AVE MARIA STEWARDSHIP COMMUNITY DISTRICT COLLIER COUNTY, FLORIDA FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021

AVE MARIA STEWARDSHIP COMMUNITY DISTRICT COLLIER COUNTY, FLORIDA

TABLE OF CONTENTS

	  Page		
INDEPENDENT AUDITOR’S REPORT	1-2	
MANAGEMENT’S DISCUSSION AND ANALYSIS	3-7	
BASIC FINANCIAL STATEMENTS		
Government-Wide Financial Statements:		
Statement of Net Position	8	
Statement of Activities	9	
Fund Financial Statements:		
Balance Sheet – Governmental Funds	10	
Reconciliation of the Balance Sheet – Governmental Funds
to the Statement of Net Position	
11	
Statement of Revenues, Expenditures and Changes in Fund Balances –
Governmental Funds	
12	
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balances of Governmental Funds to the Statement of Activities	
13	
Statement of Net Position – Proprietary Fund	14	
Statement of Revenues, Expenses and Changes in Net Position –
Proprietary Fund	
15	
Statement of Cash Flows – Proprietary Fund	16	
Notes to the Financial Statements	17-29	
REQUIRED SUPPLEMENTARY INFORMATION		
Schedule of Revenues, Expenditures and Changes in Fund Balance –
Budget and Actual – General Fund	
30	
Notes to Required Supplementary Information	31	
OTHER INFORMATION		
Data Elements required by FL Statute 218.39 (3) (c)	32	
INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS	

33-34	
INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE WITH THE REQUIREMENTS OF SECTION 218.415, FLORIDA STATUTES, REQUIRED BY RULE 10.556(10)
OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA	

35	
MANAGEMENT LETTER REQUIRED BY CHAPTER 10.550 OF THE RULES OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA	
36-37	

INDEPENDENT AUDITOR’S REPORT

To the Board of Supervisors
Ave Maria Stewardship Community District Collier County, Florida

Report on the Financial Statements

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

We have audited the accompanying financial statements of the governmental activities, the business-type activities and each major fund of Ave Maria Stewardship Community District, Collier County, Florida (“District”) as of and for the fiscal year ended September 30, 2021, and the related notes to the financial statements, which collectively comprise the District’s basic financial statements as listed in the table of contents.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

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

Opinions

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities and each major fund of the District as of September 30, 2021, and the respective changes in financial position, and, where applicable, cash flows thereof for the fiscal year then ended in accordance with accounting principles generally accepted in the United States of America.

Other Matters

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and budgetary comparison information be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Other Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the District’s basic financial statements. The information for compliance with FL Statute 218.39 (3)
(c) is not a required part of the basic financial statements. The information for compliance with FL Statute
218.39 (3) (c) has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated June 30, 2022, on our consideration of the District’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the District’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the District’s internal control over financial reporting and compliance.

June 30, 2022

MANAGEMENT’S DISCUSSION AND ANALYSIS

Our discussion and analysis of Ave Maria Stewardship Community District, Collier County, Florida (“District”) provides a narrative overview of the District’s financial activities for the fiscal year ended September 30, 2021. Please read it in conjunction with the District’s Independent Auditor’s Report, basic financial statements, accompanying notes and supplementary information to the basic financial statements.

FINANCIAL HIGHLIGHTS

The assets plus deferred outflows of resources of the District exceeded its liabilities at the close of the most recent fiscal year resulting in a net position balance of $941,588.

The change in the District’s total net position in comparison with the prior fiscal year was ($1,607,595), a decrease. The key components of the District’s net position and change in net position are reflected in the table in the government-wide financial analysis section.

At September 30, 2021, the District’s governmental funds reported combined ending fund balances of
$23,066,474, an increase of $15,289,597 in comparison with the prior fiscal year. The total fund balance is restricted for debt service and capital projects and the remainder is unassigned fund balance which is available for spending at the District’s discretion.

OVERVIEW OF FINANCIAL STATEMENTS

This discussion and analysis are intended to serve as the introduction to the District’s basic financial statements. The District’s basic financial statements are comprised of three components: 1) government- wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves.

Government-Wide Financial Statements

The government-wide financial statements are designed to provide readers with a broad overview of the District’s finances, in a manner similar to a private-sector business.

The statement of net position presents information on all the District’s assets plus deferred outflows of resources and liabilities, with the residual amount being reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the District is improving or deteriorating.

The statement of activities presents information showing how the government’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods.

Both of the government-wide financial statements distinguish functions of the District that are principally supported by assessments and Developer contributions (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the District include general government and maintenance operations. The business-type activities of the District include master irrigation operations.

Fund Financial Statements

A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The District, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. The District has two fund categories: governmental funds and proprietary funds.

Governmental Funds

Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflow of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a District’s near-term financing requirements.

Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the District’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.

The District maintains three individual governmental funds. Information is presented separately in the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances for the general fund, debt service fund and capital projects fund. The general, debt service and capital projects funds are considered to be major funds.

The District adopts an annual appropriated budget for its general fund. A budgetary comparison schedule has been provided for the general fund to demonstrate compliance with the budget.

Proprietary Fund
The District maintains one type of proprietary fund, an enterprise fund. An enterprise fund is used to report the same function presented as business-type activities in the government-wide financial statements. The District uses an enterprise fund to account for the irrigation operations within the District.

Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail.

Notes to the Financial Statements

The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements.

GOVERNMENT-WIDE FINANCIAL ANALYSIS

As noted earlier, net position may serve over time as a useful indicator of an entity’s financial position. In the case of the District, assets plus deferred outflows of resources exceeded liabilities at the close of the most recent fiscal year.

NET POSITION SEPTEMBER 30,
Governmental Activities

Business-type Activities	Total

	2021	2020	2021	2020	2021	2020	
Current and other assets	$  33,929,700	$  8,746,255	$  694,720	$  429,360	$ 34,624,420	$ 9,175,615	
Capital assets, net of depreciation	71,715,458	62,231,145	1,349,435	1,439,398	73,064,893	63,670,543	
Def erred outflow s of resources	728,972	772,710	-	-	728,972	772,710	
Total assets and def erred outflow s	106,374,130	71,750,110	2,044,155	1,868,758	108,418,285	73,618,868	
Current liabilities	12,712,607	2,352,938	189,190	96,276	12,901,797	2,449,214	
Long-term liabilities	94,574,900	68,620,471	-	-	94,574,900	68,620,471	
Total liabilities	107,287,507	70,973,409	189,190	96,276	107,476,697	71,069,685	
Net position
Net investment in capital assets	(6,996,613)	
(3,846,752)	
1,349,435	
1,439,398	
(5,647,178)	
(2,407,354)	
Restricted		5,700,277		4,249,951	-	-	5,700,277	4,249,951	
Unrestricted		382,959		373,502	505,530	333,084	888,489	706,586	
Total net position	$	(913,377)	$	776,701	$ 1,854,965	$ 1,772,482	$	941,588	$ 2,549,183	
T
he District’s net position reflects its investment in capital assets (e.g. land, land improvements, and infrastructure) less any related debt used to acquire those assets that is still outstanding. These assets are used to provide services to residents; consequently, these assets are not available for future spending. Although the District’s investment in capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.

