South Village Community Development District ANNUAL FINANCIAL REPORT September 30, 2024 South VillageCommunity Development District ANNUAL FINANCIAL REPORT September 30, 2024 TABLE OF CONTENTS PageNumber REPORT OF INDEPENDENTAUDITORS1-3 MANAGEMENT’S DISCUSSION AND ANALYSIS4-9 BASIC FINANCIAL STATEMENTS Government-wide Financial StatementsStatement ofNetPosition10Statement of Activities11 Fund Financial StatementsBalance Sheet–Governmental Funds12Reconciliation of Total Governmental FundBalances to NetPositionof GovernmentalActivities13Statement of Revenues,Expendituresand Changes inFund Balances–Governmental Funds14 Reconciliation of the Statement of Revenues, Expendituresand Changesin Fund Balances of GovernmentalFundsto the Statement of Activities15 Statement of Revenues,Expenditures and Changes in FundBalances–Budgetand Actual–General Fund16Statement of Revenues,Expenditures and Changes in Fund Balances–Budgetand Actual–Special Revenue –Recreation Fund17Statement of Fund Net Position –Enterprise Fund18Statement of Revenues,Expenses and Changes in Fund Net Position –Enterprise Fund19Statement of Cash Flows–Enterprise Fund20 Notesto Financial Statements21-38 INDEPENDENT AUDITORS’REPORT ON INTERNALCONTROL OVER FINANCIAL REPORTING ANDON COMPLIANCE AND OTHER MATTERSBASEDON AN AUDITOF FINANCIAL STATEMENTSPERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS39-40 MANAGEMENT LETTER41-43 INDEPENDENT ACCOUNTANTS’REPORT/COMPLIANCEWITHSECTION 218.415,FLORIDA STATUTES44 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 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, 2024, 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 accompanying financial statements present fairly, in all material respects, the respective financial position of the governmental activities, business-type activities, and each major fund of South Village Community Development District as of September 30, 2024, and the respective changes in financial position and the budgetary comparison for the General Fund and Special Revenue Fund for the year then ended in accordance 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 (Government Auditing Standards). 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. 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 would influence the judgment made by a reasonable user based on the 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. 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 20, 2025 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 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 South Village Community Development District’s internal control over financial reporting and compliance. Berger, Toombs, Elam, Gaines & Frank Certified Public Accountants PL Fort Pierce, Florida June 20, 2025 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. South Village Community Development DistrictMANAGEMENT’SDISCUSSION AND ANALYSISFor the YearEndedSeptember 30, 2024 OVERVIEWOFTHE FINANCIAL STATEMENTS (CONTINUED) Fund financial statementsinclude a balance sheetand astatement of revenues, expendituresandchanges infundbalancesfor allgovernmentalfunds.Astatement ofrevenues,expenditures,and changesinfundbalances –budgetandactualisprovided forthe District’s General Fundand Special Revenue Fund. Forthe enterprise fund, a statement offund net position, a statement ofrevenues, expenses, and changesin fund net position; and astatement of cash flows arepresented.Fundfinancial statementsprovidemoredetailed information about the District’s activities. Individual funds are established by the Districtto track revenuesthat are restricted to certain usesor tocomply with legal requirements. The government-wide financialstatementsand the fund financialstatementsprovide differentpictures ofthe District.The government-wide financial statementsprovide an overall picture ofthe District’s financialstanding, split between Governmental Activities and Business-type Activities. These statements are comparable to private-sectorcompanies and give a goodunderstandingoftheDistrict’soverallfinancialhealth andhowthe Districtpaidforthevariousactivities,orfunctions,provided bytheDistrict.Allassetsofthe District,including capitalassetsare reportedin thestatement of netposition.All liabilities, includingprincipal