Amelia Walk Community Development District

ANNUAL FINANCIAL REPORT

September 30, 2020

Amelia Walk Community Development District ANNUAL FINANCIAL REPORT
September 30, 2020 TABLE OF CONTENTS
Page Number
FINANCIAL SECTION

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	16-31
INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS	32-33
MANAGEMENT LETTER	34-35
INDEPENDENT ACCOUNTANTS’ REPORT/COMPLIANCE WITH
SECTION 218.415, FLORIDA STATUTES	36

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, 2020, 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, 2020, 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 July 20, 2021 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 July 20, 2021
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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, 2020.

The District’s total assets and deferred outflows of resources exceeded by total liabilities by $2,794,439, (net position). Net investment in capital assets was $14,642,471. Unrestricted net position was $(12,568,076). Restricted net position was $720,044.

Governmental activities revenues totaled $3,654,135 while governmental activities expenses totaled $1,807,543.

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	
		2020	2019	

Current assets		

$	274,700	$	1,248,294	
Restricted assets		2,616,796	7,677,786	
Capital assets, net of depreciation		 	19,861,261	 	14,746,960 	
Total Assets		 	22,752,757	 	23,673,040 	
Deferred outflows of resources		 	10,770	 	11,419 	
Current liabilities		1,180,479	2,806,999	
Non-current liabilities		 	18,788,609	 	19,929,613 	
Total Liabilities		 	19,969,088	 	22,736,612 	

Net position - net investment in			
capital assets	14,642,471	10,303,106	
Net position-restricted	720,044	1,464,404	
Net position-unrestricted	 	(12,568,076) 	 	(10,819,663) 	

Total Net Position	$	2,794,439	$	947,847

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

The decrease in restricted assets and increase in capital assets was related to the capital project activity in the current year.

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

The increase in net investment in capital assets is mainly related to the capital additions 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
	 	2020			2019	

Program Revenues				
Charges for services	$	2,872,621		$	1,868,585	
Grants and contributions	725,712		945,867	
General Revenues				
Investment earnings	38,168	167,718	
Other revenues	 	17,634 	 	41,835 	
Total Revenues	 	3,654,135 	 	3,024,005 	
Expenses				
General government	154,802	153,399	
Physical environment	405,464	263,196	
Culture and recreation	191,315	206,192	
Interest and other charges	 	1,055,962 	 	1,355,969 	
Total Expenses	 	1,807,543 	 	1,978,756 	
Change in Net Position	1,846,592	1,045,249	
Net Position - Beginning of Year	 	947,847 	 	(97,402)	
Net Position - End of Year	  $	2,794,439 	  $	947,847 	

The increase in charges for services relates to increased debt service special assessments and prepayments in the current year.

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

The increase in physical environment is related to the increase in repairs and maintenance in the current year.

The decrease in interest and other charges is related to the decreased debt outstanding in the current year and the cost of issuance for the new debt 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, 2020 and 2019.

Governmental Activities

 	Description		 	2020		 	2019	

Land	$	881,686	$	881,686	
Construction in progress	17,343,613	12,123,344	
Recreational facility and amenities	2,714,152	2,714,152	
Equipment	76,237	76,237	
Accumulated depreciation	 	(1,154,427)	 	(1,048,459)	

Total Capital Assets (Net)

  $	19,861,261 

  $	14,746,960 

 	

During the year, $5,220,269 was added to construction in progress and depreciation was
$105,968.

General Fund Budgetary Highlights

The budget exceeded actual expenditures primarily because reserve and landscape maintenance expenditures were lower than anticipated.

The September 30, 2020 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, 2020 for the Series 2012A-1 Bonds was $1,260,000.

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, 2020 was $2,795,000.

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, 2020 was
$6,875,000.

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, 2020 was $8,300,000.

In May 2019, the District entered into a capital lease agreement for equipment valued at
$70,005. As of September 30, 2020, a balance of $37,277 was still outstanding.

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 2021.

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.

