Agenda Page 1

LIVE OAK NO. 2

COMMUNITY DEVELOPMENT DISTRICT

JANUARY 15, 2019

AGENDA PACKAGE

Agenda Page 2

Live Oak No. 2 Community Development District

Inframark, Infrastructure Management Services
210 North University Drive Suite 702, Coral Springs, Florida 33071 Phone: 954-603-0033 Fax: 954-345-1292

January 8, 2019

Board of Supervisors

Live Oak No. 2 Community
Development District

Dear Board Members:

The meeting of the Board of Supervisors of the Live Oak No. 2 Community Development District will be held Tuesday, January 15, 2019 at 11:00 a.m. at the Live Oak Clubhouse, 9401 Oak Preserve Boulevard, Tampa, Florida. Following is the advanced agenda for the meeting:

1.	Call to Order and Roll Call
2.	Public Comment on Agenda Items
3.	Organizational Matters
A.	Oath of Office
B.	Resolution 2019-1 Designating Officers
4.	Consent Agenda
A.	Approval of Minutes of the September 18, 2018 Meeting
B.	Financial Report Dated December 31, 2018
5.	Staff Reports
A.	Manager
i.	Acceptance of the FY 2018 Audit Engagement Letter
B.	Attorney
C.	Engineer
i.	Pond Monitoring Report
6.	Supervisors’ Requests
7.	Audience Comments
8.	Adjournment

Any additional supporting material for the items listed above is enclosed or will be distributed at the meeting. The balance of the agenda is routine in nature. If you have any questions, please contact me.

Sincerely,

Andrew P. Mendenhall, PMP
Manager

Agenda Page 3

Third Order of Business

Agenda Page 4

3B.

Agenda Page 5

RESOLUTION 2019-01

A RESOLUTION DESIGNATING OFFICERS OF
LIVE OAK NO. 2
COMMUNITY DEVELOPMENT DISTRICT

WHEREAS, the Board of Supervisors of Live Oak No. 2 Community Development District at a regular business meeting following the General Election on November 6, 2018, desires to appoint the below recited persons to the offices specified.

NOW,  THEREFORE,  BE  IT  RESOLVED  BY  THE
BOARD OF SUPERVISORS OF LIVE OAK NO. 2
COMMUNITY DEVELOPMENT DISTRICT:

1. The following persons were appointed to the offices shown, to wit:

Andrew Mendenhall

Stephen Bloom

Alan Baldwin

Chairman

Vice Chairman

Secretary

Treasurer

Assistant Treasurer

Assistant Secretary

Assistant Secretary

Assistant Secretary

PASSED AND ADOPTED THIS 15TH DAY OF JANUARY, 2019.

Chairperson

Andrew Mendenhall
Secretary

Agenda Page 6

Fourth Order of Business

Agenda Page 7

4A.

Agenda Page 8

MINUTES OF MEETING
LIVE OAK NO. 2
COMMUNITY DEVELOPMENT DISTRICT

A meeting of the Board of Supervisors of the Live Oak No. 2 Community Development

District was held on Tuesday, September 18, 2018 at 11:00 a.m. in the Live Oak Clubhouse, 9401

Oak Preserve Boulevard, Tampa, Florida.

Present and constituting a quorum were:

Elizabeth Hubbard	Chairperson
Ronald Dell	Assistant Secretary
David A. Steele	Assistant Secretary

Also present:

Andy Mendenhall	District Manager
Vinney Galiano	District Engineer
One resident

The following is a summary of the minutes and actions taken.

FIRST ORDER OF BUSINESS	Call to Order and Roll Call
Mr. Mendenhall called the meeting to order and all Board Members were present.

SECOND ORDER OF BUSINESS	Public Comment on Agenda Items
Comments were received.

THIRD ORDER OF BUSINESS	Consent Agenda

A.	Approval of Minutes of the July 24, 2018 Meeting

B.	Financial Report

C.	AMTEC Rebate Report

	ON MOTION by Ms. Hubbard seconded by Mr. Steele with all in favor the Consent Agenda was approved as presented. 3-0

FOURTH ORDER OF BUSINESS	Staff Reports
A.	Manager

Unapproved

Agenda Page 9

September 18, 2018	Live Oak No. 2 CDD

i.	Insurance Renewal Proposal

ON MOTION by Mr. Steele seconded by Ms. Hubbard with all in favor the Proposal from PRIA for the Insurance Policy Renewal was approved. 3-0

B.	Attorney
Discussion regarding ADA Website Compliance ensued.

C.	Engineer

Mr. Galiano reported on the following:

•	King Engineering completed the O&M inspection of Phase 2A Ponds. A memorandum of items in need of repair will be submitted to the Board prior to responding to SWFWMD.

•	Pond 9F 5 will continue to be monitored through October. Discussion ensued regarding monitoring.

•	A monitoring report will be submitted prior the January 15, 2019 Meeting.

FIFTH ORDER OF BUSINESS	Supervisors’ Requests
None.

SIXTH ORDER OF BUSINESS	Audience Comments
None.

