MARSH HARBOUR COMMUNITY DEVELOPMENT DISTRICT
CITY OF RIVIERA BEACH, FLORIDA

FINANCIAL STATEMENTS WITH INDEPENDENT AUDITOR’S REPORT THEREON

ANNUAL AUDIT FOR THE YEAR ENDED SEPTEMBER 30, 2020

MARSH HARBOUR COMMUNITY DEVELOPMENT DISTRICT CITY OF RIVIERA BEACH, FLORIDA
SEPTEMBER 30, 2020

TABLE OF CONTENTS
Pages

Independent Auditor's Report	1- 2
Management’s Discussion and Analysis (required supplementary information)	3- 7
Basic Financial Statements
Government-wide Financial Statements
Statement of Net Position	8
Statement of Activities	9
Fund Financial Statements
Balance Sheet – Governmental Funds	10
Reconciliation of the Balance Sheet – Governmental Funds to
the Statement of Net Position – Governmental Activities	11
Statement of Revenues, Expenditures, and Changes in Fund Balances-
Governmental Funds	12
Reconciliation of the Statement of Revenues, Expenditures, and Changes
in Fund Balances of the Governmental Funds to the Statement of Activities	13
Notes to the Financial Statements	14-26
Required Supplemental Information Other Than Management’s Discussion and Analysis Schedule of Revenues, Expenditures, and Changes in Fund Balance –
Budget and Actual – General Fund	27
Notes to the Budgetary Required Supplementary Information	28
Other Reports
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 in Accordance with the Rules of the Auditor General
of the State of Florida	31-33
Independent Accountant’s Report on Compliance with
Section 218.415, Florida Statutes	34

INDEPENDENT AUDITOR'S REPORT
To the Board of Supervisors
Marsh Harbour Community Development District City of Riviera Beach, Florida
Report on the Financial Statements

We have audited the accompanying financial statements of the governmental activities and each major fund of the Marsh Harbour Community Development District (the “District”), as of and for the year ended September 30, 2020, and the related notes to the 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 opinions 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 Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free 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 opinions.

Opinions
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 the Marsh Harbour Community Development District as of September 30, 2020, and the respective changes in financial position for the year then ended in accordance 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’s discussion and analysis on pages 3 through 7 and the budgetary comparison information on pages 27 and 28 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 our report dated June 21, 2021, 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, contracts, grant agreements and other matters. The purpose of that report is solely 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 the effectiveness of the District’s 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 the District’s internal control over financial reporting and compliance.

West Palm Beach, Florida June 21, 2021

MANAGEMENT’S DISCUSSION AND ANALYSIS

Our discussion and analysis of Marsh Harbour Community Development District, City of Riviera Beach, Florida’s (“District”) provides a narrative overview of the District’s financial activities for the fiscal year ended September 30, 2020. Please read it in conjunction with the District’s Independent Auditor’s Report, basic financial statements, accompanying notes and supplementary information to the basic financial statements.

FINANCIAL HIGHLIGHTS

The assets of the District exceeded its liabilities at the close of the most recent fiscal year resulting in a net position balance of $1,144,234. When the District was formed, unrestricted net position was positive and subsequently infrastructure was deeded to the City of Riviera Beach creating a deficit unrestricted net position. The reason for the transfer of infrastructure was that the City is better able to maintain the infrastructure than the District. The debt related to the assets transferred to the City will be paid by future assessments and as demonstrated by the fund financial statements the District has sufficient resources for current operations.

The change in the District’s total net position in comparison with the prior fiscal year was an increase of $40,768. The key components of the District’s net position and change in net position are reflected in the table in the government-wide financial analysis section.

At September 30, 2020, the District’s governmental funds reported combined ending fund balances of $377,456, a decrease of $43,324 in comparison with the prior year. Of the total fund balance, $170,599 is restricted for debt service, $61,600 is assigned to subsequent year’s expenditures, and $145,257 is unassigned fund balance which is available for spending at the District’s discretion.

OVERVIEW OF FINANCIAL STATEMENTS

The discussion and analysis are intended to serve as the introduction to the District’s basic financial statements. The District’s basic financial statements are comprised of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements.   This report also contains supplementary information in addition to the basic financial statements themselves.

Government-Wide Financial Statements

The government-wide financial statements are designed to provide readers with a broad overview of the District’s finances, in a manner similar to a private-sector business.

The statement of net position presents information on all the District’s assets and liabilities, with the residual amount being reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the District is improving or deteriorating.

The statement of activities presents information showing how the government’s net position changed during the most recent fiscal year.   All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods.

The government-wide financial statements include all governmental activities that are principally supported by special assessment revenues. The District does not have any business-type activities. The governmental activities of the District include the general government (management) and maintenance functions.

Fund Financial Statements

A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The District, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.  The District has one fund category: governmental funds.

Governmental Funds

Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near- term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a District’s near-term financing requirements.

Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the District’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balance provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.

The District maintains two individual governmental funds. Information is presented separately in the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances for the general fund and debt service fund. The general and debt service funds are considered to be major funds.

