Title: Magic Reserve CDD Agendas: 9-21-2026
Company: PFM FA LLC
Category: RFP #

MINUTES OF MEETING

Ms. Houck noted with Grau & Associates experience and rankings she would recommend Grau

Magic Reserve Community Development District

MAGIC RESERVE COMMUNITYDEVELOPMENTDISTRICT

Magic Reserve Community Development District
3501 Quadrangle Boulevard, Suite 270, Orlando, FL 32817
Phone: 407-723-5900, Fax: 407-723-5901
www.magicreservecdd.com

The following is the agenda for the Special Board of Supervisors’ Meetings for the Magic Reserve Community Development District (“District”), scheduled to begin at 10:00 a.m. on September 21, 2026, at 7430 Brooklyn Dr., Kissimmee, FL 34747. If you have questions or comments on the Board Meeting, please contact the District Manager’s office at (407) 723-5900. A quorum consisting of at least three of the five Board Members will be confirmed prior to the start of the Board Meeting.
For those unable to attend in person, you may participate by telephone:
Call in number: 1-844-621-3956	Passcode: 2539 895 0958 #
BOARD OF SUPERVISORS’ MEETING AGENDA
Administrative Matters
Call to Order / Roll Call
Public Comment Period
Consideration of the Minutes of the August 3, 2026:
Board of Supervisor’s Meeting (provided under separate cover)
Auditor Selection Committee Meeting
Ratification of FY27 Insurance Renewal Proposal
General Business Matters
Consideration of the FY 2026 Auditor Engagement Letter with Grau & Associates
Ratification of Payment Authorization Nos. 267-269
Review of District Financial Statements (provided under separate cover
Other Business
Staff Reports
District Counsel
District Engineer
District Manager
Outstanding Maintenance Items
Irrigation Invoice due to leak
Code Violation Update
Audience Comments
Supervisors Requests
Adjournment

Magic Reserve Community Development District

Consideration of the Minutes of the August 3, 2026
Board of Supervisor’s Meeting
(provided under separate cover)

Auditor Selection Committee Meeting

MAGIC RESERVE COMMUNITY DEVELOPMENT DISTRICT AUDITOR SELECTION COMMITTEE MEETING
Monday, August 3, 2026, at 10:00 a.m.
7430 Brooklyn Dr.
Kissimmee, FL 34747

Board Members in attendance: | |

Doris Houck Sue Legentil
Frederico Gontijo

Chairperson Assistant Secretary Assistant Secretary

Also Present: | |
Jane Gaarlandt | PFM |
Gazmin Kerr | PFM | (via phone)
Audrey Ryan | PFM | (via phone)
Mark Watts | Cobb Cole | (via phone)
James Curley | Boyd Civil Engineering | (via phone)

FIRST ORDER OF BUSINESS	Roll Call to Confirm a Quorum

Ms. Gaarlandt called to order the Auditor Selection Committee Meeting for the Magic Reserve Community Development District at 10:03 a.m. Roll call was taken.

Public Comment Period

There were no members of the public present.

SECOND ORDER OF BUSINESS	Review	of	Auditing	Services Proposals
Grau & Associates
Berger,	Toombs,	Elam, Gaines & Frank
McIntosh CPA

Ms. Gaarlandt noted the Auditing Proposals received.

THIRD ORDER OF BUSINESS	Ranking	of	Auditing	Services Proposals

Ms. Gaarlandt noted these Ranking are per District staffs recommendations but the committee can approve or make changes.

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as the top respondent.

The Board reviewed and accepted the rankings.

On motion by Ms. Houck, seconded by Ms. Legentil, with all in favor, the Board of Supervisors for the Magic Reserve Community Development District accepted the Auditor Selection Committees recommendation to rank Grau & Associates as the top respondent.

FOURTH ORDER OF BUSINESS	Adjournment

The meeting was adjourned at 10:07 a.m.

Secretary/Assistant Secretary	Chairman/Vice Chairman

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Magic Reserve Community Development District

Ratification of FY27 Insurance Renewal
Proposal

F

JFLORIDA
INSURANCE
ALLIANCE

Egis Insurance & Risk Advisors
Is pleased to provide a Proposal of Insurance Coverage for:

Magic Reserve Community Development District

Please review the proposed insurance coverage terms and conditions carefully. Written request to bind must be received prior to the effective date of coverage.

The brief description of coverage contained in this document is being provided as an accommodation only and is not intended to cover or describe all Coverage Agreement terms. For more complete and detailed information relating to the scope and limits of coverage, please refer directly to the Coverage Agreement documents. Specimen forms are available upon request.

Page I 1

About FIA

Florida Insurance Alliance ("FIA"), authorized and regulated by the Florida Office of Insurance Regulation, is a non-assessable, governmental insurance Trust. FIA was created in September 2011 at a time when a large number of Special Taxing Districts were having difficulty obtaining insurance.
Primarily, this was due to financial stability concerns and a perception that these small to mid-sized Districts had a disproportionate exposure to claims. Even districts that were claims free for years could not obtain coverage. FIA was created to fill this void with the goal of providing affordable insurance coverage to Special Taxing Districts. Today, FIA proudly serves and protects over 1,000 public entity members.

