Crosswinds East Community Development District Proposer DiBartolomeo, McBee, Hartley & Barnes, P.A. Certified Public Accountants 2222 Colonial Road, Suite 200 Fort Pierce, Florida 34950 (772) 461-8833 591 SE Port St. Lucie Boulevard Port Saint Lucie, Florida 34984 (772) 878-1952 Contact: Jim Hartley, CPA Principal TABLE OF CONTENTS Letter of Transmittal Professional Qualifications  Professional Staff Resources ................................................................................................. 1-2  Current and Near Future Workload ....................................................................................... 2  Identification of Audit Team .................................................................................................... 2  Resumes ................................................................................................................................. 3-5  Governmental Audit Experience .............................................................................................. 6 Additional Data  Procedures for Ensuring Quality Control & Confidentiality ................................................... 7  Independence ......................................................................................................................... 7-8  Computer Auditing Capabilities .............................................................................................. 8  Contracts of Similar Nature ..................................................................................................... 9 Technical Approach  Agreement to Meet or Exceed the Performance Specifications ........................................... 10  Tentative Audit Schedule .................................................................................................... 11  Description of Audit Approach ...................................................................................... 12-15  Proposed Audit Fee ............................................................................................................. 16 DMHB DIBARTOLOMEO, MCBEE, HARTLEY & BARNES, P.A. CERTIFIED PUBLIC ACCOUNTANTS Crosswinds East Community Development District Audit Selection Committee Dear Committee Members: We are pleased to have this opportunity to present the qualifications of DiBartolomeo, McBee, Hartley & Barnes, P.A. (DMHB) to serve as Crosswinds East Community Development District’s independent auditors. The audit is a significant engagement demanding various professional resources, governmental knowledge and expertise, and, most importantly, experience serving Florida local governments. DMHB understands the services required and is committed to performing these services within the required time frame. We have the staff available to complete this engagement in a timely fashion. We audit several entities across the State making it feasible to schedule and provide services at the required locations. Proven Track Record— Our clients know our people and the quality of our work. We have always been responsive, met deadlines, and been willing to go the extra mile with the objective of providing significant value to mitigate the cost of the audit. This proven track record of successfully working together to serve governmental clients will enhance the quality of services we provide. Experience—DMHB has a history of providing quality professional services to an impressive list of public sector clients in Florida. We currently serve a large number of public sector entities in Florida, including cities, villages, special districts, as well as a large number of community development districts. Our firm has performed in excess of 100 community development district audits. In addition, our senior management team members have between 25 and 35 years experience in serving Florida governments. DMHB is a recognized leader in providing services to governmental and non-profit agencies within the State of Florida. Through our experience in performing audits, we have been able to increase our audit efficiency and therefore reduce cost. We have continually passed this cost saving on to our clients and will continue to do so in the future. As a result of our experience and expertise, we have developed an effective and efficient audit approach designed to meet or exceed the performance specifications in accordance with audit standards generally accepted in the United States of America, the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States with minimal disruption to your operations. Our firm has frequent technical updates to keep our personnel informed and up to date on all changes that are occurring within the industry. 