Avenir Community Development District

FINANCIAL STATEMENTS

September 30, 2022

Table of Contents

Page

REPORT
Independent Auditors' Report ..............................................................................................	1
FINANCIAL STATEMENTS
Management’s Discussion and Analysis (required supplemental information) ...................	4
Basic Financial Statements Government‐Wide Financial Statements
Statement of Net Position ..............................................................................................	9
Statement of Activities ...................................................................................................	10
Fund Financial Statements
Balance Sheet – Governmental Funds............................................................................	11
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net
Position ...........................................................................................................................	12
Statement of Revenue, Expenditures and Changes in Fund Balances –
Governmental Funds ......................................................................................................	13
Reconciliation of the Statement of Revenue, Expenditures and Changes in
Fund Balances of Governmental Funds to the Statement of Activities..........................	14
Notes to Financial Statements ..............................................................................................	15
Required Supplemental Information (Other than MD&A)
Budget to Actual Comparison Schedule ‐ General Fund....................................................	25
Independent Auditors’ 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 ...........................................................	26
Management Letter ..............................................................................................................	28
Independent Accountants’ Report on Compliance with Section 218.415, Florida Statutes.	31

INDEPENDENT AUDITORS' REPORT

To the Board of Supervisors
Avenir Community Development District Palm Beach County, Florida

Opinions

We have audited the accompanying financial statements of the governmental activities and each major fund of Avenir Community Development District (hereinafter referred to as “District”), as of and for the year ended September 30, 2022, and the related notes to the financial statements, which collectively comprise the District’s basic financial statements as listed in the table of contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities and each major fund of the District as of September 30, 2022, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions

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. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the District, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Responsibilities of Management 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, and for 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.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the District’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

Auditors’ Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we:

Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Obtain an understanding of internal control relevant to the audit 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 District’s internal control. Accordingly, no such opinion is expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the District’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control‐related matters that we identified during the audit.

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and budget to actual comparison information on pages 4 ‐ 8 and 25 be presented to supplement the basic financial statements. Such information is the responsibility of management and, 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 Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated September 29, 2023, on our consideration of the District's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the 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.

CARR, RIGGS & INGRAM, LLC

Miramar Beach, Florida September 29, 2023

Management’s Discussion And Analysis

Our discussion and analysis of the Avenir Community Development District’s financial performance provides an overview of the District’s financial activities for the fiscal year ended September 30, 2022. Please read it in conjunction with the District’s financial statements, which begin on page 9.

FINANCIAL HIGHLIGHTS

At September 30, 2022, the assets of the District exceeded its liabilities by approximately $28 million.

During the fiscal year ended September 30, 2022, the District paid in full the Series 2020 Bond Anticipation Notes.

During the fiscal year ended September 30, 2022, the District incurred capital outlay expenditures totaling approximately $33.3 million, incurred approximately $8.2 million of interest expenditures and made principal payments totaling approximately $19.3 million.

USING THE ANNUAL REPORT

This annual report consists of a series of financial statements. The Statement of Net Position and the Statement of Activities on pages 9 – 10 provide information about the activities of the District as a whole and present a longer‐term view of the District’s finances. Fund financial statements start on page
11. For governmental activities, these statements tell how these services were financed in the short‐ term as well as what remains for future spending. Fund financial statements also report the District’s operations in more detail than the government‐wide statements by providing information about the District’s most significant funds.

Reporting the District as a Whole

Our analysis of the District as a whole begins on page 5. One of the most important questions asked about the District’s finances is, “Is the District as a whole better off or worse off as a result of the year’s activities?” The Statement of Net Position and the Statement of Activities report information about the District as a whole and about its activities in a way that helps answer this question. These statements include all assets and liabilities using the accrual basis of accounting, which is similar to the accounting used by most private‐sector companies. All of the current year’s revenues and expenses are taken into account regardless of when cash is received or paid.

These two statements report the District’s net position and related changes during the current year. You can think of the District’s net position – the difference between assets and liabilities – as one way to measure the District’s financial health, or financial position. Over time, increases or decreases in the District’s net position is one indicator of whether its financial health is improving or deteriorating. You will need to consider other nonfinancial factors; however, such as changes in the District’s assessment base and the condition of the District’s infrastructure, to assess the overall health of the District.

Reporting the District’s Most Significant Funds

Our analysis of the District’s major funds begins on page 6. The fund financial statements begin on page 11 and provide detailed information about the most significant funds – not the District as a whole. Some funds are required to be established by State law and by bond covenants. All of the District’s funds are governmental fund‐types.

Governmental funds – All of the District’s basic services are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at year‐end that are available for spending. The governmental fund statements provide a detailed short‐ term view of the District’s general government operations and the basic services it provides. Governmental fund information helps you determine whether there are more or fewer financial resources that can be spent in the near future to finance the District’s programs.

THE DISTRICT AS A WHOLE

The following table reflects the condensed Statement of Net Position and is compared to the prior year.

