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Agenda 10/12/2020 Cedar Hammock Community Development District Board of Supervisors Norman Day,Chairman Justin Faircloth,District Manager Quentin Greeley,Vice Chairman Sam Marshall,District Engineer Fred Bally,Assistant Secretary Dan Cox,District Counsel John Martino,Assistant Secretary Gene T.Bolton,Assistant Secretary Meeting Agenda Cedar Hammock Clubhouse 8660 Cedar Hammock Boulevard, Naples, Florida October 12, 2020—2:00 p.m. 1. Roll Call 2. Approval of Agenda 3. Public Comments on Agenda Items 4. Old Business A. Bulkhead&Bridge Repair/Replacement Project Update 5. New Business 6. Attorney's Report 7. Engineer's Report A. Cardno Quarter 2 Water Use Compliance Report 8. Manager's Report A. Approval of the Minutes of September 8, 2020 Meeting B. Acceptance of the August 2020 Financial Report C. Acceptance of the Fiscal Year 2020 Audit Engagement Letter D. Field Management Report E. Follow Up Items 9. Supervisors Requests 10.Audience Comments 11. Adjournment Next scheduled meeting: November 9, 2020 @ 2:00 p.m. 1 �._ PART Of THE USA TODAY NETWORK Published Daily Naples, FL 34110 CEDAR HAMMOCK COMMUN ITY 210 N UNIVERSITY DR#702 CORAL SPRINGS, FL 33071-7320 Affidavit of Publication STATE OF WISCONSIN COUNTY OF BROWN Before the undersigned they serve as the authority, personally appeared said legal clerk who on oath says that he/she serves as Legal Clerk of the Naples Daily News, a daily newspaper published at Naples, in Collier County, Florida; distributed in Collier and Lee counties of Florida; that the attached copy of the advertising was published in said newspaper on dates listed. Affiant further says that the said Naples Daily News is a newspaper published at Naples, in said Collier County, Florida, and that the said newspaper has heretofore been continuously published in said Collier County, Florida; distributed in Collier and Lee counties of Florida, each day and has been entered as second class mail matter at the post office in Naples, in said Collier County, Florida, for a period of one year next preceding the first publication of the attached copy of advertisement; and affiant further says that he has neither paid nor promised any person, or corporation any discount, rebate, commission or refund for the purpose of securing this advertisement for publication in the said newspaper. Published: 09/01/2020 Subscribed and sworn to before on September 1,2020: Notary,State of WI,County of Brown TARA MONDLOCH Notary Public State of Wisconsin My commission expires August 6,2021 Publication Cost:$381.50 Ad No:0004353016 Customer No: 1304217 PO#: Cedar Hammock fy2021 mtgs #of Affrdavits1 This is not an invoice Notice of Meetings Cedar Hammock Community Development District The Board of Supervisors of the Cedar Hammock Com- munity Development District will hold their meetings for Fiscal Year 2021 at the Cedar Hammock Clubhouse*, 8660 Cedar Hammock Boulevard, Naples, Florida at 2:00 p.m.on the second Monday of the fol- lowing months: September 8,2020—special meeting of FY2020 October 12,2020 November 9,2020 December 14,2020 January 11,2021 February 8,2021 March 8,2021 April 12,2021 May 10,2021 *Please note that pursuant to Governor DeSantis' Executive Order 20-69 (as extended by Executive Order 20-150 and as it may be further extended or amended) relating to the COVID-19 public health emer- gency and to protect the pub- lic and follow the CDC guid- ance regarding social distancing, such public hear- ing and meeting may be held teephonically, virtually, or at another location in the event the above location is not available. Please check the District's website for the latest information: www.cedarham mockcdd.com. Or you may contact the District Manage- ment Company, lnframark, LLC at 954-603-0033 at least two(2) calendar days prior to the date of the meetings or if you are hearing or speech im- paired, please contact the Florida Relay Service at 7.1.1 or (800) 955-8771 (TTY)/(800) 955-8770 (Voice) for aid in contacting the District Man- agement Company, for in- structions on how to join the meeting. The meetings are open to the public and will be conducted In accordance with the provi- sion of Florida Law for Com- munity Development Districts. Meetings may be continued to a date, time and location to be specified on the record at the meetings. There