Rivers Edge II

Community Development District

October 17, 2018

Rivers Edge II

Community Development District

475 West Town Place, Suite 114, St. Augustine, Florida 32092

Phone: 904-940-5850 - Fax: 904-940-5899

October 10, 2018

Board of Supervisors

Rivers Edge II
Community Development District

Dear Board Members:

The  Rivers  Edge  II  Community  Development  District  Organizational  Meeting  is  scheduled  for

Wednesday, October 17, 2018 at 10:30 a.m. at the RiverTown Amenity Center, 156 Landing Street, St. Johns, Florida. Following is the advance agenda for the meeting:

Audit Committee Meeting

I.  Call to Order
II. Review and Rank Proposals Received in Response to the RFP for Audit Services III. Other Business
IV.  Adjournment

Board of Supervisors Meeting
I.  Call to Order
II.  Public Comment
III. Affidavits of Publication IV. Public Hearings
A.	Public Hearing to Consider Resolution 2018-25, Expressing the District’s Intent to Utilize the Uniform Method of Collection
B.	Public Hearing to Consider Resolution 2018-26, Relating to Annual Appropriations and Adopting the Budgets for Fiscal Years 2017/2018 and 2018/2019
V.	Acceptance of the Audit Committee’s Recommendation

VI.  Discussion of the District’s Rates and Fees
VII.  Approval of the Minutes of the September 12, 2018 Meeting
VIII.  Staff Reports
A.	District Counsel
B.	District Engineer
C.	District Manager
D.	Amenity Manager – Report
E.	Operations Manager – Report

IX.  Financial Reports
A.	Balance Sheet and Income Statement
B.	Consideration of Funding Request No. 3 X. Supervisors’ Requests and Audience Comments

XI.	Next Scheduled Meeting – November 14, 2018 at 10:30 a.m. at the RiverTown Amenity Center

XII.  Adjournment

Prior to the Board of Supervisors meeting the Audit Committee will convene to review and rank proposals received in response to the RFP. Copies of the audit proposals and ranking sheet are enclosed under section V.

Enclosed under the third order of business are copies of the affidavits of publication for the two public hearings and audit committee meeting.

The fourth order of business is the public hearings to utilize the uniform method of collection and adopt the budgets for Fiscal Years 2018 and 2019. Copies of resolutions 2018-25 and 2018-26 will be provided under separate cover.

Enclosed under the fifth order of business are copies of the audit proposals and the ranking sheet.

Enclosed under the seventh order of business is a copy of the minutes of the September 12, 2018 meeting.

Enclosed under the ninth order of business are copies of the financial reports and funding request number three for your review and approval.

We look forward to seeing you at the meeting. In the meantime, if you have any questions, please do not hesitate to call us at (904) 940-5850.

Sincerely,

James Perry

James Perry

District Manager

Rivers Edge II Community
Development District

2

AGENDA

Rivers Edge II

Community Development District

Agenda

Wednesday	RiverTown Amenity Center	
October 17, 2018	156 Landing Street	
10:30 a.m.	St. Johns, Florida 32259	
	Staff Call In #: 1-888-394-8197	
	Passcode: 642203	
	Website: www.riversedge2cdd.com	
	Audit Committee Meeting	
I.  Call to Order		

II.	Review and Rank Proposals Received in Response to the RFP for Audit Services (Enclosed under section V)

III.	Other Business	
IV.	Adjournment	
		Board of Supervisors Meeting	
I.	Call to Order	
II.	Public Comment	
III.	Affidavits of Publication	
IV.	Public Hearings	
	A.	Public Hearing to Consider Resolution 2018-25, Expressing the District’s Intent	
		to Utilize the Uniform Method of Collection	
	B.	Public   Hearing   to   Consider   Resolution   2018-26,   Relating   to   Annual	
		Appropriations  and  Adopting  the  Budgets  for  Fiscal  Years  2017/2018  and	
		2018/2019	
V.	Acceptance of the Audit Committee’s Recommendation	
VI.	Discussion of the District’s Rates and Fees	

VII.  Approval of the Minutes of the September 12, 2018 Meeting

VIII.  Staff Reports

A.	District Counsel

B.	District Engineer

C.	District Manager

D.	Amenity Manager – Report

E.	Operations Manager – Report

IX.  Financial Reports

A.	Balance Sheet and Income Statement

B.	Consideration of Funding Request No. 3

X.  Supervisors’ Requests and Audience Comments

XI.	Next Scheduled Meeting – November 14, 2018 at 10:30 a.m. at the RiverTown Amenity Center

XII.  Adjournment

THIRD ORDER OF BUSINESS

FOURTH ORDER OF BUSINESS

B.

Fiscal Year 2018 Approved Budget

Fiscal Year 2019 Approved Budget

Rivers Edge 2 Community Development District

October 17, 2018

Rivers Edge 2

Community Development District

TABLE OF CONTENTS

General Fund	Page 1		
Budget			
Narrative	Page 2-3		

Rivers Edge 2

Community Development District

		Approved		Approved			
		FY 2018 Budget		FY 2019 Budget			
Revenues						
Developer Contributions	$48,150	$116,675			
							
Total Revenues	$48,150	$116,675			
Expenditures						
						
Administrative						
Engineering	$3,750	$15,000	(1)		
Arbitrage	$0	$600			
Dissemination Agent	$0	$3,500	(1)		
Attorney	$5,000	$20,000			
Annual Audit	$5,000	$5,000	(1)		
Trustee Fees	$0	$4,000			
Management Fees	$11,250	$45,000			
Construction Accounting	$0	$3,500			
Information Technology	$300	$1,200			
Telephone	$100	$300			
Postage	$375	$1,500			
Printing & Binding	$250	$1,000			
Insurance	$3,000	$5,800			
Legal Advertising	$3,500	$4,000			
Other Current Charges	$200	$600			
Office Supplies	$250	$1,000			
Dues, Licenses & Subscriptions	$175	$175			
Website design/compliance	$15,000	$4,500			
							
Total Expenditures		$48,150		$116,675			
							
Excess Revenues (Expenditures)	$0	$0			

(1)  Expenditures related to the issuance of Bonds.

Page 1

Rivers Edge 2

Community Development District

General Fund Budget

REVENUES:

Developer Contributions

The District will enter into a Funding Agreement with the Developer to fund the General Fund expenditures for the Fiscal Year.

EXPENDITURES:

Administrative:

Engineering Fees

The District’s engineering firm, Proceser, Inc, will be providing general engineering services to the District, i.e. attendance and preparation for monthly board meetings, review invoices, etc.

Arbitrage

The District is required to annually have an arbitrage rebate calculation on the District’s Bonds. The District will contract with an independent auditing firm to perform the calculations.

Dissemination Agent

The District is required by the Security and Exchange Commission to comply with Rule 15(c)(2) -12(b)(5), which relates to additional reporting requirements for un-rated bond issues.

Attorney

The District’s legal counsel, Hopping Green and Sams, will be providing general legal services to the District, i.e. attendance and preparation for monthly meetings, review operating & maintenance contracts, etc.

Annual Audit

The District is required annually to conduct an audit of its financial records by an Independent Certified Public Accounting Firm.

Trustee Fees

The District will issue bonds to be held with a Trustee at a qualified Bank. The amount of trustee fees is based on the agreement between the bank and the District.

2

Management Fees

The District receives Management, Accounting and Administrative services as part of a Management Agreement with Governmental Management Services, LLC. These services are further outlined in Exhibit “A” of the Management Agreement.

Construction Accounting

The District receives annual constriction account services as part of a Management Agreement with Governmental Management Services, LLC.

Information Technology

The cost related to District’s accounting and information systems.

Telephone

Telephone and fax machine.

Postage

Mailing of agenda packages, overnight deliveries, correspondence, etc.

Printing & Binding

Printing and Binding agenda packages for board meetings, printing of computerized checks, stationary, envelopes, etc.

Insurance

The District’s General Liability & Public Officials Liability Insurance policy is with Florida Insurance Alliance (FIA). The amount is based upon prior year’s premiums.

Legal Advertising

The District is required to advertise various notices for Board meetings, public hearings etc. in a newspaper of general circulation.

Other Current Charges

This includes bank charges and any other miscellaneous expenses that are incurred during the year by the District.

Office Supplies

Miscellaneous office supplies.

Dues, Licenses & Subscriptions

The District is required to pay an annual fee to the Department of Community Affairs for $175. This is the only expense under this category for the District.

Website Design/Compliance

Cost related to District website creation and maintenance, electronic compliance with Florida Statutes and other electronic data requirements.

3

FIFTH ORDER OF BUSINESS

Rivers Edge II Community Development District

Auditor Selection Evaluation Criteria

	Ability of Personnel	Proposer's Experience	Understanding of Scope	Ability to Furnish the	Price			
			of Work	Required Services				
								
	(e.g., geographic locations	(e.g., past record and		Extent to which the				
	of the firm's headquarters	experience of the Proposer						
				proposal demonstrates the				
	or permanent office in	in similar projects; volume						
				adequacy of proposer's	Points will be awarded			
	relation to the project;	of work previously	Extent to which the					
				financial resources and	based upon the price bid			
	capabilities and experience	performed by the firm; past	proposal demonstrates an					
				stability as a business	for the rendering of the	Point Total		
	of key personnel; present	performance for other	understanding of the					
				entity necessary to	services and			
	ability to manage this	Community Development	District's needs for the					
				complete the services	reasonableness of the price			
	project; evaluation of	Districts in other contracts;	services requested.					
				required (e.g., the existence	to services.			
	existing workload;	character; integrity;						
				of any natural disaster plan				
	proposed staffing levels,	reputation of respondent,						
				for business operations).				
	etc.)	etc.)						
								
Proposer	20	20	20	20	20	100		

Berger, Toombs, Elam, Gaines & Frank

Carr Riggs & Ingram

Grau & Associates

RIVERS EDGE II CDD

AUDITOR SELECTION

EVALUATION CRITERIA

1.	Ability of Personnel .	(20 Points)

(E.g., geographic locations of the firm’s headquarters or permanent office in relation to the project; capabilities and experience of key personnel; present ability to manage this project; evaluation of existing work load; proposed staffing levels, etc.)

2.	Proposer’s Experience.	(20 Points)

(E.g. past record and experience of the Proposer in similar projects; volume of work previously performed by the firm; past performance for other Community Development Districts in other contracts; character, integrity, reputation of respondent, etc.)

3.	Understanding of Scope of Work.	(20 Points)

Extent to which the proposal demonstrates an understanding of the District’s needs for the services requested.

4.	Ability to Furnish the Required Services.	(20 Points)

Extent to which the proposal demonstrates the adequacy of Proposer’s financial resources and stability as a business entity necessary to complete the services required. (E.g., the existence of any natural disaster plan for business operations)

5.	Price.	(20 Points)

Points will be awarded based upon the price bid for the rendering of the services and reasonableness of the price to the services.

RIVERS EDGE II

COMMUNITY DEVELOPMENT DISTRICT

PROPOSAL FOR AUDIT SERVICES

PROPOSED BY:

Berger, Toombs, Elam, Gaines & Frank

CERTIFIED PUBLIC ACCOUNTANTS, PL

600 Citrus Avenue, Suite 200	(772) 461-6120	
Fort Pierce, Florida 34950		

CONTACT PERSON:

J. W. Gaines, CPA, Director

DATE OF PROPOSAL:

