Live Oak No. 2

Community Development District

ANNUAL FINANCIAL REPORT

September 30, 2017

Live Oak No. 2 Community Development District				
ANNUAL FINANCIAL REPORT				
	September 30, 2017				
	TABLE OF CONTENTS				
			Page		
FINANCIAL SECTION	Number		
				
REPORT OF INDEPENDENT AUDITORS	1-2			
MANAGEMENT’S DISCUSSION AND ANALYSIS	3-8			
BASIC FINANCIAL STATEMENTS:				
Government-wide Financial Statements				
Statement of Net Position	9			
Statement of Activities	10			
Fund Financial Statements:				
Balance Sheet – Governmental Funds	11			
Reconciliation  of  Total  Governmental  Fund  Balances  to  Net				
Position of Governmental Activities	12			
Statement of Revenues, Expenditures and Changes in Fund				
Balances – Governmental Funds	13			
Reconciliation of the Statement of Revenues, Expenditures and				
Changes in Fund Balances of Governmental Funds to the				
Statement of Activities	14			
Statement of Revenues, Expenditures and Changes in Fund				
Balances – Budget and Actual – General Fund	15			
Notes to Financial Statements	16-28			
INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER				
FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS				
BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN				
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS	29-30			
MANAGEMENT LETTER	31-32			
INDEPENDENT ACCOUNTANT’S REPORT / COMPLIANCE WITH				
SECTION 218.415, FLORIDA STATUTES	33			

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Berger,	Toombs,	Elam,		
Gaines	& Frank			
Certified Public Accountants	PL			
600 Citrus Avenue				
Suite 200					
Fort Pierce, Florida 34950				
7721461-6120	II 461-1155				
FAX:  7721468-9278		REPORT OF INDEPENDENT AUDITORS		

To the Board of Supervisors		
Live Oak No. 2 Community	Development District		
			
Hillsborough County, Florida		
Report on the Financial Statements		

We  have  audited  the  accompanying	financial  statements  of		
	year ended September 30,		
Development District	as of and for the			
financial statements,	which collectively comprise the District's		
listed in the table of contents.			

Live

2017,

basic

Oak	No.	2 Community	
and	the related notes to	
financial	statements as	

Management'sResponsibility for the Financial Statements

Management	is  responsible	for  the  preparation		and  fair  presentation  of  these		
statements in	accordance	with accounting principles	generally accepted	in the United		
				of internal control		
				implementation,	and maintenance			
America; this includes the design,					
				are free from		
to the preparation and fair presentation of financial statements that			
misstatement, whether due to fraud or error.						

financial

States of

relevant

material

Auditor'sResponsibility																											
Our responsibility	is	to express an	opinion		on		these financial statements based	on	our audits.		
We conducted	our audits	in accordance	with	auditing	standards generally	accepted	in	the		
								in		
United  States	of	America		and	the	standards	applicable	to	financial	audits	contained			
														
Government Accounting Standards,	issued	by the	Comptroller	General of the United States.		
														
		and perform	the audit to obtain reasonable assurance		
Those standards require that we plan				
about whether the financial	statements are free	from	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		
								misstatement	of	the	financial		
								of the	risks	of	material						
judgment,		including	the	assessment										
statements, whether	due	to	fraud	or error.	In making those risk assessments,	the	auditor		
											
considers	internal	control	relevant		to		the	entity's preparation	and  fair presentation  of the		
									that	are	appropriate		in	the		
					to		design	audit	procedures								
financial	statements	in	order													
circumstances,	but not for the purpose	of expressing	an opinion on	the effectiveness of	the		
entity's internal	control.	Accordingly,	we	express	no	such opinion.	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.																					

We believe that the audit evidence

basis for our audit opinion.

we

have obtained

is

sufficient and

appropriate

to

provide a

Member

AICPA

Fort Pierce I Stuart
- 1 -
Member AICPA Division For CPA Firms
Private Companies Practice Section

Member

FICPA

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Berger,
Gaines

Toombs,
& Frank

Elam,

To the Board of Supervisors

Live Oak No. 2 Community Development District

Opinion

In our opinion, the financial statements referred to above present fairly,

the respective financial position of the governmental activities and each

No. 2 Community Development District, as of September 30, 2017, and

in financial position and the budgetary comparison for the General Fund

in conformity with accounting principles generally accepted in the United

in all material respects,

major fund of Live Oak

the respective changes

for the year then ended

States of America.

Other Matters									
Required_ Supplementary Information									
Accounting  principles  generally accepted	in	the  United	States  of America	require	that the		
Management  Discussion  and  Analysis	be	presented	to  supplement	the	basic	financial		
								
statements. Such information, although not a part of the basic financial statements, is required		
by the Governmental Accounting Standards Board who considers it to	be	an essential part of		
financial  reporting  for  placing  the  basic financial  statements  in  an  appropriate operational,		
economic, or historical context. We have applied certain limited  procedures to the required		
supplementary information in accordance	with  auditing standards generally	accepted in the		
United States of America, which consisted of inquiries of management	about the methods of		
						
preparing the information and comparing the information for consistency with management's		
responses to our inquiries, the basic financial statements, and other knowledge we	obtained		
during our audit of the basic financial statements. We do not express an opinion or provide any		
assurance on the information because the limited procedures do not provide us with sufficient		
evidence to express an opinion or provide any assurance.							

Other Reporting

Required

by

Government Auditing Standards

In accordance with Government Auditing Standards,	we have also issued a report dated May	
24, 2018 on our consideration of the District'sinternal control over financial reporting and on our	
tests of its compliance with certain provisions of laws, regulations and contracts.  The purpose	
of that report is to describe the scope of our testing of internal control over financial reporting	
and compliance and the results of that testing, and not to provide an opinion on internal control	
over financial reporting or on compliance.  That report	is an integral part of an audit performed in	
accordance with Government Auditing Standards  in	considering Live Oak No. 2 Community	
Development District'sinternal control over financial reporting and compliance.	

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Berger, Toombs, Elam, Gaines & Frank

Certified Public Accountants PL

Fort Pierce, Florida

May 24, 2018

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Live Oak No. 2 Community Development District MANAGEMENT’S DISCUSSION AND ANALYSIS For the Year Ended September 30, 2017

Management’s discussion and analysis of Live Oak No. 2 Community Development District’s (the “District”) financial performance provides an objective and easily readable analysis of the District’s financial activities. The analysis provides summary financial information for the District and should be read in conjunction with the District’s financial statements.

