Southaven
Community Development District

Audit Committee Meeting
May 5, 2021

District Office: 2806 N. Fifth Street Unit 403
St. Augustine, FL 32084 www.southavencdd.org

SOUTHAVEN COMMUNITY DEVELOPMENT DISTRICT
DISTRICT OFFICE  2806 N. FIFTH STREET  UNIT 403  ST AUGUSTINE, FL 32084  904-436-6270
www.southavencdd.org

April 28, 2021

Audit Committee Southaven Community Development District

AGENDA
Dear Committee Members:

The Audit Committee Meeting of the Southaven Community Development District will be held on Wednesday, May 5, 2021 at 10:00 a.m. at the Markland Amenity Center located at 61 Clarissa Lane St. Augustine, FL 32095. The following is the agenda for this meeting. The following is the agenda for this meeting.

CALL TO ORDER/ROLL CALL
BUSINESS ADMINISTRATION
Review, Discuss and Evaluate the Proposals in Response to the Request for District Auditing Services	Tab 1
ADJOURNMENT

I look forward to seeing you at the meeting. In the meantime, if you have any questions, please do not hesitate to contact me at (904) 436-6270.

Very truly yours, Melissa Dobbins Melissa Dobbins Southaven Community Development District

~ 1 ~

CALL TO ORDER / ROLL CALL

BUSINESS ADMINISTRATION

Tab 1

Review, Discuss and Evaluate the Proposals in Response to the Request for District Auditing Services

Southaven CDD
Audit Proposal Review Committee Evaluation Spread Sheet 05/5/2021

Bidder's Name	

Total Audit Price	
Ability of Personnel
(20 Points)	
Proposer's Experience
(20 Points)	Understanding Scope
of Work
(20 Points)	
Furnish Required Services
(20 Points)	

Price (20 Points)	

Total Points	
	2021 - $3,800							
*Current Auditor
McDermit Davis	2022 - $3,800
2023 - $3,800
2024 - $3,900							
	2025 - $3,900							

Grau &	2021 - $3,500
2022 - $3,600							
Associates	2023 - $3,700							
	2024 - $3,800							
	2025 - $3,900							
Committee Member's Names:	

Proposal to Provide Auditing Services

Southaven Community Development District

For the Fiscal Year Ending September 30, 2021, 2022, 2023, 2024, and 2025

Submitted by:

934 North Magnolia Avenue Suite 100
Orlando, Florida 32803
(407) 843-5406

CONTACT: Tamara Campbell, C.P.A.

tcampbell@mcdirmitdavis.com
www.mcdirmitdavis.com

Proposal for Audit Services to
Southaven Community Development District
Table of Contents

	    Page	
Letter of Interest	1	
Company Background	3	
Peer Review Letter	8	
Audit Personnel Experience	9	
References	12	
Service Approach	14	
Cost Proposal	16	

Letter of Interest

April 9, 2021

Melissa Dobbins, District Manager Southaven Community Development District 2806 N. Fifth Street, Unit 403
St. Augustine, FL 32084

934 North Magnolia Avenue, Suite 100
Orlando, Florida 32803
407-843-5406
www.mcdirmitdavis.com

Thank you for the opportunity to submit our qualifications and experience to serve as independent auditors of Southaven Community Development District. The accompanying proposal will provide you detailed information regarding the scope of services to be provided, as well as a profile of the firm, the individuals who will serve you, our qualifications and experience, and representative clients, including specific references.

It is our understanding that we will provide the following services:

Financial audit of the basic financial statements of Southaven Community Development District for the fiscal years ending September 30, 2021, 2022, 2023, 2024 and 2025.
We will commit to maintain staff required to conclude the audits within the time constraints indicated in the RFP.
The audit will be performed in accordance with generally accepted auditing standards, Governmental Auditing Standards and the Rules of the Auditor General of the State of Florida.
The audit for the fiscal year ending September 30, 2021 will be completed no later than February 28, 2022.

We believe we are the best-qualified firm to perform the engagement for the following reasons:

We presently audit over fifty Community Development Districts, fourteen municipalities and one special water district and have an excellent working knowledge of generally accepted accounting principles related to governmental entities.
As the current auditors of the District, we are knowledgeable about the District’s procedures and history.
We assist in the preparation of the financial statements for most of these governmental entities.
We have assisted nine municipalities in receiving the GFOA "Certificate of Achievement for Excellence in Financial Reporting". Most of these municipalities have been receiving the “Certificate of Achievement” between ten and twenty years. Tamara Campbell is active as a national review team member of the GFOA's "Certificate of Achievement for Excellence in Financial Reporting" program. As a review team member, Ms. Campbell reviews and evaluates financial reports submitted by cities and counties to determine whether the financial reports meet the stringent requirements to receive the GFOA'S prestigious award. Participating as a review team member, Ms. Campbell has demonstrated her expertise in governmental accounting and auditing.
We have strong information technology ability and will input the District’s general ledger balances into our ProSystem fx Engagement software and perform a virtually “paperless” audit. The District’s Financial Statements are linked to the general ledger; therefore, the likelihood of errors on the financial statements is reduced.
We have recent and continuous experience and have devoted a great deal of our continuing education to the governmental auditing and accounting field. Our firm meets the independence and education requirements of the Government Auditing Standards issued by the Comptroller General of the United States. Our firm is independent of Southaven Community Development District as defined by Government Auditing Standards.