October 4, 2018

TABLE OF CONTENTS		
DESCRIPTION OF SECTION	PAGE	
A.  Letter of Transmittal	1-2	
B.  Profile of the Proposer		
Description and History of Audit Firm	3	
Professional Staff Resources	4-5	
Ability to Furnish the Required Services	5	
Arbitrage Rebate Services	6	
A.  Governmental Auditing Experience	7-14	
B.  Fee Schedule	15	
C. Scope of Work to be Performed	15	
D. Resumes	16-30	
E.  Peer Review Letter	31	
F.  Additional Documents Required		
Instructions to Proposers	32-33	
Evaluation Criteria Sheet	34	

~~~~ Berger, Toombs, Elam,
.....OJ Gaines & Frank

Certified Public Accountants	PL

600 Citrus Avenue

Suite 200

Fort Pierce, Florida 34950

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

October 4, 2018

Rivers Edge II Community Development District

Governmental Management Services

135 W . Central Blvd ., Suite 320

Orlando, Florida 32801

Dear District Manager:

Thank you very much for the opportunity to present our professional credentials to provide audit services for Rivers Edge II Community Development District.

Berger, Toombs, Elam, Gaines & Frank, Certified Public Accountants, PL has assembled a team of governmental and nonprofit specialists second to none to serve our clients . Our firm has the necessary qualifications and experience to serve as the independent auditors for Rivers Edge II Community Development District. We will provide you with top quality, responsive service.

Experience

Berger, Toombs, Elam, Gaines & Frank, Certified Public Accountants, PL is a recognized leader in providing services to governmental and nonprofit agencies throughout Florida. We have been the independent auditors for a number of local governmental agencies and through our experience in performing their audits, we have been able to increase our audit efficiency and; therefore, reduce costs. We have continually passed this cost savings on to our clients and will continue to do so in the future. As a result of our experience and expertise, we have developed an effective and efficient audit approach designed to meet or exceed the performance specifications in accordance with auditing standards generally accepted in the United States of America , the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, and the standards for financial and compliance audits. We will conduct the audit in accordance with auditing standards generally accepted in the United States of America; "Government Auditing Standards" issued by the Comptroller General of the United States; the provisions of the Single Audit Act, Subpart F of Title 2 US Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, with minimal disruption to your operations. Our firm has frequent technical updates to keep our personnel informed and up-to-date on all changes that are occurring within the industry.

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

~Berger, Toombs, Elam,
,OJ Caines & Frank

Rivers Edge II Community Development District

October 4, 2018

Our firm is a member of the Government Audit Quality Center, an organization dedicated to improving government audit quality. We also utilize the audit program software of a nationally recognized CPA firm to assure us that we are up to date with all auditing standards and to assist us maintain maximum audit efficiencies.

To facilitate your evaluation of our qualifications and experience, we have arranged this proposal to include a resume of our firm, including our available staff, our extensive prior governmental and nonprofit auditing experience and clients to be contacted.

You need a firm that will provide an efficient, cost-effective, high-quality audit within critical time constraints . You need a firm with the prerequisite governmental and nonprofit experience to perform your audit according to stringent legal and regulatory requirements, a firm that understands the complex nature of community development districts and their unique compliance requirements . You need a firm with recognized governmental and nonprofit specialists within the finance and governmental communities. And, certainly, you need a firm that will provide you with valuable feedback to enhance your current and future operations. Berger, Toombs, Elam, Gaines & Frank, Certified Public Accountants, PL is that firm. J. W. Gaines is the person authorized to make representations for the firm.

Thank you again for the opportunity to submit this proposal to Rivers Edge II Community Development District.

Very truly yours,

JJJ/t)}jfi- Jam/otY ~
OiJ~~Jit~
Berger, Toombs, Elam, Gaines & Frank

Certified Public Accountants PL

Fort Pierce, Florida

- 2 -

PROFILE OF THE PROPOSER

Description and History of Audit Firm

Berger, Toombs, Elam, Gaines & Frank, Certified Public Accountants, PL is a Treasure Coast public accounting firm, which qualifies as a small business firm, as established by the Small Business Administration (13 CFR 121.38), with offices in Fort Pierce and Stuart. We are a member of the Florida Institute of Certified Public Accountants and the American Institute of Certified Public Accountants. The firm was formed from the merger of Edwards, Berger, Harris & Company (originated in 1972) and McAlpin, Curtis & Associates (originated in 1949). J. W. Gaines and Associates (originated in 1979) merged with the firm in 2004. Our tremendous growth rate experienced over the last 69 years is directly attributable to the firm’s unrelenting dedication to providing the highest quality, responsive professional services attainable to its clients.

We are a member of the Private Companies Practice Section (PCPS) of the American Institute of Certified Public Accountants (AICPA) to assure we meet the highest standards. Membership in this practice section requires that our firm meet more stringent standards than standard AICPA membership. These rigorous requirements include the requirement of a triennial peer review of our firm’s auditing and accounting practice and annual Continuing Professional Education (CPE) for all accounting staff (whether CPA or non-CPA) . For standard AICPA membership, only a quality review is required and only CPAs must meet CPE requirements.

We are also a member of the Government Audit Quality Center (“the Center”) of the American Institute of Certified Public Accountants to assure the quality of our government audits. Membership in the Center, which is voluntary, requires our firm to comply with additional standards to promote the quality of government audits.

We have been extensively involved in serving local government entities with professional accounting, auditing and consulting services throughout the entire 69 year history of our firm. Our substantial experience over the years makes us uniquely qualified to provide accounting, auditing, and consulting services to these clients. We are a recognized leader in providing services to governmental and nonprofit agencies on the Treasure Coast and in Central and South Florida, with extensive experience in auditing community development districts and water control districts. We were the independent auditors of the City of Fort Pierce for over 37 years and currently, we are the independent auditors for St. Lucie County since 2002, and for 34 of the 38 years that the county has been audited by CPA firms. Additionally, we have performed audits of the City of Stuart, the City of Vero Beach, Indian River County and Martin County. We also presently audit over 75 Community Development Districts throughout Florida.

Our firm was founded on the belief that we are better able to respond to our clients needs through education, experience, independence, quality control, and personal service. Our firm’s commitment to quality is reflected in our endeavor of professional excellence via continuing education, the use of the latest computer technology, professional membership in PCPS and peer review.

We believe our approach to audit engagements, intelligence and innovation teamed with sound professional judgment enables us to explore new concepts while remaining sensitive to the fundamental need for practical solutions. We take pride in giving you the assurance that the personal assistance you receive comes from years of advanced training, technical experience and financial acumen.

- 3 -

Professional Staff Resources

Berger, Toombs, Elam, Gaines & Frank, Certified Public Accountants, PL has a total of 27 professional and administrative staff (including 12 professional staff with extensive experience servicing government entities). The work will be performed out of our Fort Pierce office with a proposed staff of one senior accountant and one or two staff accountants supervised by an audit manager and audit partner. With the exception of the directors of the firm’s offices, the professional staff is not specifically assigned to any of our individual offices. The professional and administrative staff resources available to you through Berger, Toombs, Elam, Gaines & Frank, Certified Public Accountants, PL are as follows:

	Total	
Partners/Directors (CPA’s)	5	
Principals (CPA)	1	
Managers (CPA)	1	
Senior/Supervisor Accountants (1 CPA)	3	
Staff Accountants	7	
Computer Specialist	1	
Paraprofessional	6	
Administrative	4	
Total – all personnel	28	

Following is a brief description of each employee classification:

Staff Accountant – Staff accountants work directly under the constant supervision of the auditor-in-charge and, are responsible for the various testing of documents, account analysis and any other duties as his/her supervisor believes appropriate. Minimum qualification for a staff accountant is graduation from an accredited university or college with a degree in accounting or equivalent.

Senior Accountant – A senior accountant must possess all the qualifications of the staff accountant, in addition to being able to draft the necessary reports and financial statements, and supervise other staff accountants when necessary.

Managers – A manager must possess the qualifications of the senior accountant, plus be able to work without extensive supervision from the auditor-in -charge. The manager should be able to draft audit reports from start to finish and to supervise the audit team, if necessary.

Principal – A principal is a partner/director in training. He has been a manager for several years and possesses the technical skills to act as the auditor–in-charge. A principal has no financial interest in the firm.

Partner/Director – The director has extensive governmental auditing experience and acts as the auditor-in-charge. Directors have a financial interest in the firm.

- 4 -

Professional Staff Resources (Continued)

Independence – Independence of the public accounting firm, with respect to the audit client, is the foundation from which the public gains its trust in the opinion issued by the public accounting firm at the end of the audit process. This independence must be in appearance as well as in fact. The public must perceive that the accounting firm is independent of the audit entity to insure that nothing would compromise the opinion issued by the public accounting firm. Berger, Toombs, Elam, Gaines & Frank, Certified Public Accountants, PL is independent of Rivers Edge II Community Development District, including its elected officials and related parties, at the date of this proposal, as defined by the following rules, regulations, and standards:

AuSection 220 – Statements on Auditing Standards issued by the American Institute of Certified Public Accountants;

ET Sections 101 and 102 – Code of Professional Conduct of the American Institute of Certified Public Accountants;

Chapter 21A-1, Florida Administrative Code;

Section 473.315, Florida Statutes; and,

Government Auditing Standards, issued by the Comptroller General of the United States.

On an annual basis, all members of the firm are required to confirm, in writing, that they have no personal or financial relationships or holding that would impair their independence with regard to the firm’s clients.

Independence is a hallmark of our profession. We encourage our staff to use professional judgment in situations where our independence could be impaired or the perception of a conflict of interest might exist. In the governmental sector, public perception is as important as professional standards. Therefore, the utmost care must be exercised by independent auditors in the performance of their duties.

Ability to Furnish the Required Services

As previously noted in the Profile of the Proposer section of this document, our firm has been in existence for over 69 years. We have provided audit services to some clients for over 30 years continually. Our firm is insured against physical loss through commercial insurance and we also carry liability insurance. The majority of our audit documentation is stored electronically, both on our office network and on each employee laptop or computer assigned to each specific job. Our office computer network is backed up on tape, so in the event of a total equipment loss, we can restore all data as soon as replacement equipment is acquired. In addition, our field laptop computers carry the same data and can be used in the event of emergency with virtually no delay in completing the required services.

- 5 -

ADDITIONAL SERVICES PROVIDED

Arbitrage Rebate Services

Berger, Toombs, Elam, Gaines & Frank, Certified Public Accountants, PL also provides arbitrage rebate compliance and related services to governmental issuers. The Tax Reform Act of 1986 requires issuers of most tax-exempt obligations to pay (i.e., “rebate”) to the United States government any arbitrage profits. Arbitrage profits are earnings on the investment of bond proceeds and certain other monies in excess of what would have been earned had such monies been invested at a yield equal to the yield on the bonds.

Federal tax law requires that interim rebate calculations and payments are due at the end of every fifth bond year. Final payment is required upon redemption of the bonds. More frequent calculations may be deemed advisable by an issuer’s auditor, trustee or bond counsel or to assure that accurate and current records are available. These more frequent requirements are usually contained in the Arbitrage or Rebate Certificate with respect to the bonds.

Our firm performs a comprehensive rebate analysis and includes the following:

•	Verifying that the issue is subject to rebate;
•	Calculating the bond yield;
•	Identifying, and separately accounting for, all “Gross Proceeds” (as that term is defined in the Code) of the bond issue, including those requiring analysis due to “transferred proceeds” and/or “commingled funds” circumstances;

•	Determining what general and/or elective options are available to Gross proceeds of the issue;

•	Calculating the issue’s excess investment earning (rebate liability), if any;
•	Delivering appropriate documentation to support all calculations;
•	Providing an executive summary identifying the methodology employed, major assumptions, conclusions, and any other recommendations for changes in recordkeeping and investment policies;

•	Assisting as necessary in the event of an Internal Revenue Service inquiry; and,
•	Consulting with issue staff, as necessary, regarding arbitrage related matters.

- 6 -

GOVERNMENTAL AUDITING EXPERIENCE

Berger, Toombs, Elam, Gaines & Frank, Certified Public Accountants, PL has been practicing public accounting in Florida for 69 years. Our success over the years has been the result of a strong commitment to providing personalized quality service to our clients.

The current members of our firm have performed audits of over 900 community development districts, and over 1,800 audits of municipalities, counties and other governmental entities such as the City of Fort Pierce and St. Lucie County.

Our firm provides a variety of accounting, auditing, tax litigation support, and consulting services. Some of the professional accounting, auditing and management consulting services that are provided by our firm are listed below:

•	Performance of annual financial and compliance audits, including Single Audits of state and federal financial assistance programs, under the provisions of the Single Audit Act, Subpart F of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), with minimal disruptions to your operations;
•	Performance of special compliance audits to ascertain compliance with the applicable local, state and federal laws and regulations;

•	Issuance of comfort letters and consent letters in conjunction with the issuance of tax-exempt debt obligations, including compiling financial data and interim period financial statement reviews;

•	Calculation of estimated and actual federal arbitrage rebates;
•	Assistance in compiling historical financial data for first-time and supplemental submissions for GFOA Certificate of Achievement for Excellence in Financial Reporting;

•	Preparation of indirect cost allocation systems in accordance with Federal and State regulatory requirements;

•	Providing human resource and employee benefit consulting;
•	Performance of automation feasibility studies and disaster recovery plans;
•	Performance feasibility studies concerning major fixed asset acquisitions and utility plant expansion plans (including electric, water, pollution control, and sanitation utilities); and

•	Assistance in litigation, including testimony in civil and criminal court.
•	Assist clients who utilize QuickBooks software with their software needs. Our Certified QuickBooks Advisor has undergone extensive training through QuickBooks and has passed several exams to attain this Certification.

Continuing Professional Education

All members of the governmental audit staff of our firm, and audit team members assigned to this engagement, are in compliance with the Continuing Professional Education (CPE) requirements set forth in Government Auditing Standards issued by the Comptroller General of the United States. In addition, our firm is in compliance with the applicable provisions of the Florida Statutes that require CPA’s to have met certain CPE requirements prior to proposing on governmental audit engagements.

- 7 -

GOVERNMENTAL AUDITING EXPERIENCE (CONTINUED)

The audit team has extensive experience in performing governmental audits and is exposed to intensive and continuing concentration on these types of audits. Due to the total number of governmental audits our team performs, each member of our governmental staff must understand and be able to perform several types of governmental audits. It is our objective to provide each professional employee fifty hours or more of comprehensive continuing professional education each year. This is accomplished through attending seminars throughout Florida and is reinforced through in-house training.

Our firm has made a steadfast commitment to professional education. Our active attendance and participation in continuing professional education is a major part of our objective to obtain the most recent knowledge on issues which are of importance to our clients. We are growing on the reputation for work that our firm is providing today.

Quality Control Program

Quality control requires continuing commitment to professional excellence. Berger, Toombs, Elam, Gaines & Frank, Certified Public Accountants, PL is formally dedicated to that commitment.

To ensure maintaining the standards of working excellence required by our firm, we joined the Private Companies Practice Section (PCPS) of the American Institute of Certified Public Accountants (AICPA). To be a participating member firm of this practice section, a firm must obtain an independent Peer Review of its quality control policies and procedures to ascertain the firm’s compliance with existing auditing standards on the applicable engagements.

The scope of the Peer Review is comprehensive in that it specifically reviews the following quality control policies and procedures of the participating firm:

•	Professional, economic, and administrative independence;
•	Assignment of professional personnel to engagements;
•	Consultation on technical matters;
•	Supervision of engagement personnel;
•	Hiring and employment of personnel;
•	Professional development;
•	Advancement;
•	Acceptance and continuation of clients; and,
•	Inspection and review system.

We believe that our commitment to the program is rewarding not only to our firm, but primarily to our clients.

The external independent Peer Review of the elements of our quality control policies and procedures performed by an independent certified public accountant, approved by the PCPS of the AICPA, provides you with the assurance that we continue to conform to standards of the profession in the conduct of our accounting and auditing practice.

- 8 -

GOVERNMENTAL AUDITING EXPERIENCE (CONTINUED)

Our firm is also a member of Governmental Audit Quality Center (GAQC), a voluntary membership center for CPA firms that perform governmental audits. This center promotes the quality of governmental audits.

Our firm has completed successive Peer Reviews. These reviews included a representative sample of our firm’s local governmental auditing engagements. As a result of these reviews, our firm obtained an unqualified opinion on our quality control program and work procedures. On page 31 is a copy of our most recent Peer Review report. It should be noted that we received a pass rating.

Our firm has never had any disciplinary actions by state regulatory bodies or professional organizations.

As our firm performs approximately one hundred audits each year that are reviewed by federal, state or local entities, we are constantly dealing with questions from these entities about our audits. We are pleased to say that any questions that have been raised were minor issues and were easily resolved without re-issuing any reports.

Certificate of Achievement for Excellence in Financial Reporting (CAFR)

We are proud and honored to have been involved with the City of Fort Pierce and the Fort Pierce Utilities Authority when they received their first Certificates of Achievement for Excellence in Financial Reporting for the fiscal years ended September 30, 1988 and 1994, respectively. We were also instrumental in the City of Stuart receiving the award, in our first year of performing their audit, for the year ended September 30, 1999.

We also assisted St. Lucie County, Florida for the year ended September 30, 2003, in preparing their first Comprehensive Annual Financial Report, and St. Lucie County has received their Certificate of Achievement for Excellence in Financial Reporting every year since.

As continued commitment to insuring that we are providing the highest level of experience, we have had at least one employee of our firm serve on the GFOA – Special Review Committee since the mid-1980s. This committee is made up of selective Certified Public Accountants throughout the United States who have demonstrated their high level of knowledge and expertise in governmental accounting. Each committee member attends a special review meeting at the Annual GFOA Conference. At this meeting, the committee reports on the Certificate of Achievement Program’s most recent results, future goals, and common reporting deficiencies.

We feel that our previous experience in assisting the City of Fort Pierce, the Fort Pierce Utilities Authority and St. Lucie County obtain their first CAFRs, and the City of Stuart in continuing to receive a CAFR and our firm’s continued involvement with the GFOA, and the CAFR review committee make us a valued asset for any client in the field of governmental financial reporting.

- 9 -

GOVERNMENTAL AUDIT EXPERIENCE (CONTINUED)

References

Capron Trail Community Development	Gateway Community Development
District	District
Jeff Walker, Special District Services	Stephen Bloom, Severn Trent Management
(561) 630-4922	(954) 753-5841

The Reserve Community Development District	Port of the Islands Community Development
District
Darrin Mossing, Governmental Management	Cal Teague, Premier District Management
Services LLC
(407) 841-5524	(239) 690-7100 ext 101

In addition to the above, we have the following additional governmental audit experience:

Community Development Districts

Aberdeen Community Development	Celebration Pointe Community

District	Development District

Amelia Concourse Community	Channing Park Community

Development District	Development District

Anthem Park Communnity	Cheval West Community

Development District	Development District

Arborwood Community Development	City Center Community Development

