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Naples Heritage Agenda 04/05/2022 Naples Heritage Community Development District Board of Supervisors Kenneth R.Gaynor,Chairman Peter V.Ramundo,Vice Chairman Justin Faircloth,District Manager Gerald G.James,Assistant Secretary Gregory L.Urbancic,District Counsel Richard J.Leonhard,Assistant Secretary W.Terry Cole,District Engineer Tom Rutkowski,Assistant Secretary Meeting Agenda April 5,2022—9:00 a.m. 1. Roll Call 2. Public Comment on Agenda Items 3. Approval of the Minutes of the March 1,2022 Meeting 4. Old Business A. Preserve Discussion 5. New Business A. Consideration of the Fiscal Year 2021 Financial Audit Report B. Consideration of FY2023 Meeting Schedule 6. Manager's Report A. Acceptance of Financial Report,February 2022 B. Follow-up Items i. Copeland Southern March 10,2022 Email ii. Consideration of MRI Estimate 3322 7. Attorney's Report 8. Engineer's Report 9. Supervisors' Requests 10. Audience Comments 11. Adjournment The next meeting is scheduled for May 3, 2022 NapIciBattuNo, PART OF THE USA TODAY NETWORK Published Daily Naples, FL 34110 NAPLES HERITAGE CDD 15275 COLLIER BLVD#201-346 Notice of Regular Meeting Schedule NAPLES, FL 34119-6750 Naples Heritage Community Development District The Board of Supervisors of the Naples Heritage Community De- velopment District will hold their regular meetings for Fiscal Affidavit of Publication Year 2021/2022 at the Naples Heritage Golf and Country Club Clubhouse, 8150 Heritage Club Way, Naples, Florida at 9:00 a.m. STATE OF WISCONSIN as follows: COUNTY OF BROWN November 2,2021 January 4,2022 March 1,2022 Before the undersigned they serve as the authority, Aprils,2022 May 3,2022 personally appeared said legal clerk who on oath says that The meetings are open to the public and will be conducted in he/she serves as Legal Clerk of the Naples Daily News, a accordance with the provision of Florida Law for community de- velopment districts. daily newspaper published at Naples, in Collier County, There may be occasions when one or more Supervisors will par- Florida; distributed in Collier and Lee counties of Florida; ticipate by telephone. These meetings may be continued to a date,time, and place to be specified on the record at the meet- that the attached copy of the advertising was published in ing. A cop of the agenda for these meetings may be obtained from said newspaper on dates listed. Affiant further says that the Y the District Manager's Office, 210 N.University Drive, Suite 702, said Naples Daily News is a newspaper published at Coral Springs, FL 33071, (954) 603-0033, or by visiting the Dis- trict's website at www.naplesheritagecdd.com. Additionally, in- Naples, in said Collier County, Florida, and that the said terested parties may refer to the District's website for the latest newspaper has heretofore been continuously published in District information. said Pursuant to provisions of the Americans with Disabilities Act, any person requiring special accommodations at these meetings Collier County,Florida;distributed in Collier and Lee because of a disability or physical impairment should contact counties of Florida,each day and has been entered as the District Manager's Office at least forty-eight (48)hours prior to the meeting. If you are hearing or speech impaired, please second class mail matter at the post office in Naples,in contact the Florida Relay Service by dialing 7-1-1, or 1-800-955- said Collier County, Florida,for a period of one year next 8771 (TTY) / 1-800-955-8770 (Voice), for aid in contacting the District Manager's Office. preceding the first publication of the attached copy of Each person who decides to appeal any action taken at these advertisement;and affiant further says that he has neither meetings is advised that person will need a record of the pro- ceedings and that accordingly, the person may need to ensure paid nor promised any person,or corporation any discount, that a verbatim record of the proceedings is made, including rebate,commission or refund for the purpose of securing the testimony and evidence upon which such appeal is to be based. this advertisement for publication in said newspaper Justin Faircloth District Manager issue(s)dated: AD#4889084 9/28/2021 Issue(s)dated: 09/28/2021 Subscribed and sworn to before on September 28,2021: Not ,State o ,County rown 5 /55a3 My commission expires Publication Cost:$294.00 Ad No:0004889084 Customer No: 1306647 PO#: #of Affidavits 1 NANCY HEYRMAN Notary Public This is not an invoice State) of Wisconsin NAPLES HERITAGE COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY, FLORIDA FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 NAPLES HERITAGE COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY, FLORIDA TABLE OF CONTENTS Page INDEPENDENT AUDITOR'S REPORT 1-2 MANAGEMENT'S DISCUSSION AND ANALYSIS 3-5 BASIC FINANCIAL STATEMENTS Government-Wide Financial Statements: Statement of Net Position 6 Statement of Activities 7 Fund Financial Statements: Balance Sheet—Governmental Fund 8 Reconciliation of the Balance Sheet—Governmental Fund to the Statement of Net Position 9 Statement of Revenues, Expenditures and Changes in Fund Balance— Governmental Fund 10 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balance of Governmental Fund to the Statement of Activities 11 Notes to the Financial Statements 12-16 REQUIRED SUPPLEMENTARY INFORMATION Schedule of Revenues, Expenditures and Changes in Fund Balances— Budget and Actual—General Fund 17 Notes to Required Supplementary Information 18 OTHER INFORMATION Data Elements required by FL Statute 218.39 (3) (c) 19 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 20-21 INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH THE REQUIREMENTS OF SECTION 218.415, FLORIDA STATUTES, REQUIRED BY RULE 10.556(10) OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA 22 MANAGEMENT LETTER PURSUANT TO THE RULES OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA 23-24 951 Yamato Road • Suite 280 Cal) Boca Raton, Florida 33431 Grau & Associates (561) 994-9299 • (800) 299-4728 Fax(561) 994-5823 Cl l l lfll l> I'IILI I( \( t l ill\ 1,1 .' ! www.graucpa.com INDEPENDENT AUDITOR'S REPORT To the Board of Supervisors Naples Heritage Community Development District Collier County, Florida Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities and the major fund of Naples Heritage Community Development District, Collier County, Florida("District") as of and for the fiscal year ended September 30, 2021, and the related notes to the financial statements, which collectively comprise the District's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements 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 opinions on these financial statements based on our audit.We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements.The procedures selected depend on the auditor's judgment,including the assessment of the risks of material misstatement of the financial statements,whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting 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 opinions. Opinions In our opinion,the financial statements referred to above present fairly, in all material respects,the respective financial position of the governmental activities and the major fund of the District as of September 30, 2021, and the respective changes in financial position thereof for the fiscal year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis and budgetary comparison information be presented to supplement the basic financial statements. Such information,although not a part of the basic financial statements,is required by the Governmental Accounting Standards Board,who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational,economic,or historical context.We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries,the basic financial statements,and other knowledge we obtained during our audit of the basic financial statements.We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the District's basic financial statements.The information for compliance with FL Statute 218.39(3) (c) is not a required part of the basic financial statements. The information for compliance with FL Statute 218.39 (3) (c) has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly,we do not express an opinion or provide any assurance on it. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards,we have also issued our report dated March 18, 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, contracts, grant agreements and other matters. The purpose of that report is solely 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 effectiveness of the District's internal control over financial reporting or on compliance.That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the District's internal control over financial reporting and compliance. March 18, 2022 2 MANAGEMENT'S DISCUSSION AND ANALYSIS Our discussion and analysis of the Naples Heritage Community Development District, Collier County,Florida ("District") provides an overview of the District's financial activities for the fiscal year ended September 30, 2021. Please read it in conjunction with the District's Independent Auditor's Report, basic financial statements, accompanying notes and supplementary information to the basic financial statements. FINANCIAL HIGHLIGHTS • The assets of the District exceeded its liabilities at the close of the most recent fiscal year resulting in a net position balance of$7,576,288. • The change in the District's total net position in comparison with the prior fiscal year was($112,778), a decrease.The key components of the District's net position and change in net position are reflected in the table in the government-wide financial analysis section. • At September 30,2021,the District's governmental fund reported ending fund balance of$57,419,an increase of $13,958 in comparison with the prior fiscal year. A portion of the fund balance is nonspendable for deposits, assigned for reserves, and the remainder is unassigned fund balance which is available for spending at the district's discretion. OVERVIEW OF FINANCIAL STATEMENTS This discussion and analysis is intended to serve as the introduction to the District's basic financial statements.The District's basic financial statements are comprised of three components:1)government-wide financial statements, 2)fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. 1) Government-Wide Financial Statements The government-wide financial statements are designed to provide readers with a broad overview of the District's finances, in a manner similar to a private-sector business. The statement of net position presents information on all the District's assets,deferred outflows of resources, liabilities and deferred inflows of resources, with the residual amount being reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the District is improving or deteriorating. The statement of activities presents information showing how the government's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods. The government-wide financial statements include all governmental activities that are principally supported by special assessment revenues. The District does not have any business-type activities. The governmental activities of the District include the general government (management) and maintenance and operations functions. 2) Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives.The District,like other state and local governments,uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.The District has one fund category: governmental funds. 3 OVERVIEW OF FINANCIAL STATEMENTS (Continued) 2) Fund Financial Statements (Continued) Governmental Funds Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a District's near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the District's near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures,and changes in fund balance provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The District maintains one governmental fund for external reporting. Information is presented in the governmental fund balance sheet and the governmental fund statement of revenues,expenditures,and changes in fund balances for the general fund. The general fund is considered a major fund. The District adopts an annual appropriated budget for its general fund. A budgetary comparison schedule has been provided for the general fund to demonstrate compliance with the budget. 3) Notes to the Financial Statements The notes provide additional information that is essential to a full understanding of the data included in the government-wide and fund financial statements. GOVERNMENT-WIDE FINANCIAL ANALYSIS As noted earlier, net position may serve over time as a useful indicator of an entity's financial position. In the case of the District, assets exceeded liabilities at the close of the most recent fiscal year. Key components of the District's net position are reflected in the following table: NET POSITION SEPTEMBER 30, 2021 2020 Current and other assets $ 58,049 $ 44,223 Capital assets, net of depreciation 7,518,869 7,645,605 Total assets 7,576,918 7,689,828 Current liabilities 630 762 Total liabilities 630 762 Net position Investment in capital assets 7,518,869 7,645,605 Unrestricted 57,419 43,461 Total net position $ 7,576,288 $ 7,689,066 The District's net position reflects its investment in capital assets (e.g. land, land improvements, and infrastructure). These assets are used to provide services to residents; consequently, these assets are not available for future spending. The remaining balance of unrestricted net position may be used to meet the District's other obligations. 