The restricted portion of the District’s net position represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position may be used to meet the District’s other obligations.
The District’s net position decreased during the most recent fiscal year. The majority of the decrease was due to costs and deprecation in excess of operating revenues.
Governmental activities

As noted below and in the statement of activities, the cost of all governmental activities during the fiscal year ended September 30, 2021 was $9,495,153. The costs of the District’s activities were primarily funded by program revenues. Program revenues comprised primarily of Developer contributions and assessments. The majority of the increase in expenses was due to increased bond issuance costs as well as increased maintenance and operations expenses.

Business-type activities

Business-type activities reflect the operations of the irrigation services within the District. The cost of operations is covered primarily by charges to customers. In addition, program revenues include Developer contributions for the current fiscal year. The increase in revenues and expenses is primarily due to an increase in irrigation usage in the current year.

CHANGES IN NET POSITION
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,
Governmental Activities	Business-type Activities	Total
2021	2020	2021	2020	2021	2020	
Revenues:
Program revenues
Charges for services	$	5,136,046	

$	4,106,238	

$ 1,242,569	

$ 1,012,758	

$  6,378,615	

$ 5,118,996	
Operating grants and contributions	2,666,323	3,102,814	391,748	377,701	3,058,071	3,480,515	
Capital grants and contributions	378	3,088	-	-	378	3,088	
General revenues
Investment and other revenues	
2,328	
8,820	
-	
-	
2,328	
8,820	
Total revenues	7,805,075	7,220,960	1,634,317	1,390,459	9,439,392	8,611,419	
Expenses:
General government	
309,560	
302,304	
-	
-	
309,560	
302,304	
Maintenance and operations	4,295,830	3,798,925	-	-	4,295,830	3,798,925	
Master irrigation utility	-	-	1,551,834	1,287,228	1,551,834	1,287,228	
Bond issuance costs	918,320	201,725	-	-	918,320	201,725	
Interest	3,971,443	3,367,118	-	-	3,971,443	3,367,118	
Total expenses	9,495,153	7,670,072	1,551,834	1,287,228	11,046,987	8,957,300	
Change in net position	(1,690,078)	(449,112)	82,483	103,231	(1,607,595)	(345,881)	
Net position - beginning	776,701	1,225,813	1,772,482	1,669,251	2,549,183	2,895,064	
Net position - ending	$	(913,377)	$	776,701	$ 1,854,965	$ 1,772,482	$	941,588	$ 2,549,183	

GENERAL BUDGETING HIGHLIGHTS

An operating budget was adopted and maintained by the governing board for the District pursuant to the requirements of Florida Statutes. The budget is adopted using the same basis of accounting that is used in preparation of the fund financial statements. The legal level of budgetary control, the level at which expenditures may not exceed budget, is in the aggregate. Any budget amendments that increase the aggregate budgeted appropriations must be approved by the Board of Supervisors. The general fund budget for the fiscal year ended September 30, 2021 was amended to increase revenues by $532,846 and increase appropriations by $628,638. Actual general fund expenditures did not exceed appropriations for the fiscal year ended September 30, 2021.

CAPITAL ASSETS AND DEBT ADMINISTRATION

Capital Assets

At September 30, 2021, the District had $93,675,802 invested in capital assets for its governmental activities. In the government-wide financial statements depreciation of $21,960,344 has been taken, which resulted in a net book value of $71,715,458. The District’s business-type activities reported net capital assets of
$1,349,435. More detailed information about the District’s capital assets is presented in the notes of the financial statements.

Capital Debt

At September 30, 2021, the District had $94,875,000 in Bonds outstanding for its governmental activities. More detailed information about the District’s capital debt is presented in the notes of the financial statements.

Subsequent to fiscal year end, the District issued $22,950,000 of Series 2022A Capital Improvement Revenue Refunding Bonds, consisting of multiple term bonds with due dates ranging from May 1, 2027 through May 1, 2042 and fixed interest rates ranging from 2.875% to 4%. The Bonds were issued to currently refund and redeem the Capital Improvement Revenue Bonds, Series 2012.

In addition, subsequent to fiscal year end, the District issued $7,775,000 of Series 2022 Capital Improvement Revenue Bonds (Maple Ridge Phase 5 Project), consisting of multiple term bonds with due dates ranging from May 1, 2027 through May 1, 2052 and fixed interest rates ranging from 3% to 4%. The Bonds were issued to finance the construction and acquisition of infrastructure improvements.

CONTACTING THE DISTRICT’S FINANCIAL MANAGEMENT

This financial report is designed to provide our citizens, land owners, customers, investors and creditors with a general overview of the District’s finances and to demonstrate the District’s accountability for the financial resources it manages and the stewardship of the facilities it maintains. If you have questions about this report or need additional financial information, contact the Ave Maria Stewardship Community District’s management services at Special District Services, Inc., 2501A Burns Road, Palm Beach Gardens, Florida 33410.

AVE MARIA STEWARDSHIP COMMUNITY DISTRICT COLLIER COUNTY, FLORIDA
STATEMENT OF NET POSITION SEPTEMBER 30, 2021

	Governmental
Activities	Business-type
Activities	
Total	
ASSETS				
Cash	$	492,621	$	175,681	$	668,302	
Assessments receivable	32,904	519,039	551,943	
Due from Developer	987,361	-	987,361	
Restricted assets:				
Investments	32,416,814	-	32,416,814	
Capital assets:				
Nondepreciable	51,443,637	-	51,443,637	
Depreciable, net	20,271,821	1,349,435	21,621,256	
Total assets	105,645,158	2,044,155	107,689,313	

DEFERRED OUTFLOWS OF RESOURCES				
Deferred charge on refunding (debit)	728,972	-	728,972	
Total deferred outflows of resources	728,972	-	728,972	

LIABILITIES				
Accounts payable	439,485	189,190	628,675	
Contracts and retainage payable	10,423,741	-	10,423,741	
Due to Developer	-	-	-	
Accrued interest payable	1,849,381	-	1,849,381	
Non-current liabilities:				
Due within one year	1,865,000	-	1,865,000	
Due in more than one year	92,709,900	-	92,709,900	
Total liabilities	107,287,507	189,190	107,476,697	

NET POSITION				
Net investment in capital assets	(6,996,613)	1,349,435	(5,647,178)	
Restricted for debt service	5,700,277	-	5,700,277	
Unrestricted	382,959	505,530	888,489	
Total net position	$	(913,377)	$	1,854,965	$	941,588	

See notes to the financial statements

AVE MARIA STEWARDSHIP COMMUNITY DISTRICT COLLIER COUNTY, FLORIDA STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021

Program Revenues Operating

Capital

Net (Expense) Revenue and Changes in Net Position

Functions/Programs	Expenses Primary government:
Governmental activities:

Charges for Services

Grants and Contributions

Grants and Contributions

Governmental Activities

Business-type Activities

Total

General government

$	309,560	$

309,560	$

-	$	-	$

-	$	-	$	-

Maintenance and operations	4,295,830	893,372	1,719,171	378	(1,682,909)	-	(1,682,909)
Bond issuance costs
Interest on long-term debt	918,320
3,971,443	-
3,933,114	-
947,152	-
-	(918,320)
908,823	-
-	(918,320)
908,823	
Total governmental activities	9,495,153	5,136,046	2,666,323	378	(1,692,406)	-	(1,692,406)	

Business-type activities Master irrigation utility	

1,551,834	

1,242,569	

391,748	

-	-	

82,483	

82,483	
Total business-type activities	1,551,834	1,242,569	391,748	-	-	82,483	82,483	

