Baytree Community Development District Agenda October 9, 2024 Baytree Community Development District Proposer DiBartolomeo, McBee, Hartley & Barnes, P.A. Certified Public Accountants 2222 Colonial Road, Suite 200 Fort Pierce, Florida 34950 (772) 461-8833 591 SE Port St. Lucie Boulevard Port Saint Lucie, Florida 34984 (772) 878-1952 Contact: Jim Hartley, CPA Principal TABLE OF CONTENTS Letter of Transmittal Professional Qualifications . Professional Staff Resources ................................................................................................. 1-2 . Current and Near Future Workload ....................................................................................... 2 . Identification of Audit Team .................................................................................................... 2 . Resumes ................................................................................................................................ 3-6 . Governmental Audit Experience .............................................................................................. 7 Additional Data . Procedures for Ensuring Quality Control & Confidentiality ................................................... 8 . Independence ......................................................................................................................... 8-9 . Computer Auditing Capabilities ............................................................................................ 10 . Contracts of Similar Nature ................................................................................................... 11 Technical Approach . Agreement to Meet or Exceed the Performance Specifications ........................................... 12 . Tentative Audit Schedule .................................................................................................... 13 . Description of Audit Approach ...................................................................................... 14-16 . Proposed Audit Fee ............................................................................................................. 17 DMHB DIBARTOLOMEO, MCBEE, HARTLEY & BARNES, P.A. CERTIFIED PUBLIC ACCOUNTANTS Baytree Community Development District Audit Selection Committee Dear Committee Members: We are pleased to have this opportunity to present the qualifications of DiBartolomeo, McBee, Hartley & Barnes, P.A. (DMHB) to serve as Baytree Community Development District’s independent auditors. The audit is a significant engagement demanding various professional resources, governmental knowledge and expertise, and, most importantly, experience serving Florida local governments. DMHB understands the services required and is committed to performing these services within the required time frame. We have the staff available to complete this engagement in a timely fashion. We audit several entities across the State making it feasible to schedule and provide services at the required locations. Proven Track Record— Our clients know our people and the quality of our work. We have always been responsive, met deadlines, and been willing to go the extra mile with the objective of providing significant value to mitigate the cost of the audit. This proven track record of successfully working together to serve governmental clients will enhance the quality of services we provide. Experience—DMHB has a history of providing quality professional services to an impressive list of public sector clients in Florida. We currently serve a large number of public sector entities in Florida, including cities, villages, special districts, as well as a large number of community development districts. Our firm has performed in excess of 100 community development district audits. In addition, our senior management team members have between 25 and 35 years experience in serving Florida governments. DMHB is a recognized leader in providing services to governmental and non-profit agencies within the State of Florida. Through our experience in performing audits, we have been able to increase our audit efficiency and therefore reduce cost. We have continually passed this cost saving 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 audit 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 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. 2222 Colonial Road, Suite 200. Fort Pierce, Florida 34950.772-461-8833 . Fax: 772-461-8872 591 S.E. Port St. Lucie Blvd., .Port St. Lucie, Florida 34984.772-878-1952.Fax: 772-878-1709 Member AICPA Member AICPA Division for CPA Firms Member AICPA Private Company Practice Section WWW.DMHBCPA.NET Timeliness – In order to meet the Districts needs, we will perform interim internal control testing by January 31st from unaudited preliminary general ledgers provided. The remaining testing will be completed no later than May 1st. We will also review all minutes and subsequent needs related to the review of the minutes by January 31st. Follow up review will be completed as necessary. Communication and Knowledge Sharing— Another driving force behind our service approach is frequent, candid and open communication with management with no surprises. During the course of the audit, we will communicate with management on a regular basis to provide you with a status report on the audit and to discuss any issues that arise, potential management letter comments, or potential audit differences. In the accompanying proposal, you will find additional information upon which you can evaluate DMHB’s qualifications. Our full team is in place and waiting to serve you. Please contact us at 2222 Colonial Road, Suite 200 Fort Pierce, FL 34950. Our phone number is (772) 461-8833. We look forward to further discussion on how our team can work together with you. Very truly yours, DiBartolomeo, McBee, Hartley & Barnes, P.A. PROFESSIONAL QUALIFICATIONS DiBartolomeo, McBee, Hartley & Barnes, P.A. is a local public accounting firm with offices in the cities of Fort Pierce and Port St. Lucie. The firm was formed in 1982. . Professional Staff Resources Our services will be delivered through personnel in both our Port