September 30,	2022	2021	Change	
Assets
Current and other assets	
$	34,835,378	
$	86,223,176	
$  (51,387,798)	
Capital assets, net	180,423,382	147,086,619	33,336,763	
Total assets	$	215,258,760	$	233,309,795	$	(18,051,035)	
Liabilities
Current liabilities	$	7,721,850	$	12,135,213	$	(4,413,363)	
Other liabilities	179,484,938	198,593,467	(19,108,529)	
Total liabilities	187,206,788	210,728,680	(23,521,892)	
Net position				
Net investment in capital assets Restricted for:
Debt Service		27,261,566

432,202		22,707,240

‐		4,554,326

432,202	
Capital projects		184,948		24,298		160,650	
Unrestricted		173,256		(150,423)		323,679	
Total net position		28,051,972		22,581,115		5,470,857	
Total liabilities and net position	$	215,258,760	$	233,309,795	$	(18,051,035)	

For more detailed information, see the accompanying Statement of Net Position.

During the fiscal year ended September 30, 2022, total assets and liabilities decreased from the prior year by approximately $18 million and $23.5 million, respectively. The decrease in assets and liabilities is primarily due to the repayment of the Series 2020 Bond Anticipation Notes as well as certain contract and retainage balances associated with infrastructure construction projects.

The following schedule compares the Statement of Activities for the current and previous fiscal year.

For the year ended September 30,	2022	2021	Change	
Revenue:
Program revenue:
Charges for services	

$	5,689,418	

$	3,052,409	

$	2,637,009	
Grants and contributions	12,343,654	16,293,153	(3,949,499)	
General revenue:
Interest and other revenue	
988	
434	
554	
Total revenue	18,034,060	19,345,996	(1,311,936)	
Expenses:
General government	
429,523	
155,708	
273,815	
Maintenance and operations	2,657,095	1,533,828	1,123,267	
Bond issue costs	‐	2,008,975	(2,008,975)	
Interest	9,476,585	5,920,369	3,556,216	
Total expenses	12,563,203	9,618,880	2,944,323	
Change in net position	5,470,857	9,727,116	(4,256,259)	
Net position, beginning of year	22,581,115	12,853,999	9,727,116	
Net position, end of year	$	28,051,972	$	22,581,115	$	5,470,857	

For more detailed information, see the accompanying Statement of Activities.

Revenues decreased from the prior year by approximately $1.3 million. The decrease in revenue is primarily due to fewer contributions made by the developer in connection with certain capital projects. Expenses increased over the prior year by approximately $2.9 million. The increase in expenses is primarily due to interest expense related to Series 2020 BAN and Series 2021 Bonds. The overall result was a $5.5 million increase in net position for fiscal year 2022.

THE DISTRICT’S FUNDS

As the District completed the year, its governmental funds (as presented in the balance sheet on page 11) reported a combined fund balance of approximately $31 million, which is a decrease from last year’s balance that totaled approximately $76.8 million. Significant transactions are discussed on the following page.

During the fiscal year ended September 30, 2022, the District paid in full the Series 2020 Bond Anticipation Notes.

During the fiscal year ended September 30, 2022, the District incurred capital outlay expenditures totaling approximately $33.3 million, incurred approximately $8.2 million of interest expenditures and made principal payments totaling approximately $19.3 million.

The overall decrease in fund balance for the year ended September 30, 2022 totaled approximately $46 million.

GOVERNMENTAL FUNDS BUDGETARY HIGHLIGHTS

An Operating budget was established by the governing board for the District pursuant to the requirements of Florida Statutes. The budget to actual comparison for the general fund, including the original budget and final adopted budget, is shown at page 25.

The District experienced a favorable variance in revenue as compared to the final budget in the amount of $3.4 million. Conversely, the District experienced an unfavorable variance in expenditures as compared to the final budget in the amount of $3.0 million. The variance in both revenue and expenditures relate to capital outlay and the related effect on landowner contributions necessary to fund the capital outlay.

CAPITAL ASSET AND DEBT ADMINISTRATION

Capital Assets

At September 30, 2022, the District had approximately $180 million invested in capital assets. This amount represents an increase of approximately $33 million from the 2021 fiscal year.

A listing of capital assets by major category for the current and prior year follows:

September 30,	2022	2021	Change

Capital assets not being depreciated

$ 180,423,382

$ 147,086,619	$

33,336,763

More information about the District’s capital assets is presented in Note 4 to the financial statements.

Debt

At September 30, 2022, the District had approximately $184 million of outstanding debt. This amount represents a net decrease of approximately $19 million from the 2021 fiscal year.

