The Board of Supervisors of the Key Marco Community Development District will hold a regular meeting on
June 16, 2021 at 8:30 a.m., at
505 Whiskey Creek Drive, Marco Island, FL 34145

Anyone wishing to listen and participate in the meeting can do so by calling 1-888-468-1195, Participant Pin 636522.

Additionally, participants are encouraged to submit questions and comments to the District Manager in advance to facilitate the Board's consideration of such questions and comments during the meeting.

The agenda is as follows:

Call to Order/Roll Call
Approval of Agenda
Public Comments
Approval of Minutes
April 21, 2021
Old Business
New Business
Attorney Report
Research Committees
Solar Street Lights, Lynn Domenici
Hole Montes, David Schmidt, Engineer
Catch Basin Flume Improvement Report
Pavement Marking/RPM Report
Supervisors’ Requests
District Manager Report
Acceptance of the Financial Statement Ending April 30, 2021
Acceptance of the Annual Financial Audit Year ending September 30, 2020
Public Comments
Set Next Meeting Date:
August 18, 2021 Budget Hearing with Regular Meeting to Follow
Adjournment

1 | P a g e 

06/08/21
Accrual Basis

Balance Sheet
As of June 8, 2021

Jun 8, 21

ASSETS
Current Assets Checking/Savings		
Fifth Third Money Market	459 ,860 .78	
Fifth Third Public Fund	403,996 .48	
Total Checking/Savings	863 ,857 .26	
Other Current Assets		
Prepaid Expenses	3,705 .95	
Total Other Current Assets	3,705 .95	
Total Current Assets	867,563 .21	
TOTAL ASSETS	867,563 .21	
LIABILITIES & EQUITY		
Liabilities
Current Liabilities
Other Current Liabilities Deposits and Prepaid Items	

3,705 .95	
Total Other Current Liabilities	3,705.95	
Total Current Liabilities	3,705.95	
Total Liabilities	3,705 .95	
Equity		
Opening Balance Equity	813 ,660 .58	
Retained Earnings	3,781.44	
Supspense Account	-4,425.48	
Unassigned Fund Balance	-899.11	
Net Income	51,739.83	
Total Equity	863,857.26	
TOTAL LIABILITIES & EQUITY	867,563.21	

06/08/21
Accrual Basis

Profit & Loss
October 2020 through April 2021

Oct- Dec 20	Jan - Mar 21	Apr 21	TOTAL

Income		
Interest Income	43.37	433.19	193.07	669.63	
Maintenance Assessements (4%)	-7,942.00	-456.00	114.00	-8,284.00	
Maintenance Assessments - Levy	202,850.68	26,617.12	13,300.00	242,767.80	
Road Use Fee Revenue	1,344.03	2,829.95	904.82	5,078.80	
Total Income	196,296.08	29,424.26	14,511.89	240,232.23	
Gross Profit	196,296.08	29,424.26	14,511.89	240,232.23	
Expense					
ACCESS CONTROL					
Contractural Services	0.00	6,822.40	0.00		6,822.40	
Utilities	84.67	0.00	0.00		84.67	
Total ACCESS CONTROL	84.67	6,822.40		0.00	6,907.07	
ADMINISTRATION						
Assessment Rolls	1,000.00	0.00	0.00		1,000.00	
Attorney Fees	1,673.75	2,828.00	0.00		4,501.75	
Bank Fees	474.98	475.56	-144.27		806.27	
Computer- Website Support	300.00	0.00	105.00		405.00	
Dues, Licenses, Subscriptions	175.00	0.00	0.00		175.00	
Engineering Fees	2,253.75	1,573.75	8,711.25		12,538.75	
FICA Taxes	0.00	-93.71	-93.51		-187.22	
Insurances	28,688.00	0.00	0.00		28,688.00	
Legal Advertising	910.00	196.00	0.00		1,106.00	
Management Fees	13,749.00	13,749.37	0.00		27,498.37	
Office Supplies	68.56	0.00	0.00		68.56	
Postage	6.95	19.74	0.00		26.69	
Property Appraiser	0.00	0.00	268.28		268.28	
Property Tax Collector (2%)	-452.27	522.88	0.00		70.61	
Rentals & Leases	75.00	50.00	25.00		150.00	
Supervisor Expenses	800.00	1,000.00	0.00		1,800.00	
Trascription Costs	120.00	175.00	0.00		295.00	

