Live Oak No. 2

Community Development District

ANNUAL FINANCIAL REPORT

September 30, 2018

Live Oak No. 2 Community Development District			
ANNUAL FINANCIAL REPORT			
	September 30, 2018			
	TABLE OF CONTENTS			
			Page		
FINANCIAL SECTION	Number		
			
REPORT OF INDEPENDENT AUDITORS	1-2		
MANAGEMENT’S DISCUSSION AND ANALYSIS	3-8		
BASIC FINANCIAL STATEMENTS:			
Government-wide Financial Statements	9		
Statement of Net Position			
Statement of Activities	10		
Fund Financial Statements:	11		
Balance Sheet – Governmental Funds			
Reconciliation  of  Total  Governmental  Fund  Balances  to  Net	12		
Position of Governmental Activities			
Statement  of  Revenues,  Expenditures  and Changes  in Fund	13		
Balances – Governmental Funds			
Reconciliation of the Statement of Revenues, Expenditures and			
Changes in Fund Balances of Governmental Funds to the			
Statement of Activities	14		
Statement  of  Revenues,  Expenditures  and Changes  in Fund			
Balances – Budget and Actual – General Fund	15		
Notes to Financial Statements	16-28		
INDEPENDENT AUDITOR'S 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	29-30		
MANAGEMENT LETTER	31-32		
INDEPENDENT ACCOUNTANT’S REPORT/COMPLIANCE WITH			
SECTION 218.415, FLORIDA STATUTES	33		

r~tt
CO:,

Berger,	Toombs,	Elam,		
Gaines	& Frank			
Certified Public Accountants	PL			
600 Citrus Avenue				
Suite 200					
Fort Pierce, Florida 34950				
772/461-6120	// 461-1155				
FAX: 772/468-9278		REPORT OF INDEPENDENT AUDITORS		

To the Board of Supervisors
Live Oak No. 2 Community Development District
Hillsborough County, Florida

Report on the Financial Statements

We have audited the accompanying financial statements of Live Oak No. 2 Community Development District as of and for the year ended September 30, 2018, and the related notes to financial statements, which collectively comprise the District’s basic financial statements as listed in the table of contents.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Accounting Standards , issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

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

Member

FICPA

~~tt

,OJ

Berger, Toombs, Gaines & Frank

CertifiedPublicAccountants	PL

Elam,

To the Board of Supervisors
Live Oak No. 2 Community Development District

Opinion

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities and each major fund of Live Oak No. 2 Community Development District, as of September 30, 2018, and the respective changes in financial position and the budgetary comparison for the General Fund for the year then ended in conformity with accounting principles generally accepted in the United States of America.

Other Matters

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the Management Discussion and Analysis be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued a report dated May 31, 2019 on our consideration of the District’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations and contracts. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Live Oak No. 2 Community Development District’s internal control over financial reporting and compliance.

Berger, Toombs, Elam, Gaines & Frank
Certified Public Accountants PL
Fort Pierce, Florida

May 31, 2019

- 2 -

Live Oak No. 2 Community Development District MANAGEMENT’S DISCUSSION AND ANALYSIS For the Year Ended September 30, 2018

Management’s discussion and analysis of Live Oak No. 2 Community Development District’s (the “District”) financial performance provides an objective and easily readable analysis of the District’s financial activities. The analysis provides summary financial information for the District and should be read in conjunction with the District’s financial statements.

OVERVIEW OF THE FINANCIAL STATEMENTS

The District’s basic financial statements comprise three components; 1) Government-wide financial statements, 2) Fund financial statements, and 3) Notes to financial statements. The Government -wide financial statements present an overall picture of the District’s financial position and results of operations. The Fund financial statements present financial information for the District’s major funds. The Notes to financial statements provide additional information concerning the District’s finances.

The Government-wide financial statements are the statement of net position and the statement of activities. These statements use accounting methods similar to those used by private-sector companies. Emphasis is placed on the net position of governmental activities and the change in net position. Governmental activities are primarily supported by special assessments.

The statement of net position presents information on all assets and liabilities of the District, with the difference between assets and liabilities reported as net position. Net position are reported in three categories; 1) net investment in capital assets, 2) restricted, and 3) unrestricted. Assets, liabilities, and net position are reported for all Governmental activities.

The statement of activities presents information on all revenues and expenses of the District and the change in net position. Expenses are reported by major function and program revenues relating to those functions are reported, providing the net cost of all functions provided by the District. To assist in understanding the District’s operations, expenses have been reported as governmental activities. Governmental activities financed by the District include general government and debt service.

Fund financial statements present financial information for governmental funds. These statements provide financial information for the major funds of the District. Governmental fund financial statements provide information on the current assets and liabilities of the funds, changes in current financial resources (revenues and expenditures), and current available resources.

- 3 -

Live Oak No. 2 Community Development District MANAGEMENT’S DISCUSSION AND ANALYSIS For the Year Ended September 30, 2018

OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)

Fund financial statements include a balance sheet and a statement of revenues, expenditures and changes in fund balances for all governmental funds. A statement of revenues, expenditures, and changes in fund balances – budget and actual is provided for the District’s General Fund. Fund financial statements provide more detailed information about the District’s activities. Individual funds are established by the District to track revenues that are restricted to certain uses or to comply with legal requirements.

