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10/14/2013 Agenda0 �S 4 ;Z�tedar yammock Community Development District C� vs offSupervis ?rank Vaselew Chairman Calvin Teague, District Manager Tom Cook ice Chairman Dan Cox, District Counsel G 1,14 lellan, Assistant Secretary Sam Marshall, District Engineer La y Minamyer, Assistant Secretary Bob Nocera, Assistant Secretary Regular Meeting Agenda Monday, October 14, 2013 — 3:00 p.m. 1. Roll Call 2. Approval of the Minutes of the April 15, 2013 Meeting 3. Audience Comments 4. Old Business A. Update of Water Use Permit B. Update Road and Utility Ownership 5. New Business A. Discussion of Road Resurfacing Project Planning Efforts B. Discussion of Storm Water System Maintenance Needs C. Discussion of Swimming Pool and Tennis Center Ownership Transfer 6. Manager's Report A. Financial Report for September, 2013 B. Acceptance of the Audit for Fiscal Year 2012 C. Consideration of Motion Assigning Fund Balance 7. Attorney's Report S. Engineer's Report 9. Supervisors Request 10. Adjournment THE NEXT REGULAR MEETING IS SCHEDULED FOR NOVEMBER 11, 2013 at 3:00 P.M. District Office: 5911 Country Lakes Drive Fort Myers, Florida 239 - 245 -7118 www.CedarHammockCDD.com Meeting Location: Cedar Hammock Clubhouse 8660 Cedar Hammock Boulevard Naples, Florida October 3, 2013 To: Cal Teague, District Manager From: Gary Rawlings, Assistant District Manager Re: Cedar Hammock Cardno ENTRIX Service In response to your email of 09.04.2013 asking for a status summary the following AP excerpts are from email correspondence I have had with Gary Susdorf: • we still ce in • The _a scheduled tovalkiwQatabor OZQ�J. The related C,,TtInl cam. at-.Lhattirne. r>' The ir.tilgrarn and associated pumpage submittals are for theme t The W3:<gs410 Meitar�;�es. All cxistmg meters are � current .,wig- reealibratitmstt� °b� °done int =2Elxl"a5. pit • Once the permit is issued, additional costs will be required for the two G - additional wells to be added to the system. Approximate cost - $68,000.00 Z ($34 /per) l CV"*' • SFWMD has a requirement that �ky 440wm. Cedar Hammock is onlywfKyp .yew 4; ;: s�ast:�,n�,;�tlaat l"e�1��• � �, Sam Marshall gave me the following information: • The <*ccUwga 1k os'water:from a groundwater aquifer and pumps it into a lake. This is to replace the lake water that is used for irrigation.` • The SFWMD typically requires that the rpcharge—W61TVolmne equals the ,,irrigation volume. t ' • A monitoring well can be used to monitor water quality (salinity mostly) and also �} water levels. They are required as part of the SFWMD permit. Cost Summary: • Wetland. Monitoring, Program _ - 4 Quarters left @ $1275 • °Salirne Water Mbnrtdriiig `Program = ong+oirlg@' $60O/m6 , $7,200 1yr • Meter Calibrations - as needed. • 11 Censtrdction $34 000/ a Let me know if you need anything more. Gary Rawlings, Assistant District Manager 2 3' W Q a UO s W p }} l7 U NNNIriI NfY/IN N 4Qwi{A� d aOn MNO .i°- u W S t K > V' mUU Y Z yy Y 000 YY KT K � 3 wppp ISO OJ 464�ryry= OfN/IN O O o SSIYZ�Q �sOto a oow – — .._.. —.._ -- --- - - - - -- _ _ ------------ -- - - - - -- -' —,. �S s Z uj � Z' W !; .iiii: �<:: :: E9 i .� 0 fi! I dP �- ✓ \ EI i tea,., C; I I "log Fi= jI f� ---- ------------- - ----- --------- ---- Cj Item A Item Description Pipe Size Current Condition Recommendation of Corrective Action cost Estimate 5 7P oared Pipe End Manhole Flared Pie End 24" 30" 18" 24" 18' light Rip-Rap Remove Rip Rap $50 8 9P 19P Flared Pipe End 53P 54AP Pond Pie End Spreader Swale C Box Inlet Mitred End 18" 18" NIA 15" 15" 15" 24" 24" 15" 30" 30" 24" 5 -24" 18" SSC 70 70P 71P Mitred End CS5 Control Structure 5 Flared Pie End Box Inlet Flared Pie End Flared Pie End CS5P 72 74P 76P 122 124 8P Pipes & Spreader Swales Flared Pipe End C81 Control Structure 1 18" Light Vegetation & Debris Clear & Grub Vagetatlon & Debris $100 11 Curb Side Inlet 30" Light Debris Remove Debris. $50 12P Flared Pipe End 30" L' ht Rip-Rap / 1" Sediment Remove Rip Rap. Flush Sediment from Structure & Upstream Pie $400 15 Box Inlet to- 2" Sediment Flush Sediment from Structure & Upstream Pie $350 CS2 Control Structure 2 24' Light Vegetation & Debris Clear & Grub Vegetation & Debris $100 CS2P Flared Pipe End 24" Light Ri -Ra Remove Debris. $50 22P Flared Pi PA Fnd 42" Light Rip-Rap I T'Sediment Remove Rip Rap, Flush Sediment from Structure &U stream Pie $350 25P Flared Pie End 42" Light Rip-Rap 1" Sediment Remove Rip Rap. Flush Sediment from Structure & Upstream Pipe $400 28P Flared Pie End 30" Li ht Rip-Rap / 1" Sediment Remove Rip Rap. Flush Sediment from Structure & Upstream Pipe $400 35P Flared Pipe End W. Light Rip-Rap Remove Rip Rap. $50 35P Flared Pipe End W. - 1- htRip-Rap Remove Rip Rap. $50 37P Flared Pipe End W. Li ht Debris - Remove Rip Rap. $100 45P Flared Pipe End 15" _ Light Debris Remove Rip Rap. $100 49P Flared Pipe End _ 24" Uhl Rip-Rap / 4'. Sediment Remove Rip .Rap . Flush Sediment from Structure &U stream Pi $400 56P Flared Pie End 24" 1" Sediment Flush Sediment from Structure & Upstream Pi $350 57P Flared Pipe End 24" Light Rip-Rap Remove Rip Rap. $50 CS4 Control Structure 4 24" Light Debris Remove Debris $50 59AP Flared Pipe End 24" Light Rip-Rap Remove Rip Rap, $50 60P Flared Pipe End 30" 3' Sediment Flush Sediment from Structure & Upstream P' $350 66P Flared Pipe End 18" 2" Sediment Flush Sediment from Structure & Upstream P' $350 67P Flared Pipe End 24" 2" Sediment Flush Sediment from Structure & Upstream Pi $350 73P Flared Pipe End 30" U ht Rip-Rap ! 2" Sediment Remove Rip-Rap. Flush Sediment from Structure & Upstream PI $400 75P Flared Pipe End 30" Light Rip-Rap ! 