967 (b)		7,418		7,157
5.000%, 03/01/2034, #725205 (b)		1,390		1,305
5.000%, 03/01/2034, #725250 (b)		1,235		1,160
5.500%, 04/01/2034, #725424 (b)		3,499		3,375
5.000%, 05/01/2034, #725456 (b)		1,233		1,156
5.000%, 06/01/2034, #782909 (b)		946		888
5.500%, 07/01/2034 (c)		10,370		9,958
6.000%, 07/01/2034 (c)		3,860		3,799
5.500%, 08/01/2034, #745563 (c)		2,367		2,284
5.500%, 09/01/2034, #725773 (b)		2,271		2,187
6.000%, 04/01/2035, #735503		4,042		3,991
5.000%, 05/01/2035, #357883		2,770		2,602
5.500%, 08/01/2035, #829679 (b)		5,108		4,910
5.500%, 09/01/2035, #842230		2,836		2,726
5.000%, 10/01/2035, #846196		3,032		2,836
5.500%, 10/01/2035, #735899 (b)		3,329		3,206
6.000%, 01/01/2036, #831215 (b)		3,429		3,378
6.000%, 01/01/2036, #852347		3,456		3,403
5.500%, 03/01/2036, #870157		3,822		3,671
6.500%, 04/01/2036, #831377		1,615		1,623
6.500%, 04/01/2036, #852909		1,107		1,113
				104,625
Total U.S. Government Agency Mortgage-    Backed Securities    (Cost $126,139)				123,122
Corporate Bonds – 19.6%
Banking – 1.3%
J.P. Morgan Chase
5.150%, 10/01/2015		1,250		1,167
J.P. Morgan Chase XVII
5.850%, 08/01/2035		650		574
SOC General Real Estate, Callable 09/30/2007 @ 100
7.640%, 12/29/2049 (a) (d)		1,465		1,496
Wells Fargo Callable 12/15/2006 @ 103.98
7.960%, 12/15/2026		2,000		2,092
				5,329
Basic Industry – 1.8%
Celulosa Arauco Y Constitucion
8.625%, 08/15/2010		1,500		1,633
Cosipa Commercial
8.250%, 06/14/2016 (d) (e)		285		286
Falconbridge
7.350%, 06/05/2012		1,255		1,307
Ineos Group Holdings, Callable 02/15/2011 @ 104.25
8.500%, 02/15/2016 (b) (d) (e)		405		379
LPG International
7.250%, 12/20/2015 (e)		805		741
Southern Copper
7.500%, 07/27/2035		1,550		1,480
Teck Cominco Limited
6.125%, 10/01/2035		485		434
Vale Overseas
6.250%, 01/11/2016		535		510
Vedanta Resources
6.625%, 02/22/2010 (d) (e)		575		549
				7,319
Brokerage – 1.6%
Goldman Sachs Group
5.350%, 01/15/2016		2,920		2,758
Merrill Lynch
6.050%, 05/16/2016		1,980		1,967
Morgan Stanley
5.375%, 10/15/2015		1,630		1,543
				6,268
Capital Goods – 0.8%
Case New Holland, Callable 03/01/2010 @ 103.56
7.125%, 03/01/2014 (d)		520		497
Chart Industries, Callable 10/15/2010 @ 104.56
9.125%, 10/15/2015 (d)		585		597
Hutchison Whampoa International
7.450%, 11/24/2033 (d)		750		793
Owens-Illinois
8.100%, 05/15/2007 (b)		500		503
Sino Forest
9.125%, 08/17/2011 (b) (d) (e)		670		690
				3,080
Communications – 2.3%
AT&T
7.300%, 11/15/2011		953		1,012
C & M Finance, Callable 02/01/2011 @ 104.05
8.100%, 02/01/2016 (d) (e)		565		540
Comcast
7.050%, 03/15/2033		1,455		1,476
Dex Media West, Callable 08/15/2008 @ 104.94
9.875%, 08/15/2013		500		542
News America Holdings
7.750%, 01/20/2024		680		729

The accompanying notes are an integral part of the financial statements.

48      First American Funds Annual Report 2006

Total Return Bond Fund (continued)
DESCRIPTION	PAR		VALUE
Telecom Italia Capital
4.000%, 11/15/2008	$	980	$	940
Telefonos De Mexico SA de CV (Telemex) Series L
4.750%, 01/27/2010		1,000		952
Time Warner Entertainment
8.375%, 07/15/2033		1,405		1,589
Verizon Communications
7.750%, 12/01/2030		820		884
Vimpelcom
8.250%, 05/23/2016 (d) (e)		700		671
				9,335
Consumer Cyclical – 1.1%
Autonation, Callable 04/15/2009 @ 105.25
7.000%, 04/15/2014 (d)		935		921
Chaoda Modern Agriculture
7.750%, 02/08/2010 (b) (d) (e)		750		739
DaimlerChrysler
4.875%, 06/15/2010		550		526
Galaxy Entertainment, Callable 12/15/2009 @ 104.94
9.875%, 12/15/2012 (b) (d) (e)		575		598
Harrah’s
5.750%, 10/01/2017		520		473
Lippo Karwaci Finance, Callable 03/09/2009 @ 104.44
8.875%, 03/09/2011 (e)		575		556
MGM Mirage
6.625%, 07/15/2015		725		676
				4,489
Consumer Non Cyclical – 0.9%
HCA
6.500%, 02/15/2016 (b)		850		786
Kroger
7.250%, 06/01/2009		1,400		1,449
Reynolds American
6.500%, 07/15/2010 (d)		1,250		1,210
				3,445
Electric – 1.4%
Edison Mission Energy
7.500%, 06/15/2013 (d)		530		519
Florida Power & Light
5.650%, 02/01/2037		825		758
MidAmerican Energy Holdings
��  5.875%, 10/01/2012		990		982
NRG Energy, Callable 02/01/2009 @ 107.25
7.250%, 02/01/2014		935		912
Ohio Power Series K
6.000%, 06/01/2016		875		863
Oncor Electric Delivery
7.000%, 05/01/2032		820		851
Pacific Gas & Electric
6.050%, 03/01/2034		930		878
				5,763
Energy – 1.5%
Gazprom International
7.201%, 02/01/2020 (d)		705		715
Gazprombank
6.500%, 09/23/2015		720		660
Nexen
5.875%, 03/10/2035		1,000		883
Petro-Canada
5.350%, 07/15/2033		500		422
Tengizcheveroil Finance
6.124%, 11/15/2014 (d)		1,250		1,208
Tesoro, Callable 11/01/2010 @ 103.31
6.625%, 11/01/2015 (d)		965		914
XTO Energy
6.100%, 04/01/2036 (b)		1,095		991
				5,793
Finance – 0.7%
American General Finance
3.875%, 10/01/2009		1,285		1,215
ILFC E-Capital Trust II, Callable 12/21/2015 @ 100
6.250%, 12/21/2065 (a) (d)		1,440		1,361
				2,576
Insurance – 0.5%
Liberty Mutual Group
6.500%, 03/15/2035 (b) (d)		1,000		873
Unumprovident
5.997%, 05/15/2008		1,040		1,039
				1,912
Natural Gas – 0.3%
Duke Energy Field Services
7.875%, 08/16/2010		980		1,047
Real Estate Investment Trust – 0.3%
Prologis 2006
5.750%, 04/01/2016		1,405		1,354
Sovereigns – 4.7%
Federal Republic of Brazil
7.125%, 01/20/2037 (b) (e)		1,310		1,241
Callable 08/17/2015 @ 100
11.000%, 08/17/2040 (e)		2,525		3,131
Republic of Indonesia
6.875%, 03/09/2017 (d) (e)		1,110		1,081
Republic of Philippines
9.500%, 02/02/2030 (e)		1,490		1,706
Republic of Turkey
7.375%, 02/05/2025 (b) (e)		1,405		1,265
11.875%, 01/15/2030 (b) (e)		995		1,360
Republic of Uruguay
8.000%, 11/18/2022 (e)		1,315		1,259
Republic of Venezuela
9.250%, 09/15/2027 (b) (e)		2,090		2,466
Russian Federation,
5.000% through 03/31/2007 thereafter
7.500%, 03/31/2030 (d)		1,070		1,138
United Mexican States
5.625%, 01/15/2017 (b)		3,480		3,236
6.750%, 09/27/2034 (b)		895		870
				18,753
Technology – 0.3%
Chartered Semiconductor
6.375%, 08/03/2015		590		563
LG Electronics
5.000%, 06/17/2010 (d)		785		745
				1,308

First American Funds Annual Report 2006      49

Schedule of  Investments continued

Total Return Bond Fund (continued)
DESCRIPTION	PAR		VALUE
Transportation – 0.1%
Hertz, Callable 01/01/2010 @ 104.44
8.875%, 01/01/2014 (d)	$	500	$	513
Total Corporate Bonds     (Cost $81,056)				78,284
Asset-Backed Securities – 19.3%
Automotive – 2.4%
Harley Davidson Motorcycle Trust Series 2005-4, Class A2
4.850%, 06/15/2012		1,190		1,172
Hertz Vehicle Financing Series 2005-2A, Class A6
5.080%, 11/25/2011 (d)		2,525		2,457
Triad Auto Receivables Owner Trust Series 2006-A, Class A3
4.770%, 01/12/2011		2,195		2,164
Volkswagen Auto Loan Enhanced Trust Series 2005-1, Class A4
4.860%, 04/20/2012		4,025		3,957
				9,750
Commercial – 11.6%
Banc of America Commercial Mortgage
Series 2006-2, Class A4
5.741%, 05/10/2045		3,650		3,629
Bear Stearns Commercial Mortgage Securities
Series 2005-PW10, Class A4
5.405%, 12/11/2040 (b)		1,750		1,691
Commercial Mortgage Pass-Through Certificates
Series 2006-CN2A, Class A2FX
5.449%, 02/05/2019 (d)		1,805		1,771
Series 2005-LP5, Class A2
4.630%, 05/10/2043		5,750		5,547
Deutsche Mortgage and Asset Receiving
Series 1998-C1, Class A2
6.538%, 06/15/2031		2,377		2,398
GE Capital Commercial Mortgage Corporation
Series 2004-C1, Class A2
3.915%, 11/10/2038		3,000		2,837
Series 2005-C3, Class A2
4.853%, 07/10/2045		2,265		2,199
GMAC Commercial Mortgage Securities
Series 1999-C1, Class A2
6.175%, 05/15/2033		3,860		3,895
Series 2003-C3, Class A2
4.223%, 04/10/2040		3,000		2,883
Series 2005-C1, Class A2
4.471%, 05/10/2043		3,750		3,597
Greenwich Capital Commercial Funding
Series 2003-C1, Class A2
3.285%, 07/05/2035		1,500		1,408
Series 2005-GG5, Class A2
5.117%, 04/10/2037		4,625		4,518
Series 2005-GG5, Class A5
5.224%, 04/10/2037		2,535		2,418
GSR Mortgage Loan Trust
Series 2004-10F, Class 3A1
5.500%, 08/25/2019		1,165		1,143
J.P. Morgan Chase Commercial Mortgage Securities
Series 2005-LDP5, Class A4
5.345%, 12/15/2044		1,510		1,445
LB-UBS Commercial Mortgage Trust
Series 2005-C7, Class A2
5.103%, 11/15/2030		2,500		2,440
Nomura Asset Securities
Series 1998-D6, Class A1B
6.590%, 03/15/2030		2,325		2,357
				46,176
Credit Card – 2.4%
Citibank Credit Card Issuance Trust
Series 2006-B2, Class B2
5.150%, 03/07/2011		1,690		1,666
Series 2006-A4, Class A4
5.450%, 05/10/2013		6,210		6,158
MBNA Credit Card Master Note Trust
Series 2003-A1, Class A1
3.300%, 07/15/2010		405		391
Series 2005-A1, Class A1
4.200%, 09/15/2010		825		806
Providian Gateway Master Trust
Series 2004-DA, Class A
3.350%, 09/15/2011 (d)		620		604
				9,625
Equipment Leases – 0.2%
Caterpillar Financial Asset Trust
Series 2004-A, Class A3
3.130%, 01/26/2009		1,075		1,059
Home Equity – 0.3%
GRMT Mortgage Loan Trust
Series 2001-1A, Class M1
7.772%, 07/20/2031 (d)		218		219
Residential Asset Securities
Series 2004-KS3, Class A2B2
5.291%, 04/25/2034 (a)		959		962
				1,181
Manufactured Housing – 0.7%
Green Tree Financial
Series 1996-8, Class A7
8.050%, 10/15/2027		458		476
Origen Manufactured Housing
Series 2005-A, Class A2
4.490%, 05/15/2018		2,355		2,294
				2,770
Other – 1.2%
Global Signal Trust
Series 2006-1, Class E
6.495%, 02/15/2036 (d)		1,255		1,243
GRP/ AG Real Estate Asset Trust
Series 2005-1, Class A
4.850%, 01/25/2035 (d)		281		277
Small Business Administration
Series 2006-P10A, Class 1
5.408%, 02/10/2016		3,397		3,301
				4,821
Recreational Vehicles – 0.5%
J.P. Morgan RV Marine Trust
Series 2004-1A, Class A1
3.120%, 04/15/2011 (d)		2,023		1,991
Total Asset-Backed Securities     (Cost $79,022)				77,373

The accompanying notes are an integral part of the financial statements.

50      First American Funds Annual Report 2006

Total Return Bond Fund (continued)
DESCRIPTION	PAR		VALUE
Collateralized Mortgage Obligation –    Private Mortgage-Backed    Securities – 16.5%
Adjustable Rate (a) – 7.9%
Citigroup Mortgage Loan Trust
Series 2005-7, Class 2A1A
4.862%, 09/25/2035	$	2,293	$	2,222
GMAC Mortgage Corporation Loan Trust
Series 2003-AR2, Class 4A1
4.725%, 12/19/2033		2,699		2,580
GSR Mortgage Loan Trust
Series 2005-AR1, Class B1
4.858%, 01/25/2035		2,239		2,167
Indymac Index Mortgage Loan Trust
Series 2006-AR13, Class A1
6.112%, 07/25/2036		2,961		2,970
Wachovia Mortgage Loan Trust
Series 2005-B, Class 1A1
4.977%, 10/20/2035		1,700		1,672
Washington Mutual
Series 2003-AR1, Class A5
3.970%, 03/25/2033		1,458		1,411
Series 2003-AR10, Class A6
4.065%, 10/25/2033		3,765		3,639
Series 2004-AR7, Class A6
3.943%, 07/25/2034		2,630		2,523
Wells Fargo Mortgage Backed Securities Trust
Series 2003-O, Class 5A1
4.812%, 01/25/2034		3,414		3,273
Series 2005-AR10, Class 2A5
4.110%, 06/25/2035		4,773		4,655
Series 2006-AR1, Class 2A2
5.570%, 03/25/2036		4,827		4,677
				31,789
Fixed Rate – 8.6%
Bank of America Mortgage Securities
Series 2004-11, Class 1A8
5.500%, 01/25/2035		4,250		3,963
Chase Mortgage Finance
Series 2003-S12, Class 1A1
4.750%, 12/25/2018		3,025		2,892
Chaseflex Trust
Series 2005-2, Class 4A1
5.000%, 05/25/2020		3,460		3,293
Citigroup Mortgage Loan Trust
Series 2005-WF1, Class A2
4.490%, 02/25/2035		2,000		1,962
Countrywide Alternative Loan Trust
Series 2004-12CB, Class 1A1
5.000%, 07/25/2019		1,696		1,636
Series 2004-24CB, Class 2A1
5.000%, 11/25/2019		2,283		2,183
GSR Mortgage Loan Trust
Series 2005-4F, Class B1
5.727%, 05/25/2035		2,433		2,318
J.P. Morgan Chase Commercial Mortgage Securities
Series 2001-CIB3, Class A2
6.044%, 11/15/2035		4,085		4,111
Residential Funding Mortgage Securities I
Series 2004-S9, Class 2A1
4.750%, 12/25/2019		1,575		1,496
Washington Mutual
Series 2004-CB1, Class 1A
5.250%, 06/25/2019		2,324		2,268
Wells Fargo Mortgage Backed Securities Trust
Series 2004-7, Class 2A2
5.000%, 07/25/2019		5,014		4,787
Series 2004-8, Class A1
5.000%, 08/25/2019		3,508		3,355
				34,264
Total Collateralized Mortgage Obligation –    Private Mortgage-Backed Securities    (Cost $67,388)				66,053
U.S. Government & Agency    Securities (b) – 7.1%    U.S. Agency Debentures – 1.3%
Federal National Mortgage Association
5.250%, 08/01/2012		5,590		5,461
U.S. Treasuries – 5.8%
U.S. Treasury Bonds
9.000%, 11/15/2018		3,370		4,504
6.250%, 08/15/2023		1,920		2,118
6.875%, 08/15/2025		740		877
5.500%, 08/15/2028		650		668
5.375%, 02/15/2031		735		748
4.500%, 02/15/2036		2,260		2,026
U.S. Treasury Notes
4.500%, 02/28/2011		5,140		5,012
2.375%, 04/15/2011		4,212		4,195
4.500%, 02/15/2016		3,125		2,973
				23,121
Total U.S. Government & Agency Securities     (Cost $29,618)				28,582
Collateralized Mortgage Obligation –    U.S. Government Agency    Mortgage-Backed Securities (b) – 6.6%
Fixed Rate – 6.6%
Federal Home Loan Mortgage Corporation
Series 2893, Class PB
5.000%, 12/15/2027		3,440		3,348
Series 2937, Class JD
5.000%, 03/15/2028		4,000		3,887
Series 2690, Class OE
5.000%, 11/15/2028		4,000		3,867
Series 2901, Class UB
5.000%, 03/15/2033		5,000		4,624
Series 2987, Class KE
5.000%, 12/15/2034		1,920		1,827
Federal National Mortgage Association
Series 2005-44, Class PC
5.000%, 11/25/2027		2,750		2,666
Series 2003-81, Class MB
5.000%, 05/25/2029		3,375		3,274
Series 2005-62, Class JE
5.000%, 06/25/2035		2,990		2,906
Total Collateralized Mortgage Obligation –    U.S. Government Agency    Mortgage-Backed Securities    (Cost $27,034)				26,399

First American Funds Annual Report 2006      51

Schedule of  Investments continued

Total Return Bond Fund (continued)
DESCRIPTION	PAR/SHARES		VALUE
Municipal Bonds – 0.5%
Sullivan County Health, Education & Housing
Facilities, Hospital Revenue, Wellmont Health,
Class B, Callable 09/01/2010 @ 100
6.950%, 09/01/2016
Total Municipal Bonds     (Cost $2,000)	$	2,000	$	2,009
Short-Term Investments – 3.0%
Money Market Fund – 2.5%
First American Prime Obligations Fund, Class Z (f)		9,934,587		9,935
U.S. Treasury Obligations – 0.5%
U.S. Treasury Bills
4.629%, 09/07/2006 (g)	$	1,275		1,264
4.780%, 11/02/2006		700		688
				1,952
Total Short Term Investments     (Cost $11,887)				11,887
Investments Purchased with Proceeds    from Securities Lending (h) – 32.1%
(Cost $128,422)				128,422
Total Investments – 135.5%     (Cost $552,566)				542,131
Other Assets and Liabilities, Net – (35.5)%				(142,099	)
Total Net Assets – 100.0%			$	400,032

(a)	Variable Rate Security – The rate shown is the rate in effect as of June 30, 2006.
(b)	This security or a portion of this security is out on loan at June 30, 2006. Total loaned securities had a market value of $126,069 at June 30, 2006. See note 2 in Notes to Financial Statements.
(c)	Security purchased on a when-issued basis. On June 30, 2006, the total cost of investments purchased on a when-issued basis was $16,064 or 4.0% of total net assets. See note 2 in Notes to Financial Statements.
(d)	Security purchased within the terms of a private placement memorandum, exempt from registration under Rule 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or other “qualified institutional buyers.” These securities have been determined to be liquid under the guidelines established by the fund’s board of directors. As of June 30, 2006, the value of these investments was $27,595 or 6.9% of total net assets. See note 2 in Notes to Financial Statements.
(e)	Represents a foreign high yield (non-investment grade) U.S. dollar denominated bond. On June 30, 2006, the value of these investments was $19,258, which represents 4.8% of total net assets.

(f)  Investment in affiliated security. This money market fund is advised by FAF Advisors, Inc., which also serves as advisor to this fund. See note 3 in Notes to Financial Statements.

(g)	Security has been deposited as initial margin on open futures contracts. Yield shown is the effective yield as of June 30, 2006. See note 2 in Notes to Financial Statements.
(h)	The fund may loan securities in return for collateral in the form of cash, U.S. Government securities, or other high grade debt obligations. The cash collateral is invested in various short-term fixed income securities, such as repurchase agreements, commercial paper, money market funds and other corporate obligations. See note 2 in Notes to Financial Statements.

Schedule of Open Futures Contracts

	Number of
	Contracts			Notional					Unrealized
	Purchased			Contract			Settlement		Appreciation
Description	(Sold)			Value			Month		(Depreciation)
Australian Dollar Currency Futures		48		$	3,565			September 2006	$	32
Canadian Dollar Currency Futures		133			11,931			September 2006		(75	)
EuroBund Futures		113			16,668			September 2006		(78	)
Euro Currency Futures		53			8,513			September 2006		122
Japan 10 Year Bond Futures		(10	)		(11,504	)		September 2006		28
Japanese Yen Currency Futures		104			11,482			September 2006		55
Swiss Franc Currency Futures		93			9,580			September 2006		76
U.S. Treasury 2 Year Note Futures		(79	)		(16,020	)		September 2006		57
U.S. Treasury 5 Year Note Futures		(329	)		(34,021	)		September 2006		116
U.S. Treasury 10 Year Note Futures		(274	)		(28,731	)		September 2006		101
U.S. Treasury Long Bond Futures		82			8,746			September 2006		56
									$	490

Credit Default Swap Agreements

Pay/

Receive

Unrealized

Reference

Buy/Sell

Fixed

Expiration

Notional

Appreciation

Counterparty

Entity

Protection

Rate

Date

Amount

(Depreciation)

Citigroup

Dow Jones CDX

EM5 Index

Sell

1.350%

6/20/2011

$

3,000

$

(6

)

J.P. Morgan

Dow Jones CDX

IG Hvol6 Index

Sell

0.750%

6/20/2011

6,000

43

UBS

Dow Jones CDX

IG Hvol6 Index

Sell

0.750%

6/20/2011

11,000

47

UBS

Dow Jones CDX

HY6 Index

Sell

3.450%

6/20/2011

4,000

(43

)

$

41

Interest Rate Swap Agreements

Pay/

Floating

Receive

Rate

Floating

Fixed

Expiration

Notional

Unrealized

Counterparty

Index

Rate

Rate

Date

Amount

Depreciation

Citigroup

3-Month LIBOR

Pay

5.427%

11/10/2008

$

33,600

$

(141

)

Citigroup

3-Month LIBOR

Pay

4.818%

1/17/2009

10,000

(189

)

Citigroup

3-Month LIBOR

Pay

4.908%

11/10/2008

15,000

(233

)

Citigroup

3-Month LIBOR

Pay

5.660%

6/19/2016

8,200

(44

)

$

(607

)

The accompanying notes are an integral part of the financial statements.