2222 Colonial Road, Suite 200 Fort Pierce, Florida 34950772-461-8833  Fax: 772-461-8872 591 S.E. Port St. Lucie Blvd., Port St. Lucie, Florida 34984772-878-1952Fax: 772-878-1709 Member AICPA Member AICPA Division for CPA Firms Member AICPA Private Company Practice Section WWW.DMHBCPA.NET Timeliness – In order to meet the Districts needs, we will perform interim internal control testing by January 31st from unaudited preliminary general ledgers provided. The remaining testing will be completed no later than May 1st. We will also review all minutes and subsequent needs related to the review of the minutes by January 31st. Follow up review will be completed as necessary. Communication and Knowledge Sharing— Another driving force behind our service approach is frequent, candid and open communication with management with no surprises. During the course of the audit, we will communicate with management on a regular basis to provide you with a status report on the audit and to discuss any issues that arise, potential management letter comments, or potential audit differences. In the accompanying proposal, you will find additional information upon which you can evaluate DMHB’s qualifications. Our full team is in place and waiting to serve you. Please contact us at 2222 Colonial Road, Suite 200 Fort Pierce, FL 34950. Our phone number is (772) 461-8833. We look forward to further discussion on how our team can work together with you. Very truly yours, DiBartolomeo, McBee, Hartley & Barnes, P.A. PROFESSIONAL QUALIFICATIONS DiBartolomeo, McBee, Hartley & Barnes, P.A. is a local public accounting firm with offices in the cities of Fort Pierce and Port St. Lucie. The firm was formed in 1982.  Professional Staff Resources Our services will be delivered through personnel in both our Port St. Lucie and Ft. Pierce offices, located at 591 S.E. Port St. Lucie Blvd., Port St. Lucie, FL 34984 and 2222 Colonial Road, Suite 200, Fort Pierce, Florida 34950, respectively. DMHB has a total of 19 professional staff including 9 with extensive experience serving governmental entities. Professional Staff Number of Classification Professionals Partner 4 Managers 2 Senior 2 Staff 11 19 DiBartolomeo, McBee, Hartley & Barnes provides a variety of accounting, auditing, tax litigation support, estate planning, and consulting services. Some of the governmental, non-profit accounting, auditing and advisory services currently provided to clients include:  Annual financial and compliance audits including Single Audits of State and Federal financial assistance programs under the OMB A-133 audit criteria  Issuance of Comfort Letters, consent letters, and parity certificates in conjunction with the issuance of tax-exempt debt obligations, including compiling financial data and interim period financial statement reviews  Assisting in compiling historical financial data for first-time and subsequent submissions for the GFOA Certificate of Achievement for Excellence in Financial Reporting PROFESSIONAL QUALIFICATIONS (CONTINUED)  Professional Staff Resources (Continued)  Audits of franchise fees received from outside franchisees  Preparation of annual reports to the State Department of Banking and Finance  Audits of Internal Controls – Governmental Special Project  Assistance with Implementation of current GASB pronouncements  Current and Near Future Workload In order to better serve and provide timely and informative financial data, we have comprised an experienced audit team. Our present and future workloads will permit the proposed audit team to perform these audits within the time schedule required and meet all deadlines.  Identification of Audit Team The team is composed of people who are experienced, professional, and creative. They fully understand your business and will provide you with reliable opinions. In addition, they will make a point to maintain ongoing dialogue with each other and management about the status of our services. The auditing firm you select is only as good as the people who serve you. We are extremely proud of the outstanding team we have assembled for your engagement. Our team brings many years of relevant experience coupled with the technical skill, knowledge, authority, dedication, and most of all, the commitment you need to meet your government reporting obligations and the challenges that will result from the changing accounting standards. A flow chart of the audit team and brief resumes detailing individual team members’ experience in each of the relevant areas follow. Jim Hartley, CPA – Engagement Partner (resume attached) Will assist in the field as main contact Jay McBee, CPA – Technical Reviewer (resume attached) Christine Kenny, CPA – Senior (resume attached) Jim Hartley Partner – DiBartolomeo, McBee, Hartley & Barnes Experience and Training Jim has over 35 years of public accounting experience and would serve as the engagement partner. His experience and training include: • 35 years of non-profit and governmental experience. • Specializing in serving entities ranging from Government to Associations and Special District audits. • Has performed audits and advisory services for a variety of public sector entities. • Has extensive experience performing audits of federal grant recipients in accordance with the Single Audit Act and the related Office of Management and Budget (OMB) guidelines. • Experienced in maintaining the GFOA Certificate of Achievement. • 120 hours of CPE credits over the past 3 years. Recent Engagements Has provided audit services on governmental entities including towns, villages, cities, counties, special districts and community development districts. Jim has assisted with financial statement preparation, system implementation, and a variety of services to a wide range of non-profit and governmental entities. Jim currently provides internal audit and consulting services to governmental entities and non-profit agencies to assist in implementing and maintaining “best practice” accounting policies and procedures. Jim provides auditing