Amelia Walk Community Development District STATEMENT OF NET POSITION
September 30, 2020

ASSETS	
Current Assets	
Cash and cash equivalents	
Investments	
Accrued interest receivable	
Due from others	
Due from other governments	
Due from developer	
Deposits	
Prepaid expenses	
Total Current Assets	
Non-Current Assets	
Restricted assets	
Investments	
Capital assets, not being depreciated	
Land	
Construction in progress	
Capital assets, being depreciated	
Recreation facilities and amenities	
Equipment	
Less: accumulated depreciation	
Total Non-Current Assets	
Total Assets	

Governmental Activities

$	21,157	
145,929	
11	
16,150	
3,995	
79,865	
515	
 	7,078 	
 	274,700 	

2,616,796

881,686	
17,343,613	

2,714,152	
76,237	
 	(1,154,427)	
 	22,478,057 	
 	22,752,757 	

DEFERRED OUTFLOWS OF RESOURCES	
Deferred amount on refunding, net	

LIABILITIES	
Current Liabilities	
Accounts payable and accrued expenses	
Contracts/retainage payable	
Deposits	
Accrued interest	
Capital lease payable	
Bonds payable	
Total Current Liabilities	
Non-Current Liabilities	
Bonds payable	
Capital lease payable	
Total Non-Current Liabilities	
Total Liabilities	

38,624	
368,270	
200	
423,781	
14,604	
 	335,000 	
 	1,180,479 	

10,770

NET POSITION	
Net investment in capital assets	
Restricted for debt service	
Unrestricted	
Total Net Position	

14,642,471	
720,044	
 	(12,568,076)	
  $	2,794,439 	

18,765,936	
 	22,673 	
 	18,788,609 	
19,969,088	

See accompanying notes.
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Amelia Walk Community Development District STATEMENT OF ACTIVITIES

Net (Expense)	
Revenues and	
Changes in	
evenues	Net Position	
Capital Grants and	Governmental
Contributions	Activities	

For the Year Ended September 30, 2020

Functions/Programs	Expenses	Services	
Primary government	
Governmental Activities	
General government	$	(154,802)	$	163,082	
Physical environment	(405,464)	427,153	
Culture and recreation	(191,315)	89,912	
Interest and other charges	 	(1,055,962) 	2,192,474 	
Total Governmental Activities   $  (1,807,543)    $	2,872,621 	

$	-	$	8,280	
725,712	747,401	
-	(101,403)	
 	- 	 	1,136,512 	
  $	725,712 	1,790,790	

Program R Charges for

General Revenues	
Investment earnings	
Miscellaneous revenues	
Total General Revenues	

38,168	
 	17,634 	
 	55,802 	

Changes in Net Position	1,846,592	
Net Position - October 1, 2019	 	947,847 	
Net Position - September 30, 2020	  $	2,794,439 	

See accompanying notes.

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Amelia Walk Community Development District BALANCE SHEET –
GOVERNMENTAL FUNDS
September 30, 2020

Debt	
 	Service		

Capital	
 	Projects		

ASSETS	
Cash and cash equivalents	
Investments	
Accrued interest receivable	
Due from other funds	
Due from developer	
Due from other	
Due from other governments	
Prepaid expenses	
Deposits	
Restricted assets	
Investments, at fair value	
Total Assets	

$	21,157	
145,929	
-	
2,350	
-	
16,150	
1,487	
7,078	
515	

$	-	
-	
10	
-	
-	
-	
2,508	
-	
-	

$	-	
-	
1	
-	
79,865	
-	
-	
-	
-	

 	- 	2,326,178 	29	
   $	194,666        $ 2,328,696       $	37	

 	General	

LIABILITIES AND FUND BALANCES	
Liabilities:	
Accounts payable and accrued expenses	
Contracts/retainage payable	
Due to other funds	
Deposits	
Total Liabilities	

$	38,624	
-	
-	
 	200 	
 	38,824 	

$	-	
-	
2,350	
 	- 	
 	2,350 	

$	-	
368,270	
-	
 	- 	
 	368,270 	

Fund Balances:	
Nonspendable - prepaid expenses/deposits	
Restricted - capital projects	
Restricted - debt service	
Unassigned	
Total Fund Balances	
Total Liabilities and Fund Balances	

