Amelia Walk Community Development District

ANNUAL FINANCIAL REPORT

September 30, 2019

Amelia Walk Community Development District ANNUAL FINANCIAL REPORT
September 30, 2019 TABLE OF CONTENTS

FINANCIAL SECTION

Page Number

REPORT OF INDEPENDENT AUDITORS	1-2
MANAGEMENT’S DISCUSSION AND ANALYSIS	3-8

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 Total Governmental Fund Balances
to Net Position of Governmental Activities	12
Statement of Revenues, Expenditures and Changes in Fund
Balances – Governmental Funds	13
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds
to the Statement of Activities	14
Statement of Revenues, Expenditures and Changes in Fund
Balances – Budget and Actual – General Fund	15

Notes to Financial Statements	16-30
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	31-32
MANAGEMENT LETTER	33-34
INDEPENDENT ACCOUNTANT’S REPORT/COMPLIANCE WITH
SECTION 218.415, FLORIDA STATUTES	35

REPORT OF INDEPENDENT AUDITORS

To the Board of Supervisors
Amelia Walk Community Development District Nassau County, Florida

Report on the Financial Statements
We have audited the accompanying financial statements of Amelia Walk Community Development District as of and for the year ended September 30, 2019, and the related notes to financial statements, which collectively comprise the District’s basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express 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. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the  reasonableness  of  significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

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To the Board of Supervisors
Amelia Walk Community Development District

Opinion

In our opinion, the basic financial statements referred to above present fairly, in all material respects, the financial position of the governmental activities and each major fund as of September 30, 2019, and the respective changes in financial position and the budgetary comparison for the General Fund for the year then ended in conformity with accounting principles generally accepted in the United States of America.

Other Matters

Required Supplementary Information

Governmental accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by 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 in accordance with governmental auditing standards generally accepted in the United States of America, which consisted principally of inquires of management regarding the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We 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, 2020 on our consideration of the District’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations and contracts.

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 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 Amelia Walk Community Development District’s internal control over financial reporting and compliance.

Berger, Toombs, Elam, Gaines & Frank Certified Public Accountants PL
Fort Pierce, Florida June 17, 2020
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Management’s discussion and analysis of Amelia Walk Community Development District's (the “District”) financial performance provides an objective and easily readable analysis of the District’s financial activities. The analysis provides summary financial information for the District and should be read in conjunction with the District’s financial statements.

OVERVIEW OF THE FINANCIAL STATEMENTS

The District’s basic financial statements comprise three components; 1) Government-wide financial statements, 2) Fund financial statements, and 3) Notes to financial statements. The Government-wide financial statements present an overall picture of the District’s financial position and results of operations. The Fund financial statements present financial information for the District’s major funds. The Notes to financial statements provide additional information concerning the District’s finances.

The Government-wide financial statements are the statement of net position and the statement of activities.  These statements use accounting methods similar to those used by  the private-sector. Emphasis is placed on the net position of governmental activities and the change in net position. Governmental activities are primarily supported by special assessments.

The statement of net position presents information on all assets and liabilities of the District, with the difference between assets and liabilities reported as net position. Net position are reported in three categories; 1) net investment in capital assets, 2) restricted  and  3) unrestricted. Assets, liabilities, and net position are reported for all Governmental activities.

The statement of activities presents information on all revenues and expenses of  the District  and the change in net position. Expenses are reported by major function and program revenues relating to those functions are reported, providing the net cost of all functions provided by the District. To assist in understanding the District’s operations, expenses have been reported as  governmental activities. Governmental activities funded by the District include general government, physical environment, culture and recreation and interest on long-term debt.

Fund financial statements present financial information for governmental funds. These statements provide financial information for the major funds of the District. Governmental fund financial statements provide information on the current assets and liabilities of the funds, changes in current financial resources (revenues and expenditures), and current available resources.

OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)

Fund financial  statements  include a balance  sheet  and a statement  of revenues, expenditures and changes in fund balances for all governmental funds. A statement of revenues, expenditures, and changes in fund balances – budget and actual, is provided for the District’s General Fund. Fund financial statements provide more detailed information about the District’s activities. Individual funds are established by the District to track revenues that are restricted to certain uses or to comply with legal requirements.

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 balances of spendable resources available at the end of the year. Such information may be useful in evaluating a government's  near-term financing requirements.

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

Notes to financial statements provide additional detail concerning the financial activities and financial balances of the District. Additional information about the accounting practices of the District, investments of the District, capital assets, and long-term debt are some of the items included in the notes to financial statements.

Financial Highlights:

The following are the highlights of financial activity for the year ended September 30, 2019.

The District’s total assets and deferred outflows of resources exceeded by total liabilities by $947,847 (net position). Net investment in capital assets was $10,303,106. Unrestricted net position was $(10,819,663). Restricted net position was $1,464,404.

Governmental activities revenues totaled  $3,024,005  while  governmental  activities expenses totaled $1,978,756.

OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)

Financial Analysis of the District

The following schedule provides a summary of the assets, deferred outflows of  resources  liabilities and net position of the District.

Net Position	
	
 		Governmental Activities 2019		2018	

Current assets	
$	
1,248,294	
$	95,603	
Restricted assets		7,677,786	5,065,815	
Capital assets, net of depreciation	    14,746,960	 	7,737,664	
Total Assets	    23,673,040	 12,899,082	
Deferred outflows of resources	 	11,419	 	12,068	
Current liabilities		2,806,999	808,454	
Non-current liabilities	    19,929,613	 12,200,098	
Total Liabilities	    22,736,612	 13,008,552	
Net position - net investment in			
capital assets		10,303,106	7,908,325	
Net position-restricted		1,464,404	90,799	
Net position-unrestricted

Total Net Position	  

$	(10,819,663)

947,847	     (8,096,526)

$	(97,402)	

The increase in current assets is related to receivable from the developer for capital projects in the current year.

The increase in restricted assets was related to the new bond issuance in the current year.

The increase in capital assets is primarily related to one capital project completed and another new capital project initiated in the current year.

The increase in current liabilities is related to the increase in contracts/retainage payable in the current year.

OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)

Financial Analysis of the District (Continued)

The following schedule provides a summary of the changes in net position of the District.

Change in Net Position

Governmental Activities
	2019		2018	

Program Revenues				
Charges for services	$	1,868,585		$	3,648,452	
Grants and contributions	945,867		778	
General Revenues Investment earnings	
167,718		
43,064	
Other revenues	41,835		2,131	
Gain on debt cancellation	-		1,582,500	
Total Revenues	 	3,024,005		 	5,276,925	
Expenses
General government	
153,399		
145,770	
Physical environment	263,196		284,971	
Culture and recreation	206,192		168,655	
Interest and other charges	1,355,969		801,825	
Total Expenses	 	1,978,756		 	1,401,221	
Change in Net Position	1,045,249		3,875,704	
Net Position - Beginning of Year	(97,402)		(3,973,106)	
Net Position - End of Year	 $	947,847		 $	(97,402)	

The decrease in charges for services relates to prepayments in the prior year to pay down the Series 2012 Bonds.

The increase in grants and contributions is related to the developer contribution for capital projects in the current year.

The increase in interest is related to the increased debt outstanding in the current year and the cost of issuance for the new debt in the current year.

The gain on debt cancellation and the increase in interest is related to the refunding of the  Series 2012 Bonds in the prior year.

OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)

Capital Assets Activity

The following schedule provides a summary of the District’s capital assets as of September 30, 2019 and 2018.

 	Description		 	Governmental Activities	
 	2019		 	2018		
Land	$	881,686	$	881,686	
Construction in progress		12,123,344		5,150,597	
Recreational facility and amenities		2,714,152		2,669,290	
Equipment		76,237		6,232	
Accumulated depreciation
Total Capital Assets (Net)	
 $		(1,048,459)
14,746,960	
 $		(970,141)
7,737,664	

During the year, $6,972,747 was added to construction in progress, $89,725 was added to recreational facilities, $70,005 was added to equipment, $27,541, net was disposed and depreciation was $95,640.

General Fund Budgetary Highlights

The budget was exceeded by actual expenditures primarily because of the capital lease  initiated.

The September 30, 2019 budget was not amended.

Debt Management

Governmental Activities debt includes the following:

In March 2012, the District trifurcated the Series 2006A Special Assessment Bonds with an outstanding balance of $8,565,000 into $1,675,000  Series  2012A-1,  $1,535,000 Series 2012A-2 and $5,355,000 Series 2012A-3. The Series 2012A-2 Bonds  were  retired May 1, 2016 and the Series 2012A-3 Bonds were paid off during the current fiscal year. The balance outstanding at September  30,  2019 for the  Series 2012A-1  Bonds  was $1,335,000.

In January 2016, the District issued $3,875,000 Series 2016 Special Assessment Bonds (Assessment Area A-2). The bonds were issued to finance the acquisition and construction of certain improvements for the benefit of Assessment Area A-2 of the District. The balance outstanding at September 30, 2019 was $3,470,000.

OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)

Debt Management (Continued)

In April 2018, the District issued $7,135,000 Series 2018A Special Assessment Bonds (Assessment Area A-3) to currently refund a portion of the Series 2012A-3 Special Assessment Bonds, pay a portion of the costs of the 2018 Project, make a deposit to the 2018A Debt Service Reserve Fund and pay certain associated costs associated with the issuance of the Series  2018A Special Assessment Bonds. The balance outstanding at September 30, 2019 was
$7,135,000.

In November 2018, the District issued $8,300,000 Series 2018A Special Assessment Bonds (Assessment Area 3B) to pay a portion of the costs of the 2018A Project, make a deposit to the 2018A Debt Service Reserve Fund and pay certain associated costs associated with the issuance of the Series 2018A Special Assessment Bonds. The balance outstanding at September 30, 2019 was $8,300,000.

Economic Factors and Next Year’s Budget

Amelia Walk Community Development District does not expect any economic factors to have a significant effect on the financial position or the results of operations of the District in fiscal year 2020.

Request  for Information

The financial report is designed to provide a general overview of District’s finances for all those with an interest. Questions concerning any of the information provided in this report or requests for additional information should be addressed to Amelia Walk Community Development District, c/o Governmental Management Services, 475 West Town Place, Suite 114, St. Augustine, Florida 32092.

	Governmental
Activities	
ASSETS		
Current Assets
Cash and cash equivalents	
$	69,686	
Investments	40,621	
Accrued interest receivable	10,955	
Assessments receivable	154,171	
Due from other governments	2,932	
Due from developer	945,867	
Deposits	515	
Prepaid expenses	 	23,547	
Total Current Assets	 	1,248,294	
Non-Current Assets Restricted assets
Investments	7,677,786
Capital assets, not being depreciated
Land	881,686
Construction in progress	12,123,344
Capital assets, being depreciated
Recreation facilities and amenities	2,714,152	
Equipment	76,237	
Less: accumulated depreciation	 	(1,048,459)	
Total Non-Current Assets	     22,424,746	
Total Assets	     23,673,040	

DEFERRED OUTFLOWS OF RESOURCES
Deferred amount on refunding, net	 	11,419

LIABILITIES

Accounts payable and accrued expenses	20,876	
Contracts/retainage payable	2,116,395	
Deposits	200	
Accrued interest	444,924	
Capital lease payable	14,604	
Bonds payable	 	210,000	
Total Current Liabilities	 	2,806,999	
Bonds payable	19,896,269	
Capital lease payable	 	33,344	
Total Non-Current Liabilities	     19,929,613	
Total Liabilities	22,736,612	
NET POSITION
Net investment in capital assets	
10,303,106	
Restricted for debt service	518,537	
Restricted for capital projects	945,867	
Unrestricted	    (10,819,663)	
Total Net Position	 $	947,847	

Current Liabilities

Non-Current Liabilities

See accompanying notes.