outstanding onbondsare included. The statement of activitiesincludes depreciation on all long lived assetsof the District, but transactions between thedifferentfunctions ofthe District have beeneliminated in order to avoid “doubling up”the revenues andexpenses. Thefund financialstatementsprovide a picture ofthe major funds of the District.In thecase of governmentalactivities, outlays for long lived assets are reported as expenditures and long-term liabilities, such ascapital improvementbonds, are not included in thefund financial statements. To provide a link from thefund financial statementsto thegovernment-wide financialstatements, a reconciliationis provided fromthefund financialstatementsto the government-wide financialstatements. Notesto financialstatementsprovide additionaldetailconcerning the financialactivitiesand financialbalancesoftheDistrict.Additionalinformation aboutthe accounting practicesoftheDistrict,investments ofthe District,capital assets and long-term debtare some of the itemsincluded in the notes to financial statements. Financial Highlights The following are the highlights of financial activity for the yearended September30,2024: .TheDistrict’stotal liabilitiesexceeded totalassetsand deferred outflowsofresourcesby $(2,142,094)(net position).Net investment in capital assetsfor GovernmentalActivitieswas $(9,148,699).Net investment in capital assets for Business-type Activities was$2,258,401. Unrestricted netpositionforGovernmental Activitieswas$3,195,400andfor Business-type Activities was$1,033,952.Restricted net position forGovernmentalActivities was $518,852. -5 - South Village Community Development DistrictMANAGEMENT’SDISCUSSION AND ANALYSISFor the YearEndedSeptember 30, 2024 OVERVIEWOFTHE FINANCIAL STATEMENTS (CONTINUED) FinancialHighlights(Continued) .Governmental activities revenuestotaled$4,291,179,while governmental activitiesexpensestotaled$3,724,287.Business-type Activities revenuestotaled $4,683,624, while Business-type Activities expenses totaled $4,592,391. FinancialAnalysis of the District The following schedule provides a summary ofthe assets, liabilities and netpositionof the District and is presented by category for comparison purposes. NetPosition GovernmentalActivitiesBusiness-type ActivitiesTotal202420232024202320242023 Currentassets $ 773,098$ 765,356$ 1,316,497$ 1,135,605$ 2,089,595$ 1,900,961 Restricted assetsCapitalassets,netLeased equipment,netTotalAssets1,714,84713,882,779- 16,370,7241,593,33714,434,849- 16,793,542- 2,258,401504,7464,079,644- 2,320,93646,9123,503,4531,714,84716,141,180504,74620,450,3681,593,33716,755,78546,91220,296,995Deferred outflows145,797159,573--145,797159,573CurrentliabilitiesNon-currentliabilitiesTotalLiabilities1,508,65420,442,31421,950,9681,499,04621,455,40822,954,454372,262415,029787,291302,333- 302,3331,880,91620,857,34322,738,2591,801,37921,455,40823,256,787NetPositionNetinvestmentin capitalassetsRestrictedUnrestrictedTotalNetPosition$ (9,148,699) 518,8523,195,400(5,434,447) (7,030,008)2,258,4012,320,936343,550-- 685,1191,033,952880,184(6,001,339)$ 3,292,353$ 3,201,120$ $ (6,890,298) 518,8524,229,352(2,142,094)$ (4,709,072) 343,5501,565,303(2,800,219) The increase in restrictedassetsforgovernmental activities is related to theincrease in restrictedinvestmentsin the current year. The increase in currentassets for business-type activities isprimarilyrelated to the increase incashand investmentsas a result of revenuesreceivedexceeding expenditurespaidin thecurrent year. The decrease in totalcapital assets isrelated tocurrent year depreciation. The increaseinleasedequipmentandtotalliabilitiesforbusiness-typeactivitiesisrelatedtotheinitiation of a new lease in the currentyear. The decrease in non-current liabilitiesfor governmental activities is primarilyrelated toprincipalpaymentsmade on the bondsin the current year. -6 - South Village Community Development DistrictMANAGEMENT’SDISCUSSION AND ANALYSISFor the YearEndedSeptember 30, 2024 OVERVIEWOFTHE FINANCIAL STATEMENTS (CONTINUED) FinancialAnalysis of the District(Continued) The following schedule provides a summary ofthe changes in netpositionofthe District and ispresentedby categoryfor comparison purposes. Change in Net Position Program RevenuesCharges for servicesGeneral RevenuesInvestment