The government-wide financial statements and the fund financial statements provide different pictures of the District. The government-wide financial statements provide an overall picture of the District’s financial standing. These statements are comparable to private-sector companies and give a good understanding of the District’s overall financial health and how the District paid for the various activities, or functions, provided by the District. All assets of the District, including land and improvements and construction in progress, are reported in the statement of net position. All liabilities, including principal outstanding on bonds are included. The statement of activities includes depreciation on all long-lived assets of the District, but transactions between the different functions of the District have been eliminated in order to avoid “doubling up” the revenues and expenses. The fund financial statements provide a picture of the major funds of the District. In the case of governmental activities, outlays for long lived assets are reported as expenditures and long-term liabilities, such as general obligation bonds, are not included in the fund financial statements. To provide a link from the fund financial statements to the government -wide financial statements, a reconciliation is provided from the fund financial statements to the government-wide financial statements.

Notes to financial statements provide additional detail concerning the financial activities and financial balances of the District. Additional information about the accounting practices of the District, investments of the District, capital assets and long-term debt are some of the items included in the notes to financial statements.

Financial Highlights

The following are the highlights of financial activity for the year ended September 30, 2018.

	The District’s total assets and deferred outflows of resources exceeded total liabilities by $15,269,494 (net position). The District’s net investment in capital assets was $14,781,909. Restricted net position is $82,978. Unrestricted net position is $404,607.

	Governmental activities revenues totaled $828,703 while governmental activities expenses totaled $1,066,848.

- 4 -

Live Oak No. 2 Community Development District MANAGEMENT’S DISCUSSION AND ANALYSIS For the Year Ended September 30, 2018

OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)

Financial Analysis of the District

The following schedule provides a summary of the assets, liabilities and net position of the District and is presented by category for comparison purposes.

Net Position						
		Governmental	Activities	
		2018				2017	
Current assets	$	414,141			$	378,510	
Restricted assets		451,645				439,220	
Capital assets		21,298,649				21,895,463	
Total Assets		22,164,435				22,713,193	
Deferred outflows of resources		179,529				190,985	
Current liabilities		422,034				419,258	
Non-current liabilities		6,652,436				6,977,281	
Total Liabilities		7,074,470				7,396,539	
Net position - net investment in							
capital assets		14,781,909				15,070,434	
Net position - restricted		82,978				67,305	
Net position - unrestricted		404,607				369,900	
Total Net Position	$	15,269,494			$	15,507,639	

The decrease in capital assets is due to depreciation in the current year.

The decrease in deferred outflows of resources is the result of current year amortization.

The decrease in non-current liabilities is the result of principal bond payments in the current year.

The decrease in net position – net investment in capital assets is primarily due to depreciation in excess of the reduction in long-term debt.

- 5 -

Live Oak No. 2 Community Development District MANAGEMENT’S DISCUSSION AND ANALYSIS For the Year Ended September 30, 2018

OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)

Financial Analysis of the District (Continued)

The following schedule provides a summary of the changes in net position of the District and is presented by category for comparison purposes.

Change in Net Position				
		Governmental	Activities		
		2018				2017		
Revenues	$	823,852			$	824,583		
Charges for services								
Miscellaneous revenues		-				1,667		
Investment earnings		4,851				2,627		
Total Revenues								
		828,703				828,877		
Expenses		102,308				107,824		
General government								
Physical environment		709,850				720,364		
Interest on long-term debt		254,690				261,953		
Total Expenses		1,066,848				1,090,141		
Change in Net Position		(238,145)				(261,264)		
Net Position - Beginning of Year		15,507,639				15,768,903		
Net Position - End of Year	$	15,269,494			$	15,507,639		

The decrease in general government is related to a decrease in engineering services in the current year.

The decrease in physical environment is due to a decrease in pond maintenance in the current year.

- 6 -

Live Oak No. 2 Community Development District MANAGEMENT’S DISCUSSION AND ANALYSIS For the Year Ended September 30, 2018

OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)

Capital Assets Activity

The following schedule provides a summary of the District’s capital assets as of September 30, 2018 and 2017.

Description			Governmental Activities		
			2018			2017		
Land and improvements	$	7,616,900	$	7,616,900		
Infrastructure			17,904,401			17,904,401		
Less: accumulated depreciation			(4,222,652)			(3,625,838)		
Total Capital Assets (Net)	$	21,298,649	$	21,895,463		

Capital asset activity consisted of depreciation of $596,814 in the current year. General Fund Budgetary Highlights

Budgeted expenditures exceeded actual expenditures primarily because contingency and pond reserve expenditures were less than anticipated.

There were no amendments to the September 30, 2018 budget.

Debt Management

Governmental Activities debt includes the following:

	In March 2016, the District issued $7,620,000 Series 2016 Special Assessment Refunding Bonds. These bonds were issued to refund and redeem the Series 2004A and Series 2004B Special Assessment Bonds. The balance outstanding at September 30, 2018 is $6,975,000.

- 7 -

Live Oak No. 2 Community Development District MANAGEMENT’S DISCUSSION AND ANALYSIS For the Year Ended September 30, 2018

OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)

Economic Factors and Next Year’s Budget

Live Oak No. 2 Community Development District does not expect any economic factors to have any significant effect on the financial position or results of operations of the District in fiscal year 2019.

Request for Information

The financial report is designed to provide a general overview of Live Oak No. 2 Community Development District’s finances for all those with an interest. Questions concerning any of the information provided in this report or requests for additional information should be addressed to the Live Oak No. 2 Community Development District, Inframark Infrastructure Management Services, 210 N. University Drive, Suite 702, Coral Springs, FL 33071.