OVERVIEW OF THE FINANCIAL STATEMENTS

The District’s basic financial statements comprise three components; 1) Government-wide financial statements, 2) Fund financial statements, and 3) Notes to financial statements. The Government -wide financial statements present an overall picture of the District’s financial position and results of operations. The Fund financial statements present financial information for the District’s major funds. The Notes to financial statements provide additional information concerning the District’s finances.

The Government-wide financial statements are the statement of net position and the statement of activities. These statements use accounting methods similar to those used by private-sector companies. Emphasis is placed on the net position of governmental activities and the change in net position. Governmental activities are primarily supported by special assessments.

The statement of net position presents information on all assets and liabilities of the District, with the difference between assets and liabilities reported as net position. Net position are reported in three categories; 1) net investment in capital assets, 2) restricted, and 3) unrestricted. Assets, liabilities, and net position are reported for all Governmental activities.

The statement of activities presents information on all revenues and expenses of the District and the change in net position. Expenses are reported by major function and program revenues relating to those functions are reported, providing the net cost of all functions provided by the District. To assist in understanding the District’s operations, expenses have been reported as governmental activities. Governmental activities financed by the District include general government and debt service.

Fund financial statements present financial information for governmental funds. These statements provide financial information for the major funds of the District. Governmental fund financial statements provide information on the current assets and liabilities of the funds, changes in current financial resources (revenues and expenditures), and current available resources.

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Live Oak No. 2 Community Development District MANAGEMENT’S DISCUSSION AND ANALYSIS For the Year Ended September 30, 2017

OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)

Fund financial statements include a balance sheet and a statement of revenues, expenditures and changes in fund balances for all governmental funds. A statement of revenues, expenditures, and changes in fund balances – budget and actual is provided for the District’s General Fund. Fund financial statements provide more detailed information about the District’s activities. Individual funds are established by the District to track revenues that are restricted to certain uses or to comply with legal requirements.

The government-wide financial statements and the fund financial statements provide different pictures of the District. The government-wide financial statements provide an overall picture of the District’s financial standing. These statements are comparable to private-sector companies and give a good understanding of the District’s overall financial health and how the District paid for the various activities, or functions, provided by the District. All assets of the District, including land and improvements and construction in progress, are reported in the statement of net position. All liabilities, including principal outstanding on bonds are included. The statement of activities includes depreciation on all long lived assets of the District, but transactions between the different functions of the District have been eliminated in order to avoid “doubling up” the revenues and expenses. The fund financial statements provide a picture of the major funds of the District. In the case of governmental activities, outlays for long lived assets are reported as expenditures and long-term liabilities, such as general obligation bonds, are not included in the fund financial statements. To provide a link from the fund financial statements to the government-wide financial statements, a reconciliation is provided from the fund financial statements to the government-wide financial statements.

Notes to financial statements provide additional detail concerning the financial activities and financial balances of the District. Additional information about the accounting practices of the District, investments of the District, capital assets and long-term debt are some of the items included in the notes to financial statements.

Financial Highlights

The following are the highlights of financial activity for the year ended September 30, 2017.

♦	The District’s total assets exceeded total liabilities by $15,507,639 (net position). The District’s net investment in capital assets was $15,070,434. Restricted net position is $67,305. Unrestricted net position is $369,900.

♦	Governmental activities revenues totaled $828,877 while governmental activities expenses totaled $1,090,141.

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Live Oak No. 2 Community Development District MANAGEMENT’S DISCUSSION AND ANALYSIS For the Year Ended September 30, 2017

OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)

Financial Analysis of the District

The following schedule provides a summary of the assets, liabilities and net position of the District and is presented by category for comparison purposes.

Net Position						
			Governmental	Activities	
			2017				2016	
Current assets	$	378,510			$	365,379	
Restricted assets		439,220				432,294	
Capital assets		21,895,463				22,492,275	
Total Assets			22,713,193				23,289,948	
Deferred outflows of resources			190,985				202,441	
Current liabilities		419,258				431,360	
Non-current liabilities		6,977,281				7,292,126	
Total Liabilities			7,396,539				7,723,486	
Net position - net investment in							
capital assets		15,070,434				15,354,129	
Net position - restricted		67,305				63,432	
Net position - unrestricted			369,900				351,342	
Total Net Position	$	15,507,639			$	15,768,903	

The decrease in capital assets is due to depreciation in the current year.

The decrease in deferred outflows of resources is the result of current year amortization.

The decrease in non-current liabilities is the result of principal bond payments in the current year.

The decrease in net position – net investment in capital assets is primarily due to depreciation in excess of the reduction in long-term debt.

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Live Oak No. 2 Community Development District MANAGEMENT’S DISCUSSION AND ANALYSIS For the Year Ended September 30, 2017

OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)

Financial Analysis of the District (Continued)

The following schedule provides a summary of the changes in net position of the District and is presented by category for comparison purposes.

Change in Net Position			
		Governmental	Activities	
		2017				2016	
Revenues							
Charges for services	$	824,583			$	941,077	
Miscellaneous revenues		1,667				-	
Investment earnings		2,627				1,862	
Total Revenues		828,877				942,939	
Expenses							
General government		107,824				108,743	
Physical environment		720,364				678,693	
Interest on long-term debt		261,953				410,434	
Total Expenses		1,090,141				1,197,870	
Change in Net Position		(261,264)				(254,931)	
Net Position - Beginning of Year		15,768,903				16,023,834	
Net Position - End of Year	$	15,507,639			$	15,768,903	

The decrease in charges for services is primarily due to an anticipated decrease in assessment collections.

The increase in physical environment is due to an increase in pond maintenance in the current year.

The decrease in interest on long-term debt is primarily the result of a bond refunding that occurred in the prior year.

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Live Oak No. 2 Community Development District MANAGEMENT’S DISCUSSION AND ANALYSIS For the Year Ended September 30, 2017

OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)

Capital Assets Activity

The following schedule provides a summary of the District’s capital assets as of September 30, 2017 and 2016.

Description			Governmental Activities		
			2017			2016		
Land and improvements	$	7,616,900	$	7,616,900		
Infrastructure			17,904,401			17,904,401		
Less: accumulated depreciation			(3,625,838)			(3,029,026)		
Total Capital Assets (Net)	$	21,895,463	$	22,492,275		

Capital asset activity consisted of depreciation of $596,812 in the current year. General Fund Budgetary Highlights

Budgeted expenditures exceeded actual expenditures primarily because repair and maintenance and payroll expenditures were less than anticipated.

There were no amendments to the September 30, 2017 budget.