2" Sediment Remove Rip-Rap. Flush Sediment from Structure & Upstream PI $400 82 Curb Side Inlet 24" 1" Sediment Flush Sediment from Structure & Upstream P' $350 83 Curb Side Inlet 18 ", 24" 1" Sediment Flush Sediment from Structure & Upstream Pipe $350 84 Curb Side Inlet 18" 2" Sediment Flush Sediment from Structure & Upstream Pipe $350 85 Box Inlet 18" 2" Sediment Flush Sediment from Structure & Upstream Pie $350 89 Box Inlet 18" 1" Sediment Flush Sediment from Structure & Upstream Pie $350 39P Flared Pipe End 18" 2" Sediment Flush Sediment from Structure & Upstream Pie $350 CS3P Flared Pipe End 15" Light Rip -Rap Remove Rip Rap. $50 CS3 Control Structure 3 15" Light Debris Remove Debris $50 96 Curb Side Inlet 15', 18" Light Debris Remove Debris $50 SSA Spreader Swale A N/A Light Vegetation Clear & Grub Vegetation $250 111 Box Inlet 16" Li ht Vegetation Clear & Grub Vegetation $250 118 Flared Pipe End 24" 1" Sediment Flush Sediment from Structure & Upstream Pipe $350 119 Flared Pipe End 30" Light Rip-Rap Remove Rip Rap. $50 125_ Pipes & Spreader Swales 5 -24" 2" Sediment Flush Sediment from Structure & Upstream Pie $350 9 10 Curb Side inlet Curb Side inlet 18',24 "tin_,. 18" rx ,, n xy„s '� _ �_ '+a •+ .: e, rs "a „:` "%` AMU INN 7 Flared Pipe End 24 ",30" 1 Flared Pipe End 15" 2 Curb Side Inlet 15--,18- 1A 2- Mitred Ends 2 -24" 1B 2- Mitred Ends 2 -24" 3 Curb Side Inlet 15" 4 Curb Side Inlet 15", 18" 12 Curb Side Inlet 30" 13 Curb Side Inlet 15" 14 Curb Side Inlet 1511,181, 14P Flared Pipe End 18” . ' "'�� ,^�.�;;`' .,k'�"t'IM. y" = t "s:; r . "'; w _..r`", - •-*' ." , , x "ffi.. -::'s ..,,. ., '#r"s °.. ? `�&3 :? r �r ✓ ._- ...2'" _ ...,a,. _"a..� „ ".,x >�.":.- .. - c- ; -. i_ v, u.`?�3'h' .€�' rr::p -'' , -,.�; .-, r, ,ao- >� !x 4: sr. c`�,.. �.s '"_ ,,._3e ....: -�. 'r �T 3 �x x? * W? .i� `aa .�., . ;w" A'i 2 16 Curb Side Inlet 18" 17 Curb Side Inlet 18 ", 24 " 17P Flared Pipe End 24" 18 Curb Side Inlet 15" 19 Curb Side Inlet 1511.18" 20 Curb Surface Inlet 15" 21 Curb Side 21P Flared Pipe End 18 ".i, SSD Spreader Swale D N/A 22 Box trial 42" 23 Curb Side Inlet 42" 24 Curb Side Inlet 42.. 7P 7P � 7P N W., OP-M Id CS] 11 4 4r a io w ft wlv NL -0 CS1 r Ix , �A- 12P 15 19P CS2 CS2P ON Ilk CS2 22P 28P 37P 49P 45D 53P 54AP 57P CS4 SSC OV, 67P 70 70P CS5 7 71P 4A CS5 � ��� \� Z� /���. il 73P 75P M-14% RM M. SSA 119 119 h 124 q 124 122 cgg � :. I.., 124 125 Cedar Hammock Community Development District Financial Report September 30, 2013 Prepared by CEDAR HAMMOCK Community Development District Table of Contents FINANCIAL STATEMENTS Balance Sheet ........................... ............................... Page 1 Statement of Revenues, Expenditures and Changes in Fund Balances General Fund ........................... ............................... Page 2 SUPPORTING SCHEDULES Non -Ad Valorem Special Assessments Cash and Investment Report Suntrust Bank Reconciliation Check Register & Invoice Copies ........................... ............................... Page 3 ........................... ............................... Page 4 ....... ..... ........................ ... I.................. Page 5 ........................... ............................... Page 6 - 48 Cedar Hammock Community Development District Balance Sheet September 30, 2093 Governmental Fund ACCOUNT DESCRIPTION GENERAL FUND ASSETS Cash In Bank $ 72,717 Investments: Certificates of Deposit - 450 Days 25,282 Money Market Account 415,502 TOTAL ASSETS $ 513,501 LIABILITIES Accounts Payable $ - Accrued Expenses 600 TOTAL LIABILITIES 600 FUND BALANCES Assigned to.- Reserved - Operating Reserves 38,077 Reserved - Bridges 58,180 Reserved - Bulkheads 125,245 Reserved - Lakes 70,460 Reserved - Roadways 193,598 Unassigned.' 27,341 TOTAL FUND BALANCES $ 512,901 TOTAL LIABILITIES & FUND BALANCES $ 513,501 Prepared by: Report Date: 10/2/2013 Severn Trent Management Services Page 1 CEDAR HAMMOCK General Fund Community Development District Statement of Revenues, Expenditures and Changes in Fund Balances For the Period Ending September 30, 2013 EXPENDITURES ANNUAL Administrative ADOPTED YTD YTD VARIANCE ($) SEPT -13 ACCOUNT DESCRIPTION BUDGET BUDGET ACTUAL FAV(UNFAV) ACTUAL REVENUES 2,000 2,000 3,238 (1,238) - Interest - Investments $ 2,080 $ 2,080 $ 1,849 $ (231) $ 158 Special Assmnts- Tax Collector 279,653 279,653 279,650 (3) - Special Assmnts- Discounts (11,186) (11,186) (10,223) 963 - TOTAL REVENUES 270,547 270,547 271,278 729 158 EXPENDITURES Administrative 500 500 500 - ProfServ- Engineering 10,000 10,000 17,533 (7,533) 600 ProfServ-Legal Services 2,000 2,000 3,238 (1,238) - ProfServ-Mgmt Consulting Sery 32,479 32,479 32,479 3,000 2,707 ProfServ- Property Appraiser 4,195 4,195 4,195 3,000 ProfServ- Special Assessment 2,718 2,718 2,718 5,000 - Auditing Services 5,250 5,250 5,000 250 1,150 Communication • Telephone 20 20 7 13 - Postage and Freight 750 750 393 357 1 Insurance - General Liability 6,325 6,325 7,061 (736) - Printing and Binding 750 750 531 219 Legal Advertising 2,000 2,000 1,131 869 - Misc -Bank Charges 1,000 1,000 514 486 38 Misc- Assessmnt Collection Cost 5,593 5,693 5,389 204 - Office Supplies 250 250 469 (219) 150 Annual District Filing Fee 175 175 175 Total Administrative 73,505 73,505 80,833 (7,328) 2,896 Field ProfServ-Field Management 500 500 500 - Contracts -Water Mgmt Services 7,200 7,200 7,200 600 Contracts -Water Quality 7,200 7,200 10,505 (3,305) - R &M- Bridge 3,000 3,000 - 3,000 R &M -Lake 3,000 3,000 3,000 R &M -Plant Replacement 5,000 5,000 - 5,000 - Misc- Contingency 3,303 3,303 1,150 2,153 1,150 Capital Outlay 49,600 49,600 7,956 41,644 - Reserve - Bridges 25,000 25,000 - 25,000 Reserve - Bulkheads 47,000 47,000 - 47,000 Reserve - Lakes 19,000 19,000 - 19,000 Reserve - Roadways 27,239 27,239 2,015 25,223 - Total Field 197,042 197,042 29,327 167,715 1,750 TOTAL EXPENDITURES 270,547 270,547 110,160 160,387 4,646 Net change in fund balance $ - $ - $ 161,116 $61,1116 $ (4,488) FUND BAL, BEGINNING (OCT 1, 2012) 351,785 351,785 351,785 FUND BALANCE, ENDING $ 351,785 $ 361,785 $ 512,901 Report Date: 10/1/2013 Prepared by: Page 2 Severn Trent Management Services Cedar Hammock Community Development District Non -Ad Valorem Special Assessments (Collier County Tax Collector - Monthly