the trusted partner

We are members of the American and Florida Institutes of Certified Public Accountants and an Associate member of the Governmental Finance Officers Association. Our firm is active in governmental organizations throughout Central Florida and serves on governmental committees of the Florida Institute of CPA's.
We are a local firm with personnel committed to quality and professional performance, accustomed to providing a high level of client satisfaction. We believe that our firm is part of a team effort to assist the District in developing the best financial reporting possible.
We have a history of continuity of personnel assigned to the engagement. Our single office firm and low personnel turnover assures uninterrupted services from our partners and staff. We have a staff of 28 people and 8 of those are governmental audit staff.

McDirmit Davis, LLC has not colluded with any of the Proposers, and we have not defaulted on any previous contract, and are not in arrears on any previous or existing contract and are properly licensed.

Because of our unique qualifications and a philosophy based on complete dedication to client service, we feel confident that we can provide you with responsiveness and a range of experience that will best serve your needs.

Ms. Tamara Campbell, partner, is authorized to represent the firm and may be contacted at 934 North Magnolia Avenue, Suite 100, Orlando, Florida 32803, or phone (407) 843-5406.

We would consider it a privilege to continue to serve as independent auditors for Southaven Community Development District.

Sincerely,

McDirmit Davis, LLC

Tamara Campbell, CPA

Company Background

MCDIRMIT DAVIS AT GLANCE

-
mil	Established 1984

HIGHEST PASSING RATING IN
OUR 2020 PEER REVIEW

*
Ranked Top 10 in Central Florida
t Over 100 years of combined experience

MEMBERSHIPS

American Institute of
Certifie Public Accountants

Florida Institute
of
Certified Public Account_ants

Florida Government Finance Officers

Page | 3

About Us:
McDirmit Davis, LLC was incorporated in the State of Florida in August 1984 and serves Central Florida from its centrally located office in Orlando, Florida. The partners and managers have over 100 years of combined experience in public accounting, and our firm has grown to be ranked as one of the top 10 accounting firms in Central Florida by the Orlando Business Journal.

When considering whether to hire our firm, you will find that McDirmit Davis can be differentiated from our competitors in several areas, such as:

Local, Experienced and Involved Partners: Our partners and managers have over 100 years of combined experience in public accounting. Tammy has over fifteen (15) years of governmental accounting and auditing experience, including municipalities, airport authorities and over 50 community development districts.

Commitment to Quality: McDirmit Davis has received a “pass” audit opinion by our peer reviewers regarding our firm’s Quality Control Standards.

Timely Audits: Our commitment is to meet all audit deadlines, all of our audits have been perfomed according to agreed audit schedules.

Our firm has a wide range of clients providing both goods and services in the Central Florida area. Our practice encompasses auditing, accounting, management advisory and tax services. A list of all governmental clients audited by us for the fiscal years 2015-2019 is as follows:

•	Over Fifty Community Development Districts		
•	City of Belle Isle, Florida *	•	City of Ocoee, Florida *	
•	City of Clermont, Florida *	•	City of Orange City, Florida*	
•	City of Fruitland Park, Florida	•	City of Tavares, Florida *	
•	City of Groveland, Florida	•	City of Umatilla, Florida *	
•	City of Inverness, Florida*	•	City of Winter Springs, Florida *	
•	City of Lake Mary, Florida*	•	Homosassa Special Water	
•	City of Longwood, Florida *	•	Sun’n Lake of Sebring Improvement District	
•	City of Mascotte, Florida	•	Town of Montverde, Florida	
•	City of Minneola, Florida	•	Town of Windermere, Florida	

These entities are presently clients of McDirmit Davis, LLC
These entities participate in the Certificate of Achievement for Excellence in Financial Reporting program.

General Information about McDirmit Davis

License to Practice in Florida
Our Firm and all key professional staff are properly licensed to practice in the state of Florida. In addition, our Firm and all assigned key personnel are in good standing with the Florida Board of Accountancy. We can provide a copy of actual License, if requested.

Independence
McDirmit Davis, LLC is independent of the District as defined by auditing standards contained in Government Auditing Standards.

Governmental Audit Quality Center
McDirmit Davis, LLC is a member of the AICPA’s Governmental Audit Quality Center which is dedicated to establishing the highest standards of audit quality in the governmental accounting and audit sector.

External Quality Control Review
Our Firm understands the importance of developing a formal quality control program, and therefore have been a member of the Private Companies Practice Section of the American Institute of Certified Public Accountants since 1985. Member firms are required to adhere to quality control standards established by the AICPA Quality Control Standards Committee and to submit to peer reviews of the firm's accounting and audit practice. Peer reviews are intensive reviews of a firm's quality control system by an independent CPA firm. Our firm has had seven peer reviews performed by the American Institute of Certified Public Accountants. Each peer review has included a review of a local governmental entity.