4 GOVERNMENT-WIDE FINANCIAL ANALYSIS (Continued) The District's net position decreased during the most recent fiscal year. The majority of the decrease represents the extent to which the cost of operations and depreciation expense exceeded ongoing program revenues. Key elements of the change in net position are reflected in the following table: CHANGES IN NET POSITION FOR THE FISCAL YEAR END SEPTEMBER 30, 2021 2020 Revenues: Program revenues $ 115,498 $ 115,574 General revenues 228 593 Total revenues 115,726 116,167 Expenses: General government 53,710 56,755 Maintenance and operations 174,794 163,569 Total expenses 228,504 220,324 Change in net position (112,778) (104,157) Net position-beginning 7,689,066 7,793,223 Net position-ending $ 7,576,288 $ 7,689,066 As noted above and in the statement of activities,the cost of all governmental activities during the fiscal year ended September 30, 2021, was $228,504. The costs of the District's activities were primarily funded by program revenues. Program revenues comprised primarily of assessments.The increase in the current fiscal year expenses is primarily the result of an increase in cost related to the District's lakes. GENERAL BUDGETING HIGHLIGHTS An operating budget was adopted and maintained by the governing board for the District pursuant to the requirements of Florida Statutes. The budget is adopted using the same basis of accounting that is used in preparation of the fund financial statements. The legal level of budgetary control, the level at which expenditures may not exceed budget, is in the aggregate. Any budget amendments that increase the aggregate budgeted appropriations must be approved by the Board of Supervisors. Actual general fund expenditures did not exceed appropriations for the fiscal year ended September 30, 2021. CAPITAL ASSETS At September 30, 2021, the District had $11,380,085 invested in capital assets. In the government-wide statements depreciation of$3,861,216 has been taken, which resulted in a net book value of$7,518,869. More detailed information about the District's capital assets is presented in the notes of the financial statements. ECONOMIC FACTORS AND NEXT YEARS BUDGETS AND OTHER EVENTS The District does not anticipate any major projects or significant changes to its infrastructure maintenance program for the subsequent fiscal year. In addition, it is anticipated that the general operations of the District will remain fairly constant. CONTACTING THE DISTRICT'S FINANCIAL MANAGEMENT This financial report is designed to provide our citizens, land owners,customers,investors and creditors with a general overview of the District's finances and to demonstrate the District's accountability for the financial resources it manages and the stewardship of the facilities it maintains. If you have questions about this report or need additional financial information,contact Naples Heritage Community Development District's Finance Department at 210 N. University Drive, Suite 702, Coral Springs, Florida, 33071. 5 NAPLES HERITAGE COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY, FLORIDA STATEMENT OF NET POSITION SEPTEMBER 30, 2021 Governmental Activities ASSETS Cash $ 56,653 Due from other governments 836 Deposits 560 Capital assets: Nondepreciable 6,122,404 Depreciable, net 1,396,465 Total assets 7,576,918 LIABI LI TI ES Accounts payable and accrued expenses 630 Total liabilities 630 NET POSITION Investment in capital assets 7,518,869 Unrestricted 57,419 Total net position $ 7,576,288 See notes to the financial statements 6 NAPLES HERITAGE COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY, FLORIDA STATEMENT OF ACTIVITIES FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 Net(Expense) Revenue and Program Changes in Net Revenues Position Charges for Governmental Functions/Programs Expenses Services Activities Primary government: Governmental activities: General government $ 53,710 $ 53,710 $ - Maintenance and operations 174,794 61,788 (113,006) Total governmental activities 228,504 115,498 (113,006) General revenues: Investment earnings 228 Total general revenues 228 Change in net position (112,778) Net position - beginning 7,689,066 Net position - ending $ 7,576,288 See notes to the financial statements 7 NAPLES HERITAGE COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY, FLORIDA BALANCE SHEET GOVERNMENTAL FUND SEPTEMBER 30, 2021 Total Major Fund Governmental General Fund ASSETS Cash $ 56,653 $ 56,653 Due from other governments 836 836 Deposits 560 560 Total assets $ 58,049 $ 58,049 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable and accrued expenses $ 630 $ 630 Total liabilities 630 630 Fund balance: Nonspendable: Deposits 560 560 Assigned to: Operating reserve 9,208 9,208 Roads,lake and fountain reserves 35,491 35,491 Unassigned 12,160 12,160 Total fund balance 57,419 57,419 Total liabilities and fund balance $ 58,049 $ 58,049 See notes to the financial statements 8 NAPLES HERITAGE COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY, FLORIDA RECONCILIATION OF THE BALANCE SHEET-GOVERNMENTAL FUND TO THE STATEMENT OF NET POSITION SEPTEMBER 30, 2021 Total fund balances - governmental funds $ 57,419 Amounts reported for governmental activities in the statement of net position are different because: Capital assets used in governmental activities are not financial resources and, therefore, are not reported as assets in the governmental funds. The statement of net position includes those capital assets, net of any accumulated depreciation, in the net position of the government as a whole. Cost of capital assets 11,380,085 Accumulated depreciation (3,861,216) 7,518,869 Net position of governmental activities $7,576,288 See notes to the financial statements 9 NAPLES HERITAGE COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY, FLORIDA STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE GOVERNMENTAL FUND FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 Total Major Fund Governmental General Fund REVENUES Assessments $ 115,498 $ 115,498 Interest 228 228 Total revenues 115,726 115,726 EXPENDITURES Current: General government 53,710 53,710 Maintenance and operations 16,299 16,299 Capital outlay 31,759 31,759 Total expenditures 101,768 101,768 Excess (deficiency) of revenues over (under) expenditures 13,958 13,958 Fund balance- beginning 43,461 43,461 Fund balance-ending $ 57,419 $ 57,419 See notes to the financial statements 10 NAPLES HERITAGE COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY, FLORIDA RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE OF GOVERNMENTAL FUND TO THE STATEMENT OF ACTIVITIES FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 Net change in fund balances- total governmental funds $ 13,958 Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlays as expenditures, however, in the statement of activities, the cost of those assets is eliminated and capitalized as capital assets. 