Competitive Advantage
FIA allows qualifying Public Entities to achieve broad, tailored coverages with a cost-effective insurance program. Additional program benefits include:
Insure-to-value property limits with no coinsurance penalties
First dollar coverage for "alleged" public official ethics violations
Proactive in-house claims management and loss control department
Risk management services including on-site loss control, property schedule verification and contract reviews
Complimentary Property Appraisals
Online Risk Management Education & Training portal
Online HR & Benefits Support portal
HR Hotline
Safety Partners Matching Grant Program

How are FIA Members Protected?
FIA employs a conservative approach to risk management. Liability risk retained by FIA is fully funded prior to the policy term through member premiums. The remainder of the risk is transferred to reinsurers. FIA's primary reinsurers, Lloyds of London and Hudson Insurance Company, both have AM Best A XV (Excellent) ratings and surplus of $2Billion or greater.

In the event of catastrophic property losses due to a Named Storm (i.e., hurricane), the program bears no risk as all losses are passed on to the reinsurers.

What Are Members Responsible For?
As a non-assessable Trust, our members are only responsible for two items:
Annual Premiums
Individual Member Deductibles

FIA Bylaws prohibit any assessments or other fees.

Additional information regarding FIA and our member services can be found at www.fia360.org.

Page I 2

Quotation being provided for:

ivl.;1gic Reserve Community Development District c/o PFM Group Consulting, LLC
3501 Quadrangle Boulevard, Suite 270
Orlando, FL 32817

Term: October 1, 2026 to October 1, 2027

Quote Number: 100126674

PROPERTY COVERAGE

SCHEDULE OF COVERAGES AND LIMITS OF COVERAGE
COVERED PROPERTY
Total Insured Values -Building and Contents - Per Schedule on file totalling | Not Included
Loss of Business Income | Not Included
Additional Expense | Not Included
Inland Marine
Scheduled Inland Marine | Not Included

It is agreed to include automatically under this Insurance the interest of mortgagees and loss payees where applicable without advice.

| Valuation | Coinsurance
Property | Replacement Cost | None
Inland Marine | Actual Cash Value | None

DEDUCTIBLES: | Not Applicable | Per Occurrence, All other Perils, Building & Contents and Extensions of Coverage.

Not Applicable

Total Insured Values per building, including vehicle values, for "Named Storm" at each affected location throughout Florida subject to a minimum of Not
Applicable per occurrence, per Named Insured.

Per Attached Schedule | Inland Marine
| Not Applicable | Golf Course Tees and Greens Deductible on all covered Perils if scheduled.

Special Property Coverages
Coverage | Deductibles | Limit
Earth Movement | Not Applicable | Not Included
Flood | Not Applicable | Not Included
Boiler & Machinery | Not Applicable | Not Included
TRIA | | Not Included
*Except for Zones A & V (see Terms and Conditions) excess of NFIP, whether purchased or not

TOTAL PROPERTY PREMIUM	Not Included

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Extensions of Coverage
If marked with an "X" we will cover the following EXTENSIONS OF COVERAGE under this Agreement, These limits of liability do not increase any other applicable limit of liability.

(X) | Code | Extension of Coverage | Limit of Liability
| A | Accounts Receivable | $500,000 in any one occurrence
| B | Animals | $1,000 any one Animal $5,000 Annual Aggregate in any one agreement period
| C | Buildings Under Construction | As declared on Property Schedule, except new buildings being erected at sites other than a covered location which is limited to $250,000 estimated final contract value any one construction project.
| D | Debris Removal Expense | $250,000 per insured or 25% of loss, whichever is greater
| E | Demolition Cost, Operation of Building Laws and Increased Cost of Construction | $500,000 in any one occurrence
| F | Duty to Defend | $100,000 any one occurrence
| G | Errors and Omissions | $250,000 in any one occurrence
| H | Expediting Expenses | $250,000 in any one occurrence
| I | Fire Department Charges | $50,000 in any one occurrence
| J | Fungus Cleanup Expense | $50,000 in the annual aggregate in any one occurrence
| K | Lawns, Plants, Trees and Shrubs | $50,000 in any one occurrence
| L | Leasehold Interest | Included
| M | Air Conditioning Systems | Included

N

New locations of current Insureds

$1,000,000 in any one occurrence for up to 90 days, except 60 days for Dade, Broward, Palm Beach from the date such new location(s) is first purchased, rented or occupied whichever is earlier. Monroe County on
prior submit basis only

| 0 | Personal property of Employees | $500,000 in any one occurrence
| p | Pollution Cleanup Expense | $50,000 in any one occurrence
| Q | Professional Fees | $50,000 in any one occurrence
| R | Recertification of Equipment | Included
| s | Service Interruption Coverage | $500,000 in any one occurrence
| T | Transit | $1,000,000 in any one occurrence
| u | Vehicles as Scheduled Property | Included
| V | Preservation of Property | $250,000 in any one occurrence
| w | Property at Miscellaneous Unnamed Locations | $250,000 in any one occurrence
| X | Piers, docs and wharves as Scheduled Property | Included on a prior submit basis only

Page I 4

| y | Glass and Sanitary Fittings Extension | $25,000 any one occurrence
| z | Ingress/ Egress | 45 Consecutive Days
| AA | Glass and Sanitary Fittings Extension | $25,000 in any one occurrence
| BB | Awnings, Gutters and Downspouts | Included
| cc | Lock and Key Replacement | $2,500 any one occurrence
| DD | Tracks and fields {except Lawns, Plants, Trees and Srubs covered under code K) | $250,000 any one occurrence and $500,000 in the annual aggregate in any one coverage period. or Up to the declared value if it is specifically listed as "Tracks and Fields" in the schedule of values.
| EE | Awnings, Gutters and Downspouts | Included
| FF | Civil or Military Authority | 45 consecutive days and one mile.

