Financial Report
September 30, 2018

Trout Creek Community Development District

TROUT CREEK COMMUNITY DEVELOPMENT DISTRICT

Ended September 30, 2018

Page

TABLE  OF CONTENTS

Year

Financial Section:
Independent Auditor's Report	1
Management's Discussion and Analysis	3
Financial Statements:
Government-Wide Financial Statements:
Statement of Net Position	7
Statement of Activities	8
Fund Financial Statements:
Balance Sheet - Governmental Funds	9
Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds	10
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds
to the Statement of Activities	11
Statement of Revenues, Expenditures and Changes in Fund Balance -
Budget and Actual - General Fund	12
Notes to Financial Statements	13
Compliance Section:
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	26
Management Comments	28
Independent Auditor's Report on Compliance with the Requirements of
Section 218.415, Florida Statutes	30

INDEPENDENT AUDITOR'S REPORT

To the Board of Supervisors
Trout Creek Community Development District

Report on the Financial Statements

We have audited the accompanying financial statements of the governmental activities and each major fund of Trout Creek Community Development District, as of and for the year ended September 30, 2018, and the related notes to the financial statements, which collectively comprise the District’s basic financial statements as listed in the table of contents.

Management’s Responsibility for the Financial Statements

The District's 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 an opinion 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 principles 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.

MCDIRMIT DAVIS & COMPANY, LLC
934 N. MAGNOLIA AVENUE, SUITE 100 ORLANDO, FLORIDA 32803
T: 407-843-5406  │  F: 407-649-9339  │ WWW.MCDIRMITDAVIS.COM

1

Opinions

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, 2018, and the respective changes in financial position thereof and the respective budgetary comparison for the General Fund for the 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 starting on page 3, 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 Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued a report dated June 17, 2019, 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, 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.

Orlando, Florida June 17, 2019

2

MANAGEMENT’S DISCUSSION AND ANALYSIS

Our discussion and analysis of Trout Creek Community Development District, (the “District”) financial accomplishments provide an overview of the District’s financial activities for the year ended September 30, 2018. Please read it in conjunction with the District’s Independent Auditor’s Report, financial statements and accompanying notes.

This information is being presented to provide additional information regarding the activities of the District and to meet the disclosure requirements of Government Accounting Standards Board Statement (GASB) No. 34, Basic Financial Statements - and Management’s Discussion and Analysis - for State and Local Governments issued June 1999.

Financial Highlights

The liabilities of the District exceeded its assets at September 30, 2018 by ($577,382) a decrease of $1,840,409 in comparison with the prior year.
At September 30, 2018, the District’s governmental funds reported fund balances of
$11,582,103 an increase of $9,461,679 in comparison with the prior year.

Overview of the Financial Statements

This discussion and analysis is intended to serve as an introduction to Trout Creek Community Development District’s financial statements. The District’s financial statements are comprised of three components: 1) government-wide financial statements, 2) fund financial statements and 3) notes to financial statements.

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 of the District’s assets and liabilities, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the District is improving or deteriorating.

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 result in cash flows in future fiscal periods.

The government-wide financial statements include all governmental activities that are principally supported by special assessment revenues. The District does not have any business-type activities. The governmental activities of the District include general government, maintenance and operations, and culture and recreation related functions.

3

MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)

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 one fund category: Governmental 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 outflows 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 government’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, all of which 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.

Notes to 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

Statement of Net Position - The District’s net position was ($577,382) at September 30, 2018. The analysis that follows focuses on the net position of the District’s governmental activities.

4

MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)

Government-Wide Financial Analysis (Continued):

Trout Creek Community Development District Statement of Net Position

	September 30,	September 30,	
	2018	2017	
Assets, excluding capital assets	$	11,746,174	$	2,193,314	
Capital Assets, not being depreciated	20,409,462	20,046,118	
Total assets	32,155,636	22,239,432	
Liabilities, excluding long-term liabilities	789,057	542,127	
Long-term Liabilities	31,943,961	20,434,278	
Total liabilities	32,733,018	20,976,405	
Net Position:			
Net investment in capital assets	(1,392,114)	1,063,927	
Restricted for debt service	873,193	199,100	
Restricted for capital projects	(58,461)	-	
Total net position	$	(577,382)	$	1,263,027	

The following is a summary of the District’s governmental activities for the fiscal year ended September 30, 2018.