may be occasions when one or more Supervisors will participate via telephone. In accordance with the provi- sions of the Americans with Disabilities Act, any person re- quiring special accomrroda• Lions at these meetings be- cause of a disability or physi- cal impairment should contact the District Management Company, Inframark, LLC at 954-603-0033 at least two (2) calendar days prior to the date of the meetings. If you are hearing or speech im- paired, please contact the Florida Relay Service at 7-1-1 or (800) 955-8771 (TT01(S00) 955-8770 (Voice) for aid in contacting the District Man- agement Company. Each person who decides to appeal any action taken at these meetings is advised that person will need a record of the proceedings and accord- ingly, the person may need to ensure a verbatim record of the proceedings is made, in- et,Jinn the terrimnnu and avi- dence upon which such ap- peal is to be based. Justin Faircloth District Manager Pub Date: Sept 1, 20:?0 #4353016 CEDAR HAMMOCK Community Development District Financial Report August 31, 2020 (Unaudited) Prepared by: INFRAMARK CEDAR HAMMOCK Community Development District Table of Contents FINANCIAL STATEMENTS Pages Balance Sheet 1 General Fund 2-3 General Fund-Bulkhead/Bridge Restoration Fund 4 Assigned Reserves 5 SUPPORTING SCHEDULES Non-Ad Valorem Special Assessments 6 Cash and Investment Report 7 Valley National Bank Reconciliation 8 Check Register 9 CEDAR HAMMOCK Community Development District Financial Statements (Unaudited) August 31, 2020 CEDAR HAMMOCK Community Development District Governmental Funds Balance Sheet August 31, 2020 GF- BULKHEAD AND BRIDGE GENERAL RESTORATION ACCOUNT DESCRIPTION FUND FUND TOTAL ASSETS Cash-Checking Account $ 418,395 $ - $ 418,395 Due From Other Funds - 248,362 248,362 Investments: Money Market Account 214,832 - 214,832 Deposits 1,359 - 1,359 TOTAL ASSETS $ 634,586 $ 248,362 $ 882,948 LIABILITIES Accounts Payable $ 9,608 $ 9,600 $ 19,208 Accrued Expenses 600 - 600 Due To Other Funds 248,362 - 248,362 TOTAL LIABILITIES 258,570 9,600 268,170 FUND BALANCES Nonspendable: Deposits 1,359 - 1,359 Assigned to: Operating Reserves 108,140 - 108,140 Unassigned: 266,517 238,762 505,279 TOTAL FUND BALANCES $ 376,016 $ 238,762 $ 614,778 TOTAL LIABILITIES&FUND BALANCES $ 634,586 $ 248,362 $ 882,948 Page 1 CEDAR HAMMOCK Community Development District General Fund Statement of Revenues, Expenditures and Changes in Fund Balances For the Period Ending August 31,2020 ANNUAL ADOPTED YEAR TO DATE YEAR TO DATE VARIANCE($) ACCOUNT DESCRIPTION BUDGET BUDGET ACTUAL FAV(UNFAV) REVENUES Interest-Investments $ 10,088 $ 9,261 $ 15,425 $ 6,164 Hurricane Irma FEMA Refund - - 1,082 1,082 Interest-Tax Collector - - 870 870 Special Assmnts-Tax Collector 158,454 158,454 157,424 (1,030) SpecialAssmnts-Other 281,622 281,622 281,560 (62) Special Assmnts-Discounts (17,603) (17,603) (16,029) 1,574 Other Miscellaneous Revenues - - 17,875 17,875 TOTAL REVENUES 432,561 431,734 458,207 26,473 EXPENDITURES Administration ProfServ-Engineering 30,000 27,500 21,080 6,420 ProfServ-Legal Services 4,249 3,895 7,275 (3,380) ProfServ-Mgmt Consulting Sery 39,555 36,259 36,829 (570) ProfServ-Property Appraiser 6,601 6,601 5,693 908 ProfServ-Special Assessment 3,029 3,029 13,029 (10,000) ProfServ-Web Site Maintenance 676 620 531 89 Auditing Services 5,000 5,000 5,000 - Postage and Freight 900 825 928 (103) Insurance-General Liability 7,700 7,700 7,200 500 Printing and Binding 2,379 2,168 547 1,621 Legal Advertising 2,394 2,195 3,931 (1,736) Misc-Bank Charges 700 642 - 642 Misc-Assessmnt Collection Cost 8,802 8,802 8,363 439 Misc-Web Hosting 246 246 2,928 (2,682) Office Supplies 400 367 2,800 (2,433) Annual District Filing Fee 175 175 175 - Total Administration 112,806 106,024 116,309 (10,285) Page 2 CEDAR HAMMOCK Community Development District General Fund Statement of Revenues, Expenditures and Changes in Fund Balances For the Period Ending August 31,2020 ANNUAL ADOPTED YEAR TO DATE YEAR TO DATE VARIANCE($) ACCOUNT DESCRIPTION BUDGET BUDGET ACTUAL FAV(UNFAV) Field ProfServ-Field Management 1,585 1,453 4,071 (2,618) Contracts-Water Mgmt Services 7,200 6,600 6,600 - Utility-Cameras 1,268 1,162 1,201 (39) Electricity-Wells 3,000 2,750 3,111 (361) Electricity-Aerator 2,000 1,833 1,062 771 R&M-Lake 3,000 2,750 - 2,750 R&M-Plant Replacement 3,015 2,764 - 