General revenues:	
Unrestricted investment earnings	515	-	515	
Miscellaneous	1,813	-	1,813	
Total general revenues	2,328	-	2,328	
Change in net position	(1,690,078)	82,483	(1,607,595)	
Net position - beginning	776,701	1,772,482	2,549,183	
Net position - ending	 $	(913,377) $ 1,854,965	$	941,588 

See notes to the financial statements

BALANCE SHEET GOVERNMENTAL FUNDS SEPTEMBER 30, 2021

	Major Funds	
Capital

Total Governmental

General

Debt Service

Projects

Funds

ASSETS
Cash	
$	
492,621	
$	
-	
$	
-	
$	
492,621	
Investments	-	6,859,216	25,557,598	32,416,814	
Assessments receivable	32,904	-	-	32,904	
Due from Developer	296,919	690,442	-	987,361	
Total assets	$	822,444	$	7,549,658	$ 25,557,598	$ 33,929,700	

LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable	

$	

439,485	

$	

-	

$	

-	

$	

439,485	
Contracts and retainage payable	-	-	10,423,741	10,423,741	
Total liabilities	439,485	-	10,423,741	10,863,226	

Fund balances: Restricted for:
Debt service		

-		

7,549,658		

-		

7,549,658	
Capital projects		-		-		15,133,857		15,133,857	
Unassigned		382,959		-		-		382,959	
Total fund balances		382,959		7,549,658		15,133,857		23,066,474	

Total liabilities and fund balances	
$	
822,444	
$	
7,549,658	
$	
25,557,598	
$	
33,929,700	

See notes to the financial statements

RECONCILIATION OF THE BALANCE SHEET - GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION
SEPTEMBER 30, 2021

Fund balance - governmental funds	$ 23,066,474
Amounts reported for governmental activities in the statement of net position are different because:
Capital assets used in governmental activities are not financial resources and therefore, are not reported as assets in the governmental funds. The statement of net position includes those capital assets, net of any accumulated depreciation, in the net position of the government as a whole.
Cost of capital assets	93,675,802		
Accumulated depreciation		(21,960,344)	71,715,458	
Deferred charges on refunding of long-term debt are shown as deferred outflows/inflows of resources in the government-wide financial statements; however, this amount is expensed in the governmental fund financial statements.		

728,972	
Liabilities not due and payable from current available resources are  not  reported  as  liabilities  in  the  governmental  fund			
statements.	All liabilities, both current and long-term, reported in the government-wide financial statements.
Accrued interest payable	are	

(1,849,381)	
Bonds payable			(94,574,900)	(96,424,281)	
Net position of governmental activities		$	(913,377)	

See notes to the financial statements

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021

	Major Funds		Total
Capital	Governmental
	General	Debt Service	Projects	Funds	
REVENUES
Assessments	
$	1,202,932	
$	3,933,114	
$	-	
$	5,136,046	
Developer contributions	1,719,171	946,783	-	2,665,954	
Interest income	515	369	378	1,262	
Miscellaneous	1,813	-	-	1,813	
Total revenues	2,924,431	4,880,266	378	7,805,075	

EXPENDITURES
Current:
General government	309,560	-	-	309,560	
Maintenance and operations	2,605,414	-	-	2,605,414	
Debt service:
Principal	
-	
12,975,000	
-	
12,975,000	
Interest	-	3,416,893	-	3,416,893	
Bond issuance costs	-	276,730	641,590	918,320	
Capital outlay	-	-	11,174,729	11,174,729	
Total expenditures	2,914,974	16,668,623	11,816,319	31,399,916	

Excess (deficiency) of revenues over (under) expenditures	

9,457	

(11,788,357)	

(11,815,941)	

(23,594,841)	

OTHER FINANCING SOURCES (USES)
Transfers in (out)	

-	

(52)	

52	

-	
Bond premium	-	-	315,239	315,239	
Bond discount	-	-	(20,801)	(20,801)	
Bond proceeds	-	13,704,556	24,885,444	38,590,000	
Total other financing sources (uses)	-	13,704,504	25,179,934	38,884,438	

Net change in fund balances	
9,457	
1,916,147	
13,363,993	
15,289,597	
Fund balances - beginning	373,502	5,633,511	1,769,864	7,776,877	

Fund balances - ending	
$	382,959	
$	7,549,658	
$ 15,133,857	
$ 23,066,474	

See notes to the financial statements

RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021

Net change in fund balances - total governmental funds	$ 15,289,597 Amounts reported for governmental activities in the statement of activities
are different because:
Governmental funds report capital outlays as expenditures, however, the cost of capital assets is eliminated in the statement of activities

and capitalized in the statement of net position.
Depreciation of capital assets is not recognized in the governmental fund statements but is reported as an expense in the statement of activities.
Governmental funds report bond proceeds when debt is first issued, whereas these proceeds are eliminated in the statement of activities and recognized as long-term liabilities in the statement of net
In connection with the issuance of the Bonds, the original issue discount/(premium) is reported as a financing use/source when debt is first issued, whereas this amount is eliminated in the statement of activities and reduces/increases long-term liabilities in the statement of net position.
Repayments of long-term liabilities are reported as expenditures in the governmental fund statement but such repayments reduce liabilities in the statement of net position and are eliminated in the statement of activities.
Governmental funds report the effect of, discounts and deferred amounts on refunding when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities.

11,174,729

(1,690,416)

(38,590,000)

(294,438)

12,975,000

Amortization on original issue discount	(44,991)
Amortization on deferred amount on refunding	(43,738)
The change in accrued interest on long-term liabilities between the current and prior fiscal year is recorded in the statement of activities
but not in the fund financial statements.		(465,821) 
Change in net position of governmental activities	$  (1,690,078)

See notes to the financial statements

STATEMENT OF NET POSITION - PROPRIETARY FUND SEPTEMBER 30, 2021

ASSETS
Current assets: Cash

Business-type Activities - Master Irrigation
	Utility	

$	175,681

Accounts receivables		519,039 

Capital assets:		
Master Irrigation System Improvements	2,249,065	
Less accumulated depreciation		(899,630)	
Total capital assets, net		1,349,435 	
Total noncurrent assets		1,349,435 	
Total assets		2,044,155 	

Total current assets		694,720  Noncurrent assets:

LIABILITIES
Current liabilities:
Accounts payable		189,190 
Total current liabilities		189,190 

Total liabilities		189,190 

NET POSITION		
Invested in capital assets	1,349,435	
Unrestricted		505,530 	
Total net position	 $	1,854,965 	

See notes to the financial statements

STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION - PROPRIETARY FUND
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021

OPERATING REVENUES
Charges for sales and services: Charges for irrigation services

Business-type Activities - Master
  Irrigation Utility	

$	1,013,650

Other		228,919 
Total operating revenues		1,242,569 

OPERATING EXPENSES
Irrigation	
326,731	
Administrative and operations	1,135,140	
Depreciation		89,963 	
Total operating expense		1,551,834 	
Operating income (loss)		(309,265)	

NON OPERATING REVENUES (EXPENSES)	
Developer contribution		391,748 	
Total non operating revenue (expenses)		391,748 	
Net income	82,483	
Total net position- beginning		1,772,482 	
Total net position - ending	 $	1,854,965 	

See notes to the financial statements

STATEMENT OF CASH FLOWS - PROPRIETARY FUND FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers and users