Changes in Net Position Year ended September 30,

Revenues:	2018	2017	
Program revenues	$	2,751,524	$	3,239,203	
General revenues	92,475	21,625	
Total revenues	2,843,999	3,260,828	
Expenses:			
General government	513,400	102,601	
Maintenance and operations	628,400	600,014	
Culture and recreation	435,060	443,368	
Interest on long-term debt	1,295,205	1,153,474	
Total expenses	2,872,065	2,299,457	
Developer reimbursement	(1,812,343)	-	
Change in net position	(1,840,409)	961,371	
Net position - beginning	1,263,027	301,656	
Net position - ending	$	(577,382)	$	1,263,027	

As noted above and in the statement of activities, the cost of all governmental activities during the year ended September 30, 2018 was $2,872,065. The majority of these costs are interest on long-term debt and maintenance and operations expenses.
5

MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)

Financial Analysis of the Government’s Funds

The District uses fund accounting to ensure and demonstrate compliance with finance related legal requirements. The focus of the District’s governmental funds is to provide information on near-term inflows, outflows and balances of spendable resources. Such information is useful in assessing the District’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year. At September 30, 2018, the District’s governmental funds reported combined ending fund balances of $11,582,103. Of this total, $13,865 is nonspendable, $11,582,103 is  restricted, and the remainder of $(13,865) is an unassigned deficit.

General Fund Budgetary Highlights

An operating budget was adopted and maintained 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 on page 12. 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 is at the fund level.

Capital Asset and Debt Administration

Capital Assets - At September 30, 2018, the District had $20,409,462 invested in capital assets net of depreciation. More detailed information about the District’s capital assets is presented in the notes to financial statements.

Capital Debt - At September 30, 2018, the District had $32,110,000 in bonds outstanding. In addition, the District has a capital lease payable of $74,518. More detailed information about the District’s capital debt is presented in the notes to financial statements.

Requests for Information

If you have questions about this report or need additional financial information, contact Trout Creek Community Development District’s Finance Department at 12750 Citrus Park  Lane, Suite 115, Tampa, Florida 33625.

6

FINANCIAL  STATEMENTS

September 30, 2018

STATEMENT OF NET POSITION

Assets:	Governmental Activities	
Cash	$	81,865	
Due from developer	9,517	
Prepaid costs	8,600	
Deposits	5,265	
Restricted assets:		
Temporarily restricted investments	11,640,927	
Capital Assets:		
Capital assets not being depreciated	20,325,082	
Capital assets, being depreciated	84,380	
Total assets	32,155,636	

Liabilities:		
Accounts payable and accrued expenses	162,541	
Accrued interest payable	624,986	
Unearned revenue	1,530	
Noncurrent liabilities:		
Due within one year	551,641	
Due in more than one year	31,392,320	
Total liabilities	32,733,018	
Net Position:		
Net investment in capital assets	(1,392,114)	
Restricted for debt service	873,193	
Restricted for capital projects	(58,461)	
Total net position	$	(577,382)	

STATEMENT  OF ACTIVITIES

Year Ended September 30, 2018

Program Revenue
Operating Grants Capital Grants

Net (Expense) Revenue and Changes in Net Position

Charges for		and		and	Governmental Functions/Programs	Expenses	Services	Contributions	Contributions		Activities
Governmental activities:
General government	$ 513,400	$	222,183	$	-	$	-	$	(291,217)	
Maintenance and operations	628,400	271,951	395,222		-	38,773	
Parks and recreation	435,060	188,280	-		-	(246,780)	
Interest on long-term debt	1,295,205	1,673,888	-		-	378,683	
Total governmental activities	$ 2,872,065	$ 2,356,302	$	395,222	$	-	(120,541)	

