EAST CHARLOTTE DRAINAGE DISTRICT BOARD OF SUPERVISORS’
QUARTERLY MEETING AGENDA FOR APRIL 17, 2019, at 9:00 a.m.
MEETINGS ARE HELD AT THE CHARLOTTE HARBOR EVENT AND CONFERENCE CENTER
75 TAYLOR STREET, PUNTA GORDA, FLORIDA THESE MEETINGS ARE OPEN TO THE PUBLIC
District’s website: districtsarespecial.org/ecdd

BOARD OF SUPERVISORS	FIELD SUPERINTENDENT

Mr. Jerry Newlin, President	Mr. James Shattles Mr. Zachary Varner, Supervisor
Mr. Lenny Lempenau, Supervisor	MANAGER

Ms. Dana Clement

PRESIDENT, CALL MEETING TO ORDER

PLEDGE OF ALLEGIANCE

OLD BUSINESS

Amend the cancellation of the January 16, 2019 meeting due to lack of quorum.
Approve the minutes of the October 17, 2018 meeting.
Other.

SECRETARY/TREASURER’S REPORT

Financial reports for the period of October 18, 2018 through April 17, 2019.
Approve audit for year ending September 30, 2018.
Schedule a special meeting in June 2019 to prepare the draft budget for 2019-2020.
Annual Meeting to be held on July 1, 2019, 9:00 a.m.. Mr. Newlin’s term expires.
New website is compliant with the American Disabilities Act (ADA).
Other.

FIELD REPORT

Field reports for October through December 2018, and January through March 2019.
Section 16, sub-laterals filled between blocks 56 & 57, and the south half between blocks 55 and
56. No permit was secured.
Other.

NEW BUSINESS

Mr. Calvin Sill, RE: Permit application.
Other.

CALL FOR PUBLIC COMMENTS

ADJOURNMENT

1-
c:\users\owner\documents\ecquarterlymeetingagenda.docx

EAST CHARLOTTE DRAINAGE DISTRICT BOARD OF SUPERVISORS
QUARTERLY MEETING MINUTES FOR THE MEETINGS HELD ON OCTOBER 17, 2018, 9:00 A.M.
Website: districtsarespecial.org/ecdd

BOARD OF SUPERVISORS
Mr. Jerry Newlin, President Mr. Zachary Varner, Supervisor
Mr. Lenny Lempenau, Supervisor FIELD SUPERINTENDENT
Mr. James Shattles

DISTRICT MANAGER/SEC./TREAS.
Ms. Dana Clement

OTHERS PRESENT
Mr. Andrew Mardis

PRESIDENT CALLS THE QUARTERLY MEETING TO ORDER Mr. Newlin called the quarterly meeting to order at 9:00 a.m.
PLEDGE OF ALLEGIANCE
OLD BUSINESS
APPROVE THE MINUTES OF THE ANNUAL/QUARTERLY MEETINGS HELD ON JULY 2, 2018
Ms. Clement submitted the draft minutes for the meeting held on July 2, 2018, for the supervisor’s approval.
Mr. Lempenau made a motion to approve. Mr. Varner seconded. Motion passed.
SECRETARY/ TREASURER’S REPORT
FINANCIAL REPORT FOR JULY 3, 2018 THROUGH SEPTEMBER 31, 2018 AND OCTOBER 1,2018 THROUGH OCTOBER 17, 2018
Ms. Clement submitted the financial reports for the supervisors’ review/comments.
Mr. Lempenau made a motion to approve the financial reports. Mr. Varner seconded. Motion passed.
RATIFY THE EXPENDITURE OF $3,741.00 FOR WEBSITE REMEDIATION FOR THE AMERICAN DISABILITIES (ADA) AND RECURRING EXPENSES
Ms. Clement explained the website remediation and the process of making the district’s website compliant. Ms. Clement asked for a motion to ratify the costs involved to remediate the website, its contents, and future documents.
Mr. Lempenau made a motion to ratify the actions taken for ADA compliance. Mr. Varner seconded. Motion passed.
NEXT MEETING TO BE HELD JANUARY 16, 2019
Ms. Clement said the next meeting is Wednesday, January 16, 2019.

1

East Charlotte Drainage District Quarterly Meeting
October 17, 2018
FIELD REPORT
FIELD REPORT FOR JULY, AUGUST, AND SEPTEMBER 2018
Mr. Lempenau made a motion to approve the field report. Mr. Varner seconded. Motion passed.
UPDATE, CANAL CLEANING, NORTH OUTFALL
Mr. Newlin asked if the North Outfall Canal maintenance had been performed. Mr. Shattles stated that the canal cleaning and the leveling of the spoil was completed.
MR. WILLIAMS, HAULING SHELL
Mr. Shattles said that Mr. Williams was hauling shell down Graham Road in large dump trucks. Mr. Newlin said the district will monitor the hauling for now.
MR. BEN MARKS: FOLLOW UP
Ms. Clement stated that Mr. Marks, RE: Bickett properties, had been in touch with her regarding Mr. D’Antuono suing Bickett properties regarding Mr. D’Antuono’s installation of a culvert on Bickett’s property which has caused flooding. Ms. Clement said that Mr. Marks told her that he is removing the culvert.
CALL FOR NEW OR OTHER  BUSINESS
MR. ANDREW MARDIS, IRRIGATION ISSUES, SECTION 16, BLOCKS 58 & 59
Mr. Newlin said that Mr. Mardis had submitted a permit application to apply for a permit for irrigation in Section 16, blocks 58 and 59.
Mr. Mardis said that in Section 16, there is a new owner and they cannot get water to their blocks 58 and 59.  Mr. Mardis proposed that at the last row of trees at the south end of  the grove, he be able to install a culvert to catch and release water, which would irrigate the 20 acres. Mr. Newlin said that this had been tried in the district before and it will not work. Discussion.  Mr. Newlin proposed to Mr. Mardis that he should talk to Mr. Kemeny  to see if Alico can do something to help the landowner with irrigation. The supervisors denied the permit application.
Mr. Newlin said that Mr. Mardis had submitted a permit application to fill in the sub-lateral canal in Section 16, between blocks 58 and 59.
The supervisors asked Mr. Shattles if the request would pose any threat to surrounding properties. Mr. Shattles stated no.
Mr. Lempenau made a motion to allow the sub-lateral canal in Section 16 between blocks 58 and 59, to be filled. Mr. Varner seconded. Motion passed.
CALL FOR PUBLIC COMMENTS
Mr. Newlin asked if there were any public comments. There were none.
ADJOURNMENT
Mr. Newlin made a motion to adjourn the meeting. Mr. Lempenau seconded. Motion passed. The meeting adjourned at 9:37 a.m.