Business-type Activities - Master Irrigation
	Utility	
$	1,023,748

Payments to suppliers of goods and services		(1,368,957) Net cash provided (used) by operating activities			(345,209)

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Developer contribution	
	391,748 	
Net cash provided (used) by noncapital financing activities		391,748 	
Net increase (decrease) in cash and cash equivalents	46,539	
Cash and cash equivalents - October 1		129,142 	
Cash and cash equivalents - September 30	 $	175,681 	
RECONCILIATION OF OPERATING INCOME (LOSS) TO
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES
Operating income (loss)	

$	(309,265)	
Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities:
Depreciation	

89,963	
(Increase)/Decrease in:
Accounts receivable	
(218,821)	
Increase/(Decrease) in:
Accounts payable	
	92,914 	
Total adjustments		(35,944)	

Net cash provided (used) by operating activities	 $	(345,209)

See notes to the financial statements

COLLIER COUNTY, FLORIDA
NOTES TO FINANCIAL STATEMENTS

NOTE 1 – NATURE OF ORGANIZATION AND REPORTING ENTITY

Ave Maria Stewardship Community District ("District") was created by the Florida Legislature (Chapter 2004- 461) on April 23, 2004 and became effective on June 17, 2004, pursuant to Chapter 189, Florida Statutes.

The District was established for the purposes of providing the public infrastructure and managing the acquisition, construction, maintenance and operation of all or a portion of the infrastructure necessary for community development within the District.

The District is governed by the Board of Supervisors ("Board"), which is composed of five members. The Supervisors are elected on an at large basis by the owners of the property within the District. Ownership of land within the District entitles the owner to one vote per acre. The Board of Supervisors of the District exercise all powers granted to the District pursuant to Chapter 2004-461 and other appropriate Florida Statutes. As of September 30, 2021, one of the Board members was affiliated with Ave Maria Development, LLLP (“Developer”).

The Board has the final responsibility for:
Assessing and levying assessments.
Approving budgets.
Exercising control over facilities and properties.
Controlling the use of funds generated by the District.
Approving the hiring and firing of key personnel.
Financing improvements.

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

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Government-Wide and Fund Financial Statements
The basic financial statements include both government-wide and fund financial statements.

The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the non-fiduciary activities of the primary government. For the most part, the effect of interfund activity has been removed from these statements.

The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment; operating-type special assessments for maintenance and debt service are treated as charges for services and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Other items not included among program revenues are reported instead as general revenues.

Measurement Focus, Basis of Accounting and Financial Statement Presentation
The government-wide financial statements and the enterprise fund are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Assessments are recognized as revenues in the year for which they are levied. Grants and similar items are to be recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.

Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures are recorded only when payment is due.

Assessments
Assessments are non-ad valorem assessments on certain land and all platted lots within the District. Assessments are levied each November 1 on property of record as of the previous January. The fiscal year for which annual assessments are levied begins on October 1 with discounts available for payments through February 28 and become delinquent on April 1. For debt service assessments, amounts collected as advance payments are used to prepay a portion of the Bonds outstanding. Otherwise, assessments are collected annually to provide funds for the debt service on the portion of the Bonds which are not paid with prepaid assessments.

Assessments and interest associated with the current fiscal period are considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. The portion of assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period.

The District reports the following major governmental funds:

General Fund
The general fund is the general operating fund of the District. It is used to account for all financial resources except those required to be accounted for in another fund.

Debt Service Fund
The debt service fund is used to account for the accumulation of resources for the annual payment of principal and interest on long-term debt.

Capital Projects Fund
This fund accounts for the financial resources to be used for the acquisition or construction of major infrastructure within the District.

The District reports the following major proprietary fund:

Master Irrigation Utility Fund
The master irrigation utility fund is used to account for operations that are to be financed and operated in a manner similar to private business enterprises. The costs of providing services to customers are to be recovered primarily through user charges.

Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the District’s enterprise fund are charges to customers for sales and services. Operating expenses of the enterprise fund include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses.

Measurement Focus, Basis of Accounting and Financial Statement Presentation (Continued)
As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements.

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

Assets, Liabilities and Net Position or Equity

Restricted Assets
These assets represent cash and investments set aside pursuant to Bond covenants or other contractual restrictions.

Deposits and Investments
The District’s cash and cash equivalents are considered to be cash on hand and demand deposits.

The District has elected to proceed under the Alternative Investment Guidelines as set forth in Section
218.415 (17) Florida Statutes. The District may invest any surplus public funds in the following:
The Local Government Surplus Trust Funds, or any intergovernmental investment pool authorized pursuant to the Florida Interlocal Cooperation Act;
Securities and Exchange Commission registered money market funds with the highest credit quality rating from a nationally recognized rating agency;
Interest bearing time deposits or savings accounts in qualified public depositories;
Direct obligations of the U.S. Treasury.

Securities listed in paragraph c and d shall be invested to provide sufficient liquidity to pay obligations as they come due. In addition, surplus funds may be deposited into certificates of deposit which are insured and any unspent Bond proceeds are required to be held in investments as specified in the Bond Indenture.

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

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

Capital Assets
Capital assets, which include property, plant and equipment, and infrastructure assets (e.g., roads, sidewalks and similar items) are reported in the government activities columns in the government-wide financial statements. Capital assets are defined by the government as assets with an initial, individual cost of more than $5,000 (amount not rounded) and an estimated useful life in excess of two years. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at acquisition value at the date of donation.

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

Assets, Liabilities and Net Position or Equity (Continued)
Property, plant and equipment of the District are depreciated using the straight-line method over the following estimated useful lives:
Assets	Years	
Roadway Improvements	25	
Master Irrigation System	25	
Equipment	10	
Mitigation and Restoration	25	
Stormwater Management	25	

In the governmental fund financial statements, amounts incurred for the acquisition of capital assets are reported as fund expenditures. Depreciation expense is not reported in the governmental fund financial statements.

Refundings of Debt
For current refundings and advance refundings resulting in the defeasance of debt, the difference between the reacquisition price and the net carrying amount of the old debt is reported as a deferred outflow of resources/deferred inflow of resources and recognized ratably as a component of interest expense over the remaining life of the old debt or the life of the new debt, whichever is shorter. In connection with refunding,
$43,738 was recognized as a component of interest expense in the current fiscal year.

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

Long-Term Obligations
In the government-wide financial statements long-term debt and other long-term obligations are reported as liabilities in the statement of net position. Bond premiums and discounts are deferred and amortized ratably over the life of the Bonds. Bonds payable are reported net of applicable premiums or discounts. Bond issuance costs are expensed when incurred.

In the fund financial statements, governmental fund types recognize premiums and discounts, as well as issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.

Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then.

In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time.

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

Assets, Liabilities and Net Position or Equity (Continued)

Fund Equity/Net Position
The District can establish limitations on the use of fund balance as follows:

Committed fund balance – Amounts that can be used only for the specific purposes determined by a formal action (resolution) of the Board of Supervisors. Commitments may be changed or lifted only by the Board of Supervisors taking the same formal action (resolution) that imposed the constraint originally. Resources accumulated pursuant to stabilization arrangements sometimes are reported in this category.

Assigned fund balance – Includes spendable fund balance amounts established by the Board of Supervisors that are intended to be used for specific purposes that are neither considered restricted nor committed. The Board may also assign fund balance as it does when appropriating fund balance to cover differences in estimated revenue and appropriations in the subsequent year’s appropriated budget. Assignments are generally temporary and normally the same formal action need not be taken to remove the assignment.