District	District

Bannon Lakes Community	Colonial Country Club Community

Development District	Development District

Beacon Lakes Community	Creekside at Twin Creeks Community

Development District	Development District

Candler Hills East Community	Deer Run Community Development

Development District	District

Capron Trail Community Development	Diamond Hill Community

District	Development District

Cedar Hammock Community	Eagle Point Community Development

Development District	District

- 10 -

GOVERNMENTAL AUDIT EXPERIENCE (CONTINUED)

Eastlake Oaks Community	Legends Bay Community

Development District	Development District

Easton Park Community Development	Live Oak No 2 Community

District	Development District

Estancia @ Wiregrass Community	Marshall Creek Community

Development District	Development District

Forest Brooke Community	Meadow View at Twin Lakes Community

Development District	Development District

Gramercy Park Community	Meadow Point III Community

Development District	Development District

Greyhawk Landing Community	Meadow Point IV Community

Development District	Development District

Griffin Lakes Community Development	Midtown Miami Community

District	Development District

Habitat Community Development	Mira Lago Community Development

District	District

Harmony Community Development	Narcoossee Community Development

District	District

Heritage Harbor Community	New Port Tampa Bay Community

Development District	Development District

Heritage Isles Community	Overoaks Community Development

Development District	District

Heritage Lake Park Community	Panther Trace 2 Community

Development District	Development District

Heritage Palms Community	Pine Island Community Development

Development District	District

Julington Creek Community	Pine Ridge Community Development

Development District	District

Lake Bernadette Community	Piney-Z Community Development

Development District	District

- 11 -

GOVERNMENTAL AUDIT EXPERIENCE (CONTINUED)

Remington Community Development	Southern Hills Plantation III Community

District	Development District

Renaissance Commons Community	St. John's Forest Community

Development District	Development District

Reserve Community Development	Stoneybrook West Community

District	Development District

Reserve at Pradera Community	Tern Bay Community Development

Development District	District

Ridgewood Trails Community	Terracina Community Development

Development District	District

River Hall Community Development	Twin Creeks North Community

District	Development District

River Place on the St. Lucie Community	Valencia Acres Community

Development District	Development District

Riverwood Community Development	Villages of Bloomingdale Community

District	Development District

Riverwood Estates Community	Westside Community Development

Development District	District

Rolling Hills Community Development	Willow Creek Community Development

District	District

Sampson Creek Community	Winston Trails Community

Development District	Development District

Seminole Improvement District

Solterra Resort Community

Development District

South Village Community

Development District

Southern Hills Plantation I Community

District

- 12 -

GOVERNMENTAL AUDIT EXPERIENCE (CONTINUED)

Other Governmental Organizations

City of Westlake	Office of the Medical Examiner,		
	District 19		
Florida Inland Navigation District	Rupert J. Smith Law Library		
Fort Pierce Farms Water Control	of St. Lucie County		
	St. Lucie Education Foundation		
District			
Indian River Regional Crime	Town of Ocean Breeze Park		
Laboratory, District 19, Florida	Troup Indiantown Water		
			
Jobs and Education Partnership	Control District		

Current or Recent Single Audits,

St. Lucie County, Florida
Early Learning Coalition, Inc.
Treasure Coast Food Bank, Inc.

Members of our audit team have acquired extensive experience from performing or participating in over 1,800 audits of governments, independent special taxing districts, school boards, and other agencies that receive public money and utilize fund accounting.

Much of our firm’s auditing experience is with compliance auditing, which is required for publicly financed agencies. In this type of audit, we do a financial examination and also confirm compliance with various statutory and regulatory guidelines.

Following is a summary of our other experience, including Auditor General experience, as it pertains to other governmental and fund accounting audits.

Counties

(Includes elected constitutional officers, utilities and dependent taxing districts)

Indian River
Martin
Okeechobee
Palm Beach

Municipalities

City of Port St. Lucie
City of Vero Beach
Town of Orchid

- 13 -

GOVERNMENTAL AUDIT EXPERIENCE (CONTINUED)

Special Districts

Boggy Creek Community Development District
Coquina Water Control District
Dovera Community Development District
Durbin Crossing Community Development District
Golden Lakes Community Development District
Lakewood Ranch Community Development District
Martin Soil and Water Conservation District
Myrtle Creek Community Development District
St. Lucie County – Fort Pierce Fire District
The Crossings at Fleming Island
St. Lucie West Services District
Indian River County Mosquito Control District
St. John’s Water Control District
Westchase and Westchase East Community Development Districts
Pier Park Community Development District
Verandahs Community Development District
Magnolia Park Community Development District

Schools and Colleges

Federal Student Aid Programs – Indian River Community College
Indian River Community College
Okeechobee County District School Board
St. Lucie County District School Board

State and County Agencies

Central Florida Foreign-Trade Zone, Inc. (a nonprofit organization affiliated with the St. Lucie County Board of County Commissioners)
Florida School for Boys at Okeechobee
Indian River Community College Crime Laboratory Indian River Correctional Institution

- 14 -

FEE SCHEDULE

We propose the fee for our audit services described below to be $3,000 for the year ended September 30, 2018, $3,150 for the years ended September 30 2019 and 2020. The fee is contingent upon the financial records and accounting systems of Rivers Edge II Community Development District being “audit ready” and the financial activity for the District is not materially increased. If we discover that additional preparation work or subsidiary schedules are needed, we will consult with your authorized representative. We can assist with this additional work at our standard rates should you desire.

SCOPE OF WORK TO BE PERFORMED

If selected as the District's auditors, we will perform a financial and compliance audit in accordance with Section 11.45, Florida Statutes, in order to express an opinion on an annual basis on the financial statements of Rivers Edge II Community Development District as of September 30, 2018, 2019, and 2020. The audits will be performed to the extent necessary to express an opinion on the fairness in all material respects with which the financial statements present the financial position, results of operations and changes in financial position in conformity with generally accepted accounting principles and to determine whether, for selected transactions, operations are properly conducted in accordance with legal and regulatory requirements. Reportable conditions that are also material weaknesses shall be identified as such in the Auditors' Report on Internal Control over Financial Reporting and on Compliance and Other Matters. Other (non-reportable) conditions discovered during the course of the audit will be reported in a separate letter to management, which will be referred to in the Auditors' Report on Internal Control over Financial Reporting and on Compliance and Other Matters.

Our audit will be performed in accordance with standards for financial and compliance audits contained in Government Auditing Standards, as well as in compliance with rules and regulations of audits of special districts as set forth by the State Auditor General in Chapter 10.550, Local Governmental Entity Audits, and other relevant federal, state and county orders, statutes, ordinances, charter, resolutions, bond covenants, Administrative Code and procedures, or rules and regulations which may pertain to the work required in the engagement.

The primary purpose of our audit will be to express an opinion on the financial statements discussed above. It should be noted that such audits are subject to the inherent risk that errors or irregularities may not be detected. However, if conditions are discovered which lead to the belief that material errors, defalcations or other irregularities may exist or if other circumstances are encountered that require extended services, we will promptly notify the appropriate individual.

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Commitment to Quality Service

Personnel Qualifications and Experience

J. W. Gaines, CPA, CITP

Director – 38 years

Education

 Stetson University, B.B.A. – Accounting

Registrations
•	Certified Public Accountant – State of Florida, State Board of Accountancy
•	Certified Information Technology Professional (CITP) – American Institute of Certified Public Accountants

Professional Affiliations/Community Service
•	Member of the American and Florida Institutes of Certified Public Accountants
•	Affiliate member Government Finance Officers Association
•	Past President, Vice President-Campaign Chairman, Vice President and Board Member of United Way of St. Lucie County, 1989 - 1994
•	Past President, President Elect, Secretary and Treasurer of the Treasure Coast Chapter of the Florida Institute of Certified Public Accountants, 1988 - 1991

•	Past President of Ft. Pierce Kiwanis Club, 1994 - 95, Member/Board Member since 1982
•	Past President, Vice President and Treasurer of St. Lucie County Chapter of the American Cancer Society, 1980 -1986

•	Member of the St. Lucie County Chamber of Commerce, Member Board of Directors, Treasurer, September 2002 - 2006, Chairman Elect 2007, Chairman 2008, Past Chairman 2009

•	Member Lawnwood Regional Medical Center Board of Trustees, 2000 – Present, Chairman 2013 - Present

•	Member of St. Lucie County Citizens Budget Committee, 2001 – 2002
•	Member of Ft. Pierce Citizens Budget Advisory Committee, 2010 – 2011
•	Member of Ft. Pierce Civil Service Appeals Board, 2013 - Present

Professional Experience
•	Miles Grant Development/Country Club – Stuart, Florida, July 1975 – October 1976
•	State Auditor General’s Office – Public Accounts Auditor – November 1976 through September 1979

•	Director - Berger, Toombs, Elam, Gaines & Frank, Certified Public Accountants PL, responsible for numerous government and nonprofit audits.

•	Over 30 years experience in all phases of public accounting and auditing experience, with a concentration in financial and compliance audits. Mr. Gaines has been involved in all phases of the audits listed on the preceding pages.

- 16 -

Commitment to Quality Service

Personnel Qualifications and Experience

J. W. Gaines, CPA, CITP (Continued)

Director

Continuing Professional Education

•	Has participated in numerous continuing professional education courses provided by nationally recognized sponsors over the last two years to keep abreast of the latest developments in accounting and auditing such as:

	Governmental Accounting Report and Audit Update Analytical Procedures, FICPA
	Annual Update for Accountants and Auditors Single Audit Sampling and Other Considerations

- 17 -

Commitment to Quality Service

Personnel Qualifications and Experience

David S. McGuire, CPA, CITP

Accounting and Audit Principal – 9 years
Accounting and Audit Manager – 4 years
Staff Accountant	– 11 years

Education
•	University of Central Florida, B.A. – Accounting
•	Barry University – Master of Professional Accountancy

Registrations
•	Certified Public Accountant – State of Florida, State Board of Accountancy
•	Certified Information Technology Professional (CITP) – American Institute of Certified Public Accountants

•	Certified Not-For-Profit Core Concepts 2018

Professional Affiliations/Community Service
•	Member of the American and Florida Institutes of Certified Public Accountants
•	Associate Member, Florida Government Finance Office Associates
•	Assistant Coach – St. Lucie County Youth Football Organization (1994 – 2005)
•	Assistant Coach – Greater Port St. Lucie Football League, Inc. (2006 – 2010)
•	Board Member – Greater Port St. Lucie Football League, Inc. (2011 – present)
•	Treasurer, AIDS Research and Treatment Center of the Treasure Coast, Inc. (2000 – 2003)
•	Board Member/Treasurer, North Treasure Coast Chapter, American Red Cross (2004 – 2010)

•	Member/Board Member of Port St. Lucie Kiwanis (1994 – 2001)
•	President (2014/15) of Sunrise Kiwanis of Fort Pierce (2004 – present)
•	St. Lucie District School Board Superintendent Search Committee (2013 – present)

Professional Experience

•	Twenty-four years public accounting experience with an emphasis on nonprofit and governmental organizations.
•	Audit Manager in-charge on a variety of audit and review engagements within several industries, including the following government and nonprofit organizations:

	St. Lucie County, Florida
	19th Circuit Office of Medical Examiner Troup Indiantown Water Control District
	Exchange Club Center for the Prevention of Child Abuse, Inc. Healthy Kids of St. Lucie County

	Mustard Seed Ministries of Ft. Pierce, Inc. Reaching Our Community Kids, Inc. Reaching Our Community Kids - South
	St. Lucie County Education Foundation, Inc. Treasure Coast Food Bank, Inc.

	North Springs Improvement District

•	Four years of service in the United States Air Force in computer operations, with a top secret (SCI/SBI) security clearance.

-	18 -

Commitment to Quality Service

Personnel Qualifications and Experience

David S. McGuire, CPA, CITP (Continued)

Accounting and Audit Principal

Continuing Professional Education

•	Mr. McGuire has attended numerous continuing professional education courses and seminars taught by nationally recognized sponsors in the accounting auditing and single audit compliance areas. He has attended courses over the last two years in those areas as follows:

	Not-for-Profit Auditing Financial Results and Compliance Requirements Update: Government Accounting Reporting and Auditing
	Annual Update for Accountants and Auditors

- 19 -

Commitment to Quality Service

Personnel Qualifications and Experience

David F. Haughton, CPA

Accounting and Audit Manager – 27 years

Education

 Stetson University, B.B.A. – Accounting

Registrations

 Certified Public Accountant – State of Florida, State Board of Accountancy

Professional Affiliations/Community Service
•	Member of the American and Florida Institutes of Certified Public Accountants
•	Former Member of Florida Institute of Certified Public Accountants Committee on State and Local Government

•	Affiliate Member Government Finance Officers Association (GFOA) for over 10 years
•	Affiliate Member Florida Government Finance Officers Association (FGFOA) for over 10 years
•	Technical Review – 1997 FICPA Course on State and Local Governments in Florida
•	Board of Directors – Kiwanis of Ft. Pierce, Treasurer – 1994-1999; Vice President – 1999-2001

Professional Experience

•	Twenty-seven years public accounting experience with an emphasis on governmental and nonprofit organizations.

•	State Auditor General’s Office – West Palm Beach, Staff Auditor, June 1985 to September 1985

•	Accounting and Audit Manager of Berger, Toombs, Elam, Gaines & Frank, Certified Public Accountants PL, responsible for audit and accounting services including governmental and not-for-profit audits.

•	Over 20 years of public accounting and governmental experience, specializing in governmental and nonprofit organizations with concentration in special districts, including Community Development Districts which provide services including water and sewer utilities. Governmental and non-profit entities served include the following:

Counties:

St. Lucie County

Municipalities:

City of Fort Pierce
City of Stuart

- 20 -

Commitment to Quality Service

Personnel Qualifications and Experience

David F. Haughton, CPA (Continued)

Accounting and Audit Manager

Professional Experience (Continued)

Special Districts:

Bluewaters Community Development District
Country Club of Mount Dora Community Development District
Fiddler’s Creek Community Development District #1 and #2
Indigo Community Development District
North Springs Improvement District
Renaissance Commons Community Development District
St. Lucie West Services District
Stoneybrook Community Development District
Summerville Community Development District
Terracina Community Development District
Thousand Oaks Community Development District
Tree Island Estates Community Development District
Valencia Acres Community Development District

Non-Profits:

The Dunbar Center, Inc.
Hibiscus Children’s Foundation, Inc.
Hope Rural School, Inc.
Maritime and Yachting Museum of Florida, Inc.
Tykes and Teens, Inc.
United Way of Martin County, Inc.
Workforce Development Board of the Treasure Coast, Inc.

•	While with the Auditor General’s Office he was on the staff for the state audits of the Martin County School District and Okeechobee County School District.
•	During 1997 he performed a technical review of the Florida Institute of Certified Public Accountants state CPE course on Audits of State and Local Governments in Florida. His comments were well received by the author and were utilized in future updates to the course.

Continuing Professional Education

•	During the past several years, he has participated in numerous professional development training programs sponsored by the AICPA and FICPA, including state conferences on special districts and governmental auditing in Florida. He averages in excess of 100 hours bi-annually of advanced training which exceeds the 80 hours required in accordance with the continuing professional education requirements of the Florida State Board of accountancy and the AICPA Private Companies Practice Section. He has over 75 hours of governmental CPE credit within the past two years.

-	21 -

Commitment to Quality Service

Personnel Qualifications and Experience

Matthew Gonano, CPA

Senior Staff Accountant – 7 years

Education
•	University of North Florida, B.B.A. – Accounting
•	University of Alicante, Spain – International Business
•	Florida Atlantic University – Masters of Accounting

Professional Affiliations/Community Service

•	American Institute of Certified Public Accountants
•	Florida Institute of Certified Public Accountants

Professional Experience

•	Senior Accountant with Berger, Toombs, Elam, Gaines, & Frank providing professional services to nonprofit and governmental entities.
•	Performed audits of nonprofit and governmental organizations in accordance with Governmental Accounting Auditing Standards (GAAS)

•	Performed Single Audits of nonprofit organizations in accordance with OMB Circular A-133, Audits of State, Local Governments, and Non-Profit Organizations.

Continuing Professional Education

 Mr. Gonano has participated in numerous continuing professional education courses.

- 22 -

Commitment to Quality Service

Personnel Qualifications and Experience

Paul Daly

Staff Accountant – 6 years

Education

 Florida Atlantic University, B.S. – Accounting

Professional Experience

•	Staff Accountant with Berger, Toombs, Elam, Gaines, & Frank providing professional services to nonprofit and governmental entities.

Continuing Professional Education

 Working to attain the requirements to take the Certified Public Accounting (CPA) exam.

- 23 -

Commitment to Quality Service

Personnel Qualifications and Experience

Melissa Arnold

Senior Staff Accountant – 4 years

Education
•	Indian River State College, A.A. – Accounting
•	Florida Atlantic University, B.B.A. – Accounting

Professional Experience

•	Staff accountant with Berger, Toombs, Elam, Gaines, & Frank providing professional services to nonprofit and governmental entities.

Continuing Professional Education

•	Ms. Arnold participates in numerous continuing professional education courses provided by nationally recognized sponsors to keep abreast of the latest developments.

- 24 -

Commitment to Quality Service

Personnel Qualifications and Experience

Bryan Snyder

Staff Accountant – 3 years

Education

 Florida Atlantic University, B.B.A. – Accounting

Professional Experience

•	Accountant beginning his professional auditing career with Berger, Toombs, Elam, Gaines, & Frank.

•	Mr. Snyder is gaining experience auditing governmental & nonprofit entities.

Continuing Professional Education

•	Mr. Snyder participates in numerous continuing education courses and plans on working to acquire his CPA certificate.

- 25 -

Commitment to Quality Service

Personnel Qualifications and Experience

Maritza Stonebraker

Staff Accountant – 2 years

Education

 Indian River State College, B.S.A. – Accounting

Professional Experience

•	Staff Accountant beginning her professional auditing career with Berger, Toombs, Elam, Gaines, & Frank.

Continuing Professional Education

•	Mrs. Stonebraker participates in numerous continuing education courses and plans on acquiring her CPA.

- 26 -

Commitment to Quality Service

Personnel Qualifications and Experience

Jonathan Herman

Senior Staff Accountant – 4 years

Education
•	University of Central Florida, B.S. – Accounting
•	Florida Atlantic University, MACC

Professional Experience

•	Accounting graduate with four years experience with Berger, Toombs, Elam, Gaines, & Frank providing professional services to nonprofit and governmental entities.

Continuing Professional Education

 Working to study to take the Certified Public Accounting (CPA) exam.

- 27 -

Commitment to Quality Service

Personnel Qualifications and Experience

Sean Stanton

Staff Accountant

Education
•	University of South Florida, B.S. – Accounting
•	Florida Atlantic University, M.B.A. – Accounting

Professional Experience

•	Staff accountant with Berger, Toombs, Elam, Gaines, & Frank auditing governmental and non-profit entities.

Continuing Professional Education

 Mr. Stanton is working towards passing the CPA exam.

- 28 -

Commitment to Quality Service

Personnel Qualifications and Experience

Brianne Davies

Staff Accountant

Education

 Indian River State College, B.S.A. – Accounting

Professional Experience

•	Staff Accountant with Berger, Toombs, Elam, Gaines, & Frank providing professional services to nonprofit and governmental entities.

- 29 -

Commitment to Quality Service

Personnel Qualifications and Experience

Taylor Nuccio

Staff Accountant

Education

 Indian River State College, B.S.A. – Accounting

Professional Experience

•	Staff Accountant with Berger, Toombs, Elam, Gaines, & Frank providing professional services to nonprofit and governmental entities.

- 30 -

- 31 -

RIVERS EDGE II COMMUNITY DEVELOPMENT DISTRICT

REQUEST FOR PROPOSALS

Annual Audit Services for Fiscal Year 2018

St. Johns County, Florida

INSTRUCTIONS TO PROPOSERS

SECTION 1. DUE DATE. Sealed proposals must be received no later than Thursday, October 4, 2018, 2:00 p.m., at the offices of District Manager, located at 475 West Town Place, Suite 114, St. Augustine, Florida 32092. Proposals will be publicly opened at that time.

SECTION 2. FAMILIARITY WITH THE LAW. By submitting a proposal, the Proposer is assumed to be familiar with all federal, state, and local laws, ordinances, rules, and regulations that in any manner affect the work. Ignorance on the part of the Proposer will in no way relieve it from responsibility to perform the work covered by the proposal in compliance with all such laws, ordinances and regulations.

SECTION 3. QUALIFICATIONS OF PROPOSER. The contract, if awarded, will only be awarded to a responsible Proposer who is qualified by experience and licensing to do the work specified herein. The Proposer shall submit with its proposal satisfactory evidence of experience in similar work and show that it is fully prepared to complete the work to the satisfaction of the District.

SECTION 4. SUBMISSION OF ONLY ONE PROPOSAL. Proposers shall be disqualified and their proposals rejected if the District has reason to believe that collusion may exist among the Proposers, the Proposer has defaulted on any previous contract or is in arrears on any previous or existing contract, or for failure to demonstrate proper licensure and business organization.