On our most recent peer review performed in 2020, we received a peer review rating of “pass”, which is the highest rating that a firm can receive under the revised peer review standards. We have never been subject to any litigation or disciplinary actions by a client, the State or any professional organization for substandard field work. A copy of our firm’s most recent peer review report follows this section. These peer reviews included a review of at least two governmental engagements, and it should be noted that there were no findings as a result of this review. We have never withdrawn from an engagement prior to the agreed expiration date.

Size and Organization
McDirmit Davis LLC has 28 employees, the total number of governmental audit staff is 8; the professional staff of our firm has been conducting governmental audits in the Central Florida area for the past thirty years. We are experienced auditors in a variety of industries and offer experience in auditing federal grants under the Single Audit Act and performing compliance audits of state grants.

Our experience in governmental auditing has led to the development of efficient procedures that provide various client benefits. Our services provide our clients with a wide range of knowledge, confidence, and helpful management advice.

Below is a listing of the type of other services that we have provided to governmental clients:

Assistance in preparation of Comprehensive Annual Financial Reports for recognition by the Government Finance Offiers Certificate of Achievement Program.
Issuance of Comfort Letters and Consent Letters in conjunction with the issuance of tax-exempt bonds.
Assistance on early implementation of new GASB Statements.
Assisting in compiling historical financial data for first-time submissions for GFOA Certificate of Achievement for Excellence in Financial Reporting.
Detailed internal control studies and evaluations of accounting systems.

Engagement Team
The following table lists the names of firm accounting personnel assigned to the audit:

Name	Audit Role

Tamara Campbell, CPA	Engagement Partner

Michelle Sorbello, CPA	Engagement Manager

Matthew Lee, CPA	Engagement Manager

All of the above people have considerable experience on governmental audit engagements. All supervisory personnel assigned to the audit, are Certified Public Accountants. The engagement partner and audit manager will be assigned to audit on a full-time basis. In addition to the partner and managers, McDirmit Davis will utilize various audit senior and staff members for audit fieldwork.

Continuing Education
McDirmit Davis, LLC is committed to the personal and professional growth of its staff. Our firm requires an annual minimum of 40 hours of continuing professional education for each staff member.

Our governmental audit staff complies with the continuing education requirements of the State of Florida, the Governmental Accountability Office (GAO), and Governmental Auditing Standards (Yellow Book). Therefore at least 24 hours during a 2- year period must be in subjects directly related to the government environment and to governmental auditing. Our governmental audit staff always exceed this requirement since they attend each year the Florida Governmental Financial Officer’s Association Annual Conference which provides 22 hours of training in governmental accounting and auditing.

As a result of our governmental experience, our staff has taught classes or lectured on various topics. We offer "in-house" education courses for our staff, which at times, our clients have attended. In addition, we are available to teach seminars for the benefit of the District's accounting staff.

Information Technology
Our firm has one dedicated Information Technology specialist who has several years’ experience in setting up and administering computer systems and networks of all sizes. In addition, all governmental audit personnel are experienced with various governmental software programs. We utilize automated, paperless auditing software which stores all trial balances and audit workpapers electronically. We also use Data Analysis Software, which enables us to obtain 100% of selected data and test “through your computer system.”

One of the services we provide our clients is CLIENT PORTAL. This is a convenient online storage space in which files can be effortlessly uploaded, downloaded, stored and shared in a safe and secure environment.

Records Retention
Our firm maintains records in accordance with local, state, and Federal Public Records Retention Requirements.

Federal or State Reviews
Any Federal or State desk review has resulted in no findings and we have never undergone a Federal or State field audit.

Peer Review Letter

@
PRIDA, GUIDA & PEREZ, P.A.
CERTIFIED PUBLIC ACCOUNTANTS
1106 N. FRANKLIN STREET
TAMPA, FLORIDA 33602
TELEPHONE: 1813) 226-6091
FAX: (8131 229·7764

Report on the Firm's System of Quality Control

August 21, 2020

To the Owners of McDinnit Davis, LLC And the Peer Review Committee of the
Florida Institute of Certified Public Accountants

We have reviewed the system of quality control for the accou nti ng and auditing practice of McDirrnit Davis, LLC (the firm), in effect for the year ended June 30, 2020. 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 www.aicpa.org/prsummary. The summary also includes an explanation of how engagements identified as not performed or reported in confonnity with applicable professional standards, if any, are evaluated by a peer reviewer to determine a peer review rating.

Firm's Responsibility

The firm is respons ible for designing a system of quality control and complying with it to provide the finn with reasonable assurance of performing and reporting inconformity with applicable professional standards in all material respects. The firm is also responsible for evaluating actions to promptly remediate engagements deemed as not perfonned 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 perfonned under Government Auditing Standards, a compliance audit under the Single Aud it Act, and an audit of an employee benefit plan.

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 McOirmit Davis, LLC in effect for the year ended June 30, 2020 has been suitably designed and complied with to provide the firm with reasonable assurance of performing and reporting in confonnity with applicable professional standards in all material respects. Finns can receive a rating of pass, pass with deficiency(ies), or fail. McDirmit Davis, LLC has rece ived a peer review rating of pass.