2,764 R&M Bulkheads 8,000 7,333 2,575 4,758 R&M-Bridges&Cart Paths 8,000 7,333 - 7,333 Misc-Contingency 12,243 11,223 24,274 (13,051) Capital Outlay 9,944 9,115 6,630 2,485 Reserve-Bridges 35,000 35,000 154,036 (119,036) Reserve-Bulkheads 95,500 95,500 451,110 (355,610) Reserve-Lakes 25,000 25,000 72,153 (47,153) Reserve-Roadways 105,000 105,000 105,000 - Total Field 319,755 314,816 831,823 (517,007) TOTAL EXPENDITURES 432,561 420,840 948,132 (527,292) Excess(deficiency)of revenues Over(under)expenditures - 10,894 (489,925) (500,819) Net change in fund balance $ - $ 10,894 $ (489,925) $ (500,819) FUND BALANCE,BEGINNING(OCT 1,2019) 865,941 865,941 865,941 FUND BALANCE,ENDING $ 865,941 $ 876,835 $ 376,016 Page 3 CEDAR HAMMOCK Community Development District Gf-Bulkhead And Bridge Restoration Fund Statement of Revenues, Expenditures and Changes in Fund Balances For the Period Ending August 31, 2020 ANNUAL ADOPTED YEAR TO DATE YEAR TO DATE VARIANCE($) ACCOUNT DESCRIPTION BUDGET BUDGET ACTUAL FAV(UNFAV) REVENUES Interest-Investments $ - $ - $ - $ - Special Assmnts-Tax Collector 1,166,613 1,166,613 1,166,353 (260) Special Assmnts-Discounts P (46,665) (46,665) (42,589) 4,076 TOTAL REVENUES 1,119,948 1,119,948 1,123,764 3,816 EXPENDITURES Administration ProfServ-Property Appraiser 17,499 17,499 - 17,499 Misc-Assessmnt Collection Cost 23,332 23,332 22,221 1,111 Total Administration 40,831 40,831 22,221 18,610 Field Capital Outlay-Bulkheads 1,079,117 989,191 1,200,668 (211,477) Total Field 1,079,117 989,191 1,200,668 (211,477) TOTAL EXPENDITURES 1,119,948 1,030,022 1,222,889 (192,867) Excess(deficiency)of revenues Over(under)expenditures - 89,926 (99,125) (189,051) OTHER FINANCING SOURCES(USES) Loan/Note Proceeds 500,000 500,000 337,886 (162,114) Contribution to(Use of)Fund Balance 500,000 TOTAL FINANCING SOURCES(USES) 1,000,000 500,000 337,886 (162,114) Net change in fund balance $ 500,000 $ 589,926 $ 238,761 $ (351,165) FUND BALANCE,BEGINNING(OCT 1,2019) 1 - 1 FUND BALANCE,ENDING $ 500,001 $ 589,926 $ 238,762 Page 4 CEDAR HAMMOCK Community Development District All Funds Assigned Reserves RESERVES PRIOR YEAR FY20 BUDGET TOTAL FY20 EXPENSES BALANCE Reserves- Bridges $ 119,036 $ 35,000 $ 154,036 $ 154,036 $ - Reserves- Bulkheads $ 355,610 $ 95,500 $ 451,110 $ 451,110 $ - Reserves- Lakes $ 47,153 $ 25,000 $ 72,153 $ 72,153 $ - Reserves- Roadways $ - $ 105,000 $ 105,000 $ 105,000 $ - Total $ 521,799 $ 260,500 $ 782,299 $ 782,299 $ - Report Date:9/10/2020 Page 5 CEDAR HAMMOCK Community Development District Supporting Schedules August 31, 2020 CEDAR HAMMOCK Community Development District Non-Ad Valorem Special Assessments (Collier County Tax Collector-Monthly Collection Distributions) For the Fiscal Year Ending September 30,2020 ALLOCATION General Fund Bulkhead/Bridge Date Net Amount (Discount) Commission Amount 001 Reserve Study Restoration Fund Received Received Amount Amount Received Assessments Assessments Assessments Assessments Levied For FY2020 $1,605,694 $ 157,459 $ 281,622 $ 1,166,613 Allocation % 100% 10% 18% 73% 10/31/19 $ 9,032 $ 516 $ 184 $ 9,732 $ 954 $ 1,707 $ 7,071 11/15/19 143,690 6,109 2,932 152,732 14,977 26,788 110,967 11/26/19 429,180 18,247 8,759 456,186 44,735 80,010 331,441 12/13/19 714,885 30,166 14,589 759,640 74,492 133,233 551,914 12/27/19 38,927 1,229 794 40,950 4,016 7,182 29,752 01/17/20 63,926 1,810 1,305 67,040 6,574 11,758 48,708 02/20/20 42,520 824 868 44,212 4,336 7,754 32,122 03/23/20 17,626 121 2 17,749 1,741 3,113 12,896 04/28/20 42,783 - 873 43,656 4,281 7,657 31,718 06/05/20 3,423 (102) 70 3,391 333 595 2,464 06/15/20 10,143 (301) 207 10,048 985 1,762 7,300 TOTAL $ 1,516,135 $ 58,618 $ 30,584 $ 1,605,337 $ 157,424 $ 281,559 $ 1,166,353 %COLLECTED 99.98% 99.98% 99.98% 99.98% TOTAL OUTSTANDING $ 357 $ 35 I $ 63 $ 260 Report Date:9/10/2020 Page 6 CEDAR HAMMOCK Community Development District All Funds Cash and Investment Report August 31, 2020 General Fund Account Name Bank Name Investment Type Maturity Yield Balance Checking Account-Operating Valley National Bank Gov't Interest Checking n/a 0.25% 418,395 Money Market Account BankUnited Public Funds MMA n/a 0.30% 214,832 Total $ 633,226 Report Date:9/9/2020 Page 7 Cedar Hammock CDD Bank Reconciliation Bank Account No. 2555 Valley National Bank GF Statement No. 8/20 Statement Date 8/31/2020 G/L Balance(LCY) 418,395.47 