Collection Distributions) For the Fiscal Year Ending September 30, 2013 Discount / Gross Date Net Amount (Penalties) County Exp Amount Received Received Amount Amount Received ;sessments Levied $279,650 location % 100% 11/07/12 $ 2,355.52 $ 133.91 $ 48.07 $ 2,537.50 11114/12 37,867.20 1,610.00 772.80 40,250.00 11129/12 65,856.00 2,800.00 1,344.00 70,000.00 12113/12 120,640.84 5,084.60 2,462.06 128,187.50 01/04/13 3,909.36 123.36 79.78 4,112.50 01/31/13 18,040.98 490.84 368.18 18,900.00 03/06/13 3,711.26 63.00 75.74 3,850.00 04/10/13 6,417.53 14.00 130.97 6,562.50 05/07/13 2,325.54 (10.50) 47.46 2,362.50 06/04/13 1,059.87 (31.50) 21.63 1,050.00 06/17/13 1,501.49 (44.63) 30.64 1,487.50 07/02/13 353.29 (10.50) 7.21 350.00 TOTAL $ 264,038.88 $ 10,222.58 $ 5,388.54 $ 279,650.00 % COLLECTED 100.00% TOTAL OUTSTANDING $ - Report Date: 10/1/2013 Prepared by: Severn Trent Management Services Page 3 CEDAR HAMMOCK Community Development District Cash and Investment Report September 30, 20 U General Fund Account Name Bank Name Investment Upi Checking Account - Operating SunTrust Bank n/a Certificate of Deposit 1st So Bank 18 month CD Money Market Account Florida Shores Public Funds MMA All Funds Motuift Yield n/a 0.10% $ 72,717 27115 0.55% 25,282 n/a 0.45% 415,502 Total $ 513,501 Report Date: 10/1/2013 Prepared By: Severn Trent Management Services Page 4 Cedar Hammock COD Bank Reconciliation Bank Account No. 9995 Statement No. 09.13 Statement Date 09/30/13 GIL Balance (S) 72,716.76 Statement Balance 75,574.72 G/L Balance 72,716.76 Outstanding Deposits 0.00 Positive Adjustments 0.00 - - -- - - -- - - --- subtotal 75,574.72 Subtotal 72,716.76 Outstanding Checks 2,857.96 Negative Adjustments 0.00 Total Differences 0.00 Ending GIL Balance 72,716.76 Ending Balance 72,716.76 Difference 0.00 Postina Cleared Date Document Tvt1e Document No. Description Amount Amount Difference Checks 08/27/13 Payment 1510 SEVERN TRENT ENVIRONMENTAL 2,708.58 2,708.58 0.00 09/03/13 Payment 1511 CARDNO ENTRIX 600,00 600.00 0.00 09/03/13 Payment 1512 FEDEX 10.99 10.99 0.00 09/06/13 Payment 1513 CARDNO ENTRIX 1,276.00 1,275.00 0.00 09113/13 Payment 1514 APPLIED AQUATIC MANAGEMENT INC 1,150.00 1,150.00 0.00 09/13/13 Payment 1515 CARDNO ENTRIX 600.00 600.00 0.00 09/13/13 Payment 1516 DANIEL H. COX, P.A. 75.00 75.00 0100 09/18/13 Payment 1517 BANKS ENGINEERING INC 740.00 740.00 0100 Total Checks .. . ........ .. .. . . .. ..... .. . . .... ... ... . ...... .. ... .. 7,159.57 7,159.57 0.00 Deposits 09/20/13 ACH DEBIT SUNTRUST ANALYSIS FEE -AUG 2013 -37.74 -37.74 0.00 09/30/13 ACH CREDIT SUNTRUST INTEREST INC -SEPT 2013 4.50 4.50 0.00 Total Deposits ... .. . ... ... ... . .... . .... ... . . . .... . ... . .. . .. . ..... -33.24 -33.24 0.00 Outstanding Checks 09/26/13 Payment 1518 SEVERN TRENT ENVIRONMENTAL 2,857.96 0.00 2,857.96 Total Outstanding Checks .. .... . . . . . ... .... . ... .... .. . . ..... ... . .. . . .... 2,857.96 Page 5 _ _ 8S S N N O �up�pY, ONE• Y aOy ((O��I pO pO l6� �Wp O N c'1 FAq V! (fl N N pp pp pp po Q pp pp pp pp a- u) In N Y1 NN In ��lQJ V1 IA i� �Lo I� V1 VM) In op� o br �i ago${ g 51; g o ( l 0 w N M 1Ci Ln N N N tMf1 c. 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U U U U Cedar Hammock Community Development District ANNUAL FINANCIAL REPORT September 30, 2012 Cedar Hammock Community Development District ANNUAL FINANCIAL REPORT Fiscal Year Ended September 30, 2012 TABLE OF CONTENTS REPORT OF INDEPENDENT AUDITORS MANAGEMENT'S DISCUSSION AND ANALYSIS Page Number 1 -2 3 -7 BASIC FINANCIAL STATEMENTS: Government -wide Financial Statements Statement of Net Assets 8 Statement of Activities 9 Fund Financial Statements: Balance Sheet — General Fund 10 Reconciliation of Total Governmental Fund Balances to Net Assets of Governmental Activities 11 Statement of Revenues, Expenditures and Changes in Fund Balances — General Fund 12 Reconciliation of the Statement of Revenues, Expenditures and Change in Fund Balances of Governmental Funds to the Statement of Activities 13 Statement of Revenues, Expenditures and Change in Fund Balances — Budget and Actual — General Fund 14 Notes to Financial Statements 15 -23 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 24 -25 MANAGEMENT LETTER 26 -27 <<,c,� Berger, Toombs, Elam, Gaines & Frank Certified Public Accountants PL 600 Citrus Avenue Suite 200 Fort Pierce, Florida 34950 7721461.6120 9 461 -1155 FAX: 772/468 -9278 Report of Independent Auditors To the Board of Supervisors Cedar Hammock Community Development District Collier County, Florida We have audited the accompanying basic financial statements of Cedar Hammock Community Development District (the "District ") as of and for the year ended September 30, 2012, as listed in the table of contents, These basic financial statements are the responsibility of the District's management. Our responsibility is to express an opinion on these basic 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 Govemment Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the basic financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities and the major fund of the District as of September 30, 2012, 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. In accordance with Government Auditing Standards, we have also issued a report dated May 14, 2013 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, contracts and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Govemment Auditing Standards and should be considered in assessing the results of our audit. Fun Pierce / Sluarl _ 1 _ Member AICPA Member AICPA Division For CPA Firms Member FICPA Private Companies Practice Section Berger, Toombs, Elam, Gaines & Frank To the Board of Supervisors Cedar Hammock Community Development District The Management's Discussion and Analysis is not a required part of the basic financial statements but is supplementary information required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted principally