services to the Fort Pierce Utilities Authority, St. Lucie County Fire District, City of Port St. Lucie, Tradition CDD #1 – 10, Southern Groves CDD #1-6, Multiple CDD audits, Town of St. Lucie Village, Town of Sewall’s Point, Town of Jupiter Island along with several other entities, including Condo and Homeowner Associations. Education and Registrations • Bachelor of Science in Accounting – Sterling College. • Certified Public Accountant Professional Affiliations • Member of the American Institute of Certified Public Accountants • Member of the Florida Institute of Certified Public Accountants • Member of the Florida Government Finance Officers Association Volunteer Service • Treasurer & Executive Board - St. Lucie County Chamber of Commerce • Budget Advisory Board - St. Lucie County School District • Past Treasurer - Exchange Club for Prevention of Child Abuse & Exchange Foundation Board • Board of Directors – State Division of Juvenile Justice Jay L. McBee Partner – DiBartolomeo, McBee, Hartley & Barnes Experience and Training Jay has over 45 years of public accounting experience and would serve as the technical reviewer on the audit. His experience and training include: • 45 years of government experience. • Specializing in serving local government entities. • Has performed audits and advisory services for a variety of public sector entities including counties, cities, special districts, and school districts. • Has experience performing audits of federal grant recipients in accordance with the Single Audit Act and the related Office of Management and Budget (OMB) guidelines, including Circular A-133 and the Rules of the Auditor General. • Has extensive experience in performing pension audits. • Experienced in developing and maintaining the GFOA Certificate of Achievement. • 120 Hours of relevant government CPE credits over the past 3 years. • Experience in municipal bond and other governmental-financing options and offerings. Recent Engagements Has provided auditing services on local governmental entities including towns, villages, cities, counties, special district and community development districts. Jay has assisted with financial preparation, system implementation, and a variety of government services to a wide range of governmental entities. Jay currently provides auditing services to the City of Port St. Lucie, City of Okeechobee Pension Trust Funds, St. Lucie County Fire District Pension funds, along with several other non-profit and governmental entities. Education and Registrations • Bachelor of Science in Accounting and Quantitative Business Management – West Virginia University. • Certified Public Accountant Professional Affiliations • Member of the American Institute of Certified Public Accountants • Member of the Florida Institute of Certified Public Accountants • Member of the Florida Government Finance Officers Association Volunteer Service • Member of the St. Lucie County Citizens Budget Committee • Finance committee for the First United Methodist Church • Treasurer of Boys & Girls Club of St. Lucie County Christine M. Kenny, CPA Senior Staff – DiBartolomeo, McBee, Hartley & Barnes Experience and training Christine has over 18 years of public accounting experience and would serve as a senior staff for the Constitutional Officers. Her experience and training include: • 18 years of manager and audit experience. • Has performed audits and advisory services for a variety of public sector entities including counties, cities, towns and special districts. • Has experience performing audits of federal grant recipients in accordance with the Single Audit Act and the related Office of Management and Budget (OMB) guidelines, including Circular A-133 and the Rules of the Auditor General. • 100 hours of relevant government CPE credits over the past 3 years. Recent Engagements Has provided audit services on governmental entities including towns, villages, cities and special districts. Christine has assisted with financial statement preparation, system implementation, and a variety of services to a wide range of non-profit and governmental entities. Christine currently provides services to multiple agencies to assist in implementing and maintaining “best practice” accounting policies and procedures. Engagements include St. Lucie County Fire District, City of Fort Pierce, Town of Sewall’s Point, and Town of St. Lucie Village. Education and Registrations • Bachelor of Science in Accounting – Florida State University • Professional Affiliations • Active Member of the Florida Institute of Certified Public Accountants • Active Member of the American Institute of Certified Public Accountants • Member of the Florida Government Finance Officers Association PROFESSIONAL QUALIFICATIONS (CONTINUED)  Governmental Audit Experience DiBartolomeo, McBee, Hartley & Barnes, P.A., through its principals and members, has provided continuous in-depth professional accounting, auditing, and consulting services to local government units, nonprofit organizations, and commercial clients. Our professionals have developed considerable expertise in performing governmental audits and single audits and in preparing governmental financial statements in conformance with continually evolving GASB pronouncements, statements, and interpretations. All of the public sector entities we serve annually are required to be in