Prida Guida & Perez, P.A.
MEMBER AMERICAN IN STiTUTE OF CERTIF'IED PUBL.IC .ACCOUNTANTS MEMBER FLOR'IDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANT!!

Audit Personnel Experience

Tammy Campbell, CPA
Partner
Education, Certifications, and Licenses
B.S. Degree in Accounting, University of Central Florida
Masters in Taxation, University of Central Florida
CPA, Certified Public Accountant - Florida

Affiliations and Community Involvement
American Institute of Certified Public Accountants (AICPA)
Florida Institute of Certified Public Accountants (FICPA)
Florida Government Finance Officers Association (FGFOA)
Reviewer for GFOA’s “Certificate of Achievement for Excellence in Financial Reporting” program
Member of the Orange County School Board Audit Advisory Committee

Continuing Professional Education
Tammy has completed over 120 hours of Continuing Professional Education (CPE) in the area of governmental accounting and auditing within the past three years and meets the requirements of Governmental Auditing Standards (the “Yellow Book”). CPE included classes on Single Audits, the Yellow Book, and changes in governmental accounting principles, such as GASBS 67 and 68 on pension plans.

Experience
Tammy has 17 years of governmental accounting and auditing experience, including municipalities and airport authorities.
Her experience has included planning, fieldwork, and preparation of comprehensive annual financial reports for several governmental audit engagements.
Tammy has worked with all municipalities in the CAFR preparation process, including assisting most cities with obtaining the GFOA Certificate of Achievement.

Governmental Audit Experience (Past 5 years)

Over 60 Community Development Districts		City of Ocoee
City of Belle Isle		Town of Orange City
City of Clermont		City of Oviedo
City of Inverness		City of Tavares
City of Lake Mary		City of Umatilla
City of Longwood		City of Winter Springs
City of Mascotte		Homosassa Water District

Michelle Sorbello, CPA
Audit Manager
Education, Certifications, and Licenses
B.S. Degree in Accounting, University of Central Florida
Masters in Accounting, University of Central Florida
CPA, Certified Public Accountant - Florida

Affiliations and Community Involvement
American Institute of Certified Public Accountants (AICPA)
Florida Institute of Certified Public Accountants (FICPA)
Florida Government Finance Officers Association (FGFOA)

Continuing Professional Education
Michelle has completed over 120 hours of Continuing Professional Education (CPE) in the area of governmental accounting and auditing within the past three years and meets the requirements of Governmental Auditing Standards.

Experience
Michelle has 9 years of governmental accounting and auditing experience.
She has significant experience in the audits of governmental and not-for-profit entities, including those subject to Federal and Florida Single Audit requirements.

Governmental Audit Experience (Past 5 years)

Various Community Development Districts
City of Inverness		City of Mascotte
City of Lake Mary		City of Ocoee
City of Longwood		City of Winter Springs

Matthew Lee, CPA
Audit Manager

Education, Certifications, and Licenses
Master of Science in Accounting, University of Central Florida
Master of Public Administration, University of Central Florida
B.S. in Public Administration, University of Central Florida
CPA, Certified Public Accountant - Florida

Affiliations and Community Involvement
American Institute of Certified Public Accountants (AICPA)
Florida Institute of Certified Public Accountants (FICPA)
Florida Government Finance Officers Association (FGFOA)

Continuing Professional Education
Matthew has completed over 120 hours of Continuing Professional Education (CPE) in the area of governmental accounting and auditing within the past three years and meets the requirements of Governmental Auditing Standards.

Experience
Matthew has 10 years of governmental accounting and auditing experience.
He has significant experience in the audits of governmental and not-for-profit entities, including those subject to Federal and Florida Single Audit requirements.

Governmental Audit Experience (Past 5 years)

Various Community Development Districts
City of Belle Isle		City of Tavares
City of Clermont		City of Umatilla
City of Longwood		City of Winter Springs
City of Ocoee		Sun ‘N Lake Improvement District
City of Oviedo		Town of Windermere

References of Governmental Accounting Experience

Principal Client Contact	Scope of Work	Years	
			
Sun’n Lake of Sebring Improvement District	
Mr. Omar DeJesus, Finance Director

5306 Sun’n Lake Blvd. Sebring, FL 33872 odejesus@snldistrict.org	Annual Financial & Compliance Audit and preparation of Financials	2011 to Present	
Sterling Hill Community Development District	
Ms. Kaitlyn Gallant Rizzetta and Company
Manager, District Accounting Services

12750 Citrus Park Lane Suite 115
Tampa, Florida 33625 kgallant@rizzetta.com	Annual Financial & Compliance Audit and preparation of Financials	2007 to 2009
& 2013 to Present	
Meadow Pointe II Community Development District	
Mr. Alan Baldwin Inframark Accounting Manager

210 N. University Drive Suite 702
Coral Springs, Florida 33071 alan.baldwin@inframark.com	Annual Financial & Compliance Audit and preparation of Financials	2012 to Present	
Toscana Isles Community Development District	
Mr. Jeffrey Pinder
Wrathell Hunt and Associates Controller