of inquires of management regarding the methods of measurement and presentation of the supplementary information. However, we did not audit the information and express no opinion on it. 104 P4. -Itj�wx * Berger, Toombs, Elam, Gaines & Frank Certified Public Accountants PL Fort Pierce, Florida May 14, 2013 -2- Cedar Hammock Community Development District MANAGEMENT'S DISCUSSION AND ANALYSIS For the Year Ended September 30, 2012 Management's discussion and analysis of Cedar Hammock Community Development District (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 FINANACIAL 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 Govemment -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 Govemment -wide financial statements are the statement of net assets and the statement of activities. These statements use accounting methods similar to those used by private- sector companies. Emphasis is placed on the net assets of governmental activities and the change in net assets. Governmental activities are primarily supported by special assessments. The statement of net assets presents information on all assets and liabilities of the District, with the difference between assets and liabilities reported as net assets. Net assets are reported in two categories; invested in capital assets, net of related debt, and unrestricted. Assets, liabilities and net assets 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 assets. 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 interest on long term debt. Fund financial statements present financial information for governmental funds. These statements provide financial information for the major governmental 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. -3- Cedar Hammock Community Development District MANAGEMENT'S DISCUSSION AND ANALYSIS For the Year Ended September 30, 2012 OVERVIEW OF THE FINANACIAL 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. 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 buildings, land, roads, bridges, and traffic signals are reported in the statement of net assets. 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, a reconciliation is 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 year ended September 30, 2012. ♦ The District's total assets exceeded total liabilities by $14,535,760 (net assets). Unrestricted net assets for Governmental Activities were $351,785. Invested in capital assets net of related debt was $14,183,975. ♦ Governmental Activities revenues totaled $270,830 while governmental activities expenses totaled $375,663. -4- Cedar Hammock Community Development District MANAGEMENT'S DISCUSSION AND ANALYSIS For the Year Ended September 30, 2012 OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED) Financial Analysis of the District The following schedule provides a summary of the assets, liabilities and net assets of the District and is presented by category for comparison purposes. Net Assets The increase in current assets is primarily due to increases in cash and equivalents as a result of the excess of revenues over expenditures at the fund level. The decrease in capital assets and net assets — invested in capital assets, net of related debt is primarily due to depreciation expense in the current year. -5- Governmental Activities 2012 2011 Current assets $ 361,363 $ 246,023 Capital assets 14,183,975 14,401,382 Total Assets 14,545,33$ 14,647,405 Current liabilities 9,578 6,812 Invested in capital assets, net of related debt 14,183,975 14,401,382 Net assets - unrestricted 351,785 239,211 Total Net Assets $ 14,535,760 $ 14,640,593 The increase in current assets is primarily due to increases in cash and equivalents as a result of the excess of revenues over expenditures at the fund level. The decrease in capital assets and net assets — invested in capital assets, net of related debt is primarily due to depreciation expense in the current year. -5- Cedar Hammock Community Development District MANAGEMENT'S DISCUSSION AND ANALYSIS For the Year Ended September 30, 2012 OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED) Financial Analysis of the District (Continued) The following schedule provides a summary of the changes in net assets of the District and is presented by category for comparison purposes. Change in Net Assets Governmental Revenues Charges for services Investment earnings Total Revenues Expenses General government Physical environment Total Expenses Change in Net Assets Net Assets - Beginning of Year Net Assets - End of Year Governmental Activities 2012 2011 $ 269,427 $ 134,717 1,403 2,560 270,830 137,277 68,425 307,238 375,663 (104, 833) 14,640,593 $ 14,535,760 60,248 346,026 406,274 (268,997) 14, 909, 590 $ 14,640,593 The increase in charges for services is related to the budgeted increase in reserve funds at the fund level. i� Cedar Hammock Community Development District MANAGEMENT'S DISCUSSION AND ANALYSIS For the Year Ended September 30, 2012 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, 2012 and 2011. Description Land and improvements Buildings and improvements Infrastructure Equipment Accumulated depreciation Total Capital Assets (Net) Governmental Activities 2012 2011 $ 10,991,512 $ 10,991,512 230,362 230,362 5,580,627 5,580,627 23,625 - (2,642,151) (2,401,119) $ 14,183,975 $ 14,401,382 During the year, $23,625 in equipment was added and depreciation expense was $241,032. General Fund Budgetary Highlights The budget exceeded actual government expenditures primarily because of a budgeted increase in reserve funds. There were no amendments to the September 30, 2012 budget. Economic Factors and Next Year's Budaet Cedar Hammock Community Development District does not expect any economic factors to have any significant effect on the financial position or results of operations of the District in fiscal year 2013. Request for Information The financial report is designed to provide a general overview of Cedar Hammock 