accordance with GASB pronouncements and government auditing standards. We currently perform several Federal and State single audits in compliance with OMB Circular A- 133 and under the Florida Single Audit Act. Our professionals are also experienced in assisting their clients with preparing Comprehensive Annual Financial Reports (GFOA). All work performed by our firm is closely supervised by experienced certified public accountants. Only our most seasoned CPA’s perform consulting services. Some of the professional accounting, auditing, and management consulting services currently provided to our local governmental clients include:  Annual financial and compliance audits including Single Audits of State and Federal financial assistance programs under OMB A-133 audit criteria and the Florida Single Audit Act  Assisting in compiling historical financial data for first-time and supplemental submissions for GFOA Certificate of Achievement of Excellence in Financial Reporting  Audits of franchise fees received from outside franchisees  Assistance with Implementation of GASB-34  Internal audit functions  Fixed assets review and updating cost/depreciation allocations and methods ADDITIONAL DATA  Procedures for Ensuring Quality Control & Confidentiality Quality control in any CPA firm can never be taken for granted. It requires a continuing commitment to professional excellence. DiBartolomeo, McBee, Hartley & Barnes is formally dedicated to that commitment. In an effort to continue to maintain the standards of working excellence required by our firm, DiBartolomeo, McBee, Hartley & Barnes, P.A. joined the Quality Review Program of the American Institute of Certified Public Accountants. To be a participating member firm, a firm must obtain an independent compliance review of its quality control policies and procedures to ascertain the firm’s compliance with existing auditing standards on the applicable engagements. The scope of peer review is comprehensive in that it specifically reviews the following quality control policies and procedures of the participating firm:  Professional, economic, and administrative independence  Assignment of professional personnel to engagements  Consultation on technical matters  Supervision of engagement personnel  Hiring and employment of personnel  Professional development  Advancement  Acceptance and continuance of clients  Inspection and review system  Independence Independence is a hallmark of our profession. We encourage our staff to use professional judgment in situations where our independence could be impaired or the perception of a conflict of interest might exist. In the governmental sector, public perception is as important as professional standards. Therefore, independent auditors must exercise utmost care in the performance of their duties. Our firm has provided continuous certified public accounting services in the government sector for 31 years, and we are independent of the Community Development Districts as defined by the following rules, regulations, and standards: ADDITIONAL DATA (CONTINUED)  Independence (Continued)  Au Section 220 – Statements on Auditing Standards issued by the American Institute of Certified Public Accountants  ET Sections 101 and 102 – Code of Professional Conduct of the American Institute of Certified Public Accountants  Chapter 21A-21, Florida Administrative Code  Section 473.315, Florida Statutes  Government Auditing Standards, issued by the Comptroller General of the United States  Computer Auditing Capabilities DiBartolomeo, McBee, Hartley & Barnes’ strong computer capabilities as demonstrated by our progressive approach to computer auditing and extensive use of microcomputers. Jay McBee is the MIS partner for DMHB. Jay has extensive experience in auditing and evaluating various computer systems and would provide these services in this engagement. We view the computer operation as an integral part of its accounting systems. We would evaluate the computer control environment to:  Understand the computer control environment’s effect on internal controls  Conclude on whether aspects of the environment require special audit attention  Make preliminary determination of comments for inclusion in our management letter This evaluation includes:  System hardware and software  Organization and administration  Access Contracts of Similar Nature within References Client Years Annual Audit In Accordance With GAAS Engagement Partner Incl. Utility Audit/ Consulting GFOA Cert. GASB 34 Implementation & Assistance Total Hours St. Lucie County Fire District Karen Russell, Clerk-Treasurer (772)462-2300 1984 - Current √ Jim Hartley √ 250-300 City of Fort Pierce Johnna Morris, Finance Director (772)-460-2200 2005- current √ Mark Barnes √ √ 800 Fort Pierce Utilities Authority Nina Hurtubise, Finance Director (772)-466-1600 2005- current √ Jim Hartley √ √ √ 600 Town of St. Lucie Village Diane Robertson, Town Clerk (772) 595-0663 1999 – current √ Jim Hartley √ 100 City of Okeechobee Pension Trust Funds Marita Rice, Supervisor of Finance (863)763-9460 1998 – current √ Jay McBee 60 St. Lucie County Fire District 175 Pension Trust Fund Chris Bushman , Captain (772) 462-2300 1990 – current √ Jay McBee 60 Tradition Community Development District 1-10 Alan Mishlove,District Finance Manager (407)382-3256 2002 - current √ Jim Hartley √ 350 Legends Bay Community Development District Patricia Comings-Thibault (321)263-0132 2013- current √ Jim Hartley 50 Union Park Community Development District Patricia Comings-Thibault (321)263-0132 2013- current √ Jim Hartley 50 Deer Island Community Development District Patricia Comings-Thibault (321)263-0132 2013- current √ Jim Hartley 50 Park Creek Community Development District Patricia Comings-Thibault (321)263-0132 2013- current √ Jim Hartley 50 Waterleaf Community Development District Patricia Comings-Thibault (321)263-0132 2013- current √ Jim Hartley 50 TECHNICAL APPROACH a. An Express Agreement to Meet or Exceed the Performance Specifications. 