2300 Glades Road Suite 410W
Boca Raton, Florida 33431 pinderj@whhassociates.com	Annual Financial & Compliance Audit and preparation of Financials	2015 to Present	
Homosassa Special Water District	
Ms. Teresa Olds, Manager

7922 W. Grover Cleveland Blvd. Homosassa, FL 34448 hswd@tampabay.rr.com	Annual Financial & Compliance Audit and preparation of Financials	2007 to Present	

List of 2019 Community Development District Audits:		
Community Development District	County	
Asturia Community Development District	Pasco	
Bainebridge Community Development District	Duval	
Beach Road Golf Estates Community Development District	Lee	
Belmont Community Development District	Hillsborough	
Bexley Community Development District	Pasco	
Celebration Community Development District	Osceola	
Chapel Creek Community Development District	Pasco	
Concorde Estates Community Development District	Osceola	
Copperspring Community Development District	Pasco	
Dovera Community Development District	Seminole	
Durbin Crossing Community Development District	St. Johns	
Enterprise Community Development District	Osceola	
Fiddler’s Creek Community Development District #1	Collier	
Forest Creek Community Development District	Manatee	
Greyhawk Landing Community Development District	Manatee	
Heritage Isle at Viera Community Development District	Brevard	
Highlands Community Development District	Hillsborough	
K-Bar Ranch Community Development District	Hillsborough	
K-Bar Ranch II Community Development District	Hillsborough	
Meadow Pointe II Community Development District	Pasco	
Mediterra Community Development District	Collier	
Mirabella Community Development District	Hillsborough	
Palm River Community Development District	Hillsborough	
Portofino Springs Community Development District	Lee	
Scenic Highway Community Development District	Polk	
South Shore Corporate Park Community Development District	Hillsborough	
Southaven Community Development District	St. Johns	
Southern Hills Plantation II Community Development District	Hernando	
Spring Ridge Community Development District	Hernando	
Sterling Hill Community Development District	Hernando	
Suncoast Community Development District	Pasco	
Talavera Community Development District	Pasco	
The Crossings at Fleming Island Community Development District	Clay	
The Woodlands Community Development District	North Port	
Toscana Isles Community Development District	Sarasota	
Town of Kindred Community Development District	Osceola	
Trails Community Development District	Duval	
Treeline Preserve Community Development District	Lee	
Trout Creek Community Development District	St. Johns	
University Square Community Development District	Lee	
University Village Community Development District	Lee	
Valencia Water Control District	Orange	
Venetian Community Development District	Sarasota	
Watergrass II Community Development District	Pasco	
Waterlefe Community Development District	Manatee	
Westridge Community Development District	Polk	
Wiregrass Community Development District	Pasco	
Wiregrass II Community Development District	Pasco	

Service Approach

Service Approach
Our audit will be segmented as follows:

Phase 1:Audit Planning
Phase 2:Evaluation and Testing of Internal Controls Phase 3:Substantive Testing

Phase 4:Reporting

Phase 1: Audit Planning
Preliminary planning includes deciding on an overall strategy for the audit, obtaining an understanding of the entity and its environment, including its internal control, making an initial assessment of audit risk and materiality, and deciding on the overall timing of the engagement. We will also begin to assemble our “permanent file,” which consists of copies of organizational charts, District manuals, documents, and financial and other management systems.

We will meet with staff of the District to obtain an understanding of the
flow of transactions through your accounting system. This includes understanding your computer environment in order to comply with the requirements of AU-C 300, Planning an Audit. We will also gather information to identify fraud risks as required by AU-C 240 Consideration of Fraud in a Financial Statement Audit.

We will also perform preliminary analytical procedures and compare trends for the current and at least the two previous years for unusual fluctuations. This will include review of both budget and actual amounts.

During this planning phase, we will ask management and staff at the District to identify areas of higher risk as well as other areas that they want us to focus on during our audit. We will also provide the District with a list of all schedules to be prepared by the District.

Phase 2: Evaluation and Testing of Internal Controls and Compliance
During Phase 2, we will evaluate your control policies and procedures to determine if they are functioning properly in significant transaction classes. To gain an understanding of the procedures in place, and current internal control structure, we typically conduct interviews with staff and management involved in the specific transaction class to be tested. We then perform tests of these controls to determine with reasonable assurance that control procedures are functioning as planned and whether further testing will be needed.

As part of our tests of controls, we will include tests of compliance with applicable ordinances, and state and federal laws and regulations. In order to determine which ordinances, laws and regulations to test for compliance, we start by reviewing the FICPA Practice Aid Compliance Auditing in Florida. We then evaluate which ordinances, laws and regulations have a direct and material effect on the determination of financial statement amounts. Sample sizes are determined based upon our assessment of control risk and may be judgmental, random, or stratified, depending on the attributes of the population being tested. We will select samples from the significant transaction classes and trace from original documents through the computer system to the general ledger through the use of Data Analysis Software.

Service Approach - Continued
Phase 2: Evaluation and Testing of Internal Controls and Compliance - Continued
Our control testing includes obtaining an understanding of the computer software used by the District, and tracing sample selections through the system to determine the desired outcomes are being achieved. Our testing of Information Technology includes inquiries of appropriate personnel regarding data backups and access to District files.