Respectfully Submitted, Dana Clement, Secretary/Treasurer, ECDD

2

EAST CHARLOTTE DRAINAGE DISTRICT FINANCIAL REPORT
APRIL 17, 2019

	BEGINNING
BALANCES	OCTOBER
RECEIVED	NOVEMBER
RECEIVED	DECEMBER
RECEIVED	JANUARY
RECEIVED	FEBRUARY
RECEIVED	MARCH
RECEIVED	APRIL
RECEIVED	MAY
RECEIVED	JUNE
RECEIVED	JULY
RECEIVED	AUGUST
RECEIVED	SEPTEMBER
RECEIVED	FUNDS RECEIVED	TOTAL FUNDS
REMAINING	
BUDGET: 2018-2019																
CHECKING ACCOUNT-SEACOAST NAT'L BANK		80,798.81	70,989.08	64,817.13	67,221.65	103,155.55	113,877.24	162,972.77	151,603.07	146,718.07	146,718.07	146,718.07	146,718.07			
INCOME:																
TAX REVENUES	169,453.76	0.00	4,574.70	16,277.23	55,310.34	19,880.38	59,476.46	12,645.17						168,164.28		
EXCESS FEES	0.00	2,008.83	0.00	0.00	0.00	0.00	0.00	0.00						2,008.83		
BANK INTEREST - SEACOAST NATIONAL BANK	0.00	6.39	5.46	5.79	8.12	8.49	12.27	0.00						46.52		
MISCELLANEOUS INCOME	2,452.96	0.00	0.00	0.00	0.00	1,412.96	0.00	0.00						1,412.96		
LOAN PROCEEDS	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00						0.00		
EST. CARRY-OVER	79,000.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00						0.00		
TOTAL BALANCES	250,906.72	82,814.03	75,569.24	81,100.15	122,540.11	124,457.38	173,365.97	175,617.94	151,603.07	146,718.07	146,718.07	146,718.07	146,718.07	171,632.59		

EXPENDITURES	
AMOUNT	ACTUAL OCTOBER
EXPENSES	ACTUAL NOVEMBER
EXPENSES	ACTUAL DECEMBER
EXPENSES	ACTUAL JANUARY
EXPENSES	ACTUAL FEBRUARY
EXPENSES	ACTUAL MARCH
EXPENSES	ACTUAL APRIL
EXPENSES	ACTUAL MAY EXPENSES	ACTUAL JUNE
EXPENSES	ACTUAL JULY EXPENSES	ACTUAL AUGUST
EXPENSES	ACTUAL SEPTEMBER
EXPENSES	FUNDS EXPENDED	TOTAL FUNDS REMAINING	
CONTRACTURAL SERVICES	32,400.00	0.00	0.00	0.00	8,100.00	0.00	0.00	8,100.00						16,200.00	16,200.00	
WEED CONTROL	26,200.00	0.00	2,738.82	4,807.00	0.00	0.00	0	0.00	4,885.00					12,430.82	13,769.18	
CANAL MAINTENANCE	14,000.00	0.00	0.00	0.00	0.00	0.00	0.00	169.24						169.24	13,830.76	
ROAD'S MAINTENANCE	22,500.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00						0.00	22,500.00	
CONTROL STRUCTURES	9,500.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00						0.00	9,500.00	
WATER ANALYSES	240.00	0.00	0.00	0.00	48.00	0.00	0.00	0.00						48.00	192.00	
LEGAL SERVICES	7,500.00	0.00	0.00	245.40	0.00	0.00	0.00	0.00						245.40	7,254.60	
ENGINEERING SERVICES	7,500.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00						0.00	7,500.00	
AUDIT Y/E, SEPTEMBER 2018	8,500.00	0.00	0.00	0.00	0.00	0.00	300.00	7,341.00						7,641.00	859.00	
TAX COLLECTOR FEE 2%	3,197.24	0.00	87.83	312.52	1,062.41	389.67	1,165.82	252.90						3,271.15	-73.91	
TAX REVENUES DISCOUNTS	6,394.48	0.00	183.01	651.13	2,189.89	397.52	1,184.93	0.00						4,606.48	1,788.00	
TAX ROLL PREPARATION FEE	250.00	137.50	0.00	0.00	0.00	0.00	0.00	0.00						137.50	112.50	
OFFICE EXPENSE	2,050.00	120.00	0.00	120.00	241.81	180.00	0.00	309.28						971.09	1,078.91	
MEETINGS AND MEMBERSHIP DUES	1,200.00	675.00	0.00	0.00	0.00	0.00	0.00	0.00						675.00	525.00	
MISCELLANEOUS EXPENSES	500.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00						0.00	500.00	
INSURANCE	3,700.00	3,150.00	0.00	0.00	0.00	0.00	0.00	100.00						3,250.00	450.00	
DISCHARGE PUMP, SECTION 16	500.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00						0.00	500.00	
INTEREST ON LINE OF CREDIT (LOC)	275.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00						0.00	275.00	
ROAD'S PAVING LOAN - PRINCIPAL, (payoff 4-2021	85,422.00	6,994.73	6,993.57	7,040.72	7,041.25	7,065.17	7,152.39	7,113.47						49,401.30	36,020.70	
ROAD'S PAVING LOAN - INTEREST	7,578.00	747.72	748.88	701.73	701.20	677.28	590.06	628.98						4,795.85	2,782.15	
RESERVE	11,500.00	0.00	0.00	0.00	0.00	1,870.50	0.00	0.00						1,870.50	9,629.50	
TOTAL BUDGET	250,906.72	11,824.95	10,752.11	13,878.50	19,384.56	10,580.14	10,393.20	24,014.87	4,885.00	0.00	0.00	0.00	0.00	105,713.33	145,193.39	
CURRENT CASH STATUS		70,989.08	64,817.13	67,221.65	103,155.55	113,877.24	162,972.77	151,603.07	146,718.07	146,718.07	146,718.07	146,718.07	146,718.07			

