LIVE OAK NO. 2 COMMUNITY DEVELOPMENT DISTRICT

September 15, 2020

AGENDA PACKAGE

Meeting: ID: 226 115 9400 One tap
mobile-13017158592 Passcode: 2261159400#

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

September 8, 2020 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, September 15, 2020 at 11:00 a.m. virtually. Meeting: ID: 226 115 9400 One tap mobile-13017158592 Passcode: 2261159400#. Following is the advanced agenda for the meeting. Following is the advanced agenda for the meeting:

Call to Order

Public Comment on Agenda Items

Consent Agenda
Approval of Minutes of the July 21, 2020 Meeting
Financial Report
Acceptance of FY 2020 Audit Engagement Letter

Staff Reports
Managers Report

Supervisors’ Requests

Audience Comments

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

Third Order of Business

3A.

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, July 21, 2020 at 6:30 p.m. virtually. Meeting: ID: 226 115 9400 One tap mobile-13017158592 Passcode: 2261159400#.

Present and constituting a quorum were:

Elizabeth Hubbard	Chairperson
Kathleen Thatcher	Vice Chairperson
Ronald Dell	Assistant Secretary
Richard Thatcher	Assistant Secretary
David A. Steele	Assistant Secretary Also, present:
Andy Mendenhall	District Manager
Vincent Galiano	District Engineer

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
None

THIRD ORDER OF BUSINESS	Consent Agenda
Approval of Minutes of the May 21, 2020 Meeting
Financial Report
Proposed Meeting Dates for FY 2021
Edit to the sixth order of business was made.

ON MOTION by Mr. Steele seconded by Ms. Hubbard with all in favor the Consent Agenda was approved as amended. 5-0

July 21, 2020	Live Oak No. 2 CDD

FOURTH ORDER OF BUSINESS	Public Hearing to Consider Adoption of
the Budget for Fiscal Year 2021

ON MOTION by Mr. Steele seconded by Ms. Hubbard, with all in favor, the Public Hearing to Consider the Adoption of the Budget for Fiscal Year 2021 was opened. 5-0

ON MOTION by Mr. Thatcher seconded by Mr. Dell, with all in favor, the Public Hearing to Consider the Adoption of the Budget for Fiscal Year 2021 was closed. 5-0

Consideration of Resolution 2020-3 Adopting the FY 2020 Budget

Mr. Thatcher MOVED to adopt Resolution 2020-03 Relating to the Annual Appropriations of the District and Adopting the Budget for the Fiscal Year Beginning October 1, 2020 and Ending September 30, 2021; And Referencing the Operations and Maintenance Special Assessments to be Levied by the District for Said Fiscal Year and Mr. Dell seconded it.

On VOICE vote, with all in favor, Resolution 2020-03 was adopted.

Consideration of Resolution 2020-04 Levy of Non-Ad Valorem Assessments

ON MOTION by Ms. Thatcher seconded by Mr. Dell, with all in favor, Resolution 2020-04, Levying and Imposing Special Assessments; Providing for Collection and Enforcement of Special Assessments; Adopting and Certifying  an  Assessment  Roll;  Providing  for Amendment  of  the  Assessment  Roll;  Providing   a   Severability Clause; and Providing an Effective Date, was adopted. 5-0

FIFTH ORDER OF BUSINESS	Staff Reports
Manager’s Report
Mr. Mendenhall reported on the concerns regarding the input of the Well in the community.
Brief discussion ensued.

unapproved

July 21, 2020	Live Oak No. 2 CDD

SIXTH ORDER OF BUSINESS	Supervisor Request’s	
None.		

SEVENTH ORDER OF BUSINESS	
Audience Comments	
Audience comments were received .		

EIGHTH ORDER OF BUSINESS	
Adjournment	

On MOTION by Ms. Hubbard seconded by Mr. Steele, with all in favor, the meeting was adjourned. 5-0

Elizabeth Hubbard
Chairperson

unapproved

3B.