General Revenues:		
Miscellaneous	92,475	
Developer reimbursement	(1,812,343)	
Total general revenues	(1,719,868)	
Change in net position	(1,840,409)	
Net Position - beginning	1,263,027	
Net Position - ending	$	(577,382)	

BALANCE SHEET GOVERNMENTAL FUNDS

September  30,  2018

Assets:	

General	

Debt Service	
Capital Projects	Total Governmental Funds	
Cash	$	36,520	$	-	$	45,345	$	81,865	
Investments	-	3,770,139	7,870,788	11,640,927	
Due from developer	4,317	-	5,200	9,517	
Prepaid costs	8,600	-	-	8,600	
Deposits	5,265	-	-	5,265	
Total assets	$	54,702	$ 3,770,139	$	7,921,333	$	11,746,174	
Liabilities and Fund Balances:
Liabilities:					
Accounts payable and accrued expenses	$	53,535	$	-	$	109,006	$	162,541	
Unearned revenue	1,167	363	-	1,530	

Nonspendable	13,865	-	-	13,865	
Restricted for:					
Capital Projects			7,812,327	7,812,327	
Debt service	-	3,769,776	-	3,769,776	
Unassigned	(13,865)	-	-	(13,865)	
Total fund balances	-	3,769,776	7,812,327	11,582,103	
Total liabilities and fund balances	$	54,702	$ 3,770,139	$	7,921,333		

Total liabilities	54,702	363	109,006	164,071 Fund balances:

Amounts reported for Governmental Activities in the Statement of Net Position are different because:

Capital Assets used in Governmental Activities are not financial resources and therefore are not reported in the funds.
Long-term liabilities are not due and payable in the current period and therefore are not reported in the funds.

20,409,462

Accrued interest payable	(624,986)
Bonds payable	(31,943,961)	(32,568,947)
Net Position of Governmental Activities	$	(577,382)

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS

Year Ended September 30, 2018

General

Debt Service

Capital Projects

Total Governmental Funds

Revenues:

Expenditures:
Current:

Assessment revenue	$	682,414	1,448,036	$	-	$	2,130,450	
Prepayment revenue	-	225,852		-	225,852	
Developer contributions	395,222	-		-	395,222	
Investment and miscellaneous income	92,475	-		-	92,475	
Total revenues	1,170,111	1,673,888		-	2,843,999	

General government	101,150	-	412,250	513,400	
Maintenance and operations	628,400	-	-	628,400	
Parks and recreation
Debt Service:	404,376	-	-	404,376	
Interest	6,733	1,123,588	-	1,130,321	
Principal	29,452	570,000	-	599,452	
Capital outlay	-	-	394,028	394,028	
Total expenditures	1,170,111	1,693,588	806,278	3,669,977	
Excess (Deficit) of Revenues Over					
Expenditures	-	(19,700)	(806,278)	(825,978)	
Other Financing Sources (Uses) :					
Debt Proceeds	-	1,669,052	10,430,948	12,100,000	
Developer reimbursement	-	-	(1,812,343)	(1,812,343)	
Total other financing sources (uses)	-	1,669,052	8,618,605	10,287,657	
Net change in fund balances	-	1,649,352	7,812,327	9,461,679	
Fund Balances - beginning of year	-	2,120,424	-	2,120,424	
Fund Balances - end of year	$	-	$	3,769,776	$	7,812,327	$	11,582,103	

RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES

Year Ended September 30, 2018

Amounts reported for Governmental Activities in the Statement of Activities are different because:
Net Change in Fund Balances - total governmental funds (page 10)	$
Governmental Funds report outlays for Capital Assets as expenditures because such outlays use current financial resources; however, in the statement of net position the cost of those assets is recorded as  capital assets. Depreciation of capital assets is not recognized in the governmental fund statements but is reported as an expense in the statement of activities.
Capital outlay	394,028

9,461,679

Depreciation expense	(30,684)	363,344

Repayments of long-term liabilities are reported as expenditures in governmental funds, while repayments reduce long-term liabilities in the statement of net position.