31,759 Depreciation on capital assets is not recognized in the governmental fund statements but is reported as an expense in the statement of activities. (158,495) Change in net position of governmental activities $ (112,778) See notes to the financial statements 11 NAPLES HERITAGE COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY, FLORIDA NOTES TO FINANCIAL STATEMENTS NOTE 1 —NATURE OF ORGANIZATION AND REPORTING ENTITY Naples Heritage Community Development District ("District") was created on September 24, 1996 by Ordinance 96-57 of Collier County, Florida, pursuant to the Uniform Community Development District Act of 1980,otherwise known as Chapter 190, Florida Statutes.The Act provides among other things,the power to manage basic services for community development, power to borrow money and issue bonds, and to levy and assess non-ad valorem assessments for the financing and delivery of capital infrastructure. The District was established for the purposes of financing and managing the acquisition, construction, maintenance and operation of a portion of the infrastructure necessary for community development within the District. The District is governed by the Board of Supervisors ("Board"), which is composed of five members. The Supervisors are elected by qualified electors within the District. The Board of Supervisors of the District exercise all powers granted to the District pursuant to Chapter 190, Florida Statutes. The Board has the responsibility for: 1. Assessing and levying assessments. 2. Approving budgets. 3. Exercising control over facilities and properties. 4. Controlling the use of funds generated by the District. 5. Approving the hiring and firing of key personnel. 6. Financing improvements. The financial statements were prepared in accordance with Governmental Accounting Standards Board ("GASB")Statements. Under the provisions of those standards,the financial reporting entity consists of the primary government, organizations for which the District is considered to be financially accountable and other organizations for which the nature and significance of their relationship with the District are such that, if excluded,the financial statements of the District would be considered incomplete or misleading. There are no entities considered to be component units of the District;therefore,the financial statements include only the operations of the District. NOTE 2—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Government-Wide and Fund Financial Statements The basic financial statements include both government-wide and fund financial statements. The government-wide financial statements(i.e.,the statement of net position and the statement of activities) report information on all of the non-fiduciary activities of the primary government. For the most part,the effect of interfund activity has been removed from these statements. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers who purchase, use or directly benefit from goods, services or privileges provided by a given function or segment; operating-type special assessments for maintenance are treated as charges for services and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment.Other items not included among program revenues are reported instead as general revenues. 12 NOTE 2—SUMMARY OF SIGNIFICANT ACCOUNTING POLICES (Continued) Measurement Focus, Basis of Accounting and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred,regardless of the timing of related cash flows. Assessments are recognized as revenues in the year for which they are levied. Grants and similar items are to be recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures are recorded when a liability is incurred, as under accrual accounting. Assessments Assessments are non-ad valorem assessments on benefited lands within the District.Assessments are levied to pay for the operations and maintenance of the District. The fiscal year for which annual assessments are levied begins on October 1 with discounts available for payments through February 28 and become delinquent on April 1.The District's annual assessments for operations are billed and collected by the County Tax Collector. The amounts remitted to the District are net of applicable discounts or fees and include interest on monies held from the day of collection to the day of distribution. Assessments and interest associated with the current fiscal period are considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. The portion of assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. The District reports the following major governmental fund: General Fund The general fund is the general operating fund of the District. It is used to account for all financial resources except those required to be accounted for in another fund. When both restricted and unrestricted resources are available for use, it is the government's policy to use restricted resources first for qualifying expenditures, then unrestricted resources as they are needed. Assets, Liabilities and Net Position or Equity Restricted Assets These assets represent cash and investments set aside pursuant to external restrictions. Deposits and Investments The District's cash is considered to be cash on hand and demand deposits. The District has elected to proceed under the Alternative Investment Guidelines as set forth in Section 218.415 (17) Florida Statutes. The District may invest any surplus public funds in the following: a) The Local Government Surplus Trust Funds, or any intergovernmental investment pool authorized pursuant to the Florida Interlocal Cooperation Act; b) Securities and Exchange Commission registered money market funds with the highest credit quality rating from a nationally recognized rating agency; c) Interest bearing time deposits or savings accounts in qualified public depositories; d) Direct obligations of the U.S. Treasury. Securities listed in paragraph c and d shall be invested to provide sufficient liquidity to pay obligations as they come due. In addition, surplus funds may be deposited into certificates of deposit which are insured. 13 NOTE 2—SUMMARY OF SIGNIFICANT ACCOUNTING POLICES (Continued) Assets, Liabilities and Net Position or Equity(Continued) Deposits and Investments (Continued) The District records all interest revenue related to investment activities in the respective funds. Investments are measured at amortized cost or reported at fair value as required by generally accepted accounting principles. Inventories and Prepaid Items Inventories of governmental funds are recorded as expenditures when consumed rather than when purchased. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. Capital Assets Capital assets,which include property,plant and equipment,and infrastructure assets(e.g.,roads,sidewalks and similar items) are reported in the government activities columns in the government-wide financial statements. Capital assets are defined by the government as assets with an initial, individual cost of more than $5,000 (amount not rounded) and an estimated useful life in excess of two years. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at acquisition value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Property, plant and equipment of the District are depreciated using the straight-line method over the following estimated useful lives: Assets Years Improvements- Security and other 5-20 Infrastructure- Roadways 20-30 In the governmental fund financial statements, amounts incurred for the acquisition of capital assets are reported as fund expenditures. Depreciation expense is not reported in the governmental fund financial statements. Unearned Revenue Governmental funds report unearned revenue in connection with resources that have been received, but not yet earned. Deferred Outflows/Inflows of Resources In addition to assets,the statement of financial position will sometimes report a separate section for deferred outflows of resources.This separate financial statement element,deferred outflows of resources,represents a consumption of net position that applies to a future period(s)and so will not be recognized as an outflow of resources (expense/expenditure) until then. In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s)and so will not be recognized as an inflow of resources (revenue) until that time. Fund Equity/Net Position In the fund financial statements, governmental funds report non spendable and restricted fund balance for amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose. Assignments of fund balance represent tentative management plans that are subject to change. 14 NOTE 2—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Assets, Liabilities and Net Position or Equity(Continued) Fund Equity/Net Position (Continued) The District can establish limitations on the use of fund balance as follows: Committed fund balance —Amounts that can be used only for the specific purposes determined by a formal action(resolution)of the Board of Supervisors. Commitments may be changed or lifted only by the Board of Supervisors taking the same formal action (resolution) that imposed the constraint originally. Resources accumulated pursuant to stabilization arrangements sometimes are reported in this category. Assigned fund balance — Includes spendable fund balance amounts established by the Board of Supervisors that are intended to be used for specific purposes that are neither considered restricted nor committed. The Board may also assign fund balance as it does when appropriating fund balance to cover differences in estimated revenue and appropriations in the subsequent year's appropriated budget. Assignments are generally temporary and normally the same formal action need not be taken to remove the assignment. The District first uses committed fund balance,followed by assigned fund balance and then unassigned fund balance when expenditures are incurred for purposes for which amounts in any of the unrestricted fund balance classifications could be used. Net position is the difference between assets and deferred outflows of resources less liabilities and deferred inflows of resources. Net position in the government-wide financial statements are categorized as net investment in capital assets, restricted or unrestricted. Net investment in capital assets represents net position related to infrastructure and property, plant and equipment. Restricted net position represents the assets restricted by the District's Bond covenants or other contractual restrictions. Unrestricted net position consists of the net position not meeting the definition of either of the other two components. Other Disclosures Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenditures during the reporting period. Actual results could differ from those estimates. NOTE 3—BUDGETARY INFORMATION The District is required to establish a budgetary system and an approved Annual Budget. Annual Budgets are adopted on a basis consistent with generally accepted accounting principles for the general fund. All annual appropriations lapse at fiscal year-end. The District follows these procedures in establishing the budgetary data reflected in the financial statements. a) Each year the District Manager submits to the District Board a proposed operating budget for the fiscal year commencing the following October 1. b) Public hearings are conducted to obtain public comments. c) Prior to October 1, the budget is legally adopted by the District Board. d) All budget changes must be approved by the District Board. e) The budgets are adopted on a basis consistent with generally accepted accounting principles. f) Unused appropriation for annually budgeted funds lapse at the end of the year. 15 NOTE 4—DEPOSITS The District's cash balances were entirely covered by federal depository insurance or by a collateral pool pledged to the State Treasurer. Florida Statutes Chapter 280, "Florida Security for Public Deposits Act", requires all qualified depositories to deposit with the Treasurer or another banking institution eligible collateral equal to various percentages of the average daily balance for each month of all public deposits in excess of any applicable deposit insurance held. The percentage of eligible collateral (generally, U.S. Governmental and agency securities, state or local government debt, or corporate bonds)to public deposits is dependent upon the depository's financial history and its compliance with Chapter 280. In the event of a failure of a qualified public depository,the remaining public depositories would be responsible for covering any resulting losses. NOTE 5—CAPITAL ASSETS Capital asset activity for the fiscal year ended September 30, 2021was as follows: Beginning Ending Balance Additions Reductions Balance Governmental activities Capital assets, not being depreciated Land and land improvements $ 6,122,404 $ - $ - $ 6,122,404 Total capital assets, not being depreciated 6,122,404 - - 6,122,404 Capital assets, being depreciated Improvements-Security and other 1,276,891 31,759 - 1,308,650 Infrastructure-Roadways 3,949,031 - - 3,949,031 Total capital assets, being depreciated 5,225,922 31,759 - 5,257,681 Less accumulated depreciation for: Improvements-Security and other 1,178,626 13,361 - 1,191,987 Infrastructure-Roadways 2,524,095 145,134 - 2,669,229 Total accumulated depreciation 3,702,721 158,495 - 3,861,216 Total capital assets, being depreciated, net 1,523,201 (126,736) - 1,396,465 Governmental activities capital assets, net $ 7,645,605 $ (126,736) $ - $ 7,518,869 Depreciation expense was charged to the maintenance and operations function. NOTE 6-MANAGEMENT COMPANY The District has contracted with a management company to perform services which include financial and accounting advisory services. Certain employees of the management company also serve as officers of the District. Under the agreement, the District compensates the management company for management, accounting, financial reporting, and other administrative costs. NOTE 7-RISK MANAGEMENT The District is exposed to various risks of loss related to torts;theft of,damage to, and destruction of assets; errors and omissions; and natural disasters. The District has obtained commercial insurance from independent third parties to mitigate the costs of these risks;coverage may not extend to all situations.There were no settled claims during the past three years. 