CRIME COVERAGE

Description | Limit | Deductible
Forgery and Alteration | $100,000 | $1,000
Theft, Disappearance or Destruction | $100,000 | $1,000
Computer Fraud including Funds Transfer Fraud | $100,000 | $1,000
Employee Dishonesty, including faithful performance, per loss | $100,000 | $1,000

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AUTOMOBILE COVERAGE
Coverages | Covered Autos | Limit | Premium
Covered Autos Liability | 8,9 | $1,000,000 | Included
Personal Injury Protection | N/A | | Not Included
Auto Medical Pavments | N/A | | Not Included
Uninsured Motorists including Underinsured Motorists | N/A | | Not Included

Physical Damage Comprehensive Coverage

·N/A

Actual Cash Value Or Cost Of Repair, Whichever Is Less, Minus Applicable Deductible (See Attached Schedule)
For Each Covered Auto, But No Deductible Applies To Loss Caused By Fire or Lightning.

See item Four for Hired or Borrowed Autos.

Not Included

Physical Damage Specified Causes of Loss Coverage

N/A

Actual Cash Value Or Cost Of Repair, Whichever Is Less, Minus Applicable Deductible (See Attached Schedule)
For Each Covered Auto For Loss Caused By Mischief Or Vandalism

See item Four for Hired or Borrowed Autos.

Not Included

Physical Damage Collision Coverage

N/A

Actual Cash Value Or Cost Of Repair, Whichever Is Less, Minus Applicable Deductible (See Attached Schedule)
For Each Covered Auto

See item Four for Hired or Borrowed Autos.

Not Included

Physical Damage Towine: And Labor | N/A | $0 For Each Disablement Of A Private Passenger Auto | Not Included

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GENERAL LIABILITY COVERAGE (Occurrence Basis)
Bodily Injury and Property Damage Limit Personal Injury and Advertising Injury
Products & Completed Operations Aggregate Limit Employee Benefits Liability Limit, per person
Abuse and Molestation Limit (Added by Claims Made Endorsement)

Abuse and Molestation Aggregate Limit (Added by Claims Made Endorsement) Abuse and Molestation Retroactive Date
Herbicide & Pesticide Aggregate Limit Medical Payments Limit
Fire Damage Limit

No fault Sewer Backup Limit General Liability Deductible
PUBLIC OFFICIALS AND EMPLOYMENT PRACTICES LIABILITY (Claims Made)

$1,000,000

Included Included
$1,000,000

Not Included Not Included Not Included
$1,000,000

$5,000

Included

$25,000/$250,000

$0

Public Officials and Employment Practices Liability Limit | Per Claim | $1,000,000
| Aggregate | $2,000,000
Public Officials and Employment Practices Liability Deductible | | $0
Retroactive Date: | |

Supplemental Payments: Pre-termination $2,500 per employee - $5,000 annual aggregate. Non-Monetary $100,000 aggregate.
Cyber Liability sublimit included under POL/EPLI Media Content Services Liability
Network Security Liability Privacy Liability
First Party Extortion Threat First Party Crisis Management
First Party Business Interruption
Limit: $100,000 each claim/annual aggregate Fraudulent Instruction: $25,000

Page I 7

_F--�� 

FLORIDA INSURANCE
ALLIANCE

PREMIUM SUMMARY

Magic Reserve Community Development District c/o PFM Group Consulting, LLC
3501 Quadrangle Boulevard, Suite 270
Orlando, FL 32817

Term: October 1, 2026 to October 1, 2027

Quote Number: 100126674

PREMIUM BREAKDOWN

Property (Including Scheduled Inland Marine)	Not Included Crime		$500

Automobile Liability Hired Non-Owned Auto

Not Included

Included

Auto Physical Damage General Liability
Public Officials and Employment Practices Liability Deadly Weapon Protection Coverage
TOTAL PREMIUM DUE

Not Included

$4,554

$3,726

Not Included

$8,780

IMPORTANT NOTE
Defense Cost - Outside of Limit, Does Not Erode the Limit for General Liability, Public Officials Liability, and Employment related Practices Liability.

Deductible does not apply to defense cost. Self-Insured Retention does apply to defense cost.