Repayment of bonds and capital lease payable	599,452
Debt proceeds	(12,100,000)	(11,500,548)

Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds.
Change in accrued interest	(155,749)
Amortization of bond discount	(9,135)	(164,884)

Change in Net Position of Governmental Activities  (page 8)	$  (1,840,409)

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL - GENERAL FUND

Year Ended September 30, 2018

Budgeted Amounts

Actual Amounts

Variance with Final Budget Positive (Negative)

Revenues:	Original	Final		
Assessment Revenue	$	1,146,884	$	1,146,884	$	682,414	$	(464,470)	
Developer contributions	-	-	395,222	395,222	
Miscellaneous	88,050	88,050	92,475	4,425	
Total revenues	1,234,934	1,234,934	1,170,111	(64,823)	
Expenditures:
Current:					

General government		109,555	109,555	101,150	8,405	
Maintenance and operations		661,123	661,123	628,400	32,723	
Parks and recreation		454,256	454,256	404,376	49,880	
Capital Outlay		10,000	10,000	-	10,000	
Debt Service:						
Principal		-	-	29,452	(29,452)	
Interest and other charges		-	-	6,733	(6,733)	
Total expenditures		1,234,934	1,234,934	1,170,111	64,823	
Net change in fund balance		-	-	-	-	
Fund Balance - beginning
Fund Balance - ending	
$	-
-	$	-
-	$	-
-	$	-
-	

NOTES TO FINANCIAL STATEMENTS

NOTES TO FINANCIAL STATEMENTS

Year Ended September 30, 2018

Note 1 - Summary of Significant Accounting Policies:

Reporting Entity

Trout Creek Community Development District, (the “District”) was established on October 21, 2014 by St. Johns County Ordinance  2014-44  pursuant to the Uniform Community Development District Act of 1980, otherwise known as Chapter 190, Florida Statutes. The Act provides, among other things,  the power to manage basic services for community development, the power to borrow money and issue bonds, and the power to levy and assess non-ad valorem assessments for the financing and delivery of capital  infrastructure. The District was established  for the purpose  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 the Board of Supervisors (the “Board”), which is composed of five members. The Supervisors are elected on an at large basis by landowners within the District. Ownership of land within the District entitles the owner to one vote per acre, or lot. The Board of Supervisors of the District exercises all powers granted to the District pursuant to Chapter 190, Florida Statutes. At September 30, 2018 two of the Board members were affiliated with WFC Ashford Mill, LLC (the “Developer”). The District is economically dependent on the Developer.

The Board has final responsibility for:

Allocating 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 14, 39, and 61. Under the provisions of those standards, the financial reporting entity consists of the primary government, organizations for which the District Board of Supervisors 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 1 - Summary of Significant Accounting Policies (Continued): Government-Wide and Fund Financial Statements
The 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, 2) grants, contributions and investment earnings that are restricted to meeting the operational or capital requirements of a particular function or segment and 3) operating-type special assessments that are treated as charges for services (including assessments for maintenance and debt service). 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  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 recognized as revenues 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, except for Developer receivables for retainage, which are collected from the Developer when the amount is due to the contractor. Expenditures 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 and operation and maintenance assessments, are non-ad valorem assessments imposed on all lands located within the District and benefited by the District’s activities. Operation and maintenance special assessments are levied by the District prior to the start of the fiscal year which begins October 1st and ends on September 30th. These 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.

Note 1 - Summary of Significant Accounting Policies (Continued):

Measurement Focus, Basis of Accounting  and Financial  Statement  Presentation (Continued):

Assessments and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current 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 - is the District’s primary operating fund. It is used to account for and report all financial resources not accounted for and reported in another fund.

Debt Service Fund - accounts for the accumulation of resources for the annual payment of principal and interest on long-term debt.

Capital Project Fund - accounts for the financial resources to be used for the acquisition or construction of major infrastructure within the District.

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.

Assets, Liabilities,  Deferred Outflows/Inflows  of Resources and Net Position/Fund Balance:

Restricted Assets - These assets represent cash and investments set aside pursuant to bond covenants.