LIVE OAK NO. 2
Community Development District

Financial Report
July 31, 2020

Prepared by:

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	Page 8

Notes	Page 9

LIVE OAK NO. 2
Community Development District

Financial Statements
(Unaudited)

July 31, 2020

Balance Sheet
July 31, 2020

SERIES 2016 DEBT
GENERAL	SERVICE
ACCOUNT DESCRIPTION	FUND	FUND	TOTAL

ASSETS

Cash - Checking Account	$	14,980	$	-	$	14,980	
Due From Other Funds	-	13,747	13,747	
Investments:				
Certificates of Deposit - 6 Months	103,565	-	103,565	
Money Market Account	468,340	-	468,340	
Reserve Fund	-	276,074	276,074	
Revenue Fund	-	198,256	198,256	
Prepaid Items	1,986	-	1,986	
TOTAL ASSETS	$	588,871	$	488,077	$ 1,076,948	

LIABILITIES				
Accounts Payable	$	513	$	-	$	513	
Accrued Expenses	2,633	-	2,633	
Due To Other Funds	13,747	-	13,747	
TOTAL LIABILITIES	16,893	-	16,893	

FUND BALANCES				
Nonspendable:				
Prepaid Items	1,986	-	1,986	
Restricted for:				
Debt Service	-	488,077	488,077	
Assigned to:				
Operating Reserves	53,197	-	53,197	
Reserves - Ponds	201,933	-	201,933	
Unassigned:	314,862	-	314,862	
TOTAL FUND BALANCES	$	571,978	$	488,077	$ 1,060,055	
				
TOTAL LIABILITIES & FUND BALANCES	$	588,871	$	488,077	$ 1,076,948	

1

Statement of Revenues, Expenditures and Changes in Fund Balances
For the Period Ending July 31, 2020

ANNUAL
	ADOPTED	YEAR TO DATE	YEAR TO DATE	VARIANCE ($)	
ACCOUNT DESCRIPTION	BUDGET	BUDGET	ACTUAL	FAV(UNFAV)	

REVENUES					

Interest - Investments	$	3,000	$	2,500	$	4,138	$	1,638	
Interest - Tax Collector	-	-	168	168	
Special Assmnts- Tax Collector	253,093	253,093	253,093	-	
Special Assmnts- Discounts	(10,124)	(10,124)	(9,539)	585	

TOTAL REVENUES	245,969	245,469	247,860	2,391	

EXPENDITURES					
Administration					
P/R-Board of Supervisors	6,000	5,000	3,600	1,400	
FICA Taxes	459	383	275	108	
ProfServ-Arbitrage Rebate	600	500	600	(100)	
ProfServ-Dissemination Agent	1,000	833	-	833	
ProfServ-Engineering	15,000	12,500	23,969	(11,469)	
ProfServ-Legal Services	3,000	2,500	1,131	1,369	
ProfServ-Mgmt Consulting Serv	40,000	33,333	33,333	-	
ProfServ-Special Assessment	12,500	10,417	12,500	(2,083)	
ProfServ-Trustee Fees	3,971	3,971	3,870	101	
Auditing Services	3,500	3,500	3,500	-	
Postage and Freight	500	417	143	274	
Insurance - General Liability	8,593	8,593	7,812	781	
Printing and Binding	300	250	106	144	
Legal Advertising	900	750	2,801	(2,051)	
Miscellaneous Services	300	250	292	(42)	
Misc-Assessmnt Collection Cost	5,062	5,062	4,855	207	
Misc-Web Hosting	1,000	833	3,734	(2,901)	
Office Supplies	100	83	-	83	
Annual District Filing Fee	175	175	175	-	
Total Administration	102,960	89,350	102,696	(13,346)	

2

Field

Statement of Revenues, Expenditures and Changes in Fund Balances
For the Period Ending July 31, 2020

ANNUAL	
ADOPTED	YEAR TO DATE	YEAR TO DATE	VARIANCE ($)	
ACCOUNT DESCRIPTION	BUDGET	BUDGET	ACTUAL	FAV(UNFAV)	