Total ADMINISTRATION	49,842.72	20,496.59	8,871.75	79,211.06	
CAPITAL EXPENDITURES & PROJECTS
Contigency Reserves	
12,678.18	
8,822.42	
0.00	
21,500.60	
Gate Access Control	13,360.09	0.00	0.00	13,360.09	
Landscape Improvements	11,740.25	10,447.75	0.00	22,188.00	
Roads	0.00	13,777.50	1,465.00	15,242.50	
Street Lighting	1,984.45	-7,013.02	0.00	-5,028.57	

Total CAPITAL EXPENDITURES & PROJE...	39,762.97	26,034.65	1,465.00	67,262.62	
STREET LIGHTING
R&M - General	
2,400.00	
0.00	
0.00	
2,400.00	
Utilities - Electric	-225.61	0.00	0.00	-225.61	

Total STREET LIGHTING	2,174.39	0.00	0.00	2,174.39	

Total Expense	91,864.75	53,353.64	10,336.75	155,555.14	

Net Income	104,431.33	-23,929.38	4,175.14	84,677.09	

06/08/21

Reconciliation Summary
Fifth Third Public Fund, Period Ending 04/30/2021

Beginning Balance

Apr 30, 21

450,696.07

Cleared Transactions
Checks and Payments - 10 items	
-27,296.87		
Deposits and Credits - 5 items	14,341.12		
Total Cleared Transactions	
-12,955.75		
Cleared Balance	

	437,740.32	
Uncleared Transactions
Checks and Payments - 5 items	
-806.58		
Deposits and Credits - 1 item	0.00		
Total Uncleared Transactions	
-806.58		
Register Balance as of 04/30/2021	

	436,933.74	
New Transactions
Checks and Payments -10  items	
-32,937.26		
Total New Transactions	
-32,937.26		
Ending Balance		403,996.48	

Fifth Third Public Fund, Period Ending 04/30/2021

Type	Date	Num	Name	Cir	Amount	Balance

  
Beginning Balance
Cleared Transactions
Checks and Payments -10 items

 
450,696.07

Bill Pmt -Check	02/19/2021	1046	John Esposito	X	-200.00		-200.00	
Bill Pmt-Check	02/28/2021	1059	Hole Montes	X	-9,426.25		-9,626.25	
Bill Pmt -Check	02/28/2021	1060	Key Marco Commun...	X	-4,583.37		-14,209.62	
Bill Pmt-Check	02/28/2021	1058	Coleman, Yovanovic...	X	-1,568.00		-15,777.62	
Bill Pmt -Check	02/28/2021	1057	Casagrande Electric	X	-1,280.00		-17,057.62	
Bill Pmt -Check	02/28/2021	1061	Robert Flinn Record...	X	-25.00		-17,082.62	
Bill Pmt -Check	04/16/2021	1063	Hole Montes	X	-8,711.25		-25,793.87	
Bill Pmt -Check	04/16/2021	1064	Lykins-Signtek Deve...	X	-1,465.00		-27,258.87	
Bill Pmt-Check	04/16/2021	1065	Robert Flinn Record...	X	-25.00		-27,283.87	
Check	04/30/2021		X	-13.00		-27,296.87	
Total Checks and Payments			-27,296.87		-27,296.87	
Deposits and Credits - 5 items
Deposit	04/15/2021		
X	
3.77		
3.77	
Deposit	04/22/2021		X	13,145.72		13,149.49	
Deposit	04/26/2021		X	250.78		13,400.27	
Deposit	04/30/2021		X	36.03		13,436.30	
Deposit	04/30/2021		X	904.82		14,341.12	
Total Deposits and Credits			14,341.12		14,341.12	
Total Cleared Transactions			-12,955.75		-12,955.75	
Cleared Balance			-12,955.75		437,740.32	