52      First American Funds Annual Report 2006

U.S. Government Mortgage Fund
DESCRIPTION	PAR		VALUE
U.S. Government Agency Mortgage-Backed    Securities – 99.6%
Adjustable Rate (a) – 3.0%
Federal National Mortgage Association Pool
4.871%, 09/01/2035, #745168 (b)	$	5,234	$	5,061
Fixed Rate – 96.6%
Federal Home Loan Mortgage Corporation Pool
7.500%, 04/01/2008, #E45929		11		11
7.000%, 07/01/2011, #E20252		34		34
7.000%, 11/01/2011, #E65619		3		3
7.500%, 09/01/2012, #G10735		162		168
6.000%, 10/01/2013, #E72802		283		283
5.500%, 01/01/2014, #E00617		1,029		1,011
7.000%, 09/01/2014, #E00746		178		182
5.000%, 04/01/2020, #B18125		3,469		3,340
6.000%, 09/01/2022, #C90580		728		726
6.500%, 01/01/2028, #G00876		462		466
6.500%, 11/01/2028, #C00676		982		992
7.500%, 01/01/2030, #C35768		65		68
6.500%, 03/01/2031, #G01244		753		762
5.000%, 09/01/2033, #C01622		2,223		2,086
Federal National Mortgage Association Pool
7.000%, 11/01/2011, #250738		16		16
7.000%, 11/01/2011, #349630		14		15
7.000%, 11/01/2011, #351122		21		21
6.000%, 04/01/2013, #425550		188		189
6.500%, 08/01/2013, #251901		156		158
6.000%, 11/01/2013, #556195		251		251
7.000%, 10/01/2014, #252799		120		123
5.500%, 07/01/2015 (c)		4,000		3,925
5.500%, 04/01/2016, #580516		884		870
6.500%, 07/01/2017, #254373		1,050		1,065
7.000%, 07/01/2017, #254414		975		1,000
5.500%, 12/01/2017, #673010 (b)		736		724
5.500%, 04/01/2018, #695765		915		900
4.500%, 05/01/2018, #254720 (b)		4,411		4,179
5.000%, 07/01/2018, #555621 (b)		1,507		1,455
5.000%, 11/01/2018, #750989		3,217		3,105
5.500%, 09/01/2019, #725793		4,073		4,004
6.000%, 12/01/2021, #254138		674		672
6.000%, 01/01/2022, #254179		798		795
6.500%, 06/01/2022, #254344		771		780
6.000%, 10/01/2022, #254513 (b)		890		887
5.500%, 10/01/2024, #255456 (b)		2,280		2,216
5.500%, 02/01/2025, #255628 (b)		1,650		1,604
7.000%, 12/01/2027, #313941		548		562
7.000%, 09/01/2031, #596680		1,347		1,378
6.500%, 12/01/2031, #254169 (b)		1,443		1,451
6.000%, 04/01/2032, #745101		4,204		4,191
6.500%, 06/01/2032, #596712		3,386		3,405
6.500%, 07/01/2032, #545759		1,579		1,593
7.000%, 07/01/2032, #545815 (b)		334		343
6.000%, 08/01/2032, #656269 (b)		1,094		1,090
5.500%, 03/01/2033, #689109		2,834		2,734
5.500%, 04/01/2033, #703392 (b)		3,251		3,136
5.500%, 05/01/2033, #704523		2,397		2,312
5.500%, 06/01/2033, #843435 (b)		3,800		3,666
5.500%, 07/01/2033, #726520 (b)		3,200		3,087
5.500%, 07/01/2033, #728667		1,885		1,819
4.500%, 08/01/2033, #555680 (b)		2,236		2,037
5.000%, 08/01/2033, #736158 (b)		2,923		2,746
5.500%, 08/01/2033, #728855		1,849		1,784
5.500%, 08/01/2033, #733380 (b)		2,458		2,371
5.000%, 09/01/2033, #734566		3,259		3,061
5.000%, 10/01/2033, #747533 (b)		3,139		2,949
5.500%, 11/01/2033, #555967 (b)		3,560		3,435
5.500%, 12/01/2033, #756202 (b)		2,061		1,989
6.000%, 01/01/2034, #763687		2,977		2,936
5.500%, 04/01/2034, #774999		1,191		1,147
5.000%, 05/01/2034, #780889 (b)		5,585		5,237
6.500%, 06/01/2034, #735273 (b)		2,223		2,243
5.000%, 07/01/2034 (c)		10,000		9,347
5.500%, 07/01/2034 (c)		10,000		9,603
6.000%, 07/01/2034 (c)		15,000		14,761
4.500%, 09/01/2034, #725866		1,326		1,205
5.000%, 09/01/2034, #725772 (b)		5,177		4,855
5.500%, 03/01/2035, #815979		1,521		1,462
5.000%, 05/01/2035, #357883 (b)		5,567		5,229
6.500%, 07/01/2035 (c)		5,000		5,025
5.500%, 08/01/2035, #830953		492		472
5.500%, 01/01/2036, #850568 (c)		4,867		4,678
Government National Mortgage Association Pool
8.000%, 01/15/2007, #315126		2		2
9.000%, 11/15/2009, #359559		21		21
8.000%, 10/15/2010, #414750		72		74
7.500%, 12/15/2022, #347332		107		112
7.000%, 09/15/2027, #455304		23		24
6.500%, 07/15/2028, #780825		801		813
6.500%, 08/20/2031, #003120		342		345
7.500%, 12/15/2031, #570134		312		326
6.000%, 09/15/2034, #633605 (b)		2,360		2,344
				162,486
Total U.S. Government Agency Mortgage-     Backed Securities     (Cost $172,334)				167,547
Collateralized Mortgage Obligation –    Private Mortgage-Backed    Securities – 19.4%
Adjustable Rate (a) – 0.7%
Sequoia Mortgage Trust
Series 2004-5, Class X1
0.800%, 06/20/2034 (d)		47,845		364
Wells Fargo Mortgage Backed Securities Trust
Series 2003-D, Class A1
4.800%, 03/25/2033		829		817
				1,181
Fixed Rate – 18.7%
Bank of America Mortgage Securities
Series 2004-11, Class 1A8
5.500%, 01/25/2035		980		914
Chase Mortgage Finance Corporation
Series 2003-S10, Class A1
4.750%, 11/25/2018		3,065		2,892
Countrywide Alternative Loan Trust
Series 2004-24CB, Class 1A1
6.000%, 11/25/2034		1,784		1,745
GMAC Mortgage Corporation Loan Trust
Series 2004-J5, Class A7
6.500%, 01/25/2035		1,976		1,972
GSR Mortgage Loan Trust
Series 2005-4F, Class B1
5.727%, 05/25/2035		1,460		1,391
Master Alternative Loans Trust
Series 2005-2, Class 1A3
6.500%, 03/25/2035		1,084		1,083
Master Asset Securitization Trust
Series 2003-6, Class 3A1
5.000%, 07/25/2018		1,072		1,034

First American Funds Annual Report 2006      53

Schedule of  Investments continued

U.S. Government Mortgage Fund (continued)
DESCRIPTION	PAR		VALUE
Morgan Stanley Mortgage Loan Trust
Series 2004-9, Class 1A
6.224%, 11/25/2034	$	1,723	$	1,711
Residential Accredit Loans
Series 2003-QS12, Class M1
5.000%, 06/25/2018		981		935
Residential Asset Mortgage Products
Series 2003-SL1, Class M1
7.316%, 04/25/2031		2,786		2,835
Series 2004-SL4, Class A3
6.500%, 07/25/2032		2,306		2,325
Residential Funding Mortgage Securitization Trust
Series 2003-S8, Class A1
5.000%, 05/25/2018		2,794		2,716
Washington Mutual
Series 2003-S10, Class A2
5.000%, 10/25/2018		2,597		2,526
Series 2003-S13, Class 21A1
4.500%, 12/25/2018		2,214		2,085
Washington Mutual MSC Mortgage
Series 2003-MS9, Class CB1
7.449%, 04/25/2033		1,629		1,660
Wells Fargo Mortgage Backed Securities Trust
Series 2003-14, Class A1
4.750%, 12/25/2018		3,836		3,616
				31,440
Total Collateralized Mortgage Obligation –     Private Mortgage-Backed Securities     (Cost $33,966)				32,621
Asset-Backed Securities – 4.6%
Commercial – 3.8%
Banc of America Commercial Mortgage
Series 2006-2, Class A4
5.741%, 05/10/2045		2,545		2,530
Greenwich Capital Commercial Funding
Series 2005-GG5, Class A5
5.224%, 04/10/2037		4,000		3,815
				6,345
Home Equity – 0.0%
GRMT Mortgage Loan Trust
Series 2001-1A, Class M1
7.772%, 07/20/2031 (e)		73		73
Manufactured Housing – 0.4%
Origen Manufactured Housing
Series 2005-B, Class M1
5.990%, 01/15/2037		750		719
Other – 0.4%
Global Signal Trust
Series 2006-1, Class E
6.495%, 02/15/2036 (e)		625		619
Total Asset-Backed Securities     (Cost $7,842)				7,756
Collateralized Mortgage Obligation –    U.S. Government Agency    Mortgage-Backed Securities – 2.0%
Fixed Rate – 2.0%
Federal Home Loan Mortgage Corporation
Series 2382, Class DA
5.500%, 10/15/2030		371		369
Federal National Mortgage Association
Series 2004-29, Class WG
4.500%, 05/25/2019		2,000		1,803
Series 2002-W1, Class 2A
7.500%, 02/25/2042		1,179		1,209
Total Collateralized Mortgage Obligation –    U.S. Government Agency    Mortgage-Backed Securities    (Cost $3,492)				3,381
Short-Term Investments – 2.6%
Money Market Fund – 2.5%
First American Government Obligations Fund, Class Z (f)		4,102,426		4,102
U.S. Treasury Obligation – 0.1%
U.S. Treasury Bill
4.629%, 09/07/2006 (g)	$	195		194
Total Short-Term Investments     (Cost $4,296)				4,296
Investments Purchased with Proceeds from Securities Lending (h) – 38.9%
(Cost $65,521)				65,521
Total Investments – 167.1%     (Cost $287,451)				281,122
Other Assets and Liabilities, Net – (67.1)%				(112,927	)
Total Net Assets – 100.0%			$	168,195

(a)	Variable Rate Security – The rate shown is the rate in effect as of June 30, 2006.
(b)	This security or a portion of this security is out on loan at June 30, 2006. Total loaned securities had a value of $64,334 at June 30, 2006. See note 2 in Notes to Financial Statements.
(c)	Security purchased on a when-issued basis. On June 30, 2006, the total cost of investments purchased on a when-issued basis was $47,445 or 28.2% of total net assets. See note 2 in Notes to Financial Statements.
(d)	Interest only – Represents securities that entitle holders to receive only interest payments on the underlying mortgages. The yield to maturity of an interest only is extremely sensitive to the rate of principal payments on the underlying mortgage assets. A rapid (slow) rate of principal repayments may have an adverse (positive) effect on yield to maturity. The principal amount shown is the notional amount of the underlying mortgages.
(e)	Interest rate disclosed represents the coupon rate in effect as of June 30, 2006. Security purchased within the terms of a private placement memorandum, exempt from registration under Rule 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or other “qualified institutional buyers.” These securities have been determined to be liquid under guidelines established by the fund’s board of directors. As of June 30, 2006, the value of these investments was $692 or 0.4% of total net assets. See note 2 in Notes to Financial Statements.

(f)  Investment in affiliated security. This money market fund is advised by FAF Advisors, Inc., which also serves as advisor for this fund. See note 3 in Notes to Financial Statements.

(g)	Security has been deposited as initial margin on open futures contracts. Yield shown is the effective yield as of June 30, 2006. See note 2 in Notes to Financial Statements.
(h)	The fund may loan securities in return for collateral in the form of cash, U.S. Government securities, or other high grade debt obligations. The cash collateral is invested in money market funds and various short-term, high quality debt obligations, such as repurchase agreements, commercial paper, and other corporate obligations. See note 2 in Notes to Financial Statements.

The accompanying notes are an integral part of the financial statements.

54      First American Funds Annual Report 2006

U.S. Government Mortgage Fund (concluded)

Schedule of Open Futures Contracts

	Number of
	Contracts			Notional					Unrealized
	Purchased			Contract			Settlement		Appreciation
Description	(Sold)			Value			Month		(Depreciation)
U.S. Treasury 2 Year Note Futures		59		$	11,964			September 2006	$	(47	)
U.S. Treasury 5 Year Note Futures		(233	)		(24,094	)		September 2006		34
U.S. Treasury 10 Year Note Futures		(185	)		(19,399	)		September 2006		83
									$	70

Interest Rate Swap Agreements

Pay/

Floating

Receive

Rate

Floating

Fixed

Expiration

Notional

Unrealized

Counterparty

Index

Rate

Rate

Date

Amount

Depreciation

Citigroup

3-Month LIBOR

Pay

5.427%

11/10/2008

$

15,000

$

(63

)

Citigroup

3-Month LIBOR

Pay

5.660%

6/19/2016

3,400

(18

)

$

(81

)

First American Funds Annual Report 2006      55

Statements of  Assets and Liabilities June 30, 2006, all dollars are rounded to thousands (000), except for per share data

							Inflation			Intermediate
	Core Bond			High Income			Protected			Government
	Fund			Bond Fund			Securities Fund			Bond Fund
Investments in unaffiliated securities, at cost	$	1,924,746		$	248,083		$	331,821		$	45,525
Investments in affiliated money market fund, at cost		52,047			1,251			3,949			235
Investments purchased with proceeds from securities lending, at cost (note 2)		817,952			46,723			157,853			—
Cash denominated in foreign currencies, at cost		—			—			127			—
ASSETS:
Investments in unaffiliated securities, at value* (note 2)	$	1,864,495		$	242,716		$	317,496		$	44,229
Investments in affiliated money market fund, at value (note 2)		52,047			1,251			3,949			235
Investments purchased with proceeds from securities lending, at value (note 2)		817,952			46,723			157,853			—
Cash		4			—			134			—
Receivable for dividends and interest		14,322			4,826			3,895			429
Receivable for investment securities sold		2,317			3,630			4,838			318
Receivable for capital shares sold		1,641			78			851			—
Receivable for variation margin		—			1			151			—
Prepaid expenses and other assets		14			16			7			6
Total assets		2,752,792			299,241			489,174			45,217
LIABILITIES:
Cash denominated in foreign currencies, at value		—			—			134			—
Bank overdraft		—			18			—			—
Payable upon return of securities loaned (note 2)		817,952			46,723			157,853			—
Payable for investment securities purchased		—			1,017			6,585			502
Payable for investment securities purchased on a when-issued basis		95,795			—			—			—
Payable for capital shares redeemed		2,633			253			255			191
Payable for variation margin		330			—			—			—
Payable for swap contracts		875			111			577			—
Payable to affiliates (note 3)		1,137			178			164			24
Payable for distribution and shareholder servicing fees		37			20			2			—
Accrued expenses and other liabilities		47			32			32			30
Total liabilities		918,806			48,352			165,602			747
Net assets	$	1,833,986		$	250,889		$	323,572		$	44,470
COMPOSITION OF NET ASSETS:
Portfolio capital	$	1,918,272		$	262,778		$	341,090		$	47,337
Undistributed net investment income		1,523			180			1,400			34
Accumulated net realized loss on investments (note 2)		(25,898	)		(6,732	)		(4,503	)		(1,605	)
Net unrealized depreciation of investments		(60,251	)		(5,367	)		(14,325	)		(1,296	)
Net unrealized appreciation on futures contracts		821			38			436			—
Net unrealized depreciation of forward foreign currency contracts, foreign currency, and translation of other assets and liabilities denominated in foreign currency		—			—			(7	)		—
Net unrealized depreciation on swap agreements		(481	)		(8	)		(519	)		—
Net assets	$	1,833,986		$	250,889		$	323,572		$	44,470
*Including securities loaned, at value	$	804,157		$	45,881		$	155,556			—

The accompanying notes are an integral part of the financial statements.

56      First American Funds Annual Report 2006

Intermediate Term			Short Term			Total Return			U.S. Government
Bond Fund			Bond Fund			Bond Fund			Mortgage Fund
$	957,629		$	533,967		$	414,209		$	217,828
	—			8,058			9,935			4,102
	340,793			180,013			128,422			65,521
	—			—			314			—
$	930,544		$	523,594		$	403,774		$	211,499
	—			8,058			9,935			4,102
	340,793			180,013			128,422			65,521
	424			7			554			—
	8,325			4,118			3,462			830
	114			286			1,575			15,972
	748			901			846			132
	—			—			19			—
	7			8			13			10
	1,280,955			716,985			548,600			298,066
	—			—			319			—
	—			—			—			99
	340,793			180,013			128,422			65,521
	—			—			2,010			16,004
	—			—			16,064			47,445
	1,124			831			759			447
	146			32			—			98
	867			2,335			698			113
	509			292			255			100
	5			10			8			13
	40			36			33			31
	343,484			183,549			148,568			129,871
$	937,471		$	533,436		$	400,032		$	168,195
$	980,665		$	561,354		$	425,121		$	180,975
	787			256			546			22
	(16,598	)		(15,771	)		(15,119	)		(6,462	)
	(27,085	)		(10,373	)		(10,435	)		(6,329	)
	334			267			490			70
	—			—			(5	)		—
	(632	)		(2,297	)		(566	)		(81	)
$	937,471		$	533,436		$	400,032		$	168,195
$	334,380		$	175,789		$	126,069		$	64,333

First American Funds Annual Report 2006      57

Statements of  Assets and Liabilities continued

					Inflation		Intermediate
	Core Bond		High Income		Protected		Government
	Fund		Bond Fund		Securities Fund		Bond Fund
Class A:
Net assets	$	134,845	$	29,573	$	5,042	$	1,689
Shares issued and outstanding ($0.0001 par value — 2 billion authorized)		12,596		3,207		528		211
Net asset value and redemption price per share	$	10.71	$	9.22	$	9.54	$	7.99
Maximum offering price per share (1)	$	11.19	$	9.63	$	9.96	$	8.17
Class B:
Net assets	$	13,819	$	5,988		—		—
Shares issued and outstanding ($0.0001 par value — 2 billion authorized)		1,300		652		—		—
Net asset value, offering price, and redemption price per share (2)	$	10.63	$	9.18		—		—
Class C:
Net assets	$	5,183	$	9,873	$	552		—
Shares issued and outstanding ($0.0001 par value — 2 billion authorized)		486		1,075		58		—
Net asset value per share (2)	$	10.67	$	9.19	$	9.53		—
Class R:
Net assets	$	34	$	73	$	1		—
Shares issued and outstanding ($0.0001 par value — 2 billion authorized)		3		8		—		—
Net asset value, offering price, and redemption price per share	$	10.73	$	9.35	$	9.55		—
Class Y:
Net assets	$	1,680,105	$	205,382	$	317,977	$	42,781
Shares issued and outstanding ($0.0001 par value — 2 billion authorized)		156,977		22,260		33,301		5,352
Net asset value, offering price, and redemption price per share	$	10.70	$	9.23	$	9.55	$	7.99

(1)	The offering price is calculated by dividing the net asset value by 1 minus the maximum sales charge. For a description of front-end sales charges, see note 1 in Notes to Financial Statements.
(2)	Class B and C have a contingent deferred sales charge. For a description of this sales charges, see notes 1 and 3 in Notes to Financial Statements.

The accompanying notes are an integral part of the financial statements.

58      First American Funds Annual Report 2006

Intermediate Term			Short Term		Total Return		U.S. Government
Bond Fund			Bond Fund		Bond Fund		Mortgage Fund
$	38,296		$	78,771	$	15,522	$	16,059
	3,956			8,014		1,575		1,577
$	9.68		$	9.83	$	9.86	$	10.18
$	9.90		$	10.06	$	10.30	$	10.63
	—			—	$	3,657	$	6,595
	—			—		373		646
	—			—	$	9.82	$	10.20
	—			—	$	2,501	$	5,127
	—			—		255		505
	—			—	$	9.80	$	10.15
	—			—	$	14	$	7
	—			—		1		1
	—			—	$	9.90	$	10.17
$	899,175	��	$	454,665	$	378,338	$	140,407
	93,202			46,240		38,406		13,783
$	9.65		$	9.83	$	9.85	$	10.19

First American Funds Annual Report 2006      59

Statements of  Operations all dollars are rounded to thousands (000)

													Inflation
	Core						High Income						Protected
	Bond Fund						Bond Fund						Securities Fund
	Nine-Month			Year			Nine-Month			Year			Nine-Month			Year
	Period Ended			Ended			Period Ended			Ended			Period Ended			Ended
	6/30/06			9/30/05			6/30/06			9/30/05			6/30/06			9/30/05
INVESTMENT INCOME:
Interest income from unaffiliated securities	$	66,042		$	83,761		$	15,087		$	21,756		$	14,040		$	9,511
Dividends from affiliated money market fund		2,242			1,058			159			77			132			88
Dividends from unaffiliated securities		—			—			271			64			—			—
Securities lending income		1,027			871			77			165			129			40
Total investment income		69,311			85,690			15,594			22,062			14,301			9,639
EXPENSES (note 3):
Investment advisory fees		7,018			9,590			1,357			1,955			1,131			851
Administration fees		1,777			3,962			258			598			289			335
Transfer agent fees		1,903			1,223			268			173			312			131
Custodian fees		70			168			12			25			13			14
Registration fees		43			41			41			41			40			30
Professional fees		44			119			43			27			46			63
Postage and printing fees		54			65			10			14			8			6
Directors’ fees		21			44			11			6			12			4
Other expenses		25			41			17			10			16			6
Distribution and shareholder servicing fees – Class A		280			431			65			100			12			8
Distribution and shareholder servicing fees – Class B		116			192			50			80			—			—
Distribution and shareholder servicing fees – Class C		46			81			86			151			6			5
Distribution and shareholder servicing fees – Class R		—	(1)		—	(1)		—	(1)		—	(1)		—	(1)		—	(1)
Total expenses		11,397			15,957			2,218			3,180			1,885			1,453
Less: Fee waivers (note 3)		(1,039	)		(1,827	)		(365	)		(690	)		(507	)		(419	)
Less: Indirect payments from custodian (note 3)		(55	)		—			(2	)		—			(1	)		—
Total net expenses		10,303			14,130			1,851			2,490			1,377			1,034
Investment income – net		59,008			71,560			13,743			19,572			12,924			8,605
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS, FUTURES CONTRACTS, WRITTEN OPTIONS, FOREIGN CURRENCY TRANSACTIONS AND SWAP AGREEMENTS – NET (note 5):
Net realized gain (loss) on investments		(20,529	)		13,556			2,412			7,856			(4,813	)		(139	)
Net realized gain (loss) on futures contracts		1,242			(4,532	)		382			573			427			11
Net realized gain (loss) on written options		—			1,881			—			—			—			94
Net realized gain (loss) on swap agreements		(564	)		727			257			272			7			133
Net realized gain (loss) on forward foreign currency contracts, foreign currency, and translation of other assets and liabilities denominated in foreign currency		—			—			—			—			3			—
Net change in unrealized appreciation or depreciation of investments		(43,955	)		(28,161	)		(8,241	)		(9,575	)		(12,920	)		(1,405	)
Net change in unrealized appreciation or depreciation of futures contracts		719			1,442			(34	)		27			500			(64	)
Net change in unrealized appreciation or depreciation of forward foreign currency contracts, foreign currency, and translation of other assets and liabilities denominated in foreign currency		—			—			—			—			(7	)		—
Net change in unrealized appreciation or depreciation of swap agreements		(432	)		(49	)		(98	)		90			(609	)		90
Net loss on investments, futures contracts, written options, foreign currency transactions and swap agreements		(63,519	)		(15,136	)		(5,322	)		(757	)		(17,412	)		(1,280	)
Net increase (decrease) in net assets resulting from operations	$	(4,511	)	$	56,424		$	8,421		$	18,815		$	(4,488	)	$	7,325

(1)   Due to the presentation of the financial statements in thousands, the numbers round to zero.

The accompanying notes are an integral part of the financial statements.