SEVENTH ORDER OF BUSINESS	Adjournment

On MOTION by Mr. Dell seconded by Ms. Hubbard with all in favor the meeting was adjourned. 3-0

Elizabeth Hubbard
Chairperson

unapproved

Agenda Page 10

4B

Agenda Page 11

LIVE OAK NO. 2

Community Development District

Financial Report

December 31, 2018

Prepared by:

				Agenda Page 12	
	LIVE OAK NO. 2			
	Community Development District			
					
			Table of Contents	
	FINANCIAL STATEMENTS				
	Balance Sheet	…………………………………………………. Page 1	
	Statement of Revenues, Expenditures and Changes in Fund Balances	
	General Fund	…………………………………………………. Page 2 - 3	
	Debt Service Fund	…………………………………………………. Page 4	
	SUPPORTING SCHEDULES			
				
	Non-Ad Valorem Special Assessments	…………………………………………………. Page 5	
	Cash & Investment Report	…………………………………………………. Page 6	
	SunTrust Bank Reconciliation	…………………………………………………. Page 7	
	Check Register	…………………………………………………. Pages 8-9	

Notes	………………………………………………………………………………………… Page 10

Agenda Page 13

LIVE OAK NO. 2
Community Development District

Financial Statements

(Unaudited)

December 31, 2018

LIVE OAK NO. 2										Agenda Page 14		
									Governmental Funds		
Community Development District											
												
				Balance Sheet									
				December 31, 2018									
									SERIES 2016						
						GENERAL			DEBT						
									SERVICE			TOTAL		
		ACCOUNT DESCRIPTION			FUND			FUND					
	ASSETS												
																
	Cash - Checking Account	$	766,584	$	-	$	766,584			
	Due From Other Funds			-			526,098			526,098			
	Investments:												
	Certificates of Deposit - 12 Months			101,025			-			101,025			
	Money Market Account			239,479			-			239,479			
	Reserve Fund			-			276,408			276,408			
	Revenue Fund			-			60,032			60,032			
											
	TOTAL ASSETS	$	1,107,088	$	862,538	$	1,969,626			
																
	LIABILITIES												
															
	Accounts Payable	$	-	$	-	$	-			
	Due To Other Funds			526,098			-			526,098			
													
	TOTAL LIABILITIES			526,098			-			526,098			
	FUND BALANCES													
	Restricted for:												
	Debt Service			-			862,538			862,538			
	Assigned to:												
	Operating Reserves			52,831			-			52,831			
	Reserves - Ponds			170,751			-			170,751			
	Unassigned:			357,408			-			357,408			
											
	TOTAL FUND BALANCES	$	580,990	$	862,538	$	1,443,528			
											
	TOTAL LIABILITIES & FUND BALANCES	$	1,107,088	$	862,538	$	1,969,626			

1

LIVE OAK NO. 2											Agenda Page 15		
													General Fund		
Community Development District															
																	
						Statement of Revenues, Expenditures and Changes in Fund Balances							
							For the Period Ending December 31, 2018										
										ANNUAL													
					ACCOUNT DESCRIPTION				ADOPTED		YEAR TO DATE			YEAR TO DATE			VARIANCE ($)		
									BUDGET			BUDGET			ACTUAL				FAV(UNFAV)		
		REVENUES																		
			Interest - Investments	$	1,000	$	250	$	976	$	726			
			Special Assmnts- Tax Collector				253,094			233,410			235,490				2,080			
			Special Assmnts- Discounts				(10,124)			(9,339)			(9,409)				(70)			
																			
		TOTAL REVENUES				243,970			224,321			227,057				2,736			
		EXPENDITURES																		
			Administration																	
																						
			P/R-Board of Supervisors				6,000			1,500			-				1,500			
			FICA Taxes				459			115			-				115			
			ProfServ-Arbitrage Rebate				600			-			-				-			
			ProfServ-Dissemination Agent				1,000			-			-				-			
			ProfServ-Engineering				15,000			3,750			1,733				2,017			
			ProfServ-Legal Services				3,000			750			301				449			
			ProfServ-Mgmt Consulting Serv				40,000			10,000			9,713				287			
			ProfServ-Special Assessment				12,500			12,500			12,500				-			
			ProfServ-Trustee Fees				3,717			-			-				-			
			Auditing Services				3,500			-			-				-			
			Postage and Freight				500			125			11				114			
			Insurance - General Liability				9,141			9,141			7,812				1,329			
			Printing and Binding				300			75			47				28			
			Legal Advertising				900			225			-				225			
			Misc-Bank Charges				300			75			110				(35)			
			Misc-Assessmnt Collection Cost				5,062			1,827			4,519				(2,692)			
			Misc-Web Hosting				1,000			1,000			275				725			
			Office Supplies				100			25			-				25			
			Annual District Filing Fee				175			175			175				-			
			Total Administration				103,254			41,283			37,196				4,087			
			Field																		
			Contracts-Envirom'l Monitoring				3,200			1,600			1,600				-			
			Contracts-Landscape				44,238			11,060			11,060				-			
			Contracts-Lakes				16,596			4,149			4,149				-			
			R&M-Fence				5,000			1,250			225				1,025			
			R&M-Lake				7,500			1,875			-				1,875			
			R&M-Wetland Monitoring				8,000			2,000			-				2,000			
			Misc-Contingency				25,000			6,250			(243)				6,493			
			Reserve - Ponds				31,182			-			-				-			
			Total Field				140,716			28,184			16,791				11,393			
																			
		TOTAL EXPENDITURES				243,970			69,467			53,987				15,480			

2

LIVE OAK NO. 2										Agenda Page 16		
												General Fund		
Community Development District														
																