A listing of debt amounts outstanding for the current and prior year is as follows:

September 30,	2022	2021	Change	
Special Assessment Bonds:				
Series 2018‐1	$	29,490,000	$	30,005,000	$	(515,000)	
Series 2018‐2 tax‐exempt	815,000	1,235,000	(420,000)	
Series 2018‐2 taxable	3,170,000	4,825,000	(1,655,000)	
Series 2018‐3	11,095,000	11,260,000	(165,000)	
Series 2019	15,210,000	15,430,000	(220,000)	
Series 2019B tax‐exempt	4,070,000	4,300,000	(230,000)	
Series 2019B taxable	2,085,000	2,200,000	(115,000)	
Series 2020IF	22,010,000	22,600,000	(590,000)	
Series 2020BAN	‐	15,400,000	(15,400,000)	
Series 2021A‐1	27,305,000	27,305,000	‐	
Series 2021A‐2	39,305,000	39,305,000	‐	
Series 2021B	29,160,000	29,160,000	‐	
	
$ 183,715,000	
$ 203,025,000	
$  (19,310,000)	

More information about the District’s long‐term debt is presented in Note 5 to the financial statements.

FUTURE FINANCIAL FACTORS

Avenir Community Development District is an independent special district that operates under the provisions of Chapter 190, Florida Statutes. The District operates under an elected Board of Supervisors, which establishes policy and sets assessment rates. Assessment rates for fiscal year 2023 were established to provide for the operations of the District as well as the necessary debt service requirements.

CONTACTING THE DISTRICT’S FINANCIAL MANAGEMENT

This financial report is designed to provide a general overview of the District’s finances. If you have questions about this report or need additional financial information, contact the Avenir Community Development District’s management company at 2501A Burns Road, Palm Beach Gardens, Florida, 33410.

Basic Financial Statements

September 30,	2022	
	Governmental	
	Activities	
Assets
Cash and cash equivalents	
$	582,395	
Investments	34,020,690	
Due from landowner	231,738	
Prepaid expenses	555	
Capital assets:
Not being depreciated	
180,423,382	

Total assets	
215,258,760	

Liabilities
Accounts payable	

491,870	
Contracts payable	1,858,481	
Retainage payable	1,560,236	
Accrued interest payable	3,811,263	
Non‐current liabilities:
Due within one year	
2,035,000	
Due in more than one year	177,449,938	

Total liabilities	
187,206,788	

Net position
Net investment in capital assets	

27,261,566	
Restricted for:
Debt service	
432,202	
Capital projects	184,948	
Unrestricted	173,256	

Total net position	$	28,051,972

The accompanying notes are an integral part of these financial statements.

Avenir Community Development District
Statement of Activities

For the year ended September 30,

2022

Program Revenue

Net (Expense) Revenue and Changes in Net Position

Operating	Capital
Charges for	Grants and	Grants and	Governmental
Functions/Programs	Expenses	Services	Contributions	Contributions	Activities Primary government:
Governmental activities:
General government	$	(429,523)	$	470,587	$	114,827	$	‐	$	155,891	
Maintenance and operations	(2,657,095)	2,911,124	710,335	‐	964,364	
Interest	(9,476,585)	2,307,707	11,340,162	178,330	4,349,614	

Total governmental activities	
$	
(12,563,203)	
$	
5,689,418	
$	
12,165,324	
$	
178,330	
5,469,869	

General revenues
Interest	988	
Total general revenue	988	

Change in net position	
5,470,857	
Net position ‐ beginning of year	22,581,115	

Net position ‐ end of year	
$	28,051,972	

The accompanying notes are an integral part of these financial statements.
‐ 10 ‐

September 30,		2022		
			Total	
			Governmental	
	General	Debt Service	Capital Projects	Funds	
Assets				
Cash and cash equivalents	$	582,395	$	‐	$	‐	$	582,395	
Investments	‐	7,685,225	26,335,465	34,020,690	
Due from landowner	82,176	149,562	‐	231,738	
Prepaid expenditures	555	‐	‐	555	

Total assets	
$	665,126	
$	7,834,787	$	26,335,465	
$	34,835,378	

Liabilities and Fund Balances				
Liabilities				
Accounts payable	$	491,870	$	‐	$	‐	$	491,870	
Contracts payable	‐	‐	3,418,717	3,418,717	
Total liabilities	491,870	‐	3,418,717	3,910,587	

Fund balances

Nonspendable		555		‐		‐		555	
Restricted for debt service		‐		7,834,787		‐		7,834,787	
Restricted for capital projects		‐		‐		22,916,748		22,916,748	
Unassigned		172,701		‐		‐		172,701	
Total fund balances		173,256		7,834,787		22,916,748		30,924,791	

Total liabilities and fund balances	
$	
665,126	
$	
7,834,787	
$	
26,335,465	
$	
34,835,378	

September 30,	2022	

Total fund balances, governmental funds	
$	30,924,791	
Capital assets used in governmental activities are not financial resources and therefore are not reported in the fund financial statements.	
180,423,382	
Liabilities not due and payable from current resources, including accrued interest, are not reported in the fund financial statements.	
(183,296,201)	