60      First American Funds Annual Report 2006

Intermediate
Government							Intermediate Term						Short Term						Total Return						U.S. Government
Bond Fund							Bond Fund						Bond Fund						Bond Fund						Mortgage Fund
	Nine-Month			Year			Nine-Month			Year			Nine-Month			Year			Nine-Month			Year			Nine-Month			Year
	Period Ended			Ended			Period Ended			Ended			Period Ended			Ended			Period Ended			Ended			Period Ended			Ended
	6/30/06			9/30/05			6/30/06			9/30/05			6/30/06			9/30/05			6/30/06			9/30/05			6/30/06			9/30/05
	$	1,820		$	3,623		$	34,429		$	48,761		$	17,683		$	31,398		$	13,182		$	14,221		$	7,042		$	9,743
		11			15			311			222			396			169			628			365			70			151
		—			—			—			—			—			—			—			24			—			—
		—			—			672			553			132			146			142			67			30			34
		1,831			3,638			35,412			49,536			18,211			31,713			13,952			14,677			7,142			9,928
		213			463			3,821			6,091			2,361			4,630			1,615			1,906			684			1,045
		58			199			974			2,541			604			1,960			346			594			183			445
		61			54			1,033			760			640			555			368			183			189			132
		2			8			38			107			24			83			21			25			8			18
		27			24			30			21			29			22			49			41			41			43
		43			17			39			74			37			59			51			27			43			23
		2			3			23			43			16			33			9			21			6			7
		10			2			16			28			13			22			12			7			11			5
		15			6			20			28			18			23			17			10			16			9
		3			5			81			138			164			282			33			50			38			71
		—			—			—			—			—			—			30			48			55			87
		—			—			—			—			—			—			20			34			43			84
		—			—			—			—			—			—			—	(1)		—	(1)		—	(1)		—	(1)
		434			781			6,075			9,831			3,906			7,669			2,571			2,946			1,317			1,969
		(174	)		(223	)		(1,388	)		(2,439	)		(953	)		(1,945	)		(451	)		(691	)		(222	)		(264	)
		(2	)		—			(47	)		—			(14	)		—			(7	)		—			(1	)		—
		258			558			4,640			7,392			2,939			5,724			2,113			2,255			1,094			1,705
		1,573			3,080			30,772			42,144			15,272			25,989			11,839			12,422			6,048			8,223
		(1,404	)		54			(12,420	)		(2,596	)		(4,403	)		(6,244	)		(4,994	)		5,824			(1,518	)		696
		—			64			1,169			(730	)		2,746			(2,529	)		1,189			(465	)		502			43
		—			63			—			1,217			—			142			8			157			—			(102	)
		—			—			(320	)		639			(825	)		783			(51	)		857			(24	)		—
		—			—			—			—			—			—			(12	)		(6	)		—			—
		(4	)		(2,006	)		(15,431	)		(18,673	)		(445	)		(7,121	)		(8,227	)		(8,750	)		(4,359	)		(3,451	)
		—			53			227			624			(703	)		1,494			588			165			(36	)		112
		—			—			—			—			—			—			(3	)		(2	)		—			—
		—			—			(605	)		(27	)		(148	)		(2,149	)		(559	)		(7	)		(81	)		—
		(1,408	)		(1,772	)		(27,380	)		(19,546	)		(3,778	)		(15,624	)		(12,061	)		(2,227	)		(5,516	)		(2,702	)
	$	165		$	1,308		$	3,392		$	22,598		$	11,494		$	10,365		$	(222	)	$	10,195		$	532		$	5,521

First American Funds Annual Report 2006      61

Statements of  Changes in Net Assets all dollars are rounded to thousands (000)

		Core Bond
		Fund
		Nine-Month
		Period Ended			Year Ended			Year Ended
		6/30/06			9/30/05			9/30/04
OPERATIONS:
Investment income – net		$	59,008		$	71,560		$	73,461
Net realized gain (loss) on investments			(20,529	)		13,556			18,668
Net realized gain (loss) on futures contracts			1,242			(4,532	)		(4,060	)
Net realized gain (loss) on written options			—			1,881			2,256
Net realized gain (loss) on swap agreements			(564	)		727			—
Net realized gain (loss) on forward foreign currency contracts, foreign currency, and translation of other assets and liabilities denominated in foreign currency			—			—			—
Net change in unrealized appreciation or depreciation of investments			(43,955	)		(28,161	)		(35,329	)
Net change in unrealized appreciation or depreciation of futures contracts			719			1,442			(1,340	)
Net change in unrealized appreciation or depreciation of written options			—			—			343
Net change in unrealized appreciation or depreciation of foreign currency, and translation of other assets and liabilities denominated in foreign currency			—			—			—
Net change in unrealized appreciation or depreciation of swap agreements			(432	)		(49	)		—
Net increase (decrease) in net assets resulting from operations			(4,511	)		56,424			53,999
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income – net:
	Class A		(4,573	)		(6,383	)		(6,707	)
	Class B		(390	)		(572	)		(691	)
	Class C		(154	)		(240	)		(311	)
	Class R		(1	)		—			(773	)
	Class Y		(55,592	)		(68,228	)		(70,747	)
Net realized gain on investments:
	Class A		(961	)		(120	)		(2,811	)
	Class B		(99	)		(14	)		(404	)
	Class C		(39	)		(6	)		(191	)
	Class R		—			—			(591	)
	Class Y		(10,418	)		(1,148	)		(28,710	)
Return of capital:
	Class A		—			—			—
	Class B		—			—			—
	Class C		—			—			—
	Class R		—			—			—
	Class Y		—			—			—
Total distributions			(72,227	)		(76,711	)		(111,936	)
CAPITAL SHARE TRANSACTIONS (note 4):
Class A:
	Proceeds from sales		13,680			23,283			64,537
	Reinvestment of distributions		4,002			5,127			7,247
	Payments for redemptions		(38,200	)		(50,134	)		(73,658	)
Increase (decrease) in net assets from Class A transactions			(20,518	)		(21,724	)		(1,874	)
Class B:
	Proceeds from sales		392			1,003			1,965
	Reinvestment of distributions		443			514			948
	Payments for redemptions		(3,458	)		(5,294	)		(9,240	)
Decrease in net assets from Class B transactions			(2,623	)		(3,777	)		(6,327	)
Class C:
	Proceeds from sales		499			884			1,348
	Reinvestment of distributions		187			239			491
	Payments for redemptions		(2,513	)		(2,913	)		(5,799	)
Increase (decrease) in net assets from Class C transactions			(1,827	)		(1,790	)		(3,960	)
Class R:
	Proceeds from sales		21			15			6,356
	Reinvestment of distributions		1			—			1,329
	Payments for redemptions		(2	)		—			(46,072	)
Increase (decrease) in net assets from Class R transactions			20			15			(38,387	)
Class Y:
	Proceeds from sales		371,109			403,595			394,559
	Reinvestment of distributions		21,911			22,339			40,091
	Payments for redemptions		(368,968	)		(422,205	)		(599,130	)
Increase (decrease) in net assets from Class Y transactions			24,052			3,729			(164,480	)
Increase (decrease) in net assets from capital share transactions			(896	)		(23,547	)		(215,028	)
Total increase (decrease) in net assets			(77,634	)		(43,834	)		(272,965	)
Net assets at beginning of period			1,911,620			1,955,454			2,228,419
Net assets at end of period		$	1,833,986		$	1,911,620		$	1,955,454
Undistributed net investment income		$	1,523		$	868		$	380

(1)	No prior period presentation as fund commenced operations on October 1, 2004.
(2)	Due to the presentation of the financial statements in thousands, the number rounds to zero.

The accompanying notes are an integral part of the financial statements.

62      First American Funds Annual Report 2006

									Inflation						Intermediate
High Income									Protected						Government
Bond Fund									Securities Fund						Bond Fund
Nine-Month									Nine-Month						Nine-Month
Period Ended			Year Ended			Year Ended			Period Ended			Year Ended (1)			Period Ended			Year Ended			Year Ended
6/30/06			9/30/05			9/30/04			6/30/06			9/30/05			6/30/06			9/30/05			9/30/04
$	13,743		$	19,572		$	20,792		$	12,924		$	8,605		$	1,573		$	3,080		$	5,648
	2,412			7,856			12,424			(4,813	)		(139	)		(1,404	)		54			5,815
	382			573			(261	)		427			11			—			64			(293	)
	—			—			75			—			94			—			63			279
	257			272			—			7			133			—			—			—
	—			—			62			3			—			—			—			—
	(8,241	)		(9,575	)		(2,836	)		(12,920	)		(1,405	)		(4	)		(2,006	)		(10,413	)
	(34	)		27			45			500			(64	)		—			53			(53	)
	—			—			—			—			—			—			—			51
	—			—			(4	)		(7	)		—			—			—			—
	(98	)		90			—			(609	)		90			—			—			—
	8,421			18,815			30,297			(4,488	)		7,325			165			1,308			1,034
	(1,758	)		(2,729	)		(3,109	)		(272	)		(138	)		(46	)		(64	)		(55	)
	(306	)		(494	)		(601	)		—			—			—			—			—
	(515	)		(929	)		(1,260	)		(29	)		(17	)		—			—			—
	(2	)		(1	)		(30	)		—			—			—			—			—
	(10,947	)		(15,519	)		(15,894	)		(12,527	)		(7,166	)		(1,570	)		(3,114	)		(5,443	)
	—			—			—			(5	)		—			(11	)		(84	)		(258	)
	—			—			—			—			—			—			—			—
	—			—			—			(1	)		—			—			—			—
	—			—			—			—			—			—			—			—
	—			—			—			(194	)		(6	)		(393	)		(4,844	)		(29,444	)
	—			(3	)		—			—			—			—			—			—
	—			(1	)		—			—			—			—			—			—
	—			(1	)		—			—			—			—			—			—
	—			—	(2)		—			—			—			—			—			—
	—			(15	)		—			—			—			—			—			—
	(13,528	)		(19,692	)		(20,894	)		(13,028	)		(7,327	)		(2,020	)		(8,106	)		(35,200	)
	7,253			6,693			10,439			869			7,676			305			1,284			799
	1,219			2,001			2,352			202			100			45			134			221
	(12,438	)		(18,399	)		(12,507	)		(2,558	)		(869	)		(576	)		(1,194	)		(1,360	)
	(3,966	)		(9,705	)		284			(1,487	)		6,907			(226	)		224			(340	)
	481			760			2,346			—			—			—			—			—
	182			310			365			—			—			—			—			—
	(1,738	)		(2,383	)		(3,441	)		—			—			—			—			—
	(1,075	)		(1,313	)		(730	)		—			—			—			—			—
	623			521			2,087			159			886			—			—			—
	451			828			1,109			29			17			—			—			—
	(4,393	)		(5,303	)		(6,143	)		(440	)		(44	)		—			—			—
	(3,319	)		(3,954	)		(2,947	)		(252	)		859			—			—			—
	74			45			308			1			1			—			—			—
	1			1			20			—			—			—			—			—
	(4	)		(43	)		(1,112	)		(1	)		—			—			—			—
	71			3			(784	)		—			1			—			—			—
	47,522			75,166			94,505			103,440			294,003			7,101			14,803			21,991
	1,446			1,986			2,351			3,541			2,104			664			4,328			26,896
	(47,035	)		(103,437	)		(48,429	)		(41,339	)		(26,687	)		(32,533	)		(72,879	)		(220,111	)
	1,933			(26,285	)		48,427			65,642			269,420			(24,768	)		(53,748	)		(171,224	)
	(6,356	)		(41,254	)		44,250			63,903			277,187			(24,994	)		(53,524	)		(171,564	)
	(11,463	)		(42,131	)		53,653			46,387			277,185			(26,849	)		(60,322	)		(205,730	)
	262,352			304,483			250,830			277,185			—			71,319			131,641			337,371
$	250,889		$	262,352		$	304,483		$	323,572		$	277,185		$	44,470		$	71,319		$	131,641
$	181		$	19		$	148		$	1,401		$	1,292		$	34		$	77		$	165

First American Funds Annual Report 2006      63

Statements of  Changes in Net Assets continued

		Intermediate Term
		Bond Fund
		Nine-Month
		Period Ended			Year Ended			Year Ended
		6/30/06			9/30/05			9/30/04
OPERATIONS:
Investment income – net		$	30,772		$	42,144		$	42,757
Net realized gain (loss) on investments			(12,420	)		(2,596	)		18,776
Net realized gain (loss) on futures contracts			1,169			(730	)		(1,075	)
Net realized gain (loss) on written options			—			1,217			1,321
Net realized gain (loss) on swap agreements			(320	)		639			—
Net realized gain (loss) on forward foreign currency contracts, foreign currency, and translation of other assets and liabilities denominated in foreign currency			—			—			—
Net change in unrealized appreciation or depreciation of investments			(15,431	)		(18,673	)		(32,178	)
Net change in unrealized appreciation or depreciation of futures contracts			227			624			(517	)
Net change in unrealized appreciation or depreciation of written options			—			—			206
Net change in unrealized appreciation or depreciation of foreign currency, and translation of other assets and liabilities denominated in foreign currency			—			—			—
Net change in unrealized appreciation or depreciation of swap agreements			(605	)		(27	)		—
Net increase (decrease) in net assets resulting from operations			3,392			22,598			29,290
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income – net:
	Class A		(1,298	)		(1,797	)		(2,199	)
	Class B		—			—			—
	Class C		—			—			—
	Class R		—			—			(220	)
	Class Y		(30,598	)		(40,236	)		(40,500	)
Net realized gain on investments:
	Class A		(166	)		(561	)		(840	)
	Class B		—			—			—
	Class C		—			—			—
	Class R		—			—			(131	)
	Class Y		(3,712	)		(11,243	)		(13,807	)
Return of capital:
	Class A		—			—			—
	Class B		—			—			—
	Class C		—			—			—
	Class R		—			—			—
	Class Y		—			—			—
Total distributions			(35,774	)		(53,837	)		(57,697	)
CAPITAL SHARE TRANSACTIONS (note 4):
Class A:
	Proceeds from sales		5,185			8,671			26,236
	Reinvestment of distributions		1,300			2,041			1,995
	Payments for redemptions		(15,250	)		(24,078	)		(42,101	)
Increase (decrease) in net assets from Class A transactions			(8,765	)		(13,366	)		(13,870	)
Class B:
	Proceeds from sales		—			—			—
	Reinvestment of distributions		—			—			—
	Payments for redemptions		—			—			—
Decrease in net assets from Class B transactions			—			—			—
Class C:
	Proceeds from sales		—			—			—
	Reinvestment of distributions		—			—			—
	Payments for redemptions		—			—			—
Increase (decrease) in net assets from Class C transactions			—			—			—
Class R:
	Proceeds from sales		—			—			4,442
	Reinvestment of distributions		—			—			323
	Payments for redemptions		—			—			(16,683	)
Increase (decrease) in net assets from Class R transactions			—			—			(11,918	)
Class Y:
	Proceeds from sales		143,333			245,371			386,218
	Reinvestment of distributions		13,089			20,576			23,314
	Payments for redemptions		(300,854	)		(381,218	)		(459,895	)
Increase (decrease) in net assets from Class Y transactions			(144,432	)		(115,271	)		(50,363	)
Increase (decrease) in net assets from capital share transactions			(153,197	)		(128,637	)		(76,151	)
Total increase (decrease) in net assets			(185,579	)		(159,876	)		(104,558	)
Net assets at beginning of period			1,123,050			1,282,926			1,387,484
Net assets at end of period		$	937,471		$	1,123,050		$	1,282,926
Undistributed net investment income		$	787		$	1,447		$	380

(1)   Due to the presentation of the financial statements in thousands, the number rounds to zero.

The accompanying notes are an integral part of the financial statements.

64      First American Funds Annual Report 2006

Short Term									Total Return									U.S. Government
Bond Fund									Bond Fund									Mortgage Fund
Nine-Month									Nine-Month									Nine-Month
Period Ended			Year Ended			Year Ended			Period Ended			Year Ended			Year Ended			Period Ended			Year Ended			Year Ended
6/30/06			9/30/05			9/30/04			6/30/06			9/30/05			9/30/04			6/30/06			9/30/05			9/30/04
$	15,272		$	25,989		$	23,756		$	11,839		$	12,422		$	13,096		$	6,048		$	8,223		$	9,612
	(4,403	)		(6,244	)		3,167			(4,994	)		5,824			6,006			(1,518	)		696			616
	2,746			(2,529	)		(1,911	)		1,189			(465	)		(735	)		502			43			(630	)
	—			142			—			8			157			104			—			(102	)		269
	(825	)		783			—			(51	)		857			—			(24	)		—			—
	—			—			—			(12	)		(6	)		—			—			—			—
	(445	)		(7,121	)		(14,832	)		(8,227	)		(8,750	)		(5,034	)		(4,359	)		(3,451	)		(3,225	)
	(703	)		1,494			(524	)		588			165			(263	)		(36	)		112			(6	)
	—			—			—			—			—			—			—			—			40
	—			—			—			(3	)		(2	)		—			—			—			—
	(148	)		(2,149	)		—			(559	)		(7	)		—			(81	)		—			—
	11,494			10,365			9,656			(222	)		10,195			13,174			532			5,521			6,676
	(2,415	)		(3,144	)		(3,287	)		(520	)		(841	)		(787	)		(702	)		(1,230	)		(1,210	)
	—			—			—			(98	)		(167	)		(390	)		(211	)		(312	)		(354	)
	—			—			—			(67	)		(118	)		(186	)		(168	)		(300	)		(525	)
	—			—			(108	)		—			—			(59	)		—			—			(385	)
	(15,530	)		(23,671	)		(21,857	)		(10,831	)		(11,336	)		(11,683	)		(5,464	)		(7,495	)		(9,087	)
	—			—			—			—			—			—			—			—			—
	—			—			—			—			—			—			—			—			—
	—			—			—			—			—			—			—			—			—
	—			—			—			—			—			—			—			—			—
	—			—			—			—			—			—			—			—			—
	—			(43	)		—			—			—			(1	)		—			—			—
	—			—	(1)		—			—			—			(1	)		—			—			—
	—			—	(1)		—			—			—			—	(1)		—			—			—
	—			—	(1)		—			—			—			—	(1)		—			—			—
	—			(328	)		—			—			—			(17	)		—			—			—
	(17,945	)		(27,186	)		(25,252	)		(11,516	)		(12,462	)		(13,124	)		(6,545	)		(9,337	)		(11,561	)
	2,067			6,342			29,602			2,182			2,495			12,203			1,271			5,292			18,795
	1,915			2,512			2,563			429			686			624			599			1,097			1,048
	(22,185	)		(39,475	)		(58,743	)		(5,664	)		(4,969	)		(5,431	)		(9,687	)		(14,192	)		(11,208	)
	(18,203	)		(30,621	)		(26,578	)		(3,053	)		(1,788	)		7,396			(7,817	)		(7,803	)		8,635
	—			—			—			106			240			687			326			742			1,290
	—			—			—			76			125			278			186			275			313
	—			—			—			(792	)		(1,417	)		(8,920	)		(1,607	)		(2,090	)		(3,679	)
	—			—			—			(610	)		(1,052	)		(7,955	)		(1,095	)		(1,073	)		(2,076	)
	—			—			—			127			90			323			65			309			1,119
	—			—			—			58			105			172			157			284			508
	—			—			—			(456	)		(1,107	)		(2,434	)		(1,491	)		(4,390	)		(9,603	)
	—			—			—			(271	)		(912	)		(1,939	)		(1,269	)		(3,797	)		(7,976	)
	—			—			1,901			13			2			90			6			1			1,517
	—			—			92			—			—			59			—			—			359
	—			—			(10,658	)		(1	)		—			(2,840	)		(2	)		—			(19,037	)
	—			—			(8,665	)		12			2			(2,691	)		4			1			(17,161	)
	72,120			149,034			462,268			214,597			94,268			55,561			19,923			35,129			43,758
	5,642			7,911			7,197			1,706			1,633			1,623			876			960			1,090
	(242,927	)		(459,960	)		(345,341	)		(105,757	)		(58,054	)		(60,124	)		(33,662	)		(45,987	)		(84,443	)
	(165,165	)		(303,015	)		124,124			110,546			37,847			(2,940	)		(12,863	)		(9,898	)		(39,595	)
	(183,368	)		(333,636	)		88,881			106,624			34,097			(8,129	)		(23,040	)		(22,570	)		(58,173	)
	(189,819	)		(350,457	)		73,285			94,886			31,830			(8,079	)		(29,053	)		(26,386	)		(63,058	)
	723,255			1,073,712			1,000,427			305,146			273,316			281,395			197,248			223,634			286,692
$	533,436		$	723,255		$	1,073,712		$	400,032		$	305,146		$	273,316		$	168,195		$	197,248		$	223,634
$	256		$	2,148		$	548		$	546		$	117		$	—		$	22		$	132		$	242

First American Funds Annual Report 2006      65

Financial Highlights  For a share outstanding throughout the indicated periods.

						Realized and
		Net Asset				Unrealized			Distributions						Net Asset
		Value		Net		Gains			from Net			Distributions			Value
		Beginning		Investment		(Losses) on			Investment			from Net			End of
		of Period		Income		Investments			Income			Realized Gains			Period
Core Bond Fund
Class A
	2006 (1)(2)	$	11.15	$	0.33	$	(0.37	)	$	(0.33	)	$	(0.07	)	$	10.71
	2005 (2)(3)		11.27		0.40		(0.09	)		(0.42	)		(0.01	)		11.15
	2004 (2)(3)		11.56		0.38		(0.09	)		(0.41	)		(0.17	)		11.27
	2003 (3)		11.45		0.42		0.15			(0.46	)		—			11.56
	2002 (3)		11.37		0.55		0.08			(0.55	)		—			11.45
	2001 (2)(3)		10.69		0.61		0.69			(0.62	)		—			11.37
Class B
	2006 (1)(2)	$	11.07	$	0.26	$	(0.36	)	$	(0.27	)	$	(0.07	)	$	10.63
	2005 (2)(3)		11.19		0.31		(0.09	)		(0.33	)		(0.01	)		11.07
	2004 (2)(3)		11.48		0.29		(0.09	)		(0.32	)		(0.17	)		11.19
	2003 (3)		11.38		0.35		0.12			(0.37	)		—			11.48
	2002 (3)		11.29		0.47		0.09			(0.47	)		—			11.38
	2001 (2)(3)		10.63		0.52		0.68			(0.54	)		—			11.29
Class C
	2006 (1)(2)	$	11.12	$	0.26	$	(0.37	)	$	(0.27	)	$	(0.07	)	$	10.67
	2005 (2)(3)		11.24		0.31		(0.09	)		(0.33	)		(0.01	)		11.12
	2004 (2)(3)		11.53		0.29		(0.09	)		(0.32	)		(0.17	)		11.24
	2003 (3)		11.42		0.34		0.14			(0.37	)		—			11.53
	2002 (3)		11.34		0.47		0.08			(0.47	)		—			11.42
	2001 (2)(3)		10.66		0.52		0.70			(0.54	)		—			11.34
Class R (4)
	2006 (1)(2)	$	11.17	$	0.31	$	(0.36	)	$	(0.32	)	$	(0.07	)	$	10.73
	2005 (2)(3)		11.30		0.38		(0.10	)		(0.40	)		(0.01	)		11.17
	2004 (2)(3)		11.56		0.38		(0.10	)		(0.37	)		(0.17	)		11.30
	2003 (3)		11.45		0.42		0.15			(0.46	)		—			11.56
	2002 (3)		11.37		0.55		0.08			(0.55	)		—			11.45
	2001 (2)(5)		11.28		0.01		0.08			—			—			11.37
Class Y
	2006 (1)(2)	$	11.15	$	0.35	$	(0.38	)	$	(0.35	)	$	(0.07	)	$	10.70
	2005 (2)(3)		11.27		0.42		(0.08	)		(0.45	)		(0.01	)		11.15
	2004 (2)(3)		11.56		0.40		(0.08	)		(0.44	)		(0.17	)		11.27
	2003 (3)		11.45		0.45		0.15			(0.49	)		—			11.56
	2002 (3)		11.37		0.58		0.08			(0.58	)		—			11.45
	2001 (2)(3)		10.69		0.63		0.70			(0.65	)		—			11.37

(1)	For the nine-month period October 1, 2005 to June 30, 2006. Effective in 2006, the fund’s fiscal year-end was changed from September 30 to June 30. All ratios for the period have been annualized, except total return and portfolio turnover.
(2)	Per share data calculated using average shares outstanding method.
(3)	For the period October 1 to September 30 in the year indicated.
(4)	Prior to July 1, 2004, Class R shares were named Class S shares, which had lower fees and expenses.
(5)	Class of shares has been offered since September 24, 2001. All ratios for the period ended September 30, 2001, have been annualized, except total return and portfolio turnover.
(6)	Total return does not reflect sales charges. Total return would have been lower had certain expenses not been waived.

The accompanying notes are an integral part of the financial statements.