Debt Management

Governmental Activities debt includes the following:

♦	In March 2016, the District issued $7,620,000 Series 2016 Special Assessment Refunding Bonds. These bonds were issued to refund and redeem the Series 2004A and Series 2004B Special Assessment Bonds. The balance outstanding at September 30, 2017 is $7,295,000.

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Live Oak No. 2 Community Development District MANAGEMENT’S DISCUSSION AND ANALYSIS For the Year Ended September 30, 2017

Economic Factors and Next Year’s Budget

Live Oak No. 2 Community Development District does not expect any economic factors to have any significant effect on the financial position or results of operations of the District in fiscal year 2018.

Request for Information

The financial report is designed to provide a general overview of Live Oak No. 2 Community Development District’s finances for all those with an interest. Questions concerning any of the information provided in this report or requests for additional information should be addressed to the Live Oak No. 2 Community Development District, Inframark Infrastructure Management Services, 210 N. University Drive, Suite 702, Coral Springs, FL 33071.

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Live Oak No. 2 Community Development District STATEMENT OF NET POSITION September 30, 2017

	Governmental		
ASSETS		Activities		
				
Current Assets				
Cash and cash equivalents	$	273,043		
Investments at fair value		100,255		
Due from other governments		5,212		
Total Current Assets		378,510		
Non-current Assets				
Restricted:				
Investments, at fair value		439,220		
Capital assets, not being depreciated:				
Land and improvements		7,616,900		
Capital assets, being depreciated:				
Infrastructure		17,904,401		
Less: accumulated depreciation		(3,625,838)		
Total Non-current Assets		22,334,683		
Total Assets		22,713,193		
DEFERRED OUTFLOWS OF RESOURCES				
Deferred amount on refunding		190,985		
Total Assets and Deferred Outflows of Resources		22,904,178		
LIABILITIES				
Current Liabilities				
Accounts payable		4,956		
Accrued interest		99,302		
Bonds payable, current portion		315,000		
Total Current Liabilities		419,258		
Non-current Liabilities				
Bonds payable, net		6,977,281		
Total Liabilities		7,396,539		
NET POSITION				
Net investment in capital assets		15,070,434		
Restricted for debt service		67,305		
Unrestricted		369,900		
Total Net Position	$	15,507,639		

See accompanying notes to financial statements. - 9 -

Live Oak No. 2 Community Development District STATEMENT OF ACTIVITIES For the Year Ended September 30, 2017

								Net (Expense)		
						Program		Revenues and		
									Changes in		
						Revenues			Net Position		
						Charges for		Governmental		
Functions/Programs		Expenses		Services			Activities		
											
Governmental Activities										
General government	$	(107,824)		$	32,093	$	(75,731)		
Physical environment		(720,364)			214,413			(505,951)		
Interest on long-term debt		(261,953)			578,077			316,124		
Total Governmental Activities	$	(1,090,141)		$	824,583			(265,558)		
		General revenues:							
		Miscellaneous revenues			1,667		
			Investment earnings				2,627		
			Total General Revenues			4,294		
		Change in Net Position				(261,264)		
		Net Position - October 1, 2016			15,768,903		
		Net Position - September 30, 2017		$	15,507,639		

See accompanying notes to financial statements.

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Live Oak No. 2 Community Development District

BALANCE SHEET

GOVERNMENTAL FUNDS

September 30, 2017

								Total		
				Series 2016		Governmental		
		General		Debt Service			Funds		
ASSETS										
Cash and cash equivalents	$	273,043	$	-	$	273,043		
Investments, at fair value		100,255			-			100,255		
Due from other governments		1,558			3,654			5,212		
Restricted assets:										
Investments, at fair value		-			439,220			439,220		
Total Assets	$	374,856	$	442,874	$	817,730		
LIABILITIES AND FUND BALANCES										
										
Liabilities										
Accounts payable and accrued liabilities	$	4,956	$	-	$	4,956		
Fund Balances										
Restricted - debt service		-			442,874			442,874		
Assigned:										
Pond maintenance		170,751			-			170,751		
First quarter operations		52,831			-			52,831		
Unassigned		146,318			-			146,318		
Total Fund Balances		369,900			442,874			812,774		
Total Liabilities and Fund Balances	$	374,856	$	442,874	$	817,730		

See accompanying notes to financial statements.
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Live Oak No. 2 Community Development District RECONCILIATION OF TOTAL GOVERNMENTAL FUND BALANCES TO NET POSITION OF GOVERNMENTAL ACTIVITIES September 30, 2017

Total Governmental Fund Balances

Amounts reported for governmental activities in the Statement of Net Position are different because:

Capital assets not being depreciated, land and improvements, used in governmental activities are not current financial resources and therefore, are not reported at the governmental fund level.

Capital assets being depreciated, infrastructure, $17,904,401, net of accumulated depreciation, $(3,625,838), used in governmental activities are not current financial resources and therefore, are not reported at the governmental fund level.

Long-term liabilities, including bonds payable, $(7,295,000), net of bond discounts, net, $2,719, are not due and payable in the current period and therefore, are not reported at the governmental fund level.

Deferred outflows of resources are not current financial resources and therefore, are not reported at the governmental fund level.

Accrued interest expense for long- term debt is not a current financial use and therefore, is not reported at the governmental fund level.

Net Position of Governmental Activities

$	812,774

7,616,900

14,278,563

(7,292,281)

190,985

(99,302)

$	15,507,639

See accompanying notes to financial statements.

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Live Oak No. 2 Community Development District

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES

GOVERNMENTAL FUNDS

For the Year Ended September 30, 2017

								Total		
				Series 2016		Governmental		
Revenues		General		Debt Service			Funds		
										
Special assessments	$	246,506	$	578,077	$	824,583		
Miscellaneous revenues		1,667			-			1,667		
Investment earnings		1,761			866			2,627		
Total Revenues		249,934			578,943			828,877		
Expenditures										
Current										
General government		107,824			-			107,824		
Physical environment		123,552			-			123,552		
Debt Service										
Principal		-			325,000			325,000		
Interest		-			245,548			245,548		
Other		-			7,907			7,907		
Total Expenditures		231,376			578,455			809,831		
Net change in fund balances		18,558			488			19,046		
Fund Balances - October 1, 2016		351,342			442,386			793,728		
Fund Balances - September 30, 2017	$	369,900	$	442,874	$	812,774		

See accompanying notes to financial statements.

-13-

Live Oak No. 2 Community Development District

RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES

For the Year Ended September 30, 2017

Net Change in Fund Balances - Total Governmental Funds

Amounts reported for governmental activities in the Statement of Activities are different because:

Governmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of those assets is allocated over their estimated useful lives as depreciation. This is the amount of depreciation

in the current period.