Additional Notes: (None)

Page I 8

�FLORIDA
INSURANCE

_�	 ALLIANCE

PARTICIPATION AGREEMENT

Application for Membership in the Florida Insurance Alliance

The undersigned local governmental entity, certifying itself to be a public agency of the State of Florida as defined in Section 163.01, Florida Statutes, hereby formally makes application with the Florida Insurance Alliance ("FIA") for continuing liability and/or casualty coverage through membership in FIA, to become effective 12:01 a.m., 10/01/2026, and if accepted by the FIA's duly authorized representative, does hereby agree as follows:

That, by this reference, the terms and provisions of the lnterlocal Agreement creating the Florida Insurance Alliance are hereby adopted, approved and ratified by the undersigned local governmental entity. The undersigned local governmental entity certifies that it has received a copy of the aforementioned lnterlocal Agreement and further agrees to be bound by the provisions and obligations of the lnterlocal Agreement as provided therein;

To pay all premiums on or before the date the same shall become due and, in the event Applicant fails to do so, to pay any reasonable late penalties and charges arising therefrom, and all costs of collection thereof, including reasonable attorneys' fees;

To abide by the rules and regulations adopted by the Board of Directors;

That should the Applicant desire to cancel coverage; it will give not less than ninety (90) days prior written notice of cancellation;

That if the Fund desire to cancel coverage; it will give not less than thirty (30) days prior written notice of cancellation;

That all information contained in the underwriting application provided to FIA as a condition precedent to participation in FIA is true, correct and accurate in all respects.

Magic Reserve Community Development District

(Name of Local Governmental Entity)

^By:	  Doris H Houck	
Print Name

Witness By,�	
X	Sign ture

IS HEREBY APPROVED FOR MEMBERSHIP IN THIS FUND, AND COVERAGE IS EFFECTIVE October 1, 2026

By: 	
Administrator

Page I 9

Magic Reserve Community Development District

Consideration of the FY 2026 Auditor Engagement Letter with Grau & Associates

August 21, 2026

To Board of Supervisors
Magic Reserve Community Development District 3501 Quadrangle Blvd., Ste. 270
Orlando, FL 32817

1001 Yamato Road ▪ Suite 301 Boca Raton, Florida 33431
(561) 994-9299 ▪ (800) 299-4728
Fax (561) 994-5823
www.graucpa.com

We are pleased to confirm our understanding of the services we are to provide Magic Reserve Community Development District, Osceola County, Florida (“the District”) for the fiscal year ended September 30, 2026, with the option of two (2) additional one-year renewals. We will audit the financial statements of the governmental activities and each major fund, including the related notes to the financial statements, which collectively comprise the basic financial statements of Magic Reserve Community Development District as of and for the fiscal year ended September 30, 2026, with the option of two (2) additional one-year renewals. In addition, we will examine the District’s compliance with the requirements of Section 218.415 Florida Statutes.
Accounting principles generally accepted in the United States of America provide for certain required supplementary information (RSI), such as management’s discussion and analysis (MD&A), to supplement the District’s 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. As part of our engagement, we will apply certain limited procedures to the District’s RSI in accordance with auditing standards generally accepted in the United States of America. These limited procedures will consist of inquiries of management regarding 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 will not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
The following RSI is required by generally accepted accounting principles and will be subjected to certain limited procedures, but will not be audited:
Management’s Discussion and Analysis
Budgetary comparison schedule
The following other information accompanying the financial statements will not be subjected to the auditing procedures applied in our audit of the financial statements, and our auditor’s report will not provide an opinion or any assurance on that information:
Compliance with FL Statute 218.39 (3) (c)
Audit Objectives
The objective of our audit is the expression of opinions as to whether your financial statements are fairly presented, in all material respects, in conformity with U.S. generally accepted accounting principles and to report on the fairness of the supplementary information referred to in the second paragraph when considered in relation to the financial statements as a whole. Our audit will be conducted in accordance with auditing standards generally accepted in the United States of America and the standards for financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, and will include tests of the accounting records of the District and other procedures we consider necessary to enable us to express such opinions. We will issue a written report upon completion of our audit of the District’s financial statements. We cannot provide assurance that an unmodified opinion will be expressed. Circumstances may arise in which it is necessary for us to modify our opinion or add emphasis-of-matter or other-matter paragraphs. If our opinion on the financial statements is other than unmodified, we will discuss the reasons with you in advance. If, for any reason, we are unable to complete the audit or are unable to form or have not formed an opinion, we may decline to express an opinion or issue a report or may withdraw from this engagement.
We will also provide a report (that does not include an opinion) on internal control related to the financial statements and compliance with the provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a material effect on the financial statements as required by Government Auditing Standards. The report on internal control and on compliance and other matters will include a paragraph that states (1) that the purpose of the report is solely to describe the scope of testing of internal control and compliance, and the results of that testing, and not to provide an opinion on the effectiveness of the District’s internal control on compliance, and (2) that the report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the District’s internal control and compliance. The paragraph will also state that the report is not suitable for any other purpose. If during our audit we become aware that the District is subject to an audit requirement that is not encompassed in the terms of this engagement, we will communicate to management and those charged with governance that an audit in accordance with U.S. generally accepted auditing standards and the standards for financial audits contained in Government Auditing Standards may not satisfy the relevant legal, regulatory, or contractual requirements.