66      First American Funds Annual Report 2006

														Ratio of Net
											Ratio of			Investment
								Ratio of Net			Expenses to			Income to
					Ratio of			Investment			Average			Average Net
			Net Assets		Expenses to			Income			Net Assets			Assets			Portfolio
Total			End of		Average			to Average			(Excluding			(Excluding			Turnover
Return (6)			Period (000)		Net Assets			Net Assets			Waivers)			Waivers)			Rate
	(0.34	)%	$	134,845		0.95	%		3.98	%		1.03	%		3.90	%		139	%
	2.75			161,410		0.95			3.51			1.05			3.41			208
	2.60			184,805		0.95			3.30			1.05			3.20			182
	5.08			191,754		0.95			3.58			1.05			3.48			196
	5.77			122,354		0.95			4.93			1.03			4.85			115
	12.50			119,067		0.95			5.50			1.13			5.32			81
	(0.91	)%	$	13,819		1.70	%		3.23	%		1.78	%		3.15	%		139	%
	2.00			17,078		1.70			2.76			1.80			2.66			208
	1.83			21,046		1.70			2.58			1.80			2.48			182
	4.23			28,096		1.70			2.83			1.80			2.73			196
	5.12			16,741		1.70			4.17			1.78			4.09			115
	11.59			15,071		1.70			4.75			1.88			4.57			81
	(1.01	)%	$	5,183		1.70	%		3.22	%		1.78	%		3.14	%		139	%
	1.99			7,266		1.70			2.76			1.80			2.66			208
	1.81			9,132		1.70			2.58			1.80			2.48			182
	4.30			13,424		1.70			2.85			1.80			2.75			196
	5.02			9,672		1.70			4.18			1.78			4.10			115
	11.68			7,148		1.70			4.65			1.88			4.47			81
	(0.51	)%	$	34		1.20	%		3.77	%		1.43	%		3.54	%		139	%
	2.51			16		1.20			3.37			1.45			3.12			208
	2.53			1		0.95			3.37			1.05			3.27			182
	5.08			39,236		0.95			3.58			1.05			3.48			196
	5.77			33,270		0.95			4.93			1.03			4.85			115
	0.80			35,062		1.58			6.36			1.76			6.18			81
	(0.24	)%	$	1,680,105		0.70	%		4.24	%		0.78	%		4.16	%		139	%
	3.01			1,725,850		0.70			3.77			0.80			3.67			208
	2.87			1,740,470		0.70			3.58			0.80			3.48			182
	5.34			1,955,909		0.70			3.83			0.80			3.73			196
	6.04			1,204,555		0.70			5.18			0.78			5.10			115
	12.76			1,368,812		0.70			5.76			0.88			5.58			81

First American Funds Annual Report 2006      67

Financial Highlights  continued

						Realized and
		Net Asset				Unrealized			Distributions						Distributions			Net Asset
		Value		Net		Gains			from Net			Distributions			from			Value
		Beginning		Investment		(Losses) on			Investment			from Net			Return of			End of
		of Period		Income		Investments			Income			Realized Gains			Capital			Period
High Income Bond Fund (1)
Class A
	2006 (2)(3)	$	9.41	$	0.49	$	(0.20	)	$	(0.48	)	$	—		$	—		$	9.22
	2005 (3)(4)		9.45		0.66		(0.04	)		(0.66	)		—			—	(9)		9.41
	2004 (3)(4)		9.13		0.68		0.32			(0.68	)		—			—			9.45
	2003 (3)(4)		7.90		0.68		1.24			(0.69	)		—			—			9.13
	2002 (4)		9.23		0.65		(1.21	)		(0.70	)		—			(0.07	)		7.90
	2001 (3)(5)		9.93		0.02		(0.68	)		(0.04	)		—			—			9.23
Class B
	2006 (2)(3)	$	9.37	$	0.43	$	(0.19	)	$	(0.43	)	$	—		$	—		$	9.18
	2005 (3)(4)		9.41		0.58		(0.03	)		(0.59	)		—			—	(9)		9.37
	2004 (3)(4)		9.09		0.61		0.32			(0.61	)		—			—			9.41
	2003 (3)(4)		7.87		0.61		1.24			(0.63	)		—			—			9.09
	2002 (4)		9.19		0.69		(1.31	)		(0.63	)		—			(0.07	)		7.87
	2001 (3)(5)		9.88		0.02		(0.67	)		(0.04	)		—			—			9.19
Class C
	2006 (2)(3)	$	9.38	$	0.43	$	(0.19	)	$	(0.43	)	$	—		$	—		$	9.19
	2005 (3)(4)		9.42		0.58		(0.03	)		(0.59	)		—			—	(9)		9.38
	2004 (3)(4)		9.10		0.61		0.32			(0.61	)		—			—			9.42
	2003 (3)(4)		7.89		0.61		1.23			(0.63	)		—			—			9.10
	2002 (4)		9.21		0.64		(1.27	)		(0.62	)		—			(0.07	)		7.89
	2001 (3)(5)		9.90		0.05		(0.70	)		(0.04	)		—			—			9.21
Class R (6)
	2006 (2)(3)	$	9.53	$	0.49	$	(0.20	)	$	(0.47	)	$	—		$	—		$	9.35
	2005 (3)(4)		9.60		0.62		(0.04	)		(0.65	)		—			—	(9)		9.53
	2004 (3)(4)		9.21		0.69		0.32			(0.62	)		—			—			9.60
	2003 (3)(4)		7.98		0.71		1.22			(0.70	)		—			—			9.21
	2002 (4)		9.32		0.73		(1.30	)		(0.70	)		—			(0.07	)		7.98
	2001 (3)(7)		9.50		0.01		(0.19	)		—			—			—			9.32
Class Y
	2006 (2)(3)	$	9.42	$	0.51	$	(0.20	)	$	(0.50	)	$	—		$	—		$	9.23
	2005 (3)(4)		9.46		0.68		(0.03	)		(0.69	)		—			—	(9)		9.42
	2004 (3)(4)		9.13		0.70		0.34			(0.71	)		—			—			9.46
	2003 (3)(4)		7.92		0.69		1.24			(0.72	)		—			—			9.13
	2002 (4)		9.24		0.74		(1.28	)		(0.71	)		—			(0.07	)		7.92
	2001 (3)(5)		9.92		0.05		(0.69	)		(0.04	)		—			—			9.24
Inflation Protected Securities Fund (3)
Class A
	2006 (2)	$	10.12	$	0.38	$	(0.55	)	$	(0.40	)	$	(0.01	)	$	—		$	9.54
	2005 (8)		10.00		0.51		(0.02	)		(0.37	)		—			—			10.12
Class C
	2006 (2)	$	10.11	$	0.31	$	(0.53	)	$	(0.35	)	$	(0.01	)	$	—		$	9.53
	2005 (8)		10.00		0.40		0.02			(0.31	)		—			—			10.11
Class R
	2006 (2)	$	10.13	$	0.38	$	(0.56	)	$	(0.39	)	$	(0.01	)	$	—		$	9.55
	2005 (8)		10.00		0.43		0.05			(0.35	)		—			—			10.13
Class Y
	2006 (2)	$	10.13	$	0.42	$	(0.57	)	$	(0.42	)	$	(0.01	)	$	—		$	9.55
	2005 (8)		10.00		0.51		0.01			(0.39	)		—			—			10.13

(1)	The financial highlights for the High Income Bond Fund as set forth herein include the historical financial highlights of the First American High Yield Bond Fund Class A shares, Class B shares Class C shares, Class S shares, and Class Y shares. The assets of the First American High Yield Bond Fund were acquired by High Income Bond Fund on March 14, 2003. In connection with such acquisition, Class A shares, Class B shares, Class C shares, Class S shares, and Class Y shares of the First American High Yield Bond Fund were exchanged for Class A shares, Class B shares, Class C shares, Class S shares, and Class Y shares of High Income Bond Fund respectively. Historical per-share amounts have been adjusted to reflect the conversion ratios utilized for the merger of the High Income Bond Fund and the First American High Yield Bond Fund.
(2)	For the nine-month period October 1, 2005 to June 30, 2006. Effective in 2006, the fund’s fiscal year-end was changed from September 30 to June 30. All ratios for the period have been annualized, except total return and portfolio turnover.
(3)	Per share data calculated using average shares outstanding method.
(4)	For the period October 1 through September 30 in the year indicated.
(5)	Commenced operations on August 30, 2001. All ratios for the period ended September 30, 2001, have been annualized, except total return and portfolio turnover.
(6)	Prior to July 1, 2004, Class R shares were named Class S shares, which had lower fees and expenses.
(7)	Class of shares has been offered since September 24, 2001. All ratios for the period ended September 30, 2001, have been annualized, except total return and portfolio turnover.
(8)	Commenced operations on October 1, 2004. All ratios for the period ended September 30, 2005, have been annualized, except total return and portfolio turnover.
(9)	Includes a tax return of capital of less than $0.01.

(10)   Total return does not reflect sales charges. Total return would have been lower had certain expenses not been waived.

The accompanying notes are an integral part of the financial statements.

68      First American Funds Annual Report 2006

														Ratio of Net
											Ratio of			Investment
								Ratio of Net			Expenses to			Income to
					Ratio of			Investment			Average			Average Net
			Net Assets		Expenses to			Income			Net Assets			Assets			Portfolio
Total			End of		Average			to Average			(Excluding			(Excluding			Turnover
Return (10)			Period (000)		Net Assets			Net Assets			Waivers)			Waivers)			Rate
	3.14	%	$	29,573		1.10	%		6.94	%		1.29	%		6.75	%		68	%
	6.74			34,144		1.02			6.88			1.27			6.63			77
	11.30			43,842		1.00			7.25			1.26			6.99			80
	25.30			42,013		1.06			7.72			1.24			7.54			122
	(6.66	)		23,900		1.10			7.64			1.47			7.27			86
	(6.55	)		161		1.10			6.53			1.33			6.30			53
	2.57	%	$	5,988		1.85	%		6.19	%		2.04	%		6.00	%		68	%
	5.97			7,191		1.77			6.13			2.02			5.88			77
	10.52			8,521		1.75			6.50			2.01			6.24			80
	24.33			8,939		1.81			7.00			1.99			6.82			122
	(7.26	)		774		1.80			7.49			2.28			7.01			86
	(6.47	)		40		1.77			6.02			2.02			5.77			53
	2.56	%	$	9,873		1.85	%		6.19	%		2.04	%		6.00	%		68	%
	5.96			13,403		1.77			6.13			2.02			5.88			77
	10.51			17,349		1.75			6.50			2.01			6.24			80
	24.14			19,685		1.80			7.01			1.98			6.83			122
	(7.34	)		7,213		1.83			7.08			2.26			6.65			86
	(6.50	)		3,749		1.94			5.53			2.21			5.26			53
	3.09	%	$	73		1.35	%		6.82	%		1.69	%		6.48	%		68	%
	6.23			4		1.33			6.31			1.73			5.91			77
	11.29			1		1.00			7.33			1.26			7.07			80
	25.11			777		1.00			7.86			1.18			7.68			122
	(6.66	)		87		1.01			8.46			1.57			7.90			86
	(1.90	)		—		—			1.23			—			1.23			53
	3.34	%	$	205,382		0.85	%		7.19	%		1.04	%		7.00	%		68	%
	7.01			207,610		0.77			7.13			1.02			6.88			77
	11.69			234,770		0.75			7.49			1.01			7.23			80
	25.29			179,416		0.83			7.97			1.01			7.79			122
	(6.33	)		21,157		0.82			8.19			1.27			7.74			86
	(6.47	)		8,308		0.96			6.06			1.23			5.79			53
	(1.69	)%	$	5,042		0.85	%		5.20	%		1.08	%		4.97	%		85	%
	4.93			6,917		0.85			5.04			1.09			4.80			23
	(2.26	)%	$	552		1.60	%		4.29	%		1.83	%		4.06	%		85	%
	4.18			855		1.60			3.98			1.84			3.74			23
	(1.80	)%	$	1		1.10	%		5.17	%		1.48	%		4.79	%		85	%
	4.81			1		1.10			4.22			1.49			3.83			23
	(1.50	)%	$	317,977		0.60	%		5.73	%		0.83	%		5.50	%		85	%
	5.24			269,412		0.60			5.05			0.84			4.81			23

First American Funds Annual Report 2006      69

Financial Highlights  continued

						Realized and
		Net Asset				Unrealized			Dividends						Distributions
		Value		Net		Gains			from Net			Distributions			from			Net Asset
		Beginning		Investment		(Losses) on			Investment			from Net			Return of			Value End
		of Period		Income		Investments			Income			Realized Gains			Capital			of Period
Intermediate Government Bond Fund
Class A
	2006 (1)(2)	$	8.26	$	0.22	$	(0.22	)	$	(0.22	)	$	(0.05	)	$	—		$	7.99
	2005 (2)(3)		8.82		0.27		(0.15	)		(0.28	)		(0.40	)		—			8.26
	2004 (2)(3)		10.01		0.24		(0.16	)		(0.24	)		(1.03	)		—			8.82
	2003 (4)		10.00		0.32		0.02			(0.33	)		—			—			10.01
Class Y
	2006 (1)(2)	$	8.25	$	0.22	$	(0.20	)	$	(0.23	)	$	(0.05	)	$	—		$	7.99
	2005 (2)(3)		8.82		0.28		(0.16	)		(0.29	)		(0.40	)		—			8.25
	2004 (2)(3)		10.01		0.26		(0.17	)		(0.25	)		(1.03	)		—			8.82
	2003 (4)		10.00		0.34		0.01			(0.34	)		—			—			10.01
Intermediate Term Bond Fund (5)
Class A
	2006 (1)(2)	$	9.99	$	0.29	$	(0.27	)	$	(0.30	)	$	(0.03	)	$	—		$	9.68
	2005 (2)(3)		10.25		0.34		(0.17	)		(0.33	)		(0.10	)		—			9.99
	2004 (2)(3)		10.46		0.31		(0.10	)		(0.31	)		(0.11	)		—			10.25
	2003 (3)		10.35		0.39		0.12			(0.40	)		—			—			10.46
	2002 (3)		10.26		0.50		0.10			(0.50	)		—			(0.01	)		10.35
	2001 (2)(6)		9.70		0.54		0.55			(0.51	)		(0.02	)		—			10.26
Class Y
	2006 (1)(2)	$	9.96	$	0.30	$	(0.27	)	$	(0.31	)	$	(0.03	)	$	—		$	9.65
	2005 (2)(3)		10.22		0.36		(0.17	)		(0.35	)		(0.10	)		—			9.96
	2004 (2)(3)		10.43		0.33		(0.11	)		(0.32	)		(0.11	)		—			10.22
	2003 (3)		10.32		0.41		0.12			(0.42	)		—			—			10.43
	2002 (3)		10.23		0.52		0.10			(0.52	)		—			(0.01	)		10.32
	2001 (2)(6)		9.68		0.56		0.54			(0.53	)		(0.02	)		—			10.23

(1)	For the nine-month period ended June 30, 2006. Effective in 2006, the fund’s fiscal year end was changed from September 30 to June 30. All ratios for the period have been annualized, except total return and portfolio turnover.
(2)	Per share data calculated using average shares outstanding method.
(3)	For the period October 1 to September 30 in the year indicated.
(4)	Commenced operations on October 25, 2002. All ratios for the period ended September 30, 2003, have been annualized, except total return and portfolio turnover.
(5)	The financial highlights for the Intermediate Term Bond Fund prior to September 24, 2001, are those of the Firstar Intermediate Bond Fund Class A shares, Class Y shares, and Class I shares. The assets of the Firstar Intermediate Bond Fund were acquired by Intermediate Term Bond Fund on September 24, 2001. In connection with such acquisition, Class A shares, Class Y shares, and Class I shares of the Firstar Intermediate Bond Fund were exchanged for Class A shares, Class S shares (subsequently merged into Class A), and Class Y shares of Intermediate Term Bond Fund, respectively. Historical per-share amounts have been adjusted to reflect the conversion ratios utilized for the merger of the Intermediate Term Bond Fund and the Firstar Intermediate Bond Fund.
(6)	For the period November 1, 2000 to September 30, 2001. Effective in 2001, the fund’s fiscal year-end changed from October 31 to September 30. All ratios for the period have been annualized, except total return and portfolio turnover.
(7)	Total return does not reflect sales charges. Total return would have been lower had certain expenses not been waived. The accompanying notes are an integral part of the financial statements.

The accompanying notes are an integral part of the financial statements.

70      First American Funds Annual Report 2006

														Ratio of Net
											Ratio of			Investment
								Ratio of Net			Expenses			Income
					Ratio of			Investment			to Average			to Average
			Net Assets		Expenses			Income			Net Assets			Net Assets			Portfolio
Total			End of		to Average			to Average			(Excluding			(Excluding			Turnover
Return (7)			Period (000)		Net Assets			Net Assets			Waivers)			Waivers)			Rate
	0.06	%	$	1,689		0.75	%		3.56	%		1.26	%		3.05	%		70	%
	1.40			1,970		0.75			3.21			1.09			2.87			161
	0.98			1,872		0.75			2.69			1.03			2.41			53
	3.53			2,502		0.75			3.22			1.05			2.92			74
	0.30	%	$	42,781		0.60	%		3.70	%		1.01	%		3.29	%		70	%
	1.43			69,349		0.60			3.34			0.84			3.10			161
	1.14			129,769		0.60			2.84			0.78			2.66			53
	3.64			334,869		0.60			3.68			0.80			3.48			74
	0.23	%	$	38,296		0.75	%		3.88	%		1.03	%		3.60	%		113	%
	1.69			48,426		0.75			3.39			1.05			3.09			118
	2.06			63,219		0.75			2.97			1.04			2.68			169
	5.09			78,682		0.75			3.89			1.05			3.59			133
	6.11			65,291		0.75			4.96			1.02			4.69			40
	11.46			61,225		0.85			5.62			0.96			5.51			30
	0.34	%	$	899,175		0.60	%		4.03	%		0.78	%		3.85	%		113	%
	1.85			1,074,624		0.60			3.55			0.80			3.35			118
	2.22			1,219,707		0.60			3.12			0.79			2.93			169
	5.25			1,296,529		0.60			4.05			0.80			3.85			133
	6.29			978,406		0.60			5.11			0.77			4.94			40
	11.61			878,695		0.60			5.83			0.70			5.73			30

First American Funds Annual Report 2006      71

Financial Highlights  continued

						Realized and
		Net Asset				Unrealized			Dividends						Distributions			Net Asset
		Value		Net		Gains			from Net			Distributions			from			Value
		Beginning		Investment		(Losses) on			Investment			from Net			Return of			End of
		of Period		Income		Investments			Income			Realized Gains			Capital			Period
Short Term Bond Fund
Class A
	2006 (1)(2)	$	9.93	$	0.23	$	(0.06	)	$	(0.27	)	$	—		$	—		$	9.83
	2005 (2)(3)		10.11		0.27		(0.16	)		(0.29	)		—			—	(6)		9.93
	2004 (2)(3)		10.26		0.23		(0.15	)		(0.23	)		—			—			10.11
	2003 (3)		10.29		0.28		(0.01	)		(0.30	)		—			—			10.26
	2002 (3)		10.27		0.42		0.04			(0.43	)		—			(0.01	)		10.29
	2001 (2)(3)		9.91		0.61		0.40			(0.65	)		—			—			10.27
Class Y
	2006 (1)(2)	$	9.93	$	0.24	$	(0.06	)	$	(0.28	)	$	—		$	—		$	9.83
	2005 (2)(3)		10.11		0.28		(0.16	)		(0.29	)		—			(0.01	)		9.93
	2004 (2)(3)		10.26		0.25		(0.16	)		(0.24	)		—			—			10.11
	2003 (3)		10.30		0.30		(0.02	)		(0.32	)		—			—			10.26
	2002 (3)		10.27		0.43		0.05			(0.44	)		—			(0.01	)		10.30
	2001 (2)(3)		9.91		0.63		0.39			(0.66	)		—			—			10.27
Total Return Bond Fund
Class A
	2006 (1)(2)	$	10.18	$	0.31	$	(0.33	)	$	(0.30	)	$	—		$	—		$	9.86
	2005 (2)(3)		10.25		0.43		(0.07	)		(0.43	)		—			—			10.18
	2004 (2)(3)		10.23		0.46		0.03			(0.47	)		—			—	(6)		10.25
	2003 (3)		9.60		0.51		0.63			(0.51	)		—			—			10.23
	2002 (3)		10.01		0.57		(0.39	)		(0.58	)		(0.01	)		—			9.60
	2001 (2)(3)		10.03		0.72		0.35			(0.73	)		(0.36	)		—			10.01
Class B
	2006 (1)(2)	$	10.14	$	0.25	$	(0.32	)	$	(0.25	)	$	—		$	—		$	9.82
	2005 (2)(3)		10.21		0.35		(0.07	)		(0.35	)		—			—			10.14
	2004 (2)(3)		10.20		0.39		0.01			(0.39	)		—			—	(6)		10.21
	2003 (3)		9.57		0.44		0.63			(0.44	)		—			—			10.20
	2002 (3)		9.98		0.49		(0.38	)		(0.51	)		(0.01	)		—			9.57
	2001 (2)(3)		10.02		0.66		0.32			(0.66	)		(0.36	)		—			9.98
Class C
	2006 (1)(2)	$	10.12	$	0.25	$	(0.32	)	$	(0.25	)	$	—		$	—		$	9.80
	2005 (2)(3)		10.20		0.35		(0.07	)		(0.36	)		—			—			10.12
	2004 (2)(3)		10.18		0.39		0.02			(0.39	)		—			—	(6)		10.20
	2003 (3)		9.55		0.44		0.63			(0.44	)		—			—			10.18
	2002 (3)		9.97		0.49		(0.40	)		(0.50	)		(0.01	)		—			9.55
	2001 (2)(3)		10.01		0.63		0.35			(0.66	)		(0.36	)		—			9.97
Class R (4)
	2006 (1)(2)	$	10.23	$	0.30	$	(0.34	)	$	(0.29	)	$	—		$	—		$	9.90
	2005 (2)(3)		10.29		0.41		(0.07	)		(0.40	)		—			—			10.23
	2004 (2)(3)		10.23		0.48		—			(0.42	)		—			—	(6)		10.29
	2003 (3)		9.60		0.51		0.63			(0.51	)		—			—			10.23
	2002 (3)		10.01		0.56		(0.38	)		(0.58	)		(0.01	)		—			9.60
	2001 (2)(5)		9.93		0.01		0.07			—			—			—			10.01
Class Y
	2006 (1)(2)	$	10.17	$	0.33	$	(0.33	)	$	(0.32	)	$	—		$	—		$	9.85
	2005 (2)(3)		10.24		0.46		(0.07	)		(0.46	)		—			—			10.17
	2004 (2)(3)		10.23		0.49		0.01			(0.49	)		—			—	(6)		10.24
	2003 (3)		9.59		0.54		0.64			(0.54	)		—			—			10.23
	2002 (3)		10.00		0.59		(0.39	)		(0.60	)		(0.01	)		—			9.59
	2001 (2)(3)		10.03		0.75		0.33			(0.75	)		(0.36	)		—			10.00

(1)	For the nine-month period October 1, 2005 to June 30, 2006. Effective in 2006, the fund’s fiscal year-end changed from September 30 to June 30. All ratios for the period have been annualized, except total return and portfolio turnover.
(2)	Per share data calculated using average shares outstanding method.
(3)	For the period October 1 to September 30 in the year indicated.
(4)	Prior to July 1, 2004, Class R shares were named Class S shares, which had lower fees and expenses.
(5)	Class of shares have been offered since September, 24, 2001. All ratios for the period ended September 30, 2001, have been annualized, except total return and portfolio turnover.
(6)	Includes a tax return of capital of less than $0.01.
(7)	Total return does not reflect sales charges. Total return would have been lower had certain expenses not been waived.

The accompanying notes are an integral part of the financial statements.