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

Investments of the District are reported at fair value and are categorized within the fair value hierarchy established in accordance with GASB Statement No. 72, Fair Value Measurement and Application. The District’s investments consist of investments authorized in accordance with Section 218.415, Florida Statutes.

Prepaid Items - Prepaid items are recorded as expenditures when consumed rather  than when purchased in both government-wide and fund financial statements.

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

Year Ended September 30, 2018

Note 1 - Summary of Significant Accounting Policies (Continued):

Assets, Liabilities,  Deferred Outflows/Inflows  of Resources and Net Position/Fund Balance (Continued):

Capital Assets - Capital assets, which include property, plant, equipment and infrastructure assets (e.g., roads, sidewalks and similar items), are reported in the applicable 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 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.

Capital assets of the District are depreciated using the straight-line method over the following estimated useful lives:
Assets	Years
Fitness Equipment	5
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 method. Bond issuance costs are reported as expenses. Bonds payable are reported net of premiums or discounts.

In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond 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 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. The District does not have any item that qualifies for reporting in this category for the year ended September 30, 2018.

Note 1 - Summary of Significant Accounting Policies (Continued):

Assets, Liabilities,  Deferred Outflows/Inflows  of Resources and Net Position/Fund Balance (Continued):

Deferred Outflows/Inflows of Resources (Continued)

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. The District does not have any item that qualifies for reporting in this category for the year ended September 30, 2018.

Net Position Flow Assumption - Sometimes the District will fund outlays for a particular purpose from both restricted and unrestricted resources. In order to calculate the amounts to report as restricted net position and unrestricted net position in the government-wide financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the District’s policy to consider restricted net position to have been depleted before unrestricted net position is applied.

Fund Balance Flow Assumptions - Sometimes the District will fund outlays for a particular purpose from both restricted and unrestricted resources (total of committed, assigned, and unassigned fund balance). In order to calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements a flow assumption must be made about the order in which the resources are considered to be applied. It is the District’s policy to consider restricted fund balance to have been depleted before using any of the components of unrestricted  fund balance. Further,  when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last.

Fund Balance Policies - Fund balance of governmental funds is reported in various categories based on the nature of any limitations requiring the use of resources for specific purposes. The District itself can establish limitations on the use of resources through either commitment (committed fund balance) or an assignment (assigned fund balance).

The committed fund balance classification includes fund balance amounts that can be used only for the specific purposes determined by a formal action of the government’s highest level of decision-making authority. The Board of Supervisors is the highest level of decision-making authority for the government that can, by adoption of an ordinance or resolution prior to the end of the fiscal year, commit fund balance. Once adopted, the limitation imposed by the ordinance or resolution remains in place until a similar action is taken to remove or revise the limitation.

Note 1 - Summary of Significant Accounting Policies (Continued):
Assets, Liabilities,  Deferred Outflows/Inflows  of Resources and Net Position/Fund Balance (Continued):
Fund Balance Policies (Continued)
Amounts in the assigned fund balance classification  are intended  to be used by the government for specific purposes but do not meet the criteria to be classified as committed. The Board of Supervisors has authorized the District Manager to assign amounts for specific purposes. The Board of Supervisors may also assign fund balance as it does when  appropriating fund balance to cover a gap between estimated revenue and appropriations in the subsequent year’s appropriated budget. Unlike commitments, assignments generally only exist temporarily. In other words, an additional action does not normally have to be taken for  the removal of an assignment. Conversely, as discussed above, an additional action is essential to either remove or revise a commitment.
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 2 - Stewardship, Compliance and Accountability: Budgetary Information
The District is required to establish a budgetary system and an approved annual budget for the General Fund. Annual budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America. All annual appropriations lapse  at the fiscal year end. The legal level of budgetary control is at the fund level. Any budget amendments that increase the aggregate budgeted appropriations, at the fund level, must be approved by the Board of Supervisors.

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.

The budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America.