earningsMiscellaneous$ 202420234,143,9604,134,565$ 146,719125,292500- GovernmentalActivities20242023$ 4,674,093$ 4,598,4439,531- -- Business-type Activities$ 20248,818,053$ 156,250500Total20238,733,008125,292- Total Revenues4,291,1794,259,8574,683,6244,598,4438,974,8038,858,300ExpensesGeneral governmentPhysical environmentCulture/recreationInterest and other chargesGolf course and restaurantTotal Expenses166,239665,1381,892,7431,000,167- 3,724,287 164,168623,5841,747,3801,034,792- 3,569,924 ---- 4,592,391 4,592,391 ---- 4,671,016 4,671,016 166,239665,1381,892,7431,000,1674,592,391 8,316,678 164,168623,5841,747,3801,034,7924,671,016 8,240,940 Refund to developer-(530,507)---(530,507) Change in Net Position 566,892 159,426 91,233 (72,573) 658,125 86,853 Net Position - Beginning of YearNet Position - End of Year$ (6,001,339) (5,434,447)$ (6,160,765) (6,001,339) 3,201,120$ 3,292,3533,273,693$ 3,201,120$ (2,800,219) (2,142,094)$ (2,887,072) (2,800,219) The increase in culture/recreation for governmental activities is primarilyrelated to theincreasein payroll from additionalstaff in the current year. The increase in business-typeactivitiescharges forservicesand expensesisrelatedtotheincrease activity atthe golf course in the current year. -7 - South Village Community Development DistrictMANAGEMENT’SDISCUSSION AND ANALYSISFor the YearEndedSeptember 30, 2024 OVERVIEWOFTHE FINANCIAL STATEMENTS (CONTINUED) Capital Assets Activity The following schedule provides a summary of the District’scapital assets as of September 30,2024. GovernmentalBusiness-type DescriptionActivitiesActivitiesTotal Land$ 649,569$ 1,359,781$ 2,009,350Construction in progress4,486,506-4,486,506Infrastructure6,236,016407,0406,643,056Recreation facilities11,607,239738,57712,345,816Equipment197,945242,120440,065Leased equipment, net-504,746504,746Accumulated depreciation(9,294,496)(489,117)(9,783,613) Total Capital Assets (Net)$ 13,882,779$ 2,763,147$ 16,645,926 GovernmentalActivitieshadcurrent year depreciation of $552,070. Business-type Activitieshadcurrentyearadditions to leasedequipmentof$531,312, depreciation of $62,535and amortization of $73,478. General Fund Budgetary Highlights Budgeted expendituresexceeded actualexpendituresfor the yearmostlybecause there werelowerelectric and landscape contingencyexpenditures than were anticipated. TheSeptember 30, 2024budgetwasnotamended. -8 - South Village Community Development DistrictMANAGEMENT’SDISCUSSION AND ANALYSISFor the YearEndedSeptember 30, 2024 OVERVIEWOFTHE FINANCIAL STATEMENTS (CONTINUED) Debt Management GovernmentalActivities debtincludes the following: .In June2016,theDistrictissued$17,075,000CapitalImprovementRevenue andRefunding Bonds,Series2016A-1,$5,480,000 CapitalImprovementRevenueandRefunding Bonds,Series2016A-2,and $5,530,000 CapitalImprovementRevenue andRefunding Bonds, Series 2016A-3. These bonds were issued to finance the acquisitionand construction of certain improvements forthe benefit of the District and to refund theSeries 2005A Bonds. The balance outstanding atSeptember 30, 2024was $11,675,000 for the A-1 bond, $3,745,000 forthe A-2 bond and $3,430,000 for the A-3 bond. .In January 2019, the District issued $3,255,000 Capital Improvement Revenue Bonds, Series 2019A. The bonds were issued to finance the acquisition and construction oftheSeries2019 Project.The balance outstanding atSeptember30,2024was$2,960,000 for the Series 2019A Bonds. Economic Factors and Next Year’s Budget South Village CommunityDevelopmentDistrictdoesnotexpectanyeconomicfactorsto haveanysignificanteffecton the financialposition orresultsofoperationsofthe Districtin fiscalyear2025. Requestfor Information The financial report isdesigned to provide ageneral overview ofSouth Village CommunityDevelopment District’sfinances for all those with an interest. Questionsconcerning any of theinformation provided in this report orrequests for additional information should be addressedto the South Village Community Development District,GMS-SF, LLC,5385 N Nob Hill Road, Sunrise, Florida33351. -9 - South Village Community Development DistrictSTATEMENT OF NET POSITIONSeptember 30, 2024GovernmentalBusiness-typeActivitiesActivitiesTotalASSETSCurrent Assets: Cash and equivalents55,723$ 205,064$ $ 260,787Investments839,299759,5311,598,830Accounts