Total net position (deficit) ‐ governmental activities	
$	28,051,972	

For the year ended September 30,

Revenue

2022

General	Debt Service	Capital Projects

Total Governmental Funds

Assessment revenue	$	2,291,591	$	3,397,827	$	‐	$	5,689,418	
Landowner contributions	3,981,031	2,799,191	‐	6,780,222	
Prepayment revenue	‐	1,742,436	‐	1,742,436	
Improvement fees	‐	3,642,666	‐	3,642,666	
Interest and other revenue	988	25,712	152,618	179,318	
Total revenue	6,273,610	11,607,832	152,618	18,034,060	

Expenditures
Current:

General government	429,523	‐	‐	429,523	
Maintenance and operations
Debt service:	2,657,095	‐	‐	2,657,095	
Principal		19,310,000	‐	19,310,000	
Interest	‐	8,205,972	‐	8,205,972	
Capital outlay	3,156,038	‐	30,180,725	33,336,763	
Total expenditures	6,242,656	27,515,972	30,180,725	63,939,353	

Excess (deficit) of revenue over					
expenditures	30,954	(15,908,140)	(30,028,107)	(45,905,293)	

Other Financing Sources (Uses)
Transfers in (out)	

‐	

623	

(623)	

‐	
Total other financing sources (uses)	‐	623	(623)	‐	

Net change in fund balances	
30,954	
(15,907,517)	
(30,028,730)	
(45,905,293)	
Fund balances, beginning of year	142,302	23,742,304	52,945,478	76,830,084	

Fund balances, end of year	
$	173,256	
$	7,834,787	
$	22,916,748	
$	30,924,791	

Balances of Governmental Funds to the Statement of Activities

For the year ended September 30,	2022	

Net change in fund balances ‐ governmental funds	
$	(45,905,293)	
Capital outlay, reported as expenditures in the governmental funds, is shown as capital assets on the Statement of Net Position.	
33,336,763	
Governmental funds report principal payments on bonds as expenditures when		
debt is paid, whereas these payments are eliminated in the Statement of		
Activities and recognized as a reduction in bonds payable in the Statement of Net		
Position.	19,310,000	
The  amortizataion  of  the  discount  on  bonds  is  not  recognized  in  the		
governmental fund statements but is reported as an expense in the Statement of Activities.	
(201,471)	
The change in accrued interest between the current and prior year is recorded on the Statement of Activities but not on the fund financial statements.	
(1,069,142)	

Change in net position of governmental activities	
$	5,470,857	

NOTE 1: NATURE OF ORGANIZATION

The Avenir Community Development District (the “District”) was established on January 5, 2017 pursuant to the Uniform Community Development District Act of 1980, otherwise known as Chapter 190, Florida Statutes, by City of Palm Beach Gardens Ordinance No. 17, 2016. The Act provides, among other things, the power to manage basic services for community development, power to borrow money and issue bonds, and to levy and assess non‐ad valorem assessments for the financing and delivery of capital infrastructure.

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

The District is governed by a Board of Supervisors (“Board”), which is comprised of five members. The Supervisors are elected by the owners of the property within the District. At September 30, 2022, all of the Supervisors are affiliated with the landowner/developer of the community, Avenir Holdings, LLC. The Board of Supervisors of the District exercises all powers granted to the District pursuant to Chapter 190, Florida Statutes.

The Board has the final responsibility for:
Allocating and levying special 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.

In evaluating how to define the government, for financial reporting purposes, management has considered all potential component units. The decision to include or exclude a potential component unit in the reporting entity was made by applying the criteria set forth by Generally Accepted Accounting Principles (GAAP) as defined by the Governmental Accounting Standards Board (GASB). Based on the foregoing criteria, no potential component units were found.

NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accounting policies of the District conform to GAAP as applicable to governments in accordance with those promulgated by GASB. The following is a summary of the more significant 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 the non‐fiduciary activities of the primary government.

Governmental activities, which normally are supported by assessments, are reported separately from business‐type activities, which rely to a significant extent on fees and charges for support. The business‐ type activities are reported separately in government‐wide financial statements; however, at September 30, 2022, the District did not have any significant business‐type activities. Therefore, no business‐type activities are reported. Assessments and other items not properly included as program revenues (i.e., charges to customers or applicants who purchase, use, or directly benefit from goods or services) are reported as general revenues.

Separate financial statements are provided for governmental funds. Major individual governmental funds are reported as separate columns in the fund financial statements.

Measurement Focus, Basis of Accounting and Basis of Presentation

The government‐wide financial statements 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 the related cash flows. Assessments are recognized as revenues in the year for which they are levied. Grants and other 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 District considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures are recorded only when payment is due.

Assessments, including debt service assessments along with operation and maintenance assessments, are non‐ad valorem special assessments imposed on all lands located within the District and benefited by the District’s activities. Assessments are levied and certified for collection by the District prior to the start of the fiscal year which begins October 1st and ends on September 30th. Operation and maintenance special assessments are imposed upon all benefited lands located in the District. Debt service special assessments are imposed upon certain lots and lands as described in each resolution imposing the special assessment for each series of bonds issued by the District. Certain debt service assessments are collected upon the closing of those lots subject to short term debt and are used to prepay a portion of the bonds outstanding.