Repayments of bond principal are expenditures in the governmental funds, but the repayments reduce long-term liabilities in the Statement of Net Position.

Deferred outflows of resources for refunding debt is recognized as a component of interest on long term debt in the Statement of Activities, but not in the governmental funds. This is the amount of interest in the current year period.

Amortization of bond discount reported in the Statement of Activities does not require the use of current financial resources and therefore, is not reported as an expenditure in governmental funds.

In the Statement of Activities, interest is accrued on outstanding bonds; whereas in governmental funds, interest expenditures are reported when due. This is the net amount between the prior year and current year accruals.

Change in Net Position of Governmental Activities

$	19,046

(596,812)

325,000

(11,456)

(155)

3,113

$	(261,264)

See accompanying notes to financial statements.

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Live Oak No. 2 Community Development District

STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL -

GENERAL FUND

For the Year Ended September 30, 2017

										Variance With		
										Final Budget		
		Original			Final						Positive		
Revenues		Budget			Budget			Actual			(Negative)		
													
Special assessments	$	245,807	$	245,807	$	246,506	$	699		
Miscellaneous revenues		-			-			1,667			1,667		
Investment earnings		-			-			1,761			1,761		
Total Revenues		245,807			245,807			249,934			4,127		
Expenditures													
Current													
General government		104,989			104,989			107,824			(2,835)		
Physical environment		140,818			140,818			123,552			17,266		
Total Expenditures		245,807			245,807			231,376			14,431		
Net change in fund balances		-			-			18,558			18,558		
Fund Balances - October 1, 2016		338,753			338,753			351,342			12,589		
Fund Balances - September 30, 2017	$	338,753	$	338,753	$	369,900	$	31,147		

See accompanying notes to financial statements.

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Live Oak No. 2 Community Development District NOTES TO FINANCIAL STATEMENTS September 30, 2017

NOTE A – SUMMARY OF ACCOUNTING POLICIES

The financial statements of Live Oak No. 2 Community Development District (the “District”) have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The District's more significant accounting policies are described below.

1.	Reporting Entity

The District was established on April 29, 2002, in Hillsborough County, pursuant to the Uniform Community Development District Act of 1980, Chapter 190, Florida Statutes, as amended (the "Act"), and Hillsborough County under County Ordinance 02-9, as a Community Development District. The District was established for the purposes of financing and managing the acquisition, construction, maintenance and operation of the infrastructure necessary for community development within its jurisdiction. The District is authorized to issue bonds for the purpose, among others, of financing, funding, planning, establishing, acquiring, constructing or re-constructing, enlarging or extending, equipping, operating and maintaining water management, water supply, sewer and waste water management, bridges or culverts, district roads, landscaping, street lights and other basic infrastructure projects within or without the boundaries of the Live Oak No. 2 Community Development District. The District is governed by a five-member Board of Supervisors, who are elected for four year terms. The District operates within the criteria established by Chapter 190.

As required by GAAP, these financial statements present the Live Oak No. 2 Community Development District (the primary government) as a stand-alone government. The reporting entity for the District includes all functions of government in which the District’s Board exercises oversight responsibility including, but not limited to, financial interdependency, selection of governing authority, designation of management, significant ability to influence operations and accountability for fiscal matters.

Based upon the application of the above- mentioned criteria as set forth by the Governmental Accounting Standards Board, the District has identified no component units.

2.  Measurement Focus and Basis of Accounting

The basic financial statements of the District are composed of the following:

•	Government-wide financial statements

•	Fund financial statements

•	Notes to financial statements

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Live Oak No. 2 Community Development District NOTES TO FINANCIAL STATEMENTS September 30, 2017

NOTE A – SUMMARY OF ACCOUNTING POLICIES (CONTINUED)

2.	Measurement Focus and Basis of Accounting (Continued)

a.	Government-wide Financial Statements

	Government-wide financial statements report all non-fiduciary information about the reporting government as a whole. These statements include all the governmental activities of the primary government. The effect of interfund activity has been removed from these statements.

	Governmental activities are supported by special assessments and investment earnings. Program revenues include charges for services, and payments made by parties outside of the reporting government’s citizenry if that money is restricted to a particular program. Program revenues are netted with program expenses in the statement of activities to present the net cost of each program.

	Amounts paid to acquire capital assets are capitalized as assets, rather than reported as an expenditure. Proceeds of long-term debt are recorded as liabilities in the government-wide financial statements, rather than as an other financing source.

	Amounts paid to reduce long-term indebtedness of the reporting government are reported as a reduction of the related liability, rather than as an expenditure.

b.	Fund Financial Statements

	The underlying accounting system of the District is organized and operated on the basis of separate funds, each of which is considered to be a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled.

	Fund financial statements for the primary government’s governmental funds are presented after the government-wide financial statements. These statements display information about major funds individually.

	Governmental Funds

	The District classifies fund balance according to Governmental Accounting Standards Board Statement 54 – Fund Balance Reporting and Governmental Fund Type Definitions. The Statement requires the fund balance for governmental funds to be reported in classifications that comprise a hierarchy based primarily on the extent to which the government is bound to honor constraints on the specific purposes for which amounts in those funds can be spent.

-17-

Live Oak No. 2 Community Development District NOTES TO FINANCIAL STATEMENTS September 30, 2017

NOTE A – SUMMARY OF ACCOUNTING POLICIES (CONTINUED)

2.	Measurement Focus and Basis of Accounting (Continued)

b.	Fund Financial Statements (Continued) Governmental Funds (Continued)

	The District has various policies governing the fund balance classifications.

	Nonspendable Fund Balance – This classification consists of amounts that cannot be spent because they are either not in spendable form or are legally or contractually required to be maintained intact.

	Restricted Fund Balance – This classification includes amounts that can be spent only for specific purposes stipulated by constitution, external resource providers, or through enabling legislation.

	Assigned Fund Balance – This classification consists of the Board of Supervisors’ intent to be used for specific purposes, but are neither restricted nor committed. The assigned fund balances can also be assigned by the District’s management company.

	Unassigned Fund Balance – This classification is the residual classification for the government’s general fund and includes all spendable amounts not contained in the other classifications. Unassigned fund balance is considered to be utilized first when an expenditure is incurred for purposes for which amounts in any of those unrestricted fund balance classifications could be used.

	Fund Balance Spending Hierarchy – For all governmental funds except special revenue funds, when restricted, committed, assigned, and unassigned fund balances are combined in a fund, qualified expenditures are paid first from restricted or committed fund balance, as appropriate, then assigned and finally unassigned fund balances.

	Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are considered to be available when they are collected within the current period or soon thereafter to pay liabilities of the current period. For this purpose, the District considers revenues to be available if they are collected within 60 days of the end of the current fiscal period.

	Expenditures generally are recorded when a liability is incurred, as under accrual accounting. Interest associated with the current fiscal period is considered to be an accrual item and so has been recognized as revenue of the current fiscal period.

-18-

Live Oak No. 2 Community Development District NOTES TO FINANCIAL STATEMENTS September 30, 2017

NOTE A – SUMMARY OF ACCOUNTING POLICIES (CONTINUED)

2.	Measurement Focus and Basis of Accounting (Continued)

b.	Fund Financial Statements (Continued) Governmental Funds (Continued)

	Under the current financial resources measurement focus, only current assets and current liabilities are generally included on the balance sheet. The reported fund balance is considered to be a measure of “available spendable resources”. Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they are said to present a summary of sources and uses of “available spendable resources” during a period.

	Because of their spending measurement focus, expenditure recognition for governmental fund types excludes amounts represented by non-current liabilities. Since they do not affect net current assets, such long-term amounts are not recognized as governmental fund type expenditures or fund liabilities.

	Amounts expended to acquire capital assets are recorded as expenditures in the year that resources are expended, rather than as fund assets. The proceeds of long-term debt are recorded as an other financing source rather than as a fund liability.

	Debt service expenditures are recorded only when payment is due.

3.	Basis of Presentation

a.	Governmental Major Funds

	General Fund – The General Fund is the District’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund.

	Series 2016 Debt Service Fund – Accounts for debt service requirements to retire the Series 2016 Special Assessments Refunding Bonds, which were used to refund the Series 2004 Special Assessment Bonds.

-19-

Live Oak No. 2 Community Development District NOTES TO FINANCIAL STATEMENTS September 30, 2017

NOTE A – SUMMARY OF ACCOUNTING POLICIES (CONTINUED)

4.	Assets, Liabilities, and Net Position or Equity

a.	Non-current Governmental Assets/Liabilities

	GASB Statement 34 requires that non-current governmental assets, such as land and buildings, and non-current governmental liabilities, such as general obligation bonds, due to developer and accrued compensated absences be reported in the governmental activities column in the government-wide Statement of Net Position.

b.	Cash and Investments

	Florida Statutes require state and local governmental units to deposit monies with financial institutions classified as "Qualified Public Depositories," a multiple financial institution pool whereby groups of securities pledged by the various financial institutions provide common collateral from their deposits of public funds. This pool is provided as additional insurance to the federal depository insurance and allows for additional assessments against the member institutions, providing full insurance for public deposits.

	The District is authorized to invest in those financial instruments as established by Section 218.415, Florida Statutes. The authorized investments consist of:

1.	Direct obligations of the United States Treasury;

2.	The Local Government Surplus Funds Trust or any intergovernmental investment pool authorized pursuant to the Florida Interlocal Cooperative Act of 1969;

3.	Interest-bearing time deposits or savings accounts in authorized qualified public depositories; and

4.	Securities and Exchange Commission, registered money market funds with the highest credit quality rating from a nationally recognized rating agency.

Cash equivalents include certificates of deposit and all highly liquid debt instruments with original maturities of three months or less and held in a qualified public depository as defined by Florida Statute 280.02.

c.	Restricted Assets

	Certain assets of the District and a corresponding liability or portion of net position is classified as restricted on the statement of net position because their use is limited either by law through constitutional provisions or enabling legislation; or by restrictions imposed externally by creditors. In a fund with both restricted and unrestricted assets, qualified expenses are considered to be paid first from restricted net position and then from unrestricted net position.

-	20 -

Live Oak No. 2 Community Development District NOTES TO FINANCIAL STATEMENTS September 30, 2017

NOTE A – SUMMARY OF ACCOUNTING POLICIES (CONTINUED)

4.	Assets, Liabilities, and Net Position or Equity (Continued) d. Capital Assets

Capital assets, which include land and infrastructure, are reported in the applicable governmental activities column.

The District defines capital assets as assets with an initial, individual cost of $5,000 or more and an estimated useful life in excess of one year. The valuation basis for all assets is historical cost.

The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend its useful life are not capitalized.

Major outlays for capital assets and improvements are capitalized as projects are constructed.

Depreciation of capital assets is computed and recorded by utilizing the straight- line method. The estimated useful life of depreciable capital assets, infrastructure, is 30 years.

e.	Deferred Outflows of Resources

	Deferred outflows of resources represent a consumption of net position/fund balance that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The District only has one item that qualifies for reporting in this category. It is the deferred amount on refunding reported on the Statement of Net Position. A deferred amount on refunding results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt.

f.	Budgets

Budgets are prepared and adopted after public hearings for the governmental funds, pursuant to Chapter 190, Florida Statutes. The District utilizes the same basis of accounting for budgets as it does for revenues and expenditures in its various funds. The legal level of budgetary control is at the fund level. All budgeted appropriations lapse at year end. Formal budgets are adopted for the general and debt service funds. As a result, deficits in the budget columns of the accompanying financial statements may occur.

-21-

Live Oak No. 2 Community Development District NOTES TO FINANCIAL STATEMENTS September 30, 2017

NOTE	B – RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS

1.	Explanation of Differences Between the Governmental Fund Balance Sheet and the Government-wide Statement of Net Position

	“Total fund balances” of the District’s governmental funds, $812,774, differs from “net position” of governmental activities, $15,507,639, reported in the Statement of Net Position. This difference primarily results from the long-term economic focus of the Statement of Net Position versus the current financial resources focus of the governmental fund balance sheet. The effect of the difference is illustrated as follows.

	Capital related items

	When capital assets (not being depreciated that are to be used in governmental activities) are purchased or constructed, the cost of those assets is reported as expenditures in governmental funds. However, the Statement of Net Position included those capital assets among the assets of the District as a whole.

Land and improvements	$	7,616,900	
Infrastructure		17,904,401	
Less: accumulated depreciation		(3,625,838)	
Total	$	21,895,463	

Long-term debt transactions

Long-term liabilities applicable to the District’s governmental activities are not due and payable in the current period and accordingly are not reported as fund liabilities. All liabilities (both current and long-term) are reported in the Statement of Net Position. Balances at September 30, 2017 were:

Bonds payable	$	(7,295,000)	
Bond discount, net		2,719		
Total	$	(7,292,281)		

Deferred outflows of resources

Deferred outflows of resources applicable to the District’s governmental activities are not financial resources, and therefore, are not recognized at the governmental fund level.