After controls have been documented, evaluated and tested, we will finalize the District’s audit plan. Audit programs will be tailored to fit the specifics of the District’s accounting systems.

Phase 3: Substantive Testing
Our year-end fieldwork will focus on verifying balances in accounts. For example, we will confirm cash balances, as well as debt balances with financial institutions. In addition to obtaining audit confirmations, representation letters and attorney letters, we will perform tests on account balances using analytical procedures, recalculation and verification.

Our firm uses ProSystem fx Engagement electronic audit software which may allow us to interface with your accounting system and reduce the time required to transfer your accounting data to a separate software package. We believe it is important to use analytical review procedures in this substantive phase of the audit. We compare analytical results to our expectation of what the results should be in order to determine if additional audit procedures are required. Typical analytical procedures include expense variances with previous years and budget amounts, revenue variances with previous years and budgeted amounts.

We will keep the District’s management up to date on the progress of the audit and will discuss preliminary findings and potential problems or opportunities as we encounter them. Our approach to resolving problems encountered is to discuss with the District Manager to make sure our understanding is correct. Our process to produce a meaningful “management letter” is to review results of testing of internal controls, as well as year-end field work and draft recommendations for improvements to be discussed with management.

Phase 4: Reporting
The audit work is reviewed by the engagement partner throughout the engagement. Once the engagement partner review is complete, a second review of the financial statements is performed by the independent reviewer. This second review is required as part of McDirmit Davis’s internal system of quality control and ensures the District receives the best service possible.

We will prepare a draft of the financial statements and then issue the following:

Auditor’s report on financial statements
Report on internal control over financial reporting and on compliance and other matters based on an audit of financial statements performed in accordance with “Government Auditing Standards.
Management Letter

We will provide technical assistance to the District to meet changes in required disclosures. Once reports have been reviewed by management and approved in final form, we will issue final reports and supply in electronic format.

Cost Proposal

Cost Proposal
We understand the requested services include audits of the District’s financial statements for the year ended September 30, 2021 2022, 2023, 2024, and 2025. The audit will be made in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.

McDirmit Davis, LLC is duly licensed under Chapter 473, Florida Statutes and is qualified to conduct audits in the State of Florida and audits in accordance with Government Auditing Standards.

We believe in continuing client contact throughout the year, not just during the audit. We encourage on-going client contact by not charging any fee for phone calls.

Fees include all services, including but not limited to, meals and lodging, transportation, printing and binding, telephone, fax and copies. Out of pocket expense (if any) related to charges for confirmations will be in addition to the audit fee. Invoices will be submitted as work progresses on each phase of the audit.

  Year Ended		 	Audit Fee		
September 30, 2021	$3,800	
September 30, 2022	$3,800	
September 30, 2023	$3,800	
September 30, 2024	$3,900	
September 30, 2025	$3,900	

Proposal to Provide Financial Auditing Services:
SOUTHAVEN
COMMUNITY DEVELOPMENT DISTRICT

Proposal Due: April 09, 2021 12:00PM

Submitted to:
Southaven
Community Development District c/o District Manager
2806 North Fifth Street, Unit 403 St. Augustine, Florida 32084

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
tgrau@graucpa.com www.graucpa.com

Table of Contents

PAGE

EXECUTIVE SUMMARY / TRANSMITTAL LETTER	1
FIRM QUALIFICATIONS	3
FIRM & STAFF EXPERIENCE	6
REFERENCES	11
SPECIFIC AUDIT APPROACH	13
COST OF SERVICES	17
SUPPLEMENTAL INFORMATION	19

April 09, 2021

Southaven Community Development District c/o District Manager
2806 North Fifth Street, Unit 403 St. Augustine, Florida 32084

Re:	Request for Proposal for Professional Auditing Services for the fiscal year ended September 30, 2021-2025.

Grau & Associates (Grau) welcomes the opportunity to respond to the Southaven Community District’s (the “District”) Request for Proposal (RFP), and we look forward to continuing working with you on your audit. We are an energetic and robust team of knowledgeable professionals and are a recognized leader of providing services to Community Development Districts. As one of Florida’s few firms to primarily focus on government, we are especially equipped to provide you an effective and efficient audit.

Special district audits are at the core of our practice: we have a total of 360 clients, 329 or 91% of which are special districts. We know the specifics of the professional services and work products needed to meet your RFP requirements like no other firm. With this level of experience, we are able to increase efficiency, to provide immediate and continued savings, and to minimize disturbances to client operations.

Why Grau & Associates:

Knowledgeable Audit Team
Grau is proud that the personnel we assign to your audit are some of the most seasoned auditors in the field. Our staff performs governmental engagements year round. When not working on your audit, your team is refining their audit approach for next year’s audit. Our engagement partners have decades of experience and take a hands-on approach to our assignments, which all ensures a smoother process for you.

Servicing your Individual Needs
Our clients enjoy personalized service designed to satisfy their unique needs and requirements. Throughout the process of our audit, you will find that we welcome working with you to resolve any issues as swiftly and easily as possible. In addition, due to Grau’s very low turnover rate for our industry, you also won’t have to worry about retraining your auditors from year to year.