7,593	
-	
-	
 	148,249 	
 	155,842 	
   $	194,666 	

-	
2,214	
-	
 	- 	
 	2,214 	
   $	370,484 	

-
- 2,326,346
 	- 
 	2,326,346 
   $ 2,328,696 

Total	
Governmental	
 	Funds		

$	21,157	
145,929	
11	
2,350	
79,865	
16,150	
3,995	
7,078	
515	

0,618 

 	2,616,796 	
  $ 2,893,846 	

0,484 

$	38,624	
368,270	
2,350	
 	200 	
 	409,444 	

7,593	
2,214	
2,326,346	
 	148,249 	
 	2,484,402 	
  $ 2,893,846 	

Amelia Walk Community Development District RECONCILIATION OF TOTAL GOVERNMENTAL FUND BALANCES
TO NET POSTION OF GOVERNMENTAL ACTIVITIES
September 30, 2020

Total Governmental Fund Balances

Amounts reported for governmental activities in the Statement of Net Position	
are different because:	

Capital assets (land, $881,686, construction in progress, $17,343,613, recreational	
facilities and amenities, $2,714,152, and equipment, $76,237, net of accumulated depreciation, $(1,154,427)) used in governmental activities are
not current financial resources and, therefore, are not reported in the funds.	

Deferred outflows of resources are not current uses; and therefore, are not	
reported at the fund level.	
Long-term liabilities, including bonds payable, $(19,230,000), and capital leases	
payable, $(37,277), net of bond discount, net, $129,064, are not due and payable	
in the current period and, therefore, are not reported at the fund level.	

$	2,484,402

19,861,261

10,770

(19,138,213)

Accrued interest expense for long-term debt is not a current financial use and,	
therefore, is not reported in the funds.	

 	(423,781)

Net Position of Governmental Activities	 $	2,794,439 

Amelia Walk Community Development District STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES – GOVERNMENTAL FUNDS
For the Year Ended September 30, 2020

Total	
Governmental	
 	Funds		

Debt	
 	Service		

Capital	
 	Projects		

 	General	

Revenues	
Special assessments	
Developer contributions	
Investment earnings	
Miscellaneous revenues	
Total Revenues	

$   680,147
- 134

$	-

$	2,192,474	
-	
11,582	
 	- 	
 	2,204,056 	

$	2,872,621	
1,079,976	
38,168	
 	17,634 	
 	4,008,399 	

1,079,976
26,452

Expenditures	
Current	
General government	
Physical environment	
Culture and recreation	
Capital outlay	
Debt service	
Principal	
Interest	
Total Expenditures	

See accompanying notes.

 	17,634 
 	697,915 

154,802	
405,464	
85,347	
-	

10,671	
 	3,933 	
 	660,217 	

 	- 
 	1,106,428 

-	
-	
-	
-	

154,802	
405,464	
85,347	
5,220,269	

-
-

1,010,000	
 	1,067,856 	
 	2,077,856 	

Net change in fund balances	37,698	126,200	(4,113,841)	(3,949,943)	
Fund Balances - October 1, 2019	 	118,144 	 	2,200,146 	 	4,116,055 	 	6,434,345 	
Fund Balances - September 30, 2020	   $ 155,842 	  $	2,326,346 	   $	2,214 	  $	2,484,402 	

- 5,220,269

-	
 	- 	
 	5,220,269 	

1,020,671	
 	1,071,789 	
 	7,958,342 	

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, 2020

Net Change in Fund Balances - Total Governmental Funds

Amounts reported for governmental activities in the Statement of Activities are	
different because:	

The change in accrued interest on long-term liabilities is recorded in the Statement	
of Activities but not in the fund financial statements.	

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, $5,220,269, exceeded	
depreciation, $(105,968), in the current period.	5,114,301	

$ (3,949,943)

Repayments of principal are expenditures in the governmental funds, but the		
repayments reduce long-term liabilities in the Statement of Net Position.	1,020,671	

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.	

