South Village Community Development District

ANNUAL FINANCIAL REPORT

September 30, 2022

South Village Community Development District ANNUAL FINANCIAL REPORT
September 30, 2022 TABLE OF CONTENTS

Page Number

REPORT OF INDEPENDENT AUDITORS	1-3
MANAGEMENT’S DISCUSSION AND ANALYSIS	4-9
BASIC FINANCIAL STATEMENTS
Government-wide Financial Statements
Statement of Net Position	10
Statement of Activities	11
Fund Financial Statements
Balance Sheet – Governmental Funds	12
Reconciliation of Total Governmental Fund Balances
to Net Position of Governmental Activities	13
Statement of Revenues, Expenditures and Changes in
Fund Balances – Governmental Funds	14
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds
to the Statement of Activities	15
Statement of Revenues, Expenditures and Changes in Fund
Balances – Budget and Actual – General Fund	16
Statement of Revenues, Expenditures and Changes in Fund
Balances – Budget and Actual – Special Revenue – Recreation Fund	17
Statement of Fund Net Position – Enterprise Fund	18
Statement of Revenues, Expenses and Changes in Fund
Net Position – Enterprise Fund	19
Statement of Cash Flows – Enterprise Fund	20
Notes to Financial Statements	21-40
INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS	41-42
MANAGEMENT LETTER	43-45
INDEPENDENT ACCOUNTANTS’ REPORT/COMPLIANCE WITH
SECTION 218.415, FLORIDA STATUTES	46

REPORT OF INDEPENDENT AUDITORS

To the Board of Supervisors
South Village Community Development District Clay County, Florida
Report on Audit of the Financial Statements
Opinion
We have audited the accompanying financial statements of the governmental activities, business-type activities, and each major fund of South Village Community Development District (the “District”) as of and for the year ended, September 30, 2022 and the related notes to financial statements, which collectively comprise the District’s basic financial statements as listed in the table of contents.
In our opinion, the basic financial statements referred to above present fairly, in all material respects, the financial position of the governmental activities, the business-type activities, each major fund and the aggregate fund information of South Village Community Development District as of September 30, 2022, and the respective changes in financial position and the budgetary comparison for the General and Special Revenue Funds for the year then ended in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
We conducted our audits in accordance with auditing standards generally accepted in the United States of America (GAAS), and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the District and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Responsibilities of Management 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; and for 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.

- 1 -

To the Board of Supervisors
South Village Community Development District

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the District’s ability to continue as a going concern for one year beyond the financial statement date, including currently known information that may raise substantial doubt thereafter.

Auditor’s Responsibility for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users made on the basis of these financial statements.

In performing an audit in accordance with GAAS and Government Auditing Standards, we:

Exercise professional judgement and maintain professional skepticism throughout the audit.
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Obtain an understanding of internal control relevant to the audit 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 District’s internal control. Accordingly, no such opinion is expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
Conclude whether, in our judgement, there are conditions or events, considered in the aggregate, that raise substantial doubt about the District’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.

- 2 -

To the Board of Supervisors
South Village Community Development District

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that Management’s Discussion and Analysis be presented to supplement the basic financial statements. Such information is the responsibility of management and, 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 obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued a report dated June 26, 2023, on our consideration of the District’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations and contracts.

The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering South Village Community Development District’s control over financial reporting and compliance.

Berger, Toombs, Elam, Gaines & Frank Certified Public Accountants PL
Fort Pierce, Florida June 26, 2023

- 3 -

Management’s discussion and analysis of South Village Community Development District’s (the “District”) financial performance provides an objective and easily readable analysis of the District’s financial activities. The analysis provides summary financial information for the District and should be read in conjunction with the District’s financial statements.

OVERVIEW OF THE FINANCIAL STATEMENTS

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

The Government-wide financial statements are the statement of net position and the statement of activities. These statements use accounting methods similar to those used by private-sector companies. Emphasis is placed on the net position of governmental activities and business-type activities and the change in net position. Governmental activities are primarily supported by special assessments. Business-type activities are supported by charges to the users of those activities, such as golf course and restaurant service charges.

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

The statement of activities presents information on all revenues and expenses of the District and the change in net position. Expenses are reported by major function and program revenues relating to those functions are reported, providing the net cost of all functions provided by the District. To assist in understanding the District’s operations, expenses have been reported as governmental activities or business-type activities. Governmental activities financed by the District include general government, physical environment, culture/recreation, and debt service. Business-type activities financed by user charges include golf course and restaurant services.

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

OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)

Fund financial statements include a balance sheet and a statement of revenues, expenditures and changes in fund balances for all governmental funds. A statement of revenues, expenditures, and changes in fund balances – budget and actual is provided for the District’s General Fund and Special Revenue Fund. For the enterprise fund, a statement of fund net position, a statement of revenues, expenses, and changes in fund net position; and a statement of cash flows are presented. 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, split between Governmental Activities and Business-type Activities. These statements are comparable to private-sector companies and give a good understanding of the District’s overall financial health and how the District paid for the various activities, or functions, provided by the District. All assets of the District, including capital assets are reported in the statement of net position. All liabilities, including principal outstanding on bonds are included. The statement of activities includes depreciation on all long lived assets of the District, but transactions between the different functions of the District have been eliminated in order to avoid “doubling up” the revenues and expenses. The fund financial statements provide a picture of the major funds of the District. In the case of governmental activities, outlays for long lived assets are reported as expenditures and long-term liabilities, such as general obligation bonds, are not included in the fund financial statements. To provide a link from the fund financial statements to the government-wide financial statements, 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, 2022:

The District’s total liabilities exceeded total assets and deferred outflows of resources by
$(2,887,072) (net position). Net investment in capital assets for Governmental Activities was $(7,507,390).  Net investment in capital assets for Business-type Activities was
$2,418,195. Unrestricted net position for Governmental Activities was $522,492 and for Business-type Activities was $855,498. Restricted net position for Governmental Activities was $824,133.

OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)
Financial Highlights (Continued)
Governmental activities revenues totaled $4,628,522 while governmental activities expenses and transfers totaled $4,119,518. Business-type Activities revenues and transfers  totaled  $4,982,572,  while  Business-type  Activities  expenses  totaled
$4,334,963.
Financial Analysis of the District
The following schedule provides a summary of the assets, liabilities and net position of the District and is presented by category for comparison purposes.
Net Position

Governmental Activities	Business-type Activities	Total
	2022	 	2021				2022	 	2021				2022	 	2021		

Current assets	
$	589,275	
$	918,072	
$	1,075,845	
$	351,370	
$	1,665,120	
$	1,269,442	
Restricted assets	2,121,128	2,470,680	-	-	2,121,128	2,470,680	
Capital assets, net	14,954,769	15,657,727	2,359,619	2,419,940	17,314,388	18,077,667	
Leased equipment		- 		- 		227,784 		352,030  *		227,784 		352,030 	
Total Assets		17,665,172 		19,046,479 		3,663,248 		3,123,340 		21,328,420 		22,169,819 	
Deferred outflows		173,349 		187,125 		- 		- 		173,349 		187,125 	
Current liabilities	1,450,784	1,471,777	220,347	171,245	1,671,131	1,643,022	
Non-current liabilities		22,548,502 		24,431,596 		169,208 		326,011  *		22,717,710 		24,757,607 	
Total Liabilities		23,999,286 		25,903,373 		389,555 		497,256 		24,388,841 		26,400,629 	

Net Position
Net investment in
capital assets	(7,507,390)	(7,511,585)	2,418,195	2,419,940	(5,089,195)	(5,091,645)	
Restricted	824,133	1,128,584	-	-	824,133	1,128,584	
Unrestricted		522,492  	(286,768)		855,498  	206,144  * 	1,377,990  	(80,624)	
Total Net Position	 $  (6,160,765)  $  (6,669,769)	 $  3,273,693   $ 2,626,084   $  (2,887,072)  $  (4,043,685)	

*Restated

The decrease in current assets for governmental activities is related to the decrease in internal balances in the current year.
The increase in current assets for business-type activities is related to the increase in internal balances and a transfer in the current year.
The decrease in non-current liabilities for governmental activities is primarily related to principal payments made on the bonds in the current year.

OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)

Financial Analysis of the District (Continued)

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

Change in Net Position

Governmental Activities

Business-type Activities

Total

	2022	 	2021	 	2022	 	2021	2022	 	2021	
Program Revenues		
Charges for services	$	4,619,644	$	5,711,477	$ 4,363,643	$ 3,954,498	$  8,983,287	$	9,665,975	
Capital contributions General Revenues
Investment earnings	-

8,878	204,824

961	-

-	-

-	-

8,878	-

961	
Miscellaneous		- 		- 		192,000 		240,000 		192,000 		240,000 	
Total Revenues	4,628,522	5,917,262	4,555,643	4,194,498	9,184,165	9,906,936	

Expenses							
General government	163,214	177,792	-	-	163,214	177,792	
Physical environment	720,764	687,385	-	-	720,764	687,385	
Culture/recreation	1,718,584	1,634,567	-	-	1,718,584	1,634,567	
Interest and other charges	1,090,027	1,176,651	-	-	1,090,027	1,176,651	
Golf course and restaurant		- 		- 		4,334,963  	4,147,624  *		4,334,963 		4,147,624  *	
Total Expenses		3,692,589 		3,676,395 		4,334,963	4,147,624 		8,027,552 		7,824,019 	

Transfers	
	(426,929)		
	- 		
	426,929 		
	- 	
	- 		
	- 	
Change in Net Position	509,004		2,240,867		647,609		46,874	1,156,613		2,082,917	
Net Position - Beginning of Year		(6,669,769)			(8,910,636)			2,626,084 			2,579,210 		(4,043,685)			(6,331,426)	
Net Position - End of Year	 $  (6,160,765)		 $  (6,669,769)		 $ 3,273,693 		 $ 2,626,084  *	 $ (2,887,072)		 $  (4,248,509) *	

*Restated											

The decrease in governmental activities charges for services is primarily the result of the decrease in special assessments in the current year.

The decrease in miscellaneous revenues in business-type activities relates to less annex fees collected in the current year.

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

The increase in business-type activities charges for services and expenses is related to the increase activity at the golf course in the current year.

OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)

Capital Assets Activity

The following schedule provides a summary of the District’s capital assets as of September 30, 2022.

Description

Governmental Activities

Business-type
Activities	Total

Land	$	649,569	$	1,359,781	$	2,009,350	
Construction in progress	5,438,450	-	5,438,450	
Infrastructure	5,283,667	407,040	5,690,707	
Recreation facilities	11,607,239	738,577	12,345,816	
Equipment	197,945	219,973	417,918	
Leased equipment, net	-	227,784	227,784	
Accumulated depreciation		(8,222,101)		(365,752)		(8,587,853)	
Total Capital Assets (Net)	 $  14,954,769 	 $	2,587,403 	 $	17,542,172 	

The governmental activities activity in the current year include depreciation of $710,516, and capital asset additions of $7,558.

Business-type activities changes in the current year include depreciation of $60,321 and GASB 87 implementation of leased equipment of $227,784, net.

General Fund Budgetary Highlights

Budgeted expenditures exceeded actual expenditures for the year mostly because there were lower legal and personnel expenditures than were anticipated.

The budget was not amended during the year.

OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)

Debt Management

Governmental Activities debt includes the following:

In June 2016, the District issued $17,075,000 Capital Improvement Revenue and Refunding Bonds, Series 2016A-1, $5,480,000 Capital Improvement Revenue and Refunding Bonds, Series 2016A-2, and $5,530,000 Capital Improvement Revenue and Refunding Bonds, Series 2016A-3. These bonds were issued to finance the acquisition and construction of certain improvements for the benefit of the District and to refund the Series 2005A Bonds. The balance outstanding at September 30, 2022 was $12,995,000 for the A-1 bond, $4,175,000 for the A-2 bond and $3,595,000 for the A-3 bond.

In January 2019, the District issued $3,255,000 Capital Improvement Revenue Bonds, Series 2019A and $1,700,000 Capital Improvement Revenue Bonds, Series 2019B. The bonds were issued to finance the acquisition and construction of the Series 2019 Project. The balance outstanding at September 30, 2022 was $3,110,000 for the Series 2019A Bonds and $40,000 for the Series 2019B Bonds.

Economic Factors and Next Year’s Budget

South Village 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 2023.

Request for Information

The financial report is designed to provide a general overview of South Village 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 South Village Community Development District, GMS-NF, LLC, 475 West Town Place, Suite 114, St. Augustine, Florida 32092.

South Village Community Development District	
STATEMENT OF NET POSITION	
September 30, 2022	

169,208	
        - 	
     169,208 	
     389,555 	

169,208	
   22,548,502 	
   22,717,710 	
   24,388,841 	

	Governmental	
	Activities	
ASSETS		
Current Assets:		
Cash and equivalents	$	163,197	
Investments	401,125	
Accounts receivable, net	-	
Due from others	2,897	
Inventory	20,694	
Prepaid expenses	5,456	
Deposits	-	
Internal balances		(4,094)	
Total Current Assets		589,275 	
Non-Current Assets:		
Restricted assets:		
Investments - debt service	1,538,653	
Investments - capital projects	582,475	
Capital assets not being depreciated:		
Land	649,569	
Construction in progress	5,438,450	
Capital assets being depreciated:		
Infrastructure	5,283,667	
Recreation facilites	11,607,239	
Equipment	197,945	
Leased equipment, net	-	
Less: Accumulated depreciation		(8,222,101)	
Total Non-Current Assets		17,075,897 	
Total Assets		17,665,172 	

Business-type	
Activities	

Total

$	939,162	
-	
16,908	
-	
103,822	
5,456	
6,403	
	4,094 	
	1,075,845 	

$	1,102,359	
401,125	
16,908	
2,897	
124,516	
10,912	
6,403	
	- 	
	1,665,120 	

-	
-	

1,538,653	
582,475	

1,359,781	
-	

2,009,350	
5,438,450	

407,040	
738,577	
219,973	
227,784	
    (365,752)	
    2,587,403 	
    3,663,248 	

5,690,707	
12,345,816	
417,918	
227,784	
    (8,587,853)	
   19,663,300 	
   21,328,420 	

LIABILITIES		
Current Liabilities:		
Accounts payable and accrued expenses	66,783	
Unearned revenues	-	
Accrued compensated absences	-	
Accrued interest	419,001	
Bonds payable		965,000 	
Total Current Liabilities		1,450,784 	
Non-Current Liabilities:		
Leases payable	-	
Bonds payable, net		22,548,502 	
Total Current Liabilities		22,548,502 	
Total Liabilities		23,999,286 	

114,253	
61,061	
45,033	
-	
        - 	
     220,347 	

181,036	
61,061	
45,033	
419,001	
     965,000 	
    1,671,131 	

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

(7,507,390)	
241,658	
582,475	
	522,492 	
 $	(6,160,765)	

2,418,195	
-	
-	
	855,498 	
 $	3,273,693 	

(5,089,195)	
241,658	
582,475	
	1,377,990 	
 $	(2,887,072)	

DEFERRED OUTFLOWS OF RESOURCES	
Deferred amount on refunding, net	

173,349	-	173,349

See accompanying notes to financial statements.
- 10 -

South Village Community Development District	
STATEMENT OF ACTIVITIES	
For the Year Ended September 30, 2022	

$	(163,214)	
(720,764)	
(1,718,584)	
	(1,090,027)	
	(3,692,589)	

$	189,645	
514,031	
1,277,940	
	2,638,028 	
	4,619,644 	

$	26,431	
(206,733)	
(440,644)	
	1,548,001 	
	927,055 	

$	-	
-	
-	
	- 	
	- 	

$	26,431	
(206,733)	
(440,644)	
	1,548,001 	
	927,055 	

Program	
Revenues	
Charges for	
Services	

Net (Expense) Revenue and	
Changes in Net Position	
Governmental	Business-type	
Activities	Activities	

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

Expenses	Total

Business-type activities	
Golf course and restaurant	

	(4,334,963)		4,363,643 		- 		28,680 		28,680 

Total Primary Government

 $	(8,027,552)

 $	8,983,287 

927,055	28,680	955,735

General revenues:	
Investment earnings	
Miscellaneous revenues	
Total General Revenues	