The District adopts an annual appropriated budget for its general fund. A budgetary comparison schedule has been provided for the general fund to demonstrate compliance with the budget.

The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements.

GOVERNMENT-WIDE FINANCIAL ANALYSIS

As noted earlier, net position may serve over time as a useful indicator of an entity’s financial position. In the case of the District, assets exceeded liabilities at the close of the most recent fiscal year.

Key components of the District’s net position are reflected in the following table:

NET POSITION SEPTEMBER 30,

 	2020		 	2019	

Current and other assets	$	466,450	$	489,798	
Capital assets, net of depreciation	 	3,406,946  	 	3,469,811  	
Total assets	 	3,873,396  	 	3,959,609  	

Current liabilities	
124,162	
106,143	
Long-term liabilities	 	2,605,000  	 	2,750,000  	
Total liabilities	 	2,729,162  	 	2,856,143  	

Net position
Net investment in capital assets	

1,480,923	

1,436,581	
Restricted	135,431	123,651	
Unrestricted	 	(472,120)	 	(456,766)	
Total net position	  $ 1,144,234  	   $ 1,103,466  	

The District’s net position reflects its investment in capital assets (e.g., land, land improvements, and infrastructure); less any related debt used to acquire those assets that is still outstanding. These assets are used to provide services to residents; consequently, these assets are not available for future spending. Although the District’s investment in capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.

The restricted portion of the District’s net position represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position may be used to meet the District’s other obligations.

The District’s net position increased during the most recent fiscal year. The majority of the increase represents the extent to which ongoing program revenues exceeded the cost of operations and depreciation expense.

CHANGES IN NET POSITION
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,

 	2020		 	2019	
Revenues:
Program revenues		
Charges for services	$	755,710	$	763,358	
Operating grants and contributions	2,903	37,228	
General revenues	 	466  	 	876  	
Total revenues	 	759,079  	 	801,462  	

Expenses:
General government	

79,254	

82,746	
Maintenance and operations	551,914	475,567	
Interest	 	87,143  	 	91,746  	
Total expenses	 	718,311  	 	650,059  	
Change in net position	 	40,768  	 	151,403  	

Net position (deficit) – beginning	
 	1,103,466  	
 	952,063  	
Net position (deficit) – ending	 	$	1,144,234  	 	$ 1,103,466  	

As in the prior fiscal year, program revenues are comprised primarily of assessments. As noted above and in the statement of activities, the cost of all governmental activities during the fiscal year ended September 30, 2020 was $718,311. The costs of the District’s activities were primarily funded by program revenues. Program revenues, comprised primarily of assessments, decreased slightly during the fiscal year.

GENERAL BUDGETING HIGHLIGHTS

An operating budget was adopted and maintained by the government board for the District pursuant to the requirements of Florida Statutes. The budget is adopted using the same basis of accounting that is used in preparation of the fund financial statements. The legal level of budgetary control, the level at which expenditures may not exceed budget is at the aggregate fund level. Any budget amendments that increase the aggregate budgeted appropriations must be approved by the Board of Supervisors. The 2020 general fund budget was amended to increase revenues by $9,092 and increase appropriations by $16,368. The increase in revenues is primarily the result of greater than anticipated assessments being collected due to fewer people taking advantage of the discount for early payment and grants received related to Hurricane Irma debris disposal. The actual general fund expenditures for the 2020 fiscal year were lower than budgeted amounts due primarily to anticipated costs which were not incurred in the current fiscal year.

CAPITAL ASSETS AND DEBT ADMINISTRATION

Capital Assets

At September 30, 2020, the District had $4,300,593 invested in land and land improvements, infrastructure, and improvements, for its governmental activities. In the government-wide financial statements depreciation of $893,647 has been taken, which resulted in a net book value of $3,406,946. More detailed information about the District’s capital assets is presented in the notes to the financial statements.

The following is a summary of capital assets as of September 30:

	 	2020		 	2019		
Land and land improvements	$ 2,800,871	$ 2,800,871	
Water control and other	1,212,186	1,212,186	
Landscaping	236,000	236,000	
Security fence	 	51,536  	 	51,536  	
	4,300,593	4,300,593	
Less accumulated depreciation	 	893,647  	 	830,782  	
Totals	  $ 3,406,946  	  $ 3,469,811  	

Long-Term Liabilities

At September 30, 2020, the District had $2,605,000 in Bonds outstanding for its governmental activities. More detailed information about the District’s long-term liabilities is presented in the notes of the financial statements.

The following is a summary of long-term liabilities as of September 30:

 	2020		 	2019	
Bonds payable, Series 2015	$ 2,605,000	$ 2,750,000  

ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND OTHER EVENTS

The District does not anticipate any major projects or significant changes to its infrastructure maintenance program for the subsequent fiscal year. In addition, it is anticipated that the general operations of the District will remain fairly constant.