St. Lucie and Ft. Pierce offices, located at 591 S.E. Port St. Lucie Blvd., Port St. Lucie, FL 34984 and 2222 Colonial Road, Suite 200, Fort Pierce, Florida 34950, respectively. DMHB has a total of 19 professional staff including 9 with extensive experience serving governmental entities. Professional Staff Number of Classification Professionals Partner 4 Managers 2 Senior 2 Staff 11 19 DiBartolomeo, McBee, Hartley & Barnes provides a variety of accounting, auditing, tax litigation support, estate planning, and consulting services. Some of the governmental, non-profit accounting, auditing and advisory services currently provided to clients include: . Annual financial and compliance audits including Single Audits of State and Federal financial assistance programs under the OMB A-133 audit criteria . Issuance of Comfort Letters, consent letters, and parity certificates in conjunction with the issuance of tax-exempt debt obligations, including compiling financial data and interim period financial statement reviews . Assisting in compiling historical financial data for first-time and subsequent submissions for the GFOA Certificate of Achievement for Excellence in Financial Reporting 1 PROFESSIONAL QUALIFICATIONS (CONTINUED) . Professional Staff Resources (Continued) . Audits of franchise fees received from outside franchisees . Preparation of annual reports to the State Department of Banking and Finance . Audits of Internal Controls – Governmental Special Project . Assistance with Implementation of current GASB pronouncements . Current and Near Future Workload In order to better serve and provide timely and informative financial data, we have comprised an experienced audit team. Our present and future workloads will permit the proposed audit team to perform these audits within the time schedule required and meet all deadlines. . Identification of Audit Team The team is composed of people who are experienced, professional, and creative. They fully understand your business and will provide you with reliable opinions. In addition, they will make a point to maintain ongoing dialogue with each other and management about the status of our services. The auditing firm you select is only as good as the people who serve you. We are extremely proud of the outstanding team we have assembled for your engagement. Our team brings many years of relevant experience coupled with the technical skill, knowledge, authority, dedication, and most of all, the commitment you need to meet your government reporting obligations and the challenges that will result from the changing accounting standards. A flow chart of the audit team and brief resumes detailing individual team members’ experience in each of the relevant areas follow. Jim Hartley, CPA – Engagement Partner (resume attached) Will assist in the field as main contact Jay McBee, CPA – Technical Reviewer (resume attached) Theresa Goldstein - Senior (resume attached) Christine Kenny, CPA – Senior (resume attached) Jim Hartley Partner – DiBartolomeo, McBee, Hartley & Barnes Experience and Training Jim has over 35 years of public accounting experience and would serve as the engagement partner. His experience and training include: • 35 years of non-profit and governmental experience. • Specializing in serving entities ranging from Government to Associations and Special District audits. • Has performed audits and advisory services for a variety of public sector entities. • Has extensive experience performing audits of federal grant recipients in accordance with the Single Audit Act and the related Office of Management and Budget (OMB) guidelines. • Experienced in maintaining the GFOA Certificate of Achievement. • 120 hours of CPE credits over the past 3 years. Recent Engagements Has provided audit services on governmental entities including towns, villages, cities, counties, special districts and community development districts. Jim has assisted with financial statement preparation, system implementation, and a variety of services to a wide range of non-profit and governmental entities. Jim currently provides internal audit and consulting services to governmental entities and non-profit agencies to assist in implementing and maintaining “best practice” accounting policies and procedures. Jim provides auditing services to the Fort Pierce Utilities Authority, St. Lucie County Fire District, City of Port St. Lucie, Tradition CDD #1 – 10, Southern Groves CDD #1-6, Multiple CDD audits, Town of St. Lucie Village, Town of Sewall’s Point, Town of Jupiter Island along with several other entities, including Condo and Homeowner Associations. Education and Registrations • Bachelor of Science in Accounting – Sterling College. • Certified Public Accountant Professional Affiliations • Member of the American Institute of Certified Public Accountants • Member of the Florida Institute of Certified Public Accountants • Member of the Florida Government Finance Officers Association Volunteer Service • Treasurer & Executive Board - St. Lucie County Chamber of Commerce • Budget Advisory Board - St. Lucie County School District • Past Treasurer - Exchange Club for Prevention of Child Abuse & Exchange Foundation Board • Board of Directors – State Division of Juvenile Justice Jay L. McBee Partner – DiBartolomeo, McBee, Hartley & Barnes Experience and Training Jay has over 45 years of public accounting experience and would serve as the technical reviewer on the audit. His experience and training include: • 45 years of government experience. • Specializing in serving local government entities. • Has performed audits and advisory services for a variety of public sector entities including counties, cities, special districts, and school districts. • Has experience performing audits of federal grant recipients in accordance with the Single Audit Act and the related Office of Management and Budget (OMB) guidelines, including Circular A-133 and the Rules of the Auditor General. • Has extensive experience in performing pension audits. • Experienced in developing and maintaining the GFOA Certificate of Achievement. • 120 Hours of relevant government CPE credits over the past 3 