We will also issue a management letter as required by Chapter 10.550, Rules of the Auditor General of the State of Florida. As part of our audit, we will apply financial condition assessment procedures pursuant to Section 218.39(5), Florida Statutes, and Rule 10.556(8), Rules of the Auditor General, and will report, as applicable, whether the District met any of the conditions described in Section 218.503(1), Florida Statutes.
Examination Objective
The objective of our examination is the expression of an opinion as to whether the District is in compliance with Florida Statute
218.415 in accordance with Rule 10.556(10) of the Auditor General of the State of Florida. Our examination will be conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and will include tests of your records and other procedures we consider necessary to enable us to express such an opinion. We will issue a written report upon completion of our examination of the District’s compliance. The report will include a statement that the report is intended solely for the information and use of management, those charged with governance, and the Florida Auditor General, and is not intended to be and should not be used by anyone other than these specified parties. We cannot provide assurance that an unmodified opinion will be expressed. Circumstances may arise in which it is necessary for us to modify our opinion or add emphasis-of-matter or other-matter paragraphs. If our opinion on the District’s compliance is other than unmodified, we will discuss the reasons with you in advance. If, for any reason, we are unable to complete the examination or are unable to form or have not formed an opinion, we may decline to express an opinion or issue a report or may withdraw from this engagement.
Other Services
We will assist in preparing the financial statements and related notes of the District in conformity with U.S. generally accepted accounting principles based on information provided by you. These nonaudit services do not constitute an audit under Government Auditing Standards and such services will not be conducted in accordance with Government Auditing Standards. The other services are limited to the financial statement services previously defined. We, in our sole professional judgment, reserve the right to refuse to perform any procedure or take any action that could be construed as assuming management responsibilities.
Management Responsibilities
Management is responsible for compliance with Florida Statute 218.415 and will provide us with the information required for the examination. The accuracy and completeness of such information is also management’s responsibility. You agree to assume all management responsibilities relating to the financial statements and related notes and any other nonaudit services we provide. You will be required to acknowledge in the management representation letter our assistance with preparation of the financial statements and related notes and that you have reviewed and approved the financial statements and related notes prior to their issuance and have accepted responsibility for them. In addition, you will be required to make certain representations regarding compliance with Florida Statute 218.415 in the management representation letter. Further, you agree to oversee the nonaudit services by designating an individual, preferably from senior management, who possesses suitable skill, knowledge, or experience; evaluate the adequacy and results of those services; and accept responsibility for them.
Management is responsible for designing, implementing and maintaining effective internal controls, including evaluating and monitoring ongoing activities, to help ensure that appropriate goals and objectives are met; following laws and regulations; and ensuring that management and financial information is reliable and properly reported. Management is also responsible for implementing systems designed to achieve compliance with applicable laws, regulations, contracts, and grant agreements. You are also responsible for the selection and application of accounting principles, for the preparation and fair presentation of the financial statements and all accompanying information in conformity with U.S. generally accepted accounting principles, and for compliance with applicable laws and regulations and the provisions of contracts and grant agreements.
Management is also responsible for making all financial records and related information available to us and for the accuracy and completeness of that information. You are also responsible for providing us with (1) access to all information of which you are aware that is relevant to the preparation and fair presentation of the financial statements, (2) additional information that we may request for the purpose of the audit, and (3) unrestricted access to persons within the government from whom we determine it necessary to obtain audit evidence.
Your responsibilities include adjusting the financial statements to correct material misstatements and for confirming to us in the written representation letter that the effects of any uncorrected misstatements aggregated by us during the current engagement and pertaining to the latest period presented are immaterial, both individually and in the aggregate, to the financial statements taken as a whole.
You are responsible for the design and implementation of programs and controls to prevent and detect fraud, and for informing us about all known or suspected fraud affecting the government involving (1) management, (2) employees who have significant roles in internal control, and (3) others where the fraud could have a material effect on the financial statements. Your responsibilities include informing us of your knowledge of any allegations of fraud or suspected fraud affecting the government received in communications from employees, former employees, grantors, regulators, or others. In addition, you are responsible for identifying and ensuring that the government complies with applicable laws, regulations, contracts, agreements, and grants and for taking timely and appropriate steps to remedy fraud and noncompliance with provisions of laws, regulations, contracts or grant agreements, or abuse that we report.
Management is responsible for establishing and maintaining a process for tracking the status of audit findings and recommendations. Management is also responsible for identifying and providing report copies of previous financial audits, attestation engagements, performance audits or other studies related to the objectives discussed in the Audit Objectives section of this letter. The District will provide a statement describing corrective actions to be taken in response to each of our recommendations included in the audit report, if any, and relaying to us corrective actions taken to address significant findings and recommendations resulting from those audits, attestation engagements, performance audits, or other studies. You are also