The District first uses committed fund balance, followed by assigned fund balance and then unassigned fund balance when expenditures are incurred for purposes for which amounts in any of the unrestricted fund balance classifications could be used.
Net position is the difference between assets and deferred outflows of resources less liabilities and deferred inflows of resources. Net position in the government-wide financial statements are categorized as net investment in capital assets, restricted or unrestricted. Net investment in capital assets represents net position related to infrastructure and property, plant and equipment. Restricted net position represents the assets restricted by the District’s Bond covenants or other contractual restrictions. Unrestricted net position consists of the net position not meeting the definition of either of the other two components.
.
Other Disclosures

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

NOTE 3 – BUDGETARY INFORMATION

The District is required to establish a budgetary system and an approved Annual Budget. Annual Budgets are adopted on a basis consistent with generally accepted accounting principles for the general fund. All annual appropriations lapse at fiscal year-end.

The District follows these procedures in establishing the budgetary data reflected in the financial statements.

Each year the District Manager submits to the District Board a proposed operating budget for the fiscal year commencing the following October 1.
Public hearings are conducted to obtain public comments.
Prior to October 1, the budget is legally adopted by the District Board.
All budget changes must be approved by the District Board.
The budgets are adopted on a basis consistent with generally accepted accounting principles.
Unused appropriation for annually budgeted funds lapse at the end of the year.

NOTE 4 – DEPOSITS AND INVESTMENTS
Deposits
The District’s cash balances were entirely covered by federal depository insurance or by a collateral pool pledged to the State Treasurer. Florida Statutes Chapter 280, "Florida Security for Public Deposits Act", requires all qualified depositories to deposit with the Treasurer or another banking institution eligible collateral equal to various percentages of the average daily balance for each month of all public deposits in excess of any applicable deposit insurance held. The percentage of eligible collateral (generally, U.S. Governmental and agency securities, state or local government debt, or corporate bonds) to public deposits is dependent upon the depository's financial history and its compliance with Chapter 280. In the event of a failure of a qualified public depository, the remaining public depositories would be responsible for covering any resulting losses.
Investments
The District’s investments were held as follows at September 30, 2021:

Investment	Fair Value	Credit Risk	Maturities

First American Government Obligation Fund Class Y
First American Treasury Obligations Fund

$	2,729,059

S&P AAAm	Weighted average of the
fund portfolio: 14 days
S&P AAAm	Weighted average of the

Class Y	483,732	fund portfolio: 13 days
US Bank Mmkt	29,204,023	N/A	N/A
Total Investments	$  32,416,814

Credit risk – For investments, credit risk is generally the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Investment ratings by investment type are included in the preceding summary of investments.

Concentration risk – The District places no limit on the amount the District may invest in any one issuer.
Interest rate risk – The District does not have a formal policy that limits investment maturities as a means of managing exposure to fair value losses arising from increasing interest rates.
However, the Bond Indenture limits the type of investments held using unspent proceeds.

Fair Value Measurement – When applicable, the District measures and records its investments using fair value measurement guidelines established in accordance with GASB Statements. The framework for measuring fair value provides a fair value hierarchy that prioritizes the inputs to valuation techniques.

These guidelines recognize a three-tiered fair value hierarchy, in order of highest priority, as follows:
Level 1: Investments whose values are based on unadjusted quoted prices for identical investments in active markets that the District has the ability to access;
Level 2: Investments whose inputs - other than quoted market prices - are observable either directly or indirectly; and,
Level 3: Investments whose inputs are unobservable.

The fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the entire fair value measurement. Valuation techniques used should maximize the use of observable inputs and minimize the use of unobservable inputs.

Money market investments that have a maturity at the time of purchase of one year or less and are held by governments other than external investment pools are measured at amortized cost.

Capital asset activity for the fiscal year ended September 30, 2021 was as follows:

Governmental activities
Capital assets, not being depreciated

Beginning
Balance	Additions	Reductions

Ending Balance

Land and improvements	$ 18,622,245	$	-	$	-	$ 18,622,245	
Construction in progress-Crossw alks	239,047	-	-	239,047	
Construction in progress	21,407,616	11,174,729	-	32,582,345	
Total capital assets, not being depreciated	40,268,908	11,174,729	-	51,443,637	

Capital assets, being depreciated Roadw ay Improvements	

41,652,306	

-	

-	

41,652,306	
Equipment	18,833	-	-	18,833	
Mitigation and Restoration	119,108	-	-	119,108	
Drainage/Stormw ater Management System	441,918	-	-	441,918	
Total capital assets, being depreciated	42,232,165	-	-	42,232,165	

Less accumulated depreciation for: Roadw ay Improvements	

19,993,104	

1,666,092	

-	

21,659,196	
Equipment	7,532	1,883	-	9,415	
Mitigation and Restoration	57,168	4,764	-	61,932	
Drainage/Stormw ater Management System	212,124	17,677	-	229,801	
Total accumulated depreciation	20,269,928	1,690,416	-	21,960,344	

Total capital assets, being depreciated, net	
21,962,237	
(1,690,416)	-	20,271,821	

Governmental activities capital assets	
$ 62,231,145	
$  9,484,313	$	-	$ 71,715,458	
Business-type activities
Capital assets, being depreciated
Master Irrigation System Improvements	

$  2,249,065	

$	-	$	-	$	2,249,065	
Total capital assets, being depreciated	2,249,065	-	-	2,249,065	

Less accumulated depreciation for:			
Master Irrigation System Improvements	809,667	89,963	-	899,630	
Total accumulated depreciation	809,667	89,963	-	899,630	

Total capital assets, being depreciated, net	
1,439,398	
(89,963)	
-	1,349,435	

Business-type activities capital assets	
$  1,439,398	
$	(89,963)	
$	-	$  1,349,435	

The Maple Ridge Project consists of master roadway, irrigation, stormwater/drainage and landscaping improvements related to three neighborhoods within the District referred to as Maple Ridge Development (“Maple Ridge”). The total cost of the Maple Ridge project has been estimated at approximately $38,560,000.

In the current fiscal year, the District paid the Developer a total of $11,153,558 in order to acquire improvements valued for same amount.
For governmental activities, depreciation was charged to the maintenance and operations function.

Capital Improvement Revenue Refunding Bonds Series 2012
On June 7, 2012, the District issued $29,100,000 of Capital Improvement Revenue Refunding Bonds, Series 2012. The Series 2012 Bonds were applied together with other legally available funds to refund the Series 2006BAB (Bond Anticipation Bonds, Series 2006). The Series 2012 Bonds are due on May 1, 2042 with fixed interest rates of 6.70%. Interest is paid semiannually on each May 1 and November 1, commencing November 1, 2012. Principal on the Series 2012 Bonds is paid serially and commenced on May 1, 2013.

The Bonds are subject to optional, mandatory sinking fund and extraordinary mandatory redemption prior to maturity in the manner determined by the Bond Registrar if certain events occurred as outlined in the Bond Indenture. This occurred during the current fiscal year as the District collected assessments from lot closings and prepaid $10,000 of the Series 2012 Bonds.

The Bond Indenture requires that the District maintain adequate funds in a reserve account to meet the debt service reserve requirement as defined in the Indenture. In addition, the Bond Indenture has certain restrictions and requirements relating principally to the procedures to be followed in the collection of pledged revenues and the application of the revenues to the various restricted accounts. The District is in compliance with the requirements of the Bond Indenture as of September 30, 2021.