Deferred amount on refunding, net	$	190,985

-22-

Live Oak No. 2 Community Development District NOTES TO FINANCIAL STATEMENTS September 30, 2017

NOTE	B – RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS (CONTINUED)

1.	Explanation of Differences Between the Governmental Fund Balance Sheet and the Government-wide Statement of Net Position (Continued)

	Accrued interest

	Accrued liabilities in the Statement of Net Position differ from the amount reported in governmental funds due to the accrued interest on bonds.

Accrued interest	$	(99,302)

2.	Explanation of Differences Between the Governmental Fund Operating Statements and the Statement of Activities

	The “net change in fund balances” for government funds, $19,046, differs from the “change in net position” for governmental activities, $(261,264), reported in the Statement of Activities. The difference arises primarily from the long-term economic focus of the Statement of Activities versus the current financial resources focus of the governmental funds. The effect of the difference is illustrated below.

	Capital related items

	When capital assets that are to be used in governmental activities are purchased or constructed, the resources expended for those assets are reported as expenditures in governmental funds. However, in the Statement of Activities, the costs of those assets is allocated over their estimated useful lives and reported as depreciation. As a result, fund balances decrease by the amount of financial resources expended, whereas net position decrease by the amount of depreciation charged for the period.

Depreciation	$	(596,812)

Long-term debt transactions

Repayments of bond principal are reported as expenditures in the governmental funds and, thus, have the effect of reducing fund balance because current financial resources have been used.

Debt principal payments	$	325,000		
Amortization of bond discount			(155)	
Total		$	324,845		

-23-

Live Oak No. 2 Community Development District NOTES TO FINANCIAL STATEMENTS September 30, 2017

NOTE	B – RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS (CONTINUED)

2.	Explanation of Differences Between the Governmental Fund Operating Statements and the Statement of Activities (Continued)

	Long-term debt transactions (Continued)

	Some expenses reported in the Statement of Activities do not require the use of current financial resources, therefore, are not reported as expenditures in governmental funds.

Net change in accrued interest payable	$	3,113		
Decrease in deferred amount on refunding		(11,456)		
Total	$	(8,343)		

NOTE C – CASH AND INVESTMENTS

All deposits are held in qualified public depositories and are included on the accompanying balance sheet as cash and investments.

Custodial Credit Risk – Deposits

Custodial credit risk is the risk that in the event of a bank failure, the District's deposits may not be returned to it. The District does not have a formal deposit policy for custodial credit risk; however, they follow the provisions of Chapter 280, Florida Statutes regarding deposits and investments. As of September 30, 2017, the District's bank balance was $277,098 and the carrying value was $273,043. Exposure to custodial credit risk was as follows. The District maintains all deposits in a qualified public depository in accordance with the provisions of Chapter 280, Florida Statutes, which means that all deposits are fully insured by Federal Depositors Insurance or collateralized under Chapter 280, Florida Statutes.

-24-

Live Oak No. 2 Community Development District NOTES TO FINANCIAL STATEMENTS September 30, 2017

NOTE C – CASH AND INVESTMENTS (CONTINUED)

As of September 30, 2017, the District had the following investments and maturities:

Investment		Maturities			Fair Value	
Commercial Paper		N/A	$	439,220	
Certificate of Depsit		N/A			100,255	
Total				$	539,475	

The District categorizes its fair value measurements within the fair value hierarchy recently established by generally accepted accounting principles. The fair value is the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. The District uses a market approach in measuring fair value that uses prices and other relevant information generated by market transactions involving identical or similar assets, liabilities, or groups of assets and liabilities.

Assets or liabilities are classified into one of three levels. Level 1 is the most reliable and is based on quoted price for identical assets, or liabilities, in an active market. Level 2 uses significant other observable inputs when obtaining quoted prices for identical or similar assets, or liabilities, in markets that are not active. Level 3 is the least reliable and uses significant unobservable inputs that use the best information available under the circumstances, which includes the District’s own data in measuring unobservable inputs.

Based on the criteria in the preceding paragraph, the investments in Commercial Paper are Level 1 assets.

Interest Rate Risk

The District does not have a formal investment policy that limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates.

Credit Risk

The District's investments in treasury funds, commercial paper, and government loans are limited by state statutory requirements and bond compliance. The District has no investment policy that would further limit its investment choices. As of September 30, 2017, the District's investments in Commercial Paper were rated A-1+ by Standard & Poor's.

Concentration of Credit Risk

The District places no limit on the amount it may invest in any one fund. The investments in Commercial Paper are 81% and the certificate of deposit is 19% of the District’s total investments.

The types of deposits and investments and their level of risk exposure as of September 30, 2017 were typical of these items during the fiscal year ended. The District considers any decline in fair value for certain investments to be temporary.

-25-

Live Oak No. 2 Community Development District NOTES TO FINANCIAL STATEMENTS September 30, 2017

NOTE D – SPECIAL ASSESSMENT REVENUES

Special assessment revenues recognized for the 2016-2017 fiscal year were levied in October 2016. All taxes are due and payable on November 1 or as soon as the assessment roll is certified and delivered to the Tax Collector. Per Section 197.162, Florida Statutes, discounts are allowed for early payment at the rate of 4% in November, 3% in December, 2% in January, and 1% in February. Taxes paid in March are without discount.

All unpaid taxes become delinquent as of April 1. Virtually all unpaid taxes are collected via the sale of tax certificates on or prior to, June 1; therefore, there were no material taxes receivable at fiscal year end.

NOTE E – CAPITAL ASSETS

Capital Asset activity for the year ended September 30, 2017 was as follows:

			October 1,										September 30,		
			2016											2017		
Governmental Activities:			Balance			Additions			Deletions					Balance		
																
Capital assets, not being depreciated:															
Land and improvements	$	7,616,900	$	-	$	-	$	7,616,900		
Capital assets, being depreciated:															
Infrastructure		17,904,401			-				-				17,904,401		
Less accumulated depreciation for:															
Infrastructure		(3,029,026)			(596,812)				-				(3,625,838)		
Total Capital Assets Depreciated, Net		14,875,375			(596,812)				-				14,278,563		
Governmental Activities Capital Assets	$	22,492,275	$	(596,812)	$	-	$	21,895,463		

Depreciation in the amount of $596,812 was charged to physical environment.