Contracts-Envirom'l Monitoring	3,200	2,667	3,200	(533)	
Contracts-Landscape	44,238	36,865	36,865	-	
Contracts-Lakes	16,596	13,830	13,830	-	
R&M-Fence	5,000	4,167	-	4,167	
R&M-Lake	7,500	6,250	3,350	2,900	
R&M-Wetland Monitoring	8,000	6,667	-	6,667	
Misc-Contingency	26,065	21,721	640	21,081	
Reserve - Ponds	31,182	25,985	-	25,985	
Total Field	141,781	118,152	57,885	60,267	

TOTAL EXPENDITURES	244,741	207,502	160,581	46,921

1,228	37,967	87,279	49,312	

1,228	

-	

-	

-	

Excess (deficiency) of revenues Over (under) expenditures

OTHER FINANCING SOURCES (USES)

Contribution to (Use of) Fund Balance
TOTAL FINANCING SOURCES (USES)

Net change in fund balance	

$	1,228

1,228	

$	-

37,967	

$	-

87,279	

$	-

49,312	
FUND BALANCE, BEGINNING (OCT 1, 2019) FUND BALANCE, ENDING	

$	
484,699

485,927	

$	
484,699

522,666	

$	
484,699

571,978			

3

Statement of Revenues, Expenditures and Changes in Fund Balances
For the Period Ending July 31, 2020

ANNUAL
ADOPTED	YEAR TO DATE	YEAR TO DATE	VARIANCE ($)
ACCOUNT DESCRIPTION	BUDGET	BUDGET	ACTUAL	FAV(UNFAV)

REVENUES

Interest - Investments	$	-	$	-	$	3,275	$	3,275	
Special Assmnts- Tax Collector	600,454	600,454	600,454	-	
Special Assmnts- Discounts	(24,018)	(24,018)	(22,631)	1,387	
TOTAL REVENUES	576,436	576,436	581,098	4,662	

EXPENDITURES					

Administration					
Misc-Assessmnt Collection Cost	12,009	12,009	11,519	490	
Total Administration	12,009	12,009	11,519	490	

Debt Service					
Principal Debt Retirement	330,000	330,000	330,000	-	
Principal Prepayments	-	-	5,000	(5,000)	
Interest Expense	223,836	223,836	223,744	92	
Total Debt Service	553,836	553,836	558,744	(4,908)	
					
TOTAL EXPENDITURES	565,845	565,845	570,263	(4,418)	

Excess (deficiency) of revenues Over (under) expenditures	

10,591	

10,591	

10,835	

244	

OTHER FINANCING SOURCES (USES)					
Contribution to (Use of) Fund Balance	10,591	-	-	-	
TOTAL FINANCING SOURCES (USES)	10,591	-	-	-	

Net change in fund balance	
$	10,591	
$	10,591	
$	10,835	
$	244	

FUND BALANCE, BEGINNING (OCT 1, 2019)	
477,243	
477,243	
477,243		
FUND BALANCE, ENDING	$	487,834	$	487,834	$	488,078		

4

LIVE OAK NO. 2
Community Development District

Supporting Schedules

July 31, 2020

Non-Ad Valorem Special Assessments
(Hillsborough County Tax Collector - Monthly Collection Distributions) For the Fiscal Year Ending September 30, 2020

	ALLOCATION BY FUND	

Date Received	
Net Amount Rcv'd	Discount / (Penalties)
Amount	
Tax Coll Cost	
Prop Appr Cost	Gross Amount
Received	
General Fund	
Debt Service Fund**	

Assessments Levied FY '20					
$853,548		
$253,094	
$600,454	
Allocation %					100%		30%	70%	
11/05/19	$	6,498	$	355	$	133	$	-	$	6,986	$	2,071	$	4,914	
11/15/19	38,044	1,618		776	-	40,438		11,991	28,447	
11/22/19	26,069	1,108		532	-	27,709		8,216	19,493	
12/06/19	631,988	26,868		12,898	-	671,754		199,188	472,566	
12/12/19	39,563	1,621		807	-	41,994		12,452	29,542	
01/07/20	20,103	722		410	-	21,236		6,297	14,939	
02/05/20	6,982	155		142	-	7,279		2,158	5,121	
03/04/20	6,273	128		74	-	6,476		1,920	4,555	
04/04/20	9,940	-		202	-	10,142		3,007	7,135	
05/05/20	6,907	(31)		141	-	7,016		2,080	4,936	
06/05/20	2,623	(78)		54	-	2,598		770	1,828	
06/12/20	10,013	(298)		204	-	9,920		2,941	6,978	
-	-		-	-	-		-	-	