years. • Experience in municipal bond and other governmental-financing options and offerings. Recent Engagements Has provided auditing services on local governmental entities including towns, villages, cities, counties, special district and community development districts. Jay has assisted with financial preparation, system implementation, and a variety of government services to a wide range of governmental entities. Jay currently provides auditing services to the City of Port St. Lucie, City of Okeechobee Pension Trust Funds, St. Lucie County Fire District Pension funds, along with several other non-profit and governmental entities. Education and Registrations • Bachelor of Science in Accounting and Quantitative Business Management – West Virginia University. • Certified Public Accountant Professional Affiliations • Member of the American Institute of Certified Public Accountants • Member of the Florida Institute of Certified Public Accountants • Member of the Florida Government Finance Officers Association Volunteer Service • Member of the St. Lucie County Citizens Budget Committee • Finance committee for the First United Methodist Church • Treasurer of Boys & Girls Club of St. Lucie County Theresa Goldstein Supervisor – DiBartolomeo, McBee, Hartley & Barnes Experience and training Theresa has over 25 years of public accounting experience and would serve as the supervisor for the Constitutional Officers. Her experience and training include: • 25 years of government experience. • Specializing in serving local government entities. • Has performed audits and advisory services for a variety of public sector entities including counties, cities, towns and special districts. • Has extensive experience performing audits of federal grant recipients in accordance with the Single Audit Act and the related Office of Management and Budget (OMB) guidelines, including Circular A-133 and the Rules of the Auditor General. • Experienced in maintaining the GFOA Certificate of Achievement. • 100 hours of relevant government CPE credits over the past 3 years. Recent Engagements Has provided audit services on governmental entities including towns, villages, cities, counties, special districts and community development districts. Theresa has assisted with financial statement preparation, system implementation, and a variety of services to a wide range of non-profit and governmental entities. Theresa currently provides internal audit and consulting services to multiple agencies to assist in implementing and maintaining “best practice” accounting policies and procedures. Engagements include City of Port St. Lucie, St. Lucie County Fire District, Town of Sewall’s Point, Town of Jupiter Island, Multiple CDD audits, Tradition CDD #1-10, Southern Groves CDD #1-6 and Town of St. Lucie Village. Education and Registrations • Bachelor of Science in Finance – University of Central Florida • Masters of Business Administration with concentration in Accounting – Bryant College Professional Affiliations • Associate Member of the Florida Institute of Certified Public Accountants • Member of the Florida Government Finance Officers Association Christine M. Kenny, CPA Senior Staff – DiBartolomeo, McBee, Hartley & Barnes Experience and training Christine has over 18 years of public accounting experience and would serve as a senior staff for the Constitutional Officers. Her experience and training include: • 18 years of manager and audit experience. • Has performed audits and advisory services for a variety of public sector entities including counties, cities, towns and special districts. • Has experience performing audits of federal grant recipients in accordance with the Single Audit Act and the related Office of Management and Budget (OMB) guidelines, including Circular A-133 and the Rules of the Auditor General. • 100 hours of relevant government CPE credits over the past 3 years. Recent Engagements Has provided audit services on governmental entities including towns, villages, cities and special districts. Christine has assisted with financial statement preparation, system implementation, and a variety of services to a wide range of non-profit and governmental entities. Christine currently provides services to multiple agencies to assist in implementing and maintaining “best practice” accounting policies and procedures. Engagements include St. Lucie County Fire District, City of Fort Pierce, Town of Sewall’s Point, and Town of St. Lucie Village. Education and Registrations • Bachelor of Science in Accounting – Florida State University • Professional Affiliations • Active Member of the Florida Institute of Certified Public Accountants • Active Member of the American Institute of Certified Public Accountants • Member of the Florida Government Finance Officers Association PROFESSIONAL QUALIFICATIONS (CONTINUED) . Governmental Audit Experience DiBartolomeo, McBee, Hartley & Barnes, P.A., through its principals and members, has provided continuous in-depth professional accounting, auditing, and consulting services to local government units, nonprofit organizations, and commercial clients. Our professionals have developed considerable expertise in performing governmental audits and single audits and in preparing governmental financial statements in conformance with continually evolving GASB pronouncements, statements, and interpretations. All of the public sector entities we serve annually are required to be in accordance with GASB pronouncements and government auditing standards. We currently perform several Federal and State single audits in compliance with OMB Circular A- 133 and under the Florida Single Audit Act. Our professionals are also experienced in assisting their clients with preparing Comprehensive Annual Financial Reports (GFOA). All work performed by our firm is closely supervised by experienced certified public accountants. Only our most seasoned CPA’s perform consulting services. Some of the professional accounting, auditing, and management consulting services currently provided to our local governmental clients include: . Annual financial and compliance audits including Single Audits of State and Federal