Holyfield & Thomas, LLC

West Palm Beach, Florida

April 17, 2023

OPERATIONS AT THE PALM BEACH COUNTY CONVENTION CENTER

MANAGED BY GLOBAL SPECTRUM, L.P.

SPECIAL-PURPOSE STATEMENTS OF ASSETS AND LIABILITIES

AS OF SEPTEMBER 30, 2022 AND 2021

See accompanying notes to special-purpose financial statements.

OPERATIONS AT THE PALM BEACH COUNTY CONVENTION CENTER MANAGED BY GLOBAL SPECTRUM, L.P.

SPECIAL-PURPOSE STATEMENTS OF REVENUES, EXPENSES AND TRANSFERS FOR THE YEARS ENDED SEPTEMBER 30, 2022 AND 2021

See accompanying notes to special-purpose financial statements.

OPERATIONS AT THE PALM BEACH COUNTY CONVENTION CENTER MANAGED BY GLOBAL SPECTRUM, L.P.

SPECIAL-PURPOSE STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED SEPTEMBER 30, 2022 AND 2021

See accompanying notes to special-purpose financial statements.

OPERATIONS AT THE PALM BEACH COUNTY CONVENTION CENTER MANAGED BY GLOBAL SPECTRUM, L.P.

SPECIAL-PURPOSE STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED SEPTEMBER 30, 2022 AND 2021

Reconciliation of excess revenues over expense (expenses over revenues), before transfers to net cash provided by (used in) operating activities:

Adjustments to reconcile excess revenues over expense (expenses over revenues), before transfers to net cash provided by (used in) operating activities:

See accompanying notes to special-purpose financial statements.

OPERATIONS AT THE PALM BEACH COUNTY CONVENTION CENTER MANAGED BY GLOBAL SPECTRUM, L.P.

NOTES TO SPECIAL-PURPOSE FINANCIAL STATEMENTS FOR THE YEARS ENDED SEPTEMBER 30, 2022 AND 2021

1. Nature of Organization and Significant Accounting Policies

Nature of Organization

The Board of County Commissioners of Palm Beach County (the "County") entered into an agreement with a third party, Global Spectrum, L.P. (the “Organization”), a Pennsylvania limited partnership, which provides for the outsourcing of management and operation of the Palm Beach County Convention Center (the “Facility”) to the Organization. The Facility is owned by the County and is located in the City of West Palm Beach, Florida. The operations primarily include revenues generated from the rental of the Facility’s meeting rooms, audio/visual equipment and parking services.

Basis of Presentation

The special-purpose financial statements were prepared for the purpose of complying with the provisions of the Convention Center Operating Agreement (Management Agreement) between the County and the Organization and are not intended to be a complete presentation of the Facility’s assets, liabilities, revenues, and expenses in accordance with accounting principles generally accepted in the United States of America.

The special-purpose financial statements only present the assets, liabilities, revenues, expenses, and transfers of the Facility that are managed by the Organization pursuant to the provisions of the Management Agreement.

Basis of Accounting

Revenues and expenses are recognized in the special-purpose financial statements on the accrual basis of accounting. Revenue consists of rental and service income, and other ancillary income. Rental and service income is recognized when the event occurs. Ancillary income is recognized at the time of sale. All expenses are recorded when the good or service is provided.

Fair Value of Financial Instruments

The special-purpose financial statements follow Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 820-10, Fair Value Measurements and Disclosures, which provides a common definition of fair value, establishes a framework to measure fair value within accounting principles generally accepted in the United States of America, and expands the disclosures about fair value measurements. The standard does not create any new fair value measurements. Instead, it applies under existing accounting pronouncements that require or permit fair value measurements.

For assets and liabilities measured at fair value on a recurring basis, entities should disclose information that allows financial statement users to assess (1) the inputs used to develop such measurements, such as Level 1 (i.e., quoted price in an active market for an identical asset or liability), Level 2 (i.e., quoted price for similar assets or liabilities in active markets), or Level 3 (i.e., unobservable inputs); and (2) the effect on changes in net assets of recurring measurements that use significant unobservable (Level 3) inputs. The special-purpose financial statements do not include financial instruments measured at fair value on a recurring basis.