1. The audit will be conducted in compliance with the following requirements: a. Rules of the Auditor General for form and content of governmental audits b. Regulations of the State Department of Banking and Finance c. Audits of State and Local Governmental Units-American Institute of Certified Public Accountants. 2. The audit report shall contain the opinion of the auditor in reference to all financial statements, and an opinion reflecting compliance with applicable legal provisions. 3. We will also provide the required copies of the audit report, the management letter, any related reports on internal control weaknesses and one copy of the adjusting journal entries and financial work papers. 4. The auditor shall, at no additional charge, make all related work papers available to any Federal or State agency upon request in accordance with Federal and State Laws and Regulations. 5. We will work in cooperation with the District, its underwriters and bond council in regard to any bond issues that may occur during the term of the contract. 6. The financial statements shall be prepared in conformity with Governmental Accounting Standards Board Statement Number 34, 63 and 65. We will commit to issuing the audit for each Fiscal year by June 1st of the following year. In order to ensure this we will perform interim internal control testing as required by January 31st from unaudited preliminary general ledgers provided. The remaining testing will be completed no later than May 1st. We will also review all minutes and subsequent needs related to the review of the minutes by January 30th. Follow up review will be completed as necessary. b. A Tentative Schedule for Performing the Key phases of the Audit Audit Phase and Tasks Oct. N Nov. Dec. Jan. Feb. Mar. Apr. I. Planning Phase: Meetings and discussions with Crosswinds East Community Development District personnel regarding operating, accounting and reporting matters Discuss management expectations, strategies and objectives Review operations Develop engagement plan Study and evaluate internal controls Conduct preliminary analytical review II. Detailed Audit Phase: Conduct final risk assessment Finalize audit approach plan Perform substantive tests of account balances Perform single audit procedures (if applicable) Perform statutory compliance testing III. Closing Phase: Review subsequent events, contingencies and commitments Complete audit work and obtain management representations Review proposed audit adjustments with client IV. Reporting Phase: Review or assist in preparation of financial statement for Crosswinds East Community Development District Prepare management letter and other special reports Exit conference with Crosswinds East Community Development District officials and management Delivery of final reports b. SPECIFIC AUDIT APPROACH Our partners are not strangers who show up for an entrance conference and an exit conference. We have developed an audit plan that allows the partners to directly supervise our staff in the field. By assigning two partners to the audit, we will have a partner on-site for a significant portion of the fieldwork. This also gives the District an additional contact individual for questions or problems that may arise during the audit. The scope of our services will include a financial, as well as, a compliance audit of the District’s financial statements. Our audit will be conducted in accordance with auditing standards generally accepted in the United States and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Additionally, our audit will be conducted in accordance with the provisions of Chapter 10.550, Rules of the Auditor General, which govern the conduct of local government entity audits performed in the State of Florida. Our audit approach places emphasis on the accounting information system and how the data is recorded, rather than solely on the verification of numbers on a financial statement. This approach enables us to:  Maximize our understanding of the District’s operating environment  Minimize time required conducting the audit since we start with broad considerations and narrow to specific audit objectives in critical areas Our audit approach consists of four phases encompassing our audit process:  Planning Phase  Detailed Audit Phase  Closing Phase  Reporting Planning Phase Meetings and Expectations: Our first step in this phase will be to set up a planning meeting with the financial and operating management of Crosswinds East Community Development District. Our goal here is to eliminate “surprises.” By meeting with responsible officials early on we can discuss significant accounting policies, closing procedures and timetables, planned timing of our audit procedures