Note 3 - 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 categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The fair value is the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. The District uses a market approach in measuring fair value that uses prices and other relevant information generated by market transactions involving identical or similar assets, liabilities, or groups of assets and liabilities.

Assets or liabilities are classified into one of three levels. Level 1 is the most reliable and is based on quoted price for identical assets, or liabilities, in an active market. Level 2 uses significant other observable inputs when obtaining quoted prices for identical or similar assets, or liabilities, in markets that are not active. Level 3 is the least reliable, and uses significant unobservable inputs that use the best information available under the circumstances, which includes the District’s own data in measuring unobservable inputs.

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

Year Ended September 30, 2018

Note 3 - Deposits and Investments (Continued):

Investments (Continued)

Instead of establishing a written investment policy, the District elected to limit investments to those approved by Florida Statutes and the District Trust Indenture. Authorized District investments include, but are not limited to:

The Local Government Surplus Funds Trust Fund (SBA);

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.

Investments made by the District at September 30, 2018 are summarized below. In accordance with GASB 31, investments are reported at fair value.

Investment Type	Fair Value	Credit Rating

Weighted Average Maturity

BNY Mellon MMA

$   11,640,927
$   11,640,927

N/A	N/A

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. Investments in U.S. Government securities  and agencies must be backed by the full faith and credit of the United States Government. Short term bond funds shall be rated by a nationally recognized ratings agency and shall maintain the highest credit quality rating. Investment ratings by investment type are  included in the preceding summary of investments.

Custodial Credit Risk:

In the case of deposits, this is the risk that, in the event of a bank failure, the District’s deposits may not be returned to it. The District’s investment policy requires that bank deposits be secured as provided by Chapter 280, Florida Statutes. This law requires local governments to deposit funds only in financial institutions designated as qualified public depositories by the Chief Financial Officer of the State of Florida, and creates the Public Deposits Trust Fund, a multiple financial institution pool with the ability to assess its member financial institutions for collateral shortfalls if a default or insolvency has occurred. At September 30, 2018, all of the District’s bank deposits were in qualified public depositories.

Year Ended September 30, 2018

Note 3 - Deposits and Investments (Continued):

Investments (Continued)

For an investment, this is the risk that, in the event of the failure of the counterparty, the government will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. At September 30, 2018, none of the investments listed are exposed to custodial credit risk because their existence is not evidenced by securities that exist in physical or book entry form.

Concentration of Credit 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. The District  manages its exposure to declines in fair values by investing primarily in pooled investments that have a weighted average maturity of less than three months.

Note 4 - Capital Assets:

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

Governmental Activities:
Capital Assets Not Being Depreciated:

Beginning
Balance	Additions	Disposals

Ending Balance

Improvements Under Construction	$ 19,931,054	$	394,028	$	-	$ 20,325,082	
Total capital assets not being depreciated	19,931,054	394,028	-	20,325,082	
Capital Assets Being Depreciated:
Fitness Equipment	153,419	
-	
-	
153,419	
Total Capital Assets Being Depreciated	153,419	-	-	153,419	

Less Accumulated Depreciation for: Fitness Equipment	

(38,355)	

(30,684)	

-	

(69,039)	
Total Accumulated Depreciation	(38,355)	(30,684)	-	(69,039)	
Total Capital Assets Being Depreciated, net	115,064	(30,684)	-	84,380	
Governmental Activities Capital Assets, net	$ 20,046,118	$	363,344	$	-	$ 20,409,462	

Depreciation expense was charged to culture and recreation for 2018.

Year Ended September 30, 2018

Note 5 - Long-Term Liabilities:

Series 2015 Capital Improvement Revenue Bonds

In February 2015, the District issued $21,215,000 of Capital Improvement Revenue Bonds, Series 2015. The Bonds consist of $3,770,000 Term Bonds due May 1, 2025 with a fixed interest rate of 4.875%, $6,355,000 Term Bonds due May 1, 2035 with a fixed interest rate of 5.50% and $11,090,000 Term Bonds due May 1, 2045 with a fixed interest rate of 5.625%. The Bonds were issued to finance the acquisition and construction of certain improvements for the benefit of the property within the District. Interest is paid semiannually on each May 1 and November 1. Principal on the Bonds is to be paid serially commencing May 1, 2016 through May 1, 2045.