8,878	
-	
8,878	

-	
192,000	
192,000	

8,878	
192,000	
200,878	

* Restated

Transfers	(426,929)	426,929	-

Change in Net Position	509,004	647,609	1,156,613

Net Position - October 1, 2021	
Net Position - September 30, 2022	

	(6,669,769)	
 $	(6,160,765)	

	2,626,084 	*		(4,043,685)	
 $	3,273,693 		 $ (2,887,072)	

See accompanying notes to financial statements.
- 11 -

South Village Community Development District	
BALANCE SHEET –	
GOVERNMENTAL FUNDS	
September 30, 2022	

Special	2016A-1/A-2	2016A-3	2019	2016A-1/A2	2016A-3	2019	Total	
Revenue -	Debt	Debt	Debt	Capital	Capital	Capital	Governmental	
Recreation	Service	Service	Service	Projects	Projects	Projects	Funds	

ASSETS	General

$	76,368		
$	86,829		
$	-		
$	-		
$	-		
$	-		
$	-		
$	-		
$	163,197	
401,125		-		-		-		-		-		-		-		401,125	
43,957		31,490		-		-		-		-		-		-		75,447	
2,897		-		-		-		-		-		-		-		2,897	
-		20,694		-		-		-		-		-		-		20,694	
-		5,456		-		-		-		-		-		-		5,456	
-		-		1,077,458		265,891		195,304		9,866		572,208		401		2,121,128	

Cash	
Investments	
Due from other funds	
Due from other	
Inventory	
Prepaid expenses	
Restricted assets:	
Investments, at fair value	
Total Assets	

 $ 524,347 

LIABILITIES AND FUND BALANCES	
LIABILITIES	
Accounts payable and accrued expenses	
Due to other funds	
Total Liabilities	

$	55,099	
	- 	
	55,099 	

FUND BALANCES	
Nonspendable-prepaids/inventory	
Restricted for debt service	
Restricted for capital projects	
Committed recreation	
Unassigned	
Total Fund Balances	

Total Liabilities and Fund Balances	 $ 524,347 	

 $ 144,469 

$	11,684	
   79,541 	
   91,225 	

-		26,150		-		-		-		-		-		-		26,150	
-		-		1,077,458		265,891		195,304		-		-		-		1,538,653	
-		-		-		-		-		9,866		572,208		401		582,475	
-		27,094		-		-		-		-		-		-		27,094	
	469,248 			- 			- 			- 			- 			- 			- 			- 			469,248 	
469,248		53,244		1,077,458		265,891		195,304		9,866		572,208		401		2,643,620	

 $ 144,469 

 $1,077,458 

$	-	
	- 	
	- 	

 $1,077,458 

 $265,891 

$	-	
	- 	
	- 	

 $265,891 

 $ 195,304 

$	-	
	- 	
	- 	

 $ 195,304 

 $	9,866 

$	-	
	- 	
	- 	

 $	9,866 

 $ 572,208 

$	-	
	- 	
	- 	

 $ 572,208 

 $	401 

$	-	
	- 	
	- 	

 $	401 

 $	2,789,944 

$	66,783	
	79,541 	
	146,324 	

 $	2,789,944 

See accompanying notes to financial statements.
- 12 -

South Village Community Development District	
RECONCILIATION OF TOTAL GOVERNMENTAL FUND BALANCES	
TO NET POSITION OF GOVERNMENTAL ACTIVITIES	
September 30, 2022	

Total Governmental Fund Balances

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

Capital assets being depreciated, infrastructure, $5,283,667, recreation	
facilities, $11,607,239, and equipment, $197,945, net of accumulated	
depreciation, $(8,222,101), used in governmental activities are not current	
financial resources and, therefore, are not reported at the fund level.	

$	2,643,620

Capital assets, not being depreciated, land, $649,569, and construction in progress,	
$5,438,450, used in governmental activities are not current financial resources	
and, therefore, are not reported at the fund level.	

6,088,019

8,866,750

Long-term liabilities, including bonds payable, $(23,915,000), net of bond discounts,	
net, $401,498, are not due and payable in the current period and therefore, are	
not reported at the fund level.	(23,513,502)	

Deferred outflows of resources are not current financial resources and therefore,	
are not reported at the fund level.	

Accrued interest expense for long-term debt is not a current financial use and;	
therefore, is not reported at the fund level.	

173,349

Net Position of Governmental Activities

	(419,001)

 $	(6,160,765)

See accompanying notes to financial statements.
- 13 -

-	
      - 	
   605,605 	

-	
       - 	
  1,286,441 	

910,000	
    667,447 	
   1,577,447 	

300,000	
   208,050 	
   508,050 	

680,000	
   202,517 	
   882,517 	

-	
       - 	
       - 	

-	
       - 	
       - 	

-	
       - 	
     7,558 	

1,890,000	
    1,078,014 	
   4,867,618 	

Excess of revenues over/(under)	
expenditures	

Other Financing Sources/(Uses)	
Transfers out	

South Village Community Development District	
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES –	
GOVERNMENTAL FUNDS	
For the Year Ended September 30, 2022	

Special	
Revenue -	
  Recreation 	

2016A-1/A-2	
Debt	
   Service		

2016A-3	
Debt	
  Service		

2019	
Debt	
  Service		

2016A-1/A2	
Capital	
	Projects 	

2016A-3	
Capital	
  Projects		

2019	
Capital	
  Projects		

Total	
Governmental	
   Funds		

  General 

Revenues:	
Special assessments	
Swim and tennis revenues	
Investment earnings	
Total Revenues	

 	
$ 703,676	
-	
	1,566 	
	705,242 	

 
$	953,018	
324,922	
	420 	
	1,278,360 	

 	
$ 1,481,858	
-	
     3,445 	
   1,485,303 	

	
$  435,622	
-	
     913 	
   436,535 	

	
$  720,548	
-	
     669 	
   721,217 	

	
$	-	
-	
	31 	
	31 	

	
$	-	
-	
	1,832 	
	1,832 	

	
$	-	
-	
	2 	
	2 	

	
$	4,294,722	
324,922	
	8,878 	
	4,628,522 	

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

163,214	
442,391	
-	
-	

-	
-	
1,286,441	
-	

-	
-	
-	
-	

-	
-	
-	
-	

-	
-	
-	
-	

-	
-	
-	
-	

-	
-	
-	
-	

-	
-	
-	
7,558	

163,214	
442,391	
1,286,441	
7,558	

		99,637 		(8,081)		(92,144)		(71,515)		(161,300)		31 		1,832 		(7,556)		(239,096)	
	
	- 	
	(426,929)	
	- 	
	- 	
	- 	
	- 	
	- 	
	- 	
	(426,929)	
Net Change in Fund Balances	99,637	(435,010)	(92,144)	(71,515)	(161,300)	31	1,832	(7,556)	(666,025)	
Fund Balances - October 1, 2021		369,611 		488,254 		1,169,602 		337,406 		356,604 		9,835 		570,376 		7,957 		3,309,645 	
Fund Balances - September 30, 2022	 $ 469,248 	 $	53,244 	 $ 1,077,458 	 $  265,891 	 $  195,304 	 $	9,866 	 $	572,208 	 $	401 	 $	2,643,620 	

See accompanying notes to financial statements.
- 14 -

South Village Community Development District	
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND	
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE	
STATEMENT OF ACTIVITIES	
For the Year Ended September 30, 2022	

Net Change in Fund Balances - Total Governmental Funds

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 allocated over their	
estimated useful lives as depreciation. This is the amount capital outlay, $7,558,	
was exceeded by depreciation, $(710,516), in the current period.	

Principal payments are reported as expenditures in the governmental funds,	
but are reported as reductions of liabilities in the Statement of Net Position.	

Deferred outflows of resources for refunding debt is recognized as a component	
of interest on long-term debt in the Statement of Activities, but not in the	
governmental funds. This is the amount of interest in the current year.	

Amortization of bond discount reported in the Statement of Activities does not require	
the use of current financial resources and therefore, is not reported as an	
expenditure in governmental funds.	

$	(666,025)

(702,958)

1,890,000

(13,776)

(31,906)

In the Statement of Activities, interest is accrued on outstanding bonds;		
whereas in governmental funds, interest expenditures are reported when		
due. This is the change in accrued interest during the current period.	33,669	

Change in Net Position of Governmental Activities	 $	509,004 

See accompanying notes to financial statements.