receivable-40,71340,713Inventory9,932140,531150,463Prepaid expenses11,32721,07232,399Deposits-6,4036,403Internal balances-143,183143,183Total Current Assets916,2811,316,4972,232,778Non-Current Assets: Restricted assets: Investments - debt service1,704,071-1,704,071Investments - capital projects10,776-10,776Capital assets not being depreciated: Land649,5691,359,7812,009,350Construction in progress4,486,506-4,486,506Capital assets being depreciated: Infrastructure6,236,016407,0406,643,056Recreation facilites11,607,239738,57712,345,816Equipment197,945242,120440,065Leased equipment, net-504,746504,746Less: accumulated depreciationTotal Non-Current Assets(9,294,496) 15,597,626(489,117) 2,763,147(9,783,613) 18,360,773 Total Assets16,513,9074,079,64420,593,551DEFERRED OUTFLOWS OF RESOURCESDeferred amount on refunding, net145,797-145,797LIABILITIESCurrent Liabilities: Accounts payable and accrued expenses88,862176,075264,937Unearned revenues-85,74385,743Accrued compensated absences-19,36319,363Accrued interest389,792-389,792Leases payable-91,08191,081Bonds payable1,030,000-1,030,000Total Current Liabilities1,508,654372,2621,880,916Non-Current Liabilities: Leases payable-415,029415,029Bonds payable, net20,442,314-20,442,314 Total Liabilities21,950,968787,29122,738,259NET POSITIONNet investment in capital assets(9,148,699)2,258,401(6,890,298) Restricted for debt service508,076-508,076Restricted for capital projects10,776-10,776Unrestricted 3,195,4001,033,9524,229,352 Total Net Position(5,434,447)$ 3,292,353$ $ (2,142,094) See accompanying notes to financial statements. - 10 - South Village Community Development DistrictSTATEMENT OF ACTIVITIESFor the Year Ended September30, 2024 ProgramNet (Expense) Revenue and RevenuesChanges in Net PositionCharges forGovernmentalBusiness-typeFunctions/ProgramsExpensesServicesActivitiesActivitiesTotal Governmental Activities General government$ (166,239)$ 192,799$ 26,560$ -$ 26,560 Physical environment(665,138)558,571(106,567)-(106,567) Culture/recreation(1,892,743)1,374,127(518,616)-(518,616) Interest and other charges(1,000,167)2,018,4631,018,296-1,018,296 Total Governmental Activities(3,724,287)4,143,960419,673-419,673 Business-type Activities Golf course and restaurant(4,592,391)4,674,093-81,70281,702 Total Primary Government$ (8,316,678)$ 8,818,053419,67381,702501,375 General Revenues: Miscellaneous revenues500-500Investment earnings146,7199,531156,250 Total General Revenues147,2199,531156,750 Change in Net Position566,89291,233658,125 Net Position - October 1,2023(6,001,339)3,201,120(2,800,219) Net Position - September 30, 2024$ (5,434,447)$ 3,292,353$ (2,142,094) See accompanying notes to financial statements. - 11 - South Village Community Development DistrictBALANCE SHEET – GOVERNMENTAL FUNDSSeptember 30, 2024ASSETSGeneralSpecialRevenue - Recreation2016A-1/A-2DebtService2016A-3DebtService2019DebtService2016A-1/A-2 Capital ProjectsTotalGovernmentalFundsCashInvestmentsInventoryPrepaid expensesRestricted assets: InvestmentsTotal Assets18,020$ 37,703$ -$ 839,299-- -9,932- -11,327- --1,230,097857,319$ 58,962$ $1,230,097-$ - - - 302,901$302,901-$ - - - 171,073171,073$ -$ - - - 10,77610,776$ 55,723$ 839,2999,93211,3271,714,8472,631,128$ LIABILITIES AND FUND BALANCESLIABILITIESAccounts payable and accrued expensesDue to other fundsTotal Liabilities52,197$ 36,665$ -143,18352,197179,848$ - - - $ - - - $ - - - -$ - - 88,862$ 143,183232,045FUND BALANCESNonspendable-prepaids/inventoryRestricted for debt serviceRestricted for capital projectsUnassignedTotal Fund Balances- - - 805,122805,12221,259- - (142,145) (120,886) - 1,230,097- - 1,230,097- 302,901- - 302,901- 171,073- - 171,073- - 10,776- 10,77621,2591,704,07110,776662,9772,399,083Total Liabilities and Fund Balances857,319$ 58,962$ $1,230,097$302,901171,073$ 10,776$ 2,631,128$ See accompanying notes to financial statements. - 12 - South Village Community Development DistrictRECONCILIATION OF TOTAL GOVERNMENTAL FUND BALANCESTO NET POSITION OF GOVERNMENTAL ACTIVITIESSeptember 30, 2024 Total Governmental Fund Balances$2,399,083Amounts reported for governmental activities in the Statement of Net Positionare different because: Capital assets, not being depreciated, land, $649,569, and construction in progress, $4,486,506, used