SECTION 5. SUBMISSION OF PROPOSAL. Submit one (1) original and one electronic copy of the Proposal Documents, and other requested attachments at the time and place indicated herein, which shall be enclosed in an opaque sealed envelope, marked with the title “Auditing Services - Rivers Edge II Community Development District” on the face of it.

SECTION 6. MODIFICATION AND WITHDRAWAL. Proposals may be modified or withdrawn by an appropriate document duly executed and delivered to the place where proposals are to be submitted at any time prior to the time and date the proposals are due. No proposal may be withdrawn after opening for a period of ninety (90) days.

SECTION 7. PROPOSAL DOCUMENTS. The proposal documents shall consist of the notice announcing the request for proposals, these instructions, the 2 Evaluation Criteria Sheet and a proposal with all required documentation pursuant to Section 12 of these instructions (the “Proposal Documents”).

SECTION 8. PROPOSAL. In making its proposal, each Proposer represents that it has read and understands the Proposal Documents and that the proposal is made in accordance therewith.

- 32 -

SECTION 9. BASIS OF AWARD/RIGHT TO REJECT. The District reserves the right to reject any and all proposals, make modifications to the work, and waive any informalities or irregularities in proposals as it is deemed in the best interests of the District.

SECTION 10. CONTRACT AWARD. Within fourteen (14) days of receipt of the Notice of Award from the District, the Proposer shall enter into and execute a Contract (engagement letter) with the District.

SECTION 11. LIMITATION OF LIABILITY. Nothing herein shall be construed as or constitute a wavier of District’s limited waiver of liability contained in section 768.28, Florida Statutes, or any other statute or law.

SECTION 12. MISCELLANEOUS. All proposals shall include the following information in addition to any other requirements of the proposal documents.

A.	List position or title of all personnel to perform work on the District audit. Include resumes for each person listed: list years of experience in present position for each party listed and years of related experience.

B.	Describe proposed staffing levels, including resumes with applicable certifications.

C.	Three references from projects of similar size and scope. The Proposer should include information relating to the work it conducted for each reference as well as a name, address and phone number of a contact person.

D.	The lump sum cost of the provision of the services under the proposal.

SECTION 13. PROTESTS. Any protest regarding the Proposal Documents must be filed in writing, at the offices of the District Manager, within seventy-two (72) hours after the receipt of the proposed project plans and specifications or other contract documents. The formal protest setting forth with particularity the facts and law upon which the protest is based shall be filed within seven (7) calendar days after the initial notice of protest was filed. Failure to timely file a notice of protest or failure to timely file a formal written protest shall constitute a waiver of any right to object or protest with respect to aforesaid plans, specifications or contract documents. 3

SECTION 14. EVALUATION OF PROPOSALS. The criteria to be used in the evaluation of proposals are presented in the Evaluation Criteria Sheet, contained within the Proposal Documents.

- 33 -

RIVERS EDGE II CDD

AUDITOR SELECTION

EVALUATION CRITERIA

1. Ability of Personnel.	(20 Points)

(E.g., geographic locations of the firm’s headquarters or permanent office in relation to the project; capabilities and experience of key personnel; present ability to manage this project; evaluation of existing work load; proposed staffing levels, etc.)

2. Proposer’s Experience.	(20 Points)

(E.g. past record and experience of the Proposer in similar projects; volume of work previously performed by the firm; past performance for other Community Development Districts in other contracts; character, integrity, reputation of respondent, etc.)

3. Understanding of Scope of Work.	(20 Points)

Extent to which the proposal demonstrates an understanding of the District’s needs for the services requested.

4. Ability to Furnish the Required Services.	(20 Points)

Extent to which the proposal demonstrates the adequacy of Proposer’s financial resources and stability as a business entity necessary to complete the services required. (E.g., the existence of any natural disaster plan for business operations)

5. Price.	(20 Points)

Points will be awarded based upon the price bid for the rendering of the services and reasonableness of the price to the services.

- 34 -

Rivers Edge II Community

Development District

October 4, 2018

Carr, Riggs & Ingram, LLC

500 Grand Boulevard, Suite 210 Miramar Beach, FL 32550 (850) 837‐3141

Katie Sidrony

Engagement Partner

KSidrony@cricpa.com

Stephen C. Riggs, IV

Concurring Partner

SCRiggs@cricpa.com

h1 Mr. Client Name

Dear Audit Selection Committee:

Carr, Riggs & Ingram, LLC (CRI) appreciates the opportunity to propose on auditing services to Rivers Edge II Community Development District (the “District). We are genuinely excited about the prospect of serving you and establishing a long‐term relationship. We pride ourselves on getting to know our clients and illuminating solutions by providing innovative IDEAS to move them from compliance to providing them a competitive
advantage.				
I	nvestment in You. We believe in developing long‐term, mutually beneficial relationships and		
	quickly demonstrating value with a fee structure and service solutions that provide		
	immediate and continued savings. Our investment starts on “Day 1” as your assigned team		
	begins with our proven, streamlined process that minimizes your time and disruption during		
	the service provider change and continues throughout the relationship.		
	edicated Team. CRI’s team consists of more than 1,800 professionals, which allows us to		
	tailor your service team by aligning their industry, service, and specialty skills with your		
	needs. Our dedicated teams deliver the highest level of business acumen and knowledge to		
Dandyourremainorganization;focusedouron yourcommitmentneeds.	to consistent staffing allows you to maximize savings		
E	quilibrium. CRI delivers big firm expertise with small firm service. Of approximately 45,000		
	public accounting firms in the United States, CRI currently ranks among the top 20.		
	Additionally, as a part of PrimeGlobal, an association of independent accounting firms, we		
	have access to international resources as – and when – needed. Leveraging these resources		
	while maintaining local decision‐making authority means that simplified solutions are only a		
	phone call away. And we believe that’s the best of both worlds for our clients.		
A	ctive Partner Participation. Collectively, our partners deliver expertise derived from more		
	than 7,500 years of business experience. With this level of talent, we thoughtfully choose a		
	partner that aligns with your business’ needs and industry. Our hands‐on, working partners		
	“show up” to convey our genuine commitment to your success. They strive to earn trusted		
	advisor roles by digging in, proactively learning your business, and producing long‐term		
	value for you.			
Simplified Solutions. Our 500+ cumulative partner certifi‐ cations is an impressive statistic, success is measured by translating complex concepts into client solutions. While accounting is the language of business, we’re here to decipher the jargon and help you make educated

decisions. CRInnovate embraces agility and invention. The CRI vSTAR™ process, our inaugural initiative delivering a virtual audit, is designed to provide you with maximized efficiencies, reduced workload, and an improved experience.

We welcome the opportunity to demonstrate to you the same teamwork, expertise, innovation, and responsiveness that have made us one of the fastest growing public accounting firms in the United States. Again, we appreciate your consideration.

Sincerely,

Katie Sidrony, CPA

Engagement Partner

2

TABLE OF CONTENTS

YOUR NEEDS

UNDERSTANDING & MEETING YOUR NEEDS	4

YOUR SERVICES & FEES

YOUR SERVICES & FEES	5

YOUR CHOICE: CRI

FIRM PROFILE	6

GOVERNMENT CREDENTIALS	7

RELEVANT EXPERIENCE	8

YOUR SOLUTION TEAM	9

DELIVERING QUALITY TO YOU	16

THE CRI vSTAR™ PROCESS	18

WORKING TOGETHER: OVERVIEW

SHARING CRI’S VALUES WITH YOU	19

TRANSITIONING YOU	20

JOINING OUR CONVERSATION	21

WORKING TOGETHER: DETAILS

CRI AUDIT FRAMEWORK	22

CRI AUDIT APPROACH	24

APPENDIX

APPENDIX A – RFP DOCUMENTS	26

3

UNDERSTANDING & MEETING YOUR NEEDS

From the RFP, we understood your team to express the following needs, requests, and/or issues. We’ve detailed our proposed solutions below and are happy to discuss other related projects as they arise and upon request.

	NEEDS & ISSUES	SOLUTIONS & SERVICES		
Technical	The District is required to have independent	Perform external audit services in		
	audits performed on its financial statements.	accordance with auditing standards		
		generally accepted in the United		
		States of America (GAAS), in order		
		to express an opinion on the		
		District’s financial statements.		
Relational	The District’s Board of Supervisors and	  Communicate		
	management expect open and continuous	contemporaneously and		
	communication with their CPA firm in order to	directly with management		
	avoid surprise findings at the end of the audit.			
		regarding the results of our		
				
		procedures.		
		  Anticipate and respond to		
		concerns of management		
		and/or the Audit Committee		
		(if/when formed).		

4

YOUR SERVICES & FEES

We value creating mutually‐rewarding, long‐term relationships with our clients. Our goal is to provide high quality, responsive service that yields returns far greater than your investment in our professional fees. Please find below our proposal of fees to provide the requested services for the upcoming three respective fiscal years.

	SERVICE			CRI FEES			
			2018	2019	2020		
							
	Perform external audit services in accordance with	$3,500	$3,500	$3,500		
	auditing standards generally accepted in the					
	United States of America (GAAS)					

The above fee quote is based in part on the fact that the District has not yet issued bonds or other debt instruments to finance capital asset acquisition and construction. In the event the District issues such debt instruments or upon construction of major infrastructure additions, the audit fee will increase by an amount not to exceed $3,000 per year.

If the District requests additional services outside of this proposal, professional fee hourly rates are as follows, but may be negotiated depending on the project request:

CLASSIFICATION	HOURLY RATE	
Partner	$225	
Manager	$140	
Senior	$100	
Staff	$80	
IT Specialist	$200	
Fraud Specialist	$200	

Our professional fees are based on the key assumptions that Rivers Edge II Community Development District will:

•	Make available documents and work papers for review at Rivers Edge II Community Development District’s headquarters location, although we may choose to review at alternate locations.

•	Prepare certain schedules and analyses and provide supporting documents as requested.

•	Assist us in obtaining an understanding of the accounting systems of the District.

•	Not experience a significant change in business operations or financial reporting standards.

5

FIRM PROFILE

6

GOVERNMENT CREDENTIALS

7

RELEVANT EXPERIENCE

CRI delivers a depth of resources that ensures our understanding of your challenges and innovative solutions for overcoming them. Our governmental team’s 1,100+ years of combined experience is derived from providing audit and accounting outsourcing services to a client base that includes:

•	450+ governmental entity clients across the South totaling approximately $22 billion in total revenues,

•	Perform single audits for approximately 30% of all governmental clients, and

•	Municipality clients of up to $1.2 billion in total revenues.

We parlay this vast experience and derived best practices into proven solutions that benefit you. Below we share specific, relevant client references; we encourage you to consult with them.

RELATIONSHIP	TIMELINE	SERVICE DESCRIPTION		RELEVANT POINTS TO	
				CONSIDER	
Rizzetta & Company	2006 – Present	Annual Financial		Client service experience	
Shawn Wildermuth		Statement Audits of		Responsiveness to client	
3434 Colwell Avenue		Multiple CDDs		needs	
Suite 200				Long‐term relationship	
Tampa, FL 33614				CDD management co.	
813.933.5571					
GMS, LLC	2006 – Present	Annual Financial		Client service experience	
Dave DeNagy		Statement Audits of		Responsiveness to client	
14785 Old St. Augustine Road,		Multiple CDDs		needs	
Suite 4				Long‐term relationship	
Jacksonville, FL 32258				CDD management co.	
904.288.9130					
Wrathell, Hunt & Associates,	2006 – Present	Annual Financial		Client service experience	
LLC		Statement Audits of		Responsiveness to client	
Jeffrey Pinder		Multiple CDDs		needs	
2300 Glades Road				Long‐term relationship	
Suite 410W				CDD management co.	
Boca Raton, FL 33431					
561.571.0010					
Fishkind & Associates	2007 – Present	Annual Financial		Client service experience	
Jennifer Glasgow		Statement Audits of		Responsiveness to client	
12051 Corporate Blvd.		Multiple CDDs		needs	
Orlando, FL 32817				Long‐term relationship	
407.382.3256				CDD management co.	

For an example of our team’s expertise, watch a CRI video blog by partner Brian Barksdale discussing Government‐Wide Statement of Activities. Just snap this QR code with your mobile phone to download or visit CRIcpa.com to view one of our 100+ videos.

8

YOUR SOLUTION TEAM

We have assembled a team of professionals who will ensure the highest level of personal dedication and professional excellence to you. Our team delivers exceptional services through a balanced blend of skills (service‐driven, industry‐specific, technical, and business) and experience that we know are important to you.

Brief profiles of each member of the team identified below follow on subsequent pages.

Katie Sidrony

ENGAGEMENT PARTNER

Stephen Riggs, IV	Alan Jowers	
CONCURRING PARTNER	CONSULTING PARTNER	

Grace Hartness	Jonathan Hartness	Ali Gorman	
SENIOR MANAGER	SENIOR MANAGER	SENIOR MANAGER	

9

YOUR SOLUTION TEAM

Katie Sidrony
Engagement Partner

(850) 837‐3141 phone    KSidrony@cricpa.com

Representative Clients

•	Community Development Districts

•	Condominium and Homeowner Associations

•	County and Local Governments
•	Non‐Profit Organizations

•	Privately‐held corporations

Experience

Katie has over 11 years accounting and audit experience with CRI. Her practice includes audits, reviews, and compilation of governmental entities, condominium and homeowner associations, non‐profit organizations and privately‐held corporations.

Katie is licensed to practice as a certified public accountant in Florida. She is a member of the Florida Institute of Certified Public Accountants and exceeds all continuing professional education requirements related to Government Auditing Standards.

Katie has direct engagement responsibility for many special districts in the State of Florida including community development districts, fire districts, utility districts and school districts. She is active in our firm’s condominium and homeowner association practice.

Education, Licenses & Certifications

•	Master of Business Administration, Troy University

•	BSBA, Professional Accountancy, University of West Florida

•	Certified Public Accountant

•	Community Association Manager (CAM), Licensed in Florida

Professional Affiliations

•	American Institute of Certified Public Accountants (AICPA)
•	Florida Institute of Certified Public Accountants (FICPA)

10

YOUR SOLUTION TEAM

Stephen Riggs, IV
Concurring Partner

(850) 837‐3141 phone    SCRiggs@cricpa.com

Representative Clients

•	Bainebridge CDD

•	CFM CDD

•	Gramercy Farms CDD

•	Heritage Harbour North CDD
•	River Hall CDD

•	Tern Bay CDD

•	Waterlefe CDD

•	City of Key West, Florida

	– Internal Audit and Forensic
•	Okaloosa County Sheriff’s Office
•	Bahama Conch Community Land Trust – Internal Audit and Forensic

Experience

Stephen has over 14 years accounting and audit experience, including three years with the international public accounting firm, Ernst & Young, LLP. His experience includes numerous clients in industries including governmental, not‐for‐profit, healthcare, SEC and privately held corporations.

Stephen is licensed to practice as a certified public accountant in Florida. He is a member of the State and local Governmental section of the Florida Institute of Certified Public Accountants and exceeds all continuing professional education requirements related to Government Auditing Standards.

He is currently a partner on engagements for many special districts in the State of Florida, including community development districts, fire districts and school districts. In addition to his public accounting experience, Stephen has served on the Board of Directors for a Community Development District and a non‐profit organization.

Education, Licenses & Certifications

•	Masters of Accountancy, University of West Florida

•	BA, Economics, University of Florida

•	Certified Public Accountant

Professional Affiliations

•	American Institute of Certified Public Accountants (AICPA)
•	Florida Institute of Certified Public Accountants (FICPA)
•	Past President, Emerald Coast Chapter of Florida Institute of Certified Public Accountants (FICPA)

11

YOUR SOLUTION TEAM

K. Alan Jowers
Consulting Partner

(850) 837‐3141 phone    AJowers@cricpa.com

Representative Clients

•	Santa Rosa County District School Board
•	Okaloosa Gas District

•	Santa Rosa Island Authority

•	Pasco County

•	Okaloosa County District School Board

•	Celebration Community Development District

•	Hammock Bay Community Development District

•	Amelia National Community Development District

Experience

Alan has nearly 25 years’ experience in public accounting, primarily on financial statement assurance engagements. His practice includes audits, reviews and compilations of local governmental entities, condominium and homeowner associations, non‐profit organizations and nonpublic companies. He currently has direct engagement responsibility for over 50 audits of local governmental entities, including counties, cities, school boards, utility districts and Florida community development districts.

Alan is licensed to practice as a certified public accountant in Florida and Georgia. He is a member of the Board of Directors of the Florida Institute of Certified Public Accountants (FICPA), has been an active member of the FICPA’s State and Local Governmental Committee and is a past chair of its Common Interest Realty Association Committee. He is also active in the Panhandle Chapter of the Florida Governmental Finance Officers Association (FGFOA) and is a former member of the FGFOA’s statewide Technical Resource Committee.

Education, Licenses & Certifications

•	Masters of Accountancy, University of Alabama

•	BS, Accounting, Florida State University

•	Certified Public Accountant

Professional Affiliations

•	American Institute of Certified Public Accountants (AICPA)

•	Florida Institute of Certified Public Accountants (FICPA) – member of the Board of Governors
•	Governmental Finance Officers Association (GFOA)

•	Florida Governmental Finance Officers Association (FGFOA) – member of Technical Resource Committee

12

YOUR SOLUTION TEAM

Grace Hartness
Senior Manager

(850) 837‐3141 phone    GHartness@cricpa.com

Representative Service Areas

•	Community Development Districts

•	Condominium and Homeowner Associations

•	Utility Services

•	School Districts

•	County and Local Governments
•	Non‐Profit Organizations

Experience

Grace has over 11 years accounting and audit experience with CRI. She has worked on several major construction companies, government entities, community development districts, condominium and homeowner associations and non‐profit organizations. In addition, she has been involved in special audit projects for the Miami‐Dade Airport Authority.

Grace is licensed to practice as a certified public accountant in Florida and exceeds all continuing professional education requirements related to Government Auditing Standards. In addition, Grace fluently speaks several languages including French and Arabic.

Grace currently supervises engagements for many special districts in the State of Florida including community development districts and school districts. She is active in our firm’s condominium and homeowner association practice.

Grace started with CRI in August 2006, upon completion of her master’s degree, and was promoted to manager in 2011.

Education, Licenses & Certifications

•	MAcc, Accounting, University of West Florida

•	Certified Public Accountant

•	Community Association Manager (CAM), Licensed in Florida

Professional Affiliations

•	American Institute of Certified Public Accountants (AICPA)
•	Florida Institute of Certified Public Accountants (FICPA)

•	Accounting & Financial Women’s Alliance (AFWA)

13

YOUR SOLUTION TEAM

Jonathan Hartness
Senior Manager

(850) 837‐3141 phone    JHartness@cricpa.com

Representative Service Areas

•	Community Development Districts

•	Condominium and Homeowner Associations

•	Non‐Profit Organizations

Experience

Jonathan has over 10 years’ auditing and accounting experience with CRI. He is an audit manager with primary responsibility for fieldwork and reporting on audits of clients in a variety of industries including local governments, condominium and homeowner associations, and small businesses. He is currently the audit manager for approximately 25 community development districts and works with several CDD management companies in the State of Florida.

Jonathan is licensed to practice as a Certified Public Accountant in Florida. He is a member of the American Institute of Certified Public Accountants and the Florida Institute of Certified Public Accountants. He exceeds all continuing professional education requirements related to Government Auditing Standards.

Jonathan currently supervises engagements for many governmental entities in the State of Florida including community development districts. He is active in our firm’s governmental industry line as well as our condominium and homeowner association practice. Jonathan is an integral part of our community development district practice.

Education, Licenses & Certifications

•	MAcc, Accounting, University of West Florida

•	Certified Public Accountant

•	Community Association Manager (CAM), Licensed in Florida

Professional Affiliations

•	American Institute of Certified Public Accountants (AICPA)

•	Florida Institute of Certified Public Accountants (FICPA)

14

YOUR SOLUTION TEAM

Ali Gorman
Senior Manager

(850) 837‐3141 phone    AGorman@cricpa.com

Representative Service Areas

•	Community Development Districts
•	Condominium and Homeowner Associations

•	Utility Services

•	School Districts

•	County and Local Governments
•	Non‐Profit Organizations

Experience

Ali has over 10 years auditing and accounting experience in both the Tallahassee and Destin offices of CRI. She is an audit manager with primary responsibility for fieldwork and reporting on audits of clients in a variety of industries including local governmental and non‐profit entities as well as financial institutions and commercial businesses. She is currently the audit manager for over 25 community development districts, and works with several CDD management companies in the State of Florida.

Ali is licensed to practice as a Certified Public Accountant in Florida. She is a member of the American Institute of Certified Public Accountants and the Florida Institute of Certified Public Accountants. She exceeds all continuing professional education requirements related to Government Auditing Standards.

Ali currently supervises engagements for many governmental entities in the State of Florida including community development districts, municipalities, utility districts, and other special governments. She is active in our firm’s governmental industry line as well as the condominium and homeowner association practice. In addition, Ali has accumulated experience throughout her career in Federal and Florida Single Audit Acts compliance monitoring and auditing. Ali has performed many single audits of federal grants under OMB Circular A‐133 and Uniform Grant Guidance (UGG).

Education, Licenses & Certifications