EAST CHARLOTTE DRAINAGE DISTRICT MONTHLY FIELD REPORT FOR THE MONTHS OF OCTOBER 2018 THROUGH MARCH 2019

MAJOR PURCHASES/EXPENDITURES
First State Bank of Arcadia, $7,742.45, (road’s loan), for each month.
CANAL’S MAINTENANCE None.
ROAD MAINTENANCE None.
CULVERTS None.
WEED CONTROL
Coastal Air Services applied Round-Up Custom and Clipper to 76.03 acres on October 29, 2018.
Met with Dean Crivellaro of Ecological Control Management on March 11, 2019, for a consultation.
PROJECTS COMPLETED
Read meters for SWFWMD, each month.
Pulled water samples for SWFWMD, October 2018 and January 2019. c)
PROJECTS PENDING None.
REMARKS
The ditch that runs on the west side of Section 17 from the Neal Road Ditch to the North Outfall Canal is in fair condition.
The Neal Road Ditch in Sections 15, 16, and 17 are in fair condition.
Need to discuss the lateral canal in Section 16, block 56.

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Page 1 of 1

EAST CHARLOTTE DRAINAGE DISTRICT

PUNTA GORDA, FLORIDA

General Purpose Financial Statements

For the Year Ended September 30, 2018

 	-	
Baggett, Reutimann & Associates, CPAs, PA
Certified Public Accountants

EAST CHARLOTTE DRAINAGE DISTRICT
General Purpose Financial Statements September 30, 2018

TABLE OF CONTENTS

Introductory Section

TABLE OF CONTENTS	i- ii

FINANCIAL SECTION

INDEPENDENT AUDITOR'S REPORT	A1-A2

MANAGEMENT'S DISCUSSION AND ANALYSIS	M1-M5 BASIC FINANCIAL STATEMENTS
Government-wide Financial Statements
Statement of Net Position	1
Statement of Activities	2
Fund Financial Statements
Governmental Fund Financial Statements
Balance Sheet	3
Reconciliation of the Governmental Fund
Balance Sheet to the Statement of Net Position	4
Statement of Revenues, Expenditures, and
Changes in Fund Balances Governmental Fund	5
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balance of the Governmental Fund to the Statement
of Activities	6
Notes to Basic Financial Statements	7-16

EAST CHARLOTTE DRAINAGE DISTRICT

TABLE OF CONTENTS (CONTINUED)

REQUIRED SUPPLEMENTARY INFORMATION

Budgetary Comparison Schedule

General Fund	17-18

OTHER REPORTS AND MANAGEMENT LETTER

Independent Auditor's Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Preformed in Accordance with Government Auditing Standards

19-20

Management Letter

Independent Auditor's Report on Compliance with Section 218.415, Florida Statutes

21-23

24

Independent Auditor's Report
February 10, 2019

Honorable Board of Supervisors East Charlotte Drainage District Punta Gorda, Florida

Report on the Financial Statements

We have audited the accompanying financial statements of the governmental activities of the East Charlotte Drainage District (the "District") as of and for the fiscal year ended September 30, 2018, and 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.

A1

Independent Auditor's Report February 10, 2019
Page 2

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

Opinion

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the governmental activities of the East Charlotte Drainage District as of September 30, 2018, and the respective changes in financial position 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 on pages Ml through M5 and 17-18 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 assurance.

Other Reporting Required by Government Auditing Standards

i	ll..	, -\- �­

In accordance with Government Auditing Standards, we have also issued our report dated February 10, 2019, on our consideration of the East Charlotte Drainage District's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering East Charlotte Drainage District's internal control over financial reporting and compliance.

Bag .1'-eutfmannTAssociates L'PAs, PA

A2

Management's Discussion and Analysis

SEPTEMBER 30, 2018
The management of East Charlotte Drainage District (the "District") would like to offer the readers of the District's financial statements this discussion and analysis of the District's financial activities during the fiscal year ended September 30, 2018. We encourage readers to consider the information presented in this discussion and analysis in conjunction with the District's financial statements, which follow this section.
FINANCIAL AND DISTRICT HIGHLIGHTS
Financial Highlights

The assets of the District exceeded its liabilities at the end of the fiscal year ended September 30, 2018 by $812,983.

The District's total net position increased by $20,021.
The District's total revenues were $199,180 for the fiscal year ended September 30, 2018.

Total expenses for all of the District's activities were $179,159 for the fiscal year.
District Highlights

The District applied herbicides to 138.1 acres.
Canal Maintenance: Cleaned 5,280 feet
Spoil Leveled: 5,280 feet
Road Maintenance: 6.25 miles

USING THIS ANNUAL REPORT
This discussion and analysis is intended to serve as an introduction to East Charlotte Drainage District’s basic financial statements. The District's annual report consists of three parts: management's discussion and analysis (this section), the basic financial statements, and required supplementary information. The basic financial statements themselves consist of three components: government-wide financial statements, fund financial statements, and notes to the basic financial statements. These statements present different views of the District:
The first two statements are government-wide financial statements that provide both long- term and short-term information about the District's overall financial status.
The fund financial statements focus on individual parts of the District's government, reporting the District's operations on a different basis of accounting than the government- wide statements.
The financial statements also include notes that explain some of the information in the financial statements and provide more detailed data. The statements are followed by a section of required supplementary information that further explains and supports the information in the financial statements.