financial assistance programs under OMB A-133 audit criteria and the Florida Single Audit Act . Assisting in compiling historical financial data for first-time and supplemental submissions for GFOA Certificate of Achievement of Excellence in Financial Reporting . Audits of franchise fees received from outside franchisees . Assistance with Implementation of GASB-34 . Internal audit functions . Fixed assets review and updating cost/depreciation allocations and methods ADDITIONAL DATA . Procedures for Ensuring Quality Control & Confidentiality Quality control in any CPA firm can never be taken for granted. It requires a continuing commitment to professional excellence. DiBartolomeo, McBee, Hartley & Barnes is formally dedicated to that commitment. In an effort to continue to maintain the standards of working excellence required by our firm, DiBartolomeo, McBee, Hartley & Barnes, P.A. joined the Quality Review Program of the American Institute of Certified Public Accountants. To be a participating member firm, a firm must obtain an independent compliance 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 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 continuance of clients . Inspection and review system . Independence 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, independent auditors must exercise utmost care in the performance of their duties. Our firm has provided continuous certified public accounting services in the government sector for 31 years, and we are independent of the Community Development Districts as defined by the following rules, regulations, and standards: ADDITIONAL DATA (CONTINUED) . Independence (Continued) . Au Section 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-21, Florida Administrative Code . Section 473.315, Florida Statutes . Government Auditing Standards, issued by the Comptroller General of the United States . Computer Auditing Capabilities DiBartolomeo, McBee, Hartley & Barnes’ strong computer capabilities as demonstrated by our progressive approach to computer auditing and extensive use of microcomputers. Jay McBee is the MIS partner for DMHB. Jay has extensive experience in auditing and evaluating various computer systems and would provide these services in this engagement. We view the computer operation as an integral part of its accounting systems. We would evaluate the computer control environment to: . Understand the computer control environment’s effect on internal controls . Conclude on whether aspects of the environment require special audit attention . Make preliminary determination of comments for inclusion in our management letter This evaluation includes: . System hardware and software . Organization and administration . Access Contracts of Similar Nature within References Client Years Annual Engagement Partner Incl. Utility Audit/ Consulting GFOA Cert. GASB 34 Implementation & Assistance Total Hours Audit In Accordance With GAAS St. Lucie County Fire District Karen Russell, Clerk-Treasurer (772)462-2300 1984 Current v Jim Hartley v 250-300 City of Fort Pierce Johnna Morris, Finance Director (772)-460-2200 2005current v Mark Barnes v v 800 Fort Pierce Utilities Authority Nina Hurtubise, Finance Director (772)-466-1600 2005current v Jim Hartley v v v 600 Town of St. Lucie Village Diane Robertson, Town Clerk (772) 595-0663 1999 – current v Jim Hartley v 100 City of Okeechobee Pension Trust Funds Marita Rice, Supervisor of Finance (863)763-9460 1998 – current v Jay McBee 60 St. Lucie County Fire District 175 Pension Trust Fund Chris Bushman , Captain (772) 462-2300 1990 – current v Jay McBee 60 Tradition Community Development District 1-10 Alan Mishlove,District Finance Manager (407)382-3256 2002 current v Jim Hartley v 350 Legends Bay Community Development District Patricia Comings-Thibault (321)263-0132 2013current v Jim Hartley 50 Union Park Community Development District Patricia Comings-Thibault (321)263-0132 2013current v Jim Hartley 50 Deer Island Community Development District Patricia Comings-Thibault (321)263-0132 2013current v Jim Hartley 50 Park Creek Community Development District Patricia Comings-Thibault (321)263-0132 2013current v Jim Hartley 50 Waterleaf Community Development District Patricia Comings-Thibault (321)263-0132 2013current v Jim Hartley 50 10 TECHNICAL APPROACH a. An Express Agreement to Meet or Exceed the Performance Specifications. 1. The audit will be conducted in compliance with the following requirements: a. Rules of the Auditor General for form and content of governmental audits b. Regulations of the State Department of Banking and Finance c. Audits of State and Local Governmental Units-American Institute of Certified Public Accountants. 2. The audit report shall contain the opinion of the auditor in reference to all financial statements, and an opinion reflecting compliance with applicable legal provisions. 3. We will also provide the required copies of the audit report, the management letter, any related reports on internal control weaknesses and one copy of the adjusting journal entries and financial work papers. 4. The auditor shall, at no additional charge, make all related work papers available to any Federal or State agency upon request in accordance with Federal and State Laws and Regulations. 5. We will work in cooperation with the District, its underwriters and bond council in regard to any bond issues that may occur during the term of the contract. 