responsible for providing management’s views on our current findings, conclusions, and recommendations, as well as your planned corrective actions, for the report, and for the timing and format for providing that information.
With regard to the electronic dissemination of audited financial statements, including financial statements published electronically on your website, you understand that electronic sites are a means to distribute information and, therefore, we are not required to read the information contained in these sites or to consider the consistency of other information in the electronic site with the original document.
Audit Procedures—General
An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; therefore, our audit will involve judgment about the number of transactions to be examined and the areas to be tested. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We will plan and perform the audit to obtain reasonable rather than absolute assurance about whether the financial statements are free of material misstatement, whether from (1) errors, (2) fraudulent financial reporting, (3) misappropriation of assets, or (4) violations of laws or governmental regulations that are attributable to the government or to acts by management or employees acting on behalf of the government. Because the determination of abuse is subjective, Government Auditing Standards do not expect auditors to provide reasonable assurance of detecting abuse.
Because of the inherent limitations of an audit, combined with the inherent limitations of internal control, and because we will not perform a detailed examination of all transactions, there is a risk that material misstatements may exist and not be detected by us, even though the audit is properly planned and performed in accordance with U.S. generally accepted auditing standards and Government Auditing Standards. In addition, an audit is not designed to detect immaterial misstatements or violations of laws or governmental regulations that do not have a direct and material effect on the financial statements. Our responsibility as auditors is limited to the period covered by our audit and does not extend to later periods for which we are not engaged as auditors.
Our procedures will include tests of documentary evidence supporting the transactions recorded in the accounts and may include tests of the physical existence of inventories, and direct confirmation of receivables and certain other assets and liabilities by correspondence with selected individuals, funding sources, creditors, and financial institutions. We will request written representations from your attorneys as part of the engagement, and they may bill you for responding to this inquiry. At the conclusion of our audit, we will require certain written representations from you about your responsibilities for the financial statements; compliance with laws, regulations, contracts, and grant agreements; and other responsibilities required by generally accepted auditing standards.
Audit Procedures—Internal Control
Our audit will include obtaining an understanding of the government and its environment, including internal control, sufficient to assess the risks of material misstatement of the financial statements and to design the nature, timing, and extent of further audit procedures. Tests of controls may be performed to test the effectiveness of certain controls that we consider relevant to preventing and detecting errors and fraud that are material to the financial statements and to preventing and detecting misstatements resulting from illegal acts and other noncompliance matters that have a direct and material effect on the financial statements. Our tests, if performed, will be less in scope than would be necessary to render an opinion on internal control and, accordingly, no opinion will be expressed in our report on internal control issued pursuant to Government Auditing Standards.
An audit is not designed to provide assurance on internal control or to identify significant deficiencies or material weaknesses. However, during the audit, we will communicate to management and those charged with governance internal control related matters that are required to be communicated under AICPA professional standards and Government Auditing Standards.
Audit Procedures—Compliance
As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we will perform tests of the District’s compliance with the provisions of applicable laws, regulations, contracts, agreements, and grants. However, the objective of our audit will not be to provide an opinion on overall compliance, and we will not express such an opinion in our report on compliance issued pursuant to Government Auditing Standards.
Engagement Administration, Fees, and Other
We understand that your employees will prepare all confirmations we request and will locate any documents selected by us for testing.
The audit documentation for this engagement is the property of Grau & Associates and constitutes confidential information. However, subject to applicable laws and regulations, audit documentation and appropriate individuals will be made available upon request and in a timely manner to a cognizant or oversight agency or its designee, a federal agency providing direct or indirect funding, or the U.S. Government Accountability Office for purposes of a quality review of the audit, to resolve audit findings, or to carry out oversight responsibilities. We will notify you of any such request. If requested, access to such audit documentation will be provided under the supervision of Grau & Associates personnel. Furthermore, upon request, we may provide copies of selected audit documentation to the aforementioned parties. These parties may intend, or decide, to distribute the copies or information contained therein to others, including other governmental agencies. Notwithstanding the foregoing, the parties acknowledge that various documents reviewed or produced during the conduct of the audit may be public records under Florida law. The District agrees to notify Grau & Associates of any public record request it receives that involves audit documentation.

The auditor agrees and understands that Chapter 119, Florida Statutes, may be applicable to documents prepared in connection with the services provided hereunder and agrees to cooperate with public record requests made thereunder. In connection with this Agreement, the auditor agrees to comply with all provisions of Florida’s public records laws, including but not limited to Section 119.0701, Florida Statutes, the terms of which are incorporated herein. Among other requirements, the auditor must:

Keep and maintain public records required by the District to perform the service.
Upon request from the District’s custodian of public records, provide the District with a copy of the requested records or allow the records to be inspected or copied within a reasonable time at a cost that does not exceed the cost provided in Chapter 119, Florida Statutes or as otherwise provided by law.
Ensure that public records that are exempt or confidential and exempt from public records disclosure requirements are not disclosed except as authorized by law for the duration of the contract term and following completion of the Agreement if the auditor does not transfer the records to the District.
Upon completion of this Agreement, transfer, at no cost, to the District all public records in possession of the auditor or keep and maintain public records required by the District to perform the service. If the auditor transfers all public records to the District upon completion of this Agreement, the auditor shall destroy any duplicate public records that are exempt or confidential and exempt from public records disclosure requirements. If the auditor keeps and maintains public records upon completion of the Agreement, the auditor shall meet all applicable requirements for retaining public records. All records stored electronically must be provided to the District, upon request from the District’s custodian of public records, in a format that is compatible with the information technology systems of the District.
IF THE AUDITOR HAS QUESTIONS REGARDING THE APPLICATION OF CHAPTER 119, FLORIDA STATUTES, TO THE AUDITOR’S DUTY TO PROVIDE PUBLIC RECORDS RELATING TO THIS AGREEMENT, CONTACT THE CUSTODIAN OF PUBLIC RECORDS AT PFM GROUP CONSULTING LLC, 3501 QUADRANGLE BLVD., STE 270, ORLANDO, FL 32817, 407-723-5900, RECORDREQUEST@PFM.COM.
This agreement provides for a contract period of one (1) year with the option of two (2) additional one-year renewals upon the written consent of both parties. Our fee for these services will not exceed $3,800 for the September 30, 2026 audit, unless there is a change in activity by the District which results in additional audit work or if Bonds are issued. The fees for the fiscal years, 2027 and 2028 will not exceed $4,000 and $4,200 respectively, unless there is a change in activity by the District which results in additional audit work or if Bonds are issued.
We will complete the audit within prescribed statutory deadlines, with the understanding that your employees will provide information needed to perform the audit on a timely basis. We acknowledge that the District must submit its annual Audit to the Auditor General no later than nine (9) months after the end of the audited fiscal year. Accordingly, for fiscal year ended September 30, 2026, we will deliver a draft audit to the District no later than May 15, 2027 and a final audit report no later than June 1, 2027. All accounting records (including, but not limited to, trial balances, general ledger detail, vendor files, bank and trust statements, minutes, and confirmations) for the fiscal year ended September 30, 2026 must be provided to us no later than February 1, 2027, in order for us to deliver a draft audit to the District no later than May 15, 2027 and a final audit report no later than June 1, 2027.