Management's Discussion and Analysis

Basic Financial Statements Summary

Government-wide Financial Statements	Fund Financial
Statements	Notes to the Financial
Statements	

Required Supplementary Information

Government-wide Financial Statements

The government-wide statements report information about the District as a whole using accounting methods similar to those used by private-sector companies. The statement of net position includes all of the District's assets and liabilities. All of the current year's revenues and expenses are accounted for in the statement of activities regardless of when cash is received or paid.

One of the most important questions asked about the District's finances is "Is the District as a whole better off or worse off as a result of the year's activities?" The statement of net position and the statement of activities report information about the District as a whole and about its activities in a way that helps answer this question.

The statement of net position presents information on all of the District's assets and liabilities, with the difference between the two 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. Other non-financial factors should be considered, however, such as the condition of the District's capital assets (equipment, lift pumps, etc.) to assess the overall health of the District.

The statement of activities presents information showing how the government's net position changed during the 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 flow in future fiscal periods.

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 state and local governments, uses fund accounting to ensure and demonstrate legal compliance with finance-related legal requirements. The District has one fund, a governmental fund.

The District's basic services are reported in a governmental fund, which focuses on how money flows into and out of that fund and the balances left at year-end that are available for spending. This fund is reported using an accounting method called modified accrual accounting, which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a short-term view of the District's general government operations and the basic services it provides. Governmental fund information helps the reader determine whether there are more or fewer financial resources that can be spent in the near future to finance the District's programs. The differences between government-wide activities (reported in the statement of net position and the statement of activities) and the governmental fund are reconciled on separate schedules on pages 4 and 6.

FINANCIAL ANALYSIS OF THE DISTRICT AS A WHOLE

Assets exceeded liabilities by $812,983 for the fiscal year ended September 30, 2018 and is reported as net position.

The District uses capital assets to provide services to its landowners; accordingly, these assets are not available for future spending.
East Charlotte Drainage District's Net Position September 30,

 	2018	 	2017	

Percentage
 	Change	

Current and Other Assets		$		80,799	$	116,209	-30.47% Capital Assets,  Net of Accumulated Depreciation	 		959,615		986,213 		-2.70%	
Total Assets	1,040,414	1,102,422	-5.62%

Current Liabilities			85,361		82,019		4.07% Noncurrent Liabilities	 	142,070 	227,441 	-37.54%	
Total Liabilities	227,431	309,460	-26.51%

Net Position:		
Invested in Capital Assets, Net of Related Debt	732,184	676,753	8.19%	
Unrestricted		 	80,799	116,209 	 	-30.47%		
	Total Net Position	  $	812,983     $	792,962 	2.52%	

East Charlotte Drainage District's Changes in Net Position September 30,

Revenues
Program Revenues

Percentage
        2018	2017              Change 

Charges for Services	$   196,578   $   232,620    -15.49%  General Revenues
Miscellaneous	2,452	2,445	-
Investment	 150	140 7.14% 
Total Revenues 199,180 235,205 -15.32%
Expenses
General Government
Physical Environment	168,278        132,176        27.31% Interest on Long-Term Debt                10,881              14,124     -22.96% 
179,159            146,300        22.46%

Increase (Decrease) in Net Position           20,021           88,905       -77.48% Net Position - Beginning of Year              792,962            704,057     12.63% 
Net Position - End of Year             $      812,983      $      792,962    2.52%

FUND ANALYSIS

The maintenance tax decreased from the 2016/2017 fiscal year to the 2017/2018 fiscal year, while the Capital Unit 1 tax and Shell Roads maintenance tax stayed the same and the Capital Unit 2 maintenance tax stayed the same. See budgetary highlights for more detailed data.

BUDGETARY HIGHLIGHTS

The District adopted the fiscal year 2017/2018 budget on July 6, 2017, with the following assessments per acre: Maintenance $27.92; Capital Unit 1 $20.58; Capital Unit 2 $19.98; Shell Roads Maintenance $2.65. Total expenditures budgeted for the fiscal year ended September 30, 2018 were $271,722. The budgeted non-ad valorem assessment revenues were $194,196, remaining revenues to come from miscellaneous receivables and estimated carry-over.

CAPITAL ASSETS AND DEBT ADMINISTRATION

Capital Assets

The following summarizes the District's capital assets and accumulated depreciation, for the fiscal year ended September 30, 2018

Governmental
 	Activities	
Land	$	21,084	
Land Improvements	51,500	
Machinery & Equipment	19,954	
Culverts	282,524	
Roads	 	1,213,220 	
	$ 1,588,282	
Less Accumulated Depreciation	 	(628,667)	
Totals	  $	959,615 	
Debt

The District, on September 14, 2006, entered into a loan agreement with a financial institution in the amount of $1,250,000. The purpose of this borrowing was to finance the road paving project. This loan was refinanced on July 14, 2013, with a principal balance of $618,153. Principal and interest are payable monthly in the amount of $7,742, commencing on August 14, 2013, with the final payment of $7,742 due on April 14, 2021. The interest rate is fixed at 4% per annum.

CONTACTING THE DISTRICT'S FINANCIAL MANAGEMENT

This financial report is designed to provide our readers with a general overview of the District's finances and to demonstrate the District's accountability for the money it receives. If you have any questions about this report or need additional financial information, contact the District's manager, Dana Clement, 12008 N.E. Highway 70, Arcadia, Florida 34266; dclement@jwcd.org; 863-494-6118.