	Statement of Revenues, Expenditures and Changes in Fund Balances							
	For the Period Ending December 31, 2018										
				ANNUAL													
	ACCOUNT DESCRIPTION			ADOPTED		YEAR TO DATE		YEAR TO DATE			VARIANCE ($)		
				BUDGET			BUDGET			ACTUAL				FAV(UNFAV)		
	Excess (deficiency) of revenues																
	Over (under) expenditures			-			154,854			173,070				18,216			
	Net change in fund balance	$	-	$	154,854	$	173,070	$	18,216			
	FUND BALANCE, BEGINNING (OCT 1, 2018)			407,920			407,920			407,920							
	FUND BALANCE, ENDING	$	407,920	$	562,774	$	580,990							

3

LIVE OAK NO. 2													Agenda Page 17		
										Series 2016 Debt Service Fund		
Community Development District												
																
					Statement of Revenues, Expenditures and Changes in Fund Balances					
							For the Period Ending December 31, 2018								
											ANNUAL													
			ACCOUNT DESCRIPTION			ADOPTED		YEAR TO DATE	YEAR TO DATE	VARIANCE ($)		
						BUDGET			BUDGET		ACTUAL		FAV(UNFAV)		
		REVENUES																	
			Interest - Investments	$	-	$	-			$	312		$	312			
			Special Assmnts- Tax Collector			600,454			495,449				558,690			63,241			
			Special Assmnts- Discounts			(24,018)			(19,818)				(22,323)			(2,505)			
																		
		TOTAL REVENUES			576,436			475,631				536,679			61,048			
		EXPENDITURES																	
			Administration																	
			Misc-Assessmnt Collection Cost			12,010			9,909				10,720			(811)			
			Total Administration			12,010			9,909				10,720			(811)			
			Debt Service																	
			Principal Debt Retirement			320,000			-				-			-			
			Interest Expense			231,036			115,518				115,518			-			
			Total Debt Service			551,036			115,518				115,518			-			
																		
		TOTAL EXPENDITURES			563,046			125,427				126,238			(811)			
			Excess (deficiency) of revenues																
			Over (under) expenditures			13,390			350,204				410,441			60,237			
		OTHER FINANCING SOURCES (USES)																	
			Contribution to (Use of) Fund Balance			13,390			-				-			-			
																		
		TOTAL FINANCING SOURCES (USES)			13,390			-				-			-			
		Net change in fund balance	$	13,390	$	350,204			$	410,441		$	60,237			
		FUND BALANCE, BEGINNING (OCT 1, 2018)			452,097			452,097				452,097						
		FUND BALANCE, ENDING	$	465,487	$	802,301			$	862,538						

4

Agenda Page 18

LIVE OAK NO. 2
Community Development District

Supporting Schedules

December 31, 2018

LIVE OAK NO. 2

Agenda Page 19

Community Development District

Non-Ad Valorem Special Assessments (Hillsborough County Tax Collector - Monthly Collection Distributions) For the Fiscal Year Ending September 30, 2019

												ALLOCATION BY FUND	
				Discount /						Gross					
Date		Net Amount		(Penalties)		Tax Coll	Prop Appr		Amount		General	Debt Service	
Received		Rcv'd		Amount		Cost		Cost		Received		Fund		Fund**	
Assessments Levied FY '19								$853,548		$253,094		$600,454	
Allocation %										100%		30%		70%	
11/07/18	$	6,337	$	316.87	$	129	$	-	$	6,783	$	2,011	$	4,772	
11/16/18		32,267		1,372		659		-		34,298		10,170		24,128	
11/26/18		29,309		1,222		588		-		31,119		9,227		21,892	
12/07/18		660,007		28,062		13,470		-		701,539		208,020		493,519	
12/14/18		19,288		760		394		-		20,441		6,061		14,380	
															
TOTAL	$	747,209	$	31,732	$	15,239	$	-	$	794,180	$	235,490	$	558,690	
															
% COLLECTED										93%		93%		93%	
															
TOTAL O/S									$	59,368	$	17,604	$	41,764	

5

														Agenda Page 20		
	LIVE OAK NO. 2														All Funds		
	Community Development District															
																			
					Cash and Investment Report												
						December 31, 2018												
																			
	General Fund																		
	Account Name		Bank Name		Investment Type	Maturity		Yield				Balance		
																				
	Checking Account-Operating		SunTrust	Checking Account	n/a	0.00%			$766,584			
	Certificate of Deposit	Florida Community Bank	12 MO CD - #2700	01/17/19		0.45%			101,025			
	MMA-0186		BankUnited	Money Market Account	n/a	0.78%			239,479			
											Total-GF						
														$1,107,088			
																			
	Debt Service Funds																		
	Account Name		Bank Name		Investment Type	Maturity		Yield				Balance		
																				
	Series 2016 Reserve Fund		US Bank	US Bank Open Ended CP	03/01/19		0.00%			276,408			
	Series 2016 Revenue Fund		US Bank	US Bank Open Ended CP	03/01/19		0.00%	(2)	60,032			
											Total-DS						
														$337,145			
												Total						
															$1,444,234			

6

Live Oak No. 2 CDD	Agenda Page 21	
Bank Reconciliation			
Bank Account No.	9534	SunTrust Bank N.A. - GF	
Statement No.	12-18		
Statement Date	12/31/2018		

