LIVE OAK NO. 2 COMMUNITY DEVELOPMENT DISTRICT

JANUARY 21, 2020 AGENDA PACKAGE

Live Oak No. 2 Community Development District
Inframark, Infrastructure Management Services
210 North University Drive Suite 702, Coral Springs, Florida 33071 Phone: 954-603-0033 Fax: 954-345-1292

January 14, 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, January 21, 2020 at 6:30 p.m. at the Live Oak Clubhouse, 9401 Oak Preserve Boulevard, Tampa, Florida. Following is the advanced agenda for the meeting:

Call to Order
Public Comment on Agenda Items
Consent Agenda
Approval of Minutes of the September 17, 2019 Meeting
Financial Report
Ratification of FY 2019 Audit Engagement Letter
Staff Reports
Manager
Attorney
Engineer
Pond 9-5 Discussion
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, September 17, 2019 at 11:00 a.m. in the Live Oak Clubhouse, 9401 Oak Preserve Boulevard, Tampa, Florida.

Present and constituting a quorum were:

Elizabeth Hubbard	Chairperson
Kathleen Thatcher	Vice Chairperson
Ronald Dell	Assistant Secretary
David Steele	Assistant Secretary (via phone)
Richard Thatcher	Assistant Secretary Also present:
Andy Mendenhall	District Manager
Vincent Galiano	District Engineer One resident

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

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

SECOND ORDER OF BUSINESS	Public Comment on Agenda Items
None.

THIRD ORDER OF BUSINESS	Consent Agenda
Approval of Minutes of the July 16, 2019 Meeting
Financial Report

ON MOTION by Ms. Thatcher seconded by Mr. Dell with all in favor the Consent Agenda was approved. 5-0

FOURTH ORDER OF BUSINESS	Staff Reports
Manager
None.
Attorney
None.
Engineer
Pond 9-5 Discussion Mr. Galiano noted:
Drigger’s initial research has begun on Phase 1 which includes preliminary study and secondary testing.
Drigger’s reached out for authorization for secondary testing.
The Board confirmed and there was consensus on secondary testing of Phase 1.
In regard to SoilFloc, Mr. Galiano noted he spoke with a representative at SWFWMD and was told they never heard of the product along with several other Contractors around the area.
Mrs. Sandra Miller provided specifications of SoilFloc and he provided it to the Board.
Discussion followed on the use of SoilFloc.

On MOTION by Mr. Dell seconded by Ms. Thatcher with all in favor, Mr. Galiano authorized to speak with SWFWMD to obtain the approval for use of the product SoilFloc with a cost not to exceed $15,000. 5-0

SIXTH ORDER OF BUSINESS	Supervisors’ Requests
Ms. Hubbard noted LMP crew was seen smoking while on the tracker.
Mr. Mendenhall will reach out once again to LMP with all the Board concerns.

SEVENTH ORDER OF BUSINESS	Audience Comments
None.

unapproved

EIGHTH ORDER OF BUSINESS	Adjournment

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

Elizabeth Hubbard Chairperson

unapproved

3B.

LIVE OAK NO. 2
Community Development District

Financial Report
December 31, 2019

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)

December 31, 2019

Community Development District

Governmental Funds

Balance Sheet
December 31, 2019

ACCOUNT DESCRIPTION

GENERAL FUND

SERIES 2016 DEBT SERVICE
FUND	TOTAL

ASSETS

Cash - Checking Account	$	758,791	$	-	$	758,791	
Due From Other Funds	-	526,771	526,771	
Investments:				
Certificates of Deposit - 6 Months	102,486	-	102,486	
Money Market Account	336,417	-	336,417	
Reserve Fund	-	276,451	276,451	
Revenue Fund	-	76,850	76,850	
TOTAL ASSETS	$ 1,197,694	$	880,072	$ 2,077,766	

LIABILITIES				
Accounts Payable	$	15,837	$	-	$	15,837	
Accrued Expenses	2,370	-	2,370	
Due To Other Funds	526,771	-	526,771	
TOTAL LIABILITIES	544,978	-	544,978	