Statement Balance 425,898.80 G/L Balance 418,395.47 Outstanding Deposits 0.00 Positive Adjustments 0.00 Subtotal 425,898.80 Subtotal 418,395.47 Outstanding Checks 7,503.33 Negative Adjustments 0.00 Differences 0.00 Ending G/L Balance 418,395.47 Ending Balance 418,395.47 Difference 0.00 Posting Document Document Cleared Date Type No. Description Amount Amount Difference Outstanding Checks 4/22/2020 Payment 2429 A QUALITY PLANT 5,333.33 0.00 5,333.33 8/27/2020 Payment 2472 BANKS ENGINEERING INC 1,850.00 0.00 1,850.00 8/27/2020 Payment 2474 NEW IQ 320.00 0.00 320.00 Total Outstanding Checks 7,503.33 7,503.33 Page 8 O N Q O Co 0 o N Co M o Q N m 0 o N o o n p) N N O l0 N O N O N N tp O Q tp W C Co p Op O r N oi m ei Nw N Co N N 0) V 0 r �G O Q co Q N .O w w M w fA w w O O m op p '7, w w w w w w EE a Z; ww w Loi w ww n w w w 72 'o a.c0i .2m 8 n 2 $ 8 n 0 M M m 8 2, 2, m 8 m 8i rn j H N N N N N N ,2 .2 N "2 N i "2 "2 G N N N N 'TO' '2Q O O O Tr mS ,- .- Er S O - 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U U W ry Z ¢ Z O Z Q 0)) 0 Z Z O n W a X z z U U U U U U U U F W Z W N W x W N J J J J J J J J H W W W z o Z a70 OU Y Y Y Y Y Y U. Z J Z J Z . F Z . K K K K K K K U z 7 W 2 0 m a a a a a a a a a U U U U W W CO'1 W = Y Z Z tjj 3 a a a a p ZZQY w ZZQ ui Y a cl- c. pa 0 Z Z Z Z Z Z Z Z Z LL e_ , LL m COC.D 0 r O N N N N N N N N N N N N N N N 0 N N N N w 0 M ' 0 0 0 0 0 0 0 0 O O r iV Q O Z M O r O , O N O O O O N o 0 0 2, 0 0 0 W N M Q - ` GO 'W Z ; ; ; ; ; : : ; ; ; : : : ; 0i0ui0 0 a0Q0 0 j N a 0 W m d Z 0 0 0 0 0 0 0 0 0 0 0 0 8 0 0 0 0 00 0 0 0 0 LL z D o 0 0 0 0 0 0 0 0 0 0 D 0 0 0 0 ctc Berger, Toombs, Elam, - Gaines & Frank Certified Public Accountants PL 600 Citrus Avenue Suite 200 Fort Pierce,Florida 34950 772/461-6120//461-1155 FAX: 772/468-9278 August 12, 2020 Cedar Hammock Community Development District c/o Inframark Infrastructure Management Services 210 North University Drive, Suite 702 Coral Springs, FL 33071 The Objective and Scope of the Audit of the Financial Statements You have requested that we audit the financial statements of Cedar Hammock Community Development District, which comprise governmental activities, a discretely presented component unit and each major fund for the General Fund as of and for the year ended September 30, 2020 which collectively comprise the basic financial statements. We are pleased to confirm our acceptance and our understanding of this audit engagement by means of this letter for the year ending September 30, 2020 and thereafter for two annual renewals if mutually agreed by Cedar Hammock Community Development District and Berger, Toombs, Elam, Gaines, & Frank, Certified Public Accountants, PL. Our audit will be conducted with the objective of expressing an opinion on the financial statements. The Responsibility of the Auditor We will conduct the audit in accordance with auditing standards generally accepted in the United States of America and "Government Auditing Standards" issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. Because of the inherent limitations of an audit, together with the inherent limitations of internal control, an unavoidable risk that some material misstatements may not be detected exists, even though the audit is properly planned and performed in accordance with generally accepted auditing standards. Also, an audit is not designed to detect errors or fraud that are immaterial to the financial statements. Fort Pierce/Stuart Member AICPA Member AICPA Division for CPA Firms Member FICPA Private Companies practice Section aBerger,Toombs, Elam, %} Gaines& Frank Csnlfed Public Kwunann Pt Cedar Hammock Community Development District August 12, 2020 Page 2 In making our risk assessments, we consider internal control relevant to Cedar Hammock Community Development District's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. However, we will communicate to you in writing concerning any significant deficiencies or material weaknesses in internal control relevant to the audit of the financial statements that we have identified during the audit. We will also communicate to the Board any fraud involving senior management and fraud that causes a material misstatement of the financial statements that becomes known to us during the audit, and any instances of noncompliance with laws and regulations that we become aware of during