Uncleared Transactions
Checks and Payments - 5 items						
Check	09/28/2020	2689S	Collier County Utilities	-116.88		-116.88	
Check	09/30/2020	50006	Luanne Kerins	-184.70		-301.58	
Bill Pmt -Check	12/01/2020	1030	Mary Beth Schewitz	-200.00		-501.58	
Bill Pmt -Check	02/19/2021	1052	Mary Beth Schewitz	-200.00		-701.58	
Bill Pmt -Check	04/16/2021	1062	Exploritech, Inc.	-105.00		-806.58	
Total Checks and Payments		-806.58		-806.58	
Deposits and Credits - 1 item
General Journal	09/30/2020	2020-01		
0.00		
0.00	
Total Deposits and Credits		0.00		0.00	
Total Uncleared Transactions		-806.58		-806.58	
Register Balance as of 04/30/2021		-13,762.33		436,933.74	

New Transactions
Checks and Payments - 10 items						
Bill Pmt -Check	05/20/2021	1066	Earthview	-17,820.00	-17,820.00	
Bill Pmt-Check	05/20/2021	1069	Key Marco Commun...	-9,344.76	-27,164.76	
Bill Pmt -Check	05/20/2021	1067	Hole Montes	-4,372.50	-31,537.26	
Bill Pmt -Check	05/20/2021	1071	Lykins-Signtek Deve...	-375.00	-31,912.26	
Bill Pmt -Check	05/20/2021	1070	Luanne Kerins	-200.00	-32,112.26	
Bill Pmt-Check	05/20/2021	1075	Terri Stanton	-200.00	-32,312.26	
Bill Pmt-Check	05/20/2021	1068	John Esposito	-200.00	-32,512.26	
Bill Pmt -Check	05/20/2021	1073	Mary Beth Schewitz	-200.00	-32,712.26	
Bill Pmt -Check	05/20/2021	1072	Lynn Domenici	-200.00	-32,912.26	
Bill Pmt -Check	05/20/2021	1074	Robert Flinn Record...	-25.00	-32,937.26	
Total Checks and Payments	-32,937.26		-32,937.26	
Total NewTransactions	-32,937.26		-32,937.26	

Ending Balance	-46,699.59		403,996.48	

06/08/21

Reconciliation Detail
Fifth Third Money Market, Period Ending 04/30/2021

Type	Date	Num	Name	Cir

Beginning Balance
Cleared Transactions
Deposits and Credits - 1 item

Amount	Balance

459,785.27

Deposit		04/30/2021 Total Deposits and Credits
Total Cleared Transactions Cleared Balance
Uncleared Transactions Deposits and Credits - 1 item
General Journal	09/30/2020	2020-01
Total Deposits and Credits

X	75.51	75.51
 	
75.51	75.51

75.51	75.51
 	
75.51	459,860.78

0.00	0.00
 	
 	0.00	0.00

Total Uncleared Transactions	 	0.00	0.00

Register Balance as of 04/30/2021

Ending Balance

75.51	459,860.78

75.51	459,860.78

 

06/08/21

Reconciliation Summary
Fifth Third Money Market, Period Ending 04/30/2021

Beginning Balance Cleared Transactions
Deposits and Credits - 1 item Total Cleared Transactions
Cleared Balance

Uncleared Transactions

Apr 30, 21

75.51

75.51

459,785.27

459,860.78

Deposits and Credits - 1 item	0.00		
Total Uncleared Transactions Register Balance as of 04/30/2021	
 	0.00	

459,860.78	
Ending Balance		459,860.78	

KEY MARCO COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY, FLORIDA
FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020

KEY MARCO COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY, FLORIDA

TABLE OF CONTENTS

	    Page		
INDEPENDENT AUDITOR’S REPORT	1-2	
MANAGEMENT’S DISCUSSION AND ANALYSIS	3-6	
BASIC FINANCIAL STATEMENTS		
Government-Wide Financial Statements:		
Statement of Net Position	7	
Statement of Activities	8	
Fund Financial Statements:		
Balance Sheet – Governmental Funds	9	
Reconciliation of Balance Sheet – Governmental Funds
to Statement of Net Position	
10	
Statement of Revenues, Expenditures and Changes in Fund Balances –
Governmental Funds	
11	
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balances of Governmental Funds to the Statement of Activities	
12	
Notes to the Financial Statements	13-18	
REQUIRED SUPPLEMENTARY INFORMATION		
Schedule of Revenues, Expenditures and Changes in Fund Balance –
Budget and Actual – General Fund	
19	
Notes to Required Supplementary Information	20	
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	