Amelia Walk Community Development District STATEMENT OF ACTIVITIES
For the Year Ended September 30, 2019

			Net (Expense)	
			Revenues and	
	Program		Changes in	
	Revenues		Net Position	
	Charges for	Operating Grants		Governmental	
Functions/Programs	  Expenses		Services	and Contributions		Activities	
Primary government				
Governmental Activities				
General government	$	(153,399)	$	199,455	$	-		$	46,056	
Physical environment	(263,196)	342,218	945,867		1,024,889	
Culture and recreation	(206,192)	107,934	-		(98,258)	
Interest and other charges	    (1,355,969) 	1,218,978	 	-		 	(136,991)	
Total Governmental Activities	 $  (1,978,756)    $	1,868,585	 $	945,867		835,696	

General Revenues			
	Investment earnings		167,718	
	Miscellaneous revenues		 	41,835
 	209,553

1,045,249	
	Total General Revenues			
	Changes in Net Position			
	Net Position - October 1, 2018

Net Position - September 30, 2019		 	(97,402)

 $	947,847	

See accompanying notes.

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Amelia Walk Community Development District BALANCE SHEET –
GOVERNMENTAL FUNDS
September 30, 2019

									Total	
				Debt			Capital		Governmental	
	    General			    Service				   Projects			     Funds		
ASSETS								
Cash and cash equivalents	$	69,686		$	-	$	-	$	69,686	
Investments		40,621			-		-		40,621	
Assessments receivable		-	154,171		-		154,171	
Accrued interest receivable		15	2,860		8,080		10,955	
Due from other funds		3,696			-		-		3,696	
Due from developer		-			-		945,867		945,867	
Due from other governments		1,140	1,792		-		2,932	
Prepaid expenses		23,547			-		-		23,547	
Deposits		515			-		-		515	
Restricted assets										
Investments, at fair value	 	-	    2,045,019		    5,632,767		    7,677,786	
Total Assets	 $	139,220	 $ 2,203,842	 $ 6,586,714	 $ 8,929,776	

LIABILITIES, DEFERRED INFLOWS										
AND FUND BALANCES										
Liabilities:										
Accounts payable and accrued expenses	$	20,876		$	-	$	-	$	20,876	
Contracts/retainage payable		-			-		2,116,395		2,116,395	
Due to other funds		-	3,696		-		3,696	
Deposits	 	200	 	-		 	-		 	200	
Total Liabilities	 	21,076	 	3,696		    2,116,395		    2,141,167	
Deferred Inflows										
Unavailable revenues	 	-	 	-		 	354,264		 	354,264	
Fund Balances:										
Nonspendable - prepaid expenses/deposits		24,062			-		-		24,062	
Restricted - capital projects		-			-		4,116,055		4,116,055	
Restricted - debt service		-	2,200,146		-		2,200,146	
Unassigned	 	94,082	 	-		 	-		 	94,082	
Total Fund Balances	 	118,144	    2,200,146		    4,116,055		    6,434,345	
Total Liabilities, Deferred Inflows									
and Fund Balances	 $	139,220	 $ 2,203,842	 $ 6,586,714	 $ 8,929,776	

Amelia Walk  Community Development  District         RECONCILIATION OF TOTAL GOVERNMENTAL FUND BALANCES TO NET POSTION OF GOVERNMENTAL ACTIVITIES
September 30, 2019

Total Governmental Fund Balances	$	6,434,345	
Amounts reported for governmental activities in the Statement of Net Position			
are different because:			
Capital assets (land, $881,686, construction in progress, $12,123,344, recreational			
facilities and amenities, $2,714,152, and equipment, $76,237, net of			
accumulated depreciation, $(1,048,459)) used in governmental activities are not			
current financial resources and, therefore, are not reported in the funds.		14,746,960	
Deferred outflows of resources are not current uses; and therefore, are not			
reported at the fund level.		11,419	
Long-term liabilities, including bonds payable, $(20,240,000), and capital leases			
payable, $(47,948), net of bond discount, net, $133,731, are not due and payable			
in the current period and, therefore, are not reported at the fund level.	(	20,154,217)	
Unavailable revenues are recognized as deferred inflows at the fund level, but			
this amount is recognized as revenues at the government-wide level.		354,264	
Accrued interest expense for long-term debt is not a current financial use and,			
therefore, is not reported in the funds.		(444,924)	

Net Position of Governmental Activities	
 $		
947,847	

Amelia Walk Community Development District STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES – GOVERNMENTAL FUNDS
For the Year Ended September 30, 2019

						Total	
				Debt	Capital	Governmental	
	 	General		 	Service		 	Projects		 	Funds		
Revenues						
Special assessments	$	649,607	$	1,218,978	$	-	$	1,868,585	
Developer contributions		-		-	591,603	591,603	
Investment earnings		576		36,836	130,306	167,718	
Miscellaneous revenues	 	41,835	 	-	 	-	 	41,835
 	2,669,741	
Total Revenues	 	692,018	 	1,255,814	 	721,909		
Expenditures							
Current							
General government		153,399		-	-	153,399	
Physical environment		263,196		-	-	263,196	
Culture and recreation		83,011		-	-	83,011	
Capital outlay		159,730		-	6,972,747	7,132,477	
Debt service							
Principal		22,057		370,000	-	392,057	
Interest		371		828,392	-	828,763	
Other debt service costs	 	-	 	-	 	363,675	 	363,675
 	9,216,578

 	(6,546,837)	
Total Expenditures	 	681,764	 	1,198,392	 	7,336,422		
Excess of revenues over expenditures	 	10,254	 	57,422	    (6,614,513)		
Other Financing Sources/(Uses)							
Inception of capital lease		70,005		-	-	70,005	
Issuance of long-term debt		-		931,716	7,368,284	8,300,000	
Bond discount	 	-	 	-		(127,807)	 	(127,807)
 	8,242,198

1,695,361	
Total Other Financing Sources/(Uses)	 	70,005	 	931,716		7,240,477		
Net change in fund balances		80,259		989,138	625,964		
Fund Balances - October 1, 2018

Fund Balances - September 30, 2019	

   $ 	 	37,885

118,144	

  $		 	1,211,008

2,200,146	 	3,490,091

   $4,116,055	 	4,738,984

  $	6,434,345	

See accompanying notes.

RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
For the Year Ended September 30, 2019

Net Change in Fund Balances - Total Governmental Funds	$	1,695,361	
Amounts reported for governmental activities in the Statement of Activities are		
different because:		
Governmental funds report capital outlays as expenditures. However, in the Statement		
of Activities, the cost of those assets are allocated over their estimated useful lives		
as depreciation. This is the amount that capital outlay, $7,132,477, exceeded		
depreciation, $(95,640), and loss on disposal, $(27,541), in the current period.	7,009,296	
The issuance of long-term debt is reflected as an other financing source at the fund level.		
At the government-wide level the issuance of new debt increases liabilities.	(8,370,005)	
Repayments of principal are expenditures in the governmental funds, but the		
repayments reduce long-term liabilities in the Statement of Net Position.	392,057	
Bond discount is reflected as an other financing use at the fund level, but is a contra		
liability at the government-wide level.	127,807	
At the fund level, revenues are recognized when they become available,		
however, revenues are recognized when they are earned at the		
government-wide level. This is the amount of the change in earned		
revenue that was not available.	354,264	
Bond discount and the deferred amount on refunding are amortized as interest expense		
at the government-wide level over the life of the bonds.	(4,627)	
The change in accrued interest on long-term liabilities is recorded in the Statement		
of  Activities but  not in the  fund financial   statements.	 	

Change in Net Position of Governmental Activities	$	(158,904)	
	
1,045,249	

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES – BUDGET AND ACTUAL – GENERAL FUND
For the Year Ended September 30, 2019

								Variance with	
								Final Budget	
	Original		Final					Positive	
	  Budget			  Budget			  	Actual			 (Negative)	
Revenues									
Special assessments	$ 648,449		$ 648,449		$	649,607		$	1,158	
Investment earnings	100		100			576		476	
Miscellaneous revenues	 	500		 	500	 	41,835		 	41,335	
Total Revenues	649,049		649,049	692,018		42,969	

Expenditures									
Current									
General government	142,620		142,620			153,399		(10,779)	
Physical environment	310,410		310,410			263,196		47,214	
Culture and recreation	96,019		96,019			83,011		13,008	
Capital outlay	100,000		100,000			159,730		(59,730)	
Debt service									
Principal	-		-			22,057		(22,057)	
Interest	 	-		 	-	 	371		 	(371)	
Total Expenditures	649,049		649,049	681,764		(32,715)	

Excess of revenues over expenditures	
 	-		
 	-	
 	10,254		
 	10,254	
Other Financing Sources/(Uses)									
Inception of capital lease	 	-		 	-	 	70,005		 	70,005	
Net Change in Fund Balances	-		-			80,259		80,259	
Fund Balances - October 1, 2018	 	-		 	-	 	37,885		 	37,885	
Fund Balances - September 30, 2019	 $	-		 $	-		 $		118,144		 $	118,144	

NOTES TO FINANCIAL STATEMENTS
September 30, 2019

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The financial statements of the District have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The District's more significant accounting policies are described below.

Reporting Entity

The District was established on December 22, 2005, by County Ordinance 2005-81, Florida, of Nassau County, Florida pursuant to the Uniform Community Development District Act of 1980, otherwise known as Chapter 190, Florida Statutes. The District was established for  the purposes of financing and managing the acquisition, construction, maintenance and operation of the infrastructure necessary for community development within its jurisdiction. The District is authorized to issue bonds for the purpose, among others, of financing, funding, planning, establishing, acquiring, constructing or re-constructing, enlarging or extending, equipping, operating and maintaining water management, bridges or culverts, district roads, landscaping, street lights and other basic infrastructure projects within or without the boundaries of the Amelia Walk Community Development District. The District is governed by a five-member Board of Supervisors who are elected for four year terms. The District operates within the criteria established by Chapter 190, Florida Statutes.

As required by GAAP, these financial statements present Amelia Walk Community Development District (the primary government) as a local unit of special-purpose government. The reporting entity for the District includes all functions of government in which the District’s Board exercises oversight responsibility including, but not limited to, financial interdependency, selection of governing authority, designation of management, significant ability to influence operations and accountability for fiscal matters.

Based upon the application of the above-mentioned criteria, as set forth in Governmental Accounting Standards, the District has identified no component units.

Measurement Focus and Basis of Accounting

The basic financial statements of the District are composed of the following:

	Government-wide financial statements

	Fund financial statements

	Notes to financial statements

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Measurement Focus and Basis of Accounting (Continued)

Government-wide Financial Statements

Government-wide financial statements report all non-fiduciary information about the reporting government as a whole. These statements include all the governmental activities of the primary government. The effect of interfund activity has been removed from these statements.

Governmental activities are supported by special assessments, developer contributions, intergovernmental revenues and interest. Program revenues are netted with program expenses in the Statement of Activities to present the net cost of each program.

Amounts paid to acquire capital assets are capitalized as assets, rather than reported as an expenditure. Proceeds of long-term debt are recorded as liabilities in the government-wide financial statements, rather than as an other financing source.

Amounts paid to reduce long-term indebtedness of the reporting government are reported as a reduction of the related liability, rather than as an expenditure.

Fund Financial Statements

The underlying accounting system of the District is organized and operated on the basis of separate funds, each of which is considered to be a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled.

Fund financial statements for the primary government’s governmental funds are presented after the government-wide financial statements. These statements display information about major funds individually.

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

2.	Measurement Focus and Basis of Accounting (Continued)

b. Fund Financial Statements (Continued) Governmental Funds
The District implemented the Governmental Accounting Standards Board Statement
54 – Fund Balance Reporting and Governmental Fund Type Definitions. The Statement requires the fund balance for governmental funds to be reported in classifications that comprise a hierarchy based primarily on the extent to which the government is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. The classifications include non-spendable, restricted, committed, assigned and unassigned.