Landowner contributions, prepayment revenue, improvement fees and interest associated with the current fiscal period are all considered to be susceptible to accrual and have been recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable and available only when cash is received by the District.

The District reports the following major governmental funds:

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

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 – The Capital Projects Fund is used to account for the financial resources to be used in the acquisition or construction of major infrastructure within the District.

For the year ended September 30, 2022, the District does not report any proprietary funds.

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 District’s policy to use restricted resources first, then unrestricted resources as they are needed. When committed, assigned, or unassigned resources are available for use in the governmental fund financial statements, it is the government’s policy to use committed resources first, followed by assigned resources, then unassigned resources as needed.

Cash, Deposits and Investments

The District maintains deposits with "Qualified Public Depositories" as defined in Chapter 280, Florida Statutes. All Qualified Public Depositories must place with the Treasurer of the State of Florida securities in accordance with collateral requirements determined by the State’s Chief Financial Officer. In the event of default by a Qualified Public Depository, the State Treasurer will pay public depositors all losses. Losses in excess of insurance and collateral will be paid through assessments between all Qualified Public Depositories.

Under this method, all the District's deposits are fully insured or collateralized at the highest level of security as defined by GASB, Statement Number 40, Deposits and Investment Disclosures (An Amendment of GASB, Statement Number 3).

The District is authorized to invest in financial instruments as established by Section 218.415, Florida Statutes. The authorized investments include among others direct obligations of the U.S. Treasury; the Local Government Surplus Trust Funds as created by Section 218.405, Florida Statutes; SEC registered money market funds with the highest credit quality rating from a nationally recognized rating agency; and interest‐bearing time deposits or savings accounts in authorized financial institutions.

Capital Assets

Capital assets, which include primarily infrastructure assets (e.g., roads, sidewalks, water management systems and similar items), are reported in the governmental activities column in the government‐wide financial statements. Capital assets are defined by the District as assets with an initial/individual cost of more than $5,000 and an estimated useful life in excess of two years. Such assets are recorded at historical cost and estimated historical cost if purchased or constructed. Donated assets are recorded at estimated fair market 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 asset lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed.

Property, plant and equipment of the primary government will be depreciated using the straight‐line method over the estimated useful lives. Estimated useful lives for financial reporting purposes are as follows:
	Asset	Years	
Infrastructure	30
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.

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 over the life of the bonds using the straight‐line or effective interest method. Bonds payable are reported net of these premiums or discounts. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as current period expenses.

In the fund financial statements, governmental fund types recognize bond premiums and discounts during the current period. The face amount of the 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.

Estimates

The preparation of U.S. GAAP financial statements require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and changes therein, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

Deferred Outflows/Inflows of Resources

In addition to assets, the Statement of Financial Position and Balance Sheet – Governmental Funds includes 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. The District does not have any of this type of item at September 30, 2022.

In addition to liabilities, the Statement of Financial Position and Balance Sheet – Governmental Funds 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. The District does not have any of this type of item at September 30, 2022.

Fund Equity

Net position in the government‐wide financial statements represents the difference between assets and deferred outflows of resources and liabilities and deferred inflows of resources and is categorized as net investment in capital assets, restricted or unrestricted. Net investment in capital assets represents assets related to infrastructure and property, plant and equipment, net of any related debt. Restricted net position represents the assets restricted by the District’s bond covenants.

Governmental fund equity is classified as fund balance. Fund balance is further classified as nonspendable, restricted, committed, assigned, or unassigned. Nonspendable fund balance cannot be spent because of its form. Restricted fund balance has limitations imposed by creditors, grantors, or contributors or by enabling legislation or constitutional provisions. Committed fund balance is a limitation imposed by the District board through approval of resolutions. Assigned fund balance is a limitation imposed by a designee of the District board. Unassigned fund balance in the General Fund is the net resources in excess of what can be properly classified in one of the above four categories. Negative unassigned fund balance in other governmental funds represents excess expenditures incurred over the amounts restricted, committed, or assigned to those purposes.

Budgets

The District is required to establish a budgetary system and an approved annual budget. Annual budgets are legally adopted on a basis consistent with GAAP for the General Fund. Any revision to the budget must be approved by the District Board. The budgets are compared to actual expenditures. In instances where budget appropriations and estimated revenues have been revised during the year, budget data presented in the financial statements represent final authorization amounts.

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.
A public hearing is conducted to obtain comments.
Prior to October 1, the budget is legally adopted by the District Board.
All budget changes must be approved by the District Board.
Budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America.

Subsequent events

Management has evaluated subsequent events through the date that the financial statements were available to be issued, September 29, 2023. See Note 10 for relevant disclosure. No subsequent events occurring after this date have been evaluated for inclusion in these financial statements.

NOTE 3: INVESTMENTS

All investments held at September 30, 2022 consist of money market funds in which shares are owned in the fund rather than the underlying investments. In accordance with GASB 72, Fair Value Measurement and Application, there amounts are reported at amortized cost.