21-22	
INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE WITH THE REQUIREMENTS OF SECTION 218.415, FLORIDA STATUTES, REQUIRED BY RULE 10.556(10)
OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA	

23	
MANAGEMENT LETTER PURSUANT TO THE RULES OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA	
24-25	

INDEPENDENT AUDITOR’S REPORT

To the Board of Supervisors
Key Marco Community Development District Collier County, Florida

Report on the Financial Statements

951 Yamato Road ▪ Suite 280 Boca Raton, Florida   33431 (561) 994-9299 ▪ (800) 299-4728
Fax (561) 994-5823
www.graucpa.com

We have audited the accompanying financial statements of the governmental activities and the major fund of Key Marco Community Development District, Collier County, Florida (“District”) as of and for the fiscal 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 the major fund of the District as of September 30, 2020, and the respective changes in financial position thereof for the fiscal 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 and budgetary comparison information 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 May 26, 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.

May 26, 2021

MANAGEMENT’S DISCUSSION AND ANALYSIS

Our discussion and analysis of Key Marco Community Development District, Collier County, Florida (“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 $4,714,403.

The change in the District’s total net position in comparison with the prior fiscal year was ($231,990), a decrease. 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 fund reported an ending fund balance of
$815,372, an increase of $5,324 in comparison with the prior fiscal year. The total fund balance is non-spendable for prepaid items and the remainder is unassigned fund balance which is available for spending at the District’s discretion.

OVERVIEW OF FINANCIAL STATEMENTS

This 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 other 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, deferred outflows of resources, liabilities, and deferred inflows of resources 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.

OVERVIEW OF FINANCIAL STATEMENTS (Continued)

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 balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.

The District maintains one governmental fund for external reporting. Information is presented in the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances for the general fund. The general fund is considered a major fund.

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.

Notes to the Financial Statements

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

$	815,372  $

844,917

Capital assets, net of depreciation	 	3,899,031	4,136,345  	
Total assets	 	4,714,403	4,981,262  	
Current liabilities	 	-	34,869  	
Total liabilities	 	-	34,869  	
Net position
Investment in capital assets	3,899,031	4,136,345
Unrestricted	 	815,372	810,048  
Total net position	$    4,714,403   $	4,946,393  

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.

The remaining balance of unrestricted net position may be used to meet the District’s other obligations.

GOVERNMENT-WIDE FINANCIAL ANALYSIS (Continued)

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

Key elements of the change in net position are reflected in the following table:

CHANGES IN NET POSITION
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,
 	2020	2019	
Revenues:

Program revenues Charges for services

$	328,314  $

617,209

Operating grants and contributions	7,062	160,810
General revenues	 	15,355	23,871  
Total revenues	 	350,731	801,890 Expenses:
General government	167,318	171,867
Maintenance and operations	 	415,403	661,590  
Total expenses	 	582,721	833,457  
Change in net position	(231,990)	(31,567)
Net position - beginning	 	4,946,393	4,977,960  
Net position - ending	$    4,714,403   $	4,946,393  

As noted above and in the statement of activities, the cost of all governmental activities during the fiscal year ended September 30, 2020 was $582,721. The costs of the District’s activities were primarily funded by program revenues. Program revenues, comprised primarily of assessments, decreased during the current fiscal year as a result of the District receiving less funds from FEMA for Hurricane Irma in the current year. In total, expenses, including depreciation, decreased from the prior fiscal year. The majority of the decrease was the result of a decrease in hurricane related expenses and landscape maintenance and repairs.

GENERAL BUDGETING HIGHLIGHTS

An operating budget was adopted and maintained by the governing 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 in the aggregate. Any budget amendments that increase the aggregate budgeted appropriations must be approved by the Board of Supervisors. Actual general fund expenditures for the fiscal year ended September 30, 2020 exceeded appropriations by $(11,190). The over expenditures were funded by available fund balance.