South Village Community Development District	
STATEMENT OF REVENUES, EXPENDITURES AND	
CHANGES IN FUND BALANCES – BUDGET AND ACTUAL –	
GENERAL FUND	
For the Year Ended September 30, 2022	

Original	Final	
Budget	Budget	Actual	

Variance with	
Final Budget	
Positive	
(Negative)	

Revenues	
Special assessments	
Investment earnings	
Total Revenues	

 	
$ 700,885	
	- 	
	700,885 	

	
$ 700,885	
	- 	
	700,885 	

	
$ 703,676	
	1,566 	
	705,242 	

	
$	2,791	
	1,566 	
	4,357 	

Expenditures	
Current	
General government	
Physical environment	
Capital outlay	
Total Expenditures	

193,316	
487,569	
   20,000 	
  700,885 	

193,316	
487,569	
   20,000 	
  700,885 	

163,214	
442,391	
       - 	
   605,605 	

30,102	
45,178	
     20,000 	
     95,280 	

	-  	369,611  	369,611 	
 $	-   $ 469,248   $	469,248 	

Net Change in Fund Balances		-	-	99,637	99,637 Fund Balances - October 1, 2021		- 
Fund Balances - September 30, 2022	 $	- 

South Village Community Development District	
STATEMENT OF REVENUES, EXPENDITURES AND	
CHANGES IN FUND BALANCES – BUDGET AND ACTUAL –	
SPECIAL REVENUE – RECREATION FUND	
For the Year Ended September 30, 2022	

Original	Final	
Budget	Budget	Actual	

Variance with	
Final Budget	
Positive	
(Negative)	

Revenues	
Special assessments	
Swim and tennis revenues	
Investment earnings	
Total Revenues	

 	
$	944,000	
129,865	
	- 	
	1,073,865 	

	
$ 944,000	
129,865	
	- 	
 1,073,865 	

	
$ 953,018	
324,922	
	420 	
 1,278,360 	

	
$	9,018	
195,057	
	420 	
	204,495 	

Expenditures	
Current	
Culture/recreation	

	1,052,493   1,052,493   1,286,441  	(233,948)

Excess of revenues over/(under)	
expenditures	

	21,372  	21,372  	(8,081)		(29,453)

Other Financing Sources/(Uses)	
Transfers out	

	-  	-  	(426,929)		(426,929)

	-  	488,254  	488,254 	
 $  21,372   $  53,244   $	31,872 	

Net Change in Fund Balances		21,372	21,372	(435,010)	(456,382) Fund Balances - October 1, 2021			- 
Fund Balances - September 30, 2022	 $	21,372 

South Village Community Development District	
STATEMENT OF FUND NET POSITION – ENTERPRISE FUND	
September 30, 2022	

ASSETS	
Current Assets	
Cash and equivalents	
Accounts receivable	
Due from other funds	
Prepaid expenses	
Inventories	
Deposits	
Total Current Assets	
Non-Current Assets	
Land	
Infrastructure	
Recreation facilities	
Equipment	
Leased equipment, net	
Less: Accumulated depreciation	
Total Non-Current Assets	
Total Assets	

$	939,162	
16,908	
79,541	
5,456	
103,822	
6,403	
1,151,292	

1,359,781	
407,040	
738,577	
219,973	
227,784	
(365,752)	
2,587,403	
3,738,695	

114,253	
75,447	
45,033	
61,061	
295,794	

NET POSITION	
Net investment in capital assets	
Unrestricted	

2,418,195	
855,498	

LIABILITIES	
Current Liabilities	
Accounts payable and accrued expenses	
Due to other funds	
Accrued compensated absences	
Unearned revenues	
Total Current Liabilities	
Non-Current Liabilities	
Leases payable	
Total Liabilities	

169,208	
465,002	

Total Net Position	$	3,273,693

South Village Community Development District	
STATEMENT OF REVENUES, EXPENSES AND CHANGES	
IN FUND NET POSITION – ENTERPRISE FUND	
For the Year Ended September 30, 2022	

Operating Revenues:	
Charges for services	
Miscellaneous revenues	
Special assessments	
Total Operating Revenues	

$ 3,719,633	
192,000	
    644,010 	
   4,555,643 	

Operating Expenses:	
Personal services	
Contractual and professional services	
Supplies and expenses	
Repairs and maintenance	
Utilities	
Rent and lease expense	
Depreciation/amortization	
Total Operating Expenses	

2,022,828	
248,425	
1,118,553	
580,860	
148,719	
31,011	
	184,567 	
4,334,963	

Operating Income/(Loss)		220,680 	
Transfers in		426,929 	
Change in Net Position	647,609	
Net Position - October 1, 2021		2,626,084 	
Net Position - September 30, 2022	 $ 3,273,693 	

South Village Community Development District	
STATEMENT OF CASH FLOWS – ENTERPRISE FUND	
For the Year Ended September 30, 2022	

CASH FLOWS FROM OPERATING ACTIVITIES	
Receipts from customers	
Receipts from other sources	
Payments to suppliers for goods and services	
Payments to employees for services	
Net Cash Used by Operating Activities	

$	3,740,420	
424,517	
(2,190,430)	
	(2,003,332)	
	(28,825)	

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES	
Operating transfers in	

426,929

CASH FLOWS FROM CAPITAL ACTIVITIES AND RELATED FINANCING	
Principal payments on capital lease	

(156,803)

Net increase in cash and cash equivalents		241,301 Cash and equivalents - October 1, 2021		697,861 

Cash and equivalents - September 30, 2022

RECONCILIATION OF OPERATING INCOME TO NET	
CASH PROVIDED BY OPERATING ACTIVITIES	
Operating income/(loss)	
Adjustments to reconcile operating income to net cash	
provided by operating activities:	
Depreciation/amortization expense	
Decrease in accounts receivable	
Decrease in prepaid expenses	
Increase in inventories	
Increase in due from other funds	
Increase in accounts payable and accrued expenses	
Increase in accrued compensated absences	
Decrease in due to other funds	
Increase in unearned revenues	

Net Cash Used by Operating Activities

$	939,162

$	220,680

184,567	
17,822	
2,833	
(6,128)	
(411,493)	
26,641	
19,496	
(86,208)	
2,965	

$	(28,825)

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

Reporting Entity

The District was established on April 28, 2003, pursuant the Uniform Community Development District Act of 1980, Chapter 190, Florida Statutes, as amended (the “Act”) by Ordinances Number 2003-36 as amended by ordinance number 2004-67 of the Clay County Board of County Commissioners, 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, bridges or culverts, district roads, landscaping, street lights and other basic infrastructure projects within or without the boundaries of the South Village Community Development District. The District is governed by a five-member Board of Supervisors who are elected by qualified electors of the District for four year terms. The District operates within the criteria established by Chapter 190, Florida Statutes.

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

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

Measurement Focus and Basis of Accounting

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

Government-wide financial statements

Fund financial statements

Notes to financial statements

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Measurement Focus and Basis of Accounting (Continued)

Government-wide Financial Statements

The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Government-wide financial statements report all non-fiduciary information about the reporting government as a whole. These statements include separate columns for the governmental and business- type activities of the primary government. For the most part, the effect of interfund activity has been removed from these statements.

Governmental activities, which normally are supported by special assessments and interest, are reported separately from business-type activities. Program revenues include charges for services and grants and contribution. Program revenues are netted with program expenses in the Statement of Activities to present the net cost of each program.

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

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

Fund Financial Statements

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

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

Governmental Funds

Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are considered to be available when they are collected within the current period or soon thereafter to pay liabilities of the current period. For this purpose, the District considers revenues to be available if they are collected within 60 days of the end of the current fiscal period.