- 8 -

Live Oak No. 2 Community Development District STATEMENT OF NET POSITION September 30, 2018

	Governmental		
ASSETS		Activities		
				
Current Assets				
Cash and cash equivalents	$	307,737		
Investments at fair value		101,025		
Due from other governments		5,379		
Total Current Assets		414,141		
Non-current Assets				
Restricted:				
Investments, at fair value		451,645		
Capital assets, not being depreciated:				
Land and improvements		7,616,900		
Capital assets, being depreciated:				
Infrastructure		17,904,401		
Less: accumulated depreciation		(4,222,652)		
Total Non-current Assets		21,750,294		
Total Assets		22,164,435		
DEFERRED OUTFLOWS OF RESOURCES				
Deferred amount on refunding		179,529		
Total Assets and Deferred Outflows of Resources		22,343,964		
LIABILITIES				
Current Liabilities				
Accounts payable		5,769		
Accrued interest		96,265		
Bonds payable, current portion		320,000		
Total Current Liabilities		422,034		
Non-current Liabilities				
Bonds payable, net		6,652,436		
Total Liabilities		7,074,470		
NET POSITION				
Net investment in capital assets		14,781,909		
Restricted for debt service		82,978		
Unrestricted		404,607		
Total Net Position	$	15,269,494		

See accompanying notes to financial statements. - 9 -

Live Oak No. 2 Community Development District STATEMENT OF ACTIVITIES For the Year Ended September 30, 2018

								Net (Expense)		
						Program		Revenues and		
									Changes in		
						Revenues			Net Position		
						Charges for		Governmental		
Functions/Programs		Expenses		Services			Activities		
											
Governmental Activities										
General government	$	(102,308)		$	117,009	$	14,701		
Physical environment		(709,850)			129,279			(580,571)		
Interest on long-term debt		(254,690)			577,564			322,874		
Total Governmental Activities	$	(1,066,848)		$	823,852			(242,996)		
		General revenues:							
			Investment earnings				4,851		
		Change in Net Position				(238,145)		
		Net Position - October 1, 2017			15,507,639		
		Net Position - September 30, 2018		$	15,269,494		

See accompanying notes to financial statements.

-10-

Live Oak No. 2 Community Development District

BALANCE SHEET

GOVERNMENTAL FUNDS

September 30, 2018

								Total		
				Series 2016		Governmental		
		General		Debt Service			Funds		
ASSETS										
Cash and cash equivalents	$	307,737	$	-	$	307,737		
Investments, at fair value		101,025			-			101,025		
Due from other governments		1,614			3,765			5,379		
Restricted assets:										
Investments, at fair value		-			451,645			451,645		
Total Assets	$	410,376	$	455,410	$	865,786		
LIABILITIES AND FUND BALANCES										
										
Liabilities										
Accounts payable and accrued liabilities	$	5,769	$	-	$	5,769		
Fund Balances										
Restricted - debt service		-			455,410			455,410		
Assigned:										
Pond maintenance		170,751			-			170,751		
First quarter operations		52,831			-			52,831		
Unassigned		181,025			-			181,025		
Total Fund Balances		404,607			455,410			860,017		
Total Liabilities and Fund Balances	$	410,376	$	455,410	$	865,786		

See accompanying notes to financial statements.
-11-

Live Oak No. 2 Community Development District RECONCILIATION OF TOTAL GOVERNMENTAL FUND BALANCES TO NET POSITION OF GOVERNMENTAL ACTIVITIES September 30, 2018

Total Governmental Fund Balances

Amounts reported for governmental activities in the Statement of Net Position are different because:

Capital assets not being depreciated, land and improvements, used in governmental activities are not current financial resources and therefore, are not reported at the governmental fund level.

Capital assets being depreciated, infrastructure, $17,904,401, net of accumulated depreciation, $(4,222,652), used in governmental activities are not current financial resources and therefore, are not reported at the governmental fund level.

Long-term liabilities, including bonds payable, $(6,975,000), net of bond discounts, net, $2,564, are not due and payable in the current period and therefore, are not reported at the governmental fund level.

Deferred outflows of resources are not current financial resources and therefore, are not reported at the governmental fund level.

Accrued interest expense for long-term debt is not a current financial use and therefore, is not reported at the governmental fund level.

Net Position of Governmental Activities

$	860,017

7,616,900

13,681,749

(6,972,436)

179,529

(96,265) $  15,269,494

See accompanying notes to financial statements.

-12-

Live Oak No. 2 Community Development District

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE

GOVERNMENTAL FUNDS

For the Year Ended September 30, 2018

								Total		
				Series 2016		Governmental		
Revenues		General		Debt Service			Funds		
										
Special assessments	$	246,288	$	577,564	$	823,852		
Investment earnings		3,763			1,088			4,851		
Total Revenues		250,051			578,652			828,703		
Expenditures										
Current										
General government		102,308			-			102,308		
Physical environment		113,036			-			113,036		
Debt Service										
Principal		-			320,000			320,000		
Interest		-			238,324			238,324		
Other		-			7,792			7,792		
Total Expenditures		215,344			566,116			781,460		
Net change in fund balances		34,707			12,536			47,243		
Fund Balances - October 1, 2017		369,900			442,874			812,774		
Fund Balances - September 30, 2018	$	404,607	$	455,410	$	860,017		

See accompanying notes to financial statements.

-13-

Live Oak No. 2 Community Development District

RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
For the Year Ended September 30, 2018

Net Change in Fund Balances - Total Governmental Funds

Amounts reported for governmental activities in the Statement of Activities are different because:

Governmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of those assets is allocated over their estimated useful lives as depreciation. This is the amount of depreciation
in the current period.