72      First American Funds Annual Report 2006

															Ratio of Net
												Ratio of			Investment
									Ratio of Net			Expenses to			Income to
						Ratio of			Investment			Average			Average Net
			Net Assets			Expenses to			Income			Net Assets			Assets			Portfolio
Total			End of			Average			to Average			(Excluding			(Excluding			Turnover
Return (7)			Period (000)			Net Assets			Net Assets			Waivers)			Waivers)			Rate
	1.75	%	$	78,771			0.75	%		3.11	%		1.04	%		2.82	%		60	%
	1.08			97,863			0.75			2.68			1.05			2.38			64
	0.76			130,531			0.75			2.28			1.05			1.98			89
	2.71			159,451			0.75			2.75			1.05			2.45			60
	4.59			163,358			0.75			4.06			1.04			3.77			59
	10.48			133,177			0.60			6.04			1.15			5.49			69
	1.87	%	$	454,665			0.60	%		3.26	%		0.79	%		3.07	%		60	%
	1.23			625,392			0.60			2.83			0.80			2.63			64
	0.91			943,181			0.60			2.43			0.80			2.23			89
	2.76			832,266			0.60			2.84			0.80			2.64			60
	4.85			484,583			0.60			4.18			0.79			3.99			59
	10.64			277,244			0.46			6.24			1.02			5.68			69
	(0.17	)%	$	15,522			1.00	%		4.14	%		1.17	%		3.97	%		166	%
	3.57			19,113			1.00			4.20			1.25			3.95			285
	4.89			21,034			1.00			4.54			1.25			4.29			132
	12.26			13,522			1.00			5.15			1.26			4.89			91
	1.83			8,663			1.00			5.77			1.27			5.50			117
	10.94			9,820	��		0.75			6.95			1.20			6.50			187
	(0.74	)%	$	3,657			1.75	%		3.40	%		1.92	%		3.23	%		166	%
	2.81			4,395			1.75			3.45			2.00			3.20			285
	3.97			5,474			1.75			3.83			2.00			3.58			132
	11.46			13,576			1.75			4.46			2.01			4.20			91
	1.07			18,728			1.75			5.02			2.02			4.75			117
	10.06			22,608			1.65			6.45			2.11			5.99			187
	(0.74	)%	$	2,501			1.75	%		3.40	%		1.92	%		3.23	%		166	%
	2.71			2,858			1.75			3.46			2.00			3.21			285
	4.11			3,789			1.75			3.81			2.00			3.56			132
	11.50			5,752			1.75			4.43			2.01			4.17			91
	0.98			5,283			1.75			5.02			2.02			4.75			117
	10.10			5,209			1.50			6.07			1.94			5.63			187
	(0.44	)%	$	14			1.25	%		4.05	%		1.57	%		3.73	%		166	%
	3.40			3			1.25			3.98			1.65			3.58			285
	4.83			1			1.00			4.64			1.25			4.39			132
	12.25			2,668			1.00			5.21			1.26			4.95			91
	1.84			3,557			1.00			5.77			1.27			5.50			117
	0.81			3,237			0.89			7.60			1.36			7.13			187
	0.02	%	$	378,338			0.75	%		4.43	%		0.92	%		4.26	%		166	%
	3.83			278,777			0.75			4.43			1.00			4.18			285
	5.05			243,018			0.75			4.80			1.00			4.55			132
	12.65			245,877			0.75			5.42			1.01			5.16			91
	2.08			204,801			0.75			6.03			1.02			5.76			117
	11.09			185,392			0.51			7.26			0.95			6.82			187

First American Funds Annual Report 2006      73

Financial Highlights  continued

						Realized and
		Net Asset				Unrealized			Dividends						Net Asset
		Value		Net		Gains			from Net			Distributions			Value
		Beginning		Investment		(Losses) on			Investment			from Net			End of
		of Period		Income		Investments			Income			Realized Gains			Period
U.S. Government Mortgage Fund
Class A (1)
	2006 (2)(3)	$	10.53	$	0.33	$	(0.32	)	$	(0.36	)	$	—		$	10.18
	2005 (3)(4)		10.72		0.41		(0.14	)		(0.46	)		—			10.53
	2004 (3)(4)		10.89		0.38		(0.09	)		(0.46	)		—			10.72
	2003 (4)		11.16		0.35		(0.05	)		(0.45	)		(0.12	)		10.89
	2002 (4)		11.01		0.50		0.20			(0.55	)		—			11.16
	2001 (3)(5)		10.44		0.51		0.60			(0.54	)		—			11.01
Class B (1)
	2006 (2)(3)	$	10.54	$	0.27	$	(0.31	)	$	(0.30	)	$	—		$	10.20
	2005 (3)(4)		10.74		0.33		(0.15	)		(0.38	)		—			10.54
	2004 (3)(4)		10.90		0.30		(0.08	)		(0.38	)		—			10.74
	2003 (4)		11.18		0.28		(0.06	)		(0.38	)		(0.12	)		10.90
	2002 (4)		11.03		0.42		0.20			(0.47	)		—			11.18
	2001 (3)(5)		10.45		0.43		0.62			(0.47	)		—			11.03
Class C
	2006 (2)(3)	$	10.49	$	0.27	$	(0.31	)	$	(0.30	)	$	—		$	10.15
	2005 (3)(4)		10.68		0.33		(0.14	)		(0.38	)		—			10.49
	2004 (3)(4)		10.84		0.30		(0.09	)		(0.37	)		—			10.68
	2003 (4)		11.13		0.29		(0.08	)		(0.38	)		(0.12	)		10.84
	2002 (4)		11.00		0.46		0.15			(0.48	)		—			11.13
	2001 (3)(6)		10.98		0.05		(0.03	)		—			—			11.00
Class R (1)(7)
	2006 (2)(3)	$	10.51	$	0.31	$	(0.31	)	$	(0.34	)	$	—		$	10.17
	2005 (3)(4)		10.72		0.37		(0.14	)		(0.44	)		—			10.51
	2004 (3)(4)		10.85		0.39		(0.10	)		(0.42	)		—			10.72
	2003 (4)		11.12		0.30		—			(0.45	)		(0.12	)		10.85
	2002 (4)		10.97		0.49		0.20			(0.54	)		—			11.12
	2001 (3)(5)		10.40		0.62		0.49			(0.54	)		—			10.97
Class Y (1)
	2006 (2)(3)	$	10.53	$	0.35	$	(0.31	)	$	(0.38	)	$	—		$	10.19
	2005 (3)(4)		10.73		0.43		(0.14	)		(0.49	)		—			10.53
	2004 (3)(4)		10.89		0.41		(0.08	)		(0.49	)		—			10.73
	2003 (4)		11.16		0.37		(0.04	)		(0.48	)		(0.12	)		10.89
	2002 (4)		11.01		0.53		0.19			(0.57	)		—			11.16
	2001 (3)(5)		10.44		0.53		0.60			(0.56	)		—			11.01

(1)	The financial highlights for the U.S. Government Mortgage Fund prior to September 24, 2001, are those of the Firstar U. S. Government Securities Fund Class A shares, Class B shares, Class Y shares, and Class I shares. The assets of the Firstar U.S. Government Securities Fund were acquired by the U. S. Government Mortgage Fund on September 24, 2001. In connection with such acquisition, Class A shares, Class B shares, Class Y shares, and Class I shares of the Firstar U.S. Government Securities Fund were exchanged for Class A shares, Class B shares, Class S shares (now designated Class R shares), and Class Y shares of U.S. Government Mortgage Fund, respectively.
(2)	For the nine-month period October 1, 2005 to June 30, 2006. Effective in 2006, the fund’s fiscal year-end changed from September 30 to June 30. All ratios for the period have been annualized, except total return and portfolio turnover.
(3)	Per share data calculated using average shares outstanding method.
(4)	For the period October 1 to September 30 in the year indicated.
(5)	For the period November 1, 2000 to September 30, 2001. Effective in 2001, the fund’s fiscal year-end changed from October 31 to September 30. All ratios for the period have been annualized, except total return and portfolio turnover.
(6)	Class of shares has been offered since September 24, 2001. All ratios for the period ended September 30, 2001, have been annualized, except total return and portfolio turnover.
(7)	Prior to July 1, 2004, Class R shares were named Class S shares, which had lower fees and expenses.
(8)	Total return does not reflect sales charges. Total return would have been lower had certain expenses not been waived.

The accompanying notes are an integral part of the financial statements.

74      First American Funds Annual Report 2006

														Ratio of Net
											Ratio of			Investment
								Ratio of Net			Expenses to			Income to
					Ratio of			Investment			Average			Average Net
			Net Assets		Expenses to			Income			Net Assets			Assets			Portfolio
Total			End of		Average			to Average			(Excluding			(Excluding			Turnover
Return (8)			Period (000)		Net Assets			Net Assets			Waivers)			Waivers)			Rate
	0.09	%	$	16,059		0.95	%		4.27	%		1.11	%		4.11	%		220	%
	2.59			24,504		0.95			3.80			1.08			3.67			251
	2.74			32,815		0.95			3.53			1.05			3.43			127
	2.79			24,667		0.95			2.98			1.06			2.87			175
	6.53			16,985		0.95			4.61			1.08			4.48			197
	10.88			7,751		1.04			5.15			1.19			5.00			22
	(0.38	)%	$	6,595		1.70	%		3.52	%		1.86	%		3.36	%		220	%
	1.72			7,926		1.70			3.05			1.83			2.92			251
	2.02			9,155		1.70			2.79			1.80			2.69			127
	1.96			11,397		1.70			2.22			1.81			2.11			175
	5.79			6,235		1.70			3.85			1.83			3.72			197
	10.25			2,039		1.71			4.37			1.86			4.22			22
	(0.38	)%	$	5,127		1.70	%		3.52	%		1.86	%		3.36	%		220	%
	1.82			6,585		1.70			3.05			1.83			2.92			251
	2.02			10,520		1.70			2.79			1.80			2.69			127
	1.91			18,801		1.70			2.19			1.81			2.08			175
	5.78			5,834		1.70			3.92			1.83			3.79			197
	0.18			105		0.82			5.26			1.12			4.96			22
	0.04	%	$	7		1.20	%		4.04	%		1.51	%		3.73	%		220	%
	2.18			3		1.20			3.42			1.48			3.14			251
	2.74			1		0.95			3.58			1.05			3.48			127
	2.79			17,296		0.95			3.04			1.06			2.93			175
	6.55			21,355		0.95			4.59			1.08			4.46			197
	10.94			19,092		0.97			6.52			1.15			6.34			22
	0.38	%	$	140,407		0.70	%		4.52	%		0.86	%		4.36	%		220	%
	2.75			158,230		0.70			4.05			0.83			3.92			251
	3.09			171,143		0.70			3.79			0.80			3.69			127
	3.03			214,531		0.70			3.27			0.81			3.16			175
	6.79			181,046		0.70			4.84			0.83			4.71			197
	11.14			183,883		0.71			5.37			0.85			5.23			22

First American Funds Annual Report 2006      75

Notes to  Financial Statements June 30, 2006, all dollars are rounded to thousands (000)

1 > Organization

The Core Bond Fund, High Income Bond Fund, Inflation Protected Securities Fund, Intermediate Government Bond Fund, Intermediate Term Bond Fund, Short Term Bond Fund, Total Return Bond Fund, and U.S. Government Mortgage Fund (each a “fund” and collectively, the “funds”) are mutual funds offered by First American Investment Funds, Inc. (“FAIF”), which is a member of the First American Family of Funds. As of June 30, 2006, FAIF offered 38 funds, including the funds listed above. FAIF is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. FAIF’s articles of incorporation permit the funds’ board of directors to create additional funds in the future. Each fund is a diversified open-end management investment company.

FAIF offers Class A, Class B, Class C, Class R, and Class Y shares. Class A shares of Intermediate Government Bond Fund, Intermediate Term Bond Fund, and Short Term Bond Fund are sold with a front-end sales charge of 2.25%. Class A shares of Core Bond Fund, High Income Bond Fund, Inflation Protected Securities Fund, Total Return Bond Fund, and U.S. Government Mortgage Fund are sold with a front-end sales charge of 4.25%. Class B shares are subject to a contingent deferred sales charge for six years and automatically convert to Class A shares after eight years. Class C shares may be subject to a contingent deferred sales charge for 12 months, and will not convert to Class A shares. Class R shares have no sales charge and are offered only through certain tax-deferred retirement plans. Class Y shares have no sales charge and are offered only to qualifying institutional investors and certain other qualifying accounts. Class B, Class C, and Class R shares are not offered by Intermediate Government Bond Fund, Intermediate Term Bond Fund, or Short Term Bond Fund. Class B shares are not offered by Inflation Protected Securities Fund.

The funds’ prospectuses provide descriptions of each fund’s investment objective, principal investment strategies and principal risks. All classes of shares in a fund have identical voting, dividend, liquidation, and other rights, and the same terms and conditions, except that certain fees, including distribution and shareholder servicing fees, may differ among classes. Each class has exclusive voting rights on any matters relating to that class’ servicing or distribution arrangements.

On February 23, 2006, the funds’ board of directors approved a change in the funds’ fiscal year-end from September 30 to June 30, effective with the nine-month period ending June 30, 2006 (the “fiscal period”).

2 > Summary of Significant Accounting Policies

The significant accounting policies followed by the funds are as follows:

SECURITY VALUATIONS – Security valuations for the funds’ investments are furnished by an independent pricing service that has been approved by the funds’ board of directors. Investments in equity securities that are traded on a national securities exchange (or reported on the Nasdaq national market system) are stated at the last quoted sales price if readily available for such securities on each business day. For securities traded on the Nasdaq national market system, the funds utilize the Nasdaq Official Closing Price which compares the last trade to the bid/ask range of a security. If the last trade falls within the bid/ask range, then that price will be the closing price. If the last trade is outside the bid/ask range, and falls above the ask, the ask price will be the closing price. If the last trade is below the bid, the bid will be the closing price. Other equity securities traded in the over-the-counter market and listed equity securities for which no sale was reported on that date are stated at the last quoted bid price. Debt obligations exceeding 60 days to maturity are valued by an independent pricing service. The pricing service may employ methodologies that utilize actual market transactions, broker-dealer supplied valuations, or other formula driven valuation techniques. These techniques generally consider such factors as yields or prices of bonds of comparable quality, type of issue, coupon, maturity, ratings, and general market conditions. Securities for which prices are not available from an independent pricing service, but where an active market exists, are valued using market quotations obtained from one or more dealers that make markets in the securities or from a widely used quotation system. When market quotations are not readily available, securities are valued at fair value as determined in good faith by procedures established and approved by the funds’ board of directors. Some of the factors which may be considered in determining fair value are fundamental analytical data relating to the investment; the nature and duration of any restrictions on disposition; trading in similar securities of the same issuer or comparable companies; information from broker-dealers; and an evaluation of the forces that influence the market in which the securities are purchased and sold. If events occur that materially affect the value of securities (including non-U.S. securities) between the close of trading in those securities and the close of regular trading on the New York Stock Exchange, the securities will be valued at fair value. Price movements in futures contracts and ADRs (American Depositary Receipts), and various other indices, may be reviewed in the course of making a good faith determination of a security’s fair value. The use of fair value pricing by a fund may cause the net asset value of its shares to differ significantly from net asset value that would be calculated without regard to such considerations. As of June 30, 2006, Core Bond

76      First American Funds Annual Report 2006

Fund, High Income Bond Fund, and Short Term Bond Fund held fair value securities with a value of $438, $0, and $0, respectively, or 0.0%, 0.0% and 0.0% of total net assets, respectively. Debt obligations with 60 days or less remaining until maturity will be valued at their amortized cost, which approximates market value. Foreign securities are valued at the closing prices on the principal exchanges on which they trade. The prices for foreign securities are reported in local currency and converted to U.S. dollars using currency exchange rates. Exchange rates are provided daily by recognized independent pricing agents. Investments in open-end mutual funds are valued at the respective net asset value of each underlying fund on the valuation date.

SECURITY TRANSACTIONS AND INVESTMENT INCOME – For financial statement purposes, the funds record security transactions on the trade date of the security purchase or sale. Dividend income is recorded on the ex-dividend date. Interest income, including amortization of bond premium and discount, is recorded on an accrual basis. Security gains and losses are determined on the basis of identified cost, which is the same basis used for federal income tax purposes. The resulting gain/loss is calculated as the difference between the fair value and the underlying cost of the security on the transaction date. Each fund reserves the right to pay part or all of the proceeds from a redemption request in a proportionate share of readily marketable securities in the fund instead of cash.

DISTRIBUTIONS TO SHAREHOLDERS – Distributions from net investment income are declared and paid monthly and are payable in cash or reinvested in additional shares of the fund. Any net realized capital gains on sales of a fund’s securities are distributed to shareholders at least annually.

FEDERAL TAXES – Each fund is treated as a separate taxable entity. Each fund intends to continue to qualify as a regulated investment company as provided in Subchapter M of the Internal Revenue Code, as amended, and to distribute all taxable income, if any, to its shareholders. Accordingly, no provision for federal income taxes is required.

Net investment income and net realized gains (losses) may differ for financial statement and tax purposes because of temporary or permanent book/tax differences. These differences are primarily due to deferred wash sale and straddle losses, paydowns on pass through obligations, expiration of capital loss carryforwards and tax mark to market adjustments under Section 311(e) of the Taxpayer Relief Act of 1997. To the extent these differences are permanent, reclassifications are made to the appropriate equity accounts in the fiscal period that the differences arise.

On the Statement of Assets and Liabilities, the following reclassifications were made:

	Accumulated	Undistributed
	Net Realized	Net Investment	Portfolio
Fund	Gain (Loss)	Income	Capital
Core Bond Fund	$(2,373)	$2,357	$16
High Income Bond Fund	54	(54)	—
Inflation Protected Securities Fund	(12)	12	—
Intermediate Government Bond Fund	—	—	—
Intermediate Term Bond Fund	(464)	464	—
Short Term Bond Fund	(176)	781	(605)
Total Return Bond Fund	8,693	106	(8,799)
U.S. Government Mortgage Fund	(387)	387	—

The tax character of distributions made during the period from net investment income or net realized gains may differ from its ultimate characterization for federal income tax purposes. In addition, due to the timing of dividend distributions, the fiscal period which the amounts are distributed may differ from the year that the income or realized gains (losses) were recorded by the fund. The distributions paid during the fiscal period ended June 30, 2006 and the fiscal years ended September 30, 2005 and 2004, were as follows:

	2006
	Ordinary	Long Term	Return of
Fund	Income	Gain	Capital	Total
Core Bond Fund	$72,227	$—	$—	$72,227
High Income Bond Fund	13,528	—	—	13,528
Inflation Protected Securities Fund	13,028	—	—	13,028
Intermediate Government Bond Fund	1,834	186	—	2,020
Intermediate Term Bond Fund	35,774	—	—	35,774
Short Term Bond Fund	17,945	—	—	17,945
Total Return Bond Fund	11,516	—	—	11,516
U.S. Government Mortgage Fund	6,545	—	—	6,545

	2005
	Ordinary	Long Term	Return of
Fund	Income	Gain	Capital	Total
Core Bond Fund	$75,437	$1,274	$—	$76,711
High Income Bond Fund	19,672	—	20	19,692
Inflation Protected Securities Fund	7,327	—	—	7,327
Intermediate Government Bond Fund	3,179	4,927	—	8,106
Intermediate Term Bond Fund	42,052	11,785	—	53,837
Short Term Bond Fund	26,815	—	371	27,186
Total Return Bond Fund	12,462	—	—	12,462
U.S. Government Mortgage Fund	9,337	—	—	9,337

	2004
	Ordinary	Long Term	Return of
Fund	Income	Gain	Capital	Total
Core Bond Fund	$79,871	$32,065	$—	$111,936
High Income Bond Fund	20,894	—	—	20,894
Intermediate Government Bond Fund	7,590	27,610	—	35,200
Intermediate Term Bond Fund	43,278	14,419	—	57,697
Short Term Bond Fund	25,252	—	—	25,252
Total Return Bond Fund	13,105	—	19	13,124
U.S. Government Mortgage Fund	11,561	—	—	11,561

First American Funds Annual Report 2006      77

Notes to  Financial Statements continued

As of June 30, 2006, the components of accumulated earnings (deficit) on a tax basis were:

		Accumulated
	Undistributed	Capital and		Other	Total
	Ordinary	Post-October	Unrealized	Accumulated	Accumulated
Fund	Income	Losses	Depreciation	Gains (Losses)	Deficit
Core Bond Fund	$1,898	$(24,544)	$(61,629)	$(11)	$(84,286)
High Income Bond Fund	172	(6,600)	(5,460)	(1)	(11,889)
Inflation Protected Securities Fund	1,368	(2,416)	(16,404)	(66)	(17,518)
Intermediate Government Bond Fund	34	(1,541)	(1,360)	—	(2,867)
Intermediate Term Bond Fund	973	(16,237)	(27,915)	(15)	(43,194)
Short Term Bond Fund	256	(15,295)	(12,685)	(194)	(27,918)
Total Return Bond Fund	597	(14,563)	(11,117)	(6)	(25,089)
U.S. Government Mortgage Fund	22	(6,367)	(6,435)	—	(12,780)

The difference between book and tax basis unrealized appreciation (depreciation) is primarily due to the tax deferral of losses on wash sales and straddles, tax mark to market adjustments for certain derivatives in accordance with IRC Section 1256, and tax mark to market adjustments made under Section 311(e) of the Taxpayer Relief Act of 1997.

As of June 30, 2006, the following funds had capital loss carryforwards, which, if not offset by subsequent capital gains, will expire on the fund’s fiscal year-ends as follows:

	Expiration Year
Fund	2007	2008	2009	2010	2011	2012	2013	2014	Total
Core Bond Fund	$—	$—	$—	$—	$—	$—	$—	$3,584	$3,584
High Income Bond Fund	—	—	—	—	6,600	—	—	—	6,600
Inflation Protected Securities Fund	—	—	—	—	—	—	—	256	256
Intermediate Government Bond Fund	—	—	—	—	—	—	—	134	134
Intermediate Term Bond Fund	—	—	—	—	—	—	—	6,285	6,285
Short Term Bond Fund	135	642	—	—	4	—	2,223	8,101	11,105
Total Return Bond Fund	7,439	—	—	—	3,708	—	—	472	11,619
U.S. Government Mortgage Fund	—	—	—	—	—	3,145	1,293	555	4,993

In accordance with Section 382 of the Internal Revenue Code, utilization of all or a portion of the above capital loss carryforwards is limited on an annual basis for Total Return Bond Fund to $7,439 for the current tax year. For the year ended June 30, 2006, Short-Term Bond Fund and Total Return Bond Fund, had capital loss carryforwards of $604 and $8,799, respectively, that expired unused.

Certain funds incurred a loss for tax purposes for the period from November 1, 2005 to June 30, 2006. As permitted by tax regulations, the funds intend to elect to defer and treat these losses as arising in the fiscal year ending June 30, 2007. The following funds had deferred losses:

Fund	Amount
Core Bond Fund	$20,960
Inflation Protected Securities Fund	2,160
Intermediate Government Bond Fund	1,407
Intermediate Term Bond Fund	9,952
Short Term Bond Fund	4,190
Total Return Bond Fund	2,944
U.S. Government Mortgage Fund	1,373

FUTURES TRANSACTIONS – In order to protect against changes in the market and to maintain sufficient liquidity to meet redemption requests, each fund may enter into futures contracts. Upon entering into a futures contract, the fund is required to deposit cash or pledge U.S. Government securities. The margin required for a futures contract is set by the exchange on which the contract is traded. Subsequent payments, which are dependent on the daily fluctuations in the value of the underlying security or securities, are made or received by the fund each day (daily variation margin) and are recorded as unrealized gains (losses) until the contract is closed. When the contract is closed, the fund records a realized gain (loss) equal to the difference between the proceeds from (or cost of) the closing transaction and the fund’s basis in the contract.

Risks of entering into futures contracts, in general, include the possibility that there will not be a perfect price correlation between the futures contracts and the underlying securities. Second, it is possible that a lack of liquidity for futures contracts could exist in the secondary market, resulting in an inability to close a futures position prior to its maturity date. Third, the purchase of a futures contract involves the risk that a fund could lose more than the original margin deposit required to initiate a futures transaction. These contracts involve market risk in excess of the amount reflected in the fund’s statement of assets and liabilities. Unrealized gains (losses) on outstanding positions in futures contracts held at the close of the year will be recognized as capital gains (losses) for federal income tax purposes.

As of June 30, 2006 the following funds had outstanding futures contracts: Core Bond Fund, High Income Bond Fund, Inflation Protected Securities Fund, Intermediate Term Bond Fund, Short Term Bond Fund, Total Return Bond Fund and U.S. Government Mortgage Fund.

78      First American Funds Annual Report 2006

OPTIONS TRANSACTIONS – The funds may utilize options in an attempt to manage market or business risk or enhance their yield. When a call or put option is written, an amount equal to the premium received is recorded as a liability. The liability is marked-to-market daily to reflect the current market value of the option written. When a written option expires, a gain is realized in the amount of the premium originally received. If a closing purchase contract is entered into, a gain or loss is realized in the amount of the original premium less the cost of the closing transaction. If a written call is exercised, a gain or loss is realized from the sale of the underlying security, and the proceeds from such sale are increased by the premium originally received. If a written put option is exercised, the amount of the premium originally received reduces the cost of the security that is purchased upon exercise of the option. As of June 30, 2006, the funds did not hold any written options.

Purchased options are recorded as investments and marked-to-market daily to reflect the current market value of the option contract. If a purchased option expires, a loss is realized in the amount of the cost of the option. If a closing transaction is entered into, a gain or loss is realized, to the extent that the proceeds from the sale are greater or less than the cost of the option. If a put option is exercised, a gain or loss is realized from the sale of the underlying security by adjusting the proceeds from such sale by the amount of the premium originally paid. If a call option is exercised, the cost of the security purchased upon exercise is increased by the premium originally paid.

INFLATION-INDEXED BONDS – The funds may invest in inflation-indexed bonds. Inflation-indexed bonds are fixed income securities whose principal value is periodically adjusted to the rate of inflation. The interest rate on these bonds is generally fixed at issuance at a rate lower than typical bonds. Over the life of an inflation-indexed bond however, interest will be paid based on a principal value which is adjusted for inflation. Any increase in the principal amount of an inflation-indexed bond will be included as interest income in the Statement of Operations, even though investors do not receive their principal until maturity.