G/L Balance (LCY)	766,584.38		Statement Balance	766,584.38				
	G/L Balance	766,584.38		Outstanding Deposits	0.00				
Positive Adjustments	0.00	Subtotal						
			766,584.38				

	Subtotal	766,584.38		Outstanding Checks	0.00				
Negative Adjustments	0.00	Differences	0.00				
Ending G/L Balance				Ending Balance						
	766,584.38			766,584.38				
	Difference	0.00							
Posting	Document	Document				Cleared			
Date	Type	No.	Description	Amount	Amount	Difference		

7

Agenda Page 22

							LIVE OAK NO. 2					
					Community Development District					
													
							Payment Register by Fund					
						For the Period from 10/1/2018 to 12/31/2018					
						(Sorted by Check / ACH No.)					
													
	Fund	Check /	Date	Payee		Invoice No.		Payment Description	Invoice / GL Description	G/L Account #	Amount		
	No.	ACH No.									Paid		

	GENERAL FUND - 001										
001	003714	10/04/18	AMERICAN ECOSYSTEMS, INC	1809797		OCT WATER MGMT SVCS	Contracts-Lakes	534084-53901	$1,383.00		
001	003715	10/09/18	FLORIDA NATIVES NURSERY, INC	15647		QRTRLY MITICATION MAINT	Contracts-Envirom'l Monitoring	534017-53901	$800.00		
001	003716	10/09/18	LANDSCAPE MAINTENANCE	137032		OCTOBER LANDSCAPE MAINT	OCTOBER	534050-53901	$3,686.50		
001	003717	10/09/18	SCHREUDER, INC.	18-113		ASSESS SURFACE WATER DECLINE	ProfServ-Engineering	531013-51501	$4,437.00		
001	003718	10/09/18	STRALEY &  ROBIN	16233		GEN MATTERS THRU 9/15/18	ProfServ-Legal Services	531023-51401	$90.00		
001	003719	10/10/18	PUBLIC RISK AGENCY	57737	0294040 17-12 10/1/17-10/1/19	Insurance - General Liability	545002-51301	$7,812.00		
001	003720	10/11/18	TIMES PUBLISHING	685304		NOTICE OF MEETING 9/21/18	Legal Advertising	548002-51301	$318.50		
001	003721	10/15/18	DEPT OF ECONOMIC OPPORTUNITY	72258		FY18/19 DISTRICT FILING FEES	Annual District Filing Fee	554007-51301	$175.00		
001	003722	10/24/18	KING ENGINEERING ASSOCIATES, I	102717		ENGG SVCS THRU SEP 2018	ProfServ-Engineering	531013-51501	$923.50		
001	003723	10/26/18	INFRAMARK, LLC	35100		OCT 2018 MGMT FEES	ProfServ-Mgmt Consulting Serv	531027-51201	$3,333.33		
001	003723	10/26/18	INFRAMARK, LLC	35100		OCT 2018 MGMT FEES	Postage and Freight	541006-51301	$4.70		
001	003723	10/26/18	INFRAMARK, LLC	35100		OCT 2018 MGMT FEES	Printing and Binding	547001-51301	$31.35		
001	003723	10/26/18	INFRAMARK, LLC	35100		OCT 2018 MGMT FEES	Misc-Web Hosting	549915-51301	$83.33		
001	003724	10/26/18	STRALEY &  ROBIN	16355		GEN MATTERS THRU 10/15/18	ProfServ-Legal Services	531023-51401	$136.20		
001	003725	10/31/18	LANDSCAPE MAINTENANCE	138097		SEPT GRNDS MAINT	OCTOBER	534050-53901	$3,686.50		
001	003726	11/01/18	AMERICAN ECOSYSTEMS, INC	1811202		NOVEMBER WATER MGMT	Contracts-Lakes	534084-53901	$1,383.00		
001	003727	11/09/18	DRIGGERS ENGINEERING SERVICE		TL12324		SOIL INSPECTION	ProfServ-Engineering	531013-51501	$300.00		
001	003728	11/15/18	FLORIDA NATIVES NURSERY, INC	15792		QRTRLY MITIGATION MAINT	Contracts-Envirom'l Monitoring	534017-53901	$800.00		
001	003729	11/20/18	KING ENGINEERING ASSOCIATES, I	103134		ENGG SVCS THRU OCT 2018	ProfServ-Engineering	531013-51501	$1,432.75		
001	003730	11/27/18	INFRAMARK, LLC	35935		NOV MGMT FEES	ProfServ-Mgmt Consulting Serv	531027-51201	$3,141.67		
001	003730	11/27/18	INFRAMARK, LLC	35935		NOV MGMT FEES	Postage and Freight	541006-51301	$4.70		
001	003730	11/27/18	INFRAMARK, LLC	35935		NOV MGMT FEES	Printing and Binding	547001-51301	$7.90		
001	003730	11/27/18	INFRAMARK, LLC	35935		NOV MGMT FEES	WEB HOSTING	549915-51301	$41.67		
001	003730	11/27/18	INFRAMARK, LLC	35935		NOV MGMT FEES	WEB TRFR	549915-51301	$85.00		
001	003733	11/30/18	BIG DOG FENCE		181120-I		FENCE REPAIRS	R&M-Fence	546025-53901	$225.00		
001	003734	11/30/18	STRALEY &  ROBIN	16458		GEN MATTERS THRU 11/15/18	ProfServ-Legal Services	531023-51401	$165.00		
001	003735	12/03/18	AMERICAN ECOSYSTEMS, INC	1812206		DEC WATER MGMT	Contracts-Lakes	534084-53901	$1,383.00		
001	003736	12/03/18	LANDSCAPE MAINTENANCE	138846		DEC GRND MAINT	OCTOBER	534050-53901	$3,686.50		
001	003737	12/20/18	INFRAMARK, LLC	36737		DEC MGMT FEES	ProfServ-Mgmt Consulting Serv	531027-51201	$3,237.50		
001	003737	12/20/18	INFRAMARK, LLC	36737		DEC MGMT FEES	Postage and Freight	541006-51301	$1.88		
001	003737	12/20/18	INFRAMARK, LLC	36737		DEC MGMT FEES	Printing and Binding	547001-51301	$7.30		