Basic Financial Statements

The basic financial statements include the government-wide financial statements, fund financial statements, and notes to the basic financial statements. The government-wide financial statements present financial information about the reporting government as a whole. The fund financial statements present financial information about major funds individually. The notes to the basic financial statements present information essential for the fair presentation of the financial statements that are not displayed on the face of the financial statements.

Statement of Net Position September 30, 2018

Assets
Current Assets	 	2018		
Cash	  $	80,799 	

Total Current Assets	 	80,799 

Non-Current Assets
Capital Assets not being depreciated	21,084
Capital Assets being depreciated, Net	 	938,531 

Total Non-Current Assets

959,615

Total Assets	 	1,040,414 

Liabilities
Current Liabilities
Current Portion of Notes Payable	 	85,361 Total Current Liabilities		85,361

Non-Current Liabilities
Non-Current Portion of Notes Payable	 	142,070 	
Total Non-Current Liabilities	142,070	
Total Liabilities	 	227,431 	

Net Position
Invested in Capital Assets, Net of Related Debt	732,184	
Unrestricted	 	80,799 	
Total Net Position	  $	812,983 	

Statement of Activities September 30, 2018

	
Program Revenues	Net (Expense)
Revenue &	

 	Function/Program Activities		
 	Expenses		Charges for
 	Services		Changes in Net
 	Position		
Governmental Activities:				
Physical Environment	$	(168,278)	$	196,578	$	28,300	
Interest on Long-Term Debt	 	(10,881)	 	- 	 	(10,881)	
Total Governmental Activities	  $	(179,159)	  $	196,578 	  $	17,419 	
	General Revenues:			
	Miscellaneous		2,452	
	Interest Earnings		 	150 	
Total General Revenues	 	2,602 	
Change in Net Position	20,021	
Net Position, Beginning of Year	 	792,962 	
Net Position, End of Year	  $	812,983 	

Balance Sheet Governmental Fund September 30, 2018

ASSETS

Cash	 $	80,799 
Total Assets	 $	80,799 

FUND BALANCE
Fund Balance:
Unassigned	 $	80,799 
Total Fund Balance	 $	80,799 

Reconciliation of the Governmental Fund Balance Sheet to The Statement of Net Position
September 30, 2018
Total Government Fund Balance (Page 3)	$	80,799 Amounts reported for governmental activities in the
Statement of Net Position are different because:

Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the governmental funds.

Cost of Assets	$	1,588,282		
Less accumulated depreciation	 	(628,667)	959,615	

Long-term liabilities are not due and payable in the current period and, therefore, are not reported
in the governmental funds. As of September 30, 2018, long-term liabilities are comprised of the following:

Loan Payable	 	(227,431)

Total Net Position (Page 1)	 $	812,983 

Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Fund
September 30, 2018

Revenues:		
Non-Ad Valorem Assessments	$	194,146	
Charges for Services	2,432	
Miscellaneous	2,452	
Interest Income	 	150 	
Total Revenues	 	199,180 	
Expenditures: Current:		
Physical Environment		
Operating Expense	114,971	
Capital Outlay	26,709	
Debt Service		
Principal	82,029	
Interest	 	10,881 	
Total Expenditures	 	234,590 	
Net Change in Fund Balance	(35,410)	
Fund Balance, Beginning of Year	 	116,209 	
Fund Balance, End of Year	  $	80,799 	

Reconciliation of the Statement of Revenues, Expenditures, and Changes In Fund Balance of the Governmental Fund to the Statement of Activities For the Year Ended September 30, 2018
Net Change in Fund Balances - Total Governmental Fund (Page 5)	$	(35,410) Amounts reported for governmental activities in the
Statement of Activities are different because:

Governmental fund reports capital outlay as expenditures. However, in the Statement of Activities, the cost of capital assets are allocated over their estimated useful life and reported as depreciation expense. Additionally, dispositions of capital assets have different effects on the two statements as well. These differences are as follows:

Capital Outlay	26,709
Depreciation Expense	(53,307)

Principal payments on long-term debt is reported as an expenditure on the Statement of Revenues, Expenditures, and Changes in Fund Balance, however, it has no effect on
Net Position	 	82,029 

Change in Net Position (Page 2)	 $	20,021 

NOTE 1. Summary of Significant Accounting Policies

East Charlotte Drainage District (the "District") was originally incorporated and created under Chapter 65-664 of the laws of the State of Florida on June 25, 1965. The District was created for the purpose of reclaiming the lands within its boundaries and for the further purpose of water control and water supply to improve said lands and make these lands available, acceptable and habitable for settlement and agriculture.

The District is administered by a three member Board of Supervisors (the "Board"), composed of owners of land in the District. The supervisors are each elected to a three- year term. Length of service is staggered so that one supervisor is elected or re-elected at the annual landowners meeting in July.

The accounting policies of the District conform to generally accepted accounting principles (GAAP) as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The more significant of these accounting policies are summarized below.

Defining the Financial Reporting Entity: In accordance with Governmental Accounting Standards Board Statement Number 14, the financial reporting entity includes the primary government, organizations for which the primary government is financially accountable and other organizations which, if excluded, would cause the reporting entity’s financial statements to be misleading or incomplete. Financial accountability is defined as the appointment of a voting majority to an organization’s board and, either displays the ability to impose its will on that organization, or the possibility that the organization will impose or provide a financial burden or benefit to the primary government.

The District has no such organizations to include.

Governmental Accounting Standards Board Statement Number 34, “Basic Financial Statements - and Management’s Discussion and Analysis - for State and Local Governments”: The District implemented the provisions of Statement Number 34 for the fiscal year ending September 30, 2004 which established new financial reporting requirements for state and local governments. The Statement established specific standards for the basic financial statements, management’s discussion and analysis (MD&A), and certain required supplementary information. As part of this Statement, there is a reporting requirement regarding infrastructure (land, buildings, and equipment etc.). All major general assets that were acquired or significantly reconstructed, or that received significant improvements, in fiscal years ending after June 30, 1980 were required to be retroactively reported and all newly acquired or improved infrastructure assets must be prospectively reported effective as of the date of implementation of this statement.