Repayments of bond principal are expenditures in the governmental funds, but the repayments reduce long-term liabilities in the Statement of Net Position.

Deferred outflows of resources for refunding debt is recognized as a component of interest on long term debt in the Statement of Activities, but not in the governmental funds. This is the amount of interest in the current year period.

Amortization of bond discount reported in the Statement of Activities does not require the use of current financial resources and therefore, is not reported as an expenditure in governmental funds.

In the Statement of Activities, interest is accrued on outstanding bonds; whereas in governmental funds, interest expenditures are reported when due. This is the net amount between the prior year and current year accruals.

Change in Net Position of Governmental Activities

$	47,243

(596,814)

320,000

(11,456)

(155)

3,037

$	(238,145)

See accompanying notes to financial statements.

- 14-

Live Oak No. 2 Community Development District

STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES – BUDGET AND ACTUAL –

GENERAL FUND

For the Year Ended September 30, 2018

										Variance With		
										Final Budget		
		Original			Final			Actual			Positive		
Revenues		Budget			Budget						(Negative)		
													
Special assessments	$	245,807	$	245,807	$	246,288	$	481		
Investment earnings		-			-			3,763			3,763		
Total Revenues		245,807			245,807			250,051			4,244		
Expenditures													
Current													
General government		105,091			105,091			102,308			2,783		
Physical environment		140,716			140,716			113,036			27,680		
Total Expenditures		245,807			245,807			215,344			30,463		
Net change in fund balances		-			-			34,707			34,707		
Fund Balances - October 1, 2017		357,832			357,832			369,900			12,068		
Fund Balances - September 30, 2018	$	357,832	$	357,832	$	404,607	$	46,775		

See accompanying notes to financial statements.

-15-

Live Oak No. 2 Community Development District NOTES TO FINANCIAL STATEMENTS September 30, 2018

NOTE A – SUMMARY OF ACCOUNTING POLICIES

The financial statements of Live Oak No. 2 Community Development District (the “District”) have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The District's more significant accounting policies are described below.

1.	Reporting Entity

The District was established on April 29, 2002, in Hillsborough County, pursuant to the Uniform Community Development District Act of 1980, Chapter 190, Florida Statutes, as amended (the "Act"), and Hillsborough County under County Ordinance 02 -9, as a Community Development District. The District was established for the purposes of financing and managing the acquisition, construction, maintenance and operation of the infrastructure necessary for community development within its jurisdiction. The District is authorized to issue bonds for the purpose, among others, of financing, funding, planning, establishing, acquiring, constructing or re-constructing, enlarging or extending, equipping, operating and maintaining water management, water supply, sewer and waste water management, bridges or culverts, district roads, landscaping, street lights and other basic infrastructure projects within or without the boundaries of the Live Oak No. 2 Community Development District. The District is governed by a five-member Board of Supervisors, who are elected for four year terms. The District operates within the criteria established by Chapter 190.

As required by GAAP, these financial statements present the Live Oak No. 2 Community Development District (the primary government) as a stand-alone government. The reporting entity for the District includes all functions of government in which the District’s Board exercises oversight responsibility including, but not limited to, financial interdependency, selection of governing authority, designation of management, significant ability to influence operations and accountability for fiscal matters.

Based upon the application of the above- mentioned criteria as set forth by the Governmental Accounting Standards Board, the District has identified no component units.

2.  Measurement Focus and Basis of Accounting

The basic financial statements of the District are composed of the following:

	Government-wide financial statements Fund financial statements

	Notes to financial statements

-16-

Live Oak No. 2 Community Development District NOTES TO FINANCIAL STATEMENTS September 30, 2018

NOTE A – SUMMARY OF ACCOUNTING POLICIES (CONTINUED)

2.	Measurement Focus and Basis of Accounting (Continued)

a.	Government-wide Financial Statements

	Government-wide financial statements report all non-fiduciary information about the reporting government as a whole. These statements include all the governmental activities of the primary government. The effect of interfund activity has been removed from these statements.

	Governmental activities are supported by special assessments and investment earnings. Program revenues include charges for services, and payments made by parties outside of the reporting government’s citizenry if that money is restricted to a particular program. Program revenues are netted with program expenses in the statement of activities to present the net cost of each program.

	Amounts paid to acquire capital assets are capitalized as assets, rather than reported as an expenditure. Proceeds of long-term debt are recorded as liabilities in the government-wide financial statements, rather than as an other financing source.

	Amounts paid to reduce long-term indebtedness of the reporting government are reported as a reduction of the related liability, rather than as an expenditure.

b.	Fund Financial Statements

	The underlying accounting system of the District is organized and operated on the basis of separate funds, each of which is considered to be a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled.

	Fund financial statements for the primary government’s governmental funds are presented after the government-wide financial statements. These statements display information about major funds individually.

	Governmental Funds

	The District classifies fund balance according to Governmental Accounting Standards Board Statement 54 – Fund Balance Reporting and Governmental Fund Type Definitions. The Statement requires the fund balance for governmental funds to be reported in classifications that comprise a hierarchy based primarily on the extent to which the government is bound to honor constraints on the specific purposes for which amounts in those funds can be spent.

-17-

Live Oak No. 2 Community Development District NOTES TO FINANCIAL STATEMENTS September 30, 2018

NOTE A – SUMMARY OF ACCOUNTING POLICIES (CONTINUED)

2.	Measurement Focus and Basis of Accounting (Continued)

b.	Fund Financial Statements (Continued) Governmental Funds (Continued)

	The District has various policies governing the fund balance classifications.