8

Agenda Page 23

						LIVE OAK NO. 2					
				Community Development District					
												
						Payment Register by Fund					
					For the Period from 10/1/2018 to 12/31/2018					
					(Sorted by Check / ACH No.)					
												
Fund	Check /	Date	Payee		Invoice No.		Payment Description	Invoice / GL Description	G/L Account #	Amount		
No.	ACH No.									Paid		

001	003737	12/20/18	INFRAMARK, LLC	36737		DEC MGMT FEES	Misc-Web Hosting	549915-51301	$64.58		
001	003737	12/20/18	INFRAMARK, LLC	36737		DEC MGMT FEES	ProfServ-Special Assessment	531038-51301	$12,500.00		
									Fund Total			
										$55,368.36		

									Total Checks Paid	$55,368.36		

9

Agenda Page 24
LIVE OAK NO. 2

Community Development District	Governmental Funds

Notes to the Financial Statements

Assets

►	The District has 1 Money Market Account and 1 CD.  See cash report for additional information.

Fund Balance

►	The Reserves for FY18 have been assigned.

General Fund

►	Special Assessments are 93.04% collected.

►	Total Expenditures are 22.12% of the Annual Adopted Budget.

	Debt Service Fund

►	Special Assessments are 93.04% collected.

►	Interest Expense of $ 115,518 was paid in November .

10

Agenda Page 25

Fifth Order of Business

Agenda Page 26

5Ai.

~~ti

,OJ

Agenda Page 27

Berger,	Toombs, Elam,														
Gaines	& Frank																		
Certified  Public Accountants	PL																		
600 Citrus Avenue																			
Suite 200																				
Fort Pierce, Florida 34950																		
772/461-6120	// 461-1155																		
FAX: 772/468-9278																			
August 28,	2018																			
Live Oak No. 2 Community Development District											
c/o lnframark Infrastructure Management Services											
210 North University Drive, Suite 702													
Coral Springs, FL	33071																		
The Objective and Scope	of	the Audit of the Financial	Statements							

You  have  requested that we  audit the financial  statements  of Live  Oak No.	2 Community		
Development District, which comprise governmental activities, a discretely presented component		
unit, each major fund and the budgetary comparison for the General	Fund as of and for the year		
ended September	30, 2018 which	collectively comprise the basic financial statements. We are		
		and our understanding	of	this audit engagement		by means of		
pleased to confirm our acceptance							
							
		30,	2018 and thereafter	for two annual renewals if		
this letter for the year ending	September					
											
mutually agreed by Live Oak No. 2 Community Development District and Berger, Toombs, Elam,		
Gaines, & Frank, Certified Public Accountants,	PL.											
Our audit will be conducted	with the objective of expressing	an	opinion on the financial	statements.		

The Responsibility of the Auditor													
We will conduct the audit in accordance with auditing standards generally	accepted	in the United		
States of America and "Government Auditing Standards" issued by the Comptroller General of		
the  United  States.  Those  standards  require that we  plan  and  perform  the  audit to  obtain		
reasonable assurance about whether the financial statements are free of material misstatement.		
An  audit involves	performing		procedures	to	obtain  audit	evidence	about the	amounts  and		
										the  auditor's		
					The  procedures	selected  depend  on				
disclosures	in the	financial	statements.						
													
judgment,  including  the  assessment  of the  risks  of material  misstatement  of the  financial		
statements, whether due to fraud or error.  An audit also includes evaluating the appropriateness		
of accounting policies used and the reasonableness	of significant accounting estimates made by		
management, as well as evaluating the overall presentation of the financial statements.		