Governmental Accounting Standards Board Statement Number 34, “Basic Financial Statements - and Management’s Discussion and Analysis - for State and Local Governments”: (Continued)

The basic financial statements include both government-wide and fund financial statements. The government-wide statements are presented using a full accrual, economic resource basis, which incorporates long-term assets and receivables and long-term liabilities. Governmental activities include the General Fund. The District has no business- type activities.

The government-wide Statement of Activities reports the gross and net cost for the basic services of the District that is otherwise supported by general government revenue. The expenses for the category are reduced by program revenues to ascertain the net costs for that function. Program revenues are defined as charges for services, operating grants and capital grants that specifically relate to a specific program function. Charges for services include revenues arising from charges to customers or applicants who purchase, use, or directly benefit from the goods, services, or privileges provided. Operating grants and capital grants consist of revenues received from other governments, organizations, or individuals that are specifically attributable to a program and are restricted for either operating expenditures/expenses or capital expenditures/expenses associated with a specific program.

The fund financial statements are very similar to the financial statements presented in the previous model. The emphasis in the new model is on major funds. All funds maintained by the District are considered major funds in accordance with the new reporting model requirements.

Measurement Focus: The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental fund statements are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. The measurement focus is the determination of financial position and sources and uses of resources, rather than net income determination.

Fund Accounting: The District organizes its accounting system on the basis of funds.

Governmental Fund General Fund
The General Fund accounts for the general activities of the East Charlotte Drainage District and finances those activities not otherwise designated to be recorded and financed separately.

Basis of Accounting: Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the financial statements.

The government-wide financial statements are presented on an accrual basis of accounting. The governmental funds in the fund financial statements are presented on a modified accrual basis of accounting.

Under the modified accrual basis, revenues are recognized in the accounting period when they become measurable and available (susceptible to accrual). Revenues are generally considered available when they are received in cash (unless legally restricted to some future period) or when earned and expected to be collected soon enough after year-end to pay liabilities of the current period. The District defines the length of time used for “available” for purposes of revenue recognition as 60 days. Revenues that are susceptible to accrual include interest revenue, state revenue sharing entitlements, and intergovernmental grants. Expenditures are recorded at the time the related fund liabilities are incurred. Debt service expenditures are recorded only when payment is due. Under the accrual basis, revenues are recognized in the period when earned and expenses are recognized in the period when incurred.

Assets, Liabilities, and Net Position or Equity:

Deposits and Investments

The District's cash and cash equivalents are considered to be cash on hand, time and demand deposits, and short-term investments with original maturities of less than three months from the date of acquisition.

The nature of investments is governed by the provisions of Florida Statutes Chapter 218. Under this statute, authorized investments are limited, unless otherwise authorized by law or ordinance, to the local government surplus funds trust fund, money market funds, direct or unconditionally guaranteed obligations of the United States Government, obligations of certain government agencies, interest bearing time deposits or savings accounts and certificates of deposit. At September 30, 2018, the District had no investments.

NOTE 1. Summary of Significant Accounting Policies (Continued)

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

Capital Assets and Depreciation

Capital assets, which includes property, plant and equipment, and infrastructure assets (e.g., roads and culverts), are reported in the governmental activities column in the government-wide financial statements. Capital assets are defined by the District as assets with an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation.

The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend the asset's life are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed.

Capital assets of the District are depreciated using the straight-line method over the following estimated useful lives:
 	Assets		 	Years	 Land Improvements				30
Machinery and Equipment	5-8
Culverts	20
Roads	30

The District had not elected to retroactively apply the capitalization requirements of GASB Statement No. 34 to major general infrastructure assets acquired since 1980. Infrastructure assets include drainage systems and similar assets that are immovable and of value only to the District.

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, the face amount of debt issued is reported as another financing source.

Non-Ad Valorem Assessments

The collection of non-ad valorem assessments is consolidated in the Office of the Charlotte County Tax Collector (the "Tax Collector"). Assessments are levied on November 1st of each year, or as soon thereafter as the tax roll is certified by the Charlotte County Property Appraiser and delivered to the Tax Collector. All unpaid assessments levied become delinquent April 1st of the following year. Discounts are allowed for early payment at a maximum rate of 4%. Non-ad valorem assessment revenues are recognized when they become available. At September 30, 2018, unpaid delinquent assessments are not material and have not been recorded by the District.

Net Position

The government-wide financial statements utilize a net position presentation. Net position is presented in three components - invested in capital assets (net of related debt), restricted, and unrestricted.

Invested in Capital Assets (net of related debt) - This component of net position consists of capital assets, net of accumulated depreciation and reduced by the outstanding balances of any bonds, notes, or other borrowings attributable to the acquisition, construction, or improvement of those assets. The component does not include the portion of debt attributable to the unspent proceeds.

Restricted - This component consists of net position that has constraints placed on it either externally by third parties (creditors, grantors, and contributors) or by law through constitutional provisions of enabling legislation. The District would typically use restricted assets first, as appropriate opportunities arise, but reserves the right to selectively defer the use of these funds.

Unrestricted - This component consists of net position that does not meet the definition of "invested in capital assets, net of related debt" and "restricted". Designations of net position made by the District's management are included in this component because these types of constraints are internal and management can remove or modify them.

Fund Balance

In the fund financial statements, fund balance for governmental funds (general fund and State I fund) is reported in classifications that comprise a hierarchy based primarily on the extent to which the District is bound to honor constraints on the specific purpose for which amounts in the funds can be spent. Under GASB 54 requirements, fund balance is reported in five possible components - nonspendable, restricted, committed, assigned, and unassigned.

Nonspendable - This component includes amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact.