Developing Relationships
We strive to foster mutually beneficial relationships with our clients. We stay in touch year round, updating, collaborating and assisting you in implementing new legislation, rules and standards that affect your organization. We are also available as a sounding board and assist with technical questions.

Maintaining an Impeccable Reputation
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 are financially stable and have never been involved in any bankruptcy proceedings.

Complying With Standards
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 to provide any additional information. We are genuinely excited about the prospect of serving you and establishing a long-term relationship. 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.

Very truly yours, Grau & Associates
Antonio J. Grau

2

Firm Qualifications

Grau’s Focus and Experience

Our Team

3	10	2

Services Provided

Partners	Professional Administrative

9/13

Auditors are
CPAS	Year founded

Staff

Professionals

297

Community Development Districts Served

Properly registered and
licensed professional corporation by the state of FLORIDA

We are proud Members of the American Institute of Certified Public Accountants
&
the Florida Institute of Certified Public Accountants

See next page for report and certificate

 External quality review program: consistently receives a pass
 Internal: ongoing monitoring to maintain quality

9
Professional Groups

AICPA | FICPA | GFOA | FASD | FGFOA

•

PA	@	AICP. A
Florida Institute of Ceniied Public Aa:oumants

P@er Review Program

FICPA Peer Review Program
Administered in Florida
bv The Florida Instltule of CPAs

AICPA PIHlr Review Program Administered in Florida
by the Floridalnslilule of CPAs

February 20, 2020

Antonio Grau
Grau & Associates
951 Yamato Rd Ste 280 Boca Raton, FL 33431-1809

Dear Antonio Grau

It is my pleasure to notify you that on February  20, 2020, the Florida  Peer Review Committee  accepted the report on the most recent  Sy stem Review of your firm . The due date for your next review is  December  31, 2022. This is the date by which all review documents should be completed and submitted to the administering entity.

As you know, the report had a peer review rating of pass The Committee asked  me to  convey  its congratulations to the firm

Thank you for your cooperation.

CJ)f], pCM,

. S finlcere ,

Peer Review Team
Fl CPA Peer Review Committee paul@fi cpa org
800-342-3197 ext 251

Florida Institute of CPAs

cc Daniel Hevia, Racquel McIntosh

Firm Number   900004390114	Review Number 571202

3800 Esplanade Wa y, Suite 210 I Tallanassee. FL 32311 1 800 .342. 3197 In Florida J 8502 24.2727 J Fa x: BS0.222.8190 I www.ficpa.org

Firm & Staff Experience

GRAU AND ASSOCIATES COMMUNITY
DEVELOPMENT DISTRICT EXPERIENCE BY MANAGEMENT COMPANY

OTHER
19

PFM
12

WRATHELL
30

GMS
78

INFRAMARK
38

SDS
60

RIZZETTA
47

MERITUS
23

Profile Briefs:

Antonio J GRAU, CPA (Partner)
Years Performing Audits: 30+
CPE (last 2 years): Government Accounting, Auditing: 24 hours; Accounting, Auditing and Other: 58 hours
Professional Memberships: AICPA, FICPA, FGFOA, GFOA

Racquel McIntosh, CPA (Partner)
Years Performing Audits: 14+
CPE (last 2 years): Government Accounting, Auditing: 38 hours; Accounting, Auditing and Other: 56 hours
Professional Memberships: AICPA, FICPA, FGFOA, FASD

“Here at Grau & Associates, staying up to date with the current technological landscape is one of our top priorities. Not only does it provide a more positive experience for our clients, but it also allows us to perform a more effective and efficient audit. With the every changing technology available and utilized by our clients, we are constantly innovating our audit process.”
Tony Grau
“Quality audits and exceptional client service are at the heart of every decision we make. Our clients trust us to deliver a quality audit, adhering to high standards and assisting them with improvements for their organization.”
Racquel McIntosh

YOUR ENGAGEMENT TEAM

Grau’s client-specific engagement team is meticulously organized in order to meet the unique needs of each client. Constant communication within our solution team allows for continuity of staff and audit team.

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.

An advisory consultant will be available as a sounding board to advise in those areas where problems are encountered.

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; communicating with the client and the partners the progress of the audit; and
determining that financial statements and all reports issued by the firm are accurate, complete and are prepared in accordance with professional standards and firm policy.

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 directing the development of the overall audit approach and plan; performing an overriding review of work papers and ascertain client satisfaction.