-26-

Live Oak No. 2 Community Development District NOTES TO FINANCIAL STATEMENTS September 30, 2017

NOTE F – LONG-TERM DEBT

The following is a summary of activity in the long-term debt of the District for the year ended
September 30, 2017:

				Balance									Balance	
				October 1,									September 30,	
				2016		Additions	Deletions	2017	
Special Assessment Refunding																
Bonds, Series 2016		7,620,000		-			325,000			7,295,000	
													
Long-term debt is comprised of the following:												
Special Assessment Refunding Bonds												
$7,620,000 Series 2016 Special Assessment Refunding Bonds								
due  in  annual  principal  installments  beginning  May  2017.								
Interest at various rates between 2.25% and 4% is due May and								
November beginning May 2016. Current portion is $325,000.	$	7,295,000			
Bond discount, net								(2,719)			
Bonds Payable, Net					$	7,292,281			

The annual requirements to amortize the principal and interest of bonded debt outstanding as of
September 30, 2017 are as follows:

Year Ending											
September 30,				Principal			Interest			Total	
2018	$	315,000	$	238,324	$	553,324	
2019				320,000			231,236			551,236	
2020				330,000			224,036			554,036	
2021				335,000			216,611			551,611	
2022				345,000			209,911			554,911	
2023-2027				1,875,000			908,366			2,783,366	
2028-2032				2,220,000			571,095			2,791,095	
2033-2035				1,555,000			126,201			1,681,201	
Totals	$	7,295,000	$	2,725,780	$	10,020,780	

-27-

Live Oak No. 2 Community Development District NOTES TO FINANCIAL STATEMENTS September 30, 2017

NOTE F – LONG-TERM DEBT (CONTINUED)

Summary of Significant Bonds Resolution Terms and Covenants

Special Assessment Refunding Bonds, Series 2016

Depository Funds – The bond resolution establishes certain funds and determines the order in which revenues are to be deposited into these funds. A description of the significant funds, including their purposes, is as follows:

1.	Reserve Fund – The Series 2016 Reserve Account is funded from the proceeds of the Bonds in an amount equal to fifty percent of the Maximum Annual Debt Service Requirement for all Outstanding Series 2016 Bonds. Monies held in the reserve accounts will be used only for the purposes established in the Trust Indenture.

Reserve	Reserve

Balance	Requirement

Series 2016 Special Assessment Refunding Bonds	$	276,970	$	276,267

NOTE G – RISK MANAGEMENT

The government is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; and natural disasters for which the government carries commercial insurance.

-28-

~~tt

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Berger, Toombs,
Gaines & Frank

Certified Public Accountants	PL

600 Citrus Avenue

Suite 200

Fort Pierce, Florida 34950

7721461-6120 II 461-1155 FAX: 7721468-9278

Elam,

INDEPENDENT AUDITOR'SREPORT ON INTERNAL CONTROL OVER FINANCIAL			
REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT			
OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH				
	GOVERNMENT AUDITING STANDARDS											
To the Board of Supervisors									District																
Live Oak No. 2 Community Development																	
																		
Hillsborough County, Florida																									
We have audited,	in accordance with the auditing standards generally accepted	in the United		
States of America	and the standards		applicable	to financial audits contained	in	Government		
												
							General  of the  United  States,  the  financial		
Auditing  Standards  issued  by the  Comptroller			
statements of Live Oak No.		2 Community Development District, as of and for the year ended		
September 30, 2017, and the related notes to the financial statements,	and have issued our		
report thereon dated May 24,	2018.																						
Internal Control Over Financial Reporting																
In planning and performing our audit,	we considered Live Oak No.	2 Community Development		
District's internal control over	financial	reporting	to determine	the	audit	procedures	that	are		
appropriate in the circumstances for the purpose	of expressing our opinions on the financial		
	an opinion on the effectiveness	of Live Oak		
statements, but not for the purpose	of expressing				
					an		
No. 2 Community Development District'sinternal control.  Accordingly, we do	not express			
opinion  on the effectiveness of Live		Oak	No.	2 Community	Development District's internal		
																	
control over financial reporting.																								
A deficiency in internal control exists when the design or operation	of a control does not allow		
management or employees,	in	the normal course of performing their assigned functions,	to		
prevent,  or detect	and correct	misstatements	on	a timely basis. A		material  weakness  is a		
deficiency, or combination of deficiencies,	in internal control, such that there	is	a reasonable		
possibility that a material misstatement	of the entity'sfinancial statements	will not	be prevented,		
		basis.	A	significant deficiency	is a deficiency,  or a		
or detected and corrected	on	a timely						
combination of deficiencies,	in	internal control that	is less severe than a material weakness,	yet		
important enough to merit attention	by those charged with governance.											
																						
Our  consideration	of  internal	control		over financial  reporting	was		for	the	limited  purpose		
described in the first paragraph of this section and	was not designed	to identify all deficiencies		
in internal control that might	be	material	weaknesses or significant deficiencies	..	Given these		
								we		
limitations,  during	our audit	we	did not identify any deficiencies	in		internal control that			
consider to be material weaknesses.		However, material weaknesses	may exist that have not		
been identified.																											

Member

AICPA

- 29 I- Stuart
Fort Pierce

Member AICPA Division For CPA Firms

Private Companies Practice Section

Member

FICPA

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Berger,
Gaines

Toombs,
& Frank

Elam,

To the Board of Supervisors				District												
Live Oak No. 2 Community Development													
														
Hillsborough County, Florida																	
Compliance and Other Matters																	
As  part  of  obtaining  reasonable	assurance  about  whether  Live  Oak  No.	2	Community		
Development District'sfinancial statements are free of material misstatement, we performed		
tests  of  its  compliance  with  certain  provisions		of  laws,	regulations,	contracts,	and  grant		
	have	a	direct	and  material	effect  on  the		
agreements,  noncompliance  with	which  could							
determination of financial statement	amounts. However, providing an	opinion	on	compliance		
							accordingly, we do not express such		
with those provisions was not an	objective of our audit, and			
an opinion. The results of our tests disclosed	no	instances of noncompliance or other matters		
that are required to be reported under Government	Auditing Standards.						
											
Purpose of this Report																	
The purpose of this report is solely to describe the scope of our testing of internal control and		
compliance and the results of that testing, and not to provide an opinion	on the effectiveness	of		
the entity's internal control  or	on	compliance.		This	report is  an	integral  part	of an audit		
performed  in  accordance  with	Government  Auditing	Standards	in	considering	the  entity's		
internal control and compliance. Accordingly,	this communication	is not suitable for any other		
													
purpose.																	