(5,316)

 	21,143 

Change in Net Position of Governmental Activities	 $ 1,846,592 

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES – BUDGET AND ACTUAL – GENERAL FUND
For the Year Ended September 30, 2020

Variance with	
Final Budget	
Positive	
(Negative)	

Original	Final

Revenues	
Special assessments	
Investment earnings	
Miscellaneous revenues	
Total Revenues	

$ 676,474		
$ 676,474		
$	680,147	
100		100		134	
 	500 		 	500 		 	17,634 	
677,074		677,074		697,915	

$	3,673	
34	
 	17,134 	
20,841	

Budget	Budget	Actual

159,671	
405,279	
97,520	

159,671	
405,279	
97,520	

154,802	
405,464	
85,347	

4,869	
(185)	
12,173	

Expenditures	
Current	
General government	
Physical environment	
Culture and recreation	
Debt service	
Principal	
Interest	
Total Expenditures	

10,670	10,670	1	
 	3,934 	3,934      		
677,074	677,074	66	

(1)	
 	1 	
16,857	

0,671
3,933 
0,217

 	- 	118,144 	118,144 	
  $		- 	   $		155,842 	  $		155,842 	

Net Change in Fund Balances		-	-	37,698	37,698 Fund Balances - October 1, 2019	 	- 
Fund Balances - September 30, 2020	 $	- 

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

The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. 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.

Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are considered to be available when they are collected within the current period or soon 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.

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 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.
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, $2,484,402, differs from “net position” of governmental activities, $2,794,439, 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	17,343,613	
Recreational facilities	2,714,152	
Equipment	76,237	
Accumulated depreciation	 	(1,154,427)	
Total	$	19,861,261	
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	$	10,770 

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		$ (19,230,000)	
Capital lease payable		(37,277)	
Bond discount, net		 	129,064 	
Total
Accrued interest		$ (19,138,213)	
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	$	(423,781)
Explanation of Differences Between the Governmental Fund Operating Statements and the Statement of Activities
The “net change in fund balances” for government funds, $(3,949,943), differs from the “change in net position” for governmental activities, $1,846,592, 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	$	(105,968)	
Capital asset acquisitions	 	5,220,269 	
Total	$	5,114,301 	

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	$	1,020,671
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.

Decrease in accrued interest payable	$	21,143
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	 	(4,667)	
Total	$	(5,316)	

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, 2020, the District’s bank balance was $46,259 and the carrying value was $21,157. 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, 2020, the District had the following investments and maturities.

 	Investment		Maturity	Fair Value

U.S. Bank Managed Money Market	N/A First American Government

$	145,929

Obligation Fund	44 days*	 	2,616,796 
  $	2,762,725 
* 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 Fund 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, 2020, the District's investment in the First American Government Obligation Fund 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 is 95%, and the U. S. Bank Managed Money Market Funds are 5% of total investments.

The types of deposits and investments and their level of risk exposure as of September 30, 2020 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 2019-2020 fiscal year were levied in October 2019. 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, 2020 was as follows:

Balance	Balance
October 1,	September 30,

Governmental Activities:
Capital assets, not being depreciated:	 	2019	 Additions	 Deletions 	2020		
Land	$	881,686	$	-	$	-	$	881,686	
Construction in progress	 	12,123,344 	5,220,269 	- 	17,343,613 	
Total Capital Assets, Not Being Depreciated	 	13,005,030 	5,220,269 	- 	18,225,299 	
Capital assets, being depreciated:		
Equipment	76,237	-	-	76,237	
Recreational facilities and amenities	 	2,714,152 	- 	- 	2,714,152 	
Total Capital Assets Being Depreciated	 	2,790,389 	- 	- 	2,790,389 	
Less accumulated depreciation for: Equipment	
(11,774)	(14,001)	-	(25,775)	
Recreational facility and amenities	 	(1,041,685) 	(91,967) 	- 	(1,133,652)	
Total Accumulated Depreciation	 	(1,053,459) 	(105,968) 	- 	(1,159,427)	
Governmental Activities Capital Assets	  $  14,741,960     $ 5,114,301     $	- $ 19,856,261 	

Depreciation of $105,968 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, 2020:
Long-term debt at October 1, 2019	$ 20,240,000 Principal payments		 	(1,010,000)

Long-term debt at September 30, 2020	19,230,000	
Bond discount, net	 	(129,064)	
Long-term debt at September 30, 2020, net	$ 19,100,936 	

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. Current portion is $45,000.	