FUND BALANCES				
Restricted for:				
Debt Service	-	880,072	880,072	
Assigned to:				
Operating Reserves	53,197	-	53,197	
Reserves - Ponds	201,933	-	201,933	
Unassigned:	397,586	-	397,586	
TOTAL FUND BALANCES	$	652,716	$	880,072	$ 1,532,788	
				
TOTAL LIABILITIES & FUND BALANCES	$ 1,197,694	$	880,072	$ 2,077,766	

1

Statement of Revenues, Expenditures and Changes in Fund Balances
For the Period Ending December 31, 2019

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

REVENUES

Interest - Investments	$	3,000	$	750	$	1,139	$	389	
Special Assmnts- Tax Collector	253,093	235,493	233,918	(1,575)	
Special Assmnts- Discounts	(10,124)	(8,916)	(9,361)	(445)	
TOTAL REVENUES	245,969	227,327	225,696	(1,631)	
EXPENDITURES					

Administration					
P/R-Board of Supervisors	6,000	1,500	-	1,500	
FICA Taxes	459	115	-	115	
ProfServ-Arbitrage Rebate	600	150	-	150	
ProfServ-Dissemination Agent	1,000	250	-	250	
ProfServ-Engineering	15,000	3,750	4,152	(402)	
ProfServ-Legal Services	3,000	750	931	(181)	
ProfServ-Mgmt Consulting Serv	40,000	10,000	10,000	-	
ProfServ-Special Assessment	12,500	12,500	12,500	-	
ProfServ-Trustee Fees	3,971	-	2,917	(2,917)	
Auditing Services	3,500	-	-	-	
Postage and Freight	500	125	11	114	
Insurance - General Liability	8,593	7,812	7,812	-	
Printing and Binding	300	75	23	52	
Legal Advertising	900	225	-	225	
Miscellaneous Services	300	75	105	(30)	
Misc-Assessmnt Collection Cost	5,062	4,493	4,491	2	
Misc-Web Hosting	1,000	250	-	250	
Office Supplies	100	25	-	25	
Annual District Filing Fee	175	175	175	-	
Total Administration	102,960	42,270	43,117	(847)	

Field
Contracts-Envirom'l Monitoring	

3,200	

800	

800	

-	
Contracts-Landscape	44,238	11,060	11,060	-	
Contracts-Lakes	16,596	4,149	4,149	-	
R&M-Fence	5,000	1,250	-	1,250	
R&M-Lake	7,500	1,875	-	1,875	
R&M-Wetland Monitoring	8,000	2,000	-	2,000	
Misc-Contingency	26,065	6,516	-	6,516	
Reserve - Ponds	31,182	7,796	3,350	4,446	
Total Field	141,781	35,446	19,359	16,087	
					
TOTAL EXPENDITURES	244,741	77,716	62,476	15,240	

2

Statement of Revenues, Expenditures and Changes in Fund Balances
For the Period Ending December 31, 2019

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

Excess (deficiency) of revenues
Over (under) expenditures	1,228	149,611	163,220	13,609

OTHER FINANCING SOURCES (USES)

Contribution to (Use of) Fund Balance	1,228	-	-	-	
TOTAL FINANCING SOURCES (USES)	1,228	-	-	-	

Net change in fund balance	
$	1,228	
$	149,611	
$	163,220	
$	13,609	

FUND BALANCE, BEGINNING (OCT 1, 2019)	
489,496	
489,496	
489,496		
FUND BALANCE, ENDING	$	490,724	$	639,107	$	652,716		

3

Community Development District	Series 2016 Debt Service Fund

Statement of Revenues, Expenditures and Changes in Fund Balances
For the Period Ending December 31, 2019

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

REVENUES

Interest - Investments	$	-	$	-	$	1,416	$	1,416	
Special Assmnts- Tax Collector	600,454	495,449	554,961	59,512	
Special Assmnts- Discounts	(24,018)	(19,818)	(22,210)	(2,392)	
TOTAL REVENUES	576,436	475,631	534,167	58,536	