The Series 2015 Bonds are subject to redemption at the option of the District prior to maturity at a redemption price as set forth in the Bond Indenture. The Bonds are subject to extraordinary  mandatory redemption prior to maturity in the manner determined by the Bond Indenture.

The Bond Indenture requires that the District maintain adequate funds in a reserve account to meet the debt service reserve requirements as defined in the Indenture. The requirement has been met at September 30, 2018.

The Bond Indenture has 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. Payment of principal and interest on the 2015 Bonds is secured by a pledge of and a first lien upon the pledged special assessment revenue. The District is in compliance with the requirements of the Bond Indenture.

As of September 30, 2018, total principal and interest remaining on the Series 2015 Special Assessment Bonds was $39,149,837. For the fiscal year ended September 30, 2018, principal and interest paid was $1,693,588, special assessment revenue pledged was $1,673,889.

Series 2018 Capital Improvement Revenue Bonds

In July 2018, the District issued $12,100,000 of Capital Improvement Revenue Bonds, Series 2018. The Bonds consist of $745,000 Term Bonds due May 1, 2023 with a fixed interest rate of 4.5%, $1,155,000 Term Bonds due May 1, 2028 with a fixed interest rate of 5.0%, $3,455,000 Term Bonds due May 1, 2038 with a fixed interest rate of 5.375% and $6,745,000 Term Bonds due May 1, 2049 with a fixed interest rate of 5.50%. The Bonds were issued to finance the acquisition and construction of certain improvements for the benefit of the property within the District. Interest is 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 Series 2018 Bonds are subject to redemption at the option of the District prior to maturity at a redemption price as set forth in the Bond Indenture. The Bonds are subject to extraordinary  mandatory redemption prior to maturity in the manner determined by the Bond Indenture.

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

Year Ended September 30, 2018

Note 5 - Long-Term Liabilities (Continued):

The Bond Indenture requires that the District maintain adequate funds in a reserve account to meet the debt service reserve requirements as defined in the Indenture. The requirement has been met at September 30, 2018.

The Bond Indenture has 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. Payment of principal and interest on the 2018 Bonds is secured by a pledge of and a first lien upon the pledged special assessment revenue. The District is in compliance with the requirements of the Bond Indenture.

As of September 30, 2018, total principal and interest remaining on the Series 2018 Special Assessment Bonds was $25,371,869. For the fiscal year ended September 30, 2018, no principal and interest was paid. No special assessment revenue was pledged.

Capital Lease

The District executed a capital lease for fitness equipment. The equipment has a five  year useful life. The lease qualifies as a capital lease for accounting purposes and, therefore has been recorded at the present value of future minimum lease payments.

The assets acquired through capital leases are as follows:		
Fitness Equipment	$	153,419	
Less: Accumulated Depreciation	(69,039)	
Total	$	84,380	

The future minimum lease obligation and net present value of these minimum lease payments as of September 30, 2018 were as follows:

Year Ending September 30:	Payments	
2019	$	36,185	
2020	36,185	
2021	9,046	
Less: amount representing interest	(6,898)	
Present Value of Minimum Lease Payments	$	74,518	

Governmental activities:
Bonds Payable:	Beginning Balance	
Additions	
Reductions	Ending Balance	Due Within One Year	
Series 2015	$ 20,580,000	$	-	$ (570,000)	$ 20,010,000	$ 345,000	
Less: Discount	(249,692)	-	9,135	(240,557)	-	
Series 2018	-	12,100,000		12,100,000	175,000	
Capital Lease	103,970	-	(29,452)	74,518	31,641	
Governmental activity long-											
term liabilities	$	20,434,278	$	12,100,000	$	(590,317)	$	31,943,961	$	551,641	