TOTAL	
$	805,003	
$	32,170 $	
16,374	
$	-	
$	853,548	
$	
253,093	
$	600,454	

% COLLECTED	100%	100%	100%	
TOTAL O/S	$	(0)	$	-	$	(0)	

5

LIVE OAK NO. 2	All Funds
Community Development District

Cash and Investment Report
July 31, 2020

General Fund

Account Name	Bank Name	Investment Type	Maturity	Yield	Balance	
Checking Account-Operating	SunTrust	Checking Account	n/a	0.00%	$14,980	
Certificate of Deposit	BankUnited	6 MO CD - #9097	07/30/20	2.10%	103,565	
MMA-0186	BankUnited	Money Market Account	n/a	0.03%	468,340	
				Total-GF	 	$586,885 	

Debt Service Funds						

Account Name
Series 2016 Reserve Fund	
Bank Name
US Bank	
Investment Type
US Bank Open Ended CP	
Maturity
n/a	
Yield
0.02%	
Balance
276,074	
Series 2016 Revenue Fund	US Bank	US Bank Open Ended CP	n/a	0.02%	198,256	
				Total-DS
Total	$475,035

 	$1,061,921 	

6

Live Oak No. 2 CDD
Bank Reconciliation

Agenda Page 19

Bank Account No. Statement No.
Statomanl Data

9534
07-2020
7 /31/ 2020

SunTrust Bank N.A. GF

G/l  Balance (LCY)
GIL Balance Positive Adjustments

Subtotal
Negative Adjustments

14,980.32
14,980.32
0.00

14,980.32
0.00

Statement Balance Outstanding Deposits

Subtotal Outstanding Checks
Differences

15,765.02
0.00

15,765.02
784.70
0.00

Ending G/l  Balance	14,980.32	Ending Balance	14,980.32 Difference		0.00

Posting Date

Document	Document
Type	No.	Description	Amount

Cleared
Amount	Difference

Outstanding Checks

7/22/2020	Pa ym.,,1 1
7/23/2020     Paymenl

003909
003910

DAVID A. STEELE
AMTEC

184.70
600.00

0.00
0.00

184 .70
600.00

Total Outstanding Checks....................................................................................................................	784.70	784.70

7

LIVE OAK NO. 2 COMMUNITY DEVELOPMENT DISTRICT

Payment Register by Fund
For the Period from 7/1/2020 to 7/31/2020 (Sorted by Check / ACH No.)

Fund No.	Check / ACH No.	Date	Payee	Invoice No.	Payment Description	Invoice / GL Description	G/L Account #	Amount Paid	