16 NAPLES HERITAGE COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY, FLORIDA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL—GENERAL FUND FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 Variance with Budgeted Final Budget- Amounts Actual Positive Original & Final Amounts (Negative) REVENUES Assessments $ 115,057 $ 115,498 $ 441 Interest 240 228 (12) Total revenues 115,297 115,726 429 EXPENDITURES Current: General government 57,873 53,710 4,163 Maintenance and operations 29,884 16,299 13,585 Capital outlay 27,540 31,759 (4,219) Total expenditures 115,297 101,768 13,529 Excess (deficiency) of revenues over (under) expenditures $ - 13,958 $ 13,958 Fund balance- beginning 43,461 Fund balance- ending $ 57,419 See notes to required supplementary information 17 NAPLES HERITAGE COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY, FLORIDA NOTES TO REQUIRED SUPPLEMENTARY INFORMATION The District is required to establish a budgetary system and an approved Annual Budget for the general fund. The District's budgeting process is based on estimates of cash receipts and cash expenditures which are approved by the Board. The budget approximates a basis consistent with accounting principles generally accepted in the United States of America (generally accepted accounting principles). The legal level of budgetary control, the level at which expenditures may not exceed budget, is in the aggregate. Any budget amendments that increase the aggregate budgeted appropriations must be approved by the Board of Supervisors. Actual general fund expenditures did not exceed appropriations for the fiscal year ended September 30, 2021. 18 NAPLES HERITAGE COMMUNITY DEVELOPMENT DISTRICT COLLIER COUNTY, FLORIDA OTHER INFORMATION-DATA ELEMENTS REQUIRED BY FL STATUTE 218.39(3) (C) UNAUDITED Element Comments Number of district employees compensated at 9/30/2021 0 Number of independent contractors compensated in September 2021 4 Employee compensation for FYE 9/30/2021 (paid/accrued) 0 Independent contractor compensation for FYE 9/30/2021 $69,498.22 Construction projects to begin on or after October 1; (>$65K) Not applicable Budget variance report See page 17 Ad Valorem taxes; Not applicable Millage rate FYE 9/30/2021 Not applicable Ad valorem taxes collected FYE 9/30/2021 Not applicable Outstanding Bonds: Not applicable Non ad valorem special assessments; Special assessment rate FYE 9/30/2021 Operations and maintenance-$150.00 Special assessments collected FYE 9/30/2021 $115,498.00 Outstanding Bonds: Not applicable 19 951 Yamato Road • Suite 280 Boca Raton, Florida 33431 Grau & Associates (561) 994-9299 • (800)299-4728 Fax(561) 994-5823 (;I R 111 11 I) I'UUI I( \( ( O1IN i ' ^ + www.graucpa.com 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 Naples Heritage Community Development District Collier County, Florida We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States,the financial statements of the governmental activities and the major fund of Naples Heritage Community Development District, Collier County, Florida("District") as of and for the fiscal year ended September 30, 2021, and the related notes to the financial statements, which collectively comprise the District's basic financial statements, and have issued our opinion thereon dated March 18, 2022. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements,we considered the District's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements,but not for the purpose of expressing an opinion on the effectiveness of the District's internal control.Accordingly,we do not express an opinion on the effectiveness of the District's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control,such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control 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. Compliance and Other Matters As part of obtaining reasonable assurance about whether the District's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and 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. 20 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. March 18, 2022 21 / \ 951 Yamato ton, Road • Suite 1 // \ � Boca Raton, Florida 33431 Grau & Associates (561) 994-9299 • (800) 299-4728 Fax (561) 994-5823 j CERTIFIED PUBLIC ACCOUNTANTS www.graucpa.com INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH THE REQUIREMENTS OF SECTION 218.415, FLORIDA STATUTES, REQUIRED BY RULE 10.556(10) OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA To the Board of Supervisors Naples Heritage Community Development District Collier County, Florida We have examined Naples Heritage Community Development District, Collier County, Florida's ("District") compliance with the requirements of Section 218.415,Florida Statutes,in accordance with Rule 10.556(10)of the Auditor General of the State of Florida during the fiscal year ended September 30,2021. Management is responsible for the District's compliance with those requirements.Our responsibility is to express an opinion on the 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.Those standards require that we plan and perform the examination to obtain reasonable assurance about whether the District complied, in all material respects,with the specified requirements referenced in Section 218.415, Florida Statutes. An examination involves performing procedures to obtain evidence about whether the District complied with the specified requirements. The nature, timing, and extent of the procedures selected depend on our judgment, including an assessment of the risks of material noncompliance,whether due to fraud or error.We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion. Our examination does not provide a legal determination on the District's compliance with specified requirements. In our opinion, the District complied, in all material respects, with the aforementioned requirements for the fiscal year ended September 30, 2021. This report 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,management,and the Board of Supervisors of Naples Heritage Community Development District, Collier County, Florida and is not intended to be and should not be used by anyone other than these specified parties. March 18, 2022 22 951 o Road • Suite 280 f \1 Boca Raton, Florida 33431 Grau & Associates (561) 994-9299 • (800) 299-4728 Fax(561) 994-5823 ( I.IZIli II I> I'IIRI I( \( ( OIINIr\NI www.graucpa.com MANAGEMENT LETTER PURSUANT TO THE RULES OF THE AUDITOR GENERAL FOR THE STATE OF FLORIDA To the Board of Supervisors Naples Heritage Community Development District Collier County, Florida Report on the Financial Statements We have audited the accompanying basic financial statements of Naples Heritage Community Development District, Collier County, Florida("District")as of and for the fiscal year ended September 30, 2021,and have issued our report thereon dated March 18, 2022. Auditor's Responsibility We conducted our audit in accordance with auditing standards generally accepted in the United States of America;the standards applicable to financial audits contained in Government Auditing Standards,issued by the Comptroller General of the United States; and Chapter 10.550, Rules of the 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 the Financial Statements Performed in Accordance with Government Auditing Standards; and Independent Auditor's Report on an examination conducted in accordance with AICPA Professional Standards, AT-C Section 315, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports,which are dated March 18, 2022, should be considered in conjunction with this management letter. Purpose of this Letter The purpose of this letter is to comment on those matters required by Chapter 10.550 of the Rules of the Auditor General for the State of Florida. Accordingly, in connection with our audit of the financial statements of the District, as described in the first paragraph, we report the following: I. Current year findings and recommendations. II. Status of prior year findings and recommendations. III. Compliance with the Provisions of the Auditor General of the State of Florida. 