Eden Hills Community Development District ANNUAL FINANCIAL REPORT
September 30, 2021

Eden Hills Community Development District ANNUAL FINANCIAL REPORT
September 30, 2021 TABLE OF CONTENTS
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	16-28
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	29-30
MANAGEMENT LETTER	31-33
INDEPENDENT ACCOUNTANTS’ REPORT/COMPLIANCE WITH
SECTION 218.415, FLORIDA STATUTES	34

REPORT OF INDEPENDENT AUDITORS

To the Board of Supervisors
Eden Hills Community Development District Lake Alfred, Florida
Report on the Financial Statements

We have audited the accompanying financial statements of Eden Hills Community Development District as of and for the fiscal year ended September 30, 2021, and related notes to the financial statements, which collectively comprise the District’s basic financial statements as listed in the table of contents.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Accounting Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
- 1 -

To the Board of Supervisors
Eden Hills 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 of Eden Hills Community Development District as of September 30, 2021, 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

Management’s Discussion and Analysis

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 the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economical or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted principally of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with the 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 27, 2022 on our consideration of the District’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations 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 Eden Hills Community Development District’s internal control over financial reporting and compliance.

Berger, Toombs, Elam, Gaines & Frank Certified Public Accountants PL
Fort Pierce, Florida June 27, 2022

- 2 -

Management’s discussion and analysis of Eden Hills 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 private-sector companies. 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 is 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 financed by the District include general government, physical environment and debt service.

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.

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.

The government-wide financial statements and the fund financial statements provide different pictures of the District. The government-wide financial statements provide an overall picture of the District’s financial standing. These statements are comparable to private-sector companies and give a good understanding of the District’s overall financial health and how the District paid for the various activities, or functions, provided by the District. All assets of the District, including capital assets are reported in the statement of net position. All liabilities, including principal outstanding on bonds are included. The statement of activities includes depreciation on all long lived assets of the District, but transactions between the different functions of the District have been eliminated in order to avoid “doubling up” the revenues and expenses. The fund financial statements provide a picture of the major funds of the District. In the case of governmental activities, outlays for long lived assets are reported as expenditures and long-term liabilities, such as general obligation bonds, are not included in the fund financial statements. To provide a link from the fund financial statements to the government-wide financial statements, reconciliations are provided from the fund financial statements to the government- wide financial statements.

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 fiscal year ended September 30, 2021.

The District’s assets exceeded liabilities by $2,290,384 (net position). Net investment in capital assets was $2,292,581. Restricted net position was $10,453 and unrestricted net position was $(12,650).

Governmental activities revenues totaled $2,747,843, while governmental activities expenses totaled $467,899.

Financial Analysis of the District

The following schedule provides a summary of the assets, liabilities and net position of the District and is presented by category for comparison purposes.

Net Position

Governmental Activities 2021	2020

Current assets	$	126,598	$	12,000	
Restricted assets	144,465	-	
Capital assets		5,251,449 		783,122 	
Total Assets		5,522,512 		795,122 	

Current liabilities	
328,260	
784,682	
Non-current liabilities		2,903,868 		- 	
Total Liabilities		3,232,128 		784,682 	

Net Position
Net investment in capital assets	

2,292,581	

783,122	
Restricted net position	10,453	-	
Unrestricted		(12,650)		(772,682)	

Total Net Position

 $	2,290,384 

 $	10,440 

 	

The increase in current assets is related to the increase in due from developer in the current year.

The increase in capital assets is related to the capital projects activity in the current year.

The increase in restricted assets and non-current liabilities is related to the issuance of long- term debt in the current year.