GENERAL FUND - 001	
001	003898	07/02/20	FED EX	7-039-17323	JUNE 2020 POSTAGE	Postage and Freight	541006-51301	$17.24	
001	003899	07/02/20	FLORIDA NATIVES NURSERY, INC	17250	5/13/20 QRTLY MITIGATION	R&M-Wetland Monitoring	546108-53901	$800.00	
001	003900	07/02/20	LANDSCAPE MAINTENANCE	153203	JULY 2020 GROUNDS MAINT	Contracts-Landscape	534050-53901	$3,686.50	
001	003901	07/02/20	US BANK	5723030	TRUSTEE FEES/INCIDETALS	TRUSTEE FEES/INCIDETALS 04/01/20-09/30/2020	531045-51301	$1,985.62	
001	003901	07/02/20	US BANK	5723030	TRUSTEE FEES/INCIDETALS	TRUSTEE FEES/INCIDETALS 10/01/20-03/31/2021	155000	$1,985.63	
001	003902	07/09/20	AMERICAN ECOSYSTEMS, INC	2006509	JUNE WATER MGMT TRMNT	JUNE 2020 WATER MGMT SVCS	534084-53901	$1,383.00	
001	003903	07/09/20	KING ENGINEERING ASSOC. INC.	110625	ENGG SVCS THRU MAY 2020	ProfServ-Engineering	531013-51501	$381.00	
001	003904	07/09/20	VGLOBAL TECH	1773	WEBSITE MAINT/ADA COMPLIANCE	Misc-Web Hosting	549915-51301	$183.00	
001	003910	07/23/20	AMTEC	5445-05-20	SPCL ASSESS BONDS SERIES 2016	2016 SPEC ASS BNDS	531002-51301	$600.00	
001	003911	07/23/20	COMPLETE IT	5098	SETUP ZOOM MEETING	Misc-Web Hosting	549915-51301	$30.90	
001	003912	07/23/20	INFRAMARK, LLC	53207	JULY MGMT FEES	ProfServ-Mgmt Consulting Serv	531027-51201	$3,333.33	
001	003912	07/23/20	INFRAMARK, LLC	53207	JULY MGMT FEES	Postage and Freight	541006-51301	$9.15	
001	003912	07/23/20	INFRAMARK, LLC	53207	JULY MGMT FEES	GO DADDY - MEMBER RENEWAL	549915-51301	$3.73	
001	003913	07/23/20	KING ENGINEERING ASSOC. INC.	110775	ENGG SVCS THRU JUNE 2020	ENGG SVCS THRU MAY 2020	531013-51501	$1,371.00	
001	003914	07/23/20	TIMES PUBLISHING	0000092047	O&M ASSESSMENTS 7/1/20	Legal Advertising	548002-51301	$988.00	
001	003905	07/22/20	ELIZABETH J. HUBBARD	PAYROLL	July 22, 2020 Payroll Posting			$184.70	
001	003906	07/22/20	KATHLEEN M. THATCHER	PAYROLL	July 22, 2020 Payroll Posting			$184.70	
001	003907	07/22/20	CLIFFORD R. THATCHER	PAYROLL	July 22, 2020 Payroll Posting			$184.70	
001	003908	07/22/20	RONALD L. DELL	PAYROLL	July 22, 2020 Payroll Posting			$184.70	
001	003909	07/22/20	DAVID A. STEELE	PAYROLL	July 22, 2020 Payroll Posting			$184.70	
							Fund Total	$17,681.60	

$17,681.60

Total Checks Paid

8

LIVE OAK NO. 2

Agenda Page 21

Community Development District	Governmental Funds

Notes to the Financial Statements

Assets

Due from Other Funds - Assessment due from General Fund to Debt Service .
The District has one Money Market Account and one CD. See cash report for additional information.

Prepaid Items: represents invoices for Trustee fee paid for FY2021.

Liabilities

Accounts Payable: represents invoices for current month but not paid in current month.
Accrued Expenses represents monthly invoices for current month but not paid in current month .
Due to Other Funds: Assessment due to Debt Service.

Fund Balance

The Reserves for FY2020 have been assigned.

General Fund

Special Assessments are 100% collected.

ProfServ - Special Assessment: Paid in full.

Insurance-General Liability: Paid in full.

Total Expenditures are 65.61% of the Annual Adopted Budget.

Debt Service Fund

Special Assessments are 100% collected.

Interest Expense and Principal were paid in May 2020.

9

3C.

Agenda Page 23

August 13, 2020

Live Oak No. 2 Community Development District c/o Inframark 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 and each major fund for the General Fund as of and for the year ended September 30, 2020 which collectively comprise the basic financial statements. We are pleased to confirm our acceptance and our understanding of this audit engagement by means of this letter for the year ending September 30, 2020 and thereafter for two annual renewals if 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 disclosures in the financial statements. The procedures selected depend on the auditor’s 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.

Because of the inherent limitations of an audit, together with the inherent limitations of internal control, an unavoidable risk that some material misstatements may not be detected exists, even though the audit is properly planned and performed in accordance with generally accepted auditing standards. Also, an audit is not designed to detect errors or fraud that are immaterial to the financial statements.