Fort Pierce / Stuart

Member AICPA	Member AICPA Division For CPA Firms	Member FICPA

Private Companies Practice Section

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Agenda Page 28

Berger, Toombs, Elam,
Gaines & Frank

CertlliedPublicAa:ouni..n1,	Pl

Live Oak No. 2 Community	Development District																
																					
August	28, 2018																							
Page 2																								
Because of the inherent limitations	of an	audit, together with the inherent	limitations of internal		
							exists, even		
control,	an unavoidable risk that some material	misstatements may not be detected			
				accepted		
though	the audit is properly	planned and performed in		accordance	with generally			
auditing standards.  Also,	an	audit is not designed	to detect errors or fraud that are immaterial	to		
						
the  financial  statements. The  determination  of abuse	is  subjective;  therefore,  Government		
Auditing Standards do not expect us to provide reasonable assur~nce of detecting abuse.				
In making  our risk  assessments,  we  consider	internal		control	relevant to  Live  Oak No.	2		
Community Development	District'spreparation	and fair presentation	of the financial statements		
							but not for the		
in order to design audit procedures that are appropriate	in the circumstances			
purpose of expressing	an	opinion on the effectiveness of the entity'sinternal	control.	However,		
we  will  communicate	to		you  in  writing	concerning  any  significant  deficiencies  or  material		
				to the	audit of the financial statements that	we have		
weaknesses in internal control relevant					
identified during the audit.																						
We will also communicate to the Board any fraud involving senior management and fraud that		
causes a material misstatement of the financial statements	that becomes known	to us during	the		
						
audit, and any instances of noncompliance with laws and regulations that we become aware of		
during the audit.																							
The funds that you have told us are maintained	by Live Oak No. 2 Community	Development		
District and that are to	be	included as part of our audit are listed below:											
1.	General Fund																							
2.	Debt Service Fund																					

~~b
,QI

Berger,
Gaines

Toombs ,
& Frank

Agenda Page 29

Elam,

Live Oak No. 2 Community Development	District		
			
August	28,	2018			
Page 3					

The	Responsibilities

Reporting Framework

of

Management	and	Identification	of	the	Applicable	Financial

Our audit will be conducted

it has responsibility:

on

the

basis that management acknowledges

and

understands that

1.

2.

For the preparation and fair presentations	of the financial statements	in accordance	with		
					
accounting principles generally accepted	in the United States of America;			
						
To evaluate subsequent events through the date the financial statements are issued or		
available to	be issued, and to disclose	the date through which subsequent events were		
evaluated in	the financial statements. Management also agrees that	it will not evaluate		
subsequent events earlier than the date of the management representation letter referred		
to below;								

3.	For the design, preparation and

implementation,
fair presentation

and

of

maintenance of internal control relevant	to	the		
				
financial  statements that are free from  material		

misstatement,

whether due

to fraud

or error;

4.	For establishing and maintaining effective internal control of financial

informing us of all significant deficiencies and material weaknesses
operation of such controls of which it has knowledge; and

reporting and for

in the design or

5.  To provide us with:		is relevant to the		
a.	Access to all information of which management is aware that				
	preparation and fair presentation of the financial statements such	as records,		
	documentation and other matters;	for the purpose of		
b.  Additional information that we may request from management			
						
	the audit; and		we	determine	it		
c.	Unrestricted  access to persons within the  entity from  whom					
						
	necessary to obtain audit evidence.						

~fl
,t;J

Agenda Page 30

Berger, Toombs, Elam,
Gaines & Frank

~rtmect Public Acc.otmt.an1,	Pl

Live Oak No. 2 Community		Development District																					
																																		
August 28, 2018																																			
Page 4																																			
Management  is  responsible		for	identifying  and  ensuring	that	Live  Oak	No.	2		Community		
																					
Development District complies with the laws and regulations applicable to its activities, and for		
informing  us about  all  known	material  violations  of such  laws  or regulations.	In	addition,		
			controls	to		
management is responsible	for the design and implementation	of programs and					
							
prevent and detect fraud or abuse,		and for informing	us about all known	or suspected fraud or		
							roles in internal		
abuse affecting the entity involving management, employees who have significant			
control,  and others where		the fraud	or abuse	could		have	a material effect on the	financial		
statements or compliance.  Management is also responsible	for informing us of its knowledge	of		
		in		
any allegations of fraud or abuse,		or,	suspected fraud or abuse	affecting the entity received			

communications from employees, former employees, analysts, regulators, short sellers, or others.		
The Board is responsible for informing	us	of its views about the risks of fraud or abuse	within the		
							
					or, suspected fraud or abuse	affecting the entity.		
entity, and its knowledge	of	any fraud or abuse,				
													
Live Oak No. 2 Community	Development District agrees	that it will not associate	us with any public		
							Therefore,	Live		Oak No.	2		
or private securities offering without first obtaining our consent.								
Community Development	District agrees to contact us	before	it includes our reports or otherwise		
									or private securities offering.																
makes reference to us, in any public																	
																											
Because  Berger,  Toombs,	Elam,		Gaines	&	Frank will  rely  on	Live  Oak	No.	2		Community		
										and Board	of Supervisors	to discharge the foregoing		
Development District and its management					
															
responsibilities,  Live Oak No. 2 Community Development District holds harmless and releases		
Berger, Toombs, Elam, Gaines	&	Frank, its partners, and employees	from all	claims,	liabilities,		
				misrepresentation by a		
						where there has been a known			
losses and costs arising in	circumstances				
													
member of Live Oak No. 2 Community Development District'smanagement, which has caused,		
in any respect, Berger, Toombs, Elam, Gaines	& Frank'sbreach of	contract or negligence.	This		
provision shall survive the termination of this arrangement for services.												
Live Oak No. 2 Community Development District'sRecords and Assistance								
If circumstances arise relating to the condition of the Live Oak No. 2 Community Development		
District'srecords, the availability of appropriate audit evidence, or indications of a significant risk		
of material misstatement	of		the	financial	statements,  because	of	error,	fraudulent	financial		
reporting, or misappropriation	of assets, which,	in our professional judgment, prevent us from		
		an	opinion, we	retain the unilateral		right to take any course of		
completing the audit or forming							
									opinion, issuing	a		
	standards, including:	declining	to express an				
action permitted by professional							

																														
report, or withdrawing from engagement.																									
During the course of our engagement,	we	may accumulate records	containing data that should		
																
				Development District'sbooks and records.  The		
be reflected in the Live Oak No. 2 Community			
District will determine that all such data, if necessary,	will be so reflected. Accordingly,	the District		
							
will not expect us to maintain copies of such records	in		our possession.												