EXPENDITURES					

Administration					
Misc-Assessmnt Collection Cost	12,009	9,909	10,655	(746)	
Total Administration	12,009	9,909	10,655	(746)	

Debt Service					
Principal Debt Retirement	330,000	-	-	-	
Principal Prepayments	-	-	5,000	(5,000)	
Interest Expense	223,836	111,918	111,918	-	
Total Debt Service	553,836	111,918	116,918	(5,000)	
					
TOTAL EXPENDITURES	565,845	121,827	127,573	(5,746)	

Excess (deficiency) of revenues Over (under) expenditures	

10,591	

353,804	

406,594	

52,790	

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	
$	353,804	
$	406,594	
$	52,790	

FUND BALANCE, BEGINNING (OCT 1, 2019)	
473,478	
473,478	
473,478		
FUND BALANCE, ENDING	$	484,069	$	827,282	$	880,072		

4

LIVE OAK NO. 2
Community Development District

Supporting Schedules

December 31, 2019

Community Development District

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	-	41,992	12,451	29,541	

TOTAL	
$	742,162	
$	31,571	
$	15,146	
$	-	
$	788,879	
$	233,918	
$	554,961	

% COLLECTED	92%	92%	92%	
TOTAL O/S	$	64,668	$	19,175	$	45,493	

5

LIVE OAK NO. 2					All Funds	
Community Development District						

Cash and Investment Report
December 31, 2019				
General Fund						

Account Name	
Bank Name	
Investment Type	
Maturity	
Yield	
Balance	
Checking Account-Operating	SunTrust	Checking Account	n/a	0.00%	$758,791	
Certificate of Deposit	BankUnited	6 MO CD - #2700	01/17/20	2.10%	102,486	
MMA-0186	BankUnited	Money Market Account	n/a	0.78%	336,417	
				Total-GF	 	$1,197,694 	
Debt Service Funds						

Account Name	
Bank Name	
Investment Type	
Maturity	
Yield	
Balance	
Series 2016 Reserve Fund	US Bank	US Bank Open Ended CP	n/a	1.30%	276,451	
Series 2016 Revenue Fund	US Bank	US Bank Open Ended CP	n/a	1.30%	76,850	
				Total-DS	$354,006	
						
				Total	 	$1,551,701 	

6

Bank Reconciliation

Bank Account No.	9534	SunTrust Bank N.A. - GF				
Statement No.	12-19					
Statement Date	12/31/2019					

G/L Balance (LCY)	758,790.58		
Statement Balance	
762,140.58		
G/L Balance	758,790.58		Outstanding Deposits	0.00		
Positive Adjustments	0.00			

		Subtotal	762,140.58		
Subtotal	758,790.58		Outstanding Checks	3,350.00		
Negative Adjustments	0.00		Differences	0.00		

Ending G/L Balance	758,790.58		
Ending Balance	
758,790.58		

Difference	0.00					

Posting	Document	Document Date	Type	No.	

Description		

Amount	
Cleared Amount	

Difference	
Outstanding Checks						
12/27/2019 Payment	003839	
BIOMASS TECH		
3,350.00	
0.00	
3,350.00	

Total Outstanding Checks......................................................................................................................	3,350.00	3,350.00