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

Financial Analysis of the District (Continued)
The following schedule provides a summary of the changes in net position of the District and is presented by category for comparison purposes.
Change In Net Position

Governmental Activities
	2021		2020	
Program Revenues				
Charges for services	$	103,913		$	-	
Operating contributions	79,953		100,000	
Capital contributions	2,563,947		-	
Investment income		30 			- 	
Total Revenues		2,747,843 			100,000 	

Expenses				
General government	106,261	89,560	
Physical environment	1,950	-	
Interest and other charges		359,688 		- 	
Total Expenses		467,899 		89,560 	

Change in Net Position	
2,279,944	
10,440	
Net Position - Beginning of Period		10,440 		- 	
Net Position - End of Period	 $	2,290,384 	 $	10,440 	

The increase in capital contributions is related to the capital project started in the current year.

The increase in charges for services is related to special assessments were initiated in the current year.

The increase in interest and other charges is mainly related to the cost of issuance of long-term debt in the current year.

Capital Assets Activity

The following schedule provides a summary of the District’s capital assets as of September 30, 2021 and 2020.

Governmental Activities
2021		2020		
Land	$	1,450,000		$	-	
Construction in progress		3,801,449 		- 	
Total	 $	5,251,449 	 $	- 	

Current year activity consisted of additions of $1,450,000 of land and $3,801,449 of construction in progress.
General Fund Budgetary Highlights
Actual expenditures were less than the budgeted expenditures because engineering fees and maintenance costs were lower than anticipated.
There were no amendments to the September 30, 2021 budget.
Debt Management

Governmental Activities debt includes the following:

In November 2020, the District issued $2,950,000 Series 2020 Special Assessment Bonds. These bonds were issued to finance a portion or all of the costs of the planning, financing, acquisition, construction, equipping and installation of the Series 2020 Project. As of September 30, 2021, the balance outstanding was $2,950,000.

Economic Factors and Next Year’s Budget
Eden Hills Community Development District issued Special Assessment Bonds, Series 2022, in February 2022 to provide funds to pay all or a portion of the costs of the planning, financing, acquisition, construction, equipping and installation of the Series 2022 Project. The District cannot determine the affect the bond issuance will have on operations for the year ended September 30, 2022.

Request for Information
The financial report is designed to provide a general overview of Eden Hills Community Development 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 the Eden Hills Community Development District 219 East Livingston Street, Orlando, Florida, 32801.

Eden Hills Community Development District STATEMENT OF NET POSITION
September 30, 2021

ASSETS	
Current Assets	
Cash	
Due from developer	
Prepaid expenses	
Total Current Assets	
Non-Current Assets:	
Restricted assets:	
Investments	
Capital Assets, not being depreciated	
Land	
Construction in progress	
Total Non-Current Assets	
Total Assets	

Governmental Activities

$	23,548	
92,875	
	10,175 	
	126,598 	

LIABILITIES	
Current Liabilities	
Accounts payable and accrued expenses	
Contracts/retainage payable	
Accrued interest	
Bonds payable	
Total Current Liabilities	
Non-Current Liabilities:	
Bonds payable, net	
Total Liabilities	

144,465

1,450,000	
      3,801,449 	
      5,395,914 	
      5,522,512 	

11,663	
213,878	
47,719	
       55,000 	
       328,260 	

	2,903,868 
	3,232,128 

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

2,292,581	
10,453	
	(12,650)	
 $	2,290,384 	

See accompanying notes to financial statements.

- 9 -

Eden Hills Community Development District STATEMENT OF ACTIVITIES
For the Fiscal Year Ended September 30, 2021

$	(106,261)	
$	45,809	
$	79,953	
$	-	
(1,950)	841	-	2,563,947	
	(359,688)		57,263 		- 		- 	
 $	(467,899)	 $	103,913 	 $	79,953 	 $	2,563,947 	

$	19,501	
2,562,838	
	(302,425)	
2,279,914	

Net (Expenses)	
Revenues and	
Changes in	
 Net Position 	
Governmental	
Activities	

	Program Revenues		
Charges for	Operating Grants	Capital Grants	
Services	and Contributions	and Contributions	

Functions/Programs	
Governmental Activities	
General government	
Physical environment	
Interest and other charges	
Total Governmental Activities	

Expenses

General Revenues	
Investment income	

	30 

Change in Net Position	2,279,944

Net Position - October 1, 2020	
Net Position - September 30, 2021	

	10,440 
 $	2,290,384 

See accompanying notes to financial statements.