Year Ending
September 30,	
Principal	
Interest	
2019	$	345,000	$	1,622,358	
2020	540,000	1,727,931	
2021	560,000	1,702,262	
2022	590,000	1,675,637	
2023	620,000	1,647,587	
2024 - 2028	3,585,000	7,745,187	
2029 - 2033	4,715,000	6,673,750	
2034 - 2038	6,150,000	5,238,856	
2039 - 2043	8,185,000	3,314,444	
2044 - 2048	6,025,000	1,019,969	
2049	795,000	43,725	
	$	32,110,000	$	32,411,706	

Year Ended September 30, 2018

Note 5 - Long-Term Liabilities (Continued):

Long-term liability activity for the year ended September 30, 2018 was as follows:

At September 30, 2018, the scheduled debt service requirements on the bonds payable were as follows:
Governmental Activities

Note 6 - Developer Transactions:

The Developer owns a portion of land within the District; therefore assessment revenue in the general fund and debt service fund includes assessments levied on land owned by the Developer. The Developer’s portion of special assessment revenue for the year ended September 30, 2018 totaled $1,627,843 which is 58% of total special assessment revenue. At year end, balances due from the developer totaled $4,317.

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.

Year Ended September 30, 2018

Note 7 - Management Company:

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

Note 8 - Risk Management:

The District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; and natural disasters. These risks are covered by commercial insurance from independent third parties. The District filed one claim totaling
$54,607, under this commercial coverage during the last three years.

COMPLIANCE SECTION

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
Trout Creek Community Development District

We have audited, 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, the financial statements of the governmental activities and each major fund of Trout Creek Community Development District (the “District”) as of and for the year ended September 30, 2018 and the related notes  to the financial statements, which collectively comprise the District’s financial statements and have issued our report thereon dated June 17, 2019.

Internal Control Over Financial Reporting

In planning and performing our audit of the financial statements, we considered the District’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing 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 over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be material weaknesses or significant deficiencies. Given these limitations, during our audit, we did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

MCDIRMIT DAVIS & COMPANY, LLC
934 N. MAGNOLIA AVENUE, SUITE 100 ORLANDO, FLORIDA 32803
T: 407-843-5406  │  F: 407-649-9339  │ WWW.MCDIRMITDAVIS.COM
26

Compliance and Other Matters

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

Purpose of this Report

The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the 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.

Orlando, Florida June 17, 2019

27

MANAGEMENT COMMENTS

Board of Supervisors
Trout Creek Community Development District

Report on the Financial Statements

We have audited the financial statements of Trout Creek Community Development District, (the “District”) as of and for the fiscal year ended September 30, 2018, and have issued our report thereon dated June 17, 2019.

Auditor’s Responsibility

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

Other Reporting Requirements

We have issued our 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 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 17, 2019, 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 such findings or recommendations in the preceding annual financial 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 financial statements. This information has been disclosed in the notes to financial statements.

MCDIRMIT DAVIS & COMPANY, LLC
934 N. MAGNOLIA AVENUE, SUITE 100 ORLANDO, FLORIDA 32803
T: 407-843-5406  │  F: 407-649-9339  │ WWW.MCDIRMITDAVIS.COM

28

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.c. 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 connections with our audit, we did not have any such recommendations.

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

Orlando, Florida June 17, 2019

INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE WITH THE REQUIREMENTS OF SECTION 218.415, FLORIDA STATUTES

To the Board of Supervisors
Trout Creek Community Development District

We have examined Trout Creek Community Development District’s (the “District”) compliance with the requirements of Section 218.415, Florida Statutes, during the year ended September 30, 2018. Management is responsible for the 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 and the standards applicable to attestation engagements contained in Government Auditing Standards issued by the Comptroller General of the United States, and, accordingly, included examining, on a test basis, evidence about the District’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination 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, 2018.

Orlando, Florida June 17, 2019

MCDIRMIT DAVIS & COMPANY, LLC
934 N. MAGNOLIA AVENUE, SUITE 100 ORLANDO, FLORIDA 32803
T: 407-843-5406  │  F: 407-649-9339  │ WWW.MCDIRMITDAVIS.COM