and expectations of our work. This will also be the starting point for our discussions with management related to SAS No. 99-Consideration of Fraud in a Financial Statement Audit. Inquiries will be made regarding managements knowledge of fraud and on management’s views regarding the risk of fraud. Review Operations and Develop Engagement Plan It is critical that we understand the District’s operating environment. To do this we will obtain and review such items as, organizational charts, recent financial statements, budget information, major contracts and lease agreements. We will also gather other information necessary to increase our understanding of the District’s operations, organization, and internal control. Study and Evaluate Internal Control As part of general planning, we will obtain an understanding and assessment of the District’s control environment. This assessment involves a review of management’s operating style, written internal control procedures, and the District’s accounting system. The assessment is necessary to determine if we can rely on control procedures and thus reduce the extent of substantive testing. We then test compliance with established control procedures by ascertaining that the significant strengths within the system are functioning as described to us. Generally, transactions are selected and reviewed in sufficient detail to permit us to formulate conclusions regarding compliance with control procedures and the extent of operation compliance with pertinent laws and regulations. This involves gaining an understanding of the District’s procedures, laws and regulations, and testing systems for compliance by examining contracts, invoices, bid procedures, and other documents. After testing controls, we then evaluate the results of those tests and decide whether we can rely on controls and thus reduce other audit procedures. Conduct Preliminary Analytical Review Also during the planning stage, we undertake analytical procedures that aid us in focusing our energies in the right direction. We call these analytical reviews. A properly designed analytical review can be a very effective audit procedure in audits of governmental units. Analytical reviews consist of more than just a comparison of current-year actual results to prior-year actual results. Very effective analytical review techniques include trend analysis covering a number of years and comparisons of information not maintained totally within the financial accounting system, such as per capita information, prevailing market interest rates, housing statistics, etc. Some examples of effective analytical reviews performed together and/or individually include:  Comparison of current-year actual results with current-year budget for the current and past years with investigation of significant differences and/or trends  Trend analysis of the percentage of current-year revenues to current-year rates for the current and previous years with investigation of significant changes in the collection percentage  Trend analysis of the percentage of expenditures by function for the current and previous years with investigation of significant changes in percentages by department  Monthly analysis of receipts compared to prior years to detect trends that may have audit implications Conclusions reached enable us to determine the nature, timing and extent of other substantive procedures. Detailed Audit Phase Conduct Final Risk Assessment and Prepare Audit Programs Risk assessment requires evaluating the likelihood of errors occurring that could have a material affect on the financial statements being audited. The conclusions we reach are based on many evaluations of internal control, systems, accounts, and transactions that occur throughout the audit. After evaluating the results of our tests of control and our final risk assessment we can develop detailed audit programs. Perform Substantive Tests of Account Balances These tests are designed to provide reasonable assurance as to the validity of the information produced by the accounting system. Substantive tests involve such things as examining invoices supporting payments, confirmation of balances with independent parties, analytical review procedures, and physical inspection of assets. All significant accounts will be subjected to substantive procedures. Substantive tests provide direct evidence of the completeness, accuracy, and validity of data. Perform Single Audit Procedures (if applicable) During the planning phase of the audit we will request and review schedules of expenditures of federal awards and state financial assistance. These schedules will be the basis for our determination of the specific programs we will test. In documenting our understanding of the internal control system for the financial statement audit, we will identify control activities that impact major federal and state programs as well. This will allow us to test certain controls for the financial audit and the single audit concurrently. We will then perform additional tests of controls for each federal and state program selected for testing. We will then evaluate the results of the test of controls to determine the nature, timing and extent of substantive testing necessary to determine compliance with major program requirements. Perform Statutory Compliance Testing We have developed audit