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
2.  Measurement Focus and Basis of Accounting (Continued)
b. Fund Financial Statements (Continued) Governmental Funds (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.
Under the current financial resources measurement focus, only current assets and current liabilities are generally included on the balance sheet. The reported fund balance is considered to be a measure of “available spendable resources”. Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net position. Accordingly, they are said to present a summary of sources and uses of “available spendable resources” during a period.
Because of their spending measurement focus, expenditure recognition for governmental fund types excludes amounts represented by non-current liabilities. Since they do not affect net current assets, such long-term amounts are not recognized as governmental fund type expenditures or fund liabilities.
Amounts expended to acquire capital assets are recorded as expenditures in the year that resources are expended, rather than as fund assets. The proceeds of long-term debt are recorded as other financing source rather than as a fund liability.
Debt service expenditures are recorded only when payment is due.
The District classifies fund balance according to Governmental Accounting Standards Board Statement 54 – Fund Balance Reporting and Governmental Fund Type Definitions. The Statement requires the fund balance for governmental funds to be reported in classifications that comprise a hierarchy based primarily on the extent to which the government is bound to honor constraints on the specific purposes for which amounts in those funds can be spent.
The District has various policies governing the fund balance classifications.
Nonspendable Fund Balance – This classification consists of amounts that cannot be spent because they are either not in spendable form or are legally or contractually required to be maintained intact.
Restricted Fund Balance – This classification includes amounts that can be spent only for specific purposes stipulated by constitution, external resource providers, or through enabling legislation.
Committed Fund Balance – This classification includes amounts for specific purposes adopted by the Board with a resolution or contractual obligations which require a formal approval from the Board and the funding has been set aside for the purpose. This type of fund balance can only be removed by the Board through the same approval process.

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Measurement Focus and Basis of Accounting (Continued)

b. Fund Financial Statements (Continued) Governmental Funds (Continued)
Assigned Fund Balance – This classification consists of the Board of Supervisors’ intent to be used for specific purposes but are neither restricted nor committed. The assigned fund balances can also be assigned by the District’s management company.

Unassigned Fund Balance – This classification is the residual classification for the government’s general fund and includes all spendable amounts not contained in the other classifications. Unassigned fund balance is considered to be utilized first when an expenditure is incurred for purposes for which amounts in any of those unrestricted fund balance classifications could be used.

Fund Balance Spending Hierarchy – For all governmental funds except special revenue funds, when restricted, committed, assigned, and unassigned fund balances are combined in a fund, qualified expenditures are paid first from restricted or committed fund balance, as appropriate, then assigned and finally unassigned fund balances.

Enterprise Funds

In the fund financial statements, the enterprise fund is presented using the accrual basis of accounting. Revenues are recognized when they are earned and expenses are recognized when the related goods or services are delivered. In the fund financial statements, enterprise funds are presented using the economic resources measurement focus. This means that all assets and all liabilities (whether current or non-current) associated with their activity are included on their balance sheets. Enterprise fund operating statements present increases (revenues) and decreases (expenses) in total net position. The District applies all GASB pronouncements as well as FASB Statements and Interpretations, APB Opinions and Accounting Research Bulletins, issued on or before November 30, 1989, which do not conflict with, or contradict, GASB pronouncements.

Basis of Presentation
Governmental Major Funds
General Fund – The General Fund is the District’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund.
Special Revenue – Recreation Fund – The Recreation Fund is a special revenue fund established to account for the financial resources of the District’s recreation areas.

Basis of Presentation (Continued)
Governmental Major Funds (Continued)
2016A-1/A-2 Debt Service Fund – The 2016A-1/A-2 Debt Service Fund accounts for debt service requirements to retire the capital improvement revenue and refunding bonds, Series 2016A-1 and Series 2016A-2.

2016A-3 Debt Service Fund – The 2016A-3 Debt Service Fund accounts for debt service requirements to retire the capital improvement revenue and refunding bonds, Series 2016A-3.

2019 Debt Service Fund – The 2019 Debt Service Fund accounts for debt service requirements to retire the capital improvement revenue, Series 2019A and 2019B.

2016A-1/A-2 Capital Projects Fund – The Capital Projects Fund accounts for the proceeds from Long-Term debt issued in 2016 through Series 2016 A-1 and A-2 Capital Improvement Revenue and Refunding Bonds for the acquisition or construction of major infrastructure within the District.

2016A-3 Capital Projects Fund – The Capital Projects Fund accounts for the proceeds from Long-Term debt issued in 2016 through Series 2016 A-3 Capital Improvement Revenue and Refunding Bonds for the acquisition or construction of major infrastructure within the District.

2019 Capital Projects Fund – The Capital Projects Fund accounts for the proceeds from long-term debt issued in 2019 for the acquisition or construction of major infrastructure within the District.

Enterprise Major Fund

Enterprise Fund – The Enterprise Fund accounts for the operations of the Golf Course, Pro Shop, Restaurant, and Capital Reserve, which are funded by proceeds from operations of these facilities, including green fees, cart fees and member dues in the form of annual special assessments. The Capital Reserve portion accounts for the funds set aside to ensure the District has adequate funding for ongoing and future projects.

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 general obligation bonds, be reported in the governmental activities column in the government-wide Statement of Net Position.

Assets, Liabilities, Deferred Outflows of Resources, and Net Position or Equity

Cash and Investments

Florida Statutes require state and local governmental units to deposit monies with financial institutions classified as "Qualified Public Depositories," a multiple financial institution pool whereby groups of securities pledged by the various financial institutions provide common collateral from their deposits of public funds. This pool is provided as additional insurance to the federal depository insurance and allows for additional assessments against the member institutions, providing full insurance for public deposits.
The District is authorized to invest in those financial instruments as established by Section 218.415, Florida Statutes. The authorized investments consist of:
Direct obligations of the United States Treasury;
The Local Government Surplus Funds Trust or any intergovernmental investment pool authorized pursuant to the Florida Interlocal Cooperative Act of 1969;
Interest-bearing time deposits or savings accounts in authorized qualified public depositories;
Securities and Exchange Commission, registered money market funds with the highest credit quality rating from a nationally recognized rating agency.
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.
Receivables and Payables

Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as "due to/from other funds". Any residual balances outstanding between the governmental activities and business- type activities are reported as "internal balances".

Inventories

Inventories are recorded at cost using the first in-first out basis and recognized as expenses as they are consumed.

Restricted Assets
Certain assets of the District and a corresponding liability or portion of net position is classified as restricted assets on the statement of net position because their use is limited either by law through constitutional provisions or enabling legislation; or by restrictions imposed externally by creditors. In a fund with both restricted and unrestricted assets, qualified expenses are considered to be paid first from restricted net position and then from unrestricted net position.

4. Assets, Liabilities, Deferred Outflows of Resources, and Net Position or Equity (Continued)

Capital Assets
Capital assets, which include land, construction in progress, infrastructure, recreation facilities, and equipment, are reported in governmental activities.
The District defines capital assets as assets with an initial, individual cost of $5,000 or more and an estimated useful life in excess of two years. The valuation basis for all assets is historical cost.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend its useful life are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed.
Depreciation of capital assets is computed and recorded by utilizing the straight-line method. Estimated useful lives of the various classes of depreciable capital assets are as follows:

Infrastructure and recreation facilities 30 years Equipment	10 years

Budgets

Budgets are prepared and adopted after public hearings for the governmental funds, pursuant to Chapter 190, Florida Statutes. The District utilizes the same basis of accounting for budgets as it does for revenues and expenditures in its various funds. Formal budgets are adopted for the general fund. The legal level of budgetary control is at the fund level. As a result, deficits in the budget columns of the accompanying financial statements may occur. All budgeted appropriations lapse at year end.

Deferred Outflows of Resources

Deferred outflows of resources represent a consumption of net position that applies to future periods. The District reported a deferred amount on refunding on the Statement of Net Position. A deferred amount on refunding results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt.

Unamortized Bond Discount

Bond discounts are presented on the government-wide financial statements. The costs are amortized over the life of the bonds. For financial reporting, the unamortized bond discount is netted against the applicable long-term debt.

4. Assets, Liabilities, Deferred Outflows of Resources, and Net Position or Equity (Continued)

Leases

The District determines if an arrangement is a lease at inception. Lessee arrangements are included as right-to-use lease assets and lease liabilities in the financial statements of the District;. Payments for short-term leases with a lease term of 12 months or less are recognized as expenses as incurred. The District has a $25,000 threshold, for total lease payments, for leases subject to GASB 87. Short-term leases and leases under the threshold are not included as lease liabilities or right-to-use lease assets on the Statement of Net Position in the financial statements of the District.