Antonio ‘Tony ‘ J. Grau, CPA
Partner
Contact: tgrau@graucpa.com | (561) 939-6672
Experience
For over 30 years, Tony has been providing audit, accounting and consulting services to the firm’s governmental, non-profit, employee benefit, overhead and arbitrage clients. He provides guidance to clients regarding complex accounting issues, internal controls and operations.
As a member of the Government Finance Officers Association Special Review Committee, Tony participated in the review process for awarding the GFOA Certificate of Achievement in Financial Reporting. Tony was also the review team leader for the Quality Review of the Office of Management Audits of School Board of Miami-Dade County. Tony received the AICPA advanced level certificate for governmental single audits.
Education
University of South Florida (1983)
Bachelor of Arts Business Administration

Clients Served (partial list)
(>300) Various Special Districts, including:

Bayside Improvement Community Development District	St. Lucie West Services District
Dunes Community Development District	Ave Maria Stewardship Community District Fishhawk Community Development District (I,II,IV)	Rivers Edge II Community Development District Grand Bay at Doral Community Development District	Bartram Park Community Development District Heritage Harbor North Community Development District	Bay Laurel Center Community Development District

Boca Raton Airport Authority Greater Naples Fire Rescue District
Key Largo Wastewater Treatment District Lake Worth Drainage District
South Indian River Water Control

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

Professional Education (over the last two years)
Course	Hours
Government Accounting and Auditing	24
Accounting, Auditing and Other	58
Total Hours	82 (includes of 4 hours of Ethics CPE)

Racquel C. McIntosh, CPA
Partner
Contact : rmcintosh@graucpa.com | (561) 939-6669
Experience
Racquel has been providing government audit, accounting and advisory services to our clients for over 14 years. She serves as the firm’s quality control partner; in this capacity she closely monitors engagement quality ensuring standards are followed and maintained throughout the audit.
Racquel develops in-house training seminars on current government auditing, accounting, and legislative topics and also provides seminars for various government organizations. In addition, she assists clients with implementing new accounting software, legislation, and standards.

Education
Florida Atlantic University (2004)
Master of Accounting Florida Atlantic University (2003)
Bachelor of Arts: Finance, Accounting

Clients Served (partial list)
(>300) Various Special Districts, including:

Carlton Lakes Community Development District Golden Lakes Community Development District Rivercrest Community Development District South Fork III Community Development District TPOST Community Development District

East Central Regional Wastewater Treatment Facilities Indian Trail Improvement District
Pinellas Park Water Management District Ranger Drainage District
South Trail Fire Protection and Rescue Service District

Professional Associations/ Memberships
American Institute of Certified Public Accountants Florida Institute of Certified Public Accountants

Professional Education (over the last two years)
Course
Government Accounting and Auditing Accounting, Auditing and Other
Total Hours

Westchase Community Development District Monterra Community Development District
Palm Coast Park Community Development District Long Leaf Community Development District Watergrass Community Development District

FICPA State & Local Government Committee FGFOA Palm Beach Chapter

Hours
38
56
94 (includes of 4 hours of Ethics CPE)

References

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		

Specific Audit Approach

AUDIT APPROACH
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

PHASE II:
Execution of the Audit Plan

PHASE III:
Completion and Delivery

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, including 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 and 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.

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; and
» 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; and
» 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.

Is the recommendation cost effective?

Is the recommendation the simplest to effectuate in order to correct a problem?

Is the recommendation at the heart of the problem and not just correcting a symptomatic matter?

Is the corrective action taking into account why the deficiency occurred?

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:

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 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.

Cost of Services

Our proposed all-inclusive fees for the financial audit for the fiscal years ended September 30, 2021-2025 are as follows:

    Year Ended September 30,		 	Fee		
2021	$3.500	
2022	$3.600	
2023	$3.700	
2024	$3.800	
2025	$3.900	
TOTAL (2021-2025)	$18,500	

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.

Supplemental Information

PARTIAL LIST OF CLIENTS

	Governmental Audit	Single Audit	Utility Audit	
Current Client	
Year End	
Boca Raton Airport Authority					9/30	
Captain's Key Dependent District					9/30	
Central Broward Water Control District					9/30	
Collier Mosquito Control District					9/30	
Coquina Water Control District					9/30	
East Central Regional Wastewater Treatment Facility					9/30	
Florida Green Finance Authority					9/30	
Greater Boca Raton Beach and Park District					9/30	
Greater Naples Fire Control and Rescue District					9/30	
Green Corridor P.A.C.E. District					9/30	
Hobe-St. Lucie Conservancy District					9/30	
Indian River Mosquito Control District					9/30	
Indian Trail Improvement District					9/30	
Key Largo Waste Water Treatment District					9/30	
Lake Padgett Estates Independent District					9/30	
Lake Worth Drainage District					9/30	
Lealman Special Fire Control District					9/30	
Loxahatchee Groves Water Control District					9/30	
Old Plantation Control District					9/30	
Pal Mar Water Control 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	
Sanibel Fire and Rescue District					9/30	
South Central Regional Wastewater Treatment and Disposal Board					9/30	
South-Dade Venture Development District					9/30	
South Indian River Water Control District					9/30	
South Trail Fire Protection & Rescue District					9/30	
Spring Lake Improvement District					9/30	
St. Lucie West Services District					9/30	
Sunshine Water Control District					9/30	
West Villages Improvement District					9/30	
Various Community Development Districts (297)					9/30	
TOTAL	333	5	3	328		

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	Current

of tax-exempt financing. Their principal purpose is to eliminate any

73 Arbitrage

significant arbitrage incentives in a tax-exempt issue. We have	Calculations determined the applicability of these requirements and performed the
rebate calculations for more than 150 bond issues, including both fixed and variable rate bonds.

We look forward to providing Southaven 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.

ADJOURNMENT