Restricted - This component includes amounts reported as restricted when constraints placed on the use of the resources are either (a) externally imposed by creditors, grantors, contributors, or laws or regulations of other governments or (b) imposed by law through constitutional provisions or enabling legislation.

Committed - This component includes amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the District's Commissioners. Such amounts cannot be used for any other purpose unless the government removes or changes the specific use by taking the same type of action it employed to previously commit those amounts.

Assigned - This component is used to report the government's intent to use the amount for specific purpose, but is neither restricted nor committed.

Unassigned - This component is the residual classification for the general fund. This amount represents fund balance that has not been assigned to other funds and that has not been restricted, committed, or assigned to specific purposes within the general fund.

When both restricted and unrestricted resources are available for use, it is the District's policy to use restricted resources first and the unrestricted resources (committed, assigned, and unassigned) as they are needed. When unrestricted resources (committed, assigned, and unassigned) are available for use, it is the District's policy to use committed resources first, then assigned, and then unassigned as they are needed.

G. Use of Estimates:

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

NOTE 2. Deposits

In addition to insurance provided by the Federal Depository Insurance Corporation, all deposits are held in banking institutions approved by the State Treasurer of the State of Florida to hold public funds.

This is done in compliance with Section 280, Florida Statutes, which provides that in the event of a default by any such bank or savings and loan association, all participating banks and savings and loan associations throughout the State would be obligated to reimburse the District for any loss.

NOTE 3. GASB 45

The Governmental Accounting Standards Board has issued Statement No. 45, "Accounting and Financial Reporting by Employers for Post-Employment Benefits Other Than Pensions (OPEB)." This Statement changes the manner in which a governmental entity funds and records its post-retirement benefit costs other than pensions.

The District has no employees and therefore has no OPEB liability.

The District executed agreements with four major landowners. Pursuant to the agreements, the landowners will operate and maintain certain wells located within the District and provide irrigation water to other landowners.

NOTE 5. Capital Assets

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

Beginning Balance

Ending Balance

 	10/01/2017	 Additions	 Deletions	 09/30/2018 
Capital Assets not being Depreciated:
Land	 $	21,084     $	-     $	-     $	21,084 Total Capital Assets not being Depreciated	 	21,084			 	21,084 
Capital Assets being Depreciated:
Land Improvements	51,500	-	-	51,500	
Machinery and Equipment	19,954	-	-	19,954	
Culverts	255,815	26,709	-	282,524	
Roads	 	1,213,220 	- 	 	- 	1,213,220 	
Total Capital Assets being Depreciated	 	1,540,489 	26,709 	 	- 	1,567,198 	
Less Accumulated Depreciation	 	(575,360) 	(53,307)	 	- 	(628,667)	

Total Capital Assets being depreciated, net	
 	965,129 	(26,598)	
 	- 	938,531 	

Governmental Activities - Capital Assets net	
  $	986,213     $	(26,598)	
  $	-     $	959,615 	

Depreciation expense of $53,307 was charged to Physical Environment for the fiscal year ended September 30, 2018.

NOTE 6. Line of Credit

The District, in July 2015, entered into an agreement for a line of credit with a financial institution for $100,000. The line of credit expires in July 2019. Interest on the line of credit is 5.00% per annum. The District did not utilize the line of credit during the fiscal year.

The following is a summary of changes in long-term liabilities for the fiscal year September 30, 2018:

Beginning
Balance			
Principal		Ending
Balance		
Due Within	
  10/1/2017 	  Additions 		  Payments 		 09/30/2018 		  One Year 	
  $ 309,460 	  $	- 		  $ 82,029 		  $ 227,431 		  $ 85,361 	

Loan Payable			.					

The District on September 14, 2006, entered into a loan agreement with a financial institution in the amount of $1,250,000.  The purpose of this borrowing was to finance the road paving project. This loan was refinanced on July 14, 2014 with a principal balance of $618,153. Principal and interest are payable monthly in the amount of $7,742, commencing on August 14, 2014, with the final payment of $7,742 due on April 14, 2021. The interest rate is fixed at 4% per annum. This note is secured by a lien on and pledge of drainage taxes of the properties benefited by improvements. The outstanding balance as of September 30, 2018 was $227,431.

 	Year Ending September 30,		 Principal	 Interest	

2019	85,361	7,548	
2020	88,827	4,082	
2021	 	53,243 	 	714 	

Total	 $ 227,431	 $ 12,344 

NOTE 8. Risk Management

The District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; and natural disasters for which that District carries commercial insurance. The District is also covered by Florida Statutes under the Doctrine of Sovereign Immunity which effectively limits the amount of liability of the District to individual claims of $100,000/$200,000 for all claims relating to the same accident. There were no changes in insurance coverage from the prior year and there were no settlements that exceeded insurance coverage.

Pursuant to the Letter of Agreement between East Charlotte Drainage District and Joshua Water Control District, East Charlotte Drainage District paid Joshua Water Control District
$24,000 for management, administrative, and maintenance inspection services. An annual fee of $8,400 is for office space and use of office equipment. In addition, $20,569 was paid for maintenance services for manpower/equipment time and costs incurred.

In accordance with the Inter-Local Agreement, East Charlotte Drainage District and Joshua Water Control District, Boards of Supervisors have engaged in programs of maintenance of the works of their districts. This agreement is for the period of August 11, 2015 until August 21, 2020.

Alico, Inc., a landowner within the District, pays the District $1,040 as a user's fee for 80 acres in Section 26.

Other agreements provide that Bermont Drainage District will pay an outside user’s fee of
$1,413.

NOTE 10. Subsequent Events

The District’s management has evaluated events and transactions for potential recognition or disclosure through February 10, 2019, the date the financial statements were available to be issued.