The District has various policies governing the fund balance classifications.
Nonspendable Fund Balance – This classification consists of amounts that cannot be spent because they are either not in spendable form or are legally or contractually required to be maintained intact.
Restricted Fund Balance – This classification includes amounts that can be spent only for specific purposes stipulated by constitution, external resource providers, or through enabling legislation.
Committed Fund Balance – This classification consists of amounts that can only be used for specific purposes pursuant to the constraints imposed by a formal action of  the government’s highest level of decision making authority.
Assigned Fund Balance – This classification consists of the Board of Supervisors’ intent to be used for specific purposes, but are neither restricted nor committed. The assigned fund balances can also be assigned by the District’s management company.
Unassigned Fund Balance – This classification is the residual classification for the government’s general fund and includes all spendable amounts not contained in the other classifications. Unassigned fund balance is considered to be utilized first when  an expenditure is incurred for purposes for which amounts in any of those unrestricted fund balance classifications could be used.
Fund Balance Spending Hierarchy – When restricted, committed, assigned, and unassigned fund balances are combined in a fund, qualified expenditures are paid first from restricted or committed fund balance, as appropriate, then assigned and finally unassigned fund balances.
Expenditures generally are recorded when a liability is incurred, as under accrual accounting. Interest associated with the current fiscal period is considered to be an accrual item and so has been recognized as revenue of the current fiscal period.

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Measurement Focus and Basis of Accounting (Continued)

b. Fund Financial Statements (Continued) Governmental Funds (Continued)
Under the current financial resources measurement focus, only current assets  and current liabilities are generally included on the balance sheet. The reported  fund  balance is considered to be a measure of “available spendable  resources”.  Governmental fund operating statements present increases (revenues  and  other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they are said to present a summary of sources and uses  of  “available spendable resources” during a period.

Because of their spending measurement focus, expenditure recognition  for governmental fund types excludes amounts represented by non-current liabilities. Since they do not affect net current assets, such long-term amounts are not recognized as governmental fund type expenditures or fund liabilities.

Amounts expended to acquire capital assets are recorded as expenditures in  the year  that resources are expended, rather than as fund assets. In addition, the proceeds of long-term debt are recorded as an other financing source rather than as a fund liability.

Debt service expenditures are recorded only when payment is due.

Basis of Presentation

Governmental Major Funds

General Fund – The General Fund is the District’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund.

Debt Service Fund – Accounts for debt service requirements to retire the special assessment bonds which were used to finance the construction of District infrastructure improvements. The bond series are secured by a pledge of all available special assessment revenues in any fiscal year related to the improvements and a first lien on  the special assessment revenues from the District lien on all acreage of benefited land.

Capital Projects Fund – Accounts for construction of infrastructure improvements within the District.

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Basis of Presentation (Continued)
Non-current Governmental Assets/Liabilities
GASB Statement 34 requires that non-current governmental assets, such as  infrastructure and improvements, and non-current governmental liabilities, such as general obligation bonds, be reported in the governmental activities column in the government-wide Statement of Net Position.

Assets, Liabilities, and Net Position or Equity
Cash and Investments
Florida Statutes require state and local governmental units to deposit monies with financial institutions classified as "Qualified Public Depositories," a multiple financial institution pool whereby groups of securities pledged by the various financial institutions provide common collateral from their deposits of public funds. This pool is provided as additional insurance to the federal depository insurance and allows for additional assessments against the member institutions, providing full insurance for public  deposits.
The District is authorized to invest in those financial instruments as established by Section 218.415, Florida Statutes. The authorized investments consist of:
Direct obligations of the United States Treasury;
The Local Government Surplus Funds Trust or any intergovernmental investment pool authorized pursuant to the Florida Interlocal Cooperative Act of 1969;
Interest-bearing time deposits or savings accounts in authorized qualified public depositories;
Securities and Exchange Commission, registered money market funds with the highest credit quality rating from a nationally recognized rating agency.
Cash equivalents include time deposits and certificates of deposit with original maturities of three months or less and held in a qualified public depository as defined by Section 280.02, Florida Statutes.
Restricted Assets
Certain assets of the District and a corresponding liability or portion of net position is classified as restricted assets on the statement of net position because  their  use  is limited either by law through constitutional provisions or enabling legislation, or by restrictions imposed externally by creditors. In a fund with both restricted and unrestricted assets, qualified expenses are considered to be paid first from restricted net position and then from unrestricted net position.

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

4. Assets, Liabilities, and Net Position or Equity (Continued)
Capital Assets
Capital assets, which include land, construction in progress, equipment and infrastructure, are reported in the governmental activities column in the government-wide statements.
The District defines capital assets as assets with an initial, individual cost of $5,000 or more and an estimated useful life in excess of two years. The valuation basis for all assets is historical cost.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend its useful life are not capitalized.

Major outlays for capital assets and improvements are capitalized as projects are constructed.
Depreciation of capital assets is computed and recorded by utilizing the straight-line method.  Estimated useful lives of  the various classes of depreciable capital assets are  as follows:
Equipment	5 years
Recreational facilities	30 years
Deferred Inflows/Outflows of Resources
Deferred outflows of resources is the consumption of net position by the government that is applicable to a future reported period. Deferred amount on refunding is amortized and recognized as a component of interest expense over the life of the bond.
Deferred inflows of resources represent an acquisition of net position that applies to a future reporting period(s) and so will not be recognized as an inflow of resources (revenue) until then. The District only has one item that qualifies for reporting in this category. Deferred revenues are reported only in the governmental funds balance sheet. This amount is deferred and recognized as an inflow of resources in the period that amounts become available.
Unamortized Bond Discounts

Bond discounts associated with the issuance of revenue bonds are amortized according to the straight-line method of accounting. For financial reporting, unamortized bond discounts are netted against the applicable long-term debt.