6. The financial statements shall be prepared in conformity with Governmental Accounting Standards Board Statement Number 34, 63 and 65. We will commit to issuing the audit for each Fiscal year by June 1st of the following year. In order to ensure this we will perform interim internal control testing as required by January 31st from unaudited preliminary general ledgers provided. The remaining testing will be completed no later than May 1st. We will also review all minutes and subsequent needs related to the review of the minutes by January 30th. Follow up review will be completed as necessary. b. A Tentative Schedule for Performing the Key phases of the Audit Audit Phase and Tasks Oct. Nov. Dec. Jan. Feb. Mar. Apr. I. Planning Phase: Meetings and discussions with Baytree Community Development District personnel regarding operating, accounting and reporting matters Discuss management expectations, strategies and objectives Review operations Develop engagement plan Study and evaluate internal controls Conduct preliminary analytical review II. Detailed Audit Phase: Conduct final risk assessment Finalize audit approach plan Perform substantive tests of account balances Perform single audit procedures (if applicable) Perform statutory compliance testing III. Closing Phase: Review subsequent events, contingencies and commitments Complete audit work and obtain management representations Review proposed audit adjustments with client IV. Reporting Phase: Review or assist in preparation of financial statement for Baytree Community Development District Prepare management letter and other special reports Exit conference with Baytree Community Development District officials and management Delivery of final reports 12 b. SPECIFIC AUDIT APPROACH Our partners are not strangers who show up for an entrance conference and an exit conference. We have developed an audit plan that allows the partners to directly supervise our staff in the field. By assigning two partners to the audit, we will have a partner on-site for a significant portion of the fieldwork. This also gives the District an additional contact individual for questions or problems that may arise during the audit. The scope of our services will include a financial, as well as, a compliance audit of the District’s financial statements. Our audit will be conducted in accordance with auditing standards generally accepted in the United States and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Additionally, our audit will be conducted in accordance with the provisions of Chapter 10.550, Rules of the Auditor General, which govern the conduct of local government entity audits performed in the State of Florida. Our audit approach places emphasis on the accounting information system and how the data is recorded, rather than solely on the verification of numbers on a financial statement. This approach enables us to: . Maximize our understanding of the District’s operating environment . Minimize time required conducting the audit since we start with broad considerations and narrow to specific audit objectives in critical areas Our audit approach consists of four phases encompassing our audit process: . Planning Phase . Detailed Audit Phase . Closing Phase . Reporting Planning Phase Meetings and Expectations: Our first step in this phase will be to set up a planning meeting with the financial and operating management of Baytree Community Development District. Our goal here is to eliminate “surprises.” By meeting with responsible officials early on we can discuss significant accounting policies, closing procedures and timetables, planned timing of our audit procedures and expectations of our work. This will also be the starting point for our discussions with management related to SAS No. 99-Consideration of Fraud in a Financial Statement Audit. Inquiries will be made regarding managements knowledge of fraud and on management’s views regarding the risk of fraud. Review Operations and Develop Engagement Plan It is critical that we understand the District’s operating environment. To do this we will obtain and review such items as, organizational charts, recent financial statements, budget information, major contracts and lease agreements. We will also gather other information necessary to increase our understanding of the District’s operations, organization, and internal control. Study and Evaluate Internal Control As part of general planning, we will obtain an understanding and assessment of the District’s control environment. This assessment involves a review of management’s operating style, written internal control procedures, and the District’s accounting system. The assessment is necessary to determine if we can rely on control procedures and thus reduce the extent of substantive testing. We then test compliance with established control procedures by ascertaining that the significant strengths within the system are functioning as described to us. Generally, transactions are selected and reviewed in sufficient detail to permit us to formulate conclusions regarding compliance with control procedures and the extent of operation compliance with pertinent laws and regulations. This involves gaining an understanding of the District’s procedures, laws and regulations, and testing systems for compliance by examining contracts, invoices, bid procedures, and other documents. After testing controls, we then evaluate the results of those tests and decide whether we can rely on controls and thus reduce other audit procedures. Conduct Preliminary Analytical Review Also during the planning stage, we undertake analytical procedures that aid us in focusing our energies in the right direction. We call these analytical reviews. A properly designed analytical review can be a very effective audit procedure in audits of governmental units. Analytical reviews consist of more than just a comparison of current-year actual results to prior-year actual results. Very effective analytical review techniques include trend analysis covering a number of years and comparisons of information not maintained totally within the financial accounting system, such as per capita information, prevailing market interest rates, housing statistics, etc. Some examples of effective analytical reviews performed together and/or individually include: . Comparison of current-year actual results with current-year budget for the current and past years with investigation of significant differences and/or trends . Trend analysis of the percentage of current-year revenues to current-year rates for the current and previous years with investigation of significant changes in the collection percentage . Trend analysis of the percentage of expenditures by function for the current and previous years with investigation of significant changes in percentages by department . Monthly analysis of receipts compared