the audit. The funds that you have told us are maintained by Cedar Hammock Community Development District and that are to be included as part of our audit are listed below: 1. General Fund Ectt Berger,Toombs, Elam, -•CP Gaines& Frank @nilei Public Accuund, Pl Cedar Hammock Community Development District August 12, 2020 Page 3 The Responsibilities of Management and Identification of the Applicable Financial Reporting Framework Our audit will be conducted on the basis that management acknowledges and understands that it has responsibility: 1. For the preparation and fair presentations of the financial statements in accordance with accounting principles generally accepted in the United States of America; 2. To evaluate subsequent events through the date the financial statements are issued or available to be issued, and to disclose the date through which subsequent events were evaluated in the financial statements. Management also agrees that it will not evaluate subsequent events earlier than the date of the management representation letter referred to below; 3. For the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error; and 4. To provide us with: a. Access to all information of which management is aware that is relevant to the preparation and fair presentation of the financial statements such as records, documentation and other matters; b. Additional information that we may request from management for the purpose of the audit; and c. Unrestricted access to persons within the entity from whom we determine it necessary to obtain audit evidence. As part of our audit process, we will request from management written confirmation concerning representations made to us in connection with the audit, including among other items: 1. That management has fulfilled its responsibilities as set out in the terms of this letter; and 2. That it believes the effects of any uncorrected misstatements aggregated by us during the current engagement and pertaining to the latest period presented are immaterial, both individually and in the aggregate, to the financial statements taken as a whole. Cer Berger,Toombs, Elam, -} Gaines& Frank CerfeJ PublicAccuundnn Pl Cedar Hammock Community Development District August 12, 2020 Page 4 Management is responsible for identifying and ensuring that Cedar Hammock Community Development District complies with the laws and regulations applicable to its activities, and for informing us about all known material violations of such laws or regulations. In addition, management is responsible for the design and implementation of programs and controls to prevent and detect fraud, and for informing us about all known or suspected fraud affecting the entity involving management, employees who have significant roles in internal control, and others where the fraud could have a material effect on the financial statements. Management is also responsible for informing us of its knowledge of any allegations of fraud, or suspected fraud affecting the entity received in communications from employees, former employees, analysts, regulators, or others. The Board is responsible for informing us of its views about the risks of fraud within the entity, and its knowledge of any fraud, or suspected fraud affecting the entity. Cedar Hammock Community Development District agrees that it will not associate us with any public or private securities offering without first obtaining our consent. Therefore, Cedar Hammock Community Development District agrees to contact us before it includes our reports or otherwise makes reference to us, in any public or private securities offering. Because Berger, Toombs, Elam, Gaines & Frank will rely on Cedar Hammock Community Development District and its management and Board of Supervisors to discharge the foregoing responsibilities, Cedar Hammock Community Development District holds harmless and releases Berger, Toombs, Elam, Gaines & Frank, its partners, and employees from all claims, liabilities, losses and costs arising in circumstances where there has been a known misrepresentation by a member of Cedar Hammock Community Development District's management, which has caused, in any respect, Berger, Toombs, Elam, Gaines & Frank's breach of contract or negligence. This provision shall survive the termination of this arrangement for services. Records and Assistance If