CONTACTING THE DISTRICT’S FINANCIAL MANAGEMENT

This financial report is designed to provide our citizens, landowners, customers, and creditors with a general overview of the District’s finances and to demonstrate the District’s accountability for the financial resources it manages and the stewardship of the facilities it maintains. If you have questions about this report or need additional financial information, contact the Marsh Harbour Community Development District’s management services at Special District Services, Inc., 2501A Burns Road, Palm Beach Gardens, Florida 33410.

MARSH HARBOUR COMMUNITY DEVELOPMENT DISTRICT CITY OF RIVIERA BEACH, FLORIDA
Statement of Net Position September 30, 2020

Assets Current assets:
Cash

Total Governmental Activities

$	291,164

Investments	170,599
Accounts receivable	4,687
Total current assets	466,450

Noncurrent assets:
Capital assets
Non-depreciable	2,800,871	
Depreciable (net of depreciation)	606,075	
Total noncurrent assets	3,406,946	
Total assets	3,873,396	
Liabilities		
Current liabilities:
Accounts payable	
88,994	
Accrued interest payable	35,168	
Total current liabilities	124,162	
Noncurrent liabilities
Due within one year	
150,000	
Due in more than one year	2,455,000	
Total noncurrent liabilities	2,605,000	
Total liabilities	2,729,162	
Net position		
Net investment in capital assets	1,480,923	
Restricted for debt service	135,431	
Unrestricted	(472,120)	
Total net position	$	1,144,234	

MARSH HARBOUR COMMUNITY DEVELOPMENT DISTRICT CITY OF RIVIERA BEACH, FLORIDA
Statement of Activities
For the Fiscal Year Ended September 30, 2020

Program Revenues

Function / Program Activities	

Expenses		Charges
For Services	Operating Grants
and Contributions	Capital Grants
and Contributions		Total
Governmental Activities	

Governmental activities								
General government	$	79,254		$	79,254	$	$		$	
Maintenance and operations	551,914		433,822	1,614			(116,478)	
Interest on long term debt	87,143		242,634	1,289			156,780	
Total governmental activities	718,311		755,710	2,903			40,302	

General revenues
Investment earnings - unrestricted	466	
Total general revenues	466	

Change in net position	
40,768	
Net position, beginning of year	1,103,466	

Net position, end of year	
$ 1,144,234	

Balance Sheet Governmental Funds September 30, 2020

Major Funds
	
General Fund		Debt
Service Fund		Total
Governmental Funds	
Assets
Cash	
$	291,164		
$		
$	291,164	
Investments			170,599		170,599	
Accounts receivable	4,687				4,687	

Total assets	
$	
295,851	
$	
170,599	
$	
466,450	

Accounts payable	$	88,994		$		$	88,994	

Total liabilities	
88,994				
88,994	

Fund balances Restricted Debt service	

170,599	

170,599	
Assigned			
Subsequent year's expenditures	61,600				61,600	
Unassigned	145,257				145,257	

Total fund balances	
206,857		
170,599		
377,456	

Total liabilities and fund balances	
$	295,851		
$	170,599		
$	466,450	

Liabilities and fund balances Liabilities

Reconciliation of the Balance Sheet - Governmental Funds to the Statement of Net Position - Governmental Activities September 30, 2020

Fund balances total governmental funds		$	377,456	

Amounts reported for governmental activities in the statement of net position are different because:			
Capital assets used in governmental activities are not financial resources and therefore are not reported in the governmental funds.			
Governmental capital assets	4,300,593		
Less accumulated depreciation	(893,647)		
		3,406,946	
Long-term liabilities, including notes and bonds payable, are not due and payable in the current period and therefore are not reported in the funds. Long-term liabilities at year-end consists of:			
Accrued interest payable	(35,168)		
Bonds payable	(2,605,000)		
		(2,640,168)	

Net position of governmental activities		

$	1,144,234	

MARSH HARBOUR COMMUNITY DEVELOPMENT DISTRICT CITY OF RIVIERA BEACH, FLORIDA
Combined Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
For the Fiscal Year Ended September 30, 2020

Major Funds
	
General Fund		Debt Service
Fund		Total Governmental
Funds	
Revenues
Assessments	
$	513,076		
$	242,634		
$	755,710	
Investment earnings	466		1,289		1,755	
Grants	1,614				1,614	
Total revenues	515,156		243,923		759,079	
Expenditures Current
General government	

79,254				

79,254	
Maintenance and operations Debt service
Principal	489,049		

145,000		489,049

145,000	
Interest			89,100		89,100	
Total expenditures	568,303		234,100		802,403	
Excess of revenues over (under) expenditures	(53,147)		9,823		(43,324)	
Fund balances - beginning of year	260,004		160,776		420,780	
Fund balances - end of year	$	206,857		$	170,599		$	377,456	

MARSH HARBOUR COMMUNITY DEVELOPMENT DISTRICT CITY OF RIVIERA BEACH, FLORIDA
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of the Governmental Funds to the Statement of Activities For the Fiscal Year Ended September 30, 2020

Net change in fund balances	$	(43,324)

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

Depreciation on capital assets is not recognized in the governmental fund financial statement but is reported as an expense in the statement of activities:

Current year depreciation	(62,865)

Repayment of debt principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net position:

Repayment of debt principal	145,000

Some expenses reported in the statement of activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds.