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
4. Assets, Liabilities, and Net Position or Equity (Continued)
Budgets
Budgets are prepared and adopted after public hearings for the governmental funds, pursuant to Chapter 190, Florida Statutes. The District utilizes the same basis of accounting for budgets as  it does for revenues and expenditures in its various funds.  The legal level of budgetary control is at the fund level. All budgeted appropriations lapse at year end. Formal budgets are adopted for the general and debt service funds.
NOTE	B	–		RECONCILIATION	OF	GOVERNMENT-WIDE	AND	FUND	FINANCIAL STATEMENTS
1. Explanation of Differences Between the Governmental Fund Balance Sheet and the Government-wide Statement of Net Position
“Total fund balances” of the District’s governmental funds, $6,434,345, differs from “net position” of governmental activities, $947,847, reported in the Statement of Net Position. This difference primarily results from the long-term economic focus of the Statement of Net Position versus the current financial resources focus of the Governmental Fund Balance Sheet. The effect of the differences is illustrated below.
Capital related items
When capital assets (infrastructure and improvements that are to be used in governmental activities) are purchased or constructed, the cost of those assets is reported as expenditures
in governmental funds.	However, the Statement of Net assets among the assets of the District as a whole.	Position included those capital	
Land	$	881,686	
Construction in progress	12,123,344	
Recreational facilities	2,714,152	
Equipment	76,237	
Accumulated depreciation	 	(1,048,459)	
Total	$	14,746,960	
Deferred outflows of resources		
Deferred outflows of resources applicable to the District’s	governmental activities are not	
current financial resources and therefore, are not reported as fund deferred outflows of resources.

Deferred amount on refunding	$	11,419

NOTE	B	–	RECONCILIATION	OF	GOVERNMENT-WIDE	AND	FUND	FINANCIAL STATEMENTS (CONTINUED)
Explanation of Differences Between the Governmental Fund Balance Sheet and the Government-wide Statement of Net Position (Continued)
Long-term debt transactions
Long-term liabilities net of discounts applicable to the District’s governmental activities are not due and payable in the current period and accordingly are not reported as fund liabilities. All liabilities (both current and long-term) are reported in the Statement of Net Position.

Bonds payable	$ (20,240,000)	
Capital lease payable	(47,948)	
Bond discount, net	 	133,731	
Total	$ (20,154,217)	
Deferred inflows of resources
Revenues unavailable to meet current obligations are recognized as deferred inflows at the fund level, however, revenues are recognized when earned at the government-wide level.
Deferred revenues	$	354,264
Accrued interest
Accrued liabilities in the Statement of Net Position differ from the amount reported in governmental funds due to the accrued interest on bonds.
Accrued interest	$	(444,924)
Explanation of Differences Between the Governmental Fund Operating Statements and the Statement of Activities
The “net change in fund balances” for government funds, $1,695,361, differs from the “change in net position” for governmental activities, $1,045,249, reported in the Statement of Activities. The differences arise primarily from the long-term economic focus of the Statement of Activities versus the current financial resources focus of the governmental funds. The effect of the differences is illustrated below.
Capital related items
When capital assets that are to be used in governmental activities are purchased or constructed, the resources expended for those assets are reported as expenditures in governmental funds. However, in the Statement of Activities, the costs of those assets are allocated over their estimated useful lives as depreciation.

Depreciation	$	(95,640)	
Loss on disposal	(27,541)	
Capital asset acquisitions	 	7,132,477	
Total	$	7,009,296	

NOTE	B	–	RECONCILIATION	OF	GOVERNMENT-WIDE	AND	FUND	FINANCIAL STATEMENTS (CONTINUED)
2. Explanation of Differences Between the Governmental Fund Operating Statements and the Statement of Activities (Continued)
Deferred inflows of resources
Revenues are recognized when they become available at the fund level, however, revenues are recognized when they are earned at the government-wide level. This is the change in deferred revenues for the year
Deferred revenues	$	354,264
Long-term debt transactions
Repayments of principal are reported as expenditures in the governmental funds and, thus, have the effect of reducing fund balance because current financial resources have been  used.

Principal payments	$	392,057
Some expenses reported in the Statement of Activities do not require the use of current financial resources, therefore, are not reported as expenditures in governmental funds.
Increase in accrued interest payable	$	(158,904)
The bond discount is an other financing use at the fund level and is reflected as a contra liability at the government-wide level.
Bond discount, net	$	127,807

The issuance of long-term debt and capital leases are reflected as an other financing source at the fund level, however at the government -wide level they increase liabilities.

Issuance of long-term debt	$	8,300,000	
Capital lease inception	 	70,005	
Total	$	8,370,005	
Bond discount and deferred amount on refunding are amortized at the government-wide level as interest over the life of the bonds.

Bond discount	$	649	
Deferred amount on refunding	 	3,978	
Total	$	4,627	

NOTE C – CASH AND INVESTMENTS

All deposits are held in qualified public depositories and are included on the accompanying balance sheet and statement of net position as cash and investments.

Custodial Credit Risk – Deposits

Custodial credit risk is the risk that in the event of a bank failure, the District’s deposits may not be returned. The investment policy of the District follows the provisions of Chapter 280, Florida Statutes regarding deposits and investments. As of September 30, 2019, the District’s bank balance was $73,046 and the carrying value was $69,686. The District controls its exposure to custodial credit risk because it maintains all deposits in a qualified public depository in accordance with the provisions of Chapter 280, Florida Statutes, which means that all deposits are fully insured by Federal Depositors Insurance or collateralized under Chapter 280, Florida Statutes.

As of September 30, 2019, the District had the following investments and maturities.

 	Investment			Maturity	Fair Value	

U.S. Bank Managed Money Market		
N/A		
$	
40,621	
First American Government						
Obligation Fund Cl Y		24 days*	 	7,677,787	
				 $		7,718,408	
* Weighted Average Maturity

The District categorizes its fair value measurements within the fair value hierarchy recently 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.

Based on the criteria in the preceding paragraph, the investments in US Bank Managed Money Market and First American Government Obligation Cl Y are Level 1 assets.

NOTE C – CASH AND INVESTMENTS (CONTINUED)

Interest Rate Risk

The District monitors investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates.

Credit Risk

The Local Government Surplus Funds Trust is an authorized investment under Section 218.415, Florida Statutes. The District’s investments in the state investment pool and government loans are limited by state statutory requirements and bond compliance. As of September 30, 2019, the District's investment in the First American Government Obligation Fund Class Y was rated AAAm by Standard & Poor's.

Concentration of Credit Risk

The District places no limit on the amount it may invest in any one issuer. The investment in First American Government Obligation Fund Class Y is 99%, and the Managed Money Market Funds are 1 % of total investments.