CAPITAL ASSETS

At September 30, 2020, the District had $9,630,805 invested in in capital assets for its governmental activities. In the government-wide financial statements depreciation of $5,731,774 has been taken, which resulted in a net book value of $3,899,031. More detailed information about the District’s capital assets is presented in the notes of the financial statements.

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, land owners, taxpayers, customers, investors 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 Key Marco Community Development District’s management at 505 Whiskey Creek Drive, Marco Island, FL 34145.

STATEMENT OF NET POSITION SEPTEMBER 30, 2020

ASSETS
Cash

Governmental
 	Activities	

$	810,947

Accounts receivables	719
Prepaids	3,706
Capital assets:
Depreciable	1,929,828
Nondepreciable	 	1,969,203  
Total assets	 	4,714,403  

NET POSITION		
Investment in capital assets	3,899,031	
Unrestricted	 	815,372  	
Total net position	  $ 4,714,403  	

See notes to the financial statements

STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020

Program Revenues Charges	Operating

Net (Expense) Revenue and Changes in Net Position

for	Grants and	Governmental
Functions/Programs	Expenses	Services	Contributions	Activities Primary government:
Governmental activities:

General government

$	167,318	$

167,318	$	-	$	-

Maintenance and operations	 	415,403	160,996	7,062	(247,345) 
Total governmental activities	 	582,721	328,314	7,062	(247,345) 

General revenues:
Interest and other revenues	 	15,355  	
Total general revenues	 	15,355  	
Change in net position	(231,990)	
Net position - beginning	 	4,946,393  	
Net position - ending	  $	4,714,403  	

See notes to the financial statements

BALANCE SHEET GOVERNMENTAL FUNDS SEPTEMBER 30, 2020

ASSETS

   Major Fund General

Total Governmental Funds

Cash

$	810,947	$

810,947

Account receivable	719	719
Prepaids	3,706	3,706

Total assets	$	815,372	$	815,372  

LIABILITIES AND FUND BALANCES
Fund balances:
Nonspendable:		
Prepaids	3,706	3,706	
Unassigned	811,666	811,666	
Total fund balances	815,372	815,372	

Total liabilities and fund balances	$	815,372	$	815,372  

See notes to the financial statements

RECONCILIATION OF BALANCE SHEET – GOVERNMENTAL FUNDS TO STATEMENT OF NET POSITION
GOVERNMENTAL FUNDS SEPTEMBER 30, 2020

Total fund balances - governmental funds	$	815,372 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 as assets in the governmental funds. The statement of net position includes those capital assets, net of any accumulated depreciation, in the net position of the government as a whole.
Cost of capital assets	9,630,805
Accumulated depreciation	(5,731,774)      3,899,031 Net position of governmental activities		$ 4,714,403

See notes to the financial statements

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020

Total
   Major Fund Governmental
	General	Funds	
REVENUES
Assessments	
$	328,314	
$	328,314	
Grant revenue	7,062	7,062	
Interest and other revenues	15,355	15,355	
Total revenues	350,731	350,731	

EXPENDITURES
Current:
General government	167,318	167,318	
Maintenance and operations	178,089	178,089	
Total expenditures	345,407	345,407	

Excess (deficiency) of revenues over (under) expenditures	

5,324	

5,324	
Fund balances - beginning	810,048	810,048	

Fund balances - ending	$	815,372	$	815,372  

See notes to the financial statements

RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020

Net change in fund balances - total governmental funds	$	5,324 Amounts reported for governmental activities in the statement of
activities are different because:
Depreciation on capital assets is not recongnized in the governmental fund  financial statement but is reported as an
expense in the statement of activities.	 		(237,314) Change in net position of governmental activities		$ (231,990)

See notes to the financial statements

NOTES TO FINANCIAL STATEMENTS

NOTE 1 – NATURE OF ORGANIZATION AND REPORTING ENTITY

Key Marco Community Development District ("District") was created on July 7, 1992 pursuant to the Uniform Community Development District Act of 1980, otherwise known as Chapter 190, Florida Statutes, under Collier County Ordinance 92-45. 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. Ownership of land within the District entitles the owner to one vote per acre. 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.