The following is a summary of the District's investments:

September 30,	
2022	
Credit Risk	Weighted Avg
Maturities	

Short‐term Money Market Funds	
$	34,020,690	
S&P AAAm	
29 days	

Custodial credit risk ‐ For an investment, custodial credit risk is the risk that the District will not be able to recover the value of the investments or collateral securities that are in the possession of an outside party. The District has no formal policy for custodial risk. At September 30, 2022, none of the investments listed above are exposed to custodial credit risk because their existence is not evidenced by securities that exist in physical or book entry form.

Concentration risk – The District’s investment policy requires diversification, but does not specify limits on types of investments.

Interest rate risk – The District does not have a formal policy for addressing interest rate risk; however, investments are made with discretion, to seek reasonable returns, preserve capital, and in general, avoid speculative investments. The District manages its exposure to declines in fair values from interest rate changes by reviewing the portfolio on an ongoing basis for changes in effective yield amounts.

Avenir Community Development District Notes to Financial Statements

NOTE 4: CAPITAL ASSETS

The following is a summary of changes in the capital assets for the year ended September 30, 2022:

	Beginning
Balance	
Additions	Transfers and
Conveyances	
Ending Balance	
Governmental Activities:
Capital assets not being depreciated
Land	

$	54,128,833	

$	‐	

$	

‐  $	54,128,833	
Infrastructure under construction	92,957,786	33,336,763		‐	126,294,549	

Governmental activities capital assets, net	
$  147,086,619	
$	33,336,763	
$	
‐  $  180,423,382	

NOTE 5: BONDS PAYABLE					

In May 2018, the District issued $66,210,000 of Series 2018 Special Assessment Bonds, consisting of series 2018‐1 bonds, series 2018‐2 tax‐exempt bonds, series 2018‐2 taxable bonds, and series 2018‐3 bonds with interest rates of 5.50%, 5.85%, 7.0%, and 5.75%, respectively. The bonds were issued to finance the acquisition and construction of Assessment Area One and the Clubhouse. Interest is paid semiannually on each May 1 and November 1. Principal payments on the series 2018‐1 and 2018‐2 taxable bonds are made serially commencing on May 1, 2020 through May 1, 2049. Principal payments on the series 2018‐2 tax‐exempt and 2018‐3 bonds are due in full on May 1, 2029.

In April 2019, the District issued $15,700,000 of Series 2019 Special Assessment Bonds with an interest rate of 5.60%. The bonds were issued to finance the acquisition and construction of Assessment Area One Parcels A‐6 through A‐9. Interest is paid semiannually on each May 1 and November 1. Principal payments on the series 2019 bonds are made serially commencing on May 1, 2021 through May 1, 2050.

In December 2019, the District issued $4,300,000 of Series 2019B Special Assessment Bonds and
$2,200,000 of Series 2019B Taxable Special Assessment Bonds with interest rates of 5.250% and 6.875%, respectively. The bonds were issued to finance the acquisition and construction of the Parcel A‐ 4 Project. Interest is paid semiannually on each May 1 and November 1. Principal payments are due in full on May 1, 2029.

In July 2020, the District issued $22,600,000 of Series 2020 Impact Fee Credit Revenue Bonds with an interest rate of 4.750%. The bonds were issued to finance the acquisition and construction of certain public infrastructure relating to certain offsite and on‐site roadways. The District does not impose or collect any impact fees. Those fees are collected by the County and City and are remitted to the District as improvement fees. Interest is paid semiannually on each May 1 and November 1. Principal payments are due in full on November 1, 2050.

In November 2020, the District issued $15,400,000 of Series 2020 Special Assessment Notes with an interest rate of 4.500%. The notes were issued to finance the acquisition and construction of Assessment Area Two ‐ Phase One Project. Principal and interest payments were paid in full on November 1, 2021.

In September 2021, the District issued $95,770,000 of Series 2021 Special Assessment Bonds, consisting of series 2021A‐1 bonds, series 2021A‐2 bonds, and series 2021B bonds with interest rates of 2.25%‐ 3.4%, 5.125%, and 5.125%, respectively. The bonds were issued to finance the acquisition and construction of infrastructure within the District. Interest is paid semiannually on each May 1 and November 1. Principal payments on the series 2021A‐1 and 2021A‐2 bonds are made serially commencing on May 1, 2023 through May 1, 2052. Principal on the series 2021B bonds is due in full on May 1, 2041.

The Bond Indentures have certain restrictions and requirements relating principally to the use of proceeds to pay for the infrastructure improvements and the procedures to be followed by the District on assessments to property owners. The District agreed to levy special assessments in annual amounts adequate to provide payment of debt service. The District is in compliance with the requirements of the Bond Indentures.

The Bond Indentures requires that the District maintain adequate funds in reserve accounts to meet the debt service reserve requirements as defined in the Indenture. The requirements have been met for the fiscal year ended September 30, 2022.