The types of deposits and investments and their level of risk exposure as of  September  30, 2019 were typical of these items during the fiscal year then ended. The District considers any decline in fair value for certain investments to be temporary. In addition, the District has the ability to hold investments to maturity which may have fair values less than cost. The District’s investments are recorded at fair value.

NOTE D – SPECIAL ASSESSMENT REVENUES

Special assessment revenues recognized for the 2018-2019 fiscal year were levied in October 2018. All assessments are payable on November 1 or as soon  as  the  assessment  roll  is certified and delivered to the Tax Collector. Per Section 197.162, Florida Statutes,  discounts  are allowed for early payment at the rate of 4% in November, 3% in December, 2% in January, and 1% in February. Assessments paid in March are without discount. All unpaid assessments become delinquent as of April 1. Virtually all unpaid assessments that were on the assessment roll certified and delivered to the Tax Collector are collected via the sale of tax certificates on or prior to June 1. For certain parcels, the District bills and collects the annual assessments.

NOTE E – CAPITAL ASSETS

Capital Asset activity for the year ended September 30, 2019 was as follows:

Governmental Activities:
Capital assets, not being depreciated:

Balance	Balance
October 1,	September 30,
 	2018	 Additions	 Deletions 	2019	

Land	$	881,686		$	-	$	-	$	881,686	
Construction in progress	 	5,150,597		  6,972,747	 	- 12,123,344	
Total Capital Assets, Not Being Depreciated	6,032,283		6,972,747	-	13,005,030	

Capital assets, being depreciated:				
Equipment	6,232		70,005	-	76,237	
Recreational facilities and amenities	2,669,290		89,725	(44,863)	2,714,152	
Total Capital Assets Being Depreciated	2,675,522		159,730	(44,863)	2,790,389	

Less accumulated depreciation for: Equipment	

(6,232)		

(5,542)	-	(11,774)	
Recreational facility and amenities	(968,909)		(90,098)	17,322	(1,041,685)	
Total Accumulated Depreciation	(975,141)		(95,640)	17,322	(1,053,459)	

Governmental Activities Capital Assets	
 $	7,732,664		
$ 7,036,837	$ (27,541) $ 14,741,960	

Depreciation of $95,640 was charged to culture and recreation during the year.

NOTE F – LONG-TERM DEBT

The following is a summary of activity in the long-term debt of the District for the year ended September 30, 2019:

Long-term debt at October 1, 2018	$	12,310,000	
Bond proceeds	8,300,000	
Principal payments	 	(370,000)	
Long-term debt at September 30, 2019	20,240,000	
Bond discount, net	 	(133,731)	
Long-term debt at September 30, 2019, net	$	20,106,269	

NOTE F – LONG-TERM DEBT (CONTINUED)		
Long-term debt is comprised of the following:		
Special Assessment Revenue Bonds		
$1,675,000 Series 2012A-1 Special Assessment Bonds due in annual principal installments beginning May 2012, maturing in May 2037. Interest at a rate of 5.50% is due May 1 and November 1 beginning May 2012.	

$	1,335,000	
$3,875,000 Series 2016 Special Assessment Bonds due in annual principal installments beginning November 2018, maturing in November 2047. Interest rates ranging from 4.25% to 6.00% is due May 1 and November 1 beginning May 2016.	

$	3,470,000	
$7,135,000	Series	2018A	Special	Assessment	Bonds		
(Assessment Area 3A) due in annual principal installments beginning November 2019, maturing in November 2048. Interest rates ranging from 4.00% to 5.375% is due May 1 and
November 1 beginning November 2018.	$	7,135,000
$8,300,000 Series 2018A Special Assessment Bonds (Assessment Area 3B) due in annual principal installments beginning November 2020, maturing in November 2049. Interest rates ranging from 4.375% to 5.375% is due May 1 and
November 1 beginning May 2019.	$	8,300,000
The annual requirements to amortize the principal and interest of long-term debt outstanding as of September 30, 2019 are as follows:

Year Ending									
  September 30,	 	Principal		 	Interest		 	Total		
2020	$	210,000		$	1,068,851		$	1,278,851	
2021		340,000			1,056,803			1,396,803	
2022		355,000			1,014,432			1,369,432	
2023		380,000			1,025,338			1,405,338	
2024		390,000			1,007,678			1,397,678	
2025-2029		2,250,000			4,732,971			6,982,971	
2030-2034		2,900,000			4,080,415			6,980,415	
2035-2039		3,525,000			3,196,521			6,721,521	
2040-2044		4,170,000			2,161,651			6,331,651	
2045-2049		5,190,000			855,237			6,045,237	
2050

Totals		530,000			14,244			544,244	
	
$		
20,240,000		
$		
20,214,141		
$		
40,454,141	

NOTE F – LONG-TERM DEBT (CONTINUED)

Summary of Significant Bonds Resolution Terms and Covenants

Special Assessment Revenue Bonds
Significant Bond Provisions

The Series 2018A Bonds (Assessment Area 3A) and (Assessment Area 3B) were issued to currently refund and redeem the Special Assessment Bonds, Series 2012A-3 and pay a portion of the costs of the 2018 and 2018A Projects.  The District levies special assessments pursuant  to Section 190.022, Florida Statutes and the assessment rolls are approved by resolutions of    the District Board. The collections are to be strictly accounted for and applied to the debt service of the bond series for which they were levied. The District covenants to levy special assessments in annual amounts adequate to provide for payment of  principal and interest  on  the bonds. Payment of principal and interest is dependent on the money available in the debt service fund and the District’s ability to collect special assessments levied.

The Series 2012A-3, 2016 and 2018A Bonds are subject to redemption at the option of the District prior to their maturity, in whole or in part, in the manner provided by the Bond Indenture. The Bonds are also subject to extraordinary mandatory redemption prior to maturity in the manner determined by the Bond Registrar if certain events occur as outlined in the Trust Indenture.