S:~t

,O,,

Agenda Page 31

Berger, Toombs, Elam,
Gaines & Frank

Live Oak No. 2 Community Development		District													
																
August 28, 2018																		
Page 5																			
Other Relevant Information																		
In accordance with Government Auditing	Standards, a copy of our most recent peer review report		
																
has been provided to you, for your information.													
Fees, Costs, and Access to Workpapers														
Our fees for the audit and accounting services described above are based upon the value of the		
services performed and the time required by the individuals assigned to the engagement, plus		
direct expenses. Invoices for fees will be	submitted in	sufficient detail to demonstrate compliance		
with the terms of this engagement. Billings are due upon submission. Our fee for the services		
described in this letter for the year ending September	30, 2018, will not exceed $3,500, unless		
the scope of the engagement is changed, the assistance which Live Oak	No. 2 Community		
Development  District  has  agreed  to  furnish  is	not  provided,  or unexpected  conditions  are		
encountered, in which case, we will discuss the situation with you before proceeding.	All other		
provisions of this letter will survive any fee adjustment.	The two annual renewals must be	mutually		
agreed and approved by the Board of Supervisors.												
In the event we	are requested or authorized by Live Oak No. 2 Community Development	District		
or are required	by government regulation,	subpoena,	or other legal process to produce our		
documents or our personnel as witnesses with respect to our engagement for Live Oak No.	2		
Community Development District, Live Oak	No. 2 Community	Development District will , so long		
			is sought, reimburse us	for our		
as we are not a party to the proceeding	in which the information				
professional time and expenses, as	well		as	the fees and expenses of our counsel, incurred	in		
responding to such requests .																		
The documentation for this engagement	is	the property of Berger, Toombs,	Elam, Gaines,	&		
Frank. However, you acknowledge and grant your assent that representatives of the cognizant or		
oversight agency or their designee,	other government audit staffs, and the	U.S. Government		
Accountability Office shall have access to the audit documentation	upon their request and	that we		
shall maintain the audit documentation	for a period of	at least three years after the date of the		
					to do		so by the cognizant or oversight	agency.		
report, or for a longer period if we are requested						
								
Access to requested documentation	will	be	provided under the supervision	of Berger, Toombs,		
										
Elam, Gaines, & Frank audit personnel and at a location designated by our Firm.					

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Agenda Page 32

Berger, Toombs, Elam,
Gaines & Frank

CenUied Publk Account~nl1	PL

Live Oak No. 2 Community Development District									
August	28, 2018												
Page6													
Reporting												
We will  issue a written report	upon completion  of our audit of Live Oak	No. 2 Community		
Development District'sfinancial statements. Our report will be addressed to the Board of Live Oak		
No. 2 Community Development	District. We cannot provide	assurance that an unmodified	opinion		
					
				for us to modify our opinion,		
		may arise in which it	is necessary			
will be expressed. Circumstances					
								
add an emphasis-of-matter or other-matter paragraph(s) , or withdraw from the engagement.		
In  addition  to  our  report  on	Live  Oak  No.  2  Community	Development	District's financial		
statements, we will also issue the following types of reports:							
•	Reports on internal control	and compliance with laws, regulations, and the provisions of		
			We will report	on	any internal	control findings and/or		
	contracts or grant agreements.						
									
	noncompliance which could have a material effect on the financial statements.			

This letter constitutes the complete and	
Toombs,  Elam,  Gaines	&  Frank  and	
superseding all proposals, oral or written,	
of the engagement between the parties.	
Please sign and return the attached copy	
agreement  with,  the  arrangements  for	
respective responsibilities.	
3~ J(J{)tfw	rl/J/)1v	
0xJ/liAw ~-JJlafj_	
Berger, T oombs, Elam, Gaines & Frank	
J. W. GAINES, CPA		
Confirmed on behalf of the addressee:	

exclusive	statement of agreement	between	Berger,		
			District,		
Live	Oak	No.  2	Community  Development			
and	all other communication,	with respect to the terms		
							
of this letter to indicate your acknowledgement	of,	and		
		our		
our	audit	of the	financial  statements  including			

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Agenda Page 33

Judson B. Baggett	ti	681 5 Dairy Road

MBA, CPA, CVA, Partner	Zephyrhills, FL 33542

Marci Reutimann	"') (813) 788-2155

CPA, Partner	A	(813) 782-8606

System Review Report

To the Directors November 2, 2016 Berger, Toombs, Elam, Gaines & Frank, CPAs PL

and the Peer Review Committee of the Florida Institute of Certified Public Accountants

We have reviewed the system of quality control for the accounting and auditing practice of Berger, Toombs, Elam, Gaines & Frank, CPAs PL (the firm), in effect for the year ended May 31, 2016. Our peer review was conducted in accordance with the Standards for Performing and Reporting on Peer Reviews established by the Peer Review Board of the American Institute of Certified Public Accountants. As a part of our peer review, we considered reviews by regulatory entities, if applicable, in determining the nature and extent of our procedures. The firm is responsible for designing a system of quality control and complying with it to provide the firm with reasonable assurance of performing and reporting in conformity with applicable professional standards in all material respects. Our responsibility is to express an opinion on the design of the system of quality control, and the firm'scompliance therewith based on our review. The nature, objectives, scope, limitations of, and the procedures performed in a System Review are described in the standards at www.alq;>a .org/prsummary .