	Nonspendable Fund Balance – This classification consists of amounts that cannot be spent because they are either not in spendable form or are legally or contractually required to be maintained intact.

	Restricted Fund Balance – This classification includes amounts that can be spent only for specific purposes stipulated by constitution, external resource providers, or through enabling legislation.

	Assigned Fund Balance – This classification consists of the Board of Supervisors’ intent to be used for specific purposes, but are neither restricted nor committed. The assigned fund balances can also be assigned by the District’s management company.

	Unassigned Fund Balance – This classification is the residual classification for the government’s general fund and includes all spendable amounts not contained in the other classifications. Unassigned fund balance is considered to be utilized first when an expenditure is incurred for purposes for which amounts in any of those unrestricted fund balance classifications could be used.

	Fund Balance Spending Hierarchy – For all governmental funds except special revenue funds, when restricted, committed, assigned, and unassigned fund balances are combined in a fund, qualified expenditures are paid first from restricted or committed fund balance, as appropriate, then assigned and finally unassigned fund balances.

	Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are considered to be available when they are collected within the current period or soon thereafter to pay liabilities of the current period. For this purpose, the District considers revenues to be available if they are collected within 60 days of the end of the current fiscal period.

	Expenditures generally are recorded when a liability is incurred, as under accrual accounting. Interest associated with the current fiscal period is considered to be an accrual item and so has been recognized as revenue of the current fiscal period.

-18-

Live Oak No. 2 Community Development District NOTES TO FINANCIAL STATEMENTS September 30, 2018

NOTE A – SUMMARY OF ACCOUNTING POLICIES (CONTINUED)

2.	Measurement Focus and Basis of Accounting (Continued)

b.	Fund Financial Statements (Continued) Governmental Funds (Continued)

	Under the current financial resources measurement focus, only current assets and current liabilities are generally included on the balance sheet. The reported fund balance is considered to be a measure of “available spendable resources”. Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they are said to present a summary of sources and uses of “available spendable resources” during a period.

	Because of their spending measurement focus, expenditure recognition for governmental fund types excludes amounts represented by non-current liabilities. Since they do not affect net current assets, such long-term amounts are not recognized as governmental fund type expenditures or fund liabilities.

	Amounts expended to acquire capital assets are recorded as expenditures in the year that resources are expended, rather than as fund assets. The proceeds of long-term debt are recorded as an other financing source rather than as a fund liability.

	Debt service expenditures are recorded only when payment is due.

3.	Basis of Presentation

a.	Governmental Major Funds

	General Fund – The General Fund is the District’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund.

	Series 2016 Debt Service Fund – Accounts for debt service requirements to retire the Series 2016 Special Assessments Refunding Bonds, which were used to refund the Series 2004 Special Assessment Bonds.

-19-

Live Oak No. 2 Community Development District NOTES TO FINANCIAL STATEMENTS September 30, 2018

NOTE A – SUMMARY OF ACCOUNTING POLICIES (CONTINUED)

4.	Assets, Liabilities, and Net Position or Equity

a.	Non-current Governmental Assets/Liabilities

	GASB Statement 34 requires that non-current governmental assets, such as land and buildings, and non-current governmental liabilities, such as general obligation bonds, due to developer and accrued compensated absences be reported in the governmental activities column in the government-wide Statement of Net Position.

b.	Cash and Investments

	Florida Statutes require state and local governmental units to deposit monies with financial institutions classified as "Qualified Public Depositories," a multiple financial institution pool whereby groups of securities pledged by the various financial institutions provide common collateral from their deposits of public funds. This pool is provided as additional insurance to the federal depository insurance and allows for additional assessments against the member institutions, providing full insurance for public deposits.

	The District is authorized to invest in those financial instruments as established by Section 218.415, Florida Statutes. The authorized investments consist of:

1.	Direct obligations of the United States Treasury;

2.	The Local Government Surplus Funds Trust or any intergovernmental investment pool authorized pursuant to the Florida Interlocal Cooperative Act of 1969;

3.	Interest-bearing time deposits or savings accounts in authorized qualified public depositories; and

4.	Securities and Exchange Commission, registered money market funds with the highest credit quality rating from a nationally recognized rating agency.

Cash equivalents include certificates of deposit and all highly liquid debt instruments with original maturities of three months or less and held in a qualified public depository as defined by Florida Statute 280.02.

c.	Restricted Assets

	Certain assets of the District and a corresponding liability or portion of net position is classified as restricted on the statement of net position because their use is limited either by law through constitutional provisions or enabling legislation; or by restrictions imposed externally by creditors. In a fund with both restricted and unrestricted assets, qualified expenses are considered to be paid first from restricted net position and then from unrestricted net position.

-	20 -

Live Oak No. 2 Community Development District NOTES TO FINANCIAL STATEMENTS September 30, 2018

NOTE A – SUMMARY OF ACCOUNTING POLICIES (CONTINUED)

4.	Assets, Liabilities, and Net Position or Equity (Continued)

d.	Capital Assets

	Capital assets, which include land and infrastructure, are reported in the applicable governmental activities column.

	The District defines capital assets as assets with an initial, individual cost of $5,000 or more and an estimated useful life in excess of one year. The valuation basis for all assets is historical cost.

	The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend its useful life are not capitalized.

	Major outlays for capital assets and improvements are capitalized as projects are constructed.