- 10 -

Eden Hills Community Development District BALANCE SHEET –
GOVERNMENTAL FUNDS
September 30, 2021

Total	
Governmental	
	Funds		

Debt	Capital

ASSETS	
Cash	
Due from developer	
Prepaid expenses	
Restricted assets	
Investments, at fair value	
Total Assets	

$	22,586	
7,772	
10,175	

$	-	
-	
-	

$	962	
85,103	
-	

$	23,548	
92,875	
10,175	

LIABILITIES AND FUND BALANCES	
LIABILITIES	
Accounts payable and accrued expenses	
Contracts/retainage payable	
Total Liabilities	

$	11,663	$	-	$	-	$	11,663	
	- 		- 		213,878 		213,878 	
	11,663 		- 		213,878 		225,541 	

FUND BALANCES	
Nonspendable - prepaid expenses	
Restricted for debt service	
Unassigned	
Total Fund Balances	

10,175	
-	
     18,695 	
     28,870 	

-	
144,210	
        - 	
    144,210 	

-	
-	
   (127,558)	
   (127,558)	

10,175	
144,210	
   (108,863)	
    45,522 	

	144,465 	
 $	271,063 	

	- 		144,210 		255 	
 $	40,533 	 $	144,210 	 $	86,320 	

	General	 	Service	 	Projects	

Total Fund Balances and Fund Balances

 $	40,533 

 $	144,210 

 $	86,320 

 $	271,063 

   

See accompanying notes to financial statements.

Eden Hills Community Development District RECONCILIATION OF TOTAL GOVERNMENTAL FUND BALANCES
TO NET POSITION OF GOVERNMENTAL ACTIVITIES
September 30, 2021

Total Governmental Fund Balances

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

$	45,522

Capital assets, land, $1,450,000, and construction in progress, $3,801,449,	
used in governmental activities are not current financial resources	
and therefore, are not reported at the fund level.	

5,251,449

Long-term liabilities, including bonds payable, $(2,950,000), and bond	
premium, net, $(8,868), are not due and payable in the current period	
and therefore, are not reported at the fund level.	(2,958,868)	

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

	(47,719)

Net Position of Governmental Activities	 $	2,290,384 

See accompanying notes to financial statements.

Eden Hills Community Development District STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES – GOVERNMENTAL FUNDS
For the Fiscal Year Ended September 30, 2021

Total
Debt	Capital	Governmental

Revenues	
Developer contributions	
Special assessments	
Investment earnings	
Total Revenues	

$	-	
57,263	
	10 	
	57,273 	

$ 2,563,947	
-	
	20 	
	2,563,967 	

$	2,643,900	
103,913	
	30 	
	2,747,843 	

	General 	
$	79,953	
46,650	
	- 	
	126,603 	

Expenditures		
Current		
General government	106,223	
Physical environment	1,950	
Capital outlay	-	
Debt service:		
Interest	-	
Other		- 	
Total Expenditures		108,173 	

-	
-	
-	

106,261	
1,950	
4,468,327	

	38		
	-		
	4,468,327		
49,946	-	49,946	
	- 		262,276 		262,276 	
	49,946 		4,730,641 		4,888,760 	

	7,327 	
	(2,166,674)	
	(2,140,917)	

	Service	 	Projects	 	Funds	

Other Financing Sources/(Uses)		
Transfers in	-	
Transfers out	-	
Bond proceeds	-	
Bond premium			- 	
Total Other Financing Sources/(Uses)			- 	

-	
(85,138)	
222,021	
       - 	
   136,883 	

85,138	
-	
2,727,979	
     9,121 	
   2,822,238 	

85,138	
(85,138)	
2,950,000	
      9,121 	
   2,959,121 	

Excess of revenues over/(under)		
expenditures		18,430 	

Net change in fund balances	18,430	

144,210	655,564	818,204

Fund Balances - October 1, 2020		10,440 	

	-  	(783,122) 	(772,682)

Fund Balances - September 30, 2021	 $	28,870 	 $ 144,210   $  (127,558)	

 $	45,522 

See accompanying notes to financial statements.

RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
For the Fiscal Year Ended September 30, 2021

Net Change in Fund Balances - Total Governmental Funds	$

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

The issuance of long-term debt and bond premium are recorded as an other	
financing source at the fund level, however, the proceeds increase liabilities	
at the government-wide level.	

Bond premium is recognized as an other financing source in the year the bonds are	
issued at the fund level, however, the premium is combined with bonds payable	
at the government-wide level and amortized over the life of the bonds.	

Governmental funds report capital outlays as expenditures. However, in the	
Statement of Activities, the cost of those assets is allocated over their	
estimated useful lives as depreciation. This is the amount of capital outlay	
in the current year.	4,468,327	

818,204

(2,959,121)

253

In the Statement of Activities, interest is accrued on outstanding bonds;		
whereas in governmental funds, interest expenditures are reported when		
due. This is the change in accrued interest during the current period.		(47,719)	

Change in Net Position of Governmental Activities	 $	2,279,944 

See accompanying notes to financial statements.

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES – BUDGET AND ACTUAL – GENERAL FUND
For the Fiscal Year Ended September 30, 2021

Variance with	
Final Budget	
Positive	
(Negative)	

Original	
Budget	

Final	
Budget	

Actual

Revenues	
Developer contributions	
Special assessments	
Total Revenues	
Expenditures	
Current	
General government	
Physical environment	
Total Expenditures	

$ 184,965

$ 184,965

$  79,953

$	(105,012)

	- 		- 		46,650 		46,650 
	184,965 		184,965 		126,603 		(58,362)

130,875	130,875	106,223	24,652
	54,090 		54,090 		1,950 		52,140 
	184,965 		184,965 		108,173 		76,792 

18,430	18,430	

Net Change in Fund Balances	-	-

Fund Balances - October 1, 2020		- 		- 		10,440 		10,440 

Fund Balances - September 30, 2021

 $	- 

 $	- 

 $  28,870 

 $	28,870 

See accompanying notes to financial statements.

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 October 21, 2019, pursuant to the Uniform Community Development District Act of 1980, Chapter 190, Florida Statutes, as amended (the "Act"), and by Ordinance No 1422-19 of the City Commission of the City of Lake Alfred, Florida, as a Community Development District. 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 district roads, landscaping, and other basic infrastructure projects within or outside the boundaries of the Eden Hills Community Development District. The District is governed by a five member Board of Supervisors. All the Supervisors are employed by the Developer. The District operates within the criteria established by Chapter 190, Florida Statutes.

As required by GAAP, these financial statements present the Eden Hills Community Development District (the primary government) as a stand-alone 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 Board, The Financial Reporting Entity, 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 developer contributions 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 or expenses, as appropriate. 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 classifies fund balance according to 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 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.

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 – For all governmental funds except special revenue funds, 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.

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Measurement Focus and Basis of Accounting (Continued)

b. Fund Financial Statements (Continued) Governmental Funds (Continued)
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.

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.

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. 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.

Basis of Presentation (Continued)
Governmental Major Funds (Continued)
Debt Service Fund – Accounts for debt service requirements to retire certain capital improvement revenue bonds which were used to finance the construction of District infrastructure improvements and finance certain additional improvements. The bond series is secured by a pledge of debt service special assessment revenues in any fiscal year related to the improvements. A lien is placed on all benefited land in relationship to the debt outstanding.
Capital Projects Fund – The Capital Projects Fund accounts for the construction of infrastructure improvements within the District.
Non-current Governmental Assets/Liabilities
GASB Statement 34 requires that non-current governmental assets, such as land and improvements, and non-current governmental liabilities, such as general obligation bonds and due to developer 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.