Contemporaneously with the issuance of the 2012 Bonds, the District, the Developer and the Trustee entered into a Debt Service Reserve Fund Deficiency Agreement whereby the Developer agreed to restore the reserve account in the event that there is a deficiency in the reserve account. The Deficiency Agreement further provides that in the event payments are made by the Developer, it shall be reimbursed to the Developer from any sources legally available to the District so long as the 2012 Bonds are outstanding and the Developer is not delinquent in the payment of the Series 2012 Assessments.

Capital Improvement Revenue Bonds Series 2015
In March 2015, the District issued $2,530,000 of Capital Improvement Revenue Bonds, Series 2015. The Bonds are due May 1, 2045 with a fixed interest rate of 5.000% to 5.375%. The Bonds were issued to finance the acquisition and construction of certain improvements for the benefit of the District. Interest is to be paid semiannually on each May 1 and November 1, commencing May 1, 2015. Principal is due annually on May 1, commencing May 1, 2016.

The Bonds are subject to redemption at the option of the District prior to maturity as outlined in the Bond Indenture. The Bonds are also subject to extraordinary mandatory redemption prior to their maturity in the manner determined by the Bond Registrar if certain events occurred as outlined in the Bond Indenture. This occurred during the current fiscal year as the District collected assessments from lot closings and prepaid
$75,000 of the Series 2015 Bonds.

The Bond Indenture requires that the District maintain adequate funds in a reserve account to meet the debt service reserve requirement as defined in the Indenture. In addition, the Bond Indenture has certain restrictions and requirements relating principally to the procedures to be followed in the collection of pledged revenues and the application of the revenues to the various restricted accounts. The District is in compliance with the requirements of the Bond Indenture as of September 30, 2021.

Capital Improvement Revenue Bonds Series 2016
On November 02, 2016, the District the District issued $3,390,000 of Capital Improvement Revenue Bonds, Series 2016 due on May 1, 2047 with a fixed interest rate of 5.250% The Bonds were issued to finance the acquisition and construction of certain improvements for the benefit of the District. Interest is to be paid semiannually on each May 1 and November 1. Principal on the Bonds is to be paid serially commencing May 1, 2019 through May 1, 2047.

The Bonds are subject to redemption at the option of the District prior to maturity as outlined in the Bond Indenture. The Bonds are also subject to extraordinary mandatory redemption prior to their maturity in the manner determined by the Bond Registrar if certain events occurred as outlined in the Bond Indenture.

Capital Improvement Revenue Bonds Series 2016 (Continued)
The Bond Indenture requires that the District maintain adequate funds in a reserve account to meet the debt service reserve requirement as defined in the Indenture. In addition, the Bond Indenture has certain restrictions and requirements relating principally to the procedures to be followed in the collection of pledged revenues and the application of the revenues to the various restricted accounts. The District is in compliance with the requirements of the Bond Indenture as of September 30, 2021.

Bond Anticipation Notes Series 2016
On November 2, 2016, the District the District issued $11,085,000 of Bond Anticipation Notes due in November 1, 2021 with a fixed interest rate of 4.625%. The Notes were issued to finance the acquisition and construction of certain improvements for the benefit of the District. Interest is to be paid semiannually on each May 1 and November 1. Principal on the Notes is to be paid in one lump sum on May 1, 2021. The Bond Anticipation Notes were refunded during the current fiscal year.

Capital Improvement Revenue Bonds Series 2018
On June 1, 2019, the District the District issued $4,000,000 of Capital Improvement Revenue Bonds, Series 2019 due on May 1, 2049 with a fixed interest rate of 4.90% to 5.375% The Bonds were issued to finance the acquisition and construction of certain improvements for the benefit of the District. Interest is to be paid semiannually on each May 1 and November 1. Principal on the Bonds is to be paid serially commencing May 1, 2020 through May 1, 2049.

The Bonds are subject to redemption at the option of the District prior to maturity as outlined in the Bond Indenture. The Bonds are also subject to extraordinary mandatory redemption prior to their maturity in the manner determined by the Bond Registrar if certain events occurred as outlined in the Bond Indenture. This occurred during the current fiscal year as the District collected assessments from lot closings and prepaid
$225,000 of the Series 2018 Bonds.

The Bond Indenture requires that the District maintain adequate funds in a reserve account to meet the debt service reserve requirement as defined in the Indenture. In addition, the Bond Indenture has certain restrictions and requirements relating principally to the procedures to be followed in the collection of pledged revenues and the application of the revenues to the various restricted accounts. The District is in compliance with the requirements of the Bond Indenture as of September 30, 2021.

Capital Improvement Revenue Refunding Bonds Series 2019
In June 2020, the District issued $20,310,000 of Capital Improvement Revenue Refunding Bonds, Series 2019. The Bonds are due May 1, 2038 with interest rate ranging from 2% to 3%. The Bonds were issued to refund the Series 2006A Bonds. Interest is to be paid semiannually on each May 1 and November 1, commencing November 1, 2019. Principal is due annually on May 1, commencing May 1, 2020.

The Bonds are subject to redemption at the option of the District prior to maturity as outlined in the Bond Indenture. The Bonds are also subject to extraordinary mandatory redemption prior to their maturity in the manner determined by the Bond Registrar if certain events occurred as outlined in the Bond Indenture.

The Bond Indenture requires that the District maintain adequate funds in a reserve account to meet the debt service reserve requirement as defined in the Indenture. In addition, the Bond Indenture has certain restrictions and requirements relating principally to the procedures to be followed in the collection of pledged revenues and the application of the revenues to the various restricted accounts. The District is in compliance with the requirements of the Bond Indenture as of September 30, 2021.

Capital Improvement Revenue Bonds Series 2020
In July 2020, the District issued $3,440,000 of Series 2020 Capital Improvement Revenue Bonds, consisting of multiple term bonds with due dates ranging from May 1, 2023 through May 1, 2052 and fixed interest rates ranging from 3.80% to 4.45%. The Bonds were issued to finance the acquisition and construction of certain improvements for the benefit of the District. Interest is to be paid semiannually on each May 1 and November 1, commencing November 1, 2020. Principal is due annually on May 1, commencing May 1, 2023.

The Bonds are subject to redemption at the option of the District prior to maturity as outlined in the Bond Indenture. The Bonds are also subject to extraordinary mandatory redemption prior to their maturity in the manner determined by the Bond Registrar if certain events occurred as outlined in the Bond Indenture.

The Bond Indenture requires that the District maintain adequate funds in a reserve account to meet the debt service reserve requirement as defined in the Indenture. In addition, the Bond Indenture has certain restrictions and requirements relating principally to the procedures to be followed in the collection of pledged revenues and the application of the revenues to the various restricted accounts. The District is in compliance with the requirements of the Bond Indenture as of September 30, 2021.

Capital Improvement Revenue Bonds Series 2021 National
In March 2021, the District issued $11,340,000 of Series 2021 Capital Improvement Revenue Bonds, consisting of multiple term bonds with due dates ranging from May 1, 2026 through May 1, 2051 and fixed interest rates ranging from 2.6% to 4%. The Bonds were issued to finance the acquisition and construction of certain improvements for the benefit of the District. Interest is to be paid semiannually on each May 1 and November 1, commencing May 1, 2021. Principal is due annually on May 1, commencing May 1, 2022.