The audit documentation for this engagement will be retained for a minimum of five years after the report release date. If we are aware that a federal awarding agency or auditee is contesting an audit finding, we will contact the party(ies) contesting the audit finding for guidance prior to destroying the audit documentation.

Our invoices for these fees will be rendered each month as work progresses and are payable on presentation. Invoices will be submitted in sufficient detail to demonstrate compliance with the terms of this agreement. In accordance with our firm policies, work may be suspended if your account becomes 60 days or more overdue and may not be resumed until your account is paid in full. If we elect to terminate our services for nonpayment, our engagement will be deemed to have been completed upon written notification of termination, even if we have not completed our report. You will be obligated to compensate us for all time expended and to reimburse us for all out-of-pocket costs through the date of termination. The above fee is based on anticipated cooperation from your personnel and the assumption that unexpected circumstances will not be encountered during the audit. If significant additional time is necessary, we will discuss it with you and arrive at a new fee estimate.

The District has the option to terminate this agreement with or without cause by providing thirty (30) days written notice of termination to Grau & Associates. Upon any termination of this agreement, Grau & Associates shall be entitled to payment of all work and/or services rendered up until the effective termination of this agreement, subject to whatever claims or off-sets the District may have against Grau & Associates.

We will provide you with a copy of our most recent external peer review report and any letter of comment, and any subsequent peer review reports and letters of comment received during the period of the contract. Our 2025 peer review report accompanies this letter.

We appreciate the opportunity to be of service to Magic Reserve Community Development District and believe this letter accurately summarizes the terms of our engagement. This letter with any addendum, if applicable, is the complete and exclusive statement of the agreement between Grau & Associates and the District with respect to the terms of engagement between the parties. If you have any questions, please let us know. If you agree with the terms of our engagement as described in this letter, please sign the enclosed copy and return it to us.

Very truly yours, Grau & Associates

Antonio J. Grau

RESPONSE:
This letter correctly sets forth the understanding of Magic Reserve Community Development District.

By: 	 Title: 	 Date: 	

•

Program

_PA	_..AICPA'	Peer Review

Florida Institute of Certified Public Accountants

Administered in Florida
by the Florida Institute of CPAs

November 18, 2025 Antonio Grau
Grau & Associates
1001 W. Yamato Road, Suite 301 Boca Raton, FL 33431-4403

Dear Antonio Grau:

It is my pleasure to notify you that on November 18, 2025, the Florida Peer Review Committee accepted the report on the most recent System Review of your firm. The due date for your next review is December 31, 2028. This is the date by which all review documents should be completed and submitted to the administering entity.

As you know, the report had a peer review rating of pass. The Committee asked me to convey its congratulations to the firm.

Thank you for your cooperation.

Sincerely,

Peer Review Team
FICPA Peer Review Committee paul@ficpa.org
850.224.2727, x5957

cc: Daniel Hevia, David Caplivski

Firm Number: 900004390114	Review Number:  616829

119 S Monroe Street, Suite 121 I Tallahassee, FL 32301I 850.224.2727, in Florida I www.ficpa.org

Magic Reserve Community Development District

Ratification of Payment Authorization Nos.
270-277

Payment Authorization 270 6/5/2026

Invoice No	Supplier	Invoice Date Property		Invoice Amount
376776	BERGER, TOOMBS, ELAM, GAINES & 05/29/2026	Magic Reserve COD	3,285.00 (MRCOO)
8618	VGLOBALTECH (MRCOO)	06/02/2026	Magic Reserve COD	125.00
Total:	3,410.00

Secretary / Asst. Secretary

Payment Authorization 271 6/12/2026

Invoice No | Supplier | Invoice Date | Property | Invoice Amount |
1140632 | AQUATIC WEED CONTROL, INC. (MRCDD) | 06/01/2026 | Magic Reserve COD | 115.00 |
4757 | BOYD ENGINEERING, INC. (MRCDD) | 06/03/2026 | Magic Reserve COD | 2,243.45 |
87052-061126 | DUKE ENERGY (MRCDD) | 06/11/2026 | Magic Reserve COD | 4,292.90 |
341-3 | MAGIC VILLAGE RESORT 2 HOA (MRCDD) | 06/11/2026 | Magic Reserve COD | 10,214.72 |
444 | MAGIC VILLAGE RESORT 2 HOA (MRCDD) | 06/11/2026 | Magic Reserve COD | 4,617.00 |
445 | MAGIC VILLAGE RESORT 2 HOA (MRCDD) | 06/11/2026 | Magic Reserve COD | 73.51 |
446 | MAGIC VILLAGE RESORT 2 HOA (MRCDD) | 06/11/2026 | Magic Reserve COD | 1,877.38 |