The Trust Indenture established certain amounts be maintained in a reserve account.  In  addition, the Trust 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 agrees to levy special assessments in annual amounts adequate to provide payment of debt service and to meet the reserve requirements.
Depository Funds

The bond resolution establishes certain funds and determines the order in which revenues are   to be deposited into these funds.
The following is a schedule of required reserve deposits as of September 30, 2019:

Reserve		Reserve	
Balance		Requirement	
Special Assessment Bonds, Series 2012A-3	$	60,861	$	61,758	
Special Assessment Bonds, Series 2016	$	260,850	$	254,850	
Special Assessment Bonds, Series 2018A (Assessment Area 3A)	$	360,427	$	360,427	
Special Assessment Bonds, Series 2018A (Assessment Area 3B)	$	559,650	$	559,650	

NOTE G – CAPITAL LEASE PAYABLE
The District entered into a capital lease agreement with Municipal Capital Finance for the purchase of exercise equipment. The lease agreement qualifies as  capital  leases  for  accounting purposes and, therefore, have been recorded at the present value of their future minimum lease payments at the time of acquisition.
The District entered into a four-year lease agreement for the equipment on May 8, 2019 with
$20,912 due at closing and payments of $1,217 beginning September 8, 2019. The equipment being leased has a cost to the District of $70,005 and a carrying value of $64,643 at September 30, 2019.
The future minimum lease obligation and the net present value of these minimum lease payments as of September 30, 2019 were as follows:

Year Ending		Lease	
 	September 30,		  Payment		
2020	$	14,604	
2021		14,604	
2022		14,604	
2023		13,387	
Less: amount representing interest
Present value of minimum lease payments	 	(9,251)	
	 $		47,948	

NOTE H – 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. Settled claims from these risks have not exceeded commercial insurance coverage over the past three years.
NOTE I – ECONOMIC DEPENDENCY AND RELATED PARTIES

A substantial portion of the District’s activity is dependent upon the continued involvement of the developers, the loss of which could have a materially adverse effect on the District. At September 30, 2019, the developers owned or controlled a large portion of the assessable property located within the District boundaries. Some members of the Board of Supervisors are employed by the developer or its affiliates at September 30, 2019.
NOTE J – SUBSEQUENT EVENTS
On November 1, 2019, the District made a $10,000 prepayment on the Series 2012A-1 Bonds,  a $150,000 prepayment on the Series 2016 Bonds and a $110,000 prepayment on the Series 2018A Bonds (Assessment Area 3A). On February 1, 2020, the District made a $65,000 prepayment on the Series 2016 Bonds and a $45,000 prepayment on the Series 2018A Bonds (Assessment Area 3A).

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
Amelia Walk Community Development District Nassau County, Florida

We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of Amelia Walk Community Development District, as of and for the year ended September 30, 2019, and the related notes to the financial statements, and have issued our  report thereon dated June 17, 2020.

Internal Control Over Financial Reporting

In planning and performing our audit, we considered Amelia Walk Community Development District's internal control over financial reporting to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of Amelia Walk Community Development District’s internal control. Accordingly, we do not express an opinion on the effectiveness of Amelia Walk Community Development District's internal control over financial reporting.

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 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 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.

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Board of Supervisors
Amelia Walk Community Development District

Compliance and Other Matters

As part of obtaining reasonable assurance about whether Amelia Walk Community Development District's financial statements are free of 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.

The District’s responses to the findings identified in our audit are described in the accompanying Management Letter. We did not audit the District’s responses and, accordingly, we express no opinion on them.

Purpose of this Report

The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not  to provide  an opinion  on  the  effectiveness of the entity’s internal control or on compliance. This report is  an  integral  part  of  an  audit performed in accordance with Government Auditing  Standards  in  considering  the  entity’s  internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Berger, Toombs, Elam, Gaines & Frank Certified Public Accountants PL
Fort Pierce, Florida June 17, 2020

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MANAGEMENT LETTER

To the Board of Supervisors
Amelia Walk Community Development District Nassau County, Florida

Report on the Financial Statements

We have audited the financial statements of the Amelia Walk Community Development District as of and for the year ended September 30, 2019, and have issued our report thereon dated   June 17, 2020.

Auditor’s Responsibility

We conducted our audit in accordance with auditing standards generally accepted in the United States; 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 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 and our Independent Auditor’s Report on an examination conducted in accordance with AICPA Professionals 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, 2020, 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 financial audit report. There were no findings or recommendations in the preceding audit.

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 Amelia Walk Community Development District has met one or more of the conditions described in Section 218.503(1), Florida Statutes, and to identify the specific conditions met. In connection with our audit, we determined that Amelia Walk Community Development District did not meet any of the conditions described in Section 218.503(1) Florida Statutes.

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To the Board of Supervisors
Amelia Walk Community Development District

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 Amelia Walk Community Development District. It is management’s responsibility to monitor the Amelia Walk Community Development District’s financial condition; our financial condition assessment was based in part on the representations made by management and the review of the financial information provided by the same as of September 30, 2019.

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.

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 warrants the attention of those charged with governance. In connection with our audit, we did note one such finding.

2019-01

Finding: The actual expenditures in the General Fund exceeded the budget  due to a capital  lease which is a violation of Section 189.016, Florida Statutes.

Response: Management will review spending to ensure that expenditures do not exceed appropriations in the future.

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, 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.

Berger, Toombs, Elam, Gaines & Frank Certified Public Accountants PL
Fort Pierce, Florida June 17, 2020

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INDEPENDENT ACCOUNTANT’S REPORT/COMPLIANCE WITH SECTION 218.415, FLORIDA STATUTES

To the Board of Supervisors
Amelia Walk Community Development District Nassau County, Florida

We have examined Amelia Walk Community Development District's compliance with Section 218.415, Florida Statutes during the year ended September 30, 2019. Management is responsible for Amelia Walk Community Development District’s compliance with those requirements. Our responsibility is to express an opinion on Amelia Walk Community Development 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, accordingly, included examining, on a test basis, evidence about Amelia Walk Community Development 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 Amelia Walk Community Development District’s compliance with the specified requirements.

In our opinion, Amelia Walk Community Development District complied, in all material respects, with the aforementioned requirements during the year ended September 30, 2019.

Berger, Toombs, Elam, Gaines & Frank Certified Public Accountants PL
Fort Pierce, Florida June 17, 2020

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