FOREIGN CURRENCY TRANSLATION – The books and records of the Inflation Protected Securities Fund and the Total Return Bond Fund relating to the funds’ non-U.S. dollar denominated investments are maintained in U.S. dollars on the following basis:

•  market value of investment securities, assets, and liabilities are translated at the current rate of exchange; and

•  purchases and sales of investment securities, income, and expenses are translated at the relevant rates of exchange prevailing on the respective dates of such transactions.

The funds do not isolate the portion of gains and losses on investments in debt securities that is due to changes in the foreign exchange rates from that which is due to changes in market prices of debt securities. The funds do isolate the effect of fluctuations in foreign currency rates when determining the gain or loss upon sale or maturity of foreign currency denominated debt obligations pursuant to the federal income tax regulations. Such amounts are categorized as foreign currency gain(loss) for both financial reporting and income tax reporting purposes.

The funds report certain foreign currency-related transactions as components of realized gains for financial reporting purposes, whereas such components are treated as ordinary income for federal income tax purposes.

For the fiscal period ended June 30, 2006, the Inflation Protected Securities Fund and Total Return Bond Fund did not have any non-U.S. dollar denominated investments.

SECURITIES PURCHASED ON A WHEN-ISSUED BASIS – Delivery and payment for securities that have been purchased by a fund on a when-issued or forward-commitment basis can take place up to a month or more after the transaction date. Such securities do not earn interest, are subject to market fluctuation, and may increase or decrease in value prior to their delivery. Each fund segregates assets with a market value equal to or greater than the amount of each fund’s purchase commitments. The purchase of securities on a when-issued or forward-commitment basis may increase the volatility of a fund’s net asset value if the fund makes such purchases while remaining substantially fully invested. At June 30, 2006, the following funds had outstanding when-issued commitments:

			Segregated
Fund	Cost		Assets
Core Bond Fund	$	95,795	$	610,605
Total Return Bond Fund		16,064		190,562
U.S. Government Mortgage Fund		47,445		124,695

In connection with the ability to purchase securities on a when-issued basis, each fund may also enter into dollar rolls in which the fund sells securities purchased on a forward-commitment basis and simultaneously contracts with a counterparty to repurchase similar (same type, coupon, and maturity), but not identical securities on a specified future date. As an inducement for the fund to “rollover” its purchase commitments, the fund receives negotiated amounts in the form of reductions of the purchase price of the commitment. Dollar rolls are considered a form of leverage. As of June 30, 2006, the funds had no outstanding dollar roll transactions.

ILLIQUID OR RESTRICTED SECURITIES – A security may be considered illiquid if it lacks a readily available market. Securities are generally considered liquid if they can be sold or disposed of in the ordinary course of business

First American Funds Annual Report 2006      79

Notes to  Financial Statements continued

within seven days at approximately the price at which the security is valued by the fund. Illiquid securities may be valued under methods approved by the funds’ board of directors as reflecting fair value. Each fund intends to invest no more than 15% of its net assets (determined at the time of purchase and reviewed periodically) in illiquid securities. Certain restricted securities may be considered illiquid. Restricted securities are often purchased in private placement transactions, are not registered under the Securities Act of 1933, may have contractual restrictions on resale, and may be valued under methods approved by the funds’ board of directors as reflecting fair value. Certain restricted securities eligible for resale to qualified institutional investors, including Rule 144A securities, are not subject to the limitation on a funds’ investment in illiquid securities if they are determined to be liquid in accordance with procedures adopted by the funds’ board of directors. At June 30, 2006, Core Bond Fund, High Income Bond Fund, and Short Term Bond Fund had investments in illiquid securities with a total value of $438, $11, and $0, respectively, or 0.0%, 0.0%, and 0.0%, respectively, of total net assets.

Information concerning illiquid securities, including restricted securities considered to be illiquid, is as follows:

Core Bond Fund
Security	Par	Dates Acquired	Cost Basis
Duty Free International	$2,191	1/99-7/99	$2,187

	Shares/
High Income Bond Fund Security	Par (000)	Dates Acquired	Cost Basis
Glenoit	$100	3/97-8/97	$100
Green Tree Financial	11	5/99	11
Mid America Waste Systems	250	3/03	—
Pegasus Communications, Fractional Shares	15,109	10/97	—
Sullivan Broadcast Holdings, Escrow Shares	400	3/03	—

Short Term Bond Fund Security	Par	Dates Acquired	Cost Basis
Auto Bond Receivables Trust	$106	11/98-11/00	$106

SECURITIES LENDING – In order to generate additional income, a fund may lend securities representing up to one-third of the value of its total assets (which includes collateral for securities on loan) to broker-dealers, banks, or other institutional borrowers of securities. Each fund’s policy is to maintain collateral in the form of cash, U.S. Government securities, or other high-grade debt obligations equal to at least 100% of the value of securities loaned. The collateral is then marked-to- market daily until the securities are returned. As with other extensions of credit, there may be risks of delay in recovery of the securities or even loss of rights in the collateral should the borrower of the security fail financially. Cash collateral is invested in short-term, high quality U.S. dollar-denominated securities that would be eligible for investment by a money market fund under Investment Company Act Rule 2a-7. As of June 30, 2006, cash collateral was invested as follows:

							Other
	Commercial		Corporate		Repurchase		Short-Term
Fund	Paper		Obligations		Agreements		Securities		Total
Core Bond Fund	$	272,275	$	252,208	$	278,376	$	15,093	$	817,952
High Income Bond Fund		15,553		14,407		15,901		862		46,723
Inflation Protected Securities Fund		52,545		48,673		53,723		2,912		157,853
Intermediate Term Bond Fund		113,441		105,080		115,983		6,289		340,793
Short Term Bond Fund		59,922		55,505		61,264		3,322		180,013
Total Return Bond Fund		42,748		39,598		43,706		2,370		128,422
U.S. Government Mortgage Fund		21,810		20,203		22,299		1,209		65,521

FAF Advisors, Inc. (“FAF Advisors”), formerly known as U.S. Bancorp Asset Management, Inc., serves as the securities lending agent for the funds in transactions involving the lending of portfolio securities on behalf of the funds. FAF Advisors acts as the securities lending agent pursuant to, and subject to compliance with conditions contained in an exemptive order issued by the Securities and Exchange Commission (“SEC”). Effective January 1, 2006, FAF Advisors receives fees equal to 32% of each fund’s income from securities lending transactions. Prior to January 1, 2006, such fees were 35% of each fund’s income from security lending transactions. Fees paid to FAF Advisors by the funds for the fiscal period ended June 30, 2006 were as follows:

Fund	Amount
Core Bond Fund		$460
High Income Bond Fund		33
Inflation Protected Securities Fund		60
Intermediate Term Bond Fund		293
Short Term Bond Fund		59
Total Return Bond Fund		64
U.S. Government Mortgage Fund		13

Income from securities lending is recorded on the Statement of Operations as securities lending income net of fees paid to FAF Advisors.

80      First American Funds Annual Report 2006

SWAP AGREEMENTS – The funds may invest in swap agreements. A swap is an agreement to exchange the return generated by one instrument for the return generated by another instrument. The funds may enter into interest rate and credit default swap agreements to manage exposure to interest rates and credit risk.

Interest rate swap agreements involve the exchange by the fund with another party of their respective commitments to pay or receive interest (i.e., an exchange of floating rate payments for fixed rate payments), with respect to the notional amount of principal. As of June 30, 2006, the following funds had outstanding interest rate swap agreements: Core Bond Fund, Inflation Protected Securities Fund, Intermediate Term Bond Fund, Short Term Bond Fund, Total Return Bond Fund, and U.S. Government Bond Fund.

In a credit default swap, one party makes a stream of payments to another party in exchange for the right to receive a specified return in the event of a default by a specified issuer on its obligation (typically corporate issues or sovereign issues of an emerging country). The fund may use credit default swaps to provide a measure of protection against defaults of sovereign issuers (i.e., to reduce risk where the fund owns or has exposure to the sovereign issuer) or to take an active long or short position with respect to the likelihood of a particular issuer’s default. As of June 30, 2006, the following funds had outstanding credit default swap agreements: Core Bond Fund, High Income Bond Fund, Inflation Protected Securities Bond Fund, Intermediate Term Bond Fund, and Total Return Bond Fund.

Swaps are marked-to-market daily based upon quotations from market makers and the change in value, if any, is recorded as unrealized gain or loss in the Statement of Operations. Payments received or made at the beginning of the measurement period are reflected on the Statement of Assets and Liabilities. A liquidation payment received or made at the termination of the swap is recorded as realized gain or loss in the Statement of Operations. Net periodic payments received by the fund are included as part of miscellaneous income on the Statement of Operations. Entering into these agreements involves, to varying degrees, elements of credit, market and documentation risk in excess of the amounts recognized on the Statement of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreements may default on its obligation to perform or disagree as to the meaning of contractual terms in the agreements, and that there may be unfavorable changes in interest rates.

EXPENSES – Expenses that are directly related to one of the funds are charged directly to that fund. Other operating expenses are allocated to the funds on several bases, including relative net assets of all funds within the First American Family of Funds. Class specific expenses, such as distribution fees and shareholder servicing fees, are borne by that class. Income, other expenses, and realized and unrealized gains and losses of a fund are allocated to each respective class in proportion to the relative net assets of each class.

INTERFUND LENDING PROGRAM – Pursuant to an exemptive order issued by the SEC, the funds, along with other registered investment companies in the First American Family of Funds, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating funds. The funds did not have any interfund lending transactions during the fiscal period ended June 30, 2006.

DEFERRED COMPENSATION PLAN – Under a Deferred Compensation Plan (the “Plan”), non-interested directors of the First American Family of Funds may participate and elect to defer receipt of part or all of their annual compensation. Deferred amounts are treated as though equivalent dollar amounts had been invested in shares of selected open-end First American Funds as designated by the Directors. All amounts in the Plan are 100% vested and accounts under the Plan are obligations of the funds. Deferred amounts remain in the funds until distributed in accordance with the Plan.

USE OF ESTIMATES IN THE PREPARATION OF FINANCIAL STATEMENTS – The preparation of financial statements, in conformity with U.S. generally accepted accounting principles, requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported results of operations during the reporting period. Actual results could differ from those estimates.

3 > Fees and Expenses

INVESTMENT ADVISORY FEES – Pursuant to an investment advisory agreement (the “Agreement”), FAF Advisors, manages each fund’s assets and furnishes related office facilities, equipment, research, and personnel. The Agreement requires each fund to pay FAF Advisors a monthly fee based upon average daily net assets. The annual fee for each fund is as follows:

Fund
Core Bond Fund	0.50	%
High Income Bond Fund	0.70
Inflation Protected Securities Fund	0.50
Intermediate Government Bond Fund	0.50
Intermediate Term Bond Fund	0.50
Short Term Bond Fund	0.50
Total Return Bond Fund	0.60
U.S. Government Mortgage Fund	0.50

First American Funds Annual Report 2006      81

Notes to  Financial Statements continued

FAF Advisors has agreed to waive fees and reimburse other fund expenses at least through June 30, 2007, so that total fund operating expenses, as a percentage of average daily net assets, do not exceed the following amounts:

	Share Class
Fund	A			B			C			R			Y
Core Bond Fund		0.95	%		1.70	%		1.70	%		1.20	%		0.70	%
High Income Bond Fund		1.10			1.85			1.85			1.35			0.85
Inflation Protected Securities Fund		0.85			NA			1.60			1.10			0.60
Intermediate Government Bond Fund		0.75			NA			NA			NA			0.60
Intermediate Term Bond Fund*		0.85			NA			NA			NA			0.70
Short Term Bond Fund		0.75			NA			NA			NA			0.60
Total Return Bond Fund		1.00			1.75			1.75			1.25			0.75
U.S. Government Mortgage Fund		0.95			1.70			1.70			1.20			0.70

NA = Not Applicable

*  Effective July 1, 2006. Prior to July 1, 2006, total operating expenses for Intermediate Term Bond Fund were capped at 0.75% and 0.60% for Class A and Y, respectively.

The funds may invest in related money market funds that are series of First American Funds, Inc., subject to certain limitations. In order to avoid the payment of duplicative investment advisory fees to FAF Advisors, which acts as the investment advisor to both the investing funds and the related money market funds, FAF Advisors will reimburse each investing fund an amount equal to that portion of FAF Advisors’ investment advisory fee received from the related money market funds that is attributable to the assets of the investing fund. For financial statement purposes, these reimbursements are recorded as investment income.

ADMINISTRATION FEES – FAF Advisors serves as the funds’ administrator pursuant to an administration agreement between FAF Advisors and the funds. U.S. Bancorp Fund Services, LLC (“USBFS”) serves as sub-administrator pursuant to a sub-administration agreement between USBFS and FAF Advisors. FAF Advisors is a subsidiary of U.S. Bank National Association (“U.S. Bank”). Both U.S. Bank and USBFS are direct subsidiaries of U.S. Bancorp. Under the administration agreement, FAF Advisors is compensated to provide, or compensates other entities to provide, services to the funds. These services include various legal, oversight and administrative services and accounting services. The funds pay FAF Advisors administration fees which are calculated daily and paid monthly. Prior to July 1, 2006, such fees were equal to each fund’s pro rata share of an amount equal, on an annual basis, to 0.15% of the aggregate average daily net assets of all open-end mutual funds in the First American Family of Funds up to $8 billion, 0.135% on the next $17 billion of the aggregate average daily net assets, 0.12% on the next $25 billion of the aggregate average daily net assets, and 0.10% of the aggregate average daily net assets in excess of $50 billion. All fees paid to the sub-administrator are paid from the administration fee. In addition to these fees, the funds may reimburse FAF Advisors and the sub-administrator for any out-of-pocket expenses incurred in providing administration services.

Prior to July 1, 2006, as part of the transfer agent fee, FAIF paid USBFS a fee equal, on an annual basis, to 0.10% of each fund’s average daily net assets, to compensate USBFS for providing certain shareholder services and reimbursed USBFS for its payments to financial institutions that establish and maintain omnibus accounts and provide customary services for such accounts. Effective July 1, 2006, this fee was incorporated into the administration fee which, as a result, on an annual basis, is 0.25% of the aggregate average daily net assets of all open-end mutual funds in the First American Family of Funds, up to $8 billion, 0.235% on the next $17 billion of the aggregate average daily net assets, 0.22% on the next $25 billion of the aggregate average daily net assets, and 0.20% of the aggregate average daily net assets in excess of $50 billion.

For the fiscal period ended June 30, 2006, administration fees paid to FAF Advisors by the funds included in this annual report were as follows:

Fund	Amount
Core Bond Fund	$	1,773
High Income Bond Fund		245
Inflation Protected Securities Fund		286
Intermediate Government Bond Fund		54
Intermediate Term Bond Fund		966
Short Term Bond Fund		597
Total Return Bond Fund		340
U.S. Government Mortgage Fund		173

TRANSFER AGENT FEES – USBFS serves as the funds’ transfer agent pursuant to a transfer agent agreement with FAIF. For the period from July 1, 2005 to July 1, 2006, FAIF paid transfer agent fees of $18,500 per share class and additional per account fees for transfer agent services. These fees were allocated to each fund based upon the fund’s pro rata share of the aggregate average daily net assets of the funds that comprise FAIF. Under the transfer agent agreement, FAIF also paid USBFS a fee equal, on an annual basis, to 0.10% of each fund’s average daily net assets. This fee was intended to compensate USBFS for providing certain shareholder services and to reimburse USBFS for its payments to financial institutions that establish and maintain omnibus accounts and provide customary services for such accounts. In addition to these fees, the funds reimbursed USBFS for out-of-pocket expenses incurred in providing transfer agent services. Prior to July 1, 2005, this 0.10% fee was included in the administration fee.

Effective July 1, 2006, FAIF will be charged transfer agent fees on a per shareholder account basis, subject to a minimum fee per share class. These fees will be charged to each fund based on the number of accounts within that

82      First American Funds Annual Report 2006

fund. As noted above, effective July 1, 2006, the 0.10% fee for shareholder services and payments to financial institutions was incorporated into the administration fee. The $18,500 per share class fee that was charged in addition to per account fees has been eliminated. Funds will continue to reimburse USBFS for out-of-pocket expenses incurred in providing transfer agent services.

For the fiscal period ended June 30, 2006, transfer agent fees paid to USBFS by the funds included in this annual report were as follows:

Fund	Amount
Core Bond Fund	$	1,905
High Income Bond Fund		263
Inflation Protected Securities Fund		307
Intermediate Government Bond Fund		58
Intermediate Term Bond Fund		1,038
Short Term Bond Fund		641
Total Return Bond Fund		365
U.S. Government Mortgage Fund		186

CUSTODIAN FEES – U.S. Bank serves as the funds’ custodian pursuant to a custodian agreement with FAIF. The custodian fee charged for each fund is equal to an annual rate of 0.005% of average daily net assets. Prior to July 1, 2005, the fee for each fund was annual rate of 0.01% of average daily net assets. All fees are computed daily and paid monthly.

Under the custodian agreement, interest earned on uninvested cash balances is used to reduce a portion of each fund’s custodian expenses. These credits, if any, are disclosed as “Indirect payments from custodian” in the Statements of Operations. Conversely, the custodian charges a fee for any cash overdrafts incurred which will increase the fund’s custodian expenses.

For the fiscal period ended June 30, 2006, custodian fees were increased as a result of overdrafts, and decreased as a result of interest earned as follows:

Fund	Increased			Decreased
Core Bond Fund	$	—		$	55
High Income Bond Fund		2			2
Inflation Protected Securities Fund		2			1
Intermediate Government Bond Fund		—	*		2
Intermediate Term Bond Fund		—			47
Short Term Bond Fund		—	*		14
Total Return Bond Fund		7			7
U.S. Government Mortgage Fund		1			1

*  Rounds to zero.

DISTRIBUTION AND SHAREHOLDER SERVICING FEES – Quasar Distributors, LLC (“Quasar”), a subsidiary of U.S. Bancorp, serves as the distributor of the funds pursuant to a distribution agreement with FAIF. Under the distribution agreement, and pursuant to a plan adopted by each fund under rule 12b-1 of the Investment Company Act, each fund pays Quasar a monthly distribution and/or shareholder servicing fee equal to an annual rate of 0.25%, 1.00%, 1.00% and 0.50% of each fund’s average daily net assets of the Class A shares, Class B shares, Class C shares, and Class R shares, respectively. No distribution or shareholder servicing fees are paid by Class Y shares. These fees may be used by Quasar to provide compensation for sales support, distribution activities, or shareholder servicing activities.

Quasar is currently waiving fees equal to an annual rate of 0.10% of average daily net assets for Class A shares of the Intermediate Government Bond Fund, Intermediate Term Bond Fund, and Short Term Bond Fund.

For the fiscal period ended June 30, 2006, total distribution and shareholder servicing fees waived by Quasar for the funds included in this annual report were as follows:

Fund	Amount
Intermediate Government Bond Fund	$	1
Intermediate Term Bond Fund		32
Short Term Bond Fund		66

FAIF has also adopted and entered into a shareholder servicing plan and agreement with FAF Advisors with respect to the Class R shares. Core Bond Fund, High Income Bond Fund, Inflation Protected Securities Fund, Total Return Bond Fund, and U.S. Government Mortgage Fund pay FAF Advisors a monthly shareholder servicing fee equal to an annual rate of 0.15% of each fund’s average daily net assets of the Class R shares. FAF Advisors is currently waiving all fees under this plan and agreement. This waiver may be discontinued at any time.

Under these distribution and shareholder servicing agreements, the following amounts were retained by affiliates of FAF Advisors for the fiscal period ended June 30, 2006:

Fund	Amount
Core Bond Fund	$	240
High Income Bond Fund		45
Inflation Protected Securities Fund		16
Intermediate Government Bond Fund		2
Intermediate Term Bond Fund		34
Short Term Bond Fund		60
Total Return Bond Fund		39
U.S. Government Mortgage Fund		57

OTHER EXPENSES – In addition to the investment advisory fees, administration fees, transfer agent fees, custodian fees, and distribution and shareholder servicing fees, each fund is responsible for paying other operating expenses, including: legal, auditing, registration fees, postage and printing of shareholder reports, fees and expenses of independent directors, insurance, and other miscellaneous expenses. For the fiscal period ended June 30, 2006, legal fees and expenses of $35 were paid to a law firm of which an Assistant Secretary of the funds is a partner.

CONTINGENT DEFERRED SALES CHARGES – A contingent deferred sales charge (“CDSC”) is imposed on redemptions made in the Class B shares. The CDSC varies

First American Funds Annual Report 2006      83

Notes to  Financial Statements continued

depending on the number of years from time of payment for the purchase of Class B shares until the redemption of such shares.

Class B shares automatically convert to Class A shares after eight years.

	Contingent Deferred Sales Charge
	as a Percentage of Dollar
Year Since Purchase	Amount Subject to Charge
First	5.00%
Second	5.00
Third	4.00
Fourth	3.00
Fifth	2.00
Sixth	1.00
Seventh	0.00
Eighth	0.00

A CDSC of 1.00% is imposed on redemptions made in Class C shares for the first 12 months.

The CDSC for Class B and Class C shares is imposed on the value of the purchased shares, or the value at the time of redemption, whichever is less.