	Depreciation of capital assets is computed and recorded by utilizing the straight-line method. The estimated useful life of depreciable capital assets, infrastructure, is 30 years.

e.	Deferred Outflows of Resources

	Deferred outflows of resources represent a consumption of net position/fund balance that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The District only has one item that qualifies for reporting in this category. It is the deferred amount on refunding reported on the Statement of Net Position. A deferred amount on refunding results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt.

f.	Budgets

Budgets are prepared and adopted after public hearings for the governmental funds, pursuant to Chapter 190, Florida Statutes. The District utilizes the same basis of accounting for budgets as it does for revenues and expenditures in its various funds. The legal level of budgetary control is at the fund level. All budgeted appropriations lapse at year end. Formal budgets are adopted for the general and debt service funds. As a result, deficits in the budget columns of the accompanying financial statements may occur.

-21-

Live Oak No. 2 Community Development District NOTES TO FINANCIAL STATEMENTS September 30, 2018

NOTE	B – RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS

1.	Explanation of Differences Between the Governmental Fund Balance Sheet and the Government-wide Statement of Net Position

	“Total fund balances” of the District’s governmental funds, $860,017, differs from “net position” of governmental activities, $15,269,494, reported in the Statement of Net Position. This difference primarily results from the long-term economic focus of the Statement of Net Position versus the current financial resources focus of the governmental fund balance sheet. The effect of the difference is illustrated as follows.

	Capital related items

	When capital assets (not being depreciated that are to be used in governmental activities) are purchased or constructed, the cost of those assets is reported as expenditures in governmental funds. However, the Statement of Net Position included those capital assets among the assets of the District as a whole.

Land and improvements	$	7,616,900	
Infrastructure		17,904,401	
Less: accumulated depreciation		(4,222,652)	
Total	$	21,298,649	

Long-term debt transactions

Long-term liabilities applicable to the District’s governmental activities are not due and payable in the current period and accordingly are not reported as fund liabilities. All liabilities (both current and long-term) are reported in the Statement of Net Position. Balances at September 30, 2018 were:

Bonds payable	$	(6,975,000)	
Bond discount, net			2,564		
Total		$	(6,972,436)		

Deferred outflows of resources

Deferred outflows of resources applicable to the District’s governmental activities are not financial resources, and therefore, are not recognized at the governmental fund level.

Deferred amount on refunding, net	$	179,529

-22-

Live Oak No. 2 Community Development District NOTES TO FINANCIAL STATEMENTS September 30, 2018

NOTE	B – RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS (CONTINUED)

1.	Explanation of Differences Between the Governmental Fund Balance Sheet and the Government-wide Statement of Net Position (Continued)

	Accrued interest

	Accrued liabilities in the Statement of Net Position differ from the amount reported in governmental funds due to the accrued interest on bonds.

Accrued interest	$	(96,265)

2.	Explanation of Differences Between the Governmental Fund Operating Statements and the Statement of Activities

	The “net change in fund balances” for government funds, $47,243, differs from the “change in net position” for governmental activities, $(238,145), reported in the Statement of Activities. The difference arises primarily from the long-term economic focus of the Statement of Activities versus the current financial resources focus of the governmental funds. The effect of the difference is illustrated below.

	Capital related items

	When capital assets that are to be used in governmental activities are purchased or constructed, the resources expended for those assets are reported as expenditures in governmental funds. However, in the Statement of Activities, the costs of those assets is allocated over their estimated useful lives and reported as depreciation. As a result, fund balances decrease by the amount of financial resources expended, whereas net position decrease by the amount of depreciation charged for the period.

Depreciation	$	(596,814)

Long-term debt transactions

Repayments of bond principal are reported as expenditures in the governmental funds and, thus, have the effect of reducing fund balance because current financial resources have been used.

Debt principal payments	$	320,000		
Amortization of bond discount			(155)	
Total		$	319,845		

-23-

Live Oak No. 2 Community Development District NOTES TO FINANCIAL STATEMENTS September 30, 2018

NOTE	B – RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS (CONTINUED)

2.	Explanation of Differences Between the Governmental Fund Operating Statements and the Statement of Activities (Continued)

	Long-term debt transactions (Continued)

	Some expenses reported in the Statement of Activities do not require the use of current financial resources, therefore, are not reported as expenditures in governmental funds.

Net change in accrued interest payable	$	3,037		
Decrease in deferred amount on refunding			(11,456)		
Total		$	(8,419)		

NOTE C – CASH AND INVESTMENTS

All deposits are held in qualified public depositories and are included on the accompanying balance sheet as cash and investments.

Custodial Credit Risk – Deposits

Custodial credit risk is the risk that in the event of a bank failure, the District's deposits may not be returned to it. The District does not have a formal deposit policy for custodial credit risk; however, they follow the provisions of Chapter 280, Florida Statutes regarding deposits and investments. As of September 30, 2018, the District's bank balance was $307,746 and the carrying value was $307,737. Exposure to custodial credit risk was as follows. The District maintains all deposits in a qualified public depository in accordance with the provisions of Chapter 280, Florida Statutes, which means that all deposits are fully insured by Federal Depositors Insurance or collateralized under Chapter 280, Florida Statutes.

-24-

Live Oak No. 2 Community Development District NOTES TO FINANCIAL STATEMENTS September 30, 2018

NOTE C – CASH AND INVESTMENTS (CONTINUED)

As of September 30, 2018, the District had the following investments and maturities:

Investment		Maturities			Fair Value	
Commercial Paper		N/A	$	451,645	
Certificate of Depsit		N/A			101,025	
Total				$	552,670	

The District categorizes its fair value measurements within the fair value hierarchy recently established by generally accepted accounting principles. The fair value is the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. The District uses a market approach in measuring fair value that uses prices and other relevant information generated by market transactions involving identical or similar assets, liabilities, or groups of assets and liabilities.