circumstances arise relating to the condition of the Cedar Hammock Community Development District's records, the availability of appropriate audit evidence, or indications of a significant risk of material misstatement of the financial statements, because of error, fraudulent financial reporting, or misappropriation of assets, which, in our professional judgment, prevent us from completing the audit or forming an opinion, we retain the unilateral right to take any course of action permitted by professional standards, including: declining to express an opinion, issuing a report, or withdrawing from engagement. During the course of our engagement, we may accumulate records containing data that should be reflected in the Cedar Hammock Community Development District's books and records. The District will determine that all such data, if necessary, will be so reflected. Accordingly, the District will not expect us to maintain copies of such records in our possession. cec} Berger,Toombs, Elam, Gaines& Frank Csmfmd WNICAcwunhnh PL Cedar Hammock Community Development District August 12, 2020 Page 5 The assistance to be supplied, including the preparation of schedules and analyses of accounts, will be discussed and coordinated with an Inframark accountant. The timely and accurate completion of this work is an essential condition to our completion of the audit and issuance of our audit report. Other Relevant Information In accordance with Government Auditing Standards, a copy of our most recent peer review report has been provided to you, for your information. Fees, Costs, and Access to Workpapers Our fees for the services described above are based upon the value of the services performed and the time required by the individuals assigned to the engagement, plus direct expenses. Invoices for fees will be submitted in sufficient detail to demonstrate compliance with the terms of this engagement. Billings are due upon submission. Our fee for the services described in this letter for the year ending September 30, 2020 will not exceed $5,000, unless the scope of the engagement is changed,the assistance which Cedar Hammock Community Development District has agreed to furnish is not provided, or unexpected conditions are encountered, in which case, we will discuss the situation with you before proceeding. All other provisions of this letter will survive any fee adjustment. The two annual renewals must be mutually agreed and approved by the Board of Supervisors. In the event we are requested or authorized by Cedar Hammock Community Development District or are required by government regulation, subpoena, or other legal process to produce our documents or our personnel as witnesses with respect to our engagement for Cedar Hammock Community Development District, Cedar Hammock Community Development District will, so long as we are not a party to the proceeding in which the information is sought, reimburse us for our professional time and expenses, as well as the fees and expenses of our counsel, incurred in responding to such requests. The audit documentation for this engagement is the property of Berger, Toombs, Elam, Gaines, & Frank and constitutes confidential information. However, you acknowledge and grant your assent that representatives of the cognizant or oversight agency or their designee, other government audit staffs, and the U.S. Government Accountability Office shall have access to the audit documentation upon their request and that we shall maintain the audit documentation for a period of at least three years after the date of the report, or for a longer period if we are requested to do so by the cognizant or oversight agency. rrrBerger,Toombs, Elam, -} Gaines& Frank Certified P,blkAuuunhne PL Cedar Hammock Community Development District August 12, 2020 Page 6 Information Security— Miscellaneous Terms Berger, Toombs, Elam, Gaines & Frank is committed to the safe and confidential treatment of Cedar Hammock Community Development District's proprietary information. Berger, Toombs, Elam, Gaines & Frank is required to maintain the confidential treatment of client information in accordance with relevant industry professional standards which govern the provision of services described herein. Cedar Hammock Community Development District agrees that it will not provide Berger,Toombs, Elam, Gaines& Frank with any