The Bonds are subject to redemption at the option of the District prior to maturity as outlined in the Bond Indenture. The Bonds are also subject to extraordinary mandatory redemption prior to their maturity in the manner determined by the Bond Registrar if certain events occurred as outlined in the Bond Indenture.

The Bond Indenture requires that the District maintain adequate funds in a reserve account to meet the debt service reserve requirement as defined in the Indenture. In addition, the Bond Indenture has certain restrictions and requirements relating principally to the procedures to be followed in the collection of pledged revenues and the application of the revenues to the various restricted accounts. The District is in compliance with the requirements of the Bond Indenture as of September 30, 2021.

Capital Improvement Revenue Bonds Series 2021 Master (Phase 3)
In March 2021, the District issued $11,610,000 of Series 2021 Capital Improvement Revenue Bonds, consisting of multiple term bonds with due dates ranging from May 1, 2026 through May 1, 2052 and fixed interest rates ranging from 2.25% to 4%. The Bonds were issued to refund the Bond Anticipation Notes Series 2016. Interest is to be paid semiannually on each May 1 and November 1, commencing November 1, 2021. Principal is due annually on May 1, commencing May 1, 2023.

The Bonds are subject to redemption at the option of the District prior to maturity as outlined in the Bond Indenture. The Bonds are also subject to extraordinary mandatory redemption prior to their maturity in the manner determined by the Bond Registrar if certain events occurred as outlined in the Bond Indenture.

The Bond Indenture requires that the District maintain adequate funds in a reserve account to meet the debt service reserve requirement as defined in the Indenture. In addition, the Bond Indenture has certain restrictions and requirements relating principally to the procedures to be followed in the collection of pledged revenues and the application of the revenues to the various restricted accounts. The District is in compliance with the requirements of the Bond Indenture as of September 30, 2021.

Bond Anticipation Notes Series 2021 (Phase 4)
In March 2021, the District issued $15,640,000 of Bond Anticipation Notes Series 2021 (Phase 4), which are due on May 1, 2026 and has a fixed interest rate of 3.5%. The Notes were issued to finance the acquisition and construction of certain improvements for the benefit of the District. Interest is to be paid semiannually on each May 1 and November 1, commencing November 1, 2021. Principal is due annually on May 1, 2026.

The Notes are subject to redemption at the option of the District prior to maturity as outlined in the Indenture. The Notes are also subject to extraordinary mandatory redemption prior to their maturity in the manner determined by the Bond Registrar if certain events occurred as outlined in the Indenture.

The Indenture requires that the District maintain adequate funds in a reserve account to meet the debt service reserve requirement as defined in the Indenture. In addition, the Indenture has certain restrictions and requirements relating principally to the procedures to be followed in the collection of pledged revenues and the application of the revenues to the various restricted accounts. The District is in compliance with the requirements of the Indenture as of September 30, 2021.

Long-term Debt Activity
Changes in long-term liability activity for the fiscal year ended September 30, 2021 were as follows:

	Beginning
Balance	
Additions	
Reductions	Ending
Balance	Due Within
One Year	
Governmental activities						
Bonds payable:						
Series 2012	$ 25,800,000	$	-	$	(545,000)	$ 25,255,000	$	570,000	
Series 2015	2,325,000	-	(120,000)	2,205,000	50,000	
Less: Original issue discount	(400,787)	-	18,498	(382,289)	-	
Series 2016 Bonds	3,235,000	-	(55,000)	3,180,000	60,000	
Series 2016 BAN	11,085,000	-	(11,085,000)	-	-	
Less: Original issue discount	(13,821)	-	13,821	-	-	
Series 2018	3,940,000	-	(285,000)	3,655,000	60,000	
Series 2019	19,435,000	-	(885,000)	18,550,000	900,000	
Less: Original issue discount	(224,921)	-	12,672	(212,249)	-	
Series 2020	3,440,000	-	-	3,440,000	-	
Series 2021 - Master	-	11,610,000	-	11,610,000	-	
Add: Original issue premium	-	295,746	-	295,746	-	
Series 2021 - National	-	11,340,000	-	11,340,000	225,000	
Add: Original issue premium	-	19,493	-	19,493	-	
Series 2021 - BAN	-	15,640,000	-	15,640,000	-	
Less: Original issue discount	-	(20,801)	-	(20,801)	-	
Total	$ 68,620,471	$ 38,884,438	$ (12,930,009)	$ 94,574,900	$ 1,865,000	

Long-term Debt Activity
At September 30, 2021, the scheduled debt service requirements on the long-term debt were as follows:

Year ending September 30:

Governmental Activities

Principal	Interest	Total

2022	$	1,865,000	$	3,870,702	$	5,735,702	
2023	2,235,000	4,083,814	6,318,814	
2024	2,320,000	4,002,049	6,322,049	
2025	2,410,000	3,916,336	6,326,336	
2026	18,130,000	3,826,034	21,956,034	
2027-2031	14,120,000	14,818,654	28,938,654	
2032-2036	17,620,000	11,426,255	29,046,255	
2037-2041	17,950,000	6,994,213	24,944,213	
2042-2046	9,945,000	2,941,040	12,886,040	
2047-2051	7,455,000	1,075,324	8,530,324	
2052	825,000	33,899	858,899	
Total	$ 94,875,000	$ 56,988,320	$ 151,863,320	

NOTE 7 – DEVELOPER TRANSACTIONS

The Developer has agreed to fund the general operations of the District. In connection with that agreement, Developer contributions to the general fund were $1,719,171 which includes a receivable of $296,919 as of September 30, 2021. The Developer has also agreed to fund the debt service on the Bonds which is not paid through special or prepaid assessments. During the current fiscal year, the Developer provided $946,783 to the Debt Service Fund which includes a receivable of $690,442 as of September 30, 2021. Finally, the Developer contributed $391,748 to the Master Irrigation Fund which includes a receivable of $228,760 as of September 30, 2021.

NOTE 8 – CONCENTRATION

A significant portion majority of the District’s activity is dependent upon the continued involvement of the Developer, the loss of which could have a material adverse effect on the District’s operations.

NOTE 9 – INTERLOCAL AGREEMENT

In a prior year, the District and Collier County entered into an interlocal agreement related to the future development of the lands within and contiguous to the District that secures the traffic capacity for developing the community of Ave Maria. Collier County and the Developer had previously entered into a Developer Agreement related to the development of the Ave Maria community that states the Developer will donate $7.8 million in certain right of way and storm water improvements, provide the design and permitting related to certain road ways required for the project, and pay approximately $60 million in road impact fees for construction of roadways. The Developer Agreement is not an obligation of the District.

NOTE 10 – MANAGEMENT COMPANY

The District has contracted with a management company to perform management advisory services, which include financial and accounting services. Certain employees of the management company also serve as officers of the District. Under the agreement, the District compensates the management company for management, accounting, financial reporting, computer and other administrative costs.

NOTE 11 – RISK MANAGEMENT

The District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; and natural disasters. The District has obtained commercial insurance from independent third parties to mitigate the costs of these risks; coverage may not extend to all situations. There were no settled claims during the past three years.

NOTE 12 – SUBSEQUENT EVENTS

Bonds Issued
Subsequent to fiscal year end, the District issued $22,950,000 of Series 2022A Capital Improvement Revenue Refunding Bonds, consisting of multiple term bonds with due dates ranging from May 1, 2027 through May 1, 2042 and fixed interest rates ranging from 2.875% to 4%. The Bonds were issued to currently refund and redeem the Capital Improvement Revenue Bonds, Series 2012.