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 Cedar Hammock Community Development District, Severn Trent Management Services, Inc., 210 N. University Drive, Suite 702, Coral Springs, Florida 33071. -7- Cedar Hammock Community Development District STATEMENT OF NET ASSETS September 30, 2012 ASSETS Current Assets: Cash and cash equivalents Investments Due from other governments Total Current Assets Non - Current Assets: Capital Assets Not Being Depreciated Land and improvements Capital Assets Being Depreciated Buildings and improvements Infrastructure Equipment Less: accumulated depreciation Total Non - Current Assets Total Assets LIABILITIES Current Liabilities: Accounts payable and accrued expenses NET ASSETS Invested in capital assets, net of related debt Unrestricted Total Net Assets See accompanying notes to financial statements. -8- Governmental Activities $ 334,186 25,125 2,052 361,363 10,991,512 230,362 5,580,627 23,625 (2,642,151) 14, 545, 338 9,578 14,183,975 351,785 $ 14,535,760 Cedar Hammock Community Development District STATEMENT OF ACTIVITIES For the Year Ended September 30, 2012 Functions /Programs Primary government Governmental Activities General government Physical environment Total Governmental Activities Expenses $ (68,425) (307,238) $ (375,663) Program Revenues c:narges Tor Services $ 63,483 205, 944 $ 269,427 General revenues: Interest earnings Total General Revenues Change in net assets Net assets - October 1, 2011 Net assets - September 30, 2012 See accompanying notes to financial statements. -9- Net (Expense) Revenue and Changes in Net Assets Governmental Activities $ (4,942) (101,294) (106,236) 1,403 1,403 (104,833) 14,640,593 $ 14,535,760 Cedar Hammock Community Development District BALANCE SHEET - GENERALFUND September 30, 2012 ASSETS Cash and cash equivalents Investments Due from other governments Total Assets LIABILITIES AND FUND BALANCES Liabilities Accounts payable and accrued expenses Fund balances Assigned: Roadways Bulkheads Lakes Bridges First quarter operations Unassigned Total Fund Balances Total Liabilities and Fund Balances See accompanying notes to financial statements. -10- $ 334,186 25,125 2,052 $ 361,363 $ 9,578 168,375 78,245 51,460 33,179 19,073 1,453 351,785 $ 361,363 Cedar Hammock Community Development District RECONCILIATION OF TOTAL GOVERNMENTAL FUND BALANCES TO NET ASSETS OF GOVERNMENTAL ACTIVITIES September 30, 2012 Total governmental fund balances $ 351,785 Amounts reported for governmental activities in the statement of net assets are different because: Capital assets not being depreciated; land and improvements, $10,991,512, used in governmental activities are not financial resources and therefore, are not reported in the funds. 10,991,512 Capital assets being depreciated; building and improvements, $230,362, infrastructure, $5,580,627, and equipment, $23,625, net of accumulated depreciation, $(2,642,151), used in governmental activities are not financial resources and therefore, are not reported in the funds. 3,192,463 Net Assets of Governmental Activities See accompanying notes to financial statements. - 11 - $ 14.535.760 Cedar Hammock Community Development District STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GENERAL FUND For the Year Ended September 30, 2012 Revenues Special assessments Interest earnings Total Revenues Expenditures Current General government Physical environment Capital outlay Total Expenditures Net change in fund balances Fund Balances - October 1, 2011 Fund Balances - September 30, 2012 See accompanying notes to financial statements. -12- $ 269,427 1,403 270,830 68,425 66,206 23,625 158.256 112,574 239,211 $ 351,785 Cedar Hammock Community Development District RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGE IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES For the Year Ended September 30, 2012 Net change in fund balances - total governmental funds $ 112,574 Amounts reported for governmental activities in the Statement of Activities are different because: Govemmental 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 expense. This is the amount depreciation, $(241,032), exceeded capital outlay, $23,625, in the current period. (217,407) Change in Net Assets of Governmental Activities $ 104,833 See accompanying notes to financial statements. -13- Cedar Hammock Community Development District STATEMENT OF REVENUES, EXPENDITURES AND CHANGE IN FUND BALANCES - BUDGET AND ACTUAL GENERALFUND For the Year Ended September 30, 2012 Revenues Special assessments Interest earnings Total Revenues Expenditures Current General government Physical environment Capital outlay Total Expenditures Net change in fund balances Fund Balances - October 1, 2011 Fund Balances - September 30, 2012 Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) $ 268,467 $268,467 $269,427 $ 960 3,000 31000 1,403 (1,597) 271,467 271,467 270,830 (637) 63,964 63,964 68,425 (4,461) 207,503 207,503 66,206 141,297 - - 23,625 (23,625) 271,467 271,467 158,256 113,211 - 112,574 112,574 252,823 252,823 239,211 (13,612) $ 2� 5 $25, 1 7 5 $ 98.962 See accompanying notes to financial statements. -14- Cedar Hammock Community Development District NOTES TO FINANCIAL STATEMENTS September 30, 2012 NOTE A - SUMMARY OF ACCOUNTING POLICIES The financial statements of Cedar Hammock Community Development District (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. 1. Reporting Entity The District was created on November 23, 1999, pursuant to the Uniform Community Development District Act of 1980, Chapter 190, Florida Statutes, as amended (the "Act "), by ordinance of the Board of County Commissioners of Collier County, 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 or re- constructing, enlarging or extending, equipping, operating and maintaining water management, water supply, sewer and waste water management, bridges or culverts, district roads, landscaping, street lights and other basic infrastructure projects within or outside the boundaries of the 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. As required by GAAP, these financial statements present the 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. Oversight responsibility includes, but is 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 by the Governmental Accounting Standards Board the District has identified no component units. 