unencrypted electronic confidential or proprietary information, and the parties agree to utilize commercially reasonable measures to maintain the confidentiality of Cedar Hammock Community Development District's information, including the use of collaborate sites to ensure the safe transfer of data between the parties. If any term or provision of this arrangement letter is determined to be invalid or unenforceable, such term or provision will be deemed stricken and all other terms and provisions will remain in full force and effect. Reporting We will issue a written report upon completion of our audit of Cedar Hammock Community Development District's financial statements. Our report will be addressed to the Board of Cedar Hammock Community Development District. We cannot provide assurance that an unmodified opinion will be expressed. Circumstances may arise in which it is necessary for us to modify our opinion, add an emphasis-of-matter or other-matter paragraph(s), or withdraw from the engagement. In addition to our report on Cedar Hammock Community Development District's financial statements, we will also issue the following types of reports: • Reports on internal control and compliance with laws, regulations, and the provisions of contracts or grant agreements. We will report on any internal control findings and/or noncompliance which could have a material effect on the financial statements; • Management letter required by the Auditor General, State of Florida; and • Attestation reports required by the Auditor General, State of Florida. This letter constitutes the complete and exclusive statement of agreement between Berger, Toombs, Elam, Gaines & Frank and Cedar Hammock Community Development District, superseding all proposals, oral or written, and all other communication, with respect to the terms of the engagement between the parties. e Berger,Toombs, Elam, rep Gaines & Frank CooWad hN4 Aanunvb n Cedar Hammock Community Development District August 12, 2020 Page 7 Please sign and return the attached copy of this letter to indicate your acknowledgement of, and agreement with, the arrangements for our audit of the financial statements including our respective responsibilities. 2:Or4007'110 C/O& )6atie.Jo) elf - /2 04,} Berger, Toombs, Elam. Gaines & Frank J. W. GAINES, CPA Confirmed on behalf of the addressee: 1 c11rrYtiv-4 q »1c , *Audit firm must comply with Senate Bill 664 regarding the use of E verify beginning 1/1/21. BAGGETT Judson B. Baggett II 6815 Dairy Road 11BI:4 MBA, CPA, CVA, Partner Zephyrhills, FL 33542 RE UTIMAN N Marci Reutimann ,, (813) 788-2155 &ASSOCIATES, CPAS. PA CPA, Partner g (813) 782-8606 Report on the Firm's System of Quality Control To the Partners October 30, 2019 Berger, Toombs, Elam, Gaines & Frank, CPAs, PL and the Peer Review Committee of the Florida Institute of Certified Public Accountants We have reviewed the system of quality control for the accounting and auditing practice of Berger,Toombs; Elam, Gaines & Frank, CPAs, PL, (the firm), in effect for the year ended May 31, 2019. Our peer review was conducted in accordance with the Standards for Performing and Reporting on Peer Reviews established by the Peer Review Board of the American Institute of Certified Public Accountants(Standards). A summary of the nature, objectives, scope, limitations of, and the procedures performed in a System Review as described in the Standards may be found at aicpa.org/prsummary. The summary also includes an explanation of how engagements identified as not performed or reported in conformity with applicable professional standards, if any, are evaluated by a peer reviewer to determine a peer review rating. Firm's Responsibility The firm is responsible for designing a system of quality control and complying with it to provide the firm with reasonable assurance of performing and reporting in conformity with applicable professional standards in all material respects. The firm is also responsible for evaluating actions to promptly remediate engagements deemed as not performed or reported in conformity with professional standards, when appropriate, and for remediating weaknesses in its system of quality control, if any. Peer Reviewer's Responsibility Our responsibility is to express an opinion on the design of the system of quality control, and the firm's compliance therewith