Change in accrued interest	1,957

Change in net position	$	40,768

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The financial statements of the Marsh Harbour Community Development District (“District”) have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The District’s significant accounting policies are described below.

Reporting Entity

The District was created on July 20, 2005, pursuant to the Uniform Community Development District Act of 1980, otherwise known as Chapter 190, Florida Statutes, by City of Riviera Beach Ordinance 2992. The Act provides among other things, the power to manage basic services for community development, power to borrow money and issue bonds, and to levy and assess non- ad valorem assessments for the financing and delivery of capital infrastructure.

The District was established for the purposes of financing and managing the acquisition, construction, maintenance and operation of a portion of the infrastructure necessary for community development within the District.

The District is governed by the Board of Supervisors (“Board”) which is composed of five members. The Supervisors are elected on an at large basis by the owners of the property within the District. The Board of Supervisors of the District exercise all powers granted to the District pursuant to Chapter 190, Florida Statutes.

The Board has the final responsibility for:

Assessing and levying assessments.
Approving budgets.
Exercising control over facilities and properties.
Controlling the use of funds generated by the District.
Approving the hiring and firing of key personnel.
Financing improvements.

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Reporting Entity (Continued)

As required by generally accepted accounting principles, these financial statements include the District (the primary government) and its component units. Component units are legally separate entities for which the District is financially accountable. The District is financially accountable if:

the District appoints a voting majority of the organization’s governing board and (1) the District is able to impose its will on the organization or (2) there is a potential for the organization to provide specific financial benefits to or impose specific financial burdens on the District, or

the organization is fiscally dependent on the District and (1) there is a potential for the organization to provide specific financial benefits to the District or (2) impose specific financial burdens on the District.

Organizations for which the District is not financially accountable are also included when doing so is necessary in order to prevent the District’s financial statements from being misleading.

Based upon application of the above criteria, management of the District has determined that no component units exist which would require inclusion in this report. Further, the District is not aware of any entity that would consider the District to be a component unit.

Government-Wide and Fund Financial Statements

The basic financial statements include both government-wide and fund financial statements.

The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the non-fiduciary activities of the primary government. For the most part, the effect of interfund activity has been removed from these statements.

The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include: 1) charges to customers who purchase, use or directly benefit from goods, services or privileges provided by a given function or segment; operating-type special assessments for maintenance and debt service are treated as charges for services, and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Other items not included among program revenues are reported instead as general revenues.

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Measurement Focus, Basis of Accounting and Financial Statement Presentation

The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Assessments are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.

Governmental Funds

Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures are recorded only when payment is due.

The District reports the following major governmental funds:

General Fund
The general fund is the general operating fund of the District. It is used to account for all financial resources except those required to be accounted for in another fund.

Debt Service Fund
The debt service fund is used to account for the accumulation of resources for the annual payment of principal and interest on long-term debt.

As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements.

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Deposits and Investments
The District’s cash and cash equivalents are considered to be cash on hand and demand deposits (interest and non-interest bearing).
The District has elected to proceed under the Alternative Investment Guidelines as set forth in Section 218.415 (17) Florida Statutes. The District may invest any surplus public funds in the following:
The Local Government Surplus Trust Funds, or any intergovernmental investment pool authorized pursuant to the Florida Interlocal Cooperation Act;
Securities and Exchange Commission registered money market funds with the highest credit quality rating from a nationally recognized rating agency;
Interest bearing time deposits or savings accounts in qualified public depositories;
Direct obligations of the U.S. Treasury.
Securities listed in paragraph c and d shall be invested to provide sufficient liquidity to pay obligations as they come due. Unspent Bond proceeds and Bond reserve accounts are required to be held in investments as specified in the Bond Indenture.
Investments are stated at fair value. Fair value is defined as 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. Fair value is a market-based measurement, not an entity-specific measurement. For some assets and liabilities, observable market transactions or market information might be available; for others, it might not be available. However, the objective of fair value measurement in both cases is the same, that is, to determine the price at which an orderly transaction to sell the asset or to transfer the liability would take place between market participants at the measurement date under current market conditions. Fair value is an exit price at the measurement date from the perspective of a market participant that controls the asset or is obligated for the liability. The District categorizes investments reported at fair value in accordance with the fair value hierarchy established by GASB Statement No. 72, Fair Value Measurement and Application. The District records all interest revenue to investment activities in the respective funds.

Restricted Assets
These assets represent cash and investments set aside pursuant to Bond covenants or other contractual restrictions.

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Capital Assets
Capital assets, which include property, plant and equipment, and infrastructure assets (e.g., roads, sidewalks and similar items) are reported in the governmental activities columns in the government-wide financial statements. Capital assets are defined by the government as assets with an initial, individual cost of more than $5,000 (amount not rounded) and an estimated useful life in excess of two years.   Such assets are recorded at historical costs or estimated historical cost if purchased or constructed. Donated capital assets, donated works of art and similar items, and capital assets received in a service concession arrangement are reported at acquisition cost.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed.