Assets or liabilities are classified into one of three levels. Level 1 is the most reliable and is based on quoted price for identical assets, or liabilities, in an active market. Level 2 uses significant other observable inputs when obtaining quoted prices for identical or similar assets, or liabilities, in markets that are not active. Level 3 is the least reliable and uses significant unobservable inputs that use the best information available under the circumstances, which includes the District’s own data in measuring unobservable inputs.

Based on the criteria in the preceding paragraph, the investments in Commercial Paper are Level 1 assets.

Interest Rate Risk

The District does not have a formal investment policy that limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates.

Credit Risk

The District's investments in treasury funds, commercial paper, and government loans are limited by state statutory requirements and bond compliance. The District has no investment policy that would further limit its investment choices. As of September 30, 2018, the District's investments in Commercial Paper were rated A-1+ by Standard & Poor's.

Concentration of Credit Risk
The District places no limit on the amount it may invest in any one fund. The investments in Commercial Paper are 82% and the certificate of deposit is 18% of the District’s total investments.

The types of deposits and investments and their level of risk exposure as of September 30, 2018 were typical of these items during the fiscal year ended. The District considers any decline in fair value for certain investments to be temporary.

-25-

Live Oak No. 2 Community Development District NOTES TO FINANCIAL STATEMENTS September 30, 2018

NOTE D – SPECIAL ASSESSMENT REVENUES

Special assessment revenues recognized for the 2017-2018 fiscal year were levied in October 2017. All taxes are due and payable on November 1 or as soon as the assessment roll is certified and delivered to the Tax Collector. Per Section 197.162, Florida Statutes, discounts are allowed for early payment at the rate of 4% in November, 3% in December, 2% in January, and 1% in February. Taxes paid in March are without discount.

All unpaid taxes become delinquent as of April 1. Virtually all unpaid taxes are collected via the sale of tax certificates on or prior to, June 1; therefore, there were no material taxes receivable at fiscal year end.

NOTE E – CAPITAL ASSETS

Capital Asset activity for the year ended September 30, 2018 was as follows:

			October 1,								September 30,		
			2017									2018		
Governmental Activities:			Balance			Additions		Deletions				Balance		
														
Capital assets, not being depreciated:													
Land and improvements	$	7,616,900	$	-	$	-	$	7,616,900		
Capital assets, being depreciated:													
Infrastructure		17,904,401			-			-			17,904,401		
Less accumulated depreciation for:													
Infrastructure		(3,625,838)			(596,814)			-			(4,222,652)		
Total Capital Assets Depreciated, Net		14,278,563			(596,814)			-			13,681,749		
Governmental Activities Capital Assets	$	21,895,463	$	(596,814)	$	-	$	21,298,649		

Depreciation in the amount of $596,814 was charged to physical environment.

-26-

Live Oak No. 2 Community Development District NOTES TO FINANCIAL STATEMENTS September 30, 2018

NOTE F – LONG-TERM DEBT

The following is a summary of activity in the long-term debt of the District for the year ended
September 30, 2018:

	Balance										Balance		
	October 1,										September 30,		
Special Assessment Refunding	2017		Additions				Deletions	2018		
															
Bonds, Series 2016	$  7,295,000		$	-			$   320,000			$  6,975,000		
															
Long-term debt is comprised of the following:														
Special Assessment Refunding Bonds														
$7,620,000 Series 2016 Special Assessment Refunding Bonds									
due  in  annual  principal  installments  beginning  May  2017.									
Interest at various rates between 2.25% and 4% is due May and									
November beginning May 2016. Current portion is $320,000.				$	6,975,000				
Bond discount, net								(2,564)				
Bonds Payable, Net						$	6,972,436				

The annual requirements to amortize the principal and interest of bonded debt outstanding as of
September 30, 2018 are as follows:

Year Ending										
September 30,			Principal			Interest			Total	
2019	$	320,000	$	231,036	$	551,036	
2020			330,000			223,836			553,836	
2021			335,000			216,411			551,411	
2022			345,000			209,711			554,711	
2023			355,000			201,949			556,949	
2024-2028			1,930,000			850,998			2,780,998	
2029-2033			2,310,000			486,515			2,796,515	
2034-2035			1,050,000			63,400			1,113,400	
Totals	$	6,975,000	$	2,483,856	$	9,458,856	

-27-

Live Oak No. 2 Community Development District NOTES TO FINANCIAL STATEMENTS September 30, 2018

NOTE F – LONG-TERM DEBT (CONTINUED)

Summary of Significant Bonds Resolution Terms and Covenants

Special Assessment Refunding Bonds, Series 2016

Depository Funds – The bond resolution establishes certain funds and determines the order in which revenues are to be deposited into these funds. A description of the significant funds, including their purposes, is as follows:

1.	Reserve Fund – The Series 2016 Reserve Account is funded from the proceeds of the Bonds in an amount equal to fifty percent of the Maximum Annual Debt Service Requirement for all Outstanding Series 2016 Bonds. Monies held in the reserve accounts will be used only for the purposes established in the Trust Indenture.

Reserve	Reserve

Balance	Requirement

Series 2016 Special Assessment Refunding Bonds	$	276,199	$	276,167

NOTE G – RISK MANAGEMENT

The government is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; and natural disasters for which the government carries commercial insurance.