to prior years to detect trends that may have audit implications Conclusions reached enable us to determine the nature, timing and extent of other substantive procedures. Detailed Audit Phase Conduct Final Risk Assessment and Prepare Audit Programs Risk assessment requires evaluating the likelihood of errors occurring that could have a material affect on the financial statements being audited. The conclusions we reach are based on many evaluations of internal control, systems, accounts, and transactions that occur throughout the audit. After evaluating the results of our tests of control and our final risk assessment we can develop detailed audit programs. Perform Substantive Tests of Account Balances These tests are designed to provide reasonable assurance as to the validity of the information produced by the accounting system. Substantive tests involve such things as examining invoices supporting payments, confirmation of balances with independent parties, analytical review procedures, and physical inspection of assets. All significant accounts will be subjected to substantive procedures. Substantive tests provide direct evidence of the completeness, accuracy, and validity of data. Perform Single Audit Procedures (if applicable) During the planning phase of the audit we will request and review schedules of expenditures of federal awards and state financial assistance. These schedules will be the basis for our determination of the specific programs we will test. In documenting our understanding of the internal control system for the financial statement audit, we will identify control activities that impact major federal and state programs as well. This will allow us to test certain controls for the financial audit and the single audit concurrently. We will then perform additional tests of controls for each federal and state program selected for testing. We will then evaluate the results of the test of controls to determine the nature, timing and extent of substantive testing necessary to determine compliance with major program requirements. Perform Statutory Compliance Testing We have developed audit programs for Baytree Community Development District designed to test Florida Statutes as required by the Auditor General. These programs include test procedures such as general inquiries, confirmation from third parties, and examination of specific documents. Closing Phase During the closing phase we perform detail work paper reviews, request legal letters, review subsequent events and proposed audit adjustments. Communication with the client is critical in this phase to ensure that the information necessary to prepare financial statements in conformity with accounting principles generally accepted in the United States has been obtained. Reporting Phase Financial Statement Preparation As a local firm, we spend a considerable amount of time on financial statement preparation and support. With this in mind, we can assist in certain portions of the preparation of financial statements or simply review a draft of financials prepared by your staff. We let you determine our level of involvement. Management Letters We want to help you solve problems before they become major. Our management letters go beyond citing possible deficiencies in the District’s internal control structures. They identify opportunities for increasing revenues, decreasing costs, improving management information, protecting assets and improving operational efficiency. The diversity of experience of our personnel and their independent and objective viewpoints make the comments, observations, and conclusions presented in our management letters a valuable source of information. We have provided positive solution-oriented objective recommendations to our governmental clients regarding investments, accounting accuracy, data processing, revenue bonds, payroll, utility billing, purchasing, budgeting, risk management, and internal auditing. This review ensures the integrity of the factual data in the management letter but does not influence or impair our independence. Exit Conferences and Delivery of Reports We anticipate meeting with appropriate District personnel in February and issuing the final required reports by the May meeting of each year. PROPOSED AUDIT FEE FOR EACH YEAR OF THE FIVE YEARS DiBartolomeo, McBee, Hartley & Barnes P.A. will perform the annual audit of Baytree Community Development District for the five years as follows: September 30, 2024 $ 3,200 September 30, 2025 $ 3,350 September 30, 2026 $ 3,500 September 30, 2027 $ 3,650 September 30, 2028 $ 3,800 In years of new debt issuance fees may be adjusted based on review with management. Item # Action Item Assigned To: Status Date Added Estimated Start Estimated Completion Comments 1 Back Gate Repair R. Szozda/GuardianACT In Progress 9/23/24 9/30/24 TBD Replacing Metal Post that supports back entrance swing gate (welding & concrete work), assessing other swing gate Baytree Community Development District Unaudited Financial Reporting August 31, 2024 A picture containing text Description automatically generated 1 2-3 456 7-8 9 Assessment Receipt Schedule Month to Month Table of Contents Balance Sheet General Fund Capital Projects Reserve Pavement Management Fund Community Beautification Fund General Capital Reserve Totals Fund Funds Governmental Funds ICAnasCPCCvMOsseaauohpeospvms:etntetsirmotemm:aaydtelue iy nMRnnntgeitast s:rMFyek uBraenvneted aaAsugcetcimofiucenanttti o- nSurplus $ 57 103 ,,, 101 473 --- $ 3 545 735 ,,, 498 - 627 983 -- $ 3 57545 103735,,,,,,101498101276473983 Total Assets $ 124,234 $ 457,270 $ 5 81,504 Liabilities: Accounts Payable $ 2 6,441 $ - $ 26,441 Total Liabilites $ 26,441 $ - $ 26,441 UAFusnCCPsnaoaaisdgvpmsn eiiBtmegmaadnluel eRafnndoneitrt sc:Mye e Bra:vneeaasugetimficeanttion $ 9 7 , 7 - 9 3 -- $ 3 455 357 ,,, 984 762 839 - $ 3 49553757,,,,978479628339 Total Fund Balances $ 97,793 $ 457,270 $ 5 55,063 Total Liabilities & Fund Balance $ 124,234 $ 457,270 $ 581,504 Baytree Community Development District Combined Balance Sheet August 31, 2024 Page 1 Community Development District General Fund Statement of