7

LIVE OAK NO. 2
Community Development District

Payment Register by Fund
For the Period from 12/1/2019 to 12/31/2019 (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	003833	12/02/19 AMERICAN ECOSYSTEMS, INC	1912198	DEC WATER MGMT TRTMNT	Contracts-Lakes	534084-53901	$1,383.00	
001	003834	12/02/19 LANDSCAPE MAINTENANCE	148409	DEC GRNDS MAINT	NOV 2019 GRNDS MAINT	534050-53901	$3,686.50	
001	003835	12/02/19 STRALEY ROBIN VERICKER	17672	GEN MATTERS THRU 11/15/19	ProfServ-Legal Services	531023-51401	$465.60	
001	003836	12/04/19 DRIGGERS ENGINEERING SERVICE	E012276	ENGG SVCS THRU OCT 2019	ProfServ-Engineering	531013-51501	$2,775.00	
001	003837	12/04/19 INFRAMARK, LLC	46489	NOV MGMT FEES	ProfServ-Mgmt Consulting Serv	531027-51201	$3,333.33	
001	003837	12/04/19 INFRAMARK, LLC	46489	NOV MGMT FEES	Postage and Freight	541006-51301	$3.00	
001	003837	12/04/19 INFRAMARK, LLC	46489	NOV MGMT FEES	Printing and Binding	547001-51301	$12.15	
001	003839	12/27/19 BIOMASS TECH	1906-09	POND 9-5 EROSION RESTORATION	Reserve - Ponds	568126-53901	$3,350.00	
						Fund Total	$15,008.58	

						Total Checks Paid	$15,008.58	

8

LIVE OAK NO. 2
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.

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 92% collected.

ProfServ - Special Assessment: Paid in full.

Insurance-General Liability: Paid in full.

Total Expenditures are 25.20% of the Annual Adopted Budget.

Debt Service Fund

Special Assessments are 92% collected.

Interest Expense of $ 111,918 was paid in November .

9

3C

Agenda Page 23

r�tt Berger, Toombs, Elam, Co, Gaines & Frank
Cerlifoed Public Acco�ntant$	Pl
600 Citrus Avenue
Suite 200
Fort Pierce, Florida 34950
772/461-6120 // 461-1155
FAX: 772/468-9278

September 12, 2019

Live Oak No. 2 Community Development District c/o lnframark Infrastructure Management Services 210 North University Drive, Suite 702
Coral Springs, FL 33071

The Objective and Scope of the Audit of the Financial Statements

You have requested that we audit the financial statements of Live Oak No. 2 Community Development District, which comprise governmental activities, a discretely presented component unit and each major fund for the General Fund as of and for the year ended September 30, 2019 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, 2019 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.

Member AICPA

Fort Pierce / Sluart
Member AICPA Division For CPA Firms Private Companies Practice Section

Member FICPA

Agenda Page 24

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� Berger, Toombs, Elam, Gaines & Frank

Live Oak No. 2 Community Development District September 12, 2019
Page2

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

� Berger, Toombs, Elam, qj1 Gaines & Frank

Live Oak No. 2 Community Development District September 12, 2019
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

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� Berger, Toombs, Elam, Gaines & Frank

Live Oak No. 2 Community Development District September 12, 2019
Page4
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

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�Mic	l'l

Live Oak No. 2 Community Development District September 12, 2019
Page 5
The assistance to be supplied, including the preparation of schedules and analyses of accounts, will be discussed and coordinated with an lnframark 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.
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, 2019, 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. 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.

Agenda Page 28

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Live Oak No. 2 Community Development District September 12, 2019
Page 6
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

t-sb Berger, Toombs, Elam,
qj1 Gaines & Frank

Live Oak No. 2 Community Development District September 12, 2019
Page 7
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:

Agenda Page 30

Judson 8. Baggett
MBA,CPA,CVA,Ponner
Marci Reutimann
CPA, Portner

System Review Report

11 6815 Dairy Road Zophyrhitls, FL 33542
� (813) 788-2155
A (813) 782-8606

To the Directors	November2, 2016
Berger, Toombs, Elam, Gaines & Frank, CPAs PL
and the Peer Review Committee of the Florida Institute of Certified Public Accountants

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

B().ag��, Reu�timann &-A�sso�ciates\., -CPAs, PA

-	-

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Agenda Page 31

ADDENDUM TO ENGAGEMENT LETTER BETWEEN BERGER, TOOMBS, ELAM, GAINES AND FRANK AND LIVE OAK II COMMUNITY DEVELEOPMENT DISTRICT
(DATED SEPTEMBER 12, 2019)

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

Keep and maintain public records required by the District to perform the services or work set forth in this Agreement; and

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

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

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.

Agenda Page 32

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:
Title: Director
Date: September 12, 2019

By:
Title:
Date:	10- .r· I '7