$	1,260,000	
$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. Current portion is $50,0000.	

$	2,795,000	
$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. Current portion is
$115,000.	

$	6,875,000	
$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. Current portion is $125,000.	

$	8,300,000	

NOTE F – LONG-TERM DEBT (CONTINUED)
The annual requirements to amortize the principal and interest of long-term debt outstanding as of September 30, 2020 are as follows:
Year Ending
 	September 30, 	 	Principal		 	Interest		 	Total		
2021	$	335,000	$	1,010,978	$	1,345,978	
2022	345,000	973,931	1,318,931	
2023	365,000	980,319	1,345,319	
2024	380,000	963,484	1,343,484	
2025	395,000	945,819	1,340,819	
2026-2030	2,270,000	4,415,078	6,685,078	
2031-2035	2,935,000	3,747,613	6,682,613	
2036-2040	3,435,000	2,867,660	6,302,660	
2041-2045	4,185,000	1,848,077	6,033,077	
2046-2050	 	4,585,000 	 	567,688 	 	5,152,688 	
Totals	  $	19,230,000 	  $	18,320,647 	  $	37,550,647 	
  	
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.

NOTE F – LONG-TERM DEBT (CONTINUED)
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, 2020:

	 	Balance		  Requirement 	
Special Assessment Bonds, Series 2012A-3	$	60,861	$	61,758	
Special Assessment Bonds, Series 2016	$	231,800	$	209,100	
Special Assessment Bonds, Series 2018A (Assessment Area 3A)	$	355,641	$	352,013	
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 $50,462 at September 30, 2020.

The future minimum lease obligation and the net present value of these minimum lease payments as of September 30, 2020 were as follows:

Year Ending	Lease
September 30,	Payment

2021	$	14,604	
2022	14,604	
2023	13,387	
Less: amount representing interest	 	(5,318)	
Present value of minimum lease payments	  $	37,277 	

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, 2020, 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, 2020.
NOTE J – SUBSEQUENT EVENTS
On November 1, 2020, the District made a $10,000 prepayment on the Series 2012A-1 Bonds, a $120,000 prepayment on the Series 2016 Bonds, and a $95,000 prepayment on the Series 2018A Bonds (Assessment Area 3A). On February 1, 2021, the District made a $50,000 prepayment on the Series 2016 Bonds and a $35,000 prepayment on the Series 2018A Bonds (Assessment Area 3A). On May 1, 2021, the District made a $20,000 prepayment on the Series 2012A-1 Bonds, a $5,000 prepayment on the Series 2016 Bonds, and a $40,000 prepayment on the Series 2018A Bonds (Assessment Area 3A).

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

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, 2020, and the related notes to the financial statements, and have issued our report thereon dated July 20, 2021.

Internal Control Over Financial Reporting

In planning and performing our audit, we considered Amelia Walk Community Development District's internal control over financial reporting (internal control) as a basis for designing 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.

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 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 July 20, 2021

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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, 2020, and have issued our report thereon dated July 20, 2021.

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 July 20, 2021, 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. The following findings or recommendations were included in  the preceding financial audit report.

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.

Status: The finding was corrected in the current year.

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To the Board of Supervisors
Amelia Walk Community Development District

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.

Pursuant to Sections 10.554(1)(i)5.b. and 10.556(8), Rules of the Auditor General, we applied financial condition assessment procedures for 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, 2020.

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 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, 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 July 20, 2021

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INDEPENDENT ACCOUNTANTS’ 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, 2020. 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, 2020.

Berger, Toombs, Elam, Gaines & Frank Certified Public Accountants PL
Fort Pierce, Florida July 20, 2021

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