For the fiscal period ended June 30, 2006, total front-end sales charges and CDSCs retained by affiliates of FAF Advisors for distributing the funds’ shares were as follows:

Fund	Amount
Core Bond Fund	$	78
High Income Bond Fund		60
Inflation Protected Securities Fund		9
Intermediate Government Bond Fund		—
Intermediate Term Bond Fund		7
Short Term Bond Fund		10
Total Return Bond Fund		25
U.S. Government Mortgage Fund		53

4 > Capital Share Transactions

FAIF has 324 billion shares of $0.0001 par value capital stock authorized. Capital share transactions for the funds were as follows:

		Core									High Income									Inflation Protected
		Bond Fund									Bond Fund									Securities Fund
		Fiscal									Fiscal									Fiscal
		Period			Year			Year			Period			Year			Year			Period			Year
		Ended			Ended			Ended			Ended			Ended			Ended			Ended			Ended
		6/30/06			9/30/05			9/30/04			6/30/06			9/30/05			9/30/04			6/30/06			9/30/05
Class A:
	Shares issued		1,251			2,069			5,711			777			702			1,128			89			759
	Shares issued in lieu of cash distributions		366			456			642			131			210			252			21			10
	Shares redeemed		(3,497	)		(4,450	)		(6,534	)		(1,329	)		(1,924	)		(1,343	)		(265	)		(86	)
Total Class A transactions			(1,880	)		(1,925	)		(181	)		(421	)		(1,012	)		37			(155	)		683
Class B:
	Shares issued		36			90			175			52			80			251			—			—
	Shares issued in lieu of cash distributions		41			46			85			19			32			39			—			—
	Shares redeemed		(320	)		(474	)		(825	)		(186	)		(250	)		(368	)		—			—
Total Class B transactions			(243	)		(338	)		(565	)		(115	)		(138	)		(78	)		—			—
Class C:
	Shares issued		46			79			119			67			55			222			16			87
	Shares issued in lieu of cash distributions		17			21			43			49			87			119			3			2
	Shares redeemed		(231	)		(259	)		(514	)		(470	)		(555	)		(662	)		(46	)		(4	)
Total Class C transactions			(168	)		(159	)		(352	)		(354	)		(413	)		(321	)		(27	)		85
Class R:
	Shares issued		2			1			559			8			4			33			—			—
	Shares issued in lieu of cash distributions		—			—			117			—			—			2			—			—
	Shares redeemed		—			—			(4,070	)		—			(5	)		(119	)		—			—
Total Class R transactions			2			1			(3,394	)		8			(1	)		(84	)		—			—
Class Y:
	Shares issued		33,967			35,837			34,846			5,066			7,861			10,084			10,606			29,019
	Shares issued in lieu of cash distributions		2,008			1,987			3,549			155			209			251			362			207
	Shares redeemed		(33,812	)		(37,508	)		(53,065	)		(5,008	)		(10,853	)		(5,149	)		(4,262	)		(2,631	)
Total Class Y transactions			2,163			316			(14,670	)		213			(2,783	)		5,186			6,706			26,595
Net increase (decrease) in capital shares			(126	)		(2,105	)		(19,162	)		(669	)		(4,347	)		4,740			6,524			27,363

84      First American Funds Annual Report 2006

		Intermediate Government									Intermediate Term									Short Term
		Bond Fund									Bond Fund									Bond Fund
		Fiscal									Fiscal									Fiscal
		Period			Year			Year			Period			Year			Year			Period			Year			Year
		Ended			Ended			Ended			Ended			Ended			Ended			Ended			Ended			Ended
		6/30/06			9/30/05			9/30/04			6/30/06			9/30/05			9/30/04			6/30/06			9/30/05			9/30/04
Class A:
	Shares issued		38			154			88			526			856			2,566			209			632			2,907
	Shares issued in lieu of cash distributions		5			16			25			132			202			195			194			251			252
	Shares redeemed		(71	)		(143	)		(151	)		(1,549	)		(2,379	)		(4,118	)		(2,246	)		(3,940	)		(5,787	)
Total Class A transactions			(28	)		27			(38	)		(891	)		(1,321	)		(1,357	)		(1,843	)		(3,057	)		(2,628	)
Class B:
	Shares issued		—			—			—			—			—			—			—			—			—
	Shares issued in lieu of cash distributions		—			—			—			—			—			—			—			—			—
	Shares redeemed		—			—			—			—			—			—			—			—			—
Total Class B transactions			—			—			—			—			—			—			—			—			—
Class C:
	Shares issued		—			—			—			—			—			—			—			—			—
	Shares issued in lieu of cash distributions		—			—			—			—			—			—			—			—			—
	Shares redeemed		—			—			—			—			—			—			—			—			—
Total Class C transactions			—			—			—			—			—			—			—			—			—
Class R:
	Shares issued		—			—			—			—			—			430			—			—			186
	Shares issued in lieu of cash distributions		—			—			—			—			—			31			—			—			9
	Shares redeemed		—			—			—			—			—			(1,635	)		—			—			(1,045	)
Total Class R transactions			—			—			—			—			—			(1,174	)		—			—			(850	)
Class Y:
	Shares issued		873			1,733			2,458			14,632			24,296			37,708			7,298			14,851			45,435
	Shares issued in lieu of cash distributions		82			514			3,028			1,336			2,038			2,280			572			791			709
	Shares redeemed		(4,004	)		(8,559	)		(24,241	)		(30,661	)		(37,799	)		(44,985	)		(24,595	)		(45,948	)		(33,963	)
Total Class Y transactions			(3,049	)		(6,312	)		(18,755	)		(14,693	)		(11,465	)		(4,997	)		(16,725	)		(30,306	)		12,181
Net increase (decrease) in capital shares			(3,077	)		(6,285	)		(18,793	)		(15,584	)		(12,786	)		(7,528	)		(18,568	)		(33,363	)		8,703

		Total Return									U.S. Government
		Bond Fund									Mortgage Fund
		Fiscal									Fiscal
		Period			Year			Year			Period			Year			Year
		Ended			Ended			Ended			Ended			Ended			Ended
		6/30/06			9/30/05			9/30/04			6/30/06			9/30/05			9/30/04
Class A:
	Shares issued		217			243			1,206			123			496			1,742
	Shares issued in lieu of cash distributions		43			67			61			58			103			97
	Shares redeemed		(563	)		(484	)		(536	)		(932	)		(1,331	)		(1,045	)
Total Class A transactions			(303	)		(174	)		731			(751	)		(732	)		794
Class B:
	Shares issued		10			24			68			31			69			119
	Shares issued in lieu of cash distributions		8			12			27			18			26			29
	Shares redeemed		(79	)		(138	)		(890	)		(155	)		(196	)		(341	)
Total Class B transactions			(61	)		(102	)		(795	)		(106	)		(101	)		(193	)
Class C:
	Shares issued		12			9			32			6			29			104
	Shares issued in lieu of cash distributions		6			10			17			15			27			47
	Shares redeemed		(46	)		(108	)		(242	)		(144	)		(413	)		(900	)
Total Class C transactions			(28	)		(89	)		(193	)		(123	)		(357	)		(749	)
Class R:
	Shares issued		1			—			9			1			—			140
	Shares issued in lieu of cash distributions		—			—			5			—			—			33
	Shares redeemed		—			—			(275	)		—			—			(1,768	)
Total Class R transactions			1			—			(261	)		1			—			(1,595	)
Class Y:
	Shares issued		21,351			9,193			5,441			1,917			3,291			4,048
	Shares issued in lieu of cash distributions		171			159			160			85			91			101
	Shares redeemed		(10,524	)		(5,666	)		(5,916	)		(3,248	)		(4,309	)		(7,894	)
Total Class Y transactions			10,998			3,686			(315	)		(1,246	)		(927	)		(3,745	)
Net increase (decrease) in capital shares			10,607			3,321			(833	)		(2,225	)		(2,117	)		(5,488	)

First American Funds Annual Report 2006      85

Notes to  Financial Statements continued

Class B shares converted to Class A shares (reflected as Class A shares issued and Class B shares redeemed) during the fiscal period ended June 30, 2006, the fiscal years ended September 30, 2005 and September 30, 2004, were as follows:

	Fiscal Period		Year Ended		Year Ended
Fund	Ended 6/30/06		9/30/05		9/30/04
Core Bond Fund		88		134		120
High Income Bond Fund		14		16		24
Total Return Bond Fund		35		52		579
U.S. Government Mortgage Fund		23		42		52

5 > Investment Security Transactions

During the fiscal period ended June 30, 2006, purchases of securities and proceeds from sales of securities, other than temporary investments in short-term securities, were as follows:

	U.S. Government Securities				Other Investment Securities
Fund	Purchases		Sales		Purchases		Sales
Core Bond Fund	$	2,136,257	$	2,179,223	$	656,851	$	386,522
High Income Bond Fund		376		315		170,812		177,500
Inflation Protected Securities Fund		281,130		231,399		33,724		22,031
Intermediate Government Bond Fund		39,170		63,155		—		—
Intermediate Term Bond Fund		733,930		928,664		403,813		288,932
Short Term Bond Fund		239,263		231,619		130,899		219,289
Total Return Bond Fund		497,726		467,570		233,330		115,976
U.S. Government Mortgage Fund		458,796		436,118		22,767		20,711

The aggregate gross unrealized appreciation and depreciation of securities held by the funds and the total cost of securities (including cost of securities purchased with proceeds from securities lending) for federal income tax purposes at June 30, 2006, were as follows:

									Federal
	Aggregate		Aggregate						Income
	Gross		Gross						Tax
Fund	Appreciation		Depreciation			Net			Cost
Core Bond Fund	$	818	$	(61,592	)	$	(60,774	)	$	2,795,268
High Income Bond Fund		2,482		(7,942	)		(5,460	)		296,150
Inflation Protected Securities Fund		600		(16,553	)		(15,953	)		495,251
Intermediate Government Bond Fund		67		(1,427	)		(1,360	)		45,824
Intermediate Term Bond Fund		1,760		(28,858	)		(27,098	)		1,298,435
Short Term Bond Fund		436		(10,824	)		(10,388	)		722,053
Total Return Bond Fund		1,167		(11,679	)		(10,512	)		552,643
U.S. Government Mortgage Fund		174		(6,529	)		(6,355	)		287,477

6 > Options Written

Transactions in written options for the fiscal period ended June 30, 2006 were as follows:

	Put Options Written						Call Options Written
	Number of			Premium			Number of		Premium
Total Return Bond Fund	Contracts			Amount			Contracts		Amount
Balance at September 30, 2005		—		$	—			—	$	—
Opened		300			8			—		—
Expired		(300	)		(8	)		—		—
Closed		—			—			—		—
Balance at June 30, 2006		—			—			—		—

7 > Concentration of Risks

High Income Bond Fund, Inflation Protected Securities Fund, and Total Return Bond Fund invest in lower-rated (i.e., rated Ba or lower by Moody’s or BB or lower by Standard & Poor’s or Fitch) corporate and foreign debt obligations, which are commonly referred to as “junk bonds.” Lower-rated securities will usually offer higher yields than higher-rated securities. However, there is more risk associated with these investments. These lower-rated bonds may be more susceptible to real or perceived adverse economic conditions than investment grade bonds. Lower-rated securities tend to have more price volatility and carry more risk to principal than higher-rated securities.

8 > Indemnifications

The funds enter into contracts that contain a variety of indemnifications. The funds’ maximum exposure under these arrangements is unknown. However, the funds have not had prior claims or losses pursuant to these contracts and expect the risk of loss to be remote.

86      First American Funds Annual Report 2006

9 > New Accounting Pronouncement

In June 2006, the Financial Accounting Standards Board issued Interpretation No. 48, Accounting for Uncertainty in Income Taxes, an interpretation of FAS109, Accounting for Income Taxes (FIN 48), to create a single model to address accounting for uncertainty in tax positions. FIN 48 clarifies the accounting for income taxes, by prescribing a minimum recognition threshold a tax position is required to meet before being recognized in the financial statements. FIN 48 also provides guidance on derecognition, measurement, classification, interest and penalties, accounting in interim periods, disclosure and transition. At this time, FAF Advisors is evaluating the implications of FIN 48, and its impact in the funds’ financial statements which has not yet been determined.

First American Funds Annual Report 2006      87

 NOTICE TO SHAREHOLDERS June 30, 2006 (unaudited)

TAX INFORMATION

The information set forth below is for each fund’s fiscal period as required by federal laws. Most shareholders, however, must report distributions on a calendar year basis for income tax purposes, which may include distributions for portions of two fiscal periods of a fund. Accordingly, the information needed for income tax purposes will be sent in early 2007 on Form 1099-DIV. Please consult your tax advisor for proper treatment of this information.

For the fiscal period ended June 30, 2006, each fund has designated long term capital gains, ordinary income, and tax exempt income with regard to distributions paid during the period as follows:

	Long Term			Ordinary
	Capital Gains			Income			Total
	Distributions			Distributions			Distributions
Fund	(Tax Basis) (a)			(Tax Basis) (a)			(Tax Basis) (b)
Core Bond Fund		—	%		100.0	%		100.0	%
High Income Bond Fund		—			100.0			100.0
Inflation Protected Securities Fund		—			100.0			100.0
Intermediate Government Bond Fund		9.2			90.8			100.0
Intermediate Term Bond Fund		—			100.0			100.0
Short Term Bond Fund		—			100.0			100.0
Total Return Bond Fund		—			100.0			100.0
U.S. Government Mortgage Fund		—			100.0			100.0

(a)   Based on a percentage of the fund’s total distributions.

(b)   None of the distributions made by these funds are eligible for the dividends received deduction or are characterized as qualified dividend income.

Shareholder Notification of Federal Tax Status:

The First American High Income Bond Fund designates 1.70% of the dividends declared during the fiscal period ended June 30, 2006 as dividends qualifying for the dividends received deduction available to corporate shareholders.

In addition the First American High Income Bond Fund designates 1.79% of the dividends declared from net investment income during the fiscal period ended June 30, 2006, as qualified income available to individual shareholders under the Jobs and Growth Tax Relief Reconciliation Act of 2003.

Additional Information Applicable to Foreign Shareholders Only:

The percentage of ordinary income distributions that are designated as interest-related dividends under Internal Revenue Code Section 871(k)(1)(c) for each fund were as follows:

Fund
Core Bond Fund	94.5	%
High Income Bond Fund	88.4
Inflation Protected Securities Fund	100.0
Intermediate Government Bond Fund	100.0
Intermediate Term Bond Fund	98.9
Short Term Bond Fund	100.0
Total Return Bond Fund	93.7
U.S. Government Mortgage Fund	100.0

The percentage of ordinary income distributions that are designated as short-term capital gain distributions under Internal Revenue Code Section 871(k)(2)(c) for each fund were as follows:

Fund
Core Bond Fund	—	%
High Income Bond Fund	—
Inflation Protected Securities Fund	—
Intermediate Government Bond Fund	11.0
Intermediate Term Bond Fund	—
Short Term Bond Fund	—
Total Return Bond Fund	—
U.S. Government Mortgage Fund	—

88      First American Funds Annual Report 2006

HOW TO OBTAIN A COPY OF THE FUNDS’ PROXY VOTING POLICIES AND PROXY VOTING RECORD

A description of the policies and procedures that the funds use to determine how to vote proxies relating to portfolio securities, as well as information regarding how the funds voted proxies relating to portfolio securities during the most recent 12 month period ended June 30 is available (1) without charge upon request by calling 800.677.FUND; (2) at firstamericanfunds.com; and (3) on the U.S. Securities and Exchange Commission’s website at http://www.sec.gov.

FORM N-Q HOLDINGS INFORMATION

Each fund is required to file its complete schedule of portfolio holdings for the first and third quarters of each fiscal year with the Securities and Exchange Commission on Form N-Q. The funds’ Forms N-Q are available (1) without charge upon request by calling 800.677.FUND and (2) on the U.S. Securities and Exchange Commission’s website at http://www.sec.gov. In addition, you may review and copy the funds’ Forms N-Q at the Commission’s Public Reference Room in Washington, D.C. You may obtain information on the operation of the Public Reference Room by calling 1-800-SEC-0330.

QUARTERLY PORTFOLIO HOLDINGS

Each fund will make portfolio holdings information publicly available by posting the information at firstamericanfunds.com on a quarterly basis. The funds will attempt to post such information within 10 days of the quarter end.

APPROVAL OF INVESTMENT ADVISORY AGREEMENT

The Board of Directors of the Funds (the “Board”), which is comprised entirely of independent directors, oversees the management of each Fund and, as required by law, determines annually whether to renew the Funds’ advisory agreement with FAF Advisors, Inc. (“FAF Advisors”).

At a meeting on May 1-3, 2006, the Board considered information relating to the Funds’ investment advisory agreement with FAF Advisors (the “Agreement”). In advance of the meeting, the Board received materials relating to the Agreement, and had the opportunity to ask questions and request further information in connection with their consideration. At a subsequent meeting on June 19-21, 2006, the Board concluded its consideration of and approved the Agreement through June 30, 2007.

Although the Agreement, which is with First American Investment Funds, Inc., relates to all of the Funds, the Board separately considered and approved the Agreement with respect to each Fund. In considering the Agreement, the Board, advised by independent legal counsel, reviewed and considered the factors it deemed relevant, including: (1) the nature, quality and extent of FAF Advisors’ services to the Fund, (2) the investment performance of the Fund, (3) the profitability of FAF Advisors related to the Fund, including an analysis of FAF Advisors’ cost of providing services and comparative expense information, (4) whether economies of scale may be realized as the Fund grows and whether fee levels are adjusted to enable Fund investors to share in these potential economies of scale, and (5) other benefits that accrue to FAF Advisors through its relationship with the Funds. In its deliberations, the Board did not identify any single factor which alone was responsible for the Board’s decision to approve the Agreement.

Before approving the Agreement, the Board met in executive session with its independent counsel on numerous occasions to consider the materials provided by FAF Advisors and the terms of the Agreement. Based on its evaluation of those materials, the Board concluded that the Agreement is fair and in the best interests of the shareholders of each Fund. In reaching its conclusions, the Board considered the following:

Nature, Quality and Extent of Investment Advisory Services

The Board examined the nature, quality and extent of the services provided by FAF Advisors to each Fund. The Board reviewed FAF Advisors’ key personnel who provide investment management services to each Fund as well as the fact that, under the Agreement, FAF Advisors has the authority and responsibility to make and execute investment decisions for each Fund within the framework of that Fund’s investment policies and restrictions, subject to review by the Board. The Board further considered that FAF Advisors’ duties with respect to each Fund include (i) investment research and security selection, (ii) adherence to (and monitoring compliance with) the Fund’s investment policies and restrictions and the Investment Company Act of 1940, and (iii) monitoring the performance of the various organizations providing services to the Fund, including the Fund’s distributor, sub-administrator, transfer agent and custodian. Finally, the Board considered FAF Advisors’ representation that the services provided by FAF Advisors under the Agreement are the type of services customarily provided by investment advisors in the fund industry.

First American Funds Annual Report 2006      89

NOTICE TO SHAREHOLDERS continued

The Board also considered compliance reports about FAF Advisors from the Funds’ Chief Compliance Officer.

Based on the foregoing, the Board concluded that each Fund is likely to benefit from the nature, extent and quality of the services provided by FAF Advisors under the Agreement.

Investment Performance of the Funds

The Board considered the performance of each Fund, including how the Fund performed versus the median performance of a group of comparable funds selected by an independent data service (the “performance universe”) and how the Fund performed versus its benchmark index. The Board also considered that, in reviewing the comparative performance of income funds, the different expense levels of a Fund’s share classes can result in different net performance results for each of those classes. Thus, while the Board considered the performance of all classes, it focused on Class Y shares, which, because they have the lowest expense ratios, offered the most meaningful data on performance. For this reason, the discussion below relates to the performance of Class Y shares. The performance periods considered by the Board ended on January 31, 2006.

Core Bond Fund. The Board considered that the Fund outperformed or performed competitively versus its performance universe for the one-, three-, five- and ten-year periods. Though the Fund underperformed its benchmark for those periods, the Board noted that the Fund’s performance had improved since a new, team-based sector specialist management model was implemented by FAF Advisors in early 2003. The Board concluded that, in light of the change to the fixed-income model implemented in 2003 and the Fund’s competitive performance versus its performance universe, it would be in the interest of the Fund and its shareholders to renew the Agreement.

High Income Bond Fund. The Board considered that the Fund outperformed its performance universe for the one- and three-year periods. In addition, for the one-year period, the Fund outperformed its benchmark index, though the Fund underperformed the benchmark for the three-year period. The Board concluded that, in light of the Fund’s strong performance compared to that of its performance universe and the recent strong performance vis-à-vis its benchmark index, it would be in the interest of the Fund and its shareholders to renew the Agreement.

Inflation Protected Securities Fund. The Board considered that the Fund outperformed its performance universe for the one-year period (the Fund’s only full year of operation), though it underperformed its benchmark for that period. The Board concluded that, in light of the Fund’s outperformance of the performance universe and its short operating history, it would be in the interest of the Fund and its shareholders to renew the Agreement.

Intermediate Government Bond Fund. The Board considered that the Fund outperformed its benchmark index and performance universe for the one-year period. The Fund underperformed its benchmark index and performance universe for the three-year period. With respect to this, however, the Board noted FAF Advisors’ assertion that the Fund has a stricter investment policy than that of its peers. As a result, the Fund can invest only in U.S. Treasury securities and certain state tax-exempt agency securities, whereas most of the Fund’s peers also can invest in mortgage-backed securities. The Board concluded that, in light of the Fund’s strong recent performance, it would be in the interest of the Fund and its shareholders to renew the Agreement.

Intermediate Term Bond Fund. The Board considered that the Fund outperformed its performance universe for the one-, three-, five- and ten-year periods and performed competitively against the benchmark for each of those periods. The Board concluded that, in light of the Fund’s competitive performance, it would be in the interest of the Fund and its shareholders to renew the Agreement.

Short Term Bond Fund. The Board considered that the Fund outperformed or performed competitively against its performance universe for the one-, three-, five- and ten-year periods. The Fund outperformed its benchmark index for the one-year period, although it underperformed the benchmark for the other periods. The Board concluded that, in light of long-term performance of the Fund compared to that of its performance universe, it would be in the interest of the Fund and its shareholders to renew the Agreement.

Total Return Bond Fund. The Board considered that the Fund outperformed its performance universe for the one-, three-, and five-year periods. In addition, the Fund outperformed its benchmark index for the one- and three-year periods, though it underperformed the index for the five-year period. The Board noted that, effective May 13, 2005, the Fund changed its name from Corporate Bond Fund to Total Return Bond Fund, and changed its investment strategies and benchmark. The Board considered FAF Advisors’ assertion that, in light of that change, the one-year performance numbers are the most meaningful. The Board concluded that, in light of the Fund’s strong one-year performance, it would be in the interest of the Fund and its shareholders to renew the Agreement.

90      First American Funds Annual Report 2006

U.S. Government Mortgage Fund. The Board considered that the Fund outperformed or performed competitively against its performance universe for the one-, three-, five- and ten-year periods. The Fund underperformed its benchmark for each of those periods. The Board considered FAF Advisors’ assertion that, given the risk-reward profile of the types of assets in which the Fund invests, the Fund is not likely to outperform the benchmark on a net-of-expenses basis. In light of this and of the Fund’s competitive performance against its performance universe, the Board concluded that it would be in the interest of the Fund and its shareholders to renew the Agreement.

Costs of Services and Profits Realized by FAF Advisors

The Board reviewed FAF Advisors’ estimated costs in serving as the Funds’ investment manager, including the costs associated with the personnel and systems necessary to manage each Fund. The Board also considered the reported profitability of FAF Advisors and its affiliates resulting from their relationship with each Fund. For each Fund, the Board reviewed fee and expense information as compared to that of other funds and accounts managed by FAF Advisors and of comparable funds managed by other advisers. The Board found that while the management fees for FAF Advisors’ institutional separate accounts are lower than the Funds’ management fees, the Funds receive additional services from FAF Advisors that separate accounts do not receive.

Using information provided by an independent data service, the Board also evaluated each Fund’s advisory fee compared to the median advisory fee for other mutual funds similar in size, character and investment strategy, and each Fund’s expense ratio after waivers compared to the median expense ratio, after waivers, of comparable funds. In connection with its review of Fund fees and expenses, the Board asked FAF Advisors to articulate its pricing philosophy. FAF Advisors responded that it attempts generally to maintain each Fund’s total operating expenses at a level that approximates its peer group median expense ratio. FAF Advisors noted that, in keeping with this pricing philosophy, it intended to waive its investment advisory fees to the extent necessary to maintain the Funds’ total expense ratios at levels generally in line with their respective peer groups. Consistent with this pricing philosophy, and after discussions with the Board, FAF Advisors proposed certain changes to the expense cap of the Intermediate Term Bond Fund, as discussed in more detail below, and agreed to maintain the expenses caps of the other Funds at their current levels through at least June 30, 2007.

Further detail considered by the Board regarding the advisory fees and expense ratios of each Fund is set forth below:

Core Bond Fund. The Board considered that the Fund’s advisory fee and expense ratio, after waivers, were lower than those of the peer group median. The Board concluded that the Fund’s advisory fee and expense ratio are reasonable in light of the services provided.

High Income Bond Fund. The Board considered that the Fund’s advisory fee and expense ratio, after waivers, were lower than those of the peer group median. The Board concluded that the Fund’s advisory fee and expense ratio are reasonable in light of the services provided.

Inflation Protected Securities Fund. The Board considered that the Fund’s advisory fee, after waivers, was lower than that of the peer group median and that the expense ratio, after waivers, was only slightly higher. The Board concluded that the Fund’s advisory fee and expense ratio are reasonable in light of the services provided.

Intermediate Government Bond Fund. The Board considered that the Fund’s advisory fee and expense ratio, after waivers, were lower than those of the peer group median. The Board concluded that the Fund’s advisory fee and expense ratio are reasonable in light of the services provided.

Intermediate Term Bond Fund. The Board considered that the Fund’s advisory fee and expense ratio, after waivers, were lower than those of the peer group median. The Board also considered and approved FAF Advisors’ request to raise the level at which Fund expenses would be capped by 10 basis points. The Board noted that even with the higher expense cap, the Fund’s expense ratio would still be lower than the peer group median by approximately 5 basis points. The Board concluded that the Fund’s advisory fee and expense ratio, after taking into account the increased expense cap, are reasonable in light of the services provided.

Short Term Bond Fund. The Board considered that, although the Fund’s advisory fee after waivers was slightly higher than the peer group median, the Fund’s expense ratio after waivers was lower than the peer group median. The Board concluded that the Fund’s advisory fee and expense ratio are reasonable in light of the services provided.

Total Return Bond Fund. The Board considered that the Fund’s advisory fee and expense ratio, after waivers, were slightly higher than, though competitive with, those of the peer group median. The Board concluded that the Fund’s advisory fee and expense ratio are reasonable in light of their competitiveness and the services provided.

First American Funds Annual Report 2006      91

NOTICE TO SHAREHOLDERS continued

U.S. Government Mortgage Fund. The Board considered that the Fund’s advisory fee and expense ratio, after waivers, were lower than those of the peer group median. The Board concluded that the Fund’s advisory fee and expense ratio are reasonable in light of the services provided.

Economies of Scale in Providing Investment Advisory Services

The Board considered whether each Fund’s investment advisory fee reflects the potential for economies of scale for the benefit of Fund shareholders. Based on information provided by FAF Advisors, the Board noted that profitability will likely increase somewhat as assets grow over time. The Board considered that, although the Funds do not have advisory fee breakpoints in place, FAF Advisors has committed to waive advisory fees to the extent necessary to keep each Fund’s total expenses generally in line with the median total expenses of a peer group of funds as selected by an independent data service. The median total expense ratio of a Fund’s peer group will reflect the effect of any breakpoints in the advisory fee schedules of the funds in that group. Therefore, by capping a Fund’s total expense ratio at a level close to the median, Fund shareholders should receive the benefit of any breakpoints in the comparable funds’ advisory fee schedules. In light of FAF Advisors’ commitment to keep total Fund expenses competitive, the Board concluded that it would be reasonable and in the best interest of each Fund and its shareholders to renew the Agreement.