Property, plant and equipment of the District are depreciated using the straight-line method over the following estimated useful lives:
Assets	Years
Landscaping	20
Infrastructure – water control and other	25
Infrastructure – security fence	25
In the governmental fund financial statements, amounts incurred for the acquisition of capital assets are reported as fund expenditures. Depreciation expense is not reported in the governmental fund financial statements.
Deferred Outflow of Resources

In addition to assets, the statement of net position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position or fund balance that applies to a future period(s) and thus, will not be recognized as an outflow of resources (expense/expenditure) until that time. Currently, the District does not report any deferred outflows of resources.

Deferred Inflow of Resources

In addition to liabilities, the statement of net position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position or fund balance that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. Currently, the District does not report any deferred inflows of resources.

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Unearned Revenue
The District reports unearned revenue on its government wide Statement of Net Position and governmental funds balance sheet. Unearned revenue arises when resources are obtained prior to revenue recognition. In subsequent periods, when revenue recognition criteria are met the unearned revenue is removed and revenue is recognized.

Long-Term Obligations

In the government-wide financial statements long-term debt and other long-term obligations are reported as liabilities in the statement of net position. Bond premiums and discounts are deferred and amortized over the life of the Bonds. Bonds payable are reported net of applicable premiums or discounts.  Bond issuance costs are expensed when incurred.

In the fund financial statements, governmental fund types recognize premiums and discounts, as well as issuance costs, during the current period. The fact amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.

Fund Balance

In the fund financial statements, governmental funds report fund balance classifications that comprise a hierarchy based primarily on the extent to which the District is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. Fund balance is reported under the following categories:
Nonspendable fund balance represents amounts that are not in spendable form or are legally or contractually required to be maintained intact.

Restricted fund balance represents amounts that can be spent only for specific purposes stipulated by external providers (e.g. creditors, grantors, contributor, or laws or regulations of other governments) or imposed by law through constitutional provisions or enabling legislation.

Committed fund balance represents amounts that can be used only for the specific purposes determined by formal action (resolution) of the Board of Supervisors. Commitments may be changed or lifted only by the Board of Supervisors taking the same formal action (resolution).

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Fund Balance (Continued)

Assigned fund balance includes spendable fund balance amounts that are intended to be used for specific purposes, as expressed by the Board of Supervisors, that are neither considered restricted or committed. The Board may also assign fund balance as it does when appropriating fund balance to cover differences in estimated revenue and appropriations in the subsequent year’s appropriated budget. Assignments are generally temporary and normally the same formal action need not be taken to remove the assignment.

Unassigned fund balance is the residual fund balance classification for the general fund. It is also used to report negative fund balances in other governmental funds.

When an expenditure is incurred for purposes for which both restricted and unrestricted (committed, assigned, or unassigned) amounts are available, it is the District’s policy to reduce restricted amounts first. When an expenditure is incurred for purposes for which amounts in any of the unrestricted fund balance classifications could be used, it is the District’s policy to reduce committed amounts first, followed by assigned amounts, and then unassigned amounts.

Net Position

Net position is the residual of all other elements presented in a statement of financial position. It is the difference between (a) assets plus deferred outflows of resources and (b) liabilities and deferred inflows of resources. Net position is displayed in the following three components:

Net investment in capital assets – Consists of capital assets including restricted capital assets, net of accumulated depreciation and reduced by the outstanding balances of any bonds, notes or other borrowings that are attributable to the acquisition, construction or improvement of those assets.

Restricted net position – Consists of net position with constraints placed on the use either by: (1) external groups such as creditors, grantors, contributors, or laws or regulations of other governments; or (2) law through constitutional provisions of enabling legislation.

Unrestricted net position – All other net position that does not meet the definition of “restricted” or “net investment in capital assets.”

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Assessments

Assessments are non-ad valorem assessments on certain land and all platted lots within the District. Assessments are levied each November 1 on property of record as of the previous January. The fiscal year for which annual assessments are levied on October 1 with discounts available for payments through February 28 and become delinquent on April 1. For debt service assessments, amounts collected as advance payments are used to prepay a portion of the Bonds outstanding. Otherwise, assessments are collected annually to provide funds for the debt service on the portion of the Bonds which are not paid with prepaid assessments.

Assessments and interest associated with the current fiscal period are considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. The portion of assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period.

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenditures during the reporting period.  Actual results could differ from those estimates.

NOTE 2 – BUDGETARY INFORMATION

The District is required to establish a budgetary system and an approved Annual Budget. Annual Budgets are adopted on a basis consistent with generally accepted accounting principles for the general fund.  All annual appropriations lapse at fiscal year-end.

The District follows these procedures in establishing the budgetary data reflected in the financial statements.