The financial statements were prepared in accordance with Governmental Accounting Standards Board (“GASB”) Statements. Under the provisions of those standards, the financial reporting entity consists of the primary government, organizations for which the District is considered to be financially accountable and other organizations for which the nature and significance of their relationship with the District are such that, if excluded, the financial statements of the District would be considered incomplete or misleading. There are no entities considered to be component units of the District; therefore, the financial statements include only the operations of the District.

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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.

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 to be recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.

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.

Assessments
Assessments are non-ad valorem assessments on benefited lands within the District. Assessments are levied to pay for the operations and maintenance of the District. The fiscal year for which annual assessments are levied begins on October 1 with discounts available for payments through February 28 and become delinquent on April 1. The District’s annual assessments for operations and debt service are billed and collected by the County Tax Assessor/Collector. The amounts remitted to the District are net of applicable discounts or fees and include interest on monies held from the day of collection to the day of distribution.

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.

The District reports the following major governmental fund:

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.

When both restricted and unrestricted resources are available for use, it is the government’s policy to use restricted resources first for qualifying expenditures, then unrestricted resources as they are needed.

Assets, Liabilities and Net Position or Equity

Restricted Assets
These assets represent cash and investments set aside pursuant to contractual restrictions.

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

Deposits and Investments (Continued)
Securities listed in paragraph c and d shall be invested to provide sufficient liquidity to pay obligations as they come due. In addition, surplus funds may be deposited into certificates of deposit which are insured.

The District records all interest revenue related to investment activities in the respective funds. Investments are measured at amortized cost or reported at fair value as required by generally accepted accounting principles.

Inventories and Prepaid Items
Inventories of governmental funds are recorded as expenditures when consumed rather than when purchased.

Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements.

Capital Assets
Capital assets, which include property, plant and equipment, and infrastructure assets (e.g., roads, sidewalks and similar items) are reported in the government 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 cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at acquisition value at the date of donation.

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	
Building and improvements Infrastructure assets Machinery and equipment	10 – 30
10 – 40
20	

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.

Unearned Revenue
Governmental funds report unearned revenue in connection with resources that have been received, but not yet earned.

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.

In the fund financial statements, governmental fund types recognize premiums and discounts, as well as issuance costs, during the current period. The face 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.

Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial 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 that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then.

In addition to liabilities, the statement of financial 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 that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time.

Fund Equity/Net Position
In the fund financial statements, governmental funds report non spendable and restricted fund balance for amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose. Assignments of fund balance represent tentative management plans that are subject to change.

The District can establish limitations on the use of fund balance as follows:

Committed fund balance – Amounts that can be used only for the specific purposes determined by a 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) that imposed the constraint originally. Resources accumulated pursuant to stabilization arrangements sometimes are reported in this category.

Assigned fund balance – Includes spendable fund balance amounts established by the Board of Supervisors that are intended to be used for specific purposes that are neither considered restricted nor 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.

The District first uses committed fund balance, followed by assigned fund balance and then unassigned fund balance when expenditures are incurred for purposes for which amounts in any of the unrestricted fund balance classifications could be used.

Net position is the difference between assets and deferred outflows of resources less liabilities and deferred inflows of resources. Net position in the government-wide financial statements are categorized as net investment in capital assets, restricted or unrestricted. Net investment in capital assets represents net position related to infrastructure and property, plant and equipment. Restricted net position represents the assets restricted by the District’s Bond covenants or other contractual restrictions. Unrestricted net position consists of the net position not meeting the definition of either of the other two components.

Other Disclosures

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.

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.
All budget changes must be approved by the District Board.
The budgets are adopted on a basis consistent with generally accepted accounting principles.
Unused appropriation for annually budgeted funds lapse at the end of the year.

NOTE 4 – DEPOSITS

The District’s cash balances were entirely covered by federal depository insurance or by a collateral pool pledged to the State Treasurer. Florida Statutes Chapter 280, "Florida Security for Public Deposits Act", requires all qualified depositories to deposit with the Treasurer or another banking institution eligible collateral equal to various percentages of the average daily balance for each month of all public deposits in excess of any applicable deposit insurance held. The percentage of eligible collateral (generally, U.S. Governmental and agency securities, state or local government debt, or corporate bonds) to public deposits is dependent upon the depository's financial history and its compliance with Chapter 280. In the event of a failure of a qualified public depository, the remaining public depositories would be responsible for covering any resulting losses.