Long‐term liability activity for the year ended September 30, 2022, was as follows:

	Beginning
Balance		
Additions		
Reductions	
Ending Balance	Due Within
One Year	
Governmental Activities								
Bonds Payable:								
Series 2018‐1	$	30,005,000	$		‐	$	(515,000)	$	29,490,000	$	490,000	
Series 2018‐2								
tax‐exempt	1,235,000			‐	(420,000)	815,000	‐	
Series 2018‐2 taxable	4,825,000			‐	(1,655,000)	3,170,000	‐	
Series 2018‐3	11,260,000			‐	(165,000)	11,095,000	175,000	
Series 2019	15,430,000			‐	(220,000)	15,210,000	230,000	
Series 2019B								
tax‐exempt	4,300,000			‐	(230,000)	4,070,000	‐	
Series 2019B taxable	2,200,000			‐	(115,000)	2,085,000	‐	
Series 2020IF	22,600,000			‐	(590,000)	22,010,000	‐	
Series 2020BAN	15,400,000			‐	(15,400,000)	‐	‐	
Series 2021A‐1	27,305,000			‐	‐	27,305,000	575,000	
Series 2021A‐2	39,305,000			‐	‐	39,305,000	565,000	
Series 2021B	29,160,000			‐	‐	29,160,000	‐	
	
$  203,025,000	
$		
‐	
$	(19,310,000)	
$	183,715,000	
$	2,035,000	

A September 30, 2022, the scheduled debt service requirements on long‐term debt were as follows:

Year Ending September 30,	
Principal	
Interest	Total Debt
Service	

2023	
$	2,035,000	
$	9,147,028	
$	11,182,028	
2024	2,135,000	9,055,243	11,190,243	
2025	2,235,000	8,958,516	11,193,516	
2026	2,340,000	8,856,837	11,196,837	
2027	2,445,000	8,749,800	11,194,800	
2028 ‐ 2032	24,305,000	40,104,810	64,409,810	
2033 ‐ 2037	18,020,000	34,825,943	52,845,943	
2038 ‐ 2042	52,260,000	28,446,861	80,706,861	
2043 ‐ 2047	29,705,000	16,213,269	45,918,269	
2048 ‐ 2052	48,235,000	6,926,643	55,161,643	
	
$	183,715,000	
$	171,284,950	
$	354,999,950	

The balance of bonds payable at September 30, 2022 is summarized as follows:		
September 30,	2022	

Bond principal balance	
$	183,715,000	
Less unamortized bond discount	(4,230,062)	

Net bonds payable	
$	179,484,938	

NOTE 6: 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 maintains commercial insurance coverage to mitigate the risk of loss. Coverage may not extend to all situations. Management believes such coverage is sufficient to preclude any significant uninsured losses to the District. Settled claims have not exceeded this commercial coverage in the previous three years.

NOTE 7: MANAGEMENT COMPANY

The District has contracted with a management company to perform management advisory services, which include financial and accounting advisory services. Certain employees of the management company also serve as officers (Board appointed non‐voting positions) of the District. Under the agreement, the District compensates the management company for management, accounting, financial reporting, and other administrative costs.

NOTE 8: LANDOWNER TRANSACTIONS

A significant portion of the District’s activity is dependent upon the continued involvement of the landowner/developer, Avenir Holdings, LLC, the loss of which could have a material adverse effect on the District’s operations.

The landowner/developer has agreed to fund the operations of the District. For the year ended September 30, 2022, the landowner/developer contributed $825,162 and $3,155,869, respectively, to the General Fund to fund maintenance and operations and infrastructure construction. In addition, the landowner/developer contributed $2,799,191 to the Debt Service Fund. At September 30, 2022, the landowner/developer owed the District $231,738, which is recorded as Due from landowner on the accompanying Statement of Net Position and Balance Sheet – Governmental Funds.

During the fiscal year ended September 30, 2022, the District reimbursed the landowner/developer approximately $6.8 million for infrastructure costs paid by the landowner/developer on behalf of the District.

NOTE 9: COMMITMENTS

At September 30, 2022, the District had approximately $20.3 million remaining on two open construction projects.

NOTE 10: SUBSEQUENT EVENTS

In January 2023, the District issued $79,750,000 of Series 2023 Special Assessment Bonds with an interest rates ranging from 4.5% to 5.625%. The bonds were issued to finance the acquisition and construction of Assessment Area Three Master Infrastructure Project. Interest is paid semiannually on each May 1 and November 1. Principal payments on the series 2023 bonds are made serially commencing on May 1, 2025 through May 1, 2054.

In June 2023, the District issued $15,000,000 of Series 2023 Special Assessment Bonds with an interest rate of 6.125%. The bonds were issued to finance the acquisition and construction of the town center area. Interest is paid semiannually on each May 1 and November 1. Principal payments on the series 2023 bonds are made serially commencing on November 1, 2028 through May 1, 2054.