•	BS, Accounting, Florida State University

•	Certified Public Accountant

•	Community Association Manager (CAM), Licensed in Florida

Professional Affiliations

•	American Institute of Certified Public Accountants (AICPA)

•	Florida Institute of Certified Public Accountants (FICPA)

•	Governmental Finance Officers Association (GFOA)

15

DELIVERING QUALITY TO YOU

16

DELIVERING QUALITY TO YOU

AUDIT METHODOLOGY

Our audit, tax, consulting, and client accounting services documentation is maintained electronically. Compliance with our methodology is regularly reviewed and evaluated as part of our internal quality program, which is further discussed in this section under INTERNAL QUALITY CONTROL REVIEWS AND EXTERNAL REVIEWS. Comprehensive policies and procedures governing all of our practices and addressing professional and regulatory standards and implementation issues are constantly updated for new professional developments and emerging issues. See PAGES 22 – 25 for a more detailed description of the relevant approach and methodology.

ENGAGEMENT QUALITY REVIEW PARTNER (CONCURRING PARTNER)

Each audit has an assigned engagement quality review (EQR) partner with the appropriate experience. This role is one of the most important elements of our quality assurance process, as it provides for a timely, independent review of all key accounting and auditing issues. The EQR partner also reviews the financial statements and related supporting documentation—including the disclosures—to evaluate their fair presentation under accounting principles generally accepted in the United States of America (GAAP).

INTERNAL QUALITY CONTROL REVIEWS AND EXTERNAL REVIEWS

Experienced partners and professional staff of our firm conduct quality control reviews of our audits. Our partners’ work is reviewed annually, and the inspection process includes periodic testing of the effectiveness of our quality controls and a continuous improvement program.

•	Internal Inspection: A permanent team of subject matter experts annually perform 150+ reviews of a risk‐based sample of partners and engagements.

•	Continuous Process Improvement Reviews: In addition to #1 above, this ongoing process reviews each audit partner twice annually, representing 300+ reviews each year.

CRI is enrolled in the AICPA Peer Review Program, through which our external reviews are conducted by another independent public accounting firm. We have our accounting and auditing practice triennially reviewed as a member in this program.

Additionally, we are registered with the PCAOB, who performs an external review inspection once every three years.

17

THE CRI vSTAR™ PROCESS

18

SHARING CRI’S VALUES WITH YOU

19

TRANSITIONING YOU

When choosing to change firms, the time involved in working with new accounting professionals is often a concern. CRI’s well‐defined efficient, seamless transition process is designed to:

•	Provide you with value from the very first encounter,

•	Avoid interruption of service,

•	Minimize disruption and investment of management’s time,

•	Raise the standard of service, and

•	Establish ongoing channels of communication with Rivers Edge II Community Development District’s management.

The transition plan is comprised of the following key activities and can occur within approximately two weeks, depending on the availability of the parties involved:

“As a CPA and former auditor myself, I know that changing auditors can often be difficult and time consuming due to learning curves and new processes. Fortunately, I quickly found that CRI’s partners and staff make the transition simple and relatively painless. The significant involvement of the firm’s partners is one of the main reasons for this result. CRI’s partners are responsive to our needs and professionally handle the entire engagement from beginning to end.”

Ed Oliphant, Chief Financial Officer

Regional Transportation Authority

20

JOINING OUR CONVERSATION

21

CRI AUDIT FRAMEWORK

Our proposed services require a coordinated effort between us and Rivers Edge II Community Development District’s team. Planning and continual communication are essential to developing the appropriate procedures, working collaboratively to resolve any identified issues, and meeting your timelines.

CRI’s audit approach occurs within a framework of our client’s business and industry; therefore, we assess risk by:

•	Understanding management’s perspectives and goals, and

•	Considering business conditions and threats that could prevent management from achieving its business objectives.

We assess risks in the following areas:

22

CRI AUDIT FRAMEWORK

Our ultimate intent is to drill down from these broad risks to specific financial reporting risks. We understand both these risks and management’s processes and procedures for mitigating them (i.e. internal controls) in order to develop our procedures to carry out our audit responsibilities.

Although our audits are conducted through a structured, risk‐based model, we focus on understanding the client’s needs, requirements, and expectations. We work collaboratively with management and the Audit Committee (or similar function) to develop a communication and work plan to continuously improve client service, by doing so we help in moving your team from simple compliance to providing you with a competitive advantage.

In planning, we concentrate on “key risks,” (items with a greater risk of a material misstatement, a material weakness in internal controls, or other matters resulting in the issuance of an inappropriate audit report). We focus on “material” items (i.e. those items that would be important to the user of your financial statements). When evaluating materiality of identified misstatements, certain quantitative and qualitative factors must be considered—which may include:

•	Impact on operating trends (revenue/income, expenses, net income, etc).

•	Nature of the misstatement (i.e., did the misstatement result from an unlawful transaction?).
•	Impact on liquidity, capital/surplus, earnings capacity, etc.

•	Impact to loan covenants and contractual and regulatory requirements.

Consistent communication is a key to completion of the audit. By ensuring constant involvement, we are in a better position to respond to your issues timely and efficiently. Therefore, we plan to meet with your management to:

•	Set‐up the audit by reviewing the mapping of Rivers Edge II Community Development District’s financial information (financial statements and notes) to significant processes and IT systems to ensure that all significant account balances, transactions, procedures, and systems are tested as deemed necessary.

•	Discuss ongoing changes—specifically new accounting pronouncements and key business transactions in their early stages, enabling us to agree on the resolution of various complex business issues on a timely basis.

23

CRI AUDIT APPROACH

Our audit approach is a four stage approach, as depicted in the summary below. Our client acceptance and risk assessment procedures (as noted on the previous page) occur during detailed conversations and observations with your team. The results of those procedures allow us to tailor an audit program to your specific risks and needs. We then execute the audit, report the results, and evaluate continuous improvement opportunities for ongoing service and benefit to you.

Rivers Edge II CDD

24

CRI AUDIT APPROACH

25

APPENDIX A – RFP DOCUMENTS

26

APPENDIX A – RFP DOCUMENTS

27

APPENDIX A – RFP DOCUMENTS

28

APPENDIX A – RFP DOCUMENTS

29

APPENDIX A – RFP DOCUMENTS

30

Proposal to Provide Financial Auditing Services

RIVERS EDGE II

COMMUNITY DEVELOPMENT DISTRICT

Proposal Due: October 04, 2018 - 2:00PM

Submitted to:

Rivers Edge II Community Development District c/o GMS - CF, LLC, District Manager
475 West Town Place, Suite 114 St. Augustine, Florida 32092

Submitted by:

Antonio J. Grau, Partner
Grau & Associates
951 Yamato Road, Suite 280
Boca Raton, Florida 33431
Tel	(561)	994-9299 / (800) 229-4728	
Fax	(561)	994-5823	
tony@graucpa.com / www.graucpa.com

Table of Contents

PAGE

EXECUTIVE SUMMARY / TRANSMITTAL LETTER	1

FIRM QUALIFICATIONS & EXPERIENCE	3

STAFF QUALIFICATIONS	20

REFERENCES	27

SPECIFIC AUDIT APPROACH	29

COST OF SERVICES	33

SUPPLEMENTAL INFORMATION	35

951 Yamato Road, Suite 280 Boca Raton, Florida  33431 (561) 994-9299 ▪ (800) 299-4728 Fax (561) 994-5823

October 04, 2018

Rivers Edge II Community Development District c/o GMS - CF, LLC, District Manager
475 West Town Place, Suite 114 St. Augustine, Florida 32092

Re:	Request for Proposal for Professional Auditing Services for the fiscal year ended

September 30, 2018, with an option for two (2) additional annual renewals.

Grau & Associates (Grau) is pleased to respond to the Rivers Edge II Community Development District’s (the “District”) Request for Proposal (RFP), and look forward to working with you on your audit. We are a team of knowledgeable professionals with extensive experience in audits for organizations just like yours, and we know how to work with you to complete an effective and efficient audit.

Since our focus is on government, we fully understand the professional services and work products required to meet your RFP requirements. Our team provided services in excess of 19,000 hours for our public sector clients last year, and we currently audit over 300 governmental entities. Our practice is unique as 98% of work is either audit or work related to government and non-profit entities.

In addition to our firm’s focus, Grau & Associates is a great fit for your audit for a variety of other reasons, including:

•	Experience

	Grau is proud of the fact that the personnel we assign to your audit are some of the most experienced auditors in the field. Unlike many other firms, our auditors work almost exclusively with governmental entities, which mean they are more knowledgeable and efficient on audits like yours. Our engagement partners have decades of experience and take a hands-on approach to our assignments, which all ensures a smoother process for you. Also, due to Grau’s very low turnover rate for our industry, you won’t have to worry about retraining your auditors from year to year.

•	Service

	Our clients are pleased with the level of personalized service they receive from our talented professionals. Because of our extensive experience, we are adept at making the transition to a new firm as smooth as possible. We work with you to resolve any issues and keep in regular contact so there are no surprises when the final report delivers. In fact, your engagement team will report any potential audit adjustments to you on a regular basis so you will have adequate time to research and respond. Additionally, we have a disaster recovery plan that includes daily data back-ups and offsite file storage, so in the case of an emergency, your records would be safe.

Rivers Edge II Community Development District

October 04, 2018

•	Responsiveness

	We pride ourselves on our high level of responsiveness. We answer emails and telephone calls within 24 hours, and usually right away. We are always accessible to clients during business hours, and make every effort to answer any questions as they arise. Additionally, we don’t just complete your audit and disappear. We understand the “big picture” and think beyond the traditional auditor’s perspective. We remain in touch for the entire year, suggesting ways you can improve your District’s performance, procedures and controls. We will update, advise and educate you on new or revised reporting requirements so you are sure to always remain compliant.

•	Reputation

	Our reputation in our field is impeccable. We have never been involved in any litigation, proceeding or received any disciplinary action. Additionally, we have never been charged with, or convicted of, a public entity crime of any sort. We have the professional staff available to perform the engagement and resources required to complete the work. We are financially stable and have never been involved in any bankruptcy proceedings.

•	Standards

	Grau & Associates is a professional association / licensed certified public accounting firm serving clients through the state of Florida. We are a member of the American Institute of Certified Public Accountants (AICPA) and the Florida Institute of Certified Public Accountants (FICPA). Additionally, individuals are members of both the (GFOA) and (FGFOA). Grau is also a member of the Governmental Audit Quality Center (GAQC). Our audit will follow the Auditing Standards of the AICPA, Generally Accepted Government Auditing Standards, issued by the Comptroller General of the United States, and the Rules of the Auditor General of the State of Florida, and any other applicable federal, state and local regulations. We will deliver our reports in accordance with your requirements.

This proposal is a firm and irrevocable offer for 90 days. We certify this proposal is made without previous understanding, agreement or connection either with any previous firms or corporations offering a proposal for the same items. We also certify our proposal is in all respects fair, without outside control, collusion, fraud, or otherwise illegal action, and was prepared in good faith. Only the person(s), company or parties interested in the project as principals are named in the proposal. Grau has no existing or potential conflicts, and anticipates no conflicts during the engagement. Our Federal I.D. number is 20-2067322.

We would be happy to answer any questions or provide additional information as needed. Please do not hesitate to call or email either of our Partners, Antonio J. Grau, CPA (tgrau@graucpa.com) or Racquel McIntosh, CPA (rmcintosh@graucpa. com) at 561.994.9299. We thank you for considering our firm’s qualifications and experience, and look forward to serving you.

Very truly yours,

Grau & Associates

_____________________________

Antonio J. Grau

2

Firm Qualifications &

Experience

3

Grau & Associates is a medium-sized accounting firm providing comprehensive financial and compliance auditing, attestation and accounting, and other management consulting services and we are properly registered and licensed by the State of Florida. The Partners, Consultant and Managers of Grau are members of the American Institute of Certified Public Accountants and the Florida Institute of Certified Public Accountants.

Grau & Associates is a properly registered/licensed State of Florida professional corporation and all assigned supervisory professional staff are properly registered/licensed to practice in the State of Florida.

Grau’s Focus and Experience

•	We are dedicated to serving Special Districts.

•	We currently audit over 300 Special Districts.

•	Last year, Grau performed in excess of 19,000 hours of services for our Public Sector Clients under
	Governmental Auditing Standards.
•	Grau currently only provides audit and attestation services principally for governmental and non-profit entities under government auditing standards. The firm and staff are 100% dedicated to the audit practice.

During Grau’s history we have consistently focused on providing service to the public sector. By focusing our resources on this industry, we provide the highest level of services to our Public Sector Clients.

Grau & Associates has a total of 17 employees, 15 professional staff, including 2 Partners and 13 professionals who specialize in providing auditing, accounting, consulting, and monitoring services to the
Public Sector and 2 administrative professionals. The number of professional staff by employee classification is as follows:

	Team Member		Total Professional Staff		Total CPAs		Total Government		
							Audit Staff		
						
	Partners		2		2		2		
									
	Managers		3		3		3		
									
	Advisory Consultant		1		1		1		
									
	Supervisor / Seniors		4		3		4		
									
	Staff Accountants		5		2		5		
									
	Total		15		11		15		

Compliance with Government Education Requirements

In order to maintain our high level of technical competence, we provide continuing professional education programs for all partners and professional staff members, which exceed national and state standards. All of the audit professionals of Grau & Associates exceed the education requirements as set forth in Government Auditing Standards, published by the Comptroller General of the United States, and our continuing professional education programs ensure that all audit professionals meet the requirements to participate in audits of government agencies.

4

Professional Staff Training

Partners - All of our Partners are CPA’s and have diversified public accounting experience. They are responsible for overall engagement performance, policy, direction and quality control and have far exceeded minimum CPE requirements.

Managers - All of our Audit Managers are CPA’s who have demonstrated the ability to plan audit engagements, supervise personnel and maintain frequent contact with clients. They continually upgrade their skills through the firm’s continuing education programs and courses sponsored by the AICPA, FICPA and GFOA. They have far exceeded minimum CPE Requirements.

Seniors - All of our Seniors have a minimum of 3 years of diversified public accounting experience. They perform audits, evaluate staff, review findings and prepare audit reports. They possess the potential for upward mobility and have far exceeded minimum CPE requirements.

Memberships

All of the firm’s CPA’s are properly licensed as CPA’s and members in good standing of both the American Institute of Certified Public Accountants and the Florida Institute of Certified Public Accountants. In addition, certain firm professionals are members or have been members of the following professional groups:

•	FICPA Committee on State and Local Government
•	Florida Government Finance Officers Association (FGOA)

•	Special Review Committee of the Government Finance Officers Association
•	Florida Institute of CPA Non-Profit Conference Committee

•	Florida Association of Special Districts (FASD)
•	FGFOA Annual Conference Program Committee
•	FASD Finance Committee

•	FICPA Young CPAs Committee
•	FICPA Accounting Careers Committee

In addition, we have an ongoing recruitment program that seeks only those accountants with a proven record of academic success. When we recruit at the senior and manager level, we select CPA’s with proven governmental accounting and auditing experience.

Quality Control and Confidentiality

Grau participates in an external quality review program requiring an on-site independent examination of our auditing practice. Grau has consistently received an unqualified opinion on the quality of our audit practice. During our firm’s last external quality control review, six audits were reviewed, including five government audits. A copy of the report on the firm’s most recent quality review can be found on the following page.

In addition to scheduled Peer Reviews, our firm continually monitors performance to ensure the highest quality of services. Under the supervision of the Audit Partner, an Audit Manager is responsible for monitoring quality control of all appropriate engagements.

Results of State and Federal Reviews

All state and federal reviews of the firm’s reports and working papers have been accepted without change or revision to issued reports.

5

6

Partial List of Clients

The following is a partial list of clients served and related experience:

	Governmental	Audit	Utility Audit	Current Client	Year End	
Aberdeen Community Development District					9/30	
						
Allen Plantation Community Development District					9/30	
						
Amelia Concourse Community Development District					9/30	
						
Amelia National Community Development District					9/30	
						
Amelia Walk Community Development District					9/30	
						
Anthem Park Community Development District					9/30	
						
Antigua at St. Augustine Community District					9/30	
						
Aqua One Community Development District					9/30	
						
Arbor Green Community Development District					9/30	
						
Arbor Green Community Development District					9/30	
						
Arlington Ridge Community Development District					9/30	
						
Armstrong Community Development District					9/30	
						
Artisan Lakes Community Development District					9/30	
						
Asturia Community Development District					9/30	
						
Ave Maria Stewardship Community Development District					9/30	
						
Aventura Isles Community Development District					9/30	
						
Bahia Lakes Community Development District					9/30	
						
Ballantrae Community Development District					9/30	
						
Ballantrae Hillsborough Community Development District					9/30	
						
Coconut Cay Community Development District					9/30	
						
Bartram Springs Community Development District					9/30	
						
Bay Creek Community Development District					9/30	
						
Bay Laurel Community Development District					9/30	
						
Bay Tree Community Development District					9/30	
						
Bayside Improvement Development District					9/30	
						
Baywinds Community Development District					9/30	
						
Beach Community Development District					9/30	
						
Beacon Tradeport Community Development District					9/30	
						
Beeline Community Development District					9/30	
						
Bella Verda East Community Development District					9/30	
						
Bella Verda Lake Community Development District					9/30	
						
Bella Vida Community Development District					9/30	
						
Bellagio Community Development District					9/30	
						
Belmont Community Development District					9/30	
						
Belmont Lakes Community Development District					9/30	
						
Bexley Community Development District					9/30	
						
Blackburn Creek Community Development District					9/30	
						
Bluewaters Community Development District					9/30	

7

	Governmental	Audit	Utility Audit	Current Client	Year End	
Bobcat Trail Community Developement District					9/30	
						
Boggy Creek Community Development District					9/30	
						
Bonita Landing Community Development District					9/30	
						
Bonita Village Community Development District					9/30	
						
Bonnett Creek Resort Community Development District					9/30	
						
Bonterra Community Development District					9/30	
						
Brandy Creek Community Development District					9/30	
						
Bridgewater Community Development District					9/30	
						
Bridgewater of Wesley Chapel Community Development District					9/30	
						
Briger Community Development District					9/30	
						
Brighton Lakes Community Development District					9/30	
						
Brooks of Bonita Springs I Community Development District					9/30	
						
Brooks of Bonita Springs II Community Development District					9/30	
						
Bull Frog Creek Community Development District					9/30	
						
Candler Hills East Community Development District					9/30	
						
Capital Region Community Development District					9/30	
						
Captain's Key Dependent District					9/30	
						
Caribe Palm Community Development District					9/30	
						
Carlton Lakes Community Development District					9/30	
						
Cascades at Groveland Community Development District					9/30	
						
Catalina at Winkler Preserve Community Development District					9/30	
						
CBL/BM Port Orange West Community Development District					9/30	
						
Cedar Pointe Community Development District					9/30	
						
Celebration Point Community Development District					9/30	
						
Central Lake Community Development District					9/30	
						
Century Gardens Community Development District					9/30	
						
Century Gardens at Tamiami Community Development District					9/30	
						
Century Gardens Village Community Development District					9/30	
						
Century Parc Community Development District					9/30	
						
CFM (Coolidge Fort Myers) Community Development District					9/30	
						
Chapel Creek Community Development District					9/30	
						
Champions Gate Community Development District					9/30	
						
Champion’s Reserve Community Development District					9/30	
						
Channing Park Community Development District					9/30	
						
City Center Community Development District					9/30	
						
City Place Community Development District					9/30	
						
Clearwater Cay Community Development District					9/30	
						
Coastal Lake Community Development District					9/30	
						
Coconut Palms Community Development District					9/30	
						
Coconut Cay Community Development District					9/30	
						
Concorde Estates Community Development District					9/30	
						
Concorde Station Community Development District					9/30	

8