Agenda Page 24

Live Oak No. 2 Community Development District August 13, 2020
Page 2

In making our risk assessments, we consider internal control relevant to Live Oak No. 2 Community Development District’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. However, we will communicate to you in writing concerning any significant deficiencies or material weaknesses in internal control relevant to the audit of the financial statements that we have 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:

General Fund
Debt Service Fund

Agenda Page 25

Live Oak No. 2 Community Development District August 13, 2020
Page 3

The Responsibilities of Management and Identification of the Applicable Financial Reporting Framework

Our audit will be conducted on the basis that management acknowledges and understands that it has responsibility:

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;

For the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error; and

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

As part of our audit process, we will request from management written confirmation concerning representations made to us in connection with the audit, including among other items:

That management has fulfilled its responsibilities as set out in the terms of this letter; and

That it believes the effects of any uncorrected misstatements aggregated by us during the current engagement and pertaining to the latest period presented are immaterial, both individually and in the aggregate, to the financial statements taken as a whole.

Agenda Page 26

Live Oak No. 2 Community Development District August 13, 2020
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, management is responsible for the design and implementation of programs and controls to prevent and detect fraud, and for informing us about all known or suspected fraud affecting the entity involving management, employees who have significant roles in internal control, and others where the fraud could have a material effect on the financial statements. Management is also responsible for informing us of its knowledge of any allegations of fraud, or suspected fraud affecting the entity received in communications from employees, former employees, analysts, regulators, or others.

The Board is responsible for informing us of its views about the risks of fraud within the entity, and its knowledge of any fraud, or suspected fraud affecting the entity.

Live Oak No. 2 Community Development District agrees that it will not associate us with any public or private securities offering without first obtaining our consent. Therefore, Live Oak No. 2 Community Development District agrees to contact us before it includes our reports or otherwise makes reference to us, in any public or private securities offering.

Because Berger, Toombs, Elam, Gaines & Frank will rely on Live Oak No. 2 Community Development District and its management and Board of Supervisors to discharge the foregoing 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, losses and costs arising in circumstances where there has been a known misrepresentation by a member of Live Oak No. 2 Community Development District’s management, which has caused, in any respect, Berger, Toombs, Elam, Gaines & Frank’s breach of contract or negligence. This provision shall survive the termination of this arrangement for services.

Records and Assistance

If circumstances arise relating to the condition of the Live Oak No. 2 Community Development District’s records, 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 completing the audit or forming an opinion, we retain the unilateral right to take any course of action permitted by professional standards, including: declining to express an opinion, issuing a report, or withdrawing from engagement.

During the course of our engagement, we may accumulate records containing data that should be reflected in the Live Oak No. 2 Community Development District’s books and records. The 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.

Agenda Page 27

Live Oak No. 2 Community Development District August 13, 2020
Page 5

The assistance to be supplied, including the preparation of schedules and analyses of accounts, will be discussed and coordinated with an Inframark accountant. The timely and accurate completion of this work is an essential condition to our completion of the audit and issuance of our audit report.

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.

Either party may unilaterally terminate this agreement, with or without cause, upon sixty (60) days written notice subject to the condition that the District will pay all invoices for services rendered prior to the date of termination.

Fees, Costs, and Access to Workpapers

Our fees for the 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, 2020, 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 as we are not a party to the proceeding in which the information is sought, reimburse us for our professional time and expenses, as well as the fees and expenses of our counsel, incurred in responding to such requests.

The audit documentation for this engagement is the property of Berger, Toombs, Elam, Gaines, & Frank and constitutes confidential information. 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 report, or for a longer period if we are requested to do so by the cognizant or oversight agency.

Agenda Page 28

Live Oak No. 2 Community Development District August 13, 2020
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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.

Information Security – Miscellaneous Terms

Berger, Toombs, Elam, Gaines & Frank is committed to the safe and confidential treatment of Live Oak No. 2 Community Development District’s proprietary information. Berger, Toombs, Elam, Gaines & Frank is required to maintain the confidential treatment of client information in accordance with relevant industry professional standards which govern the provision of services described herein. Live Oak No. 2 Community Development District agrees that it will not provide Berger, Toombs, Elam, Gaines & Frank with any unencrypted electronic confidential or proprietary information, and the parties agree to utilize commercially reasonable measures to maintain the confidentiality of Live Oak No. 2 Community Development District’s information, including the use of collaborate sites to ensure the safe transfer of data between the parties.