2. 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 -15- Cedar Hammock Community Development District NOTES TO FINANCIAL STATEMENTS September 30, 2012 NOTE A - SUMMARY OF ACCOUNTING POLICIES (CONTINUED) 2. Measurement Focus and Basis of Accounting (Continued) a. Government -wide Financial Statements Government -wide financial statements report all non - fiduciary information about the reporting government as a whole. These statements include the governmental activities of the primary government. The effect of interfund activity has been removed from these statements. Governmental activities which normally are supported by special assessments, developer assessments, and interest, are reported separately from business -type activities. Program revenues include charges for services and payments made by parties outside of the reporting government's citizenry if that money is restricted to a particular program. 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 financial 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. b. 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. -16- Cedar Hammock Community Development District NOTES TO FINANCIAL STATEMENTS September 30, 2012 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 classifications include non - spendable, restricted, committed, assigned and unassigned. The District has a policy 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. 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. -17- Cedar Hammock Community Development District NOTES TO FINANCIAL STATEMENTS September 30, 2012 NOTE A — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 2. Measurement Focus and Basis of Accounting (Continued) b. Fund Financial Statements (Continued) Governmental Funds (Continued) 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. Revenues are considered to be available when they are collected within the current period or soon thereafter to pay liabilities of the current 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 financial 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 were 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. 3. Basis of Presentation a. 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. -18- Cedar Hammock Community Development District NOTES TO FINANCIAL STATEMENTS September 30, 2012 NOTE A — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 3. Basis of Presentation (Continued) b. Non - current Governmental Assets /Liabilities GASB Statement 34 requires that non - current governmental assets, such as land and buildings, and non - current governmental liabilities, such as bonds payable, be reported in the governmental activities column in the government -wide statement of net assets. 4. Assets, Liabilities, and Net Assets or Equity a. 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: 1. Direct obligations of the United States Treasury; 2. The Local Government Surplus Funds Trust or any intergovernmental investment pool authorized pursuant to the Florida Interlocal Cooperative Act of 1969; 3. Interest- bearing time deposits or savings accounts in authorized qualified public depositories; 4. Securities and Exchange Commission, registered money market funds with the highest credit quality rating from a nationally recognized rating agency. For purposes of the statement of cash flows, cash equivalents include time deposits, certificates of deposit and all highly liquid debt instruments with original maturities of three months or less and held in a qualified public depository as defined by Chapter 280.02, Florida Statutes. b. Restricted Assets Certain net assets of the District are classified as restricted assets on the statement of net assets 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 assets and then from unrestricted net assets. -19- Cedar Hammock Community Development District NOTES TO FINANCIAL STATEMENTS September 30, 2012 NOTE A — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 4. Assets, Liabilities, and Net Assets or Equity (Continued) c. Capital Assets Capital assets, which include property, plant and equipment, are reported in the applicable governmental or business -type 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_ 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: Buildings 7 -39 years Improvements other than buildings 20-40 years Machinery and equipment 5 -10 years d. Budgets Budgets are prepared and adopted after public hearings for the governmental funds, pursuant to Section 200.065 of the 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. As a result, deficits in the budget columns of the accompanying financial statements may occur. -20- Cedar Hammock Community Development District NOTES TO FINANCIAL STATEMENTS September 30, 2012 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 Assets "Total fund balances" of the District's governmental funds, $351,785, differs from "net assets" of governmental activities, $14,535,760, reported in the statement of net assets. This difference primarily results from the long -term economic focus of the statement of net assets 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 (land, buildings, infrastructure and equipment 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 included those capital assets among the assets of the District as a whole. Land and improvements $ 10,991,512 Buildings and improvements 230,362 Infrastructure 5,580,627 Equipment 23,625 Accumulated depreciation (2,642,151) Total 14.183.975 2. Explanation of Differences Between the Governmental Fund Operating Statements and the Statement of Activities The "net change in fund balances" for government funds, $112,574, differs from the "change in net assets" for governmental activities, $(104,833), 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 is allocated over their estimated useful lives and reported as depreciation expense. As a result, fund balances decrease by the amount of financial resources expended, whereas net assets decrease by the amount of depreciation expense charged for the year. Depreciation expense Capital outlay Total -21 - $ (241,032) 23,625 $ (217.407) Cedar Hammock Community Development District NOTES TO FINANCIAL STATEMENTS September 30, 2012 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, 2012, the District's bank balance and carrying value was $334,186. 