based on our review. Required Selections and Considerations Engagements selected for review included engagements performed under Government Auditing Standards, including a compliance audit under the Single Audit Act. As a part of our peer review, we considered reviews by regulatory entities as communicated by the firm, if applicable, in determining the nature and extent of our procedures. Opinion In our opinion, the system of quality control for the accounting and auditing practice of Berger, Toombs, Elam, Gaines & Frank, CPAs, PL, in effect for the year ended May 31, 2019, has been suitably designed and complied with to provide the firm with reasonable assurance of performing and reporting in conformity with applicable professional standards in all material respects. Firms can receive a rating of pass, pass with deficiency(ies), or fail. Berger, Toombs, Elam, Gaines & Frank, CPAs, PL has received a peer review rating of pass. , C 'Fis F'zl n, c(i REUTINIANN&ASSOCIATE N,CPAs,PA Member American Institute of Certified Public Accountants(AICPA) and Florida Institute of Certified Public Accountants(FICPA) National Association of Certified Valuation Analysts(NACVA) ADDENDUM TO ENGAGEMENT LETTER BETWEEN BERGER,TOOMBS, ELAM, GAINES AND FRANK AND CEDAR HAMMOCK COMMUNITY DEVELOPMENT DISTRICT (DATED AUGUST 12, 2020) Public Records. Auditor shall, pursuant to and in accordance with Section 119.0701, Florida Statutes, comply with the public records laws of the State of Florida, and specifically shall: a. Keep and maintain public records required by the District to perform the services or work set forth in this Agreement; and b. Upon the request of the District's custodian of public records, provide the District with a copy of the requested records or allow the records to be inspected or copied within a reasonable time at a cost that does not exceed the cost provided in Chapter 119, Florida Statutes, or as otherwise provided by law; and c. Ensure that public records that are exempt or confidential and exempt from public records disclosure requirements are not disclosed except as authorized by law for the duration of the contract term and following completion of the Agreement if the Auditor does not transfer the records to the District; and d. Upon completion of the Agreement, transfer, at no cost to the District, all public records in possession of the Auditor or keep and maintain public records required by the District to perform the service or work provided for in this Agreement. If the Auditor transfers all public records to the District upon completion of the Agreement, the Auditor shall destroy any duplicate public records that are exempt or confidential and exempt from public disclosure requirements. If the Auditor keeps and maintains public records upon completion of the Agreement, the Auditor shall meet all applicable requirements for retaining public records. All records stored electronically must be provided to the District, upon request from the District's custodian of public records, in a format that is compatible with the information technology systems of the District. Auditor acknowledges that any requests to inspect or copy public records relating to this Agreement must be made directly to the District pursuant to Section 119.0701(3), Florida Statutes. If notified by the District of a public records request for records not in the possession of the District but in possession of the Auditor, the Auditor shall provide such records to the District or allow the records to be inspected or copied within a reasonable time. Auditor acknowledges that should Auditor fail to provide the public records to the District within a reasonable time, Auditor may be subject to penalties pursuant to Section 119.10, Florida Statutes. IF THE AUDITOR HAS QUESTIONS REGARDING THE APPLICATION OF CHAPTER 119, FLORIDA STATUTES, TO THE AUDITOR'S DUTY TO PROVIDE PUBLIC RECORDS RELATING TO THIS AGREEMENT/CONTRACT, THE AUDITOR MAY CONTACT THE CUSTODIAN OF PUBLIC RECORDS FOR THE DISTRICT AT: INFRAMARK INFRASTRUCTURE MANAGEMENT SERVICES 210 NORTH UNIVERSITY DRIVE, SUITE 702 CORAL SPRINGS, FL 33071 TELEPHONE: 954-603-0033 EMAIL: Auditor: J.W. Gaines District: Cedar hammock CDD By: ( Title: Director Title: Date: August 12, 2020 Date: /ey *Audit firm must comply with Senate Bill 664 regarding the use of E verify beginning 1/1/21.