NOTE 5 – CAPITAL ASSETS

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

Governmental activities
Capital assets, not being depreciated

Beginning Balance

Additions	Reductions

Ending Balance

Land and land improvements

$	1,969,203   $	-	$

-	$	1,969,203

Total capital assets, not being depreciated	1,969,203	-	-	1,969,203	

Capital assets, being depreciated Buildings	

143,369	

-	

-	

143,369	
Improvements	883,297	-	-	883,297	
Infrastructure	6,511,876	-	-	6,511,876	
Machinery & Equipment	123,060	-	-	123,060	
Total capital assets, being depreciated	7,661,602	-	-	7,661,602	

Less accumulated depreciation for: Buildings	

120,645	

4,779	

-	

125,424	
Improvements	714,518	21,108	-	735,626	
Infrastructure	4,614,175	205,274	-	4,819,449	
Machinery & Equipment	45,122	6,153	-	51,275	
Total accumulated depreciation	5,494,460	237,314	-	5,731,774	

Total capital assets, being depreciated, net	
2,167,142	
(237,314)	
-	1,929,828	

Governmental activities capital assets, net	
$	4,136,345	
$	(237,314)	
$	-	$	3,899,031	

Depreciation expense was charged to maintenance and operations.

NOTE 6 – MANAGEMENT AGREEMENT

In February 2017, the District entered into an agreement with Key Marco Community Association (“KMCA”) regarding District management services. Per the agreement, the HOA Manager will provide District management services and will report to both the KMCA Board and the District Board. The District has agreed to pay KMCA an annual management fee of $72,000. The agreement is for a one year term and is automatically renewed for successive one year periods. This agreement was terminated in May 2019, at which point the District contracted with Inframark for management services. The contract with Inframark was terminated in October 2019. In November 2019 a new agreement was entered into between the District and KMCA for District management services for an annual fee of $55,000. For the fiscal year ended September 30, 2020, the District paid a total of $56,760 to KMCA and Inframark for these services.

NOTE 7 – 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. There were no settled claims during the past three years.

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – GENERAL FUND FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020

	
Budgeted
 	Amounts	 Original & Final	

Actual Amounts	Variance with Final Budget - Positive
(Negative)	
REVENUES
Assessments	
$	315,017	
$	328,314	
$	13,297	
Grant revenue	-	7,062	7,062	
Interest and other revenues	19,200	15,355	(3,845)	
Total revenues	334,217	350,731	16,514	

EXPENDITURES
Current:
General government	121,697	167,318	(45,621)	
Maintenance and operations	212,520	178,089	34,431	
Total expenditures	334,217	345,407	(11,190)	

Excess (deficiency) of revenues over (under) expenditures	

  $	-		

5,324	

  $	5,324  	

Fund balance - beginning	 	810,048  

Fund balance - ending	$	815,372  

See notes to required supplementary information

NOTES TO REQUIRED SUPPLEMENTARY INFORMATION

The District is required to establish a budgetary system and an approved Annual Budget for the general fund. The District’s budgeting process is based on estimates of cash receipts and cash expenditures which are approved by the Board. The budget approximates a basis consistent with accounting principles generally accepted in the United States of America (generally accepted accounting principles).

The legal level of budgetary control, the level at which expenditures may not exceed budget, is in the aggregate. Any budget amendments that increase the aggregate budgeted appropriations must be approved by the Board of Supervisors. Actual general fund expenditures for the fiscal year ended September 30, 2020 exceeded appropriations by $(11,190). The over expenditures were funded by available fund balance.

951 Yamato Road ▪ Suite 280 Boca Raton, Florida   33431 (561) 994-9299 ▪ (800) 299-4728
Fax (561) 994-5823
www.graucpa.com

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
Key Marco Community Development District Collier County, Florida

We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities and the major fund of Key Marco Community Development District, Collier County, Florida (“District”) as of and for the fiscal 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 opinion thereon dated May 26, 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) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of 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, and contracts, and agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

We noted certain matters that we reported to management of the District in a separate letter dated May 26, 2021.