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. Investments The District's investment policy allows management to invest funds in investments permitted under Section 218.415, Florida Statutes, The District invested in a certificate of deposit with a fair market value and book value of $25,125. Concentration of Credit Risk The District places no limit on the amount it may invest in any one issuer NOTE D — SPECIAL ASSESSMENT REVENUES Special assessment revenues recognized for the 2011 -2012 fiscal year were levied in October 2011. All taxes are due and 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. Taxes paid in March are without discount. All unpaid taxes become delinquent as of April 1. Virtually all unpaid taxes are collected via the sale of tax certificates on, or prior to, June 1; therefore, there were no material taxes receivable at fiscal year end. -22- Cedar Hammock Community Development District NOTES TO FINANCIAL STATEMENTS September 30, 2012 NOTE E - CHANGES IN FIXED ASSETS Capital asset activity for the year ended September 30, 2012 was as follows: Governmental Activities: Capital assets, not being depreciated: Land and Improvements Total Capital Assets, Not Depreciated Capital assets, being depreciated: Building and improvements Infrastructure Equipment Total Capital Assets, Being Depreciated Less accumulated depreciation for: Building and improvements Infrastructure Equipment Total Accumulated Depredation Total Capital Assets Depreciated, Net Governmental Activities Capital Assets Balance October 1, 2011 Additions $ 10,991,512 $ $ 10,991,512 230,362 5,580,627 - - 23,625 5,810,989 23,625 Deletions Balance September 30, 2012 $ 10,991,512 10,991,512 230,362 5,580,627 - 23,625 5,834,614 (118,458) (11,518) (129,976) (2,282,661) (225,183) - (2,507,844) (4,331) - (4,331) (2,401,119) (241,032) - (2,642,151) 3,409,870 (217,407) - 3,192,463 $ 14,401,382 $ (217,407) $ - $ 14,183,975 Depreciation expense of $241,032 was charged to physical environment. NOTE F - 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. -23- c�c Berger, Toombs, Elam, - Gaines & Frank Certified Pudic Accoun4irns Pl 600 Cilrus Avenue Suite 200 Fort Pierce, Florida 34950 772/461 -6120 // 461-1155 FAX: 772/468 -9278 INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Board of Supervisors Cedar Hammock Community Development District Collier County, Florida We have audited the financial statements of Cedar Hammock Community Development District as of and for the year ended September 30, 2012 and have issued our report thereon dated May 14, 2013. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Internal Control over Financial ReDortin Management of Cedar Hammock Community Development District is responsible for establishing and maintaining effective internal control over financial reporting. In planning and performing our audit, we considered Cedar Hammock Community Development District's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of Cedar Hammock Community Development Distric's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of Cedar Hammock Community Development District's internal control over financial reporting. A deficiency in Internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies In internal control over financial reporting that might be deficiencies, significant deficiencies or material weaknesses. We did not identify any deficiencies in Internal control over financial reporting that we consider to be material weaknesses, as defined above. Fort Pierce / Stuart .24. Member AICPA Member AICPA Division For CPA Firms Member FICI'A Private Companies Practice Section Berger, Toombs, Elam, Gaines & Frank To the Board of Supervisors Cedar Hammock Community Development District Compliance and Other Matters As part of obtaining reasonable assurance about whether the Cedar Hammock Community Development District 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. This report is Intended solely for the information and use of the Board of Supervisors, Management, others within the entity and the Auditor General of the State of Florida and is not Intended to be and should not be used by anyone other than those specified parties. 3&dw,49) 104 ; "- Berger, Toombs, Elam, Gaines & Frank Certified Public Accountants, PL Fort Pierce, Florida May 14, 2013 .25- TBerger, Toombs, Elam, Gaines & Frank Certified Public AaounlaNS PL 600 Citrus Avenue Suite 200 Fort Pierce, Florida 34950 772/461 -6120 // 461 -1155 FAX: 772/468 -9276 MANAGEMENT LETTER To the Board of Supervisors Cedar Hammock Community Development District Collier County, Florida We have audited the financial statements of the Cedar Hammock Community Development District, Florida as of and for the year ended September 30, 2012, and have Issued our report thereon dated May 14, 2013. 