	Governmental	Audit	Utility Audit	Current Client	Year End	
Connerton West Community Development District					9/30	
						
Copper Creek Community Development District					9/30	
						
Copper Oaks Community Development District					9/30	
						
Copperstone Community Development District					9/30	
						
Coral Bay Community Development District					9/30	
						
Coral Keys Homes Community Development District					9/30	
						
Coral Town Park Community Development District					9/30	
						
Cordoba Ranch Community Development District					9/30	
						
Corkscrew Farms Community Development District					9/30	
						
Coronado Community Development District					9/30	
						
Cory Lakes Community Development District					9/30	
						
Country Club of Mount Dora Community Development District					9/30	
						
Country Greens Community Development District					9/30	
						
Country Walk Community Development District					9/30	
						
Covington Park Community Development District					9/30	
						
Creekside Community Development District					9/30	
						
Crestview II Community Development District					9/30	
						
Crestview West Community Development District					9/30	
						
Cross Country Home Services Community Development District					9/30	
						
Cross Creek Community Development District					9/30	
						
Cutler Cay Community Development District					9/30	
						
Cypress Cove Community Development District					9/30	
						
Cypress Grove Community Development District					9/30	
						
Cypress Lakes Community Development District					9/30	
						
Cypress Shadows Community Development District					9/30	
						
Deer Island Community Development District					9/30	
						
Deer Run Community Development District					9/30	
						
Diamond Hill Community Development District					9/30	
						
Double Branch Community Development District					9/30	
						
Dove Pond Community Development District					9/30	
						
Downtown Doral Community Development District					9/30	
						
Dunes Community Development District					9/30	
						
Dupree Lakes Community Development District					9/30	
						
Eagle Point Community Development District					9/30	
						
East Bonita Bridge Road Community Development District					9/30	
						
East Park Community Development District					9/30	
						
Easton Park Community Development District					9/30	
						
Enclave at Black Point Marina Community Development District					9/30	
						
Encore Community Development District					9/30	
						
Enterprise Community Development District					9/30	
						
Epperson Ranch Community Development District					9/30	
						
Estancia at Wiregrass Community Development District					9/30	

9

	Governmental	Audit	Utility Audit	Current Client	Year End	
Estates at Cherry Lake Community Development District					9/30	
						
Estuary Community Development District					9/30	
						
Falcon Trace Community Development District					9/30	
						
Fallschase Community Development District					9/30	
						
Fiddler’s Creek Community Development District					9/30	
						
Fishhawk I Community Development District					9/30	
						
Fishhawk II Community Development District					9/30	
						
Fishhawk III Community Development District					9/30	
						
Fishhawk IV Community Development District					9/30	
						
Fleming Island Plantation Community Development District					9/30	
						
Florida Green Finance Authority					9/30	
						
Founder’s Ridge Community Development District					9/30	
						
Fountainbleau Lakes Community Development District					9/30	
						
Forest Creek Community Development District					9/30	
						
Gardens at Millenia Community Development District					9/30	
						
Glen St. Johns Community Development District					9/30	
						
Gramercy Farms Community Development District					9/30	
						
Grand Bay at Doral Community Development District					9/30	
						
Grand Hampton Community Development District					9/30	
						
Grand Haven Community Development District					9/30	
						
Greater Lakes/Sawgrass Community Development District					9/30	
						
Green Corridor PACE District					9/30	
						
Greyhawk Landing Community Development District					9/30	
						
Groves Community Development District					9/30	
						
Habitat Community Development District					9/30	
						
Hacienda Lakes Community Development District					9/30	
						
Hamal Community Development District					9/30	
						
Hammocks Community Development District					9/30	
						
Harbor Bay Community Development District					9/30	
						
Harbour Isles Community Development District					9/30	
						
Harbourage at Braden River Community Development District					9/30	
						
Harmony Community Development District					9/30	
						
Harrison Ranch Community Development District					9/30	
						
Hawk's Point Community Development District					9/30	
						
Hemmingway Point Community Development District					9/30	
						
Heritage Bay Community Development District					9/30	
						
Heritage Greens Community Development District					9/30	
						
Heritage Harbor Community Development District					9/30	
						
Heritage Harbor at Braden River Community Development District					9/30	
						
Heritage Harbour Market Place Community Development District					9/30	
						
Heritage Harbour South Community Development District					9/30	
						
Heritage Isles at Viera Community Development District					9/30	

10

	Governmental	Audit	Utility Audit	Current Client	Year End	
Heritage Isles Community Development District					9/30	
						
Heritage Landing Community Development District					9/30	
						
Heritage Oak Park Community Development District					9/30	
						
Heritage Park Community Development District					9/30	
						
Heritage Plantation Community Development District					9/30	
						
Heritage Springs Community Development District					9/30	
						
Heron Isles Community Development District					9/30	
						
Hickory Hammock Community Development District					9/30	
						
High Ridge/Quantum Community Development District					9/30	
						
Highlands Community Development District					9/30	
						
Hollywood Beach Community Development District					9/30	
						
Homestead 50 Community Development District					9/30	
						
Hypoluxo-Haverhill Community Development District					9/30	
						
Independence Park Community Development District					9/30	
						
Indigo Community Development District					9/30	
						
Indigo East Community Development District					9/30	
						
Interlaken Community Development District					9/30	
						
Islands at Doral III Community Development District					9/30	
						
Islands at Doral (NE) Community Development District					9/30	
						
Islands at Doral (SW) Community Development District					9/30	
						
Islands at Doral Townhomes Community Development District					9/30	
						
Isles of Coconut Cay Community Development District					9/30	
						
Journey's End Community Development District					9/30	
						
Jurlington Creek Plantation Community Development District					9/30	
						
K-Bar Ranch Community Development District					9/30	
						
Kendall Breeze Community Development District					9/30	
						
Kendall Breeze West Community Development District					9/30	
						
Key Marco Community Development District					9/30	
						
Keys Cove Community Development District					9/30	
						
Keys Cove II Community Development District					9/30	
						
La Collina Community Development District					9/30	
						
Laguna Estates Community Development District					9/30	
						
Laguna Lakes Community Development District					9/30	
						
Lake Ashton Community Development District					9/30	
						
Lake Ashton II Community Development District					9/30	
						
Lake Francis Community Development District					9/30	
						
Lake Padgett Estates Independent District					9/30	
						
Lake Powell Residential Golf Community Development District					9/30	
						
Lakes by the Bay South Community Development District					9/30	
						
Lakeshore Ranch Community Development District					9/30	
						
Lakeside Community Development District					9/30	
						
Lakeside Landings Community Development District					9/30	

11

	Governmental	Audit	Utility Audit	Current Client	Year End	
Lakeside Plantation Community Development District					9/30	
						
Lakewood Ranch 1 Community Development District					9/30	
						
Lakewood Ranch 2 Community Development District					9/30	
						
Lakewood Ranch 3 Community Development District					9/30	
						
Lakewood Ranch 4 Community Development District					9/30	
						
Lakewood Ranch 5 Community Development District					9/30	
						
Lakewood Ranch 6 Community Development District					9/30	
						
Legacy Springs Community Development District					9/30	
						
Legends Bay Community Development District					9/30	
						
Lexington Community Development District					9/30	
						
Live Oak Lake Community Development District					9/30	
						
Live Oak No. 1 Community Development District					9/30	
						
Long Lake Ranch Community Development District					9/30	
						
Longleaf Community Development District					9/30	
						
Lucaya Community Development District					9/30	
						
Madeira Community Development District					9/30	
						
Magnolia Park Community Development District					9/30	
						
Magnolia West Community Development District					9/30	
						
Main Street Community Development District					9/30	
						
Mainstreet Community Development District					9/30	
						
Majorca Isles Community Development District					9/30	
						
Maple Ridge Community Development District					9/30	
						
Marsh Harbour Community Development District					9/30	
						
Marshall Creek Community Development District					9/30	
						
Mayfair Community Development District					9/30	
						
Meadow Pines Community Development District					9/30	
						
Meadow Point I Community Development District					9/30	
						
Meadow Point III Community Development District					9/30	
						
Meadow Point IV Community Development District					9/30	
						
Meadow Woods Community Development District					9/30	
						
Mediterra North Community Development District					9/30	
						
Mediterra South Community Development District					9/30	
						
Mediterranea Community Development District					9/30	
						
Middle Village Community Development District					9/30	
						
Mira Lago West Community Development District					9/30	
						
Mirada Community Development District					9/30	
						
Miromar Lakes Community Development District					9/30	
						
Montecito Community Development District					9/30	
						
Monterey/Congress Community Development District					9/30	
						
Myakka Community Development District					9/30	
						
Moody River Estates Community Development District					9/30	
						
Myakka Ranch Community Development District					9/30	

12

	Governmental	Audit	Utility Audit	Current Client	Year End	
Myrtle Creek Community Development District					9/30	
						
Naples Heritage Community Development District					9/30	
						
Narcoossee Community Development District					9/30	
						
Newport Tampa Bay Community Development District					9/30	
						
North Dade Community Development District					9/30	
						
Northern Riverwalk Community Development District					9/30	
						
Northwood Community Development District					9/30	
						
Oak Creek Community Development District					9/30	
						
Oakridge Community Development District					9/30	
						
Oaks at Shady Creek, The Community Development District					9/30	
						
Oakstead Community Development District					9/30	
						
Old Palm Community Development District					9/30	
						
Orchid Grove Community Development District					9/30	
						
Osprey Oaks Community Development District					9/30	
						
OTC Community Development District					9/30	
						
Palm Bay Community Development District					9/30	
						
Palm Beach Plantation Community Development District					9/30	
						
Palm Coast Park Community Development District					9/30	
						
Palm Glades Community Development District					9/30	
						
Palma Sola Trace Community Development District					9/30	
						
Palms of Terra Ceia Bay Community Development District					9/30	
						
Pan American West Community Development District					9/30	
						
Panther Trace I Community Development District					9/30	
						
Panther Trace II Community Development District					9/30	
						
Panther Trails Community Development District					9/30	
						
Parker Road Community Development District					9/30	
						
Parklands Lee Community Development District					9/30	
						
Parklands West Community Development District					9/30	
						
Parkway Center Community Development District					9/30	
						
Paseo Community Development District					9/30	
						
PBR Community Development District					9/30	
						
Pebblewalk Village Community Development District					9/30	
						
Pelican Marsh Community Development District					9/30	
						
Pembroke Harbor Community Development District					9/30	
						
Pentathlon Community Development District					9/30	
						
Pine Air Lakes Community Development District					9/30	
						
Pine Island Community Development District					9/30	
						
Pine Island South Community Development District					9/30	
						
Piney-Z Community Development District					9/30	
						
Pioneer Community Development District					9/30	
						
Poinciana Community Development District					9/30	
						
Poinciana West Community Development District					9/30	

13

	Governmental	Audit	Utility Audit	Current Client	Year End	
Portico Community Development District					9/30	
						
Portofino Cove Community Development District					9/30	
						
Portofino Isles Community Development District					9/30	
						
Portofino Landings Community Development District					9/30	
						
Portofino Shores Community Development District					9/30	
						
Portofino Springs Community Development District					9/30	
						
Portofino Vineyards Community Development District					9/30	
						
Portofino Vista Community Development District					9/30	
						
Preserve at Wilderness Lake Community Development District					9/30	
						
Principal One Community Development District					9/30	
						
Quantum Community Development District					9/30	
						
Quantum Park Overlay Community Development District					9/30	
						
Quarry Community Development District					9/30	
						
Randal Park Community Development District					9/30	
						
Remington Community Development District					9/30	
						
Renaissance Community Development District					9/30	
						
Reserve Community Development District					9/30	
						
Reserve 2 Community Development District					9/30	
						
Reunion East Community Development District					9/30	
						
Reunion West Community Development District					9/30	
						
River Bend Community Development District					9/30	
						
River Glen Community Development District					9/30	
						
River Hall Community Development District					9/30	
						
River Place on the St. Lucie Community Development District					9/30	
						
River Ridge Community Development District					9/30	
						
Rivercrest Community Development District					9/30	
						
Rivers Edge Community Development District					9/30	
						
Sable Palm Community Development District					9/30	
						
Sail Harbour Community Development District					9/30	
						
Sampson Creek Community Development District					9/30	
						
Sandy Creek Community Development District					9/30	
						
Sausalito Bay Community Development District					9/30	
						
Seven Oaks I Community Development District					9/30	
						
Seven Oaks II Community Development District					9/30	
						
Silver Palms Community Development District					9/30	
						
Silverado Community Development District					9/30	
						
Six Mile Creek Community Development District					9/30	
						
Somerset Community Development District					9/30	
						
Sonoma Bay Community Development District					9/30	
						
South Bay Community Development District					9/30	
						
South Fork Community Development District					9/30	
						
South Fork East Community Development District					9/30	

14

	Governmental	Audit	Utility Audit	Current Client	Year End	
South Fork III Community Development District					9/30	
						
South Kendall Community Development District					9/30	
						
South Shore Corporate Park Industrial Community Development District					9/30	
						
South-Dade Venture Development District					9/30	
						
South Village Community Development District					9/30	
						
Southaven Community Development District					9/30	
						
Southern Hills Plantation I Community Development District					9/30	
						
Southern Hills Plantation II Community Development District					9/30	
						
Southern Hills Plantation III Community Development District					9/30	
						
Spicewood Community Development District					9/30	
						
Split Pine Community Development District					9/30	
						
Springridge Community Development District (formerly Killarney)					9/30	
						
St. John's Forest Community Development District					9/30	
						
Sterling Hill Community Development District					9/30	
						
Stevens Plantation Community Development District					9/30	
						
Stonebrier Community Development District					9/30	
						
Stonegate Community Development District					9/30	
						
Stoneybrook at Venice Community Development District					9/30	
						
Stoneybrook Community Development District					9/30	
						
Stoneybrook Oaks Community Development District					9/30	
						
Storey Park Community Development District					9/30	
						
Summerville Community Development District					9/30	
						
Summit at Fern Hill Community Development District					9/30	
						
Sunny Hills Units 12-15 Dependent District					9/30	
						
SWI Community Development District					9/30	
						
Talavera Community Development District					9/30	
						
Tampa Palms Community Development District					9/30	
						
Tampa Palms Open Space and Transport Community Development District					9/30	
						
Tapestry Community Development District					9/30	
						
Tara Community Development District					9/30	
						
Terra Bella Community Development District					9/30	
						
Tesoro Community Development District					9/30	
						
Thousand Oaks Community Development District					9/30	
						
Tison's Landing Community Development District					9/30	
						
Tolomato Community Development District					9/30	
						
Tomoka Community Development District					9/30	
						
Toscana Isles Community Development District					9/30	
						
Town Center at Palm Coast Community Development District					9/30	
						
Tradition Community Development District					9/30	
						
Trails Community Development District					9/30	
						
Trails at Monterey Community Development District					9/30	

15

	Governmental	Audit	Utility Audit	Current Client	Year End	
Treaty Oaks Community Development District					9/30	
						
Tree Island Estates Community Development District					9/30	
						
Treeline Preserve Community Development District					9/30	
						
Trevesta Community Development District					9/30	
						
Triple Creek Community Development District					9/30	
						
TSR Community Development District					9/30	
						
Turnbull Creek Community Development District					9/30	
						
Turtle Run Community Development District					9/30	
						
Tuscany Reserve Community Development District					9/30	
						
Twelve Oaks Community Development District					9/30	
						
Two Creeks Community Development District					9/30	
						
University Place Community Development District					9/30	
						
University Square Community Development District					9/30	
						
Urban Orlando Community Development District					9/30	
						
Valencia Acres Community Development District					9/30	
						
Vasari Community Development District					9/30	
						
Venetian Community Development District					9/30	
						
Venetian Isles Community Development District					9/30	
						
Venetian Parc Community Development District					9/30	
						
Verandah Community Development District					9/30	
						
Verandah East Community Development District					9/30	
						
Verandah West Community Development District					9/30	
						
Verandahs Community Development District					9/30	
						
Verano #1 Community Development District					9/30	
						
Verano Center Community Development District					9/30	
						
Verona Walk Community Development District					9/30	
						
Viera East Community Development District					9/30	
						
Villa Portofino East Community Development District					9/30	
						
Villa Portofino West Community Development District					9/30	
						
Villa Vizcaya Community Development District					9/30	
						
Village Walk of Bonita Springs Community Development District					9/30	
						
Villages at Bloomingdale Community Development District					9/30	
						
Village at Gulfstream Park Community Development District					9/30	
						
Villages of Glen Creek Community Development District					9/30	
						
Villages of Westport Community Development District					9/30	
						
Vista Community Development District					9/30	
						
Vista Lakes Community Development District					9/30	
						
Vizcaya in Kendall Community Development District					9/30	
						
Walnut Creek Community Development District					9/30	
						
Waterchase Community Development District					9/30	
						
Waterford Estates Community Development District					9/30	
						
Waterford Landing Community Development District					9/30	

16

	GovernmentalAudit	Utility Audit		Current Client		Year End			
Watergrass Community Development District						9/30		
Waterlefe Community Development District						9/30		
Water's Edge Community Development District						9/30		
Waterset North Community Development District						9/30		
Waterstone Community Development District						9/30		
Wentworth Estates Community Development District						9/30		
West Lake Community Development District						9/30		
West Villages Independent District						9/30		
Westchase Community Development District						9/30		
Westchester Community Development District						9/30		
Westridge Community Development District						9/30		
Willow Creek Community Development District						9/30		
Winding Cypress Community Development District						9/30		
Windsor at Westside Community Development District						9/30		
Winston Trails East Community Development District						9/30		
Winter Garden Village at Fowler Groves Community Development District						9/30		
Woodlands Community Development District						9/30		
World Commerce Community Development District						9/30		
Wyndam Park Community Development District						9/30		
Wynnfield Lakes Community Development District						9/30		
Wynnmere West Community Development District						9/30		
TOTAL	437		3	255					
	Attestation Services	Consulting Services	Governmental Audit	Single Audit	CAFR	Current Client	Year End		
Broward County School District (Joint Venture)							N/A		
(Assessment of Maintenance Operations)									
									
Broward County School District (Joint Venture, 20%)							6/30		
Florida Community College at Jacksonville (Internal Audit)							6/30		
Florida Transit Association Finance Corporation						 6/30		
Highland County School District (Internal Funds Audit)							6/30		
Palm Beach County School District (Assessment of maintenance for Facility							6/30		
and Property Management) (Internal Funds Audit)									
									
Palm Beach County School District (Joint Venture, 20%)							6/30		
Migrant Health Services of Palm Beach County							N/A		
South Florida Water Management District							9/30		
South Florida Water Management District CERP Program							N/A		
Management Services (Joint Venture)									
									
State of Florida Department of Management Services (Construction)							N/A		
State of Florida Department of Transportation (Overhead Audits - Various)						 N/A		
TOTAL	2	3	8	4	2	2			

17

	Attestation Services	Financial Audit	Consulting Services	Governmental Audit	Single Audit	Tax Services	Current Client	Year End		
Aid to Victims of Domestic Abuse, Inc.								6/30		
Alliance for Human Services, Inc.								6/30		
Brevard Workforce Development Board, Inc.								6/30		
Broward County Human Rights Board/Division (Joint Venture, 30%)								N/A		
Broward Education Foundation								6/30		
CareerSource Broward								9/30		
Christian Manor								12/31		
Delray Beach Community Land Trust								9/30		
Family Promise								12/31		
Florida Public Transportation Association, Inc.								9/30		
Florida Transit Association Finance Corporation								9/30		
Hispanic Human Resources Council								9/30		
Mae Volen Senior Center								6/30		
National Board for Registration of Registrars								3/31		
National Cancer Registration Board								6/30		