DM-06-2026-45

OE-EXP-06-2026-22

PFM Management Services LLC (MRCDD)
PFM Management Services LLC (MRCDD)

06/05/2026

06/09/2026

Magic Reserve COD Magic Reserve COD

2,916.67

22.78

Total:	26,373.41

Secretary / Asst. Secretary | | Ch | |

[

Payment Authorization 272 6/18/2026

Invoice No | Supplier | Invoice Date | Property | | Invoice Amount
82887 | COBB COLE (MRCDD) | 06/02/2026 | Magic Reserve COD | | 862.50
7BA85DEF-0130 | OSCEOLA NEWS GAZETTE (MRCDD) | 06/15/2026 | Magic Reserve COD | | 89.03
7BA85DEF-0132 | OSCEOLA NEWS GAZETTE (MRCDD) | 06/16/2026 | Magic Reserve COD | | 67.42
| | | | Total: | 1,018.95

�

Secretary / Asst. Secretary

Payment Authorization 273 7/10/2026

Invoice No | Supplier | Invoice Date | Property | | Invoice Amount
1141792 | AQUATIC WEED CONTROL, INC. (MRCDD) | 07/01/2026 | Magic Reserve CDD | | 115.00
2026.07.06 | Doris H Houck (MRCDD) | 07/06/2026 | Magic Reserve CDD | | 200.00
124665 | Dragonfly Pond Works, LLC (MRCDD) | 07/10/2026 | Magic Reserve CDD | | 2,660.00
39953-062226 | DUKE ENERGY (MRCDD) | 06/22/2026 | Magic Reserve CDD | | 1,470.63
| | | | Total: | 4,445.63

l

Secretary / Asst. Secretary

Payment Authorization 274 7/17/2026

Invoice No | Supplier | Invoice Date | Property | | Invoice Amount
87052-071426 | DUKEENERGY(MRCDD) | 07/14/2026 | Magic Reserve COD | | 4,292.90
346-3 | MAGIC VILLAGE RESORT 2 HOA (MRCDD) | 07/13/2026 | Magic Reserve COD | | 5,482.39
447 | MAGIC VILLAGE RESORT 2 HOA (MRCDD) | 07/13/2026 | Magic Reserve COD | | 2,320.89
448 | MAGIC VILLAGE RESORT 2 HOA (MRCDD) | 07/13/2026 | Magic Reserve COD | | 73.51
449 | MAGIC VILLAGE RESORT 2 HOA (MRCDD) | 07/13/2026 | Magic Reserve COD | | 2,208.38
7BA85DEF-0134 | OSCEOLA NEWS GAZETTE (MRCDD) | 06/30/2026 | Magic Reserve COD | | 209.62
DM-07-2026-49 | PFM Management Services LLC (MRCDD) | 07/06/2026 | Magic Reserve COD | | 2,916.67
8657 | VGLOBALTECH (MRCDD) | 06/30/2026 | Magic Reserve COD | | 300.00
8751 | VGLOBALTECH (MRCDD) | 07/02/2026 | Magic Reserve COD | | 125.00
| | | | Total: | 17,929.36
Secretary / Asst. Secretary | | Chair | |

Payment Authorization 275 7/24/2026

Invoice No | Supplier | Invoice Date | Property | | Invoice Amount
0F63647393 | CINTAS FIRE (MRCDD) | 03/03/2026 | Magic Reserve COD | | 436.92
84746 | COBB COLE (MRCDD) | 07/08/2026 | Magic Reserve COD | | 39.00
39953-072326 | DUKE ENERGY (MRCDD) | 07/23/2026 | Magic Reserve COD | | 1,470.63
| | | | Total: | 1,946.55

Secretary / Asst. Secretary

Payment Authorization 276 8/7/2026

Invoice No	Supplier

8834	VGLOBALTECH (MRCDD)

Secretary I Asst. Secretary

Invoice Date  Property

08/02/2026	Magic Reserve COD

Invoice Amount
125.00
Total:	125.00

Payment Authorization 277 8/14/2026

Invoice No | Supplier | Invoice Date | Property | | Invoice Amount
1142901 | AQUATIC WEED CONTROL, INC. (MRCDD) | 08/01/2026 | Magic Reserve COD | | 115.00
85766 | COBB COLE (MRCDD) | 08/05/2026 | Magic Reserve COD | | 264.00
2026.08.03 | Doris H Houck (MRCDD) | 08/03/2026 | Magic Reserve COD | | 200.00
87052-081326 | DUKE ENERGY (MRCDD) | 08/13/2026 | Magic Reserve COD | | 4,292.90
450 | MAGIC VILLAGE RESORT 2 HOA (MRCDD) | 08/10/2026 | Magic Reserve COD | | 19,314.33
451 | MAGIC VILLAGE RESORT 2 HOA (MRCDD) | 08/10/2026 | Magic Reserve COD | | 79.16
452 | MAGIC VILLAGE RESORT 2 HOA (MRCDD) | 08/10/2026 | Magic Reserve COD | | 4,691.88
| | | | Total: | 28,957.27
| Secretary / Asst. Secretary | | | |

Review of District Financial Statements
(provided under separate cover)

Staff Reports