Other Benefits to FAF Advisors

In evaluating the benefits that accrue to FAF Advisors through its relationship with the Funds, the Board noted that FAF Advisors and certain of its affiliates serve the Funds in various capacities, including as advisor, administrator, sub-administrator, transfer agent, distributor, custodian and securities lending agent, and receive compensation from the Funds in connection with providing services to the Funds. The Board considered that each service provided to the Funds by FAF Advisors or one of its affiliates is pursuant to a written agreement, which the Board evaluates periodically as required by law.

After full consideration of these and other factors, the Board concluded that approval of the Agreement was in the best interest of each Fund and its shareholders.

92      First American Funds Annual Report 2006

Directors and Officers of the Funds

Independent Directors
						Other
	Position(s)		Term of Office		Number of Portfolios	Directorships
Name, Address, and	Held		and Length of	Principal Occupation(s)	in Fund Complex	Held by
Year of Birth	with Funds		Time Served	During Past 5 Years	Overseen by Director	Director †
Benjamin R. Field III P.O. Box 1329 Minneapolis, MN 55440-1329 (1938)		Director	Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Director of FAIF since September 2003.	Retired; Senior Financial Advisor, Bemis Company, Inc. from May 2002 through June 2004; Senior Vice President, Chief Financial Officer & Treasurer, Bemis, through April 2002.	First American Funds Complex: twelve registered investment companies, including fifty-eight portfolios		None
Roger A. Gibson P.O. Box 1329 Minneapolis, MN 55440-1329 (1946)		Director	Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Director of FAIF since October 1997.	Retired; Vice President, Cargo – United Airlines from July 2001 through July 2004; Vice President, North America – Mountain Region, United Airlines, prior to July 2001.	First American Funds Complex: twelve registered investment companies, including fifty-eight portfolios		None
Victoria J. Herget P.O. Box 1329 Minneapolis, MN 55440-1329 (1951)		Director	Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Director of FAIF since September 2003.	Investment consultant and non-profit board member since 2001; Managing Director of Zurich Scudder Investments through 2001.	First American Funds Complex: twelve registered investment companies, including fifty-eight portfolios		None
Leonard W. Kedrowski P.O. Box 1329 Minneapolis, MN 55440-1329 (1941)		Director	Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Director of FAIF since November 1993.	Owner and President, Executive and Management Consulting, Inc., a management consulting firm; Board member, GC McGuiggan Corporation (dba Smyth Companies), a label printer; former Chief Executive Officer, Creative Promotions International, LLC, a promotional award programs and products company, through October 2003; Advisory Board member, Designer Doors, manufacturer of designer doors, through 2002.	First American Funds Complex: twelve registered investment companies, including fifty-eight portfolios		None
Richard K. Riederer P.O. Box 1329 Minneapolis, MN 55440-1329 (1944)		Director	Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Director of FAIF since August 2001.	Retired; Director, President, and Chief Executive Officer, Weirton Steel through 2001.	First American Funds Complex: twelve registered investment companies, including fifty-eight portfolios	Cleveland Cliffs Inc (a producer of iron ore pellets)
Joseph D. Strauss P.O. Box 1329 Minneapolis, MN 55440-1329 (1940)		Director	Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Director of FAIF since April 1991.	Attorney At Law, Owner and President, Strauss Management Company, a Minnesota holding company for various organizational management business ventures; Owner, Chairman and Chief Executive Officer, Community Resource Partnerships, Inc., a strategic planning, operations management, government relations, transportation planning and public relations organization; Owner, Chairman and Chief Executive Officer, Excensustm, LLC, a strategic demographic planning and application development firm, since 2001.	First American Funds Complex: twelve registered investment companies, including fifty-eight portfolios		None

First American Funds Annual Report 2006      93

NOTICE TO SHAREHOLDERS continued

Independent Directors — continued
						Other
	Position(s)		Term of Office		Number of Portfolios	Directorships
Name, Address, and	Held		and Length of	Principal Occupation(s)	in Fund Complex	Held by
Year of Birth	with Funds		Time Served	During Past 5 Years	Overseen by Director	Director †
Virginia L. Stringer P.O. Box 1329 Minneapolis, MN 55440-1329 (1944)	Chair; Director		Chair Term three years. Directors Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Chair of FAIF’s Board since September 1997; Director of FAIF since September 1987.	Owner and President, Strategic Management Resources, Inc., a management consulting firm; Executive Consultant to State Farm Insurance Company through 2003.	First American Funds Complex: twelve registered investment companies, including fifty-eight portfolios		None
James M. Wade P.O. Box 1329 Minneapolis, MN 55440-1329 (1943)		Director	Term expiring earlier of death, resignation, removal, disqualification, or successor duly elected and qualified. Director of FAIF since August 2001.	Owner and President, Jim Wade Homes, a homebuilding company, since 1999.	First American Funds Complex: twelve registered investment companies, including fifty-eight portfolios		None

†  Includes only directorships in a company with a class of securities registered pursuant to Section 12 of the Securities Exchange Act or subject to the requirements of Section 15(d) of the Securities Exchange Act, or any company registered as an investment company under the Investment Company Act.

The Statement of Additional Information (SAI) includes additional information about fund directors and is available upon request without charge by calling 800-677-FUND or writing to First American Funds, P.O. Box 1330, Minneapolis, Minnesota, 55440-1330.

94      First American Funds Annual Report 2006

Officers
	Position(s)	Term of Office
Name, Address, and	Held	and Length of
Year of Birth	with Funds	Time Served	Principal Occupation(s) During Past 5 Years
Thomas S. Schreier, Jr. FAF Advisors, Inc. 800 Nicollet Mall Minneapolis, MN 55402 (1962)*	President	Re-elected by the Board annually; President of FAIF since February 2001.	Chief Executive Officer of FAF Advisors, Inc.
Mark S. Jordahl FAF Advisors, Inc. 800 Nicollet Mall Minneapolis, MN 55402 (1960)*	Vice President – Investments	Re-elected by the Board annually; Vice President – Investments of FAIF since September 2001.	Chief Investment Officer of FAF Advisors, Inc., since September 2001.
Jeffery M. Wilson FAF Advisors, Inc. 800 Nicollet Mall Minneapolis, MN 55402 (1956)*	Vice President – Administration	Re-elected by the Board annually; Vice President – Administration of FAIF since March 2000.	Senior Vice President of FAF Advisors, Inc.
Charles D. Gariboldi, Jr. FAF Advisors, Inc. 800 Nicollet Mall Minneapolis, MN 55402 (1959)*	Treasurer	Re-elected by the Board annually; Treasurer of FAIF since December 2004.	Treasurer, FAF Advisors, Inc., since October 2004; prior thereto, Vice President of investment accounting and Fund Treasurer for Thrivent Financial for Lutherans.
Jill M. Stevenson FAF Advisors, Inc. 800 Nicollet Mall Minneapolis, MN 55402 (1965)*	Assistant Treasurer	Re-elected by the Board annually; Assistant Treasurer of FAIF since September 2005.	Assistant Treasurer, FAF Advisors, Inc., since September 2005; prior thereto, Director, Senior Project Manager, FAF Advisors, Inc. from May 2003 to September 2005; prior to that, Vice President, Director of Operations, Paladin Investment Associates, LLC.
David H. Lui FAF Advisors, Inc. 800 Nicollet Mall Minneapolis, MN 55402 (1960)*	Chief Compliance Officer	Re-elected by the Board annually; Chief Compliance Officer of FAIF since February 2005.	Chief Compliance Officer for First American Funds and FAF Advisors, Inc., since February 2005; prior thereto, Chief Compliance Officer, Franklin Advisors, Inc. and Chief Compliance Counsel, Franklin Templeton Investments from March 2004 to February 2005; prior to that, Vice President Charles Schwab & Co., Inc.
Jevad (“Jay”) Aslani FAF Advisors, Inc. 800 Nicollet Mall Minneapolis, MN 55402 (1961)*	Anti-Money Laundering Officer	Re-elected by the Board annually: Anti-Money Laundering Officer of FAIF since June 2006.	Director of Compliance of FAF Advisors, Inc., since September 2004; prior thereto, Independent Compliance Consultant from December 2002 to August 2004; prior to that, Assistant Vice President, Assistant Secretary, and Anti-Money Laundering Officer of Artisan Funds, Assistant Secretary and Compliance Officer of Artisan Distributors, and Compliance Officer of Artisan Partners Limited Partnership.
Kathleen L. Prudhomme FAF Advisors, Inc. 800 Nicollet Mall Minneapolis, MN 55402 (1953)*	Secretary	Re-elected by the Board annually; Secretary of FAIF since December 2004; prior thereto, Assistant Secretary of FAIF since September 1998.	Deputy General Counsel, FAF Advisors, Inc., since November 2004; prior thereto, Partner, Dorsey & Whitney LLP, a Minneapolis-based law firm.
James D. Alt 50 South Sixth Street Suite 1500 Minneapolis, MN 55402 (1951)	Assistant Secretary	Re-elected by the Board annually; Assistant Secretary of FAIF since December 2004; prior thereto, Secretary of FAIF since June 2002; Assistant Secretary of FAIF from September 1998 through June 2002.	Partner, Dorsey & Whitney LLP, a Minneapolis-based law firm.
Brett L. Agnew FAF Advisors, Inc. 800 Nicollet Mall Minneapolis, MN 55402 (1971)*	Assistant Secretary	Re-elected by the Board annually; Assistant Secretary of FAIF since December 2004.	Attorney for FAF Advisors, Inc. since August 2004; prior thereto, Senior Counsel, Thrivent Financial for Lutherans from May 2001 to August 2004; prior to that, Consultant, Principal Financial Group.

First American Funds Annual Report 2006      95

NOTICE TO SHAREHOLDERS continued

Officers
	Position(s)	Term of Office
Name, Address, and	Held	and Length of
Year of Birth	with Funds	Time Served	Principal Occupation(s) During Past 5 Years
James R. Arnold 615 E. Michigan Street Milwaukee, WI 53202 (1957)*	Assistant Secretary	Re-elected by the Board annually; Assistant Secretary of FAIF since June 2003.	Vice President, U.S. Bancorp Fund Services, LLC since March 2002; prior thereto, Senior Administration Services Manager, UMB Fund Services, Inc.
Richard J. Ertel, FAF Advisors, Inc. 800 Nicollet Mall, Minneapolis, MN 55042 (1967)*	Assistant Secretary	Re-elected by the Board annually; Assistant Secretary of FAIF since June 2006 and from June 2003 through August 2004.	Counsel, FAF Advisors, Inc., since May 2006; prior thereto, Counsel, Ameriprise Financial Services, Inc. from September 2004 to May 2006; prior to that, Counsel, FAF Advisors, Inc. from May 2003 to August 2004; prior to May 2003, Associate Counsel, Hartford Life and Accident Insurance Company.
Douglas G. Hess 615 E. Michigan Street Milwaukee, WI 53202 (1967)*	Assistant Secretary	Re-elected by the Board annually; Assistant Secretary of FAIF since September 2001.	Vice President, U.S. Bancorp Fund Services, LLC.

*  Messrs. Schreier, Jordahl, Wilson, Gariboldi, Lui, Aslani, Agnew and Ertel, Ms. Stevenson and Ms. Prudhomme are each officers and/or employees of FAF Advisors, Inc., which serves as investment adviser and administrator for FAIF. Messrs. Hess and Arnold are officers of U.S. Bancorp Fund Services, LLC, which is a subsidiary of U.S. Bancorp and which serves as Transfer Agent for FAIF.

96      First American Funds Annual Report 2006

Board of Directors First American Investment Funds, Inc.

Virginia Stringer

Chairperson of First American Investment Funds, Inc.

Owner and President of Strategic Management Resources, Inc.

Benjamin Field III

Director of First American Investment Funds, Inc.

Retired; former Senior Financial Advisor, Senior Vice President, Chief Financial Officer, and Treasurer of Bemis Company, Inc.

Roger Gibson

Director of First American Investment Funds, Inc.

Retired; former Vice President of Cargo-United Airlines

Victoria Herget

Director of First American Investment Funds, Inc.

Investment Consultant; former Managing Director of Zurich Scudder Investments

Leonard Kedrowski

Director of First American Investment Funds, Inc.

Owner and President of Executive and Management Consulting, Inc.

Richard Riederer

Director of First American Investment Funds, Inc.

Retired; former Director, President, and Chief Executive Officer of Weirton Steel

Joseph Strauss

Director of First American Investment Funds, Inc.

Owner and President of Strauss Management Company

James Wade

Director of First American Investment Funds, Inc.

Owner and President of Jim Wade Homes

First American Investment Funds’ Board of Directors is comprised entirely of independent directors.

   

Direct fund correspondence to:

First American Funds

P.O. Box 1330

Minneapolis, MN 55440-1330

This report and the financial statements contained herein are not intended to be a forecast of future events, a guarantee of future results, or investment advice. Further, there is no assurance that certain securities will remain in or out of each fund’s portfolio. The views expressed in this report reflect those of the portfolio managers only through the period ended June 30, 2006. The portfolio managers’ views are subject to change at any time based upon market or other conditions.

This report is for the information of shareholders of the First American Investment Funds, Inc. It may also be used as sales literature when preceded or accompanied by a current prospectus, which contains information concerning investment objectives, risks, and charges and expenses of the funds. Read the prospectus carefully before investing.

The figures in this report represent past performance and do not guarantee future results. The principal value of an investment and investment return will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.

INVESTMENT ADVISOR

FAF Advisors, Inc.

800 Nicollet Mall

Minneapolis, Minnesota 55402

ADMINISTRATOR

FAF Advisors, Inc.

800 Nicollet Mall

Minneapolis, Minnesota 55402

TRANSFER AGENT

U.S. Bancorp Fund Services, LLC

615 East Michigan Street

Milwaukee, Wisconsin 53202

CUSTODIAN

U.S. Bank National Association

60 Livingston Avenue

St. Paul, Minnesota 55101

DISTRIBUTOR

Quasar Distributors, LLC

615 East Michigan Street

Milwaukee, Wisconsin 53202

INDEPENDENT REGISTERED

PUBLIC ACCOUNTING FIRM

Ernst & Young LLP

220 South Sixth Street

Suite 1400

Minneapolis, Minnesota 55402

COUNSEL

Dorsey & Whitney LLP

50 South Sixth Street

Suite 1500

Minneapolis, Minnesota 55402

First American Funds
P.O. Box 1330
Minneapolis, MN 55440-1330

In an attempt to reduce shareholder costs and help eliminate duplication, First American Funds will try to limit their mailing to one report for each address that lists one or more shareholders with the same last name. If you would like additional copies, please call First American Investor Services at 800.677.FUND or visit firstamericanfunds.com.

0170-06 8/2006 AR-INCOME

Item 2—Code of Ethics

(a) The registrant has adopted a code of ethics that applies to its Principal Executive Officer and Principal Financial Officer.

(b) During the period covered by this report, there were no amendments to the provisions of the registrant’s code of ethics that apply to the registrant’s Principal Executive Officer and Principal Financial Officer and that relate to any element of the code of ethics definition enumerated in this Item.

(c) During the period covered by this report, the registrant did not grant any waivers, including implicit waivers, from any provisions of its code of ethics.

(d) The registrant undertakes to furnish a copy of its code of ethics to any person upon request, without charge, by calling 1-800-677-3863.

Item 3—Audit Committee Financial Expert

The registrant’s Board of Directors has determined that Leonard W. Kedrowski, Benjamin R. Field III, and Richard K. Riederer, members of the registrant’s Audit Committee, are each an “audit committee financial expert” and are “independent,” as these terms are defined in this Item.

Item 4—Principal Accountant Fees and Services

(a) Audit Fees — Ernst & Young LLP (“E&Y”) billed the registrant audit fees totaling $785,786 in the fiscal period ended June 30, 2006, $608,819 in the fiscal year ended September 30, 2005, and $391,795 in the fiscal year ended September 30, 2004, including fees associated with the annual audit, SEC Rule 17f-2 security count filings and filings of the registrant’s Form N-CSR.

(b) Audit-Related Fees — E&Y billed the registrant audit-related fees totaling $2,150 in the fiscal period ended June 30, 2006, $13,759 in the fiscal year ended September 30, 2005, and $36,134 in the fiscal year ended September 30, 2004, including fees associated with the semi-annual review of fund disclosures.

(c) Tax Fees — E&Y billed the registrant fees of $114,015 in the fiscal period ended June 30, 2006, $105,382 in the fiscal year ended September 30, 2005, and $115,034 in the fiscal year ended September 30, 2004 for tax services, including tax compliance, tax advice and tax planning. Tax compliance, tax advice and tax planning services primarily related to preparation of original and amended tax returns, timely RIC qualification reviews, and tax distribution analysis and planning.

(d) All Other Fees — There were no fees billed by E&Y for other services to the registrant during the fiscal period ended June 30, 2006, the fiscal year ended September 30, 2005, and the fiscal year ended September 30, 2004.

(e)(1) The audit committee’s pre-approval policies and procedures pursuant to paragraph (c)(7) of Rule 2-01 of Regulation S-X are set forth below:

Audit Committee policy regarding pre-approval of services provided by the Independent Auditor

The Audit Committee of the First American Funds (“Committee”) has responsibility for ensuring that all services performed by the independent audit firm for the funds do not impair the firm’s independence. This review is intended to provide reasonable oversight without removing management from its responsibility for day-to-day operations. In this regard, the Committee should:

• Understand the nature of the professional services expected to be provided and their impact on auditor independence and audit quality

• Examine and evaluate the safeguards put into place by the Company and the auditor to safeguard independence

• Meet quarterly with the partner of the independent audit firm

• Consider approving categories of service that are not deemed to impair independence for a one-year period

It is important that a qualitative rather than a mere quantitative evaluation be performed by the Committee in discharging its responsibilities.

Policy for Audit and Non-Audit Services Provided to the Funds

On an annual basis, the Committee will review and consider whether to pre-approve the financial plan for audit fees as well as categories of audit-related and non-audit services that may be performed by the funds’ independent audit firm directly for the funds. At least annually the Committee will receive a report from the independent audit firm of all audit and non-audit services, which were approved during the period.

The engagement of the independent audit firm for any non-audit service requires the written pre-approval of the Treasurer of the funds and all non-audit services performed by the independent audit firm will be disclosed in the required SEC periodic filings.

In connection with the Committee review and pre-approval responsibilities, the review by the Committee will consist of the following:

Audit Services

The categories of audit services and related fees to be reviewed and considered for pre-approval annually by the Committee or its delegate include the following:

• Annual Fund financial statement audits

• Seed audits (related to new product filings, as required)

• SEC and regulatory filings and consents

Audit-related Services

In addition, the following categories of audit-related services are deemed to be consistent with the role of the independent audit firm and, as such, will be considered for pre-approval by the Committee or its delegate, on an annual basis.

• Accounting consultations

• Fund merger support services

• Other accounting related matters

• Agreed Upon Procedure Reports

• Attestation Reports

• Other Internal Control Reports

Notwithstanding any annual pre-approval of these categories of services, individual projects with an estimated fee in excess of $25,000 are subject to pre-approval by the Committee Chair or its delegate on a case-by-case basis. Individual projects with an estimated fee in excess of $50,000 are subject to pre-approval by the Committee or its delegate on a case-by-case basis.

Tax Services

The following categories of tax services are deemed to be consistent with the role of the independent audit firm and, as such, will be considered for pre-approval by the Committee or its delegate, on an annual basis.

• Tax compliance services related to the filing or amendment of the following:

• Federal, state and local income tax compliance, and

• Sales and use tax compliance

• Timely RIC qualification reviews

• Tax distribution analysis and planning

• Tax authority examination services

• Tax appeals support services

• Accounting methods studies

• Fund merger support services

• Tax consulting services and related projects

Notwithstanding any annual pre-approval of these categories of services, individual projects with an estimated fee in excess of $25,000 are subject to pre-approval by the Committee Chair or its delegate on a case-by-case basis. Individual projects with an estimated fee in excess of $50,000 are subject to pre-approval by the Committee or its delegate on a case-by-case basis.

Other Non-audit Services

The SEC auditor independence rules adopted in response to the Sarbanes-Oxley Act specifically allow certain non-audit services. Because of the nature of these services, none of these services may be commenced by the independent audit firm without the prior approval of the Committee. The Committee may delegate this responsibility to one or more of the Committee members, with the decisions presented to the full Committee at the next scheduled meeting.

Proscribed Services

In accordance with SEC rules on independence, the independent audit firm is prohibited from performing services in the following categories of non-audit services:

• Management functions

• Accounting and bookkeeping services

• Internal audit services

• Financial information systems design and implementation

• Valuation services supporting the financial statements

• Actuarial services supporting the financial statements

• Executive recruitment

• Expert services (e.g., litigation support)

• Investment banking

Policy for Pre-approval of Non-Audit Services Provided to Other Entities within the Investment Company Complex

The Committee is also responsible for pre-approving certain non-audit services provided to FAF Advisors, Inc., U.S. Bank N.A., Quasar Distributors, U.S. Bancorp Fund Services, LLC and any other entity under common control with FAF Advisors, Inc., that provides ongoing services to the funds. The only non-audit services provided to these entities which require pre-approval are those services that relate directly to the operations and financial reporting of the funds.

Although the Committee is not required to pre-approve all services provided to FAF Advisors, Inc. and other affiliated service providers, the Committee will annually receive a report from the independent audit firm on the aggregate fees for all services provided to U.S. Bancorp and affiliates.

(e)(2) All of the services described in paragraphs (b) through (d) of this Item 4 that were provided to the registrant on or after May 6, 2003, the effective date of SEC rules relating to the pre-approval of non-audit services, were pre-approved by the audit committee.

(f) All services performed on the engagement to audit the registrant’s financial statements for the most recent fiscal period-end were performed by the principal accountant’s full-time, permanent employees.

(g) The aggregate non-audit fees billed by E&Y to the registrant, the registrant’s investment adviser, and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant, totaled $116,165 in the fiscal period ended June 30, 2006, $144,841 in the fiscal year ended September 30, 2005, and $181,918 in the fiscal year ended September 30, 2004, including services provided prior to May 6, 2003, the effective date of SEC rules relating to the pre-approval of non-audit services.

(h) The registrant’s audit committee has determined that the provision of non-audit services to the registrant’s investment adviser, and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant, that were not pre-approved and that were rendered on or after May 6, 2003 (the effective date of SEC rules relating to the pre-approval of non-audit services), is compatible with maintaining E&Y’s independence.

Item 5—Audit Committee of Listed Registrants

Not applicable.

Item 6—Schedule of Investments

The schedule is included as part of the report to shareholders filed under Item 1 of this Form.

Item 7—Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies

Not applicable.

Item 8—Portfolio Managers of Closed-End Management Investment Companies

Not applicable.

Item 9—Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers

Not applicable.

Item 10—Submission of Matters to a Vote of Security Holders

There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s board of directors, where those changes were implemented after the registrant last provided disclosure in response to the requirements of Item 7(d)(2)(ii)(G) of Schedule 14A (17 CFR 240.14a-101), or this item.

Item 11—Controls and Procedures

(a) The registrant’s Principal Executive Officer and Principal Financial Officer have evaluated the registrant’s disclosure controls and procedures within 90 days of the date of this filing and have concluded that the registrant’s

disclosure controls and procedures were effective, as of that date, in ensuring that information required to be disclosed by the registrant in this Form N-CSR was recorded, processed, summarized and reported timely.

(b) There were no changes in the registrant’s internal control over financial reporting that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting .

Item 12—Exhibits

(a)(1) Not applicable. Registrant’s code of ethics is provided to any person upon request without charge.

(a)(2) Certifications of the Principal Executive Officer and Principal Financial Officer of the registrant as required by Rule 30a-2(a) under the Investment Company Act are filed as exhibits hereto.

(a)(3) Not applicable.

(b) Certifications of the Principal Executive Officer and Principal Financial Officer of the registrant as required by Rule 30a-2(b) under the Investment Company Act are filed as exhibits hereto.

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

First American Investment Funds, Inc.

By:	/s/ Thomas S. Schreier, Jr.
	Thomas S. Schreier, Jr.
	President

Date: September 8, 2006

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By:	/s/ Thomas S. Schreier, Jr.
	Thomas S. Schreier, Jr.
	President

Date: September 8, 2006

By:	/s/ Charles D. Gariboldi, Jr.
	Charles D. Gariboldi, Jr.
	Treasurer

Date: September 8, 2006