North Lauderdale Academy High School								6/30		
Northwood Development Corporation								9/30		
Palm Beach Community College Foundation								6/30		
Palm Beach County Workforce Development Board (Joint Venture,								6/30		
25%)										
										
Pasco-Hernando Workforce Board								6/30		
Southwest Florida Workforce Development Board								6/30		
Urban League of Palm Beach County								6/30		
TOTAL	9	13	5	13	9	13	6			
					Financial Audit	ERISA/DOL	Current Client	Year End		
Campbell Property Management 401(k)								12/31		
City of Cooper City General Employee Retirement Plan								9/30		
City of Lauderhill General Employee Retirement Plan								9/30		
City of Parkland Police Pension Fund								9/30		
City of Sunrise General Employees' Retirement System								9/30		
Cross County Home Services and Affiliates 401(k) Plan								9/30		
Danmar Corporation 401(k) Plan								12/31		
Florida Public Utilities 401(k) and Pension Plans								12/31		
Jacksonville Police and Fire Pension Fund								9/30		
Pinetree Water Control District Defined Contribution Retirement Plan								9/30		
San Carlos Park Fire Protection and Rescue Service District								9/30		
Town of Davie General Employees Retirement Plan								9/30		
Town of Hypoluxo Defined Contribution Retirement Plan								9/30		
Town of Lauderdale By The Sea Volunteer Firefighters Pension Plan								9/30		
				TOTAL	14	4	9			

18

	GovernmentalAudit	Single Audit	Utility Audit	Current Client	Year End		
								
Belle Fontaine Improvement District						9/30		

Boca Raton Airport Authority						9/30		
								
Central Broward Water Control District						9/30		
								
Central County Water Control District						9/30		
								
Citrus County Mosquito Control District						9/30		
								
Coquina Water Control District						9/30		
								
East Central Regional Wastewater Treatment Facility						9/30		
								
East Naples Fire Control and Rescue District						9/30		
								
Greater Boca Raton Beach and Park District						9/30		
								
Greeneway Improvement District						9/30		
								
Hobe-St. Lucie Conservancy District						9/30		
								
Homestead Educational Facilities Benefits District						9/30		
								
Horizons Improvement District						9/30		
								
Indian Trail Improvement District						9/30		
								
Key Largo Waste Water Treatment District						9/30		
								
Lake Padgett Estates Independent Special District						9/30		
								
Lakewood Ranch Inter-District Authority						9/30		
								
Lost Rabbit Public Improvement District						9/30		
								
Loxahatchee Groves Water Control District						9/30		
								
Myakka City Fire Control District						9/30		
								
Old Plantation Control District						9/30		
								
Pal Mar Water Control District						9/30		
								
Palm Beach Soil and Water Conservation District						9/30		
								
Pinellas Park Water Management District						9/30		
								
Pine Tree Water Control District (Broward)						9/30		
								
Pinetree Water Control District (Wellington)						9/30		
								
Ranger Drainage District						9/30		
								
Renaissance Improvement District						9/30		
								
San Carlos Park Fire Protection and Rescue Service District						9/30		
								
South Central Regional Wastewater Treatment and Disposal Board						9/30		
								
South Indian River Water Control District						9/30		
								
South Trail Fire Protection & Rescue District						9/30		
								
St. Lucie West Services District						9/30		
								
Sun 'N Lake of Sebring Improvement District						9/30		
								
Sunshine Water Control District						9/30		
								
Twelve Oaks Improvement District						9/30		
								
West Lakeland Water Control District						9/30		
								
West Villages Independent District						9/30		
								
TOTAL		38	3	3	24			

19

Staff Qualifications,

Experience & Resumes

20

QUALITY AND EXPERIENCE OF FIRM’S ASSIGNED AUDITING PERSONNEL

You will have two partners available and our consultant for any technical assistance. In addition, a senior will be assigned to the engagement that will perform the majority of fieldwork. Additional staff are available to assist with the engagement should the need arise.

Name	Years	CPE within last 2	Professional		
	performing	years	Memberships		
	government				
	audits				
ANTONIO J. GRAU, CPA	Over 30	Government Accounting,	AICPA		
(Partner)		Auditing: 95 hours	FICPA		
		Accounting, Auditing and	FGFOA		
			GFOA		
		Other: 62 hours			
ANTONIO S. GRAU, CPA	Over 40	Government Accounting and	AICPA		
(Concurring Review Consultant)		Auditing: 32 hours	FICPA		
		Accounting, Auditing and	ICPA		
					
		Other: 62 hours			
RACQUEL MCINTOSH, CPA	Over 13	Government Accounting and	AICPA		
(Partner)		Auditing hours:62	FICPA		
		Accounting, Auditing and	FGFOA		
			FASD		
		Other: 20 hours			

21

POSITION DESCRIPTIONS

Engagement Partner
The engagement will be performed under the direct supervision of an Engagement Partner. The Engagement Partner will participate extensively during the various stages of the engagement and has direct responsibility for engagement policy, direction, supervision, quality control, security, confidentiality of information of the engagement and communication with client personnel.

The Engagement Partner will also be involved in:

•	coordinating all services;

•	directing the development of the overall audit approach and plan;
•	performing an overriding review of work papers;

•	resolving technical accounting and reporting issues;
•	reviewing, approving and signing reports, management letters, and other audit engagement products; and,

•	ascertaining client satisfaction with all aspects of our engagement, such as services and the personnel assigned.

Concurring Review and Advisory Consultant
A Concurring Review Consultant will be available as a sounding board to advise in those areas where problems are encountered. He will also perform a second review of all reports to be issued by Grau & Associates.

Audit Manager and Senior
The assigned personnel will work closely with the partner and the District to ensure that the financial statements and all other reports are prepared in accordance with professional standards and firm policy. Responsibilities will include:

•	planning the audit;
•	preparing or modifying audit programs, as needed;

•	evaluating internal control and assessing risk;
•	communicating with the client and the partners the progress of the audit; and

•	determining that financial statements and all reports issued by the firm for accuracy, completeness and that they are prepared in accordance with professional standards and firm policy.

Information Technology Consultants and Personnel

In addition to the assigned personnel above, Grau and Associates has staff with significant IT auditing experience that will assist in the evaluation and testing of internal controls. Because our staff has both a financial audit and IT background, they are able to communicate effectively all IT related concerns to management. In addition, Grau contracts with an outside group of IT management consultants to assist with matters including, but not limited to; network and database security, internet security and vulnerability testing.

Grau’s engagement team’s workload is organized in such a way that additional activities brought about by this engagement will not impact our current commitments to our clients. We have sufficient staff capacity to integrate these professional services into our present operations, while continuing to maintain the highest standards of quality and time lines for our clients.

22

COMPOSITION OF ENGAGEMENT TEAM

In contrast to the majority of both national and local firms, Grau’s proposed engagement team is comprised of an exceptionally large percentage of high-level audit professionals. This gives us the ability to quickly recognize problems and be more efficient as a result of our Team’s DECADES of governmental auditing experience.

Grau & Associates

30%	 PARTNER/CONSULTANT

 MANAGERS

 SENIOR

 STAFF

30%

20%

20%

80 percent of engagement will be performed by
Partners, Management and Senior Staff

VS.

Typical Local CPA Firm:		Typical National CPA Firm			
		10%	PARTNERS		
15%	PART NERS		MANAGERS		
	MANAGERS		SENIOR		
			STAFF		
	SENIOR				
 ST AFF

15%

45%

20%

55%

20%

20%

Fifty-five percent of engagement is performed by “Management”

Forty-five percent of engagement is performed by “Management”

23

Antonio J. Grau, CPA, Partner

e-mail: tgrau@graucpa.com

Education
Bachelor of Arts, Business Administration, 1983 University of South Florida; Certificate of Educational Achievement from the AICPA in Governmental Single Audits, 2016

Professional History
CPA, in Florida since February 28, 1985, Certificate No. 15330
Grau & Associates	Partner	2005-Present	
Grau & Company	Partner	1995-2005	
Grau & Company	Audit Manager	1987-1995	
International Firm	Auditor	1985-1986	
Grau & Company	Staff Accountant	1983-1984	

Clients Served (partial list)

(>300) Various Special Districts	Key Largo Water Treatment District

Brevard Workforce Board	Mae Volen Senior Center, Inc.
Broward Education Foundation	North Lauderdale Academy High School

City of Cooper City	Orlando Housing Authority
City of Lauderdale Lakes	Palm Beach County Workforce Development Board
City of Lauderhill	Peninsula Housing Programs
City of Lauderhill General Pension	School Board of Broward County

City of North Lauderdale	School Board of Miami-Dade County
City of Oakland Park	School Board of Palm Beach County
City of Weston	South Florida Water Management District
Delray Beach Housing Authority	Southwest Florida Workforce Development Board

East Central Regional Wastewater Treatment Facl.	Town of Davie
Florida Community College at Jacksonville	Town of Highland Beach
Florida Department of Management	Town of Hypoluxo
Services

Greater Boca Raton Park & Beach District	Village of Golf
Highland County School District	Village of Wellington
Hispanic Human Resource Council	West Palm Beach Housing Authority

Professional Education (over the last two years)
Course	Hours	
Government Accounting and Auditing	95	
Accounting, Auditing and Other	62	
Total Hours	157 (includes of 4 hours of Ethics CPE)	
Other Qualifications
As a member of the Government Finance Officers Association Special Review Committee, Mr. Grau participated in the review process for awarding the GFOA Certificate of Achievement in Financial Reporting. Mr. Grau was the review team leader for the Quality Review of the Office of Management Audits of School Board of Miami-Dade County.

Professional Associations/Memberships
American Institute of Certified Public Accountants	Florida Government Finance Officers Association	
Florida Institute of Certified Public Accountants	Government Finance Officers Association Member	
City of Boca Raton Financial Advisory Board Member		

24

Antonio S. Grau, CPA, Concurring Review Consultant

e-mail: asgrau@graucpa.com

Education
Bachelor Degree, Business Administration, 1966, University of Miami, Certificate of Educational Achievement from the AICPA in Governmental and Not-For-Profit Accounting and Auditing, 1994/1995

Professional History
CPA in Florida since April 29, 1970, Certificate No. 2623

Grau & Company	Partner	1977-2004	
Public Company	Financial Officer	1972-1976	
International Firm	Auditor	1966-1972	

Clients Served (partial list)
Mr. Grau was the head of the governmental audit department of Grau & Company, and performs the concurring review and advises on all the governmental audits of the firm.
Atlanta Housing Authority	Hispanic Human Resource Council
Broward County Housing Authority	Mae Volen Senior Center, Inc.
City of Dania Beach	Miami Beach Housing Authority
City of Lauderdale Lakes	North Lauderdale Academy High School
City of Lauderhill	Palm Beach County Workforce Development Board

City of Lauderhill General Pension	School Board of Miami-Dade County
City of Miami Springs	South Florida Water Management District
City of Oakland Park	Town of Hypoluxo
City of Sweetwater Pension	Town of Lauderdale-By-The-Sea

Florida Community College at Jacksonville	Town of Miami Lakes
Highland County School District	Town of Southwest Ranches
Downtown Development Authority of the City of	Village of Biscayne Park
Miami / Community Development Block Grants	West Palm Beach Housing Authority

Professional Education (over the last two years)
Course	Hours

Government Accounting and Auditing	32
Accounting, Auditing and Other	62

Total Hours	94 (includes of 4 hours of Ethics CPE)

Other Qualifications
Mr. Grau was the review team leader for the Quality Review of the Office of Management Audits of School Board of Miami-Dade County.

Professional Associations/Memberships

Member, American Institute of Certified Public Accountants	Institute of Certified Public Accountants (1996-1997)
Member, Florida Institute of Certified Public Accountants	Institute of Certified Public Accountants (1991 - 1993)
Past member, State and Local Government Committee, Florida

Past member, Quality Review Acceptance Committee, Florida
Past member of BKR International Committee on Government and Non-Profit Accounting and Auditing

25

Racquel C. McIntosh, CPA, Partner

e-mail: rmcintosh@graucpa.com / 561-939-6669

Education
Master of Accounting, MACC; Florida Atlantic University, December 2004;
Bachelor of Arts – Majors: Accounting and Finance; Florida Atlantic University, May 2003

Professional History			
Grau & Associates	Partner	2014-Present	
Grau & Associates	Manager	2009-2014	
Grau & Associates	Senior Auditor	2007-2009	
Grau & Associates	Staff Auditor	2006-2007	
Grau & Company	Staff Auditor	2005-2006	

Clients Served (partial list)			
(>300) Various Special Districts		Pinetree Water Control District (Broward/Palm Beach)	
Boca Raton Airport Authority		Ranger Drainage District	
Brevard Workforce Development Board		San Carlos Park Fire Protection & Rescue District	
Broward Education Foundation		South Central Reg. Wastewater Treatment & Disposal Bd.	
Central Broward Water Control District		South Trail Fire Protection & Rescue	
City of Cooper City		Southwest Florida Workforce Development Board	
City of Pompano Beach (Joint Venture)		Sun N Lake of Sebring Improvement District	
City of West Park		Town of Highland Beach	
City of Weston		Town of Hypoluxo	
East Central Reg. Wastewater Treatment Fac.		Town of Lantana	
East Naples Fire Control & Rescue District		Town of Hillsboro Beach	
Greater Boca Raton Beach & Park District		Village of Golf	
Key Largo Wastewater Treatment District		Village of Wellington	
Professional Education (over the last two years)	
Course	Hours		
Government Accounting and Auditing	62		
Accounting, Auditing and Other	20		
Total Hours	82 (includes of 4 hours of Ethics CPE)	
Professional Associations/ Memberships	
American Institute of Certified Public Accountants	FICPA State & Local Government Committee	
Florida Institute of Certified Public Accountants		FICPA Atlantic Chapter Board Member	
FICPA Young CPAs Committee		FGFOA Palm Beach Chapter	

26

References

27

We have included three references of government engagements that require compliance with laws and regulations, follow fund accounting, and have financing requirements, which we believe are similar to the District.

Dunes Community Development District

Scope of Work	Financial audit	
Engagement Partner	Antonio J. Grau	
Dates	Annually since 1998	
		
Client Contact	Darrin Mossing, Finance Director	
	475 W. Town Place, Suite 114	
	St. Augustine, Florida 32092	
	904-940-5850	

Two Creeks Community Development District

Scope of Work	Financial audit	
Engagement Partner	Antonio J. Grau	
Dates	Annually since 2007	
		
Client Contact	William Rizzetta, President	
	3434 Colwell Avenue, Suite 200	
	Tampa, Florida 33614	
	813-933-5571	

Journey’s End Community Development District

Scope of Work	Financial audit	
		
Engagement Partner	Antonio J. Grau	
Dates	Annually since 2004	
		
Client Contact	Todd Wodraska, Vice President	
	2501 A Burns Road	
	Palm Beach Gardens, Florida 33410	
	561-630-4922	

28

Specific Audit Approach

29

SCOPE / WORK PRODUCTS / RESULTS

Grau’s Understanding of Work Product / Scope of Services:

We recognize the District is an important entity and we are confident our firm is eminently qualified to meet the challenges of this engagement and deliver quality audit services. You would be a valued client of our firm and we pledge to commit all firm resources to provide the level and quality of services (as described below) which not only meet the requirements set forth in the RFP but will exceed those expectations. Grau & Associates fully understands the scope of professional services and work products requested. Our audit will follow the Auditing Standards of the AICPA, Generally Accepted Government Auditing Standards, issued by the Comptroller General of the United States, and the Rules of the Auditor General of the State of Florida and any other applicable Federal, State of Local regulations.
We will deliver our reports in accordance with your requirements.

Proposed segmentation of the engagement

Our approach to the audit engagement is a risk-based approach which integrates the best of traditional auditing techniques and a total systems concept to enable the team to conduct a more efficient and effective audit. The audit will be conducted in three phases, which are as follows:

Phase I - Preliminary Planning

A thorough understanding of your organization, service objectives and operating environment is essential for the development of an audit plan and for an efficient, cost-effective audit. During this phase, we will meet with appropriate personnel to obtain and document our understanding of your operations and service objectives and, at the same time, give you the opportunity to express your expectations with respect to the services that we will provide. Our work effort will be coordinated so that there will be minimal disruption to your staff.

During this phase we will perform the following activities:

•	Review the regulatory, statutory and compliance requirements. This will include a review of applicable federal and state statutes, resolutions, bond documents, contracts, and other agreements.

•	Read minutes of meetings.
•	Review major sources of information such as budgets, organization charts, procedures, manuals, financial systems, and management information systems.
•	Obtain an understanding of fraud detection and prevention systems.

•	Obtain and document an understanding of internal control. Consider the methods that are used to process accounting information which influence the design of the internal control. This understanding includes knowledge about the design of relevant policies, procedures, and records, and whether they have been placed in operation.

•	Assess risk and determine what controls we are to rely upon and what tests we are going to perform. Perform test of controls.
•	Develop audit programs to incorporate the consideration of financial statement assertions, specific audit objectives, and appropriate audit procedures to achieve the specified objectives.
•	Discuss and resolve any accounting, auditing and reporting matters which have been identified.

30

Phase II – Execution of Audit Plan

The audit team will complete a major portion of transaction testing and audit requirements during this phase. The procedures performed during this period will enable us to identify any matter that may impact the completion of our work or require the attention of management. Tasks to be performed in Phase II include, but are not limited to the following:

•	Apply analytical procedures to further assist in the determination of the nature, timing, and extent of auditing procedures used to obtain evidential matter for specific account balances or classes of transactions.
•	Perform tests of account balances and transactions through sampling, vouching, confirmation and other analytical procedures.

•	Perform tests of compliance.

Phase III - Completion and Delivery

In this phase of the audit, we will complete the tasks related to year- end balances and financial reporting. All reports will be reviewed with management before issuance, and the partners will be available to meet and discuss our report and address any questions. Tasks to be performed in Phase III include, but are not limited to the following:

•	Perform final analytical procedures.

•	Review information and make inquiries for subsequent events.

•	Meeting with Management to discuss preparation of draft financial statements and any potential findings or recommendations.

You should expect more from your accounting firm than a signature in your annual financial report. Our concept of truly responsive professional service emphasizes taking an active interest in the issues of concern to our clients and serving as an effective resource in dealing with those issues. In following this approach, we not only audit financial information with hindsight but also consider the foresight you apply in managing operations.

Application of this approach in developing our management letter is particularly important given the increasing financial pressures and public scrutiny facing today’s public officials. We will prepare the management letter at the completion of our final procedures.

In preparing this management letter, we will initially review any draft comments or recommendations with management. In addition, we will take necessary steps to ensure that matters are communicated to those charged with governance.

In addition to communicating any recommendations, we will also communicate the following, if any:

•	Significant audit adjustments;

•	Significant deficiencies or material weaknesses;

•	Disagreements with management; and,

•	Difficulties encountered in performing the audit.

Our findings will contain a statement of condition describing the situation and the area that needs strengthening, what should be corrected and why. Our suggestions will withstand the basic tests of corrective action:

31

•	The recommendation must be cost effective;

•	The recommendations are to be the simplest to effectuate in order to correct a problem;

•	The recommendation must go to the heart of the problem and not just correct symptomatic matter; and

•	The corrective action must take into account why the deficiency occurred.

To assure full agreement with facts and circumstances, we will fully discuss each item with Management prior to the final exit conference. This policy means there will be no “surprises” in the management letter and fosters a professional, cooperative atmosphere.

Communications

We emphasize a continuous, year-round dialogue between the District and our management team. We typically begin our audit process with an entrance conference before the onsite fieldwork begins. We regularly communicate through personal telephone calls and electronic mail throughout the audit and on a regular basis. Our clients have the ability to transmit information to us on our secure client portal with the ability to assign different staff with separate log on and viewing capability. This further facilitates efficiency as all assigned users receive electronic mail notification as soon as new information has been posted into the portal. We strive to continue to keep an open line of communication through the fieldwork and ending with an exit conference.

32

Cost of Services

33

Our proposed all-inclusive fee for the financial audit for the fiscal year ended September 30, 2018-2020 are as follows:

Year Ended September 30,	Fee	
2018	$3,000	
2019	$3,100	
2020	$3,200	
TOTAL		
(2018-2020)	$9,300	

The above fees are based on the assumption that the District maintains its current level of operations. Should conditions change or additional Bonds are issued the fees would be adjusted accordingly upon approval from all parties concerned.

34

Supplemental Information

35

Additional Services

CONSULTING / MANAGEMENT ADVISORY SERVICES

Grau & Associates also provide a broad range of other management consulting services. Our expertise has been consistently utilized by Governmental and Non-Profit entities throughout Florida. Examples of engagements performed are as follows:

• Accounting systems	• Fixed asset records

• Development of budgets	• Cost reimbursement

• Organizational structures	• Indirect cost allocation

• Financing alternatives	• Grant administration and compliance

• IT Auditing

ARBITRAGE