Governmental Accounting Standards Board Statement No. 87

The District implemented GASB Statement No. 87, Leases, which changes the accounting and financial reporting for leases. Under previous guidance, leases were classified as either capital or operating depending on whether the lease met any of four tests. GASB Statement No. 87 defines a lease as a contract that conveys the right to use another entity’s nonfinancial asset as specified in the contract for a period of time in an exchange or exchange-like transaction. Under GASB Statement No. 87, leases other than short-term leases, defined as having a maximum possible term of 12 months or less, are required to be recognized on the Statement of Net Position in the financial statements of the District. A lessee should recognize a lease liability and an intangible right-to-use leased asset, while a lessor should recognize a lease receivable and a deferred inflow of resources.

For the one year look back at implementation, October 1, 2020, the District, as lessee, recognized a lease liability of $476,277 along with corresponding right-to-use leased assets of
$476,277.

Additional information regarding leases is present in subsequent notes.

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

Explanation of Differences Between the Governmental Fund Balance Sheet and the Government-wide Statement of Net Position

“Total fund balances” of the District’s governmental funds, $2,643,620, differs from “net position” of governmental activities, $(6,160,765), reported in the Statement of Net Position. This difference primarily results from the long-term economic focus of the Statement of Net Position versus the current financial resources focus of the Governmental Fund Balance Sheet. The effect of the differences is illustrated as follows:

Capital related items
When capital assets (that are to be used in governmental activities) are purchased or constructed, the cost of those assets is reported as expenditures in governmental funds. However, the Statement of Net Position included those capital assets among the assets of the District as a whole.

Construction in progress	$	5,438,450	
Land	649,569	
Infrastructure	5,283,667	
Recreation facilities	11,607,239	
Equipment	197,945	
Accumulated depreciation		(8,222,101)	
Total	$	14,954,769 	
Long-term debt transactions
Long-term liabilities applicable to the	

District’s governmental activities are not due and	
payable in the current period and accordingly are not reported as fund liabilities. All liabilities (both current and long-term) are reported in the Statement of Net Position. Balances at September 30, 2022 were:

Bonds payable	$	(23,915,000)	
Bond discount, net		401,498	
Total	$	(23,513,502)	
Deferred outflows of resources

Deferred outflows of resources applicable	

to the District's governmental activities are not	
financial resources and therefore, are not reported as fund deferred outflows of resources. Deferred amount on refunding, net	$	173,349

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

Explanation of Differences Between the Governmental Fund Balance Sheet and the Government-wide Statement of Net Position (Continued)

Accrued interest

Accrued liabilities in the Statement of Net Position differ from the amount reported in governmental funds due to the accrued interest on bonds.

Accrued interest	$	(419,001)
Explanation of Differences Between the Governmental Fund Operating Statements and the Statement of Activities

The “net change in fund balances” for government funds, $(666,025), differs from the “change in net position” for governmental activities, $509,004, 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. As a result, fund balances decrease by the amount of financial resources expended, whereas net position decrease by the amount of depreciation charged for the year.

Capital outlay	$	7,558	
Depreciation		(710,516)	
Net Change	$	(702,958)	
Long-term debt transactions
Repayments of bond principal are reported as an expenditure in	

the governmental funds	
and, thus, have the effect of reducing fund balance because current financial resources have been used.

Bond principal payments	$	1,890,000	
Amortization of bond discount		(31,906)	
Total	$	1,858,094 	

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

2. Explanation of Differences Between the Governmental Fund Operating Statements and the Statement of Activities (Continued)

Long-term debt transactions (Continued)

Some expenses reported in the Statement of Activities do not require the use of current financial resources, therefore, are not reported as expenditures in governmental funds.

Net change in accrued interest payable	$	33,669	
Decrease in deferred amount on refunding		(13,776)	
Total	$	19,893 	
NOTE C – CASH AND INVESTMENTS		
All deposits are held in qualified public depositories and balance sheet as cash and investments.	are included on the accompanying	
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, 2022, the District's bank balance was $1,070,272 and the carrying value was $1,102,359. 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

As of September 30, 2022, the District had the following investments and maturities:

Investment	Maturities	Fair Value
First American Government
Obligation Fund	18 days *	$ 2,121,128	
Florida PRIME	21 days *		401,125 	
Total		 $ 2,522,253 	
* Weighted Average Maturity

Investments (Continued)

The District categorizes its fair value measurements within the fair value hierarchy recently established by generally accepted accounting principles. The fair value is the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. The District uses a market approach in measuring fair value that uses prices and other relevant information generated by market transactions involving identical or similar assets, liabilities, or groups of assets and liabilities.

Assets or liabilities are classified into one of three levels. Level 1 is the most reliable and is based on quoted price for identical assets, or liabilities, in an active market. Level 2 uses significant other observable inputs when obtaining quoted prices for identical or similar assets, or liabilities, in markets that are not active. Level 3 is the least reliable and uses significant unobservable inputs that uses the best information available under the circumstances, which includes the District’s own data in measuring unobservable inputs.

Based on the criteria in the preceding paragraph, the investment in First American Government Obligation Fund is a Level 1 asset.

Investments

The District’s investment policy allows management to invest funds in investments permitted under Section 218.415, Florida Statutes. The investment in Florida PRIME is measured at amortized cost. Florida PRIME has established policies and guidelines regarding participant transactions and the authority to limit or restrict withdrawals or impose a penalty for an early withdrawal. As of September 30, 2022, there were no redemption fees, maximum transaction amounts, or any other requirements that would limit daily access to 100 percent of the account value.

Interest Rate Risk

The District does not have a formal investment policy that limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates.

Credit Risk

The District's investments are limited by state statutory requirements and bond compliance. The District has no investment policy that would further limit its investment choices. As of September 30, 2022, the District's investments in the First American Government Obligation Fund and Florida PRIME were rated AAAm by Standard & Poor's.

Concentration of Credit Risk

The District places no limit on the amount it may invest in any one issuer. The investment in First American Government Obligation Fund represents 84% of the District's total investments and investment in Florida PRIME represents 16% of the District's total investments.

The types of deposits and investments and their level of risk exposure as of September 30, 2022 were typical of these items during the fiscal year then ended. The District considers any decline in fair value to be temporary.

NOTE D – CAPITAL ASSETS
Capital Asset activity for the year ended September 30, 2022 was as follows:

Governmental Activities:
Capital assets, not being depreciated

Balance	Balance
10/1/2021	Additions	Deletions	9/30/2022

Land	$	649,569		$	-		$	-	$	649,569	
Construction in progress	5,430,892		7,558		-	5,438,450	
Total Capital Assets, Not Depreciated	6,080,461		7,558		 
-	6,088,019	
Capital assets, being depreciated:					 	
Infrastructure	5,283,667	-	-	5,283,667	
Recreation facilities	11,607,239	-	-	11,607,239	
Equipment	197,945	-	-	197,945	

Total Capital Assets, Being Depreciated	17,088,851	  
-	-	17,088,851	

Less accumulated depreciation for:	  	
Infrastructure	(2,103,718)	(243,719)	-	(2,347,437)	
Recreation facilities	(5,220,368)	(432,143)	-	(5,652,511)	
Equipment	(187,499)	(34,654)	-	(222,153)	

Total Accumulated Depreciation	(7,511,585)	  
(710,516)	-	(8,222,101)	

Total Capital Assets Depreciated, Net	9,577,266	  
(710,516)	-	8,866,750	

Governmental Activities Capital Assets, Net	$ 15,657,727	  
$ (702,958)	$	-	$ 14,954,769	

The infrastructure intended to serve the District has	
been estimated at a total cost of	
approximately $49 million.	The infrastructure includes roadways, stormwater management	
system, water and sewer facilities, recreational facilities, and other related infrastructure. A portion of the project costs were financed with the proceeds from the Series 2005A Bonds while the remainder will be funded by additional bonds and the Developer. In a prior fiscal year, certain improvements were conveyed to other entities for ownership and maintenance responsibilities.

Depreciation was charged to physical environment, $278,373, and culture/recreation, $432,143.