Assets, Liabilities, and Net Position or Equity (Continued)

Cash and Investments (Continued)

Cash equivalents include time deposits and all highly liquid debt instruments with original maturities of three months or less and held in a qualified public depository as defined by Section 280.02, Florida Statutes.

Capital Assets

Capital assets, which include land and construction in progress, are reported in the applicable governmental activities column.

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 one year. 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.

Deferred Inflows of Resources

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 time that qualifies for reporting in the category. Unavailable 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.

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. A formal budget is adopted for the general fund. As a result, deficits in the budget columns of the accompanying financial statements may occur.

NOTE	B	–		RECONCILIATION	OF	GOVERNMENT-WIDE	AND	FUND	FINANCIAL STATEMENTS

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, $45,522, differs from “net position” of governmental activities, $2,290,384, 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 (construction in progress, 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 Position included those capital assets among the assets of the District as a whole.

Construction in progress	$	3,801,449	
Land		1,450,000	
Total	$	5,251,449	

Long-term debt transactions

Long-term liabilities 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. Balances at September 30, 2021 were:

Bonds payable		$ (2,950,000)	
Bond premium, net			(8,868)	
Total

Accrued interest

Accrued liabilities in the Statement of	

Net	$ (2,958,868)

Position differ from the amount reported in	
governmental funds due to the accrued interest on bonds.

Accrued interest	$	(47,719)

NOTE	B	–		RECONCILIATION	OF	GOVERNMENT-WIDE	AND	FUND	FINANCIAL STATEMENTS (CONTINUED)
Explanation of Differences Between the Governmental Fund Operating Statements and the Statement of Activities
The “net change in fund balances” for government funds, $818,204, differs from the “change in net position” for governmental activities, $2,279,944, 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 cost of those assets is allocated over their estimated useful lives and reported as depreciation. As a result, fund balances decrease by the amount of financial resources expended, whereas net position decrease by the amount of depreciation charged for the year.
Capital outlay	$	4,468,327 

Long-term debt transactions
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.
Net change in accrued interest payable	$	(47,719)

Proceeds from the issuance of long-term debt and bond premiums are recognized as an other financing source at the fund level. These proceeds increase liabilities at the government-wide level.

Issuance of long-term debt	$	(2,950,000)
Bond premium		(9,121)
Total	$	(2,959,121)

Amortization of the bond discount does not require the use of current resources and therefore is not reported in the governmental funds.
Amortization of bond premium	$	253

NOTE C – CASH AND INVESTMENTS

All deposits are held in qualified public depositories and are included on the accompanying balance sheet 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 to it. The District does not have a formal deposit policy for custodial credit risk, however, they follow the provisions of Chapter 280, Florida Statutes regarding deposits and investments. As of September 30, 2021, the District's bank balance was $148,460 and the carrying value was $23,548. Exposure to custodial credit risk was as follows. The District 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, 2021, the District had the following investments and maturities:

Investment	Maturities	Fair Value
First American Treasury Obligations Fund	*13 days	$ 144,465

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 uses 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 investment listed above is a Level 1 asset. Interest Rate Risk
The District does not have a formal investment policy that limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates.

NOTE C – CASH AND INVESTMENTS (CONTINUED)

Credit Risk

The District's investments in treasury funds, are limited by state statutory requirements and bond compliance. The District has no investment policy that would further limit its investment choices. As of September 30, 2021, the District’s investments in First American Treasury Obligations 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 fund. The investments in First American Treasury Obligations Fund represent 100% of District’s total investments.

The types of deposits and investments and their level of risk exposure as of September 30, 2021 were typical. The District considers any decline in fair value for certain investments to be temporary.