programs for Crosswinds East Community Development District designed to test Florida Statutes as required by the Auditor General. These programs include test procedures such as general inquiries, confirmation from third parties, and examination of specific documents. Closing Phase During the closing phase we perform detail work paper reviews, request legal letters, review subsequent events and proposed audit adjustments. Communication with the client is critical in this phase to ensure that the information necessary to prepare financial statements in conformity with accounting principles generally accepted in the United States has been obtained. Reporting Phase Financial Statement Preparation As a local firm, we spend a considerable amount of time on financial statement preparation and support. With this in mind, we can assist in certain portions of the preparation of financial statements or simply review a draft of financials prepared by your staff. We let you determine our level of involvement. Management Letters We want to help you solve problems before they become major. Our management letters go beyond citing possible deficiencies in the District’s internal control structures. They identify opportunities for increasing revenues, decreasing costs, improving management information, protecting assets and improving operational efficiency. The diversity of experience of our personnel and their independent and objective viewpoints make the comments, observations, and conclusions presented in our management letters a valuable source of information. We have provided positive solution-oriented objective recommendations to our governmental clients regarding investments, accounting accuracy, data processing, revenue bonds, payroll, utility billing, purchasing, budgeting, risk management, and internal auditing. This review ensures the integrity of the factual data in the management letter but does not influence or impair our independence. Exit Conferences and Delivery of Reports We anticipate meeting with appropriate District personnel in February and issuing the final required reports by the May meeting of each year. PROPOSED AUDIT FEE DiBartolomeo, McBee, Hartley & Barnes P.A. will perform the annual audit of Crosswinds East Community Development District for the five years as follows: September 2023 $ 3,250 Lump Sum Cost September 2024-2027 $14,150 In years of new debt issuance fees may be adjusted as mutually agreed upon. Proposal to Provide Financial Auditing Services: CROSSWINDS EAST COMMUNITY DEVELOPMENT DISTRICT Proposal Due: July 19, 2023 5:00PM Submitted to: Crosswinds East Community Development District c/o District Manager 219 East Livingston Street Orlando, FL 32801 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 July 19, 2023 Crosswinds East Community Development District c/o District Manager 219 East Livingston Street Orlando, FL 32801 Re: Request for Proposal for Professional Auditing Services for the fiscal year ended September 30, 2023, with an option for four (4) additional annual renewals. Grau & Associates (Grau) welcomes the opportunity to respond to the Crosswinds East Community Development District’s (the “District”) Request for Proposal (RFP), and we look forward to 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 Tony, Jr _____________________________ Antonio J. Grau Firm Qualifications Grau’s Focus and Experience Our Team 3 Partners 10 Professional Staff 9/13 Employees are CPAS Year founded 2 Administrative Professionals Services Provided 297 Community Development Districts Served Properly registered and licensed professional corporation by the state of FLORIDA AICPA | FICPA | GFOA | FASD | FGFOA 9 Professional Groups 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 Close-up of a letter of approval Description automatically generated with low confidence Firm & Staff Experience Profile Briefs: PFM 12 GMS 78 MERITUS 23 RIZZETTA 47 SDS 60 INFRAMARK 38 WRATHELL 30 OTHER 19 GRAU AND ASSOCIATES COMMUNITY DEVELOPMENT DISTRICT EXPERIENCE BY MANAGEMENT COMPANY Antonio J GRAU, CPA (Partner) Years Performing Audits: 30+ CPE (last 2 years): Government Accounting, Auditing: 24 hours; Accounting, Auditing and Other: 56 hours Professional Memberships: AICPA, FICPA, FGFOA, GFOA Racquel McIntosh, CPA (Partner) Years Performing Audits: 14+ CPE (last 2 years): Government Accounting, Auditing: 47 hours; Accounting, Auditing and Other: 58 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. An advisory consultant will be available as a sounding board to advise in those areas where problems are encountered. 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. 