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, as applicable, management, and the Board of Supervisors of Naples Heritage Community Development District,Collier County, Florida and is not intended to be and should not be used by anyone other than these specified parties. We wish to thank Naples Heritage Community Development District, Collier County, Florida and the personnel associated with it, for the opportunity to be of service to them in this endeavor as well as future engagements, and the courtesies extended to us. March 18, 2022 23 REPORT TO MANAGEMENT I. CURRENT YEAR FINDINGS AND RECOMMENDATIONS None II. PRIOR YEAR FINDINGS None III. COMPLIANCE WITH THE PROVISIONS OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA Unless otherwise required to be reported in the auditor's report on compliance and internal controls,the management letter shall include, but not be limited to the following: 1. A statement as to whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. There were no significant findings and recommendations made in the preceding annual financial audit report for the fiscal year ended September 30, 2020. 2. Any recommendations to improve the local governmental entity's financial management. There were no such matters discovered by, or that came to the attention of, the auditor, to be reported for the fiscal year ended September 30, 2021. 3. 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. There were no such matters discovered by, or that came to the attention of, the auditor, to be reported, for the fiscal year ended September 30, 2021. 4. The name or official title and legal authority of the District are disclosed in the notes to the financial statements. 5. The District has not met one or more of the financial emergency conditions described in Section 218.503(1), Florida Statutes. 6. We applied financial condition assessment procedures and no deteriorating financial conditions were noted as of September 30,2021. It is management's responsibility to monitor financial condition,and our financial condition assessment was based in part on representations made by management and the review of financial information provided by same. 7. Management has provided the specific information required by Section 218.39(3)(c) in the Other Information section of the financial statements on page 19. 24 Notice of Regular Meeting Schedule Naples Heritage Community Development District The Board of Supervisors of the Naples Heritage Community Development District will hold their meetings the for Fiscal Year 2022/2023 at the Naples Heritage Golf and Country Club Clubhouse, 8150 Heritage Club Way,Naples, Florida at 9:00 a.m. as follows: November 1,2022 January 3,2023 March 7, 2023 April 4,2023 May 16, 2023 The meetings are open to the public and will be conducted in accordance with the provision of Florida Law for Community Development Districts. There may be occasions when one or more Supervisors will participate by telephone. These meetings may be continued to a date, time, and place to be specified on the record at the meeting. Future meetings will be separately published at least seven days prior with the date, time and location. A copy of the agenda for these meetings may be obtained from the District Manager's Office,210 N. University Drive, Suite 702,Coral Springs,FL 33071,(954) 603-0033, or by visiting the District's website at www.naplesheritagecdd.com. Additionally,interested parties may refer to the District's website for the latest District information. Pursuant to provisions of the Americans with Disabilities Act,any person requiring special accommodations at these meetings because of a disability or physical impairment should contact the District Manager's Office at least forty-eight(48)hours prior to the meeting. If you are hearing or speech impaired, please contact the Florida Relay Service by dialing 7-1-1,or 1-800-955-8771 (TTY)/ 1-800-955-8770 (Voice),for aid in contacting the District Manager's Office. Each person who decides to appeal any action taken at these meetings is advised that person will need a record of the proceedings and that accordingly, the person may need to ensure that a verbatim record of the proceedings is made, including the testimony and evidence upon which such appeal is to be based. Justin Faircloth District Manager NAPLES HERITAGE Community Development District Financial Report February 28, 2022 Prepared by 6INFRAMARK INFRASTRUCTURE MANAGEMENT SERVICES NAPLES HERITAGE Community Development District Table of Contents FINANCIAL STATEMENTS Balance Sheet Page 1 Statement of Revenues, Expenditures and Changes in Fund Balances General Fund Page 2-3 SUPPORTING SCHEDULES Non-Ad Valorem Special Assessments Page 4 Cash and Investment Balances Page 5 Check Register Page 6 NAPLES HERITAGE Community Development District Financial Statements (Unaudited) February 28, 2022 NAPLES HERITAGE Community Development District General Fund Balance Sheet February 28, 2022 ACCOUNT DESCRIPTION TOTAL ASSETS Cash-Checking Account $ 126,479 Due From Other Gov'tl Units 61 Investments: Money Market Account 7,273 Deposits 560 TOTAL ASSETS $ 134,373 LIABILITIES Accounts Payable $ 4,038 TOTAL LIABILITIES 4,038 FUND BALANCES Nonspendable: Deposits 560 Assigned to: Operating Reserves 9,208 Reserves-Fountains 800 Reserves-Road and Lakes 34,691 Unassigned: 85,076 TOTAL FUND BALANCES $ 130,335 TOTAL LIABILITIES&FUND BALANCES $ 134,373 Page 1 NAPLES HERITAGE Community Development District General Fund Statement of Revenues, Expenditures and Changes in Fund Balances For the Period Ending February 28, 2022 ANNUAL YTD ACTUAL ADOPTED YEAR TO DATE YEAR TO DATE VARIANCE($) AS A%OF FEB-22 FEB-22 ACCOUNT DESCRIPTION BUDGET BUDGET ACTUAL FAV(UNFAV) ADOPTED BUD BUDGET ACTUAL REVENUES Interest-Investments $ 240 $ 100 $ 106 $ 6 44.17% $ 20 $ 26 Interest-Tax Collector - 7 7 0.00% - - Special Assmnts-Tax Collector 119,851 114,133 114,363 230 95.42% 3,250 3,300 Special Assmnts-Discounts (4,794) (4,679) (4,409) 270 91.97% (64) (66) TOTAL REVENUES 115,297 109,554 110,067 513 