NOTE D – CAPITAL ASSETS (CONTINUED)
The following is a summary of changes in the Business-type Activities capital assets for the year ended September 30, 2022.
	Balance						Balance	
	10/1/2021		Additions		Deletions		9/30/2022	
Capital assets, not being depreciated:								
Land	$ 1,359,781		$	-		$	-		$ 1,359,781	
Construction in progress	2,040		-		(2,040)		-	
Total Capital Assets, Not Depreciated	1,361,821		-		(2,040)		1,359,781	

Capital assets, being depreciated:								
Infrastructure	405,000		2,040		-		407,040	
Recreation facilities	738,577		-		-		738,577	
Equipment	219,973		-		-		219,973	
Total Capital Assets, Being Depreciated	1,363,550		2,040		-		1,365,590	

Less accumulated depreciation for:								
Infrastructure	(70,875)		(13,704)		-		(84,579)	
Recreation facilities	(124,960)		(24,619)		-		(149,579)	
Equipment	(109,596)		(21,998)		-		(131,594)	
Total accumulated depreciation	(305,431)		(60,321)		-		(365,752)	
Total capital assets depreciated, net	1,058,119		(58,281)		-		999,838	

Business-Type Activities Capital Assets	
$ 2,419,940		
$	(58,281)		
$ (2,040)		
$ 2,359,619	
Depreciation was charged to the golf course and restaurant, $60,321.
NOTE E – INTERFUND ACTIVITY
Interfund balances at September 30, 2022, consisted of the following:

Payable Fund
	Governmental	Business-type		
	Activities	Activities		

Receivable Fund		Special Revenue Recreation	

Enterprise Fund		
Total	
Governmental Activities:						
General Fund		$	-	$	43,957		$	43,957	
Special Revenue Recreation			-	31,490		31,490	
Business-type Activities:						
Enterprise Fund (Golf Course)	79,541		-		79,541	
Total	$	79,541		$	75,447		$	154,988	

Interfund balances are due to receipts and disbursements collected and paid by one fund on behalf of another fund and were not repaid as of year-end.

NOTE E – INTERFUND ACTIVITY (CONTINUED)

Interfund transfers for the year ended September 30, 2022, consisted of the following:

Transfers Out Governmental Activities
Transfers In	Special Revenue
Business-type Activities

Enterprise Fund	$	426,929

Transfers from the Special Revenue Fund to the Enterprise Fund are related to prior year overpayments in the Enterprise Fund on behalf of the Special Revenue Fund.

NOTE F – LONG-TERM DEBT

The following is a summary of debt activity for the District for the year ended September 30, 2022.
October 1,	September 30,
2021	Additions	Deletions	2022
Capital Improvement Revenue
and Refunding Bonds		
Series 2016A-1	$ 13,640,000		$	-		$	645,000		$ 12,995,000	
Capital Improvement Revenue								
and Refunding Bonds								
Series 2016A-2	4,440,000		-		265,000		4,175,000	
Capital Improvement Revenue								
and Refunding Bonds								
Series 2016A-3	3,895,000		-		300,000		3,595,000	
Capital Improvement Revenue								
Bonds Series 2019A	3,160,000		-		50,000		3,110,000	
Capital Improvement Revenue								
Bonds Series 2019B	670,000		-	630,000		40,000	
Bonds Payable	$ 25,805,000		$	-	$  1,890,000		$ 23,915,000	

Long-term debt is comprised of the following:

Capital Improvement Revenue Bonds

$17,075,000 Series 2016A-1 Capital Improvement Revenue and Refunding Bonds due in annual principal installments beginning May 2017. Interest at various rates between 2.00% and 3.75% is due May and November beginning November 2017.  Current portion is
$635,000.	$  12,995,000

$5,480,000 Series 2016A-2 Capital Improvement Revenue and Refunding Bonds due in annual principal installments beginning May 2017. Interest at various rates between 4.35% and 5.00% is due May and November beginning November 2017.  Current portion is
$195,000.	4,175,000

$5,530,000 Series 2016A-3 Capital Improvement Revenue and Refunding Bonds due in annual principal installments beginning May 2017. Interest at various rates between 5.50% and 6.00% is due May and November beginning November 2017.  Current portion is
$80,000.	3,595,000

$3,255,000 Series 2019A Capital Improvement Revenue Bonds due in annual principal installments beginning May 2020. Interest at various rates between 4.75% and 5.60% is due May and November
beginning May 2019. Current portion is $55,000.	3,110,000

$1,700,000 Series 2019B Capital Improvement Revenue Bonds due in one balloon principal payment in May 2028. Interest at a fixed rate
of 5.60% is due May and November beginning May 2019.		40,000

Bonds payable	23,915,000
Bonds discount, net		(401,498)
Bonds Payable, net	$	23,513,502 

The annual requirements to amortize the principal and interest of bonded debt outstanding as of September 30, 2022 are as follows:

Year Ending
	September 30, 		Principal			Interest			Total		
2023	$	965,000	$	1,005,603	$	1,970,603	
2024	985,000	975,026	1,960,026	
2025	1,020,000	943,064	1,963,064	
2026	1,050,000	908,117	1,958,117	
2027	1,090,000	870,415	1,960,415	
2028-2032	6,240,000	3,643,851	9,883,851	
2033-2037	7,465,000	2,228,458	9,693,458	
2038-2042	2,905,000	896,031	3,801,031	
2043-2047	1,775,000	384,090	2,159,090	
2048-2049		420,000 		35,560 		455,560 	
Totals	 $  23,915,000 	 $	11,890,215 	 $  35,805,215 	

Summary of Significant Bonds Resolution Terms and Covenants

Depository Funds – The bond resolution establishes certain funds and determines the order in which revenues are to be deposited into these funds. A description of the significant funds, including their purposes, is as follows:

Reserve Fund – The Series 2016A-1 and 2016A-2 Capital Improvement Revenue and Refunding Bonds Reserve Accounts are funded from the proceeds of the Bonds in an amount equal to fifty percent of the Maximum Annual Debt Service Requirement for the respective bond. The Series 2016A-3 Capital Improvement Revenue and Refunding Bonds is funded from the proceeds of the Bonds in an amount equal to thirty-five percent of the Maximum Annual Debt Service Requirement for the Series 2016A-3 Bonds. The Series 2019A Capital Improvement Revenue Bonds is funded from the proceeds of the Bonds in an amount equal to twenty-five percent of the Maximum Annual Debt Service Requirement for the Series 2019A Bonds. Monies held in the reserve accounts will be used only for the purposes established in the Trust Indenture.

Reserve
	Balance	

Reserve
 Requirement 

Series 2016A-1 Capital Improvement Revenue and Refunding Bond	$	536,407	$	526,872	
Series 2016A-2 Capital Improvement Revenue and Refunding Bond	$	198,463	$	200,062	
Series 2016A-3 Capital Improvement Revenue and Refunding Bond	$	136,855	$	95,130	
Series 2019A Capital Improvement Revenue and Refunding Bond	$	56,791	$	55,930	

South Village Community Development District NOTES TO FINANCIAL STATEMENTS
September 30, 2022

NOTE G – LEASE LIABILITIES

The District leases golf carts and equipment under various lease agreements. The lease terms range from 36 to 60 months. The expected payments are discounted using an imputed interest rate of 5 percent. The future minimum payments under these lease agreements and the present value of the minimum payments as of September 30, 2022, are as follows:

Lease Obligation/Liability:

Year Ending
	September 30, 		Principal			Interest			Total	

2023	$	118,626	$	5,538	$	124,164	
2024		50,582 		1,060 		51,642 	
Total	 $	169,208 	 $	6,598 	 $	175,806 	

Lease Assets		$ 352,030		$	-		$	-	$ 352,030	
Less, Accumulated Amortization		-		124,246		-	124,246	
Total Lease Assets, Net		$ 352,030		$ (124,246)		$	-	$ 227,784	

Future Use of Lease Amortization: Description

Beginning
Balance	Additions	Deletions

Ending Balance

 

NOTE H – SPECIAL ASSESSMENT REVENUES
Assessments are non-ad valorem assessments on benefitted property within the District. Operating and Maintenance Assessments are based upon adopted budget and levied annually at a public hearing of the District. Debt Service Assessments are levied when bonds are issued and collected annually. The District may collect assessments directly or utilize the uniform method of collection (Chapter 197.3632, Florida Statutes). Direct collected assessments are due as determined by annual assessment resolution adopted by the Board of Supervisors. Assessments collected under the uniform method 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.

Assessments and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received by the government.

South Village Community Development District NOTES TO FINANCIAL STATEMENTS
September 30, 2022 NOTE I – INTERLOCAL AGREEMENTS
In January 2004, the District entered into a cost sharing agreement with Middle Village
Community Development District (“Middle Village”) for the maintenance of certain landscape improvements for which both Districts benefit. In accordance with the interlocal agreement, Middle Village will perform the required maintenance and the District will provide 31% of the costs incurred to perform the maintenance. For the fiscal year ended September 30, 2022, the costs related to the maintenance incurred by Middle Village was approximately $105,681, of which $32,761 was reimbursed to Middle Village by the District in connection with the agreement.

NOTE J – DEVELOPER AGREEMENTS

The Developer owns a portion of the land within the District; therefore, assessment revenues in the General, Recreation, and Debt Service Funds include assessments levied on the Developer owned property.

NOTE K – MANAGEMENT AGREEMENTS

The District has contracted with a management company to perform management services, which include financial and accounting services. Certain employees of the management company also serve as officers of the District.

The District has also contracted with an additional management company to perform management services, including managing, operating, maintaining, and supervising the recreation facilities and golf course of the District. Under these agreements, the District compensates the management company for management, accounting, financial reporting, computer and other administrative costs.

NOTE L – ECONOMIC DEPENDENCY

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

NOTE M – 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. Settled claims from these risks have not exceeded commercial insurance coverage over the past three years.

NOTE N – SUBSEQUENT EVENTS

Subsequent to year end, the District made prepayments totaling $5,000, $25,000, $40,000, and
$40,000 on the Series 2016 A-1, A-2, and Series 2019A, 2019B Capital Improvement Revenue and Refunding Bonds, respectively. The prepayment of $40,000 on the Series 2019B Capital Improvement Revenue Bonds fully redeemed the Bonds.

South Village Community Development District NOTES TO FINANCIAL STATEMENTS
September 30, 2022

NOTE O – RESTATEMENT OF NET POSITION

Net position for Business-type Activities and the Enterprise Fund were restated as a result of the implementation of GASB Statement No. 87, Leases, which changes the accounting and financial reporting for leases.

Business-type Activities/Enterprise Fund

Net Position, October 1, 2021, as previously reported	$ 2,600,065 GASB 87, leases	 	26,019
Net Position, October 1, 2021, Restated	$  2,626,084

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

To the Board of Supervisors
South Village Community Development District Clay 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, as listed in the table of contents, of South Village Community Development District, as of and for the year ended September 30, 2022, and the related notes to the financial statements, which collectively comprise the basic financial statements and have issued our report thereon dated June 26, 2023.

Report on Internal Control Over Financial Reporting

In planning and performing our audit, we considered South Village Community Development District's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of South Village Community Development District’s internal control. Accordingly, we do not express an opinion on the effectiveness of South Village Community Development District's internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that have not been identified.

- 41 -

To the Board of Supervisors
South Village Community Development District

Report on Compliance and Other Matters

As part of obtaining reasonable assurance about whether South Village Community Development District's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of this Report

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

Berger, Toombs, Elam, Gaines & Frank Certified Public Accountants PL
Fort Pierce, Florida June 26, 2023

- 42 -

MANAGEMENT LETTER

To the Board of Supervisors
South Village Community Development District Clay County, Florida

Report on the Financial Statements

We have audited the financial statements of the South Village Community Development District as of and for the year ended September 30, 2022, and have issued our report thereon dated June 26, 2023.

Auditor’s Responsibility

We conducted our audit in accordance with auditing standards generally accepted in the United States; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States and Chapter 10.550, Rules of the Florida Auditor General.

Other Reporting Requirements

We have issued our Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards and our Independent Auditor’s Report on an examination conducted in accordance with AICPA Professionals Standards, AT-C Section 315, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports, which are dated June 26, 2023, should be considered in conjunction with this management letter.

Prior Audit Findings

Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding financial audit report. The following findings or recommendations were made in the preceding financial audit report.

Finding 21 – 01

Finding: The actual expenditures of the General and Special Revenue Funds exceeded the approved budgeted amounts in violation of Section 189.016, Florida Statutes.

Recommendation: The District should monitor expenditures in future years to ensure that actual expenditures do not exceed the budget.

Management Response: Expenditures will be monitored in future years to ensure budget compliance.

Current Status: The Special Revenue Fund expenditures exceeded the budget in the current year.
- 43 -

To the Board of Supervisors
South Village Community Development District

Financial Condition and Management

Section 10.554(1)(i)5.a. and 10.556(7), Rules of the Auditor General, require us to apply appropriate procedures and communicate the results of our determination as to whether or not South Village Community Development District has met one or more of the conditions described in Section 218.503(1), Florida Statutes, and to identify the specific conditions met. In connection with our audit, we determined that South Village Community Development District did not meet any of the conditions described in Section 218.503(1) Florida Statutes.

Pursuant to Sections 10.554(1)(i)5.c. and 10.556(8), Rules of the Auditor General, we applied financial condition assessment procedures for South Village Community Development District. It is management’s responsibility to monitor the South Village Community Development District’s financial condition; our financial condition assessment was based in part on the representations made by management and the review of the financial information provided by the same as of September 30, 2022.

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

Specific Information

The information provided below was provided by management and has not been audited; therefore, we do not express an opinion or provide any assurance on the information.
As required by Section 218.39(3)(c), Florida Statutes, and Section 10.554(1)(i)6, Rules of the Auditor General, the South Village Community Development District reported:
The total number of district employees compensated in the last pay period of the District’s fiscal year: 0
The total number of independent contractors to whom nonemployee compensation was paid in the last month of the District’s fiscal year: 0
All compensation earned by or awarded to employees, whether paid or accrued, regardless of contingency: $0
All compensation earned by or awarded to nonemployee independent contractors, whether paid or accrued, regardless of contingency: $0
Each construction project with a total cost of at least $65,000 approved by the District that is scheduled to begin on or after October 1, 2021, together with the total expenditures for such project: The District had no construction projects that started after October 1, 2020.
A budget variance based on the budget adopted under Section 189.016(4), Florida Statutes, before the beginning of the fiscal year being reported if the District amends a final adopted budget under Section 189.016(6), Florida Statutes: The budget was not amended.

- 44 -

To the Board of Supervisors
South Village Community Development District

As required by Section 218.39(3)(c), Florida Statutes, and Section 10.554(1)(i)8, Rules of the Auditor General, the South Village Community Development District reported:
The rate or rates of non-ad valorem special assessments imposed by the District: The General Fund, $1,175 and the Debt Service Fund, $146.87 - $1,470.05.
The amount of special assessments collected by or on behalf of the District: Total special assessments collected was $4,294,722.
The total amount of outstanding bonds issued by the District and the terms of such bonds: Series 2016 Bonds, $20,765,000 maturing May 2046, Series 2019 Bonds,
$3,150,000 maturing May 2049.

Additional Matters

Section 10.554(1)(i)3., Rules of the Auditor General, requires us to communicate noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but warrants the attention of those charged with governance. In connection with our audit, we did not note any findings.

Purpose of this Letter

Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, the Board of Supervisors, and applicable management, and is not intended to be and should not be used by anyone other than these specified parties.

Berger, Toombs, Elam, Gaines & Frank Certified Public Accountants PL
Fort Pierce, Florida June 26, 2023

- 45 -

INDEPENDENT ACCOUNTANTS’ REPORT/COMPLIANCE WITH SECTION 218.415, FLORIDA STATUTES

To the Board of Supervisors
South Village Community Development District Clay County, Florida

We have examined South Village Community Development District's compliance with Section 218.415, Florida Statutes during the year ended September 30, 2022. Management is responsible for South Village Community Development District’s compliance with those requirements. Our responsibility is to express an opinion on South Village Community Development District’s compliance based on our examination.

Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about South Village Community Development District’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on South Village Community Development District’s compliance with the specified requirements.

In our opinion, South Village Community Development District complied, in all material respects, with the aforementioned requirements during the year ended September 30, 2022.

Berger, Toombs, Elam, Gaines & Frank Certified Public Accountants PL
Fort Pierce, Florida June 26, 2023

- 46 -