NOTE D – CAPITAL ASSETS

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

Governmental Activities:
Capital assets, not being depreciated:

Balance	Balance
October 1,	September 30,
	2020	 	Additions	  Deletions	 	2021	

Land

$	-	$

1,450,000	$

-	$	1,450,000

Construction in progress		783,122  	3,018,327  	-  	3,801,449 

Total Capital Assets, not depreciated

 $	783,122 

 $	4,468,327 

 $	- 

 $	5,251,449 

   

NOTE E – LONG-TERM DEBT

The following is a summary of debt activity for the District for the year ended September 30, 2021:
Balance	Balance

October 1,
2020	Additions	Reductions

September 30,
2021

Governmental Activites:	 	
Series 2020	$	-	$ 2,950,000		$	-		$	2,950,000	
Series 2020 Bond Premium	-	9,121		(253)		8,868	

Bonds Payable, Net	
$	
-	
$	
2,959,121	
$	
(253)	
$	
2,958,868	
District debt is comprised of the following at September 30, 2021:

Special Assessment Revenue Bonds

$2,950,000 Series 2020 Special Assessment Bonds maturing through 2051, at various interest rates between 2.750% and
4.125%, payable May 1 and November 1.	$	2,950,000

The annual requirements to amortize the principal and interest of bonded debt outstanding as of September 30, 2021 are as follows:

Year Ending
September 30,	Principal	Interest	Total

2022	$	55,000		$	114,525		$	169,525	
2023	55,000		113,013		168,013	
2024	60,000		111,500		171,500	
2025	60,000		109,850		169,850	
2026	60,000		108,200		168,200	
2027-2031	345,000		509,638		854,638	
2032-2036	415,000		440,575		855,575	
2037-2041	510,000		349,975		859,975	
2042-2046	625,000		237,188		862,188	
2047-2051	765,000		97,350		862,350	
Totals	$	2,950,000		$	2,191,814		$	5,141,814	

NOTE E – LONG-TERM DEBT (CONTINUED)

Summary of Significant Bonds Resolution Terms and Covenants

Special Assessment Bonds, Series 2020

Significant Bond Provisions

The Series 2020 Bonds are subject to redemption at the option of the District prior to their maturity, in whole or in part, at any time on or after May 1, 2030, at a price equal to the par amount of the respective Bonds thereof, together with accrued interest to the date of redemption. The Series 2020 Bonds are subject to extraordinary mandatory redemption prior to maturity in the manner determined by the Bond Registrar if certain events occurred 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. A description of the significant funds, including their purposes, is as follows:

Reserve Funds – The Series 2020 Reserve Account was funded from the proceeds of the Series 2020 Bonds in an amount equal to the maximum annual debt service required for Series 2020 Bonds at the date of issue until the Reserve Account Release Conditions have been satisfied as established in the Trust Indenture. Once the Release Conditions have been satisfied as established in the Trust Indenture the Reserve Account shall be reduced to an amount equal to 50% of the maximum annual debt service with respect to the then outstanding principal amount. Monies held in the reserve accounts will be used only for the purposes established in the Trust Indenture.

The following is a schedule of required reserve balances as of September 30, 2021:

Reserve
Balance		
Reserve
Requirement	
Series 2020 Special Assessment Bonds	$	86,038		$	86,038	

NOTE F – RELATED PARTY TRANSACTIONS

All voting members of the Board of Supervisors are affiliated with the Developer. The District received $2,643,900 in contributions from the Developer for the fiscal year ended September 30, 2021. Additionally, the District has a balance due from the Developer, $92,875.

NOTE G – ECONOMIC DEPENDENCY

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

NOTE H – RISK MANAGEMENT
The government is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; and natural disasters for which the government carries commercial insurance. The District has not filed any claims under this commercial coverage.

NOTE I – SUBSEQUENT EVENT

Subsequent to year end, in February 2022, the District issued Series 2022, Special Assessment bonds for $10,465,000 to provide funds to pay all or a portion of the costs of the planning, financing, acquisition, construction, equipping and installation of the Series 2022 Project.