95.46% 3,206 3,260 EXPENDITURES Administration P/R-Board of Supervisors 5,000 2,000 2,000 - 40.00% - - FICA Taxes 383 153 153 - 39.95 h - - ProfServ-Engineering 2,000 2,000 2,503 (503) 125.15% 637 1,140 ProfServ-Field Management 869 - - - 0.00% - - ProfServ-Legal Services 3,500 700 698 2 19.94% - - ProfServ-Mgmt Consulting 23,981 9,992 9,992 - 41.67% 1,998 1,998 ProfServ-Property Appraiser 1,798 1,798 2 1,796 0.11% - - ProfServ-Web Site Maintenance 694 289 289 - 41.64% 58 58 Auditing Services 3,000 1,500 1,500 - 50.00% 1,500 1,500 Postage and Freight 750 313 297 16 39.60% 63 113 Insurance-General Liability 7,747 7,747 7,747 - 100.00% - - Printing and Binding 900 375 143 232 15.89% 75 4 Legal Advertising 2,400 267 294 (27) 12.25% - - Misc-Bank Charges 546 - - - 0.00% - - Misc-Assessment Collection Cost 2,397 2,283 2,199 84 91.74% 65 65 Misc-Contingency 376 - - - 0.00% - - Misc-Web Hosting 1,850 800 1,045 (245) 56.49% 400 388 Office Expense 250 150 150 - 60.00% - - Annual District Filing Fee 175 175 175 - 100.00% - - Total Administration 58,616 30,542 29,187 1,355 49.79% 4,796 5,266 Field Contracts-Fountain 716 358 358 - 50.00% - - Contracts-Aerator Maintenance 2,350 982 982 - 41.79% - - Electricity-Aerator 6,000 2,500 3,273 (773) 54.55% 500 725 R&M-Fence 480 - - - 0.00% - - Misc-Contingency 19,595 3,351 3,351 - 17.10% - - Total Field 29,141 7,191 7,964 (773) 27.33% 500 725 Reserves Reserve-Fountain 200 - - - 0.00% - - Reserve-Roads and Lakes 27,340 - - - 0.00% - - Total Reserves 27,540 - - 0.00% - - TOTAL EXPENDITURES&RESERVES 115,297 37,733 37,151 582 32.22% 5,296 5,991 Page 2 NAPLES HERITAGE Community Development District General Fund Statement of Revenues, Expenditures and Changes in Fund Balances For the Period Ending February 28, 2022 ANNUAL YTD ACTUAL ADOPTED YEAR TO DATE YEAR TO DATE VARIANCE($) AS A% FEB-22 FEB-22 ACCOUNT DESCRIPTION BUDGET BUDGET ACTUAL FAV(UNFAV) ADOPTED BUD BUDGET ACTUAL Excess(deficiency)of revenues Over(under)expenditures - 71,821 72,916 1,095 0.00% (2,090) (2,731) Net change in fund balance $ - $ 71,821 $ 72,916 $ 1,095 0.00% $ (2,090) $ (2,731) FUND BALANCE,BEGINNING(OCT 1,2021) 57,419 57,419 57,419 FUND BALANCE,ENDING $ 57,419 $ 129,240 $ 130,335 Page 3 NAPLES HERITAGE Community Development District Supporting Schedules February 28, 2022 NAPLES HERITAGE Community Development District Non-Ad Valorem Special Assessments -Collier County Tax Collector Monthly Collection Distributions For the Fiscal Year Ending September 30, 2022 Discount/ Gross Date Net Amount (Penalties) Collection Amount Received Received Amount Costs Received Assessments Levied $ 119,850 Allocation % 100% 10/28/21 $ 606 $ 34 $ 12 $ 653 11/04/21 2,681 114 55 2,850 11/12/21 15,100 642 308 16,050 11/18/21 21,874 930 446 23,250 12/03/21 43,606 1,854 890 46,350 12/23/21 15,138 609 309 16,056 01/21/22 5,581 159 114 5,854 02/22/22 3,169 66 65 3,300 TOTAL $ 107,756 $ 4,409 $ 2,199 $ 114,363 % COLLECTED 95.4% TOTAL OUTSTANDING $ 5,487 Page 4 NAPLES HERITAGE Community Development District Cash and Investment Balances February 28, 2022 ACCOUNT NAME BANK NAME YIELD MATURITY BALANCE GENERAL FUND Checking Account-Operating Valley National 0.25% N/A 126,479 Money Market Account BankUnited 0.15% N/A 7,273 Total $ 133,752 Page 5 V N aD O)NO N M W O M W M O1-N I-O M M O)W O W N N I-N N V 0)O R M V 0 OD V.-0 M U)M W MOO V 0)V aD N M v- N el3 a al gal R O COO(](n r Nay el N O O ad Nof O V(�N V 1. 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W O)0,-N M V N W I-W V Z M V NNN W W 0)0 0 0 N N M M M M O)MMM M _ J 0 0 0 0 0 0 0 0 0 0 0 0 0 0,-,-,-N N N N N N N N N N N V) WM N N N N N N N N N N N N N N N N N 0 0 0 0 0 0 0 0 0 0 0 W C C O Q N N N N N N N N N N N N N N N N N 00000000000 m 0 Q -I0/ E W Zd 0 • Z 0000000000000000000000000000 U. 'U 0000000000000000000000000000 From:Scott Copeland <copelandsei@aol.com> Sent:Thursday, March 10, 2022 5:44 PM To: Faircloth,Justin <justin.faircloth@inframark.com> Subject: Naples Heritage CDD Structure "F" Pictures Justin, As stated today on the phone we worked on drainage Structure "F"to clean it out but during the process found out that it would be a waste of the CDD's money because once we drained the structure of water, we found that the existing culverts attaching to CS "F" is over 1/2 full of sand and debris which would just fill back in this weekend's up and coming rainstorm. rains. So we will not be charging you for today's work on structure "F"and recommend that a Vac truck be hired with a Jetter system to flush the giant sand bars out that are blocking the culverts as seen in the pictures attached that we took today, while the culvert system was drained. Please do not hesitate to call or email me if you have any questions or need additional information. Thanks Scott Copeland Southern Enterprises Inc. 1668 Many Road, N. Fort Myers, Fl. 33903 Email : copelandseiaol.com or gmail.com Work : 239-995-3684 Fax : 239-995-0058 Cell : 239-707-6806 3/10/2022 Culvert,South toward Structure "F" • • 411. dr • Culvert, Looking North under Street /1111111111k. r , or ♦•••R ♦•♦R♦ M.R.I. Inspection LLC ♦ AI R R ♦ • •♦• 11 it ♦ 5570 Zip Dr. � •• ••�•�•�� Fort Myers FI.33905 239-984-5241 Office 239-707-5034 Mike tea/ 239-236-1234 Fax CCC 1507963 Name Proposal Date Estimate if I Naples Heritage Golf& CC 3/25/2022 3322 Project 8150 Heritage Club Way Naples Fl. 34112 VAC Truck Services Description Total This proposal is for the total cost to clean one pipe connecting tract C3 to tract C5 leading to control structure CS-F.We will 2.800.00 utilize Vac Truck.set plugs and dewater pipes and remove sand&debris. This price includes all labor, material,and equipment needed to complete this job. Any work completed outside the scope of this proposal may result in additional charges. Total $2,800.00 AI.R.I.t'nderwater Specialist utilizes the federal F:%erifs program in contracts with public employer. %Il material is guaranteed to he as specified. VI work to be completed in a workmanlike manner according to standard practices. Additional charges was occur Kan?,changes are made during scope of work and will become an extra charge user and abuse the estimate. All agreements contingent upon strikes.accidents or(Islas.hesond our control. Owner to carry fire,tornado and other necessary insurance. All contractors are fulls cosered under general liability insurance.N e will not be responsible for any unforseen incidents.when we dew aler am wet well system.Due to sink holes cresases or breeches etc.in and around wet well.I his proposal does not include replacing any IandscapingiGrass.tree.,shrubs.etc.l all jobsites will be left clean, Authorized Signature /1ael edford ter✓ Michael Radford President Arreptaurr of Proposal The Above price, specifications and conditions are satisfactory and are hereby accepted. You are authorized to do the work as specified. Payments will be made within 30 days after invoiced. If not we will agree to pay a 10%late fee. This proposal may be withdrawn if not accepted within thirty(30)days. Signature Date of acceptance