Required Supplemental Information (Other Than MD&A)

For the year ended September 30,	2022

Original
Budget	Final Budget

Actual Amounts

Variance with Final Budget

Revenue
Assessments	$ 2,740,208	$ 2,783,575	$ 2,291,591	$	(491,984)	
Landowner contributions	‐	3,527,049	3,981,031	453,982	
Interest and other revenue	‐	13,318	988	(12,330)	
Total revenue	2,740,208	6,323,942	6,273,610	(50,332)	

Expenditures
General government	

172,256	

157,330	

429,523	

(272,193)	
Maintenance and operations	2,878,000	3,030,326	2,657,095	373,231	
Capital outlay	‐	3,300,000	3,156,038	143,962	
Total expenditures	3,050,256	6,487,656	6,242,656	245,000	

Excess (deficit) of revenues over					
expenditures	$	(310,048)	$	(163,714)	$	30,954	$	194,668	

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
Avenir Community Development District Palm Beach Gardens, 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 and each major fund of Avenir Community Development District (hereinafter referred to as the “District”), as of and for the year ended September 30, 2022, and the related notes to the financial statements, which collectively comprise the District’s basic financial statements, and have issued our report thereon September 29, 2023.

Report on 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) as a basis for designing 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 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.

Report on Compliance and Other Matters

As part of obtaining reasonable assurance about whether the District’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. 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 District’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 District’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

CARR, RIGGS & INGRAM, LLC

Miramar Beach, Florida September 29, 2023

MANAGEMENT LETTER

To the Board of Supervisors
Avenir Community Development District Palm Beach Gardens, Florida

Report on the Financial Statements

We have audited the financial statements of the Avenir Community Development District (“District”) as of and for the fiscal year ended September 30, 2022, and have issued our report thereon dated September 29, 2023.

Auditors’ 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 Florida Auditor General.

Other Reporting Requirements

We have issued our Independent Auditors’ Report on Internal Control over Financial Reporting and Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance with Government Auditing Standards and Independent Accountant’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 September 29, 2023, should be considered in conjunction with this management letter.

Prior Audit Findings

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

Official Title and Legal Authority

Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the financial statements. The information required is disclosed in the notes to the financial statements.

Financial Condition and Management

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

Pursuant to Sections 10.554(1)(i)5.b. and 10.556(8), Rules of the Auditor General, we applied financial condition assessment procedures for the District. It is management’s responsibility to monitor the District’s financial condition, and our financial condition assessment was based in part on representations made by management and the review of financial information provided by same.

Section 10.554(1)(i)2., Rules of the Auditor General, requires that we communicate any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations.

Specific Information

As required by Section 218.39(3)(c), Florida Statutes, and Section 10.554(1)(i)6, Rules of the Auditor General, the Avenir Community Development District reported:

The total number of district employees compensated in the last pay period of the district’s fiscal year as 0.

The total number of independent contractors to whom nonemployee compensation was paid in the last month of the district’s fiscal year as 0.

All compensation earned by or awarded to employees, whether paid or accrued, regardless of contingency as $0.

All compensation earned by or awarded to nonemployee independent contractors, whether paid or accrued, regardless of contingency as $0.

Each construction project with a total cost of at least $65,000 approved by the District that is scheduled to begin on or after October 1 of the fiscal year being reported, together with the total expenditures for such project as: none noted.

A budget variance based on the budget adopted under Section 189.016(4), Florida Statutes, before the beginning of the fiscal year being reported if the district amends a final adopted budget under Section 189.016(6), Florida Statutes, as $341,002.

As required by Section 218.39(3)(c), Florida Statutes, and Section 10.554(1)(i)7, Rules of the Auditor General, the Avenir Community Development District reported:

The rate or rates of non‐ad valorem special assessments imposed by the District as $2,712 to
$5,473 per lot.

The total amount of special assessment collected by or on behalf of the district as $5,689,418.

The total amount of outstanding bonds issued by the district as $183,715,000.

Additional Matters

Section 10.554(1)(i)3., Rules of the Auditor General, requires us to communicate noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit, we did not note any such findings.

Purpose of this Letter

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

CARR, RIGGS & INGRAM, LLC

Miramar Beach, Florida September 29, 2023

INDEPENDENT ACCOUNTANTS’ REPORT

To the Board of Supervisors
Avenir Community Development District Palm Beach Gardens, Florida

We have examined Avenir Community Development District’s compliance with the requirements of Section 218.415, Florida Statutes, Local Government Investment Policies, during the year ended September 30, 2022. Management is responsible for the District’s compliance with those requirements. Our responsibility is to express an opinion on the District’s compliance based on our examination.

Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and performed the examination to obtain reasonable assurance about whether the District complied, in all material respects, with the specified requirements referenced above. 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.

We are required to be independent and to meet our ethical responsibilities in accordance with relevant ethical requirements relating to the engagement.

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 year ended September 30, 2022.

This report is intended solely for the information and use of management and the State of Florida Auditor General and is not intended to be and should not be used by anyone other than these specified parties.

CARR, RIGGS & INGRAM, LLC

Miramar Beach, Florida September 29, 2023