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. We have Issued our 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. Disclosures in that report which is dated May 14, 2013 should be considered in conjunction with this Management Letter. Additionally, our audit was conducted in accordance with the provisions of Chapter 10.550, Rules of the Auditor General which governs the conduct of local entity audits performed in the State of Florida. The Rules of the Auditor General (Section 10.554(1)(i)1.) require that we address in the Management Letter, if not already addressed in the auditor's report on compliance and internal controls, whether or not recommendations made in the preceding annual financial report have been followed. There were no recommendations made in the preceding audit report. As required by the Rules of the Auditor General (Section 10.554(1)(1)2.) the scope of our audit included a review of the provisions of Section 218.415, Florida Statutes regarding the investment of public funds. In connection with our audit, we determined that Cedar Hammock Community Development District complied with Section 218.415, Florida Statutes. The Rules of the Auditor General (Section 10.554(1)(i)3, 4 and 5.) require that we address in the Management Letter, if not already addressed in the auditor's report on compliance and internal controls: improvements in financial management and violations of contracts or grant agreements, fraud, illegal acts or abuse and deficiencies in internal control that are not significant deficiencies, other inaccuracies, shortages, defalcations, and instances of fraud discovered by, or that come to the attention of the auditor, Our audit did not discover any of the above items that require to be disclosed. Fort Pierce 1 Stuart -26- Member AICPA Member AICPA Division For CPA Firms Member FICPA Private Companies Practice Secdon VV Berger, Toombs, Elam, Gaines & Frank To the Board of Supervisors Cedar Hammock Community Development District As required by the Rules of the Auditor General (Section 10.554(1)(i)7.c and Section 10.556(7)), we applied financial conditions assessment procedures. It is Management's responsibility to monitor the entity'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. Cedar Hammock Community Development District has not met one or more of the conditions described in Section 218.503(1), Florida Statutes. As required by the Rules of the Auditor General (Section 10.554(1)(i)7.b.), we determined that the annual financial report for the District for the fiscal year ended September 30, 2012, filed with the Department of Financial Services pursuant to Section 218.32(1)(a), Florida Statutes, is in agreement with our annual financial audit report for the fiscal year ended September 30, 2012, Our Management Letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies and applicable management and is not intended to be and should not be used by anyone other than these specified parties. t�j4WW4JO4' 9x a- Berger, Toombs, Elam, Gaines & Frank Certified Public Accountants PL Fort Pierce, Florida May 14, 2013 .27- C -o t' Berger, Toombs, Elam, Gaines & Frank Certified Public Accountants PL 600 Citrus Avenue Suite 200 Fort Pierce, Florida 34950 772/461 -6120 // 461 -1155 FAX: 772/468 -9278 May 14, 2013 Board of Supervisors Cedar Hammock Community Development District Collier County, Florida We are pleased to provide the following information related to our audit of Cedar Hammock Community Development District for the year ended September 30, 2012 to assist you in your oversight responsibility of the financial reporting process of the District. Our responsibility under the auditing standards has been described to you in our engagement letter dated March 27, 2012. Management is responsible for the appropriateness of the accounting policies used by the District. During the year, no significant new accounting policies were adopted nor were there any changes in the existing accounting policies. We did not discuss with Management, any significant or unusual transactions nor did we discuss any alternative treatments available under generally accepted accounting policies during the current audit period. Any audit adjustments provided by Management or communicated to Management have been reported to and agreed upon by Management. If you would like a detailed listing of all audit adjustments for the current period, please contact us. We encountered an immaterial uncorrected misstatement (see attachment) during the course of our audit which was discussed with management and not adjusted. There are no disagreements with Management over the application of significant accounting principles, the basis for judgments made by Management on any significant matters, the scope of the audit or significant disclosures to be included in the financial statements. We are not aware of any consultations Management had with other accountants about accounting or auditing matters. Fort Pierce / Stuart Member AICPA Member AICPA Division For CPA Firms Member FICPA Private Companies Practice Section CVQP Berger, Toombs, Elam, 4CW Gaines & Frank Board of Supervisors Cedar Hammock Community Development District Page 2 There were no significant issues that were discussed during the course of the audit. We did not encounter any difficulties in dealing with Management during the audit process. Management has made certain written representations to us as part of the audit process. Please contact us if you would like a copy of those representations. This letter is intended solely for the information and use of the Board and Management and is not intended to be and should not be used by anyone other than the intended parties. Please contact J. W. Gaines should you have any questions concerning this letter. We greatly appreciate the opportunity to be of service to Cedar Hammock Community Development District. w Berger, Toombs, Elam, Gaines & Frank Fort Pierce, Florida May 14, 2013 CEDAR HAMMOCK COMMUNITY DEVELOPMENT DISTRICT Motion: Assigning Fund Balance as of 9/30/13 The Board hereby assigns the FY 2013 Reserves as follows: Operating Reserve $38,077 Reserves — Bridges $58,180 Reserves - Bulkheads $125,245 Reserves -Lakes $70,460 Reserves- Roadways $193,598