Berger, Toombs, Elam, Gaines

Certified Public Accountants
Fort Pierce, Florida

May 24, 2018

&

Frank

-30-

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Berger, Toombs,
Gaines & Frank

Certified  Public Accountants	PL

600 Citrus Avenue

Suite 200

Fort Pierce, Florida 34950

7721461-6120 II 461-1155 FAX: 7721468-9278

Elam,

MANAGEMENT

LETTER

To the Board of Supervisors	District		
Live Oak No. 2 Community Development			
			
Hillsborough County, Florida			
Report on the Financial Statements			

We have
District as
dated May

audited the financial  statements of the Live Oak	No.	2	
of and for the year ended September 30,	2017, and have	
24,	2018.				

Community Development
issued our report thereon

Auditor'sResponsibility

We conducted our audit in accordance	with auditing standards generally	
States;  the  standards  applicable	to	financial  audits  contained	in	
Standards, issued by the Comptroller General of the United States and	
of the Florida Auditor General.				

accepted in the United

Government	Auditing
Chapter 10.550, Rules

Other Reports and Schedule									
We have issued our Independent Auditor'sReport	on	Internal Control over Financial Reporting		
and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in		
Accordance with Government Auditing Standards and our Independent Auditor'sReport	on	an		
examination conducted in accordance	with AICPA Professionals Standards,	AT-C Section 315		
						
regarding compliance requirements	in	accordance with Chapter 10.550, Rules of the Auditor		
General.  Disclosures in that report, which is dated	May 24, 2018, should	be considered	in		
conjunction with this Management Letter.							
Prior Audit Findings									

Section 10.554(1 )(i)1., Rules of the Auditor General, requires that we determine whether	
corrective actions have been made to address findings and recommendations made	
preceding	financial audit report.   There were no findings or recommendations made	
preceding	financial audit report.	

or

in
in

not

the

the

Financial Condition										
Section  10.554(1 )(i)5.a.  and	10.556(7),  Rules of the Auditor General,	requires	us to apply		
appropriate procedures and communicate	the results of our determination as to whether or not		
		District has met one  or more  of the  conditions		
Live  Oak	No.  2 Community	Development			
described	in Section 218.503(1), Florida Statutes,	and to identify the specific conditions	met. In		
					
connection with our audit, we determined	that the Live Oak No. 2 Community	Development		
					
District did not meet any of the conditions	described in Section 218. 503( 1),	Florida Statutes.		

Member

AICPA

Fort P~e~~ I _Stuart

Member AICPA Division For CPA Firms

Private Companies Practice Section

Member

FICPA

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Berger, Toombs,
Gaines & Frank

CertlfiedPubtic~ntants	Pl

Elam,

To the Board of Supervisors				District															
Live Oak No. 2 Community Development																
																		
Pursuant to Sections 10.554(1 )(i)5.c. and 10.556(8),	Rules of the Auditor General,	we ap.plied		
financial conditions assessment procedures	as of September 30,	2017 for the	Live	Oak No. 2		
Community Development District.	It is	management'sresponsibility to monitor the Live Oak	No.		
2 Community Development District'sfinancial condition; our financial condition assessment was		
based in part on the representations made	by management and the review of the financial		
information provided by the same.																					
Section  10.554(1)(i)2.,  Rules  of	the	Auditor  General,	requires	that	we	communicate	any		
recommendations to improve financial	management.		In connection with our audit,	we did not		
have any such recommendations.											·										
Annual Financial Report																					
Section 10.554(1 )(i)5.b. and 10.556(7),	Rules of the Auditor General,	requires	that we apply		
appropriate procedures and communicate	the results	of	our determination	as		to whether	the		
									
annual financial report for the Live Oak	No.	2 Community	Development District for the fiscal		
year ended	September 30,  2017,	filed	with  the		Florida  Department	of	Financial  Services		
pursuant to	Section 218.32(1 )(a), Florida Statutes,	is in	agreement with the annual financial		
audit report for the fiscal year ended September	30,	2017. In connection with our audit,	we		
determined that these two reports were in agreement.													
Additional Matters																					
Section   10.554(1)(i)3.,  Rules	of	the  Auditor		General,  requires	us	to		communicate		
noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred,		
or are likely to have occurred, that have	an effect	on		the financial	statements that is less than		
material but which warrants the attention of those charged with governance.	In	connection with		
our audit, we did not note any such findings.																	

Purpose

of

this Letter

Our Management Letter is intended solely for	the information and use of the Legislative	Auditing		
Committee,  members of the Florida Senate	and	the Florida House of Representatives,	the		
Florida Auditor General, Federal and other granting agencies, the Board of Supervisors, and		
applicable management, and is not intended	to be	and should not be used by anyone other than		

these specified

parties.

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Berger, Toombs, Elam, Gaines
Certified Public Accountants PL
Fort Pierce, Florida

&

Frank

May

24,

2018

-32-

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Berger, Toombs,
Gaines & Frank

Certified Public Accountants	PL

600 Citrus Avenue

Suite 200

Fort Pierce, Florida 34950

772/461-6120 II 461-1155 FAX: 772/468-9278

Elam,

INDEPENDENT ACCOUNTANT'SREPORT/COMPLIANCE

WITH SECTION 218.415, FLORIDA STATUTES

To the Board of Supervisors		District									
Live Oak No. 2 Community Development										
											
Hillsborough County, Florida												
We have examined Live Oak No. 2 Community	Development District'scompliance with Section		
218.415,  Florida  Statutes  during	the  year  ended  September	30,  2017.  Management  is		
responsible  for  Live  Oak  No.  2 Community	Development  District's compliance  with  those		
requirements.  Our responsibility  is  to  express	an  opinion  on  Live  Oak  No.	2  Community		
Development District'scompliance based	on our examination.							
Our examination was conducted in	accordance	with attestation standards established	by the		
				on a		
American Institute of Certified Public Accountants and, accordingly, included examining,			
test basis, evidence about Live Oak No.	2 Community	Development District'scompliance with		
those requirements and performing	such other procedures as we considered necessary	in the		
circumstances. We believe that our examination provides a reasonable basis for our opinion.		
Our examination  does  not  provide  a  legal  determination	on  Live  Oak  No.	2  Community		
Development District'scompliance with the specified requirements.						

In our opinion,  Live  Oak No.  2

respects, with the aforementioned

Community  Development  District

requirements during the year ended

complied, in all material September 30, 2017.

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Berger, Toombs, Elam, Gaines
Certified Public Accountants PL
Fort Pierce, Florida

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Frank

May

24,

2018

Member

AICPA

Fort P~e~3/_Stuart

Member AICPA Division For CPA Firms

Private Companies Practice Section

Member

FICPA