REQUIRED SUPPLEMENTARY INFORMATION

EAST CHARLOTTE DRAINAGE DISTRICT BUDGETARY COMPARISON SCHEDULE
General Fund
For the Year Ended September 30, 2018

Revenues:

 	Original	 	Final	 	Actual	

Variance with Final Budget
   Positive/(Negative) 

Non-ad Valorem Assessments	$	194,014	$	194,014	$	194,146	$	132	
Charges for Services	-	-	2,452	2,452	
Excess Tax Collector Fees	-	-	2,432	2,432	
Interest Income	 	- 	 	- 	 	150 	 	150 	
Total Revenues	 	194,014 	 	194,014 	 	199,180 	 	5,166 	

Expenditures:					
Physical Environment	 	271,722 	 	271,722 	 	234,590 	 	37,132 	
Net Change in Fund Balance	 	(77,708)	 	(77,708)	 	(35,410)	 	42,298 	
Fund Balance, Beginning of Year	 	77,708 	 	77,708 	 	116,209 	 	38,501 	
Fund Balance, End of Year	  $	- 	  $	- 	  $	80,799 	  $	80,799 	

17

EAST CHARLOTTE DRAINAGE DISTRICT
Notes to Budgetary Comparison Schedule Fiscal Year Ended September 30, 2018

Note 1. Budgets and Budget Accounting

State of Florida Statutes require that, for each fiscal year, a special district make appropriations which will not exceed the amount to be received from taxation and other available sources. The District annually adopts an operating budget for the general fund. The procedures for establishing budgetary data are as follows:

In July of each year, at the Annual Landowners' Meeting, the District Manager submits a draft operating budget to the Board for the next fiscal year commencing the following October 1. The proposed budget includes expenditures and the means of financing them. The budget is adopted by the Board.

Budgets are adopted on the modified accrual basis of accounting, consistent with accounting principles generally accepted in the United States. All appropriations lapse at fiscal year end unless encumbered or specifically designated to be carried forward to the subsequent year. Changes or amendments to the total budgeted expenditures of the District must be approved by the Board. Accordingly, the legal level of control is at the fund level.

18

Other Reports and
Management Letter

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

February 10, 2019

Honorable Board of Supervisors East Charlotte Drainage District Punta Gorda, FL

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 of East Charlotte Drainage District (the "District"), as of and for the year ended September 30, 2018, and the related notes to the financial statements, which collectively comprise the District’s basic financial statements, and have issued our report thereon dated February 10, 2019.

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 opinion 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 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.

Report on Internal Control and Compliance February 10, 2019
Page 2

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

Compliance and Other Matters

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

Purpose of this Report

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

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Bagg ){eutimann & Associates, CPAs, PA

MANAGEMENT LETTER

February 10, 2019

Honorable Board of Supervisors East Charlotte Drainage District Punta Gorda, FL

Report on the Financial Statements

We have audited the financial statements of the East Charlotte Drainage District (the "District") as of and for the fiscal year ended September 30, 2018, and have issued our report thereon dated February 10, 2019.

Auditor's Responsibility

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

Other Reports and Schedule

We have issued our Independent Auditor's Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance with Government Auditing Standards. Disclosures in that report, which are dated December 18, 2017, should be considered in conjunction with this management letter.

Prior Audit Findings

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

East Charlotte Drainage District Management Letter
February 10, 2019
Page 2

Official Title and Legal Authority

Section 10.554(1)(i)2., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the basic financial statements. The District discloses this information in the notes to the basic financial statements.

Financial Condition

Section 10.554(1)(i)5.a. and 10.556(7), Rules of the Auditor General, require that we apply appropriate procedures and report the results of our determination as to whether or not the East Charlotte Drainage District has met one or more of the conditions described in Section 218.503(1), Florida Statutes, and identification of the specific condition(s) met. In connection with our audit, we determined that the District did not meet any of the conditions described in Section 218.503(1), Florida Statutes.

Pursuant to Sections 10.554(1)(i)5.c. and 10.556(8), Rules of the Auditor General, we applied financial condition assessment procedures. It is management's responsibility to monitor the East Charlotte Drainage District's 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.

Section 10.554(1)(i)2., Rules of the Auditor General, requires that we address in the management letter any recommendations to improve financial management. In connection with our audit, we have no recommendations to improve financial management.

Special District Component Units

Section 10.554(1)(i)5.d., Rules of the Auditor General, requires that we determine whether or not a special district that is a component unit of a county, municipality, or special district, provided financial information necessary for proper reporting of the component unit, within the audited financial statements of the county, municipality, or special district in accordance with Section 218.39(3)(b), Florida Statutes. In connection with our audit, we determined that all special district component units provided the necessary information for proper reporting in accordance with Section 218.39(3)(b), Florida Statutes.

East Charlotte Drainage District Management Letter
February 10, 2019
Page 3

Other Matters

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

Purpose of this Letter

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

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u;imann & Associates, CPAs, PA

Judson B. Baggett	11 6815  Dairy Rood MBA , CPA, CVA, Portner		Zephyrhi lls, FL 33542
Marci Reutimonn	"')    (813) 788-2155
CPA, Portner	A  (813) 782-8606

INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH SECTION 218.415, FLORIDA STATUTES

February 1 0, 2019

Honorable Board of Supervisors East Charlotte Drainage District Punta Gorda, Florida

We have examined the East Charlotte Drainage District's (the "District") compliance with Section 21 8.415, Florida Statutes regarding the investment of public funds during the period ended September 30, 2018, as required by Section 10.556, Rules of the Auditor General. 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 (AJCPA) and accordingly, included examining , on  a  test basis, evidence about the District' s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe  that  our  examination  provides a reasonable  basis for our opinion.  Our examination  does not provide a legal  determination  of the District's compliance with specified requirements.

In our opini on, the District complied, in all material respects, with the aforementioned requirements for the year ended September 30, 201 8.

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 Representat ives, the Florida Auditor Genera l, the District, its management , and is not intended to be and should not be used by anyone other than  these specified parties. However, this letter is a matter of public record and its distribution  is  not limited.

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Bag , Reutimann & Assoc iates, CPAs PA