Revenues, Expenditures, and Changes in Fund Balance For The Period Ending August 31, 2024 ABduodpgteetd PTrhorrua t0e8d/ B3u1d/g2e4t ThruA 0c8tu/a3l1/24 Variance Revenues: IM IMnOiatBseicn rCeetoleslsnatt naI Snnehcocoaeurm sAe Ies Ans cgeosresmmeeme nentst $ 9 49 975 ,,, 298 578 094 - $ 9 39 845 ,,, 468 758 934 - $ 1 , 0 30 940 ,,, 569125010314 $ 15 ,, 010 411 147 - Total Revenues $ 1,053,113 $ 1,039,016 $ 1 ,045,188 $ 6 ,172 Expenditures: General & Administrative: PLOTOIPPTWIAAMAFPDESnnueIrrornaesnttfuaCsfeftioohgspxlsgoneninuoebAeppacte eisruCtpraranseslr eerm,inE aa oggihsn eAvLrrtCSnlemexeleaottgei idluuAsyyycpmcert nev&Moperie iecuFATeonneerr pntn dGaenBeanp rgotlsFsii etenix tiprAnetTeeeins ne tsFsrtFsdee dsieea Ceesn&cmirnihenehsga aisSaegnlnn urrLoigcbslieetoasrsbgcaryitliiiptoytnions $ 13 4231 13599121376462 ,,,,,,,,,,,,,, 500927220283480913000001585506957801575000080300000058080500 $ 1 3 4231 19249111237231 ,,,,,,,,,,,,,, 395772221876380800137758825235315704405754033909353405026005 13431 912121237493 ,,,,,,,,,,,, 9262511726387363713 7152225331578601347 4996635344055208456 - $ ( 11 1272219 ( ,,,,,,, 1952227461( 165291280808 46740069504794 ------))) Subtotal General & Administrative $ 2 06,307 $ 195,147 $ 173,007 $ 22,140 Baytree Page 2 Community Development District General Fund Statement of Revenues, Expenditures, and Changes in Fund Balance For The Period Ending August 31, 2024 ABduodpgteetd PTrhorrua t0e8d/ B3u1d/g2e4t ThruA 0c8tu/a3l1/24 Variance Baytree Operations & Maintenance MMMMMMMTMGWEFSTTGOSSMHMMeeiilrreaapodaaaaaaaaeiaaeaccaalssteliiiiiiiiliiceetuueisncnnnnnnnndnnredtwph errsratttttttt ttMraMihileeeeeeeeee piat ttRlcy&innnnnnnnaonnayyolan ekinnaaaaaaaa Laa nnnGCSgm/nnnnnnnnnneeadaet oaCSo/ncccccccccceoegwntuueeeeeeeeeeIundverentr epssahasm----------rbtr cpalnoLFMIAPLLe RO earcClcruioaaoedtirnpogtenelhnksuocidethengseereednl ai Ftuate tLsrstMni ietma n-acioFii getaiaongGnienihsiepongaanntlentlidtt en esLC h gna(ooRannun&dtsrcsMeaec/ca GPtpeoeno elral) $ 12 32241531211 14690099256 56625211556 ,,,,,,,,,,,,,,,,,,,,,, 010200064117500827200059080100744120700105800902000400630500300800400208 $ 12 2 1 1 3 1 5 2101 15878888319556336215 ,,,,,,,,,,,,,,,,,,,, 05453359389802597609534 80403290567500536891573 20603003505900031827054 - $ 12 244141521018 951380949945783524 ,,,,,,,,,,,,,,,,,, 28644652668339824951 667355714457795018456 257960849792892125704 --- $ (((( 112 7 ((((( 3745171481 ((( ,,,,,,,,,, 741117876191567693 617034518712205831497 2976679192099829001775 --)))))))))))) Subtotal Operations & Maintenance $ 6 51,633 $ 584,221 $ 736,258 $ (152,036) Total Expenditures $ 8 57,940 $ 779,368 $ 909,265 $ (129,897) Excess (Deficiency) of Revenues over Expenditures $ 195,173 $ 259,648 $ 135,923 $ (123,725) Other Financing Sources/(Uses): Transfer Out CCCCFiaaaorpppmsiiittttm aaaQllluu PPPnarrrirtoootyejjjeee rBccc Oetttsssap- u-- eP tPRriaafaeivtvcsiiaeinnntrggigvo - e-n sB I FOauyBtn rFdeuen ds $ (((( 2645 (58551,,,,,010255896717357))))) $ ((( 2 64( 5855 ,,,, 0102 5896 1735 -)))) $ ((( 264( 5855 ,,,, 0102 5896 1735 -)))) $ ----- Total Other Financing Sources/(Uses) $ ( 195,173) $ (143,596) $ (143,596) $ - Net Change in Fund Balance $ 3 90,346 $ 116,052 $ (7,673) $ (123,725) Fund Balance - Beginning $ 172,298 $ 105,466 Fund Balance - Ending $ 562,644 $ 97,793 Page 3 Baytree Community Development District Capital Projects Reserve Fund Statement of Revenues, Expenditures, and Changes in Fund Balance For The Period Ending August 31, 2024 ABduodpgteetd PTrhorrua t0e8d/ B3u1d/2ge4 ThruA 0c8tu/3al1/24 Variance Revenues: Interest Income $ - $ - $ 5 $ 5 Total Revenues $ - $ - $ 5 $ 5 Expenditures: BCDSLiauardkanrebiekwn B-aFaTgaelrkneee /skMeG RTaueirtnsitmtteoermnr Raaietnnipogcae/niR/rEepvalaluceamtioennts $ 113 6045 ,,,, 65050 0000000000 $ 3 4 , 50 00 --- 3 4 , 40 30 20 --- $ 1 8 ---- Total Expenditures $ 6 6,600 $ 3 4,550 $ 3 4,432 $ 118 Excess (Deficiency) of Revenues over Expenditures $ (66,600) $ (34,550) $ (34,427) $ 123 Other Financing Sources/(Uses): Transfer In - Baytree $ 65,093 $ 65,093 $ 65,093 $ - Total Other Financing Sources/(Uses) $ 65,093 $ 65,093 $ 65,093 $ - Net Change in Fund Balance $ (1,507) $ 3 0,666 Fund Balance - Beginning $ 7 ,762 $ 26,763 Fund Balance - Ending $ 6 ,255 $ 57,429 Page 4 Baytree Community Development District Pavement Management Statement of Revenues, Expenditures, and Changes in Fund Balance For The Period Ending August 31, 2024 ABduodpgteetd PTrhorrua t0e8d/ B3u1d/2ge4t ThruA 0c8tu/3al1/24 Variance Revenues Interest $ - $ - $ 31 $ 31 Total Revenues $ - $ - $ 31 $ 31 Expenditures: Bank Fees $ 600 $ 550 $ 432 $ 118 Total Expenditures $ 600 $ 550 $ 432 $ 118 Excess (Deficiency) of Revenues over Expenditures $ (600) $ (401) Other Financing Sources/(Uses) TTrraannssffeerr IInn -- IBOaBytree $ 2 85,,108571 $ 2 85,,108571 $ 2 85,,108571 $ -- Total Other Financing Sources (Uses) $ 3 3,238 $ 33,238 $ 3 3,238 $ - Net Change in Fund Balance $ 3 2,638 $ 3 2,837 Fund Balance - Beginning $ 323,019 $ 323,026 Fund Balance - Ending $ 355,657 $ 355,863 Page 5 Baytree Community Development District Community Beautification Statement of Revenues, Expenditures, and Changes in Fund Balance For The Period Ending August 31, 2024 ABduodpgteetd PTrhorrua t0e8d/ B3u1d/2ge4t ThruA 0c8tu/3al1/24 Variance Revenues Interest $ - $ - $ - $ - Total Revenues $ - $ - $ - $ - Expenditures: BBeaanukt Fifeiceastion Projects $ 4 0 - $ 3 6 7 - $ 6 5 , 811520 $ ( 6 5 , 821127) Total Expenditures $ 400 $ 367 $ 6 5,962 $ (65,595) Excess (Deficiency) of Revenues over Expenditures $ (400) $ (65,962) Other Financing Sources/(Uses) Transfer In - Baytree $ 45,265 $ 45,265 $ 45,265 $ - Total Other Financing Sources (Uses) $ 4 5,265 $ 45,265 $ 4 5,265 $ - Net Change in Fund Balance $ 4 4,865 $ (20,697) Fund Balance - Beginning $ 59,410 $ 64,675 Fund Balance - Ending $ 104,275 $ 43,978 Page 6 Baytree Community Development District Oct Nov Dec Jan Feb March April May June July Aug Sept Total Revenues: II MMOnaitBseicn rCeteoleslsnatt naI Snnehcocoaeurm sAe Ies Ans cegosrsemmeeme nentst $ 1 , 0 - 7 58 - $ 2 5 43 ,, 26 00 559 - $ 6 1 , 7 3 51 -- $ 3 2 , 45 23 553 - $ 1 106 ,,, 814 936 5285 $ 8 , 7 15 265 - $ 2 1 , 96 47 155 - $ 2 - 45 - $ 11 51 ,, 858 617 2595 $ 5 45 435 - $ 1 , 68 - 576897 $ - --- $ 1 , 0 03 094 ,,,9561 02511034 Total Revenues $ 1 ,082 $ 257,819 $ 661,736 $ 32,963 $ 18,500 $ 8 ,772 $ 22,621 $ 228 $ 28,261 $ 602 $ 12,604 $ - $ 1,045,188 Expenditures: General & Administrative: Supervisor Fees 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 800 $ 1,000 $ 800 $ - $ 1,000 $ 1,000 $ - $ 9,600 $ FICA Expense 77 77 77 77 77 61 77 61 - 77 77 - 734 Engineering 293 975 1,964 - 390 2,040 1,133 - 5,943 325 300 - 13,362 Assessment Administration 7,875 - - - - - - - - - - - 7,875 Attorney Fees 3,658 1,375 5,638 2,378 4,950 2,695 5,428 2,915 500 2,263 2,988 - 34,785 Annual Audit - - - - - - 3,350 - - - - - 3,350 Management Fees 3,874 3,874 3,874 3,874 3,874 3,874 3,874 3,874 3,874 3,874 3,874 - 42,614 Information Technology 158 158 158 158 158 158 158 158 158 158 158 - 1,733 Website Maintenance 105 105 105 105 105 105 105 105 105 105 105 - 1,155 Telephone - - - - - - - - - - - - - Postage 301 8 48 377 112 202 306 49 - 529 191 - 2,123 Insurance General Liability 32,226 - - - - - - - - - - - 32,226 Tax Collector Fee - 5,072 13,235 611 129 174 436 - 317 - - - 19,974 Printing & Binding 176 - 3 1 10 0 1 10 59 - 0 - 259 Legal Advertising - - - - - - - 179 - 1,218 222 - 1,619 Other Current Charges 39 39 39 40 50 42 42 56 42 41 97 - 526 Office Supplies 23 0 21 0 13 0 14 14 0 0 233 - 318 Property Taxes - 346 - - - - - - - - - - 346 Property Appraiser - - 234 - - - - - - - - - 234 Dues, Licenses & Subscriptions 175 - - - - - - - - - - - 175 Total General & Administrative 49,977 $ 13,029 $ 26,394 $ 8,619 $ 10,867 $ 10,151 $ 15,922 $ 8,220 $ 10,997 $ 9,589 $ 9,243 $ - $ 173,007 $ Month to Month Page 7 Baytree Community Development District Oct Nov Dec Jan Feb March April May June July Aug Sept Total Month to Month Operations & Maintenance Security Contract 21,316 $ 17,509 $ 22,084 $ 17,176 $ 17,176 $ 21,445 $ 17,176 $ 17,483 $ 17,176 $ 21,777 $ 12,882 $ - $ 203,201 $ Gate Maintenance 578 8,035 1,447 5,273 - 557 - 1,514 - 733 714 - 18,852 Security Gatehouse Maintenance 3,105 195 67 - 736 1,115 36 36 36 36 36 - 5,398 Telephone/Internet - Gatehouse/Pool 647 647 647 652 652 669 669 684 704 704 704 - 7,379 Transponders - - - - - 4,972 - - - - - - 4,972 Field Management Fees 2,714 2,714 2,714 2,714 2,714 2,714 2,714 2,714 2,714 2,714 2,714 - 29,859 Electric 10,040 5,297 4,994 4,694 4,695 4,903 4,915 5,002 5,036 5,073 5,000 - 59,647 Water & Sewer 1,467 1,174 1,723 1,600 2,792 982 1,174 997 1,138 601 1,000 - 14,649 Gas 149 513 2,282 3,239 1,453 937 437 52 49 49 55 - 9,214 Trash Removal 53 53 53 53 53 53 53 53 53 53 53 - 578 Maintenance - Lakes 3,135 4,075 4,420 4,135 3,135 4,075 3,195 4,075 3,135 4,135 3,135 - 40,650 Maintenance - Landscape Contract 9,946 9,946 9,946 9,946 11,239 11,239 11,239 11,239 11,239 11,239 11,239 - 118,456 Maintenance - Additional Landscape 7,490 7,050 6,117 - 405 11,925 - 3,852 4,000 1,400 1,200 - 43,439 Maintenance - Pool 2,741 1,456 9,279 1,392 1,794 1,831 9,124 8,334 1,681 2,231 1,814 - 41,677 Maintenance - Irrigation 483 2,223 - 1,979 1,690 690 7,186 3,200 394 7,053 969 - 25,865 Maintenance - Lighting 2,380 276 - - 1,959 2,459 - - - 1,839 350 - 9,262 Maintenance - Monuments - - - - - - - - - - - - - Maintenance - Fountain 40 40 215 40 40 225 40 40 225 40 40 - 985 Maintenance - Other Field (R&M General) - - 3,020 13,530 1,418 35,628 17,250 2,750 3,522 5,370 1,677 - 84,164 Maintenance - Recreation - - - - - - - - - - - - - Holiday Landscape Lighting - - 15,412 - - - - - - - - - 15,412 Operating Supplies - - - - - - 47 - - - - - 47 Sidewalk/Curb Cleaning - - - 2,290 - - - - 260 - - - 2,550 Miscellaneous - - - - - - - - - - - - - Subtotal Operations & Maintenance 66,283 $ 61,202 $ 84,421 $ 68,713 $ 51,951 $ 106,418 $ 75,254 $ 62,025 $ 51,362 $ 65,048 $ 43,582 $ - $ 736,258 $ Total Expenditures 116,260 $ 74,231 $ 110,814 $ 77,332 $ 62,817 $ 116,569 $ 91,176 $ 70,245 $ 62,359 $ 74,636 $ 52,825 $ - $ 909,265 $ Excess (Deficiency) of Revenues over Expen (115,178) $ 183,588 $ 550,921 $ (44,369) $ (44,317) $ (107,797) $ (68,556) $ (70,016) $ (34,098) $ (74,034) $ (40,221) $ - $ 135,923 $ Other Financing Sources/Uses: Transfer Out Capital Projects- Paving - Baytree - $ - $ - $ (25,051) $ - $ - $ - $ - $ - $ - $ - $ (25,051) $ Capital Projects - Paving - IOB Funds - - - - (8,187) - - - - - - (8,187) Capital Projects - Reserves - - - (65,093) - - - - - - - (65,093) Community Beautification Fund - - - - (45,265) - - - - - - (45,265) First Quarter Operating - - - - - - - - - - - - Total Other Financing Sources/Uses - $ - $ - $ (90,144) $ (53,452) $ - $ - $ - $ - $ - $ - $ - $ (143,596) $ Net Change in Fund Balance (115,178) $ 183,588 $ 550,921 $ (134,513) $ (97,769) $ (107,797) $ (68,556) $ (70,016) $ (34,098) $ (74,034) $ (40,221) $ - $ (7,673) $ Page 8 GNroest sA Asssesesssmsmeenntsts $$ 1 , 90 9367,,054457..1020 $$ 1 , 09 3976,,504475..0102 allocation in % 100.00% Date Gross Amount (Discount)/ Penalty *Commission Interest Net Receipts O&M Portion Total 10000001100102211446671132/////////////11001112212208001456992687/////////////22222222222223334444443444 $ 62 261234 5683151886 ,,,,,,,,,,5685478866 3007804000 7005119000 --- ..........70038000005465000000 $ ( 2 ( 69 (((( ,,58129891 ( 148694243 108484482 ---- .........170000150290046000))))))) $ ( 1 ( 24 (((((((( ,,7411712641 9438717932 0415304979 --- ..........50291025435686245706)))))))))) $ 2 , 10 430 145 ---------- ...498023 $ 62 223122 68448394612 ,,,,,,,,,,,168225869303 43368631583701422337246815.............49007172686680822456358453 $ 62 323132 76948084612 ,,,,,,,,,,,107707645908 42301692556001437248637895.............46920002300080321000000053 $ 62 323132 47698480612 ,,,,,,,,,,,017707645908 24031692556003172448637895.............64290002300083012000000053 TOTAL $ 1,037,545.00 $ (38,826.61) $ (19,975.59) $ 2,182.15 $ 980,924.95 $ 1,000,900.54 $ 1,000,900.54 *Note: Commissions are posted as admin. expenditures. 100.49% $ - NNeett A Asssseessssmmeennttss R Ceomllaeicnteindg ON ROLL ASSESSMENTS Baytree COMMUNITY DEVELOPMENT DISTRICT Special Assessment Receipts - Brevard County Fiscal Year 2024 Page 9