In addition, subsequent to fiscal year end, the District issued $7,775 of Series 2022 Capital Improvement Revenue Bonds (Maple Ridge Phase 5 Project), consisting of multiple term bonds with due dates ranging from May 1, 2027 through May 1, 2052 and fixed interest rates ranging from 3% to 4%. The Bonds were issued to finance the construction and acquisition of infrastructure improvements.

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – GENERAL FUND FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021

		Budget Amounts	 Original	Final

Actual Amounts

Variance with Final Budget - Positive (Negative)

REVENUES		
Assessments	$	1,169,820	$	1,170,546	$	1,202,932	$	32,386	
Developer contributions	1,289,378	1,819,170	1,719,171	(99,999)	
Interest	-	515	515	-	
Miscellaneous	-	1,813	1,813	-	
Total revenues	2,459,198	2,992,044	2,924,431	(67,613)	

EXPENDITURES
Current:
General government	299,198	315,572	309,560	6,012	
Maintenance and operations	2,160,000	2,772,264	2,605,414	166,850	
Total expenditures	2,459,198	3,087,836	2,914,974	172,862	

Excess (deficiency) of revenues over (under) expenditures	

-	

(95,792)	

9,457	

105,249	
OTHER FINANCING SOURCES
Use of Fund Balance	
-	
95,792	
-	
(95,792)	
Total other financing sources (uses)	-	95,792	-	(95,792)	

Net change in fund balances	
 $	-	$	-		
9,457	
$	
9,457	

Fund balance - beginning		373,502 

Fund balance - ending	 $	382,959 

See notes to required supplementary information

NOTES TO REQUIRED SUPPLEMENTARY INFORMATION

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

The legal level of budgetary control, the level at which expenditures may not exceed budget, is in the aggregate. Any budget amendments that increase the aggregate budgeted appropriations must be approved by the Board of Supervisors. The general fund budget for the fiscal year ended September 30, 2021 was amended to increase revenues by $532,846 and increase appropriations by $628,638. Actual general fund expenditures did not exceed appropriations for the fiscal year ended September 30, 2021.

OTHER INFORMATION – DATA ELEMENTS REQUIRED BY FL STATUTE 218.39(3)(C) UNAUDITED

Element	Comments	
Number of district employees compensated at 9/30/2021	0	
Number of independent contractors compensated in September 2021	2	
Employee compensation for FYE 9/30/2021 (paid/accrued)	Not applicable	
Independent contractor compensation for FYE 9/30/2021	$75,125	
Construction projects to begin on or after October 1; (>$65K)	Not applicable	
Budget variance report	See Variance Report in report for details	
Ad Valorem taxes;	Not applicable	
Millage rate FYE 9/30/2021	Not applicable	
Ad valorem taxes collected FYE 9/30/2021	Not applicable	
Outstanding Bonds:	Not applicable	
		
Non ad valorem special assessments;		
Special assessment rate FYE 9/30/2021	Ranges From $48.54 To $2,264.60 Per Unit	
Special assessments collected FYE 9/30/2021	$4,807,338	
Outstanding Bonds:		
Series 2012, due May 1, 2022	$25,255,000 - See Long Term Liabilities Note
in report for details	
Series 2015, due May 1, 2045	$2,205,000 - See Long Term Liabilities Note in
report for details	
Series 2016 BAN, due November 1, 2021	$11,085,000- See Long Term Liabilities Note
in report for details	
Series 2016, due May 1, 2047	$3,180,000- See Long Term Liabilities Note in
report for details	
Series 2018, due May 1, 2049	$3,655,000 - See Long Term Liabilities Note in
report for details	
Series 2019, due May 1, 2038.	$18,550,000 - See Long Term Liabilities Note
in report for details	
Series 2020, due May 1, 2052	$3,440,000 - See Long Term Liabilities Note in
report for details	
Series 2021 BAN, due May 1, 2026	$15,640,000 - See Long Term Liabilities Note
in report for details	
Series 2021 Master, due May 1, 2052	$11,610,000 - See Long Term Liabilities Note
in report for details	
Series 2021 National, due May 1, 2051	$11,340,000 - See Long Term Liabilities Note
in report for details	

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

INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

To the Board of Supervisors
Ave Maria Stewardship Community District Collier County, Florida

We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities and each major fund of Ave Maria Stewardship Community District, Collier County, Florida (“District”) as of and for the fiscal year ended September 30, 2021, and the related notes to the financial statements, which collectively comprise the District’s basic financial statements, and have issued our opinion thereon dated June 30, 2022.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the District’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the District’s internal control. Accordingly, we do not express an opinion on the effectiveness of the District’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the District’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

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.

June 30, 2022

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

To the Board of Supervisors
Ave Maria Stewardship Community District Collier County, Florida

We have examined Ave Maria Stewardship Community District, Collier County, Florida’s (“District”) compliance with the requirements of Section 218.415, Florida Statutes, in accordance with Rule 10.556(10) of the Auditor General of the State of Florida during the fiscal year ended September 30, 2021. Management is responsible for District’s compliance with those requirements. Our responsibility is to express an opinion on District’s compliance based on our examination.

Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether the District complied, in all material respects, with the specified requirements referenced in Section 218.415, Florida Statutes. An examination involves performing procedures to obtain evidence about whether the District complied with the specified requirements. The nature, timing, and extent of the procedures selected depend on our judgment, including an assessment of the risks of material noncompliance, whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion. Our examination does not provide a legal determination on the District’s compliance with specified requirements.

In our opinion, the District complied, in all material respects, with the aforementioned requirements for the fiscal year ended September 30, 2021.

This report is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, management, and the Board of Supervisors of Ave Maria Stewardship Community District, Collier County, Florida and is not intended to be and should not be used by anyone other than these specified parties.

June 30, 2022

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

To the Board of Supervisors
Ave Maria Stewardship Community District Collier County, Florida

Report on the Financial Statements

We have audited the accompanying basic financial statements of Ave Maria Stewardship Community District, Collier County, Florida ("District") as of and for the fiscal year ended September 30, 2021, and have issued our report thereon dated June 30, 2022.

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 Reporting Requirements

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; and Independent Auditor’s Report on an examination conducted in accordance with AICPA Professional Standards, AT-C Section 315, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports, which are dated June 30, 2022, should be considered in conjunction with this management letter.

Purpose of this Letter

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

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

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

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

June 30, 2022

REPORT TO MANAGEMENT

CURRENT YEAR FINDINGS AND RECOMMENDATIONS

None

PRIOR YEAR FINDINGS AND RECOMMENDATIONS

None

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

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

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

There were no significant findings and recommendations made in the preceding annual financial audit report for the fiscal year ended September 30, 2020.

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

There were no such matters discovered by, or that came to the attention of, the auditor, to be reported for the fiscal year ended September 30, 2021.

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

There were no such matters discovered by, or that came to the attention of, the auditor, to be reported, for the fiscal year ended September 30, 2021.

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

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

We applied financial condition assessment procedures and no deteriorating financial conditions were noted as of September 30, 2021. It is management’s responsibility to monitor financial condition, and our financial condition assessment was based in part on representations made by management and the review of financial information provided by same.

Management has provided the specific information required by Section 218.39(3)(c) in the Other Information section of the financial statements on page 32.