The District's response to the finding identified in our audit is described in the accompanying Management Letter. We did not audit the District's response and, accordingly, we express no opinion on it.

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.

May 26, 2021

INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE WITH THE REQUIREMENTS OF SECTION 218.415, FLORIDA STATUTES, REQUIRED BY RULE 10.556(10) OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA

To the Board of Supervisors
Key Marco Community Development District Collier County, Florida

We have examined Key Marco Community Development District, Collier County, Florida’s (“District”) compliance with the requirements of Section 218.415, Florida Statutes, in accordance with Rule 10.556(10) of the Auditor General of the State of Florida during the fiscal year ended September 30, 2020. Management is responsible for the District’s compliance with those requirements. Our responsibility is to express an opinion on the District’s compliance based on our examination.

Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. 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 in Section 218.415, Florida Statutes. 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 judgment, including an assessment of the risks 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 specified requirements.

In our opinion, the District complied, in all material respects, with the aforementioned requirements for the fiscal 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 the Florida House of Representatives, the Florida Auditor General, management, and the Board of Supervisors of Key Marco Community Development District, Collier County, Florida and is not intended to be and should not be used by anyone other than these specified parties.

May 26, 2021

MANAGEMENT LETTER PURSUANT TO THE RULES OF THE AUDITOR GENERAL FOR THE STATE OF FLORIDA

To the Board of Supervisors
Key Marco Community Development District Collier County, Florida

Report on the Financial Statements

We have audited the accompanying basic financial statements of Key Marco Community Development District ("District") as of and for the fiscal year ended September 30, 2020, and have issued our report thereon dated May 26, 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 Florida Auditor General.

Other Reporting Requirements

We have issued our Independent Auditor’s Report on Internal Control over Financial Reporting and Compliance and Other Matters based on an audit of the financial statements performed in accordance with Government Auditing Standards; and Independent Auditor’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 May 26, 2021, should be considered in conjunction with this management letter.

Purpose of this Letter

The purpose of this letter is to comment on those matters required by Chapter 10.550 of the Rules of the Auditor General for the State of Florida. Accordingly, in connection with our audit of the financial statements of the District, as described in the first paragraph, we report the following:

Current year findings and recommendations.
Status of prior year findings and recommendations.
Compliance with the Provisions of the Auditor General of the State of Florida.

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

We wish to thank Key Marco Community Development District, Collier County, Florida and the personnel associated with it, for the opportunity to be of service to them in this endeavor as well as future engagements and the courtesies extended to us.

May 26, 2021

REPORT TO MANAGEMENT

CURRENT YEAR FINDINGS AND RECOMMENDATIONS 2020-01 Budget:
Observation: Actual expenditures exceeded appropriations in the general fund for the fiscal year ended September 30, 2020.

Recommendation:  The District should amend the budget during the fiscal year or within statutory guidelines to ensure that all expenditures are properly budgeted.

Management Response: The CDD Board approved a resolution at the April 21, 2021, Resolution 2021-04 to amend the budget for expenditures exceeding appropriations.

PRIOR YEAR FINDINGS AND RECOMMENDATIONS

None

COMPLIANCE WITH THE PROVISIONS OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA

Unless otherwise required to be reported in the auditor’s report on compliance and internal controls, the management letter shall include, but not be limited to the following:

A statement as to whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report.

There were no significant findings and recommendations made in the preceding annual financial audit report for the fiscal year ended September 30, 2019.

Any recommendations to improve the local governmental entity's financial management.

There were no such matters discovered by, or that came to the attention of, the auditor, to be reported for the fiscal year ended September 30, 2020, except as noted above.

Noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance.

There were no such matters discovered by, or that came to the attention of, the auditor, to be reported, for the fiscal year ended September 30, 2020, except as noted above.

The name or official title and legal authority of the District are disclosed in the notes to the financial statements.

The District has not met one or more of the financial emergency conditions described in Section 218.503(1), Florida Statutes.

We applied financial condition assessment procedures and no deteriorating financial conditions were noted as of September 30, 2020. It is management’s responsibility to monitor financial condition, and our financial condition assessment was based in part on representations made by management and the review of financial information provided by same.