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 C:\Users\EStrong\Desktop\Resume Photos\Tony .jpg Clients Served (partial list) (>300) Various Special Districts, including: Bayside Improvement Community Development District Dunes Community Development District Fishhawk Community Development District (I,II,IV) Grand Bay at Doral Community Development District Heritage Harbor North Community Development District St. Lucie West Services District Ave Maria Stewardship Community District Rivers Edge II Community Development District Bartram Park 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 56 Total Hours 80 (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 C:\Users\EStrong\Desktop\Resume Photos\Racquel.jpg 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 Westchase Community Development District Monterra Community Development District Palm Coast Park Community Development District Long Leaf Community Development District Watergrass 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 FICPA State & Local Government Committee Florida Institute of Certified Public Accountants FGFOA Palm Beach Chapter Professional Education (over the last two years) Course Hours Government Accounting and Auditing 47 Accounting, Auditing and Other 58 Total Hours 105 (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 II: Execution of the Audit Plan PHASE III: Completion and Delivery PHASE I: Preliminary Planning 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. 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: 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? 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, 2023-2027 are as follows: Year Ended September 30, Fee 2023 $3,600 2024 $3,700 2025 $3,800 2026 $3,900 2027 $4,000 TOTAL (2023-2027) $19,000 The above fees are based on the assumption that the District maintains its current level of operations. Should conditions change or Bonds are issued the fees would be adjusted accordingly upon approval from all parties concerned. Supplemental Information SPECIAL DISTRICTS 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 Wastewater 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 • Development of budgets • Organizational structures • Financing alternatives • IT Auditing • Fixed asset records • Cost reimbursement • Indirect cost allocation • Grant administration and compliance ARBITRAGE Current Arbitrage Calculations The federal government has imposed complex rules to restrict the use of tax-exempt financing. Their principal purpose is to eliminate any significant arbitrage incentives in a tax-exempt issue. We have determined the applicability of these requirements and performed the rebate calculations for more than 150 bond issues, including both fixed and variable rate bonds. 73 We look forward to providing Crosswinds East 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. MEMORANDUM To: Board of Supervisors From: Kilinski | Van Wyk PLLC Date: July 7, 2023 Re: Ethics Training for Special District Supervisors The purpose of this memorandum is to provide you with information regarding new ethics training requirements applicable to Special District Supervisors. This requirement is the result of changes to Section 112.3142, Florida Statutes, which were passed during the recent legislative session. The new requirements will apply beginning with the 2024 calendar year. Who is affected? The new requirement applies to all elected officers of independent special districts as defined in Section 189.012, Florida Statutes, including those elected officers who are appointed to fill a vacancy for an unexpired term of office. This includes Supervisors of Community Development Districts and “Special Act” Districts, among others. It does not apply to non-elected officers of a special district, such as a secretary or treasurer, unless that person is also an elected officer. The training requirement previously applied only to specified constitutional officers, elected municipal officers, and commissioners of community redevelopment agencies. What is required? Supervisors will be required to complete four (4) hours of training each calendar year. The training must address, at a minimum, Article II of the State Constitution, the Code of Ethics for Public Officers and Employees, and Florida’s public records and open meetings laws. It may be completed by taking a continuing legal education class or other continuing professional education class, seminar, or presentation, if the required information is covered. How do I report compliance? The Commission on Ethics has not announced special procedures for special district supervisors. For other officers subject to the training requirement, compliance is self-reported by marking a check box on the annual financial disclosure form. Supervisors should keep detailed records on the name of each course, length of each course, and date completed in the event that verification is required. When is the deadline? This requirement will apply beginning in the 2024 calendar year. Training should be completed as close as possible to the date an officer assumes office. Officers who assume a new office or a new term of office before March 31 must complete the training on or before December 31 of the same year. Officers who assume a new office or a new term of office after March 31 are not required to complete the training until the following calendar year. Where can I find training materials? The Florida Commission on Ethics has provided links to approved courses on their Ethics Training web page: https://ethics.state.fl.us/Training/Training.aspx. There are also many courses – both free and for a charge – available online and in-person. Kilinski | Van Wyk will be offering customized training sessions at discounted rate for existing clients. If you have questions about whether a particular course meets the requirements, or if you would like to request a customized training session, please consult your Kilinski | Van Wyk attorney. There is also the ability to include training within your regular Board meeting schedule.