As required by the standards, engagements selected for review included engagements performed under Government Auditing Standards and audits of employee benefit plans.

In our opinion, the system of quality control for the accounting and auditing practice of Berger, Toombs, Elam, Gaines & Frank, CPAs PL in effect for the year ended May 31, 2016 has been suitably designed and complied with to provide the firm with reasonable assurance of performing and reporting in conformity with applicable professional standards in all material respects. Firms can receive a rating of pass, pass with deficiency(ies), or fail. Berger, Toombs, Elam, Gaines & Frank, CPAs PL, has received a peer review rating of pass.

L~~  ~~­

Bag~ . R~utimann & Associates, CPAs, PA

(BERGER_REPORTl6)

f/i,:,rnb"r /vrmricrrn  ln,t1t11IP of Certified Public /~c< o•J11lw1t, (AICPAJ c111d r I, ,min  lmtit11te of Cert1f1Prl F'ohl1r />,uo11nlnnl;  (FI( f't1)

I-Jot1onol A~socir1t10,1 of Cert1fmd Vrrlu11t1on Anoly',h  It l/1CV/,.)

Agenda Page 34

ADDENDUM

ELAM,

TO ENGAGEMENT LETTER BETWEEN		
GAINES AND FRANK AND LIVE	OAK	II		
				
DEVELEOPMENT DISTRICT			
(DATED AUGUST 28, 2018)			

BERGER, TOOMBS,

COMMUNITY

Public  Records.	Auditor	
119.0701, Florida Statutes, comply	
and specifically shall:		

shall,  pursuant  to  and  in  accordance  with  Section

with the public records laws of the State of Florida,

a.

Keep and maintain public records required by the District to perform the

services or work set forth in this Agreement; and

b.

Upon the request of	the District's custodian of public records,	provide the	
District with a copy	of the requested	records  or allow the  records to  be	
inspected or copied within a reasonable time at a cost that does not exceed	
the cost provided in Chapter 119, Florida Statutes, or as otherwise provided	
by law; and				

c.

Ensure that public records that are exempt or confidential and exempt from		
public  records  disclosure  requirements  are  not  disclosed	except	as		
authorized  by  law  for  the  duration	of the  contract  term  and  following		
completion of the Agreement	if the Auditor does not transfer the records to		
						
the District; and						

d.

Upon completion of the Agreement,	transfer, at no cost to the District, all		
public records  in possession	of	the Auditor or keep  and maintain	public		
				for		
		to	perform the service or work provided			
records required by the District					
					
			transfers all public records to the District		
in this Agreement.  If the Auditor			
upon completion of the Agreement, the Auditor shall destroy any duplicate		
public  records  that  are  exempt	or  confidential  and  exempt  from  public		
disclosure requirements. If the Auditor	keeps and maintains public records		
upon completion of the Agreement,	the Auditor shall meet all applicable		
requirements for retaining public records.  All records stored electronically		
must be provided to the District,	upon request from the District's custodian		
	that  is  compatible  with  the  information		
of public  records,  in  a  format			
								
technology systems of the District.							

Auditor acknowledges that any requests to inspect or copy public records relating		
to this Agreement must be made directly to the District pursuant to Section 119.0701(3),		
Florida Statutes.  If notified by the District of a public	records request for records not in		
the possession of the District but in possession of the Auditor,	the Auditor shall provide		
such records  to  the  District or allow  the  records  to		be  inspected	or copied  within  a		
reasonable time.  Auditor acknowledges that should	Auditor fail  to	provide the public		
			may be  subject to penalties		
records to  the  District within a reasonable time,  Auditor			

pursuant

to

Section

119.10,

Florida

Statutes.

Agenda Page 35

IF THE AUDITOR	HAS QUESTIONS REGARDING THE		
			119, FLORIDA STATUTES, TO		
APPLICATION	OF CHAPTER			
		PROVIDE	PUBLIC  RECORDS		
				TO				
THE  AUDITOR'S  DUTY					
RELATING	TO	THIS	AGREEMENT/CONTRACT,   THE		
AUDITOR  MAY  CONTACT  THE  CUSTODIAN  OF  PUBLIC		
RECORDS FOR	THE DISTRICT AT:			
								
INFRAMARK							
INFRASTRUCTURE MANAGEMENT SERVICES		
210 NORTH UNIVERSITY DRIVE, SUITE 702		
CORAL SPRINGS,	FL 33071			
						
TELEPHONE: 954-603-0033			

EMAIL:

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Auditor: J.W. Gaines
By:	~

Title:  Directo7

Date:	September 12, 2018

District: Live Oak II COD		
By:			
Title:	-		
			
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Date:	-   -		
			
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