The federal government has imposed complex rules to restrict the use of tax-exempt financing. Their principal purpose is to eliminate any significant arbitrage incentives in a tax-exempt issue. We have determined the applicability of these requirements and performed the rebate calculations for more than 150 bond issues, including both fixed and variable rate bonds. Please find a partial list of clients served on the following pages.

36

GRAU HAS PROVIDED ARBITRAGE SERVICES FOR

GOVERMENTAL CLIENTS INCLUDING:

 Aberdeen Community Development District	 Heritage Palms Community Development District

 Amelia Walk Community Development District	 Heritage Pines Community Development District

 Arlington Ridge Community Development District	 Heritage Springs Community Development District

 Coconut Cay Community Development District	 Huntington Community Development District

 Bartram Springs Community Development District	 Indigo East Community Development District

 Bayside Improvement District	 Islands of Doral III Community Development District

 Baywinds Community Development District	 Julington Creek Plantation Comm. Dev. District

 Beacon Lakes Community Development District	 Laguna Lakes Community Development District

 Beacon Tradeport Community Development District	 Lake Ashton Community Development District

 Bobcat Trail Community Development District	 Lake Ashton II Community Development District

 Boynton Village Community Development District	 Lake Powell Residential Golf Community Dev. District

 Brandy Creek Community Development District	 Lakes By The Bay South Community Dev. District

 Briger Community Development District	 Lakewood Ranch 1 Community Development District

 Brighton Lakes Community Development District	 Landmark at Doral Community Development District

 Brooks of Bonita Springs Community Development District	 Jurlington Creek Plantation Community Dev. District

 Candller Hills East Community Development District	 Lakewood Ranch 2 Community Development District

 Capital Region Community Development District	 Lakewood Ranch 3 Community Development District

 Cedar Pointe Community Development District	 Lakewood Ranch 4 Community Development District

 Championsgate Community Development District	 Lakewood Ranch 5 Community Development District

 Chevel West Community Development District	 Lakewood Ranch 6 Community Development District

 City Place Community Development District	 Legacy Springs Improvement District No. 1

 Coconut Cay Community Development District	 Live Oak Community Development District

 Colonial Country Club Community Development District	 Main Street Community Development District

 Cory Lakes Community Development District	 Marshall Creek Community Development District

 Country Greens Community Development District	 Meadow Pointe II Community Development District

 Creekside Community Development District	 Mediterra North Community Development District

 Double Branch Community Development District	 Mediterra South Community Development District

 Dunes Community Development District	 Mediterranea Community Development District

 Durbin Crossing Community Development District	 Midtown Miami Community Development District

 East Bonita Beach Road Plantation Comm. Development District            Moody River Community Development District

 East Homestead Community Development District	 Monterra Community Development District

 East Park Community Development District	 Narcossee Community Development District

 Enclave at Black Point Marina Community Development District             North Springs Improvement District

 Falcon Trace Community Development District	 Oakstead Community Development District

 Fiddler’s Creek Community Development District I	 Old Palm Community Development District

 Fiddler’s Creek Community Development District II	 Orchid Grove Community Development District

 Fleming Island Plantation Comm. Dev. District	 OTC Community Development District

 Grand Haven Community Development District	 Overoaks Community Development District

 Griffin Lakes Community Development District	 Palm Glades Community Development District

 Habitat Community Development District	 Parklands Lee Community Development District

 Hamal Community Development District	 Parklands West Community Development District

 Hammocks Community Development District	 Parkway Center Community Development District

 Harbour Lakes Estates Comm. Development District	 Pine Air Lakes Community Development District

 Harmony Community Development District	 Pine Island Community Development District

 Heritage Bay Community Development District	 Pine Ridge Plantation Community Development District

37

ARBITRAGE SERVICES (Continued)

 Portofino Cove Community Development District	 Tuscany Reserve Community Development District

 Portofino Isles Community Development District	 University Place Community Development District

 Portofino Landings Community Development District	 Urban Orlando Community Development District

 Portofino Shores Community Development District	 Vasari Community Development District

 Portofino Vista Community Development District	 Verandah East Community Development District

 Reunion East Community Development District	 Verandah West Community Development District

 Reunion West Community Development District	 Verano Center Community Development District

 Ridgewood Trails Community Development District	 Villa Portofino East Community Development District

 River Place on the St. Lucie Community Dev. District	 Villa Vizcaya Community Development District

 Rolling Hills Community Development District	 Villages of Westport Comm. Development District

 Sampson Creek Community Development District	 Villasol Community Development District

 South Dade Venture Community Development District	 Vista Lakes Community Development District

 South Village Community Development District	 Vizcaya Community Development District

 Spicewood Community Development District	 Vizcaya in Kendall Community Development District

 Split Pine Community Development District	 Walnut Creek Community Development District

 Stonegate Community Development District	 Waterchase Community Development District

 Stoneybrook Community Development District	 Waterford Estates Community Development District

 Stoneybrook West Community Development District	 Waterstone Community Development District

 The Crossings at Fleming Island Comm. Dev. District	 Wentworth Estates Community Development District

 Tison’s Landing Community Development District	 Westchester Community Development District #1

 Treeline Preserve Community Development District	 Woodlands Community Development District

 Turnbull Creek Community Development District	 Wynnfield Lakes Community Development District

Grau provides value and services above and beyond

the traditional auditor’s “product”

We look forward to providing Rivers Edge II Community Development District with our resources and experience to accomplish not only those minimum requirements set forth in your Request for Proposal, but to exceed those expectations!

For even more information on Grau & Associates please visit us on www.graucpa.com.

38

SEVENTH ORDER OF BUSINESS

MINUTES OF MEETING

RIVERS EDGE II COMMUNITY DEVELOPMENT DISTRICT

The meeting of the Board of Supervisors of the Rivers Edge II Community Development District was held on Wednesday, September 12, 2018 at 5:00 p.m. at the
RiverTown Amenity Center, 156 Landing Street, St. Johns, Florida.

Present and constituting a quorum were:

Jason Sessions	Chairman

Louis Cowling	Vice Chairman
Chris Henderson	Supervisor
Jason Thomas	Supervisor

Also present were:

Jim Perry	District Manager

Jennifer Kilinski	District Counsel
Ryan Stilwell	District Engineer
Ernesto Torres	Governmental Management Services
Jason Davidson	Vesta – Amenity Manager
Robert Beladi	Vesta – Operations Manager
Dan Fagen	Vesta
5 Residents

The following is a summary of the discussions and actions taken at the September 12, 2018 meeting. A copy of the proceedings can be obtained by contacting the District Manager.

FIRST ORDER OF BUSINESS	Roll Call		
Mr. Perry called the meeting to order.			
SECOND ORDER OF BUSINESS	Public Comment		
There being none, the next item followed.		
THIRD ORDER OF BUSINESS	Approval of the Minutes of the August 22,		
There were no changes to the minutes.	2018 Meeting		

 On MOTION by Mr. Sessions seconded by Mr. Thomas with all in  favor the August 22, 2018 minutes ere approved.

September 12, 2018	Rivers Edge II CDD

FOURTH ORDER OF BUSINESS	Acceptance of the Minutes of the August

22, 2018 Audit Committee Meeting
Mr. Perry stated there is a change to page one. Mr. Thomas was the one who seconded that motion.

 On MOTION by Mr. Sessions seconded by Mr. Thomas with all in  favor the minutes of the August 22, 2018 audit committee meeting  were approved. 

FIFTH ORDER OF BUSINESS	Consideration of Agreement with Prosser,

Inc. for District Engineering Services
Ms. Kilinski stated the agreement is standard and the rate schedule is attached. This

was a result of the RFP process we went through at the last meeting.

 On MOTION by Mr. Sessions seconded by Mr. Cowling with all  in favor the agreement with Prosser, Inc. was approved.

SIXTH ORDER OF BUSINESS	Consideration	of	Proposal	from	
	VGlobalTech	for	ADA	Website	
	Accessibility				
Mr. Perry stated we are in the process statewide of adjusting websites to make sure that

they are in compliance with ADA requirements. This is a proposal for that. The fee for setting

up the website is $1,750 and then there is an ongoing fee for that. These rates are pretty

standard. We contacted three firms and this one is right in line with the rates.

Mr. Sessions asked do we have to have two separate websites for the two CDDs?

Mr. Perry responded yes.

 On MOTION by Mr. Sessions seconded by Mr. Thomas with all in  favor the proposal from VGlobalTech was approved.

NINTH ORDER OF BUSINESS	Staff Reports

A.	District Counsel

There being none, the next item followed.

B.	District Engineer

There being none, the next item followed.

C.	District Manager

There being none, the next item followed.

2

September 12, 2018	Rivers Edge II CDD

D.	Amenity Manager - Report

A copy of the amenity manager’s report was included in the agenda package.

E.	Operations Manager - Report

A copy of the operations manager’s report was included in the agenda package.

EIGHTH ORDER OF BUSINESS	Consideration of Funding Request No. 2

A copy of the funding request in the amount of $115,948.57 was included in the agenda package.

 On MOTION by Mr. Sessions seconded by Mr. Cowling with all  in favor Funding Request No. 2 was approved.

NINTH ORDER OF BUSINESS	Supervisors’   Requests   and   Audience

Comments
Ms. Nitza Cochran, 119 Edisto Place, stated I went to the playground recently and it

was fairly hot and the slides were not usable. I was wondering if there was a way to put a canopy there to shade it?

Mr. Sessions responded yes a canopy can be added. It wasn’t contemplated originally but there may be some additional features that are added in the future and we will take that into
consideration.

TENTH ORDER OF BUSINESS	Next Scheduled Meeting – October 17, 2018

at 10:30 a.m. at the RiverTown Amenity
Center
Mr. Perry stated the next meeting is going to be October 17th at 10:00 a.m.

Mr. Sessions stated we had talked about moving these up half an hour and doing them at 10:30. I’d like to do that if we can.
Mr. Perry stated also keep in mind if we have a very light agenda and there are no items that require board action we will cancel meetings. Our next meeting will be October 17th at 10:30 a.m.

 On MOTION by Mr. Sessions seconded by Mr. Cowling with all  in favor a change in meeting times to 10:30 a.m. was approved.

3

September 12, 2018	Rivers Edge II CDD

ELEVENTH ORDER OF BUSINESS	Adjournment

 On MOTION by Mr. Sessions seconded by Mr. Thomas with all  in favor the Meeting was adjourned.

______________________________	_____________________________

Secretary/Assistant Secretary	Chairman/Vice Chairman

4

EIGHTH ORDER OF BUSINESS

D.

Amenities Manager Report

Date of report: 10/17/18	Submitted by: Jason Davidson

RiverClub update / No Board action required: Usage - 2740

Still working diligently to get all residents entered into the access control system, if you have not submitted your forms please do so along with a family photo to rivertownamenities@gmail.com. Or stop by the amenities office at the RiverClub during our office hours.

EVENTS UPDATE:

Ladies Pot Luck

RiverTown Ladies meet up once per month and share their delicious dishes! This month the group grew to 18.

Mad Science

Mad Science out of Orlando visited RiverTown featuring interactive science booths, a walk around scientist and a science show! Plus, all the kids made slime! 370-400 attended this event. Many kids visited the booths more than once. The walk around scientist was so popular she had a hard time moving as kids were following her everywhere! Bonus-the science show had a lot of audience participation!

Princess Party

This was a volunteer party thrown by the APO Chapter of Jacksonville University, a performing arts fraternity, to fulfill their non-profit commitment. Chapter members performed songs from Disney princess movies. APO also partnered with Girly Girl Partea’s to bring Disney princesses to RiverTown along with princess crafts and face painting! 125-150 attended this event.

Captain Character

Captain Character visited the RiverClub Café for a fun kid’s night! Captain Character did face painting, balloon twisting and cotton candy! 100-125 attended this event. Kids loved Captain Character so much he had to stay 30 minutes past his end time to see everyone! Many parents commented on what wonderful things we do for the kids in RiverTown!

Community Garden Grand Opening

A ribbon cutting was held to officially open the community garden! Gardening expert, The Man in Overalls, joined as well to demonstrate how to plant crops in a plot. 15 attended this event. Residents then came together and rented plots to garden! Currently 6 plots are rented.

Jaguar Tailgate Party

Go Jags! A party at the RiverClub was held during a Jaguars game. Residents enjoyed airbrush tattoos, obstacle course and a quarterback challenge. 170-200 attended this event. Fun was had by both kids and adults! Plus, the Jags won!

October Events: Food Truck Friday, Meet the CDD Candidates, 80s Party, Ladies Pot Luck, Men’s Social, Adult Night, Fall Festival, Spooktacular 5K. New fitness class: Revel Fitness plus the karate program starts.

ACTION ITEMS: no action items currently

Should you have any comments or questions feel free to contact me directly! jdavidson@vestapropertyservices.com

E.

Field Operation Manager’s Report

Date of report: 9/5/2018	Submitted by: Robert Beladi

RIVERHOUSE AMENITY UPDATE:

•	Fixed broken bricks by tennis courts

•	Painted all hand rails

•	Replaced contacts on down tennis court lights

RIVERClUB AMENITY UPDATE:

•	Added a step and drainage leading to pool equipment

•	Removed dead oak in front of RC

•	Added sod around new drainage

RIVERPARK AMENITY UPDATE:

•	Mowing is complete

•	Fixed broken wall from accident

•	Added millings to bike trails

COMMON GROUNDS:

•	Power washed street lights and signage through landings and Main street

•	Filled all beds in community garden with organic compost

•	Power Washed sidewalks and benches at Main Street park

LANDSCAPE REPORT:

Landscape Maintenance Report Week 1

Completed

1.	Floral rotation and change out for all of the annual beds.

2.	Repairs made to accident damage in the Round-A-Bout from 9-27-18.

3.	Repairs made to St. Augustine damaged in Homestead from a large truck.

4.	Reduced the height of the sports field utilizing reel mowing.

5.	Multiple irrigation repairs and inspections throughout the property.

6.	Proposals for the following:

•	Tree Work at the Estate Lots

•	Tree Work at the River Club

•	Jasmine removal and replacement at the entrance adjacent to Longleaf Pine.

•	Sod replacement for the Round-A-Bout on Orange Blossom Trail

•	Oak Replacement for the pond embankment in Lakes 1

•	Bed enhancement in front of the River Club; where the large Oak was removed.

•	Drainage issue near the boardwalk entrance on the Northside of the River Club property.

7.	Full mowing service for all areas scheduled week 1; including the Riverfront Park that had not been mowed in a few months.

8.	Extensive weed removal in beds throughout the community but our focus is on high profile areas like entrances, River Club, River House, intersections, and major Thorofare’s like Orange Blossom.

9.	Application for Torpedo grass in the Bermuda in front of the River House and Round-A-Bouts.

10.	Application for weeds in the Dog Park and sports field.

11.	Application for Mole Crickets in front of the River House.

12.	Application for Chinch Bug on Lakes 1 slopes to the ponds.

13.	Application for Sod Webworm on the St. Augustine around the Round-A-Bout on Orange Blossom Trail.

POND SERVICE REPORT:

CR 244

•	Pond 1 treated for torpedo grass

•	Pond 2 treated for torpedo grass

•	Pond 3 Perimeter vegetation decaying from previous treatment

•	Pond 4 Treated vegetation around pond

•	Pond 5 Treated torpedo grass and alligator weed.

•	Pond 7 Treated algae around entire pond

•	Pond 8 Treated torpedo grass RiverTown

•	Pond A treated for alligator weed

•	Pond E treated torpedo grass, no algae noticed

•	Pond C treated alligator weed and torpedo grass, no algae noticed

•	Pond B perimeter vegetation decaying, pond is in good condition

•	Pond G Perimeter grasses are decaying, this will cause algae to form around edge of pond

•	Pond K Treated algae around both ends of pond

•	Pond H Treated algae around edge of pond, removed small amount of trash

•	Pond D Treated lily pads and cleaned outflow structure

•	Pond I Treated algae and perimeter vegetation. Removed small amount of trash.

•	Pond J Treated algae and perimeter weeds around pond, removed trash from water.

•	Pond L Sprayed perimeter vegetation and removed trash.

•	Pond M Treated algae, water level to high to treat perimeter.

•	Pond Q Treated pond with gator, easement to wet for truck/boat.

•	Pond R Removed trash from water, treated perimeter for torpedo grass.

•	Pond S Treated algae Charra and cattails around pond.

•	Pond T Treated torpedo grass and algae.

•	Pond U Treated algae charra and picked up trash from water.

•	Pond V Treated algae and removed trash from water.

Continued efforts in establishing a high quality maintenance program, that will help minimize unnecessary project expenses and allow us to focus more heavily on the detail and overall aesthetic appeal, thus fulfilling the overall expectations of the existing, new, and future residents of RiverTown

Should you have any comments or questions feel free to contact me directly rbeladi@vestapropertyservices.com

NINTH ORDER OF BUSINESS

A.

Rivers Edge II

Community Development District

Unaudited Financial Reporting

September 30, 2018

Rivers Edge II

Community Development District

Combined Balance Sheet

September 30, 2018

	General		
Assets:	$116,049		
Cash			
Due From General Fund	---		
Assessment Receivable	---		
Prepaid Expenses	---		
Total Assets			
	$116,049		
Liabilities:			
	$115,699		
Accounts Payable			
Due to Debt Service	---		
Due to Capital Reserve	---		
Fund Balances:	---		
Nonspendable			
Restricted for Debt Service	---		
Unassigned	$350		
Total Liabilities and Fund Equity			
	$116,049		

Page 1

Rivers Edge II

Community Development District

Statement of Revenues & Expenditures

For The Period Ending September 30, 2018

		PRORATED			
	ADOPTED	BUDGET	ACTUAL		
Description	BUDGET	THRU 9/30/18	THRU 9/30/18	VARIANCE	
Revenues:					
Developer Contrubutions	$48,150	$48,150	$115,949	$67,799	
Miscellaneous Income	$0	$0	$100	$100	
					
Total Revenues	$48,150	$48,150	$116,049	$67,899	
Expenditures					
Administrative					
Engineering	$3,750	$3,750	$12,638	($8,888)	
Attorney	$5,000	$5,000	$2,989	$2,012	
Annual Audit	$5,000	$5,000	$0	$5,000	
Management Fees	$11,250	$11,250	$11,000	$250	
Information Technology	$300	$300	$0	$300	
Telephone	$100	$100	$0	$100	
Postage	$375	$375	$0	$375	
Printing & Binding	$250	$250	$727	($477)	
Insurance	$3,000	$3,000	$0	$3,000	
Legal Advertising	$3,500	$3,500	$0	$3,500	
Other Current Charges	$200	$200	$52	$148	
Office Supplies	$250	$250	$0	$250	
Dues, Licenses & Subscriptions	$175	$175	$0	$175	
Website design/compliance	$15,000	$15,000	$0	$15,000	
					
Total Administrative	$48,150	$48,150	$27,406	$20,744	
Field Operations					
Facility Manager/Lifestyle Director	$0	$0	$15,745	($15,745)	
Facility Staff	$0	$0	$15,561	($15,561)	
Community Maintenance Staff	$0	$0	$6,991	($6,991)	
Field Operations Manager	$0	$0	$7,755	($7,755)	
Common Grounds Maintenance	$0	$0	$7,668	($7,668)	
Landscape Maintenance	$0	$0	$13,360	($13,360)	
Pool Maintenance	$0	$0	$5,341	($5,341)	
Refuse	$0	$0	$428	($428)	
Special Event	$0	$0	$853	($853)	
Office Supplies	$0	$0	$70	($70)	
Janatorial Services	$0	$0	$7,315	($7,315)	
Café & Other Expenses	$0	$0	$5,475	($5,475)	
Repairs and Replacements	$0	$0	$1,733	($1,733)	
					
Total Field Operations	$0	$0	$88,292	($88,292)	
					
Total Expenditures	$48,150	$48,150	$115,699	($67,549)	
					
Excess Revenues/Expenses	$0		$350		
					
Fund Balance - Beginning	$0		$0		
					
Fund Balance - Ending	$0		$350		

Rivers Edge II

Community Development District

General Fund

Month By Month Income Statement

Fiscal Year 2018

11

		October	November	December	January	February	March	April	May	June	July	August	September	Total		
Revenues:		$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$115,949	$115,949		
Developer Contributions															
Miscellaneous Income	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$100	$100		
Total Revenues																
		$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$116,049	$116,049		
Expenditures:															
Administrative	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$12,638	$12,638		
Engineering															
Attorney	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$2,989	$2,989		
Annual Audit	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0		
Management Fees	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$11,000	$11,000		
Information Technology	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0		
Telephone	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0		
Postage	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0		
Printing & Binding	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$727	$727		
Insurance	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0		
Legal Advertising	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0		
Other Current Charges	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$52	$52		
Office Supplies	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0		
Dues, Licenses & Subscriptions	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0		
Website design/compliance	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0		
Total Administrative																
		$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$27,406	$27,406		
Field Operations															
Facility Manager/Lifestyle Director	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$15,745	$15,745		
Facility Staff	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$15,561	$15,561		
Community Maintenance Staff	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$6,991	$6,991		
Field Operations Manager	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$7,755	$7,755		
Common Grounds Maintenance	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$7,668	$7,668		
Landscape Maintenance	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$13,360	$13,360		
Pool Maintenance	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$5,341	$5,341		
Refuse	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$428	$428		
Special Event	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$853	$853		
Office Supplies	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$70	$70		
Janatorial Services	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$7,315	$7,315		
Café & Other Expenses	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$5,475	$5,475		
Repairs and Replacements	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$1,733	$1,733		
Total Field Operations																
		$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$88,292	$88,292		
Total Expenditures																
		$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$115,699	$115,699		
Excess Revenues (Expenditures)																
		$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$350	$350		

B.