-28-

r~tt
CO:,

Berger, Toombs,

Gaines & Frank

Certified Public Accountants	PL

600 Citrus Avenue

Suite 200

Fort Pierce, Florida 34950

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

Elam,

INDEPENDENT AUDITOR'S 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

To the Board of Supervisors
Live Oak No. 2 Community Development District
Hillsborough County, Florida

We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of Live Oak No. 2 Community Development District, as of and for the year ended September 30, 2018, and the related notes to the financial statements, and have issued our report thereon dated May 31, 2019.

Internal Control Over Financial Reporting

In planning and performing our audit, we considered Live Oak No. 2 Community Development District's internal control over financial reporting to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of Live Oak No. 2 Community Development District’s internal control. Accordingly, we do not express an opinion on the effectiveness of Live Oak No. 2 Community Development District's internal control over financial reporting.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

Fort Pierce / Stuart

Member AICPA	Member AICPA -Division29- For CPA Firms

Private Companies Practice Section

Member

FICPA

~~tt

,OJ

Berger, Toombs, Gaines & Frank

CertifiedPublicAccountants	PL

Elam,

To the Board of Supervisors
Live Oak No. 2 Community Development District
Hillsborough County, Florida

Compliance and Other Matters

As part of obtaining reasonable assurance about whether Live Oak No. 2 Community Development District's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of this Report

The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Berger, Toombs, Elam, Gaines & Frank
Certified Public Accountants
Fort Pierce, Florida

May 31, 2019

-30-

r~tt
CO:,

Berger, Toombs,

Gaines & Frank

Certified Public Accountants	PL

600 Citrus Avenue

Suite 200

Fort Pierce, Florida 34950

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

Elam,

MANAGEMENT LETTER

To the Board of Supervisors
Live Oak No. 2 Community Development District

Hillsborough County, Florida

Report on the Financial Statements

We have audited the financial statements of the Live Oak No. 2 Community Development District as of and for the year ended September 30, 2018, and have issued our report thereon dated May 31, 2019.

Auditor’s Responsibility

We conducted our audit in accordance with auditing standards generally accepted in the United States; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States and Chapter 10.550, Rules of the Florida Auditor General.

Other Reports and Schedule

We have issued our Independent Auditor’s 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 and our Independent Auditor’s Report on an examination conducted in accordance with AICPA Professionals Standards, AT- C Section 315 regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in that report, which is dated May 31, 2019, should be considered in conjunction with this management letter.

Prior Audit Findings

Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective actions have been made to address findings and recommendations made in the preceding financial audit report. There were no findings or recommendations made in the preceding financial audit report.

Financial Condition

Section 10.554(1)(i)5.a. and 10.556(7), Rules of the Auditor General, requires us to apply appropriate procedures and communicate the results of our determination as to whether or not Live Oak No. 2 Community Development District has met one or more of the conditions described in Section 218.503(1), Florida Statutes, and to identify the specific conditions met. In connection with our audit, we determined that the Live Oak No. 2 Community Development District did not meet any of the conditions described in Section 218.503(1), Florida Statutes.

	Fort Pierce / Stuart			
Member AICPA	Division For	CPA Firms		
	Member AICPA - 31 -			
	Private Companies Practice Section		

Member

FICPA

~~tt

,OJ

Berger, Toombs, Gaines & Frank

CertifiedPublicAccountants	PL

Elam,

To the Board of Supervisors
Live Oak No. 2 Community Development District

Pursuant to Sections 10.554(1)(i)5.c. and 10.556(8), Rules of the Auditor General, we applied financial conditions assessment procedures as of September 30, 2018 for the Live Oak No. 2 Community Development District. It is management’s responsibility to monitor the Live Oak No. 2 Community Development District’s financial condition; our financial condition assessment was based in part on the representations made by management and the review of the financial information provided by the same.

Section 10.554(1)(i)2., Rules of the Auditor General, requires that we communicate any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations.

Additional Matters

Section 10.554(1)(i)3., Rules of the Auditor General, requires us to communicate noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit, we did not note any such findings.

Purpose of this Letter

Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, the Board of Supervisors, and applicable management, and is not intended to be and should not be used by anyone other than these specified parties.

Berger, Toombs, Elam, Gaines & Frank
Certified Public Accountants PL

Fort Pierce, Florida

May 31, 2019

-32-

r~tt
CO:,

Berger, Toombs,

Gaines & Frank

Certified Public Accountants	PL

600 Citrus Avenue

Suite 200

Fort Pierce, Florida 34950

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

Elam,

INDEPENDENT ACCOUNTANT’S REPORT/COMPLIANCE

WITH SECTION 218.415, FLORIDA STATUTES

To the Board of Supervisors
Live Oak No. 2 Community Development District

Hillsborough County, Florida

We have examined Live Oak No. 2 Community Development District's compliance with Section 218.415, Florida Statutes during the year ended September 30, 2018. Management is responsible for Live Oak No. 2 Community Development District’s compliance with those requirements. Our responsibility is to express an opinion on Live Oak No. 2 Community Development District’s compliance based on our examination.

Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about Live Oak No. 2 Community Development District’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on Live Oak No. 2 Community Development District’s compliance with the specified requirements.

In our opinion, Live Oak No. 2 Community Development District complied, in all material respects, with the aforementioned requirements during the year ended September 30, 2018.

Berger, Toombs, Elam, Gaines & Frank
Certified Public Accountants PL

Fort Pierce, Florida

May 31, 2019

Member AICPA

Member

Private

Fort Pierce / Stuart			
-33-	CPA Firms		
AICPA Division For			
Companies Practice Section		

Member

FICPA