Each year the District Manager submits to the District Board a proposed operating budget for the fiscal year commencing the following October 1.
Public hearings are conducted to obtain public comments.
Prior to October 1, the budget is legally adopted by the District Board.
Any budget amendments that increase the aggregate budgeted appropriations must be approved by the Board of Supervisors. The legal level of budgetary control is at the fund level.
Unused appropriation for annually budget funds lapse at the end of the year.

NOTE 3 – DEPOSTS AND INVESTMENTS

Deposits

In addition to insurance provided by the Federal Depository Insurance Corporation, deposits are held in banking institutions approved by the Treasurer of the State of Florida. Under Florida Statutes, Chapter 280, Florida Security for Public Deposits Act, the State Treasurer requires all Florida qualified public depositories to deposit with the Treasurer or other banking institution eligible collateral. In the event of failure of a qualified public depository, the remaining public depositories would be responsible for covering any resulting losses. The District’s deposits at year end are considered insured for custodial credit risk purposes. As of September 30, 2020, the bank balance of the District’s deposits totaled $291,164 and the carrying amount was $291,164.

Investments

GASB Statement No. 72, Fair Value Measurement and Application, requires governments to disclose the fair value hierarchy for each type of asset or liability measured at fair value in the notes to the financial statements. The standard also requires governments to disclose a description of the valuation techniques used in the fair value measurement and any significant changes in valuation techniques. GASB 72 establishes a three-tier fair value hierarchy. The hierarchy is based on valuation inputs used to measure the fair value as follows:

Level 1: Inputs are directly observable, quoted prices in active markets for identical assets or liabilities.

Level 2:       Inputs are other than quoted prices included within Level 1 that are for the asset or liability, either directly or indirectly. These inputs are derived from or corroborated by observable market data through correlation or by other means.

Level 3:     Inputs are unobservable inputs used only when relevant Level 1 and Level 2 inputs are unavailable.

The level in which an asset is assigned is not indicative of its quality but an indication of the source of valuation inputs.

The District’s investments were as follows at September 30, 2020:

TD Bank Deposit Sweep	Fair Value	Credit Rating	Maturities

Weighted Average of fund	
Money Market Fund	$ 170,599	N/A	portfolio: N/A	

NOTE 3 – DEPOSTS AND INVESTMENTS (Continued)

Investments (Continued)

The fair value of the Money Market Fund is measured at amortized cost and is exempt from the fair value hierarchy rules under GASB 72.

Credit risk – For investments, credit risk is generally the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Investment ratings by investment type are included in the preceding summary of investments.

Concentration risk – The District places no limit on the amount the District may invest in any one issuer.

Interest rate risk – The District does not have a formal policy that limits investment maturities as a means of managing exposure to fair value losses arising from increasing interest rates. However, the Bond Indenture limits the type of investments held using unspent proceeds.

NOTE 4 – CAPITAL ASSETS

Capital asset activity for the fiscal year ended September 30, 2020 was as follows:

	Beginning
   Balance		
  Additions		
  Reductions  	Ending
 	Balance		
Governmental activities
Capital assets, not being depreciated Land and land improvements	

  $2,800,871  	

  $		

  $		

 	$2,800,871  	
Total capital assets, not being depreciated	    2,800,871  	 		 		 	2,800,871  	
Capital assets, being depreciated Water control and other	
1,212,186			
1,212,186	
Landscaping	236,000			236,000	
Security Fence	 	51,536  	 		 		 	51,536  	
Total capital assets, being depreciated	    1,499,722  	 		 		 	1,499,722  	
Less accumulated depreciation for: Water control and other	
(654,588)	
(48,488)		
(703,076)	
Landscaping	(159,300)	(11,800)		(171,100)	
Security Fence	 	(16,894) 	 	(2,577) 	 		 	(19,471) 	
Total accumulated depreciation	 	(830,782) 	 	(62,865) 	 		 	(893,647) 	
Total capital assets, being depreciated, net	 	668,940  	 	(62,865) 	 		 	606,075  	
Governmental activities capital assets, net	  $3,469,811  	  $	(62,865) 	  $		 	$3,406,946  	
Depreciation expense was charged to the maintenance and operations function.

NOTE 5 – LONG-TERM LIABILITIES

Special Assessment Refunding Bonds, Series 2015

On August 25, 2015, the District issued $3,295,000 of Special Assessment Refunding Bonds, Series 2015, with an interest rate of 3.24%. Principal and interest are payable semiannually on May 1 and November 1, commencing November 1, 2015. The bonds mature on May 1, 2035.

The Series 2015 bonds are subject to optional redemption, in whole or in part, on any date, at the Redemption Price equal to the greater of (a) 101% of the Outstanding principal amount of Bonds to be redeemed or (b) a Redemption Price equal to the Yield Maintenance Fee of the Bank plus in all cases, accrued interest to the redemption date, upon receipt by the Trustee not less than fifteen (15) or more than twenty (20) days prior to such redemption date of a written direction from the Issuer stating that it intends to effect redemption of such Bonds.