If any term or provision of this arrangement letter is determined to be invalid or unenforceable, such term or provision will be deemed stricken and all other terms and provisions will remain in full force and effect.

Reporting

We will issue a written report upon completion of our audit of Live Oak No. 2 Community Development District’s financial 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 will be expressed. Circumstances may arise in which it is necessary for us to modify our opinion, 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 contracts or grant agreements. We will report on any internal control findings and/or noncompliance which could have a material effect on the financial statements;
Management letter required by the Auditor General, State of Florida; and
Attestation reports required by the Auditor General, State of Florida.

This letter constitutes the complete and exclusive statement of agreement between Berger, Toombs, Elam, Gaines & Frank and Live Oak No. 2 Community Development District, superseding all proposals, oral or written, and all other communication, with respect to the terms of the engagement between the parties.

Agenda Page 29

Live Oak No. 2 Community Development District August 13, 2020
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Please sign and return the attached copy of this letter to indicate your acknowledgement of, and agreement with, the arrangements for our audit of the financial statements including our respective responsibilities.

Berger, Toombs, Elam, Gaines & Frank
J. W. GAINES, CPA

Confirmed on behalf of the addressee:

 	,  	

Judson B. Baggett MBA, CPA, CVA, Partner
Marci Reutimann CPA, Partner

1't 6815 Dairy Road Zephyrhills, FL 33542
')	(813) 788-2155
(813)  782-8606

Report on the Firm's System of Quality Control

To the Partners	October 30, 2019
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, 2019. 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 (Standards).

A summary of the nature, objectives, scope, limitations of, and the procedures performed in a System Review as described in the Standards may be found at aicpa.org/prsummary. The summary also includes an explanation of how engagements identified as not performed or reported in conformity with applicable professional standards, if any, are evaluated by a peer reviewer to determine a peer review rating.

Firm's Responsibility

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. The firm is also responsible for evaluating actions to promptly remediate engagements deemed as not performed or reported in conformity with professional standards, when appropriate, and for remediating weaknesses in its system of quality control, if any.

Peer Reviewer's Responsibility

Our responsibility is to express an opinion on the design of the system of quality control, and the firm's compliance therewith based on our review.

Required Selections and Considerations

Engagements selected for review included engagements performed under Government Auditing Standards, including a compliance audit under the Single Audit Act.

As a part of our peer review, we considered reviews by regulatory entities as communicated by the firm, if applicable, in determining the nature and extent of our procedures.

Opinion

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, 2019, 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.

Member American Institute of Certified Public Accountants (AICPA) and Florida Institute of Certified Public Accountants (FICPA) National Association of Certified Valuation Analysts (NACVA)

Agenda Page 31

ADDENDUM TO ENGAGEMENT LETTER BETWEEN BERGER, TOOMBS, ELAM, GAINES AND FRANK AND LIVE OAK II COMMUNITY DEVELEOPMENT DISTRICT
(DATED AUGUST 13, 2020)

Public Records. Auditor shall, pursuant to and in accordance with Section 119.0701, Florida Statutes, comply with the public records laws of the State of Florida, and specifically shall:

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 records required by the District to perform the service or work provided for in this Agreement. If the Auditor transfers all public records to the District 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 of public records, in a format that is compatible with the information 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 records to the District within a reasonable time, Auditor may be subject to penalties pursuant to Section 119.10, Florida Statutes.

IF THE AUDITOR HAS QUESTIONS REGARDING THE APPLICATION OF CHAPTER 119, FLORIDA STATUTES, TO THE AUDITOR’S DUTY TO PROVIDE PUBLIC RECORDS 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:   	

Auditor: J.W. Gaines	District: Live Oak II CDD	
By:	 		By:	 		
Title: Director	Title:  		
Date: August 13, 2020	Date: