University Park Recreation District
3501 Quadrangle Blvd., Suite 270, Orlando, FL 32817	Phone: 407-723-5900 Fax: 407-723-5901
http://universityparkrd.com/

The Auditor Selection Committee Meeting of the University Park Recreation District will be held on Monday, August 8, 2022, at 10:00 a.m. at the Community Center located at 8301 The Park Boulevard, University Park, FL 34201 and or virtually.

Meeting ID: 845 8893 8513
Passcode: 755354
Join meeting via Zoom:
https://us02web.zoom.us/j/84588938513?pwd=eUE4Q3BTNGVLNXBsOGViRXk1cWo2QT09

AUDITOR SELECTION COMMITTEE AGENDA

Call to Order

Roll Call to Confirm Quorum

Public Comment Period [for any members of the public desiring to speak on any proposition before the Committee]

Review of Auditing Services Proposals Received
Phillips Harvey Group

Ranking of Auditing Services Proposals Received

Adjournment

Date	Meeting Type	Time	Location	Note	
August 30, 2022	Workshop Meeting	10:00 AM	University Park	Community Center	
August 30, 2022	BOS Special Meeting	10:00 AM
and or immediately following the Adjournment
of BOS Workshop	University Park	Community Center	

University Park Recreation District

Review of Auditing Services Proposals Received Phillips Harvey Group

University Park Recreation District

AUDIT PROPOSAL

July 25, 2022

Prepared By:
Phillips Harvey Group CERTIFIED PUBLIC ACCOUNTANTS
801 Laurel Oak Drive, Suite 303
Naples, Florida 34108-2764
239.566.1600
FAX: 239.566.1901
TAX ID: 59-2840381

TABLE OF CONTENTS
OVERVIEW	3
LETTER OF TRANSMITTAL	4
OUR PROFESSIONAL TEAM AND RESOURCE	6
TECHNICAL PROPOSAL
Our Services	7
Our Resources	8
Our Independence	9
Our Experience	10
Our Engagement Requirements	12
Our Audit Approach	12
Our Coordination of Work	14
Our Management Letters	14
Our Professional Fees	15
APPENDIX 1 – QUALITY CONTROL REPORT	16
APPENDIX 2 – PROPOSER'S RESUMES	18
EXHIBIT A – ROTATED AUDIT EMPHASIS EXAMPLES	22

Overview

WHO WE ARE:
Phillips Harvey Group, P.A. has the strength of its personnel and its diverse and prestigious clientele. We are a major provider of services to independent special government authorities and Clubs in Florida. For over sixty years now, we have worked hard to earn and maintain our reputation as the foremost accounting professionals in our community and abroad. Our goal, as it has always been, is to provide each of our clients the utmost in quality and timely professional services. We are extremely proud of the outstanding team we have assembled to serve you. Our team brings you over 100 years of relevant experience coupled with the technical skill, knowledge, dedication, and, most of all, the commitment to excellent service as well as commitment to meet the concerns and expectations that lie ahead. We provide audit and business advisory services to various governmental agencies and club entities requiring Yellow Book, GAAP, and/or A-133 audits in Southwest Florida. In addition, we serve over forty-five private clubs in Southwest Florida. The following represents a "snapshot" of certain audit clients we continue to serve requiring such services:

Entity	Type of Entity	Type of Engagement	
University Park Recreation District	Special District	Yellow Book Audit	
Lely Community Development District	Special District	Yellow Book Audit	
Pelican Marsh Community Development District	Special District	Yellow Book Audit	
Friends of Rookery Bay, Inc.	Non-Profit	Yellow Book Audit	
The Meadows Country Club, Inc.	Country Club	GAAP Audit & Tax	
River Strand Golf & Country Club, Inc.	Country Club	GAAP Audit & Tax	
The Port Royal Club, Inc.	Country Club	GAAP Audit & Tax	
Windstar Club, Incorporated	Country Club	GAAP Audit & Tax	
In addition, the audit team we have selected for the District has extensive experience with your type of industry and complex audits. We presently serve over twenty-five private clubs in Florida. Our team assigned has been involved with audits of counties, cities, towns, and special districts. Our Firm is heavily experienced in auditing compliance with various grants and/or contracts. Additionally, Nathan Phillips has several years of professional experience assisting clients in maintaining the Certificate of Achievement for Excellence in Financial Reporting.
Because of our desire and uncompromising commitment to maintain and provide superb quality service, we continue to be members of the Private Company Practices Section of the American Institute of Certified Public Accountants. As a result of our membership, we underwent our seventh independent inspection performed by a large national CPA firm of our quality control procedures (see Appendix 1). We are proud to point out that we received an unqualified opinion with no comments for improvements, which is an accomplishment that few firms have obtained. This program also includes a review of specific governmental engagements.
WHY US
We value you as a client, and will be there to assist you with your needs.
We are reliable and always accessible whenever you need us.
We are committed to you and will be a center of excellence for you to reach your objectives.
Our goal is to be your most trusted advisor.

Letter of Transmittal

July 25, 2022

Board of Supervisors
UNIVERSITY PARK RECREATION DISTRICT
12051 Corporate Boulevard
Orlando, FL 32817

RE: Proposal for Audit Services Auditor Selection Committee:
The selection of an Independent Certified Public Accounting firm is an important decision for
UNIVERSITY PARK RECREATION DISTRICT (the “District”). The District has an opportunity to select full-service auditors and business tax advisors that have successfully demonstrated the ability to deliver quality service, combining the responsive personal contact associated with smaller firms and the sophisticated professional resources of national accounting firms. We will bring an unbiased perspective to the audit process and the motivation to meet the challenges facing the District.

We understand the scope of the District’s engagements to be as follows:

An annual financial audit in accordance with U.S. generally accepted auditing standards and Government Auditing Standards as of and for the years ended September 30, 2022 with a two-year annual renewal for the years ended September 30, 2023 and 2024.

Phillips Harvey Group, P.A. has been serving Florida as auditors and business tax advisors for over sixty years. All work of the firm is performed out of our office located at 801 Laurel Oak Drive, Suite 303, Naples, Florida.

We are a properly licensed certified public accounting firm and are members of the American Institute of Certified Public Accountants and the Florida Institute of Certified Public Accountants. All professional staff upon successful completion of the CPA exam become members of both the American and Florida Institutes of Certified Public Accountants. All key professional staff are properly licensed to practice in the State of Florida.

Nathan A. Phillips, CPA, will be the engagement partner and leads the team with over thirty years of experience in auditing private clubs as well as public, private and not-for-profit entities in Florida. The auditor in-charge on the engagement team, Shannon Huber, has eight years’ experience as an Audit Manager with Price Waterhouse and twenty years of experience serving in senior accounting management roles. Her diverse business background provides a strong resource for assisting clients with day-to-day accounting issues as well as more complex, technical concerns.

Letter of Transmittal (Continued)

University Park Recreation District Selection Committee
UNIVERSITY PARK RECREATION DISTRICT July 25, 2022

Nathan A. Phillips, CPA is the Firm’s audit and managing partner and is authorized to make representations on behalf of the Firm. We are extremely proud of the outstanding team we have assembled to serve you. Our team brings you many years of relevant experience coupled with the technical skill, knowledge, dedication, and, most of all, the commitment to excellent service as well as commitment to meet the concerns and expectations that lie ahead. Our team represents the "right choice" as the District's auditors because:

We value the District as a client.
We are always accessible to be responsive to any need or demand.
We have a long-standing commitment to and a well-documented reputation for quality and excellence.
We have the breadth and depth of capabilities and experience required to meet the audit, tax and accounting needs.
We appreciate the need for performing an audit with a minimal amount of disruption to the employees of your District and for providing services on a timely basis by strictly adhering to imposed deadlines.
We understand the issues involved in meeting your audit, including compliance with applicable policies, procedures and laws.
You can rely upon us to keep management informed on a timely basis regarding potential problem areas as a means to take corrective action.
We look beyond the audited financial statements to improve your overall District.
We are committed to being business advisors rather than just auditors for our clients.
We rotate various areas of the audit annually to give emphasis to assessing operational effectiveness and/or efficiencies.

With respect for the past, a firm grasp on the present, and a healthy outlook for meeting challenges of the future, our Firm intends to continue growing in Florida, and we will continue seeking opportunities to provide even greater services to our clients. You can be assured our clients will be the first to benefit from our growth. We stake "OUR WELL DESERVED REPUTATION" on it.

Under our professional standards, we are required to perform certain due diligence procedures prior to the acceptance of an audit engagement. Although we do not anticipate any difficulties, our ultimate acceptance of this engagement is based upon the successful completion of such steps.

Phillips Harvey Group, P.A. looks forward to a long and mutually beneficial association with the District.

PHILLIPS HARVEY GROUP, P.A. CERTIFIED PUBLIC ACCOUNTANTS

Our Professional Team

Nathan A. Phillips, CPA – Managing Partner

Overall decision maker.
Develops audit strategies and approaches.
Primary responsibility for all services provided.
Maintains continuous contact with senior management.
Responsible for the resolutions of all engagement issues.
Technical and quality control reviewer.

Stephanie Feldman, CPA – Partner

Technical resource.
Reviews for the Firm's quality assurance over the form and content of the financial statements and our auditor's report
	Experienced in preparation of Individual, Corporate, and Partnership Tax Returns

David Phillips, CPA, MBA – Senior Audit Manager

Involved with the audit planning process.
Performs procedures and testing during the course of the audit.
Executes audit approach within time deadlines.
Supervises all staff

Shannon L. Huber, CPA – Client Service Manager

Oversees developing the audit approach.
Assists in planning and direction of the audit.
Resolves all technical issues.
Supervises all staff.

Our Services

Accounting and Auditing
Accounting and auditing services primarily involves the audit of financial statements and the issuance of an opinion on the fairness of the presentation of financial position and results of operations of the client. We use a constructive approach in auditing. For example, as a result of acquiring intimate knowledge of the Association's financial and administrative activities, we would be in a position to offer recommendations that enable the Association to increase efficiency of operations, strengthen its financial structure and improve accounting and administrative controls. Our philosophy and practice is to blend the technical, practical and business approach in the conduct of each engagement.
Our audit approach involves a series of stages, and in each of these we view the audit from a "top down" perspective. We begin the audit by determining your "expectations and concerns" and incorporate them into our overall audit plan to satisfy your objective while performing an efficient and effective audit. In addition, we rotate our audit emphasis each year. Our emphasis is driven by various risks, client concerns and/or to assess operational effectiveness and/or efficiencies. See our example, “Exhibit A”; of various areas where we have rotated our audit emphasis each year. This also means that we will assign staff to the engagement who already knows your business well and know how to develop an audit plan that relies on risk rather than spending time on unimportant details.
In addition, we would confer with the Controller when possible, to review your internal financial statements on a “quarterly basis” and have quarterly conference calls during the year. These financial statements are prepared by the responsible accounting personnel of the Association and we would arrange to meet with them, together with management, to review and evaluate the financial position and operating activities of that period. We have found this to be a most effective way of keeping in touch with current events and transactions, and it provides us the opportunity to offer accounting related input on an ongoing basis. This type of arrangement allows us to operate more as business advisors rather than just auditors.
Tax Services
Our Firm's Tax Services team is made up of professionals who provide year-round service to clients that only begins with the preparation of a return. All tax returns are processed in-house using state-of-the-art equipment to ensure a turnaround time that emphasizes our commitment to service our clients. Our team is comprised of professionals, each of whom perform tax consulting and review services to a variety of clients. In addition, the members of our accounting and auditing staff are responsible for certain aspects of the tax return preparation as part of their ongoing client responsibility.

Special Services

Our Firm provides consulting services to a variety of businesses. We assist with financial planning including operational and management reviews on behalf of our clients. These studies are useful for such purposes as profitability margins and efficiency performances. Our financial planning services cover such topics as F&B operations, compensation surveys and reviews, debt/equity analysis and suggestions for alternative methods of financing. We assist in determining the cost of providing service, analyze costs of capital, cash flow analysis, rates of return and perform a number of valuation studies.

Our Services (Continued)

Consulting Services
Consulting services encompass analyses of business problems, evaluation of the scope of the situation, and providing solutions and alternative procedures. Our purpose in this endeavor is to assist clients to solve their management problems. The scope of a consulting engagement is determined in large measure by the client, and depends partially on the extent of participation of the client's personnel. Our aim is to provide the know-how, not manpower.

Our consulting services are rendered by experienced personnel who provide the depth of knowledge necessary to serve clients in a wide range of functional areas, such as accounting systems, computer systems, financial controls, organization and personnel, and many more.

We particularly emphasize the need for strong and effective budgetary processes, and in this area of involvement, we offer a wealth of experience in reviewing and evaluating the budgetary procedures of various entities. On an ongoing basis we review and analyze actual results in comparison with budgeted amounts, conferring with top management of the Association as to the causative factors for variances and the follow-up action to be taken.

Educational Services
Our Club clients are kept informed of emerging issues and hot topics about various accounting and tax issues in the industry by participating in our monthly webinars presented through Club Tax Network and Firm seminar presentations on a variety of Club matters.

Management Information Systems
Our management information systems section draws on professionals from within our organization and those with special computer experience. Those individuals have experience in evaluation of hardware and software packages, installation and conversion assistance, training of personnel and review of efficiency and usefulness of client's existing computer systems. Our professionals have had a part of the significant change and monumental growth in South Florida has experienced and we are active in numerous local civic, business and social organizations. They are aware of and participate daily in the challenges that face a fast, growing county. Our clients represent all aspects of the Florida communities. We will bring this fresh knowledge and experience to help solve current and future problems facing the Association.

Our Resources

Club Tax Network
Club Tax Network (by invitation only) is a Club of accounting firms, law firms and other consultants serving the Private Club Industry with an appreciation for the role that state and federal taxes have in the overall equation. Our Firm's staff and Private Club clients receive continuing professional education and access to emerging issues via webinars and various Club specific accounting and tax resources. In addition, an annual Club Tax Network Summit is held for all member CPA Firms to discuss and address Hot Club Topics and/or emerging issues and off-site Club seminars with all partners of CPA firms.

Our Resources (Continued)

Club Benchmark, Inc.
A national resource giving us direct access to the club industry’s largest centralized database platform of 4,000 plus subscribing private clubs across the country. We have the edge to provide business model benchmarking reports to assist our club clients with financial strategy tools to make wise operational decisions and become leaders in their industry.

Beekman Report
The Beekman Report, prepared and produced by Phillips Harvey Group, contains statistical and operation data of 60 plus Clubs located in Southwest Florida. Nathan Phillips presents the Club statistical data at various Club events.

Hospitality Financial and Technology Professionals (HFTP)
Our team is actively involved in the HFTP local chapter. Shannon Huber, CPA is currently serving on the local chapter as Treasurer. Nathan A. Phillips, CPA was a previous board member and has been the organizations guest speaker on topics such as Club trends and tax issues.

Peer Review
Our Firm adheres to a peer review by Marcum LLP, a national CPA firm. A peer review is a system of quality control and encompasses the Firm's organizational structure, the policies adopted and procedures established to provide it with reasonable assurance of conforming to professional standards. The elements of quality control are described in the Statements on Quality Control Standards issued by the American Institute of Certified Public Accountants (AICPA). Our most recent peer review report is located under Appendix 1.

Our Independence

All professional personnel who work on accounting and auditing engagements are required to be independent by signing a representation letter when hired (and annually thereafter) that acknowledges their familiarity with the Firm’s relevant ethical requirements policy and procedures, particularly with regard to independence. The representation letter also lists known circumstances and relationships that may create a potential threat to independence or violate the Firm’s relevant ethical requirements policy. Professional standards, including the AICPA’s Conceptual Framework for AICPA Independence Standards as well as Government Auditing Standards (“yellow book”) and explicable Florida Statutes, and the advice of the audit partner are consulted if an employee is unsure if a threat to independence should be reported to the managing partner.

To ensure that independence is properly addressed at the engagement level, as part of the acceptance and continuance decision, the engagement partner obtains and considers relevant information about the engagement and evaluates circumstances and relationships that could cause a potential threat to independence, if any. In addition, for audit engagements, the engagement partner forms a conclusion on compliance with independence requirements. The work programs and forms in the accounting and auditing manuals used by the Firm contain steps requiring an evaluation of independence on each new engagement.

Our Experience

A summary of some of our yellow book and GAAP audit engagements includes the following:
Lely Community Development District (Naples, FL)
The auditor for the District for over fifteen years we have provided certain business advisory services pertaining to construction, debt servicing, pension plans, various GASB rules implementation, GASB 34 and interpretation of various rules of the Florida Auditor General. This is an audit performed in accordance with Government Auditing Standards. This client has certain federal, state, and local programs.
Pelican Marsh Community Development District (Naples, FL)
The auditor for the District for over ten years we have provided certain business advisory services pertaining to construction, debt servicing, pension plans, bond offerings/issuances, debt insubstance defeasance, various GASB rules implementation, GASB 34 and interpretation of various rules of the Florida Auditor General. This is an audit performed in accordance with Government Auditing Standards. This client has certain federal, state, and local programs.
The Meadows Country Club, Inc. (Sarasota, FL)
The auditor and business tax advisor of this Club for three years. Have assisted in various issues dealing with capital assessments, capital reporting/leases, benchmarking, sales and use tax and F&B operations. This engagement involves the audit of the financial statements in accordance with
U.S. generally accepted accounting principles, and generally accepted auditing standards, and the preparation of federal (990) and state (990T) tax returns.

Friends of Rookery Bay, Inc. (Naples, FL)
The auditor and business tax advisor of this Organization for many years. Have assisted in various nonprofit issues in dealing with new accounting standard implementation, tracking restrictions, and related allocations of expenses. This engagement involves the audit of financial statements in accordance with generally accepted auditing standards and Government Auditing Standards.
The Port Royal Club, Inc. (Naples, FL)
The auditor and business tax advisor of this Club since 2004. Have assisted in various issues dealing with capital assessments, investment policies and reporting, benchmarking, sales and use tax and F&B operations. This engagement involves the audit of the financial statements in accordance with U.S. generally accepted accounting principles, and generally accepted auditing standards, and the preparation of federal (990) and state (990T) tax returns.
River Strand Golf & Country Club, Inc. (Sarasota, FL)
The auditor and business tax advisor of this Club since 2019. Have assisted in various issues dealing with capital assessments, capital reporting/leases, benchmarking, sales and use tax and F&B operations. This engagement involves the audit of the financial statements in accordance with
U.S. generally accepted accounting principles, and generally accepted auditing standards, and the preparation of federal (1120) and state (F1120) tax returns.

Our Experience (Continued)

Windstar Club, Incorporated (Naples, FL)

The auditor and business tax advisor of this Club for sixteen years. We have provided turnover audits and Developer transition services, fixed asset reporting, benchmark reporting and construction accounting. This engagement involves the audit of the financial statements in accordance with U.S. generally accepted accounting principles, and generally accepted auditing standards, and the preparation of federal (1120) and state (F1120) tax returns.

Lely Community Development District
Mr. Neil Dorrill, District Manager
5672 Strand Court Ste 1 Naples, FL 34110
(239) 592-9115		Pelican Marsh Community Development District
Mr. Neil Dorrill, District Manager
5672 Strand Court Ste 1 Naples, FL 34110
(239) 592-9115	
			
River Strand Golf & Country Club, Inc.
Bryan Hawn, Controller/CFO
7155 Grand Estuary Trail Bradenton, FL 34212
(941) 708-3837		Friends of Rookery Bay, Inc.
Athan Barkoukis, Executive Director
300 Tower Road Naples, FL 34113
(239) 530-5990	
			
The Port Royal Club, Inc.
Mr. Thomas Birmingham, General Manager Mrs. Karen Naccarato, CFO, CPA
2900 Gordon Drive Naples, FL 34102
(239) 261-7615		Windstar Club, Incorporated Ms. Nancy Boros, General Manager 1700 Windstar Boulevard Naples, FL 34112
(239) 775-3400	

The Meadows Country Club, Inc.
Tony Johnson, General Manager Tom Murphy, Controller
3101 Longmeadow Sarasota, FL 34235
(941) 371-6000

Our Engagement Requirements

We understand the scope of the audit of the District to be a financial audit in accordance with U.S. generally accepted auditing standards and Government Auditing Standards as of September 30, 2022 and for the year then ended with an additional two-year renewal for the years ended September 30, 2023 and 2024. As a result of providing these proposed audit services, we will deliver the following final signed reports:

Our opinion of the financial statements of the UNIVERSITY PARK RECREATION DISTRICT for the years ended.
Management’s Discussion and Analysis as required by GASB 34
Schedules of Revenues and Expenses – Budget vs Actual (for the applicable years)
Notes to basic Financial Statements
Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards
Management Letter in accordance with the Rules of the Auditor General of the State of Florida
Attestation Report required by the Florida Statutes 218.415
Management Letter responses

Our Audit Approach

We have developed an engagement plan for serving the District, which will provide timely, efficient and constructive service.
The engagement will be under the direction of Nathan A. Phillips, CPA. Shannon Huber, CPA, and other members from our professional staff would be assigned to the engagement as required. In addition, the entire resources of our offices are at your disposal, making the knowledge and experience of all our partners and professionals available to you. We will approach the audit with a well-planned, streamlined audit approach based upon our extensive knowledge and experience with our clients with operations similar to that of the District.
The following are key characteristics of our service plan and philosophy:
Open ongoing planning, communication and teamwork
Participation of professionals with relevant experience and diverse backgrounds
State-of-the-art audit techniques
Comprehensive planning that includes obtaining an in-depth knowledge of the District and their goals and objectives.
Unique Audit Approach
The following distinguishes our team from our competitors:
Proven Quality Service - For all our clients we have demonstrated that we can deliver timely quality service for a variety of different types of engagements.
Club Trend Reporting - For all Club clients, we possess various trends and statistical information to enhance decision-making for operations and/or capital.

Our Audit Approach (Continued)

Responsive Communication - One of our distinguishing characteristics is our ability to deliver services and respond to our client inquires quickly and accurately. This is accomplished by quarterly “checks”.

Experienced Professionals - On the job, your client service team has significant industry experience from staff accountant to partner. We presently serve over 45 country clubs in SWFL.

Use of Audit Automation - We will utilize mainframes and microcomputers to streamline the audit process. As the need arises, our audit team can also provide training in the use of automation as a management tool.

Constructive Recommendations - We will provide the District with both operational and financial recommendations throughout the year.

Our team will utilize the Phillips Harvey Group, P.A. audit methodology which draws upon our experience in providing financial and compliance audit services to Florida entities. Our approach to audit planning involves a series of stages and in each we will view the audit from a "top down" perspective. We begin by obtaining an overall understanding of the business and related risks, including how it is organized and managed, and how it processes accounting and other information. We divide the audit into manageable parts and strategically analyze these parts to assess control and inherent risk and to increase our knowledge of the business. This approach enables us to focus quickly on those aspects of the business that significantly affect the financial statements and thereby reduce our efforts on other aspects. This understanding provides the basis for assessing risk and for determining our audit strategy. Technically, we describe it as risk-oriented, control- driven, and assertion-based.

To apply this "top down" approach in an efficient manner, we divide the audit into manageable parts, often into its business units reflecting the way the client is organized. We also divide the client's financial statements into suitable parts, which we refer to as components. For each component we consider the underlying assertions, inherent and control risks and possible controls. We then select audit procedures to obtain sufficient evidence regarding the validity of the assertions underlying the component.

Our audit approach is highly tailored to each client's unique operations and does not advocate (or tolerate) fitting clients' systems, procedures and accounting methodologies into predetermined rigid internal control checklists or "canned" audit programs, requiring a high level of communication between our staff and your professionals. Each phase and step of the audit is planned carefully, evaluated and executed based on the specific circumstances encountered. In addition, we rotate our audit emphasis driven by various risks, client concerns and/or to assess operational effectiveness and/or efficiencies. See our example “Exhibit A” of various areas we have rotated our audit emphasis each year.

We will communicate the status of the audit to your audit committee members on a regular basis and will meet periodically with key management to update them on any critical issues that may arise. At the conclusion of the audit, we will communicate our findings to the audit committee by oral and written presentations.

Our Coordination of Work

An understanding of the relationships between management and the Board of Supervisors and the timing of the performance of various phases of the audit is critical in performing the audit in a timely and efficient manner. We schedule our professionals to work on the audit based on the needs of your District. Your schedule dictates ours rather than the other way around.

The information and assistance needed from your District will be more specifically developed in joint planning meetings with the Accounting Department personnel and other representatives. Detailed schedules, analyses and reconciliations to be prepared by your team and their expected completion dates will be mutually agreed upon by our team and your accounting personnel at the District. We will provide a prepared by client list to help facilitate this process.

We will make every effort to use information developed by the District in the normal course of its internal financial analysis and closing process for our audit purposes.

As is customary, we will expect certain administrative and clerical assistance throughout the engagement. For instance, certain audit tests will require the retrieval of documentary evidence to support transactions, balances and compliance matters. These requests will be made well in advance so as to minimize any significant interference with the normal duties of your employees.

We will also ask for secretarial assistance in typing certain correspondence necessary for the audit. Examples of these items may include letters to attorneys on legal matters and written responses from the District on oral representations made to us during the course of the audit.

Our Management Letters

We believe our management letter is one of the most significant products of our basic audit services. Our goal is to assist you in every way we can and our management letter is a vehicle through which we can advise you of potential operational enhancements. Our clients have indicated that they find our suggestions both helpful and practical, the outgrowth of our business approach to auditing and our understanding of their operations and financial objectives. We apply judgment and a thorough comprehension of the facts of the situation to provide suggestions for improvements.

Our goal in such a process is to assist you. When writing our recommendations, we strive always to give practical advice that recognizes your philosophy and style of operating. We are particularly concerned that the "fix" does not exceed the tangible benefits.

We look for opportunities for systems control improvements, cost savings, or operational efficiencies during the entire auditing process. It is our practice to alert management of significant internal accounting control weaknesses immediately, either orally or in writing, so that appropriate action can be taken.

We do not believe in "surprises". Therefore, prior to issuing the letter, we will discuss our findings and comments with you. Furthermore, we will communicate with you throughout the audit on any matters requiring your immediate attention.

Our Professional Fees

Our fees are based on the time spent on the engagement and the billing rates of the individuals assigned. Our goal is to help you contain your costs. With Phillips Harvey Group, P.A. you get industry prominence at a reasonable rate.

Based on our experience in other similar engagements, our proposed audit fees for UNIVERSITY PARK RECREATION DISTRICT are for as follows:

Fees for the year ending	2022	2023	2024	
Audit, in accordance with generally accepted auditing standards in the United States of America and Government Auditing Standards, of the financial statements of UNIVERSITY PARK RECREATION DISTRICT as of September 30, 2022-2024, and for the years then ended, presented in accordance with
U.S. generally accepted accounting principles.	$ 26,000	$ 26,000	$ 27,000	
Total Fees	$ 26,000	$ 26,000	$ 27,000	

Total Hours	150 hrs	150 hrs	150 hrs
(effective hours $173 hours)

The number of hours by major audit area will be determined based upon discussion of expectations of the district as well as our rick assessment given the nature of operations. The first-year hours will be geared to cash, PL expectations, proper cut-offs regarding receivables (as applicable) and payables/accruals and reconciliation of Series 2019 Bond transactions and other debt items.

The fee estimate is based on our understanding of the District’s current and future activities as denoted in the request for proposal package, anticipated cooperation from your personnel, the assumption that unexpected circumstances will not be encountered during the engagement, and that requested schedules will be prepared by your personnel prior to the engagement. Also, our proposed fees will need to be reconsidered if the District enters into any major capital projects during current/future years and/or any significant changes to accounting or auditing rules. Any consulting projects will be billed separately at our standard hourly rates.

Although fees are important, they should not, in our opinion, be the determining factor in the selection of an accounting firm for UNIVERSITY PARK RECREATION DISTRICT The choice of independent accountants and business advisors should always be made primarily on the basis of qualifications, capabilities, and commitments.

Appendix 1 – Quality Control Report

Appendix 2 – Proposer’s Resumes

NATHAN A. PHILLIPS, CPA MANAGING PRINCIPAL ENGAGEMENT PARTNER

Nathan joined the Firm in 1992 and, since 2002, has managed the Firm's operations. He oversees the performance and quality of the Firm's financial statement audit and review services. He also reviews corporate tax accruals and tax returns relating to the clients he serves. Nathan's attention to quality, timeliness, and efficient performance are traits that, as a leader in the Firm, he both exhibits and teaches to others.

Nathan's experience is strong and diverse—he has mastered a varied list of services across multiple industries. His past experience includes work with Price Waterhouse and other public CPA firms performing accounting, consulting, and auditing services for public and private sector clients. The industries in which Nathan focuses the bulk of his practice are:
Hotels, resorts, and clubs
Governments (Florida cities and towns) and utilities
Construction, real estate development, and real estate ventures
Churches and other not-for-profit organizations
Banks
Manufacturers
In addition, he has been involved with litigation support encompassing divorce, professional liability, and business interruption claims. Nathan is a frequent speaker providing seminars to the Firm's clients and to the community and industry on a variety of topics pertaining to accounting, auditing, and taxation.

Education
A native of Miami Springs, Florida, Nathan received his Bachelor of Arts in Accounting and Business Management at Palm Beach Atlantic University. He received his CPA certification in Florida in 1987.
Community Involvement
Nathan has served on the Board of Directors of the Florida Gulf Coast Chapter of the Hospitality Financial & Technology Professionals. He is a previous member of the YMCA of Collier County Board of Directors and the Finance Committee and was named YMCA Volunteer of the Year in 2008. In 2008 Nathan Phillips was chosen to Chair the Blue Ribbon Committee established by Representative Goodlette to evaluate the Collier County School Board Operations. He has served several other civic and membership organizations in Collier County including the Greater Naples Chamber of Commerce and Habitat for Humanity. He participates on various church committees and is an elder at First Baptist Church of Naples.
Professional Associations
Nathan's professional memberships include AICPA (American Institute of CPAs), FICPA (Florida Institute of CPAs), (HFTP) Hospitality Financial and Technology Professionals, Club Tax Network, Construction Financial Management Association (CFMA), and FICPA Government Conference Committee and C12 Group CEO and Business Leaders Group.

Appendix 2 – Proposer’s Resumes (Continued)

STEPHANIE J. FELDMAN, CPA PARTNER
TAX/BUSINESS CONSULTANT

Stephanie joined the Firm as a CPA in 2004 and became a principal of the Firm in 2020. Her responsibilities include the preparation of financial statements and individual, corporate, and partnership tax returns. Stephanie provides to small businesses and personal service corporations advice and the benefit of her extensive experience handling day-to-day and long-term accounting matters. Construction, retail, and manufacturing companies are some of the industries with which Stephanie is most involved.

Education
Stephanie is a graduate of Florida Gulf Coast University. She earned a Bachelor of Science in Accounting and a Master’s degree in Accounting and Taxation, and passed Florida's uniform CPA examination in 2007.

Community Involvement
Stephanie volunteers on several nonprofit boards and school committees, as well as with the Girl Scouts and her church.

Professional Associations
Stephanie is involved in a multitude of professional affiliations including the American Institute of Certified Public Accountants (AICPA), the Florida Institute of Certified Public Accountants (FICPA), the Leadership Collier Foundation Graduate 2014, and was a Leadership GAIN Graduate 2009.

Appendix 2 – Proposer’s Resumes (Continued)

SHANNON HUBER, CPA CLIENT SERVICE MANAGER

Shannon joined the Firm in 2008, with eight years of experience as an Audit Manager for Price Waterhouse and twenty-two years of experience serving in various senior accounting management roles. Most recently, she served as Director of Finance for the Naples Daily News from 2002 through 2008. Her diverse business background provides a strong resource for assisting clients with day-to-day accounting issues as well as more complex, technical concerns.

Education
Although Shannon grew up in Cincinnati, Ohio, she is a native Floridian. She is a graduate from the University of Cincinnati with a Bachelor of Business Administration in Accounting. She graduated Summa Cum Laude and passed the Certified Public Accountant exam for the state of Ohio in 1991. Shannon currently holds her CPA license in the State of Florida.

Community Involvement
Shannon is currently the Treasurer of (HFTP) Hospitality Financial and Technology Professionals, and is a past member of the Finance Committee for the YMCA of the Palms and The Rotary Club of Naples.

Professional Associations
Shannon's professional memberships include both the AICPA and FICPA. For the year beginning July 1, 2013, Shannon served on the FICPA Section Steering Committees/Resource Council for the State and Local Government Conference Committee. She is an active member of HFTP (Hospitality Financial and Technology Professionals).

Appendix 2 – Proposer’s Resumes (Continued)

DAVID PHILLIPS, CPA, MBA SENIOR AUDIT MANAGER

David joined the Firm in 2017, with over five years of experience in the audit and accounting industry. He spent two years with The J.M. Smucker Company in Orrville, Ohio working in the financial reporting/accounting and consolidation department, and two years in the assurance department of Marcum, LLP.

Education
David is originally from Naples, Florida. He received his Master of Business Administration with a specialization in accounting and finance from Ashland University. He received his undergraduate degree with a Bachelor of Science in Accounting from Palm Beach Atlantic University. David received his CPA license in the State of Florida in 2018.

Community Involvement
David is a member of the FICPA, AICPA, and Florida Gulf Coast Chapter of the Hospitality Financial & Technology Professionals (HFTP)

Professional Associations
David’s professional memberships include both the AICPA and FICPA. During 2018, he served as a member of the FICPA CIRA Committee. He is an active member of HFTP (Hospitality Financial and Technology Professionals).

Exhibit A – Rotated Audit Emphasis Examples

In conjunction with standard auditing procedures, our firm will rotate in additional area of emphasis testing that will change from year to year. The areas of emphasis testing may include, but are not limited to, the following items:

Process for approval of new vendors
Sales and use tax compliance
Inventory purchasing and receiving processes and procedures to capture information in the accounting system
Detailed chit testing and walkthrough of procedures to capture sales and mitigate risks
Membership acceptance checklist completion and approval process
New hire checklist and documentation
Detail payroll testing, 401(k) calculations, salary approval, etc.
Golf and fitness: process for capturing lesson revenue and recalculation of pro or instructor wages / income
Process to capture member vs. non-member sales in F&B and the Golf Shop
Analysis of rounds played, covers, and other trends reports
Depreciation and capital assets assessment
Inventory pricing and cost of sales relationship
Golf maintenance, expenses, and trend benchmarking
Capitalization processes and reporting
Review of large vendor relationships