The Bond Indenture established a debt service reserve requirement as well as other restrictions and requirements relating principally for the procedures to be followed by the District on assessments to property owners and to meet the required annual debt service. The District agrees to levy special assessments in annual amounts adequate to provide payment of debt service and to meet the reserve requirements. The District is in compliance with those requirements of the Bond Indenture at September 30, 2020.

If any Event of Default with respect to the Bonds has occurred and is continuing, the Trustee shall, at the written direction of the Bank, if it is the Owner of the Bonds, or if the Bank is not the Owner of the Bonds, the Trustee may, in its discretion, and upon the written request of the Holders of not less than a majority of the aggregate principal amount of the Outstanding Bonds and receipt of indemnity to its satisfaction shall, in its own name (a) by mandamus, or other suit, action or proceeding at law or in equity, enforce all rights of the Holders of the Bonds, including, without limitation, the right to require the Issuer to carry out any agreements with, or for the benefit of, the Bondholders of the Bonds and to perform its or their duties under the Act; (b) bring suit upon the Bonds; (c) by action or suit in equity require the Issuer to account as if it were the trustee of an express trust for the Holders of the Bonds; (d) by action or suit in equity enjoin any acts or things which may be unlawful or in violation of the rights of the Holders of the Bonds; and (e) by other proceeding in law or equity, exercise all rights and remedies provided for by any other document or instrument securing such Bonds.

NOTE 5 – LONG-TERM LIABILITIES (Continued)

Changes in Long-Term Liabilities

Changes in the District’s long-term liabilities for the fiscal year ended September 30, 2020 were as follows:

Beginning
Balance	Additions	Reductions

Ending Balance

Due Within
    One Year 

Governmental activities
Direct placements:		
Bonds payable;		
Series 2015	     $ 2,750,000  	  $		   $ (145,000)  	    $ 2,605,000  	   $ 150,000  	
Total	 	$ 2,750,000  	  $		   $ (145,000)  	    $ 2,605,000  	   $ 150,000  	

Debt Service Requirements

At September 30, 2020, the scheduled debt service requirements on the long-term debt were as follows:

Governmental Activities
Year Ending
  September 30:  	
    Principal		
 	Interest		
 	Total		
2021	$ 150,000	$	84,402	$ 234,402	
2022	160,000	79,542	239,542	
2023	160,000	74,358	234,358	
2024	165,000	69,174	234,174	
2025	165,000	63,828	228,828	
2026-2030	775,000	245,430	1,020,430	
2031-2035	    1,030,000  	 	103,518  	 	1,133,518  	
Total	  $2,605,000  	  $ 720,252  	   $3,325,252  	

NOTE 6 – MAINTENANCE AGREEMENT

On October 16, 2006, the District entered into a maintenance agreement with the Marsh Harbour Maintenance Association, Inc. (the “Association”) whereby the Association has agreed to provide certain maintenance services and materials. The District and the Association agree to provide improvements for certain infrastructure assets belonging to the District, or which the District is responsible for maintaining, and the landscaping or streetscaping of same. The District and the Association also agree that the Association shall provide, and be solely responsible for all costs and liabilities that are associated with or arise out of, the maintenance services and materials as set forth in the agreement.

On February 15, 2011, the District and the Association entered into the First Amended Maintenance Agreement, whereby the Association would be solely responsible for maintenance of the internal roads. On June 21, 2011 as Second Amendment to the Maintenance Agreement was entered into between the parties. The purpose of the Second Amendment was to clarify the First Amendment, to make clear that the Association was responsible for Maintenance as provided in the original Maintenance Agreement. The District would reimburse the Association for this maintenance, including Security. The exception, as made clear in the Second Amendment, was the internal roads, of which the District has no Maintenance responsibility, nor does it provide any reimbursement therefore.

NOTE 7 – MANAGEMENT COMPANY

The District has contracted with a management company to perform management advisory services, which include financial and accounting advisory services. Certain employees of the management company also serve as officers of the District. Under the agreement, the District compensates the management company for management, accounting, financial reporting, computer and other administrative costs.

NOTE 8 – RISK MANAGEMENT

The District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; and natural disasters. The District has obtained commercial insurance from independent third parties to mitigate the costs of these risks; coverage may not extend to all situations. Settled claims from these risks have not exceeded commercial insurance coverage over the past three years.

Florida Statues limit the District’s maximum loss for most liability claims to $200,000 per person and $300,000 per occurrence under the Doctrine of Sovereign Immunity. However, under certain circumstances, a plaintiff can seek to recover damages in excess of statutory limits by introducing a claims bill to the Florida Legislature. The limits addressed in Florida Statutes do not apply to claims filed in Federal courts.

Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual - General Fund
For the Fiscal Year Ended September 30, 2020

Variance -
Budgeted Amounts	Actual	Positive
	Original		Final		Amounts		(Negative)	
Revenues								
Assessments	$	501,017		$ 508,389		$ 513,076		$	4,687	
Interest	360		466		466			
Grants			1,614		1,614			
Total revenues	501,377		510,469		515,156		4,687	
General government								
Current								
General government	91,977		85,194		79,254		5,940	
Maintenance and operations	471,000		494,151		489,049		5,102	
Total general expenditures	562,977		579,345		568,303		11,042	
Excess of revenues over (under) expenditures	
  $	(61,600)		
  $   (68,876)		
(53,147)		
  $	15,729  	
Fund balance, beginning of the year	260,004

Fund balance, end of the year	$ 206,857  

See notes to the budgetary required supplementary information (RSI)

Notes to the Budgetary
Required Supplementary Information (RSI) September 30, 2020

Note 1 - Basis of Accounting

Generally Accepted Accounting Principles (GAAP) serve as the budgetary basis of accounting.

Note 2 - Excess of expenditures over appropriations

Actual general fund expenditures did not exceed appropriations for the fiscal year.

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
Marsh Harbour Community Development District City of Riviera Beach, 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 the governmental activities and each major fund of the Marsh Harbour Community Development District (the “District”), as of and for the year ended September 30, 2020, and the related notes to the financial statements, which collectively comprise the District’s basic financial statements, and have issued our report thereon dated June 21, 2021.

Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the District’s, internal control over financial reporting (internal control) as a basis for designing 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 the District’s internal control. Accordingly, we do not express an opinion on the effectiveness of the District’s internal control.

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 a 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 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.

Compliance and Other Matters
As part of obtaining reasonable assurance about whether the District’s financial statements are free from 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 financial statements. 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.

West Palm Beach, Florida June 21, 2021

MANAGEMENT LETTER IN ACCORDANCE WITH THE RULES OF THE AUDITOR GENERAL
OF THE STATE OF FLORIDA

To the Board of Supervisors
Marsh Harbour Community Development District City of Riviera Beach, Florida

Report on the Financial Statements

We have audited the basic financial statements of the Marsh Harbour Community Development District (the “District”), as of and for the fiscal year ended September 30, 2020, and have issued our report thereon dated June 21, 2021.

Auditor’s Responsibility

We conducted our audit in accordance with auditing 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, and Chapter 10.550, Rules of the Auditor General.

Other Reporting Requirements

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 the Financial Statements Performed in Accordance with Government Auditing Standards and Independent Accountant’s Report on an examination conducted in accordance with AICPA Professional Standards, AT-C Section 315, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports, which are dated June 21, 2021, 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 taken to address findings and recommendations made in the preceding financial audit report. There were no findings or recommendations in the prior year that required corrective actions.

Official Title and Legal Authority

Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this Management Letter, unless disclosed in the notes to the financial statements. This information is disclosed in Note 1 to the financial statements.

Financial Condition and Management

Sections 10.554(1)(i)5.a. and 10.556(7), Rules of the Auditor General, require us to apply appropriate procedures and communicate the results of our determination as to whether or not the District met one or more of the conditions described in Section 218.503(1), Florida Statutes, and to identify the specific condition(s) met. In connection with our audit, we determined that the District did not meet any of the conditions described in Section 218.503(1), Florida Statutes, during the fiscal year ended September 30, 2020.

Pursuant to Sections 10.554(1)(i)5.b. and 10.556(8), Rules of the Auditor General, we applied financial condition assessment procedures for the District. It is management’s responsibility to monitor the District’s financial condition, and our financial condition assessment was based in part on representations made by management and review of financial information provided by same. Our assessment was done as of the fiscal year end. The results of our procedures did not disclose any matters that are required to be reported.

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.

Special District Component Units

Section 10.554(1)(i)5.c., Rules of the Auditor General, requires, if appropriate, that we communicate the failure of a special district that is a component unit of a county, municipality, or special district, to provide the financial information necessary for proper reporting of the component unit, within the audited financial statements of the county, municipality, or special district in accordance with Section 218.39(3)(b), Florida Statutes.

Based on the application of criteria in publications cited in Section 10.553, Rules of the Auditor General, there are no special district component units of the District and the District is not a special district component to any other entity.

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 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, 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.

West Palm Beach, Florida June 21, 2021

INDEPENDENT ACCOUNTANT’S REPORT

To the Board of Supervisors
Marsh Harbour Community Development District City of Riviera Beach, Florida

We have examined the Marsh Harbour Community Development District’s (the “District”) compliance with Section 218.415, Florida Statutes during the year ended September 30, 2020. Management of the District is responsible for the District’s compliance with the specified requirements. Our responsibility is to express an opinion on the District’s compliance with the specified requirements based on our examination.

Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether the District complied, in all material respects, with the specified requirements referenced above. An examination involves performing procedures to obtain evidence about whether the District complied with the specified requirements. The nature, timing, and extent of the procedures selected depend on our judgement, including an assessment of the risk of material noncompliance, whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion.

Our examination does not provide a legal determination on the District’s compliance with the specified requirements.

In our opinion, the District complied, in all material respects, with Section 218.415, Florida Statutes for the year ended September 30, 2020.

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

West Palm Beach, Florida June 21, 2021