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
Eden Hills Community Development District Lake Alfred, 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 Eden Hills Community Development District, as of and for the fiscal year ended September 30, 2021, and the related notes to the financial statements, and have issued our report thereon dated June 27, 2022.

Internal Control Over Financial Reporting

In planning and performing our audit, we considered Eden Hills 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 Eden Hills Community Development District’s internal control. Accordingly, we do not express an opinion on the effectiveness of Eden Hills 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.

- 29 -

Board of Supervisors
Eden Hills Community Development District

Compliance and Other Matters

As part of obtaining reasonable assurance about whether Eden Hills 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.

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 27, 2022

- 30 -

MANAGEMENT LETTER
To the Board of Supervisors
Eden Hills Community Development District Lake Alfred, Florida
Report on the Financial Statements
We have audited the financial statements of the Eden Hills Community Development District as of and for the fiscal year ended September 30, 2021, and have issued our report thereon dated June 27, 2022.
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 that report, which is dated June 27, 2022, 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 made 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, requires us to apply appropriate procedures and communicate the results of our determination as to whether or not Eden Hills 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 the Eden Hills 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 conditions assessment procedures as of September 30, 2021 for the Eden Hills Community Development District. It is management’s responsibility to monitor the Eden Hills 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.
- 31 -

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

Specific Information
The information provided below was provided by management and has not been audited; therefore, we do not express an opinion or provide any assurance on the information.
As required by Section 218.39(3)(c), Florida Statutes, and Section 10.554(1)(i)6, Rules of the Auditor General, the Eden Hills Community Development District reported:
The total number of district employees compensated in the last pay period of the District’s fiscal year: 0
The total number of independent contractors to whom nonemployee compensation was paid in the last month of the District’s fiscal year: 12
All compensation earned by or awarded to employees, whether paid or accrued, regardless of contingency: N/A
All compensation earned by or awarded to nonemployee independent contractors, whether paid or accrued, regardless of contingency: $3,471,095
Each construction project with a total cost of at least $65,000 approved by the District that is scheduled to begin on or after October 1, 2020, together with the total expenditures for such project: The Series 2020 Project $213,965.
A budget variance based on the budget adopted under Section 189.016(4), Florida Statutes, before the beginning of the fiscal year being reported if the District amends a final adopted budget under Section 189.016(6), Florida Statutes: The budget was not amended.
As required by Section 218.39(3)(c), Florida Statutes, and Section 10.554(1)(i)8, Rules of the Auditor General, the Eden Hills Community Development District reported:
The rate or rates of non-ad valorem special assessments imposed by the District: The Debt Service Fund, $403.26.
The amount of special assessments collected by or on behalf of the District: Total Special Assessments collected was $57,263.
The total amount of outstanding bonds issued by the District and the terms of such bonds: Governmental Activities Series 2020 Bonds, $2,950,000, maturing May 2051.

- 32 -

Additional Matters

Section 10.554(1)(i)3., Rules of the Auditor General, requires us to communicate noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit, we noted no 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 June 27, 2022

- 33 -

INDEPENDENT ACCOUNTANTS’ REPORT/COMPLIANCE WITH SECTION 218.415 FLORIDA STATUTES

To the Board of Supervisors
Eden Hills Community Development District Lake Alfred, Florida

We have examined Eden Hills Community Development District's compliance with Section 218.415, Florida Statutes during the fiscal year ended September 30, 2021. Management is responsible for Eden Hills Community Development District’s compliance with those requirements. Our responsibility is to express an opinion on Eden Hills 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 Eden Hills 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 Eden Hills Community Development District’s compliance with the specified requirements.

In our opinion, Eden Hills Community Development District’s complied, in all material respects, with the aforementioned requirements during the fiscal year ended September 30, 2021.

Berger, Toombs, Elam, Gaines & Frank Certified Public Accountants PL
Fort Pierce, Florida June 27, 2022

- 34 -