in governmental activities are not current financial resourcesand, therefore, are not reported at the fund level.5,136,075Capital assets being depreciated, infrastructure, $6,236,016, recreationfacilities, $11,607,239, and equipment, $197,945, net of accumulated depreciation, $(9,294,496), used in governmental activities are not currentfinancial resources and, therefore, are not reported at the fund level.8,746,704not reported at the fund level. Long-term liabilities, including bonds payable, $(21,810,000), net of bond discounts, net, $337,686, are not due and payable in the current period and therefore, are(21,472,314) Deferred outflows of resources are not current financial resources and therefore, are not reported at the fund level.145,797Accrued interest expense for long-term debt is not a current financial use and; therefore, is not reported at the fund level.(389,792) Net Position of Governmental Activities$(5,434,447) See accompanying notes to financial statements. - 13 - South Village Community Development DistrictSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES – GOVERNMENTAL FUNDSFor the Year Ended September 30, 2024Special2016A-1/A-22016A-320192016A-1/A-2TotalRevenue -DebtDebtDebt CapitalGovernmentalGeneralRecreationServiceServiceService ProjectsFundsRevenues: Special assessments$ 751,370$ 1,073,0091,520,807$ 276,135$ 221,521$ -$ 3,842,842$ Swim and tennis revenues-301,118----301,118 Miscellaneous revenues500-----500 Investment earnings45,170-74,64416,5729,814519146,719 Total Revenues797,0401,374,1271,595,451292,707231,3355194,291,179Expenditures: Current General government166,239-----166,239 Physical environment481,621-----481,621 Culture/recreation-1,524,190----1,524,190 Debt service Principal--895,00080,00055,000-1,030,000 Interest--616,854187,450164,198-968,502 Total Expenditures647,8601,524,1901,511,854267,450219,198-4,170,552Net Change in Fund Balances149,180(150,063)83,59725,25712,137519120,627Fund Balances - October 1, 2023655,94229,1771,146,500277,644158,93610,2572,278,456Fund Balances - September 30, 2024$ 805,122(120,886)$ 1,230,097$ 302,901$ 171,073$ 10,776$ 2,399,083$ See accompanying notes to financial statements. - 14 - South VillageCommunityDevelopmentDistrictRECONCILIATIONOFTHE STATEMENTOFREVENUES, EXPENDITURES ANDCHANGESIN FUND BALANCESOFGOVERNMENTALFUNDSTOTHESTATEMENT OF ACTIVITIESForthe YearEndedSeptember30,2024 NetChange in Fund Balances-TotalGovernmentalFunds$ 120,627Amountsreported forgovernmentalactivitiesin the StatementofActivitiesaredifferentbecause: Governmentalfundsreportcapitaloutlaysasexpenditures.However,in theStatementofActivities,the costofthose assetsisallocated overtheirestimated usefullivesasdepreciation.Thisisthe amountofdepreciationin the currentperiod.(552,070) Principalpaymentsare reported asexpendituresatthe governmentalfund level, butare reported asreductionsofliabilitiesin the StatementofNetPosition.1,030,000Deferred outflowsofresourcesforrefunding debtisrecognized asa componentofintereston long-termdebtin the StatementofActivities,butnotatthegovernmentalfund level.Thisisthe amountofinterestin the currentyear.(13,776) Amortization ofbond discountreported in the StatementofActivitiesdoesnotrequirethe use ofcurrentfinancialresourcesand therefore,isnotreported asan expenditure atthe governmentalfund level.(31,906) In the StatementofActivities,interestisaccrued on outstanding bonds; whereasatthe governmentalfund level,interestexpendituresare reported when due.Thisisthe change in accrued interestduring the currentperiod.14,017Change in NetPosition ofGovernmentalActivities$ 566,892 See accompanying notesto financialstatements. -15 - South Village Community Development DistrictSTATEMENT OF REVENUES, EXPENDITURES ANDCHANGES IN FUND BALANCES – BUDGET AND ACTUAL – GENERAL FUNDFor the Year Ended September 30, 2024Variance withFinal BudgetOriginalFinalPositiveBudgetBudgetActual(Negative) Revenues Special assessments751,796$ 751,796$ $ 751,370$ (426) Miscellaneous revenues--500500 Investment earnings4,4434,44345,17040,727 Total Revenues756,239756,239797,04040,801Expenditures Current General government199,542199,542166,23933,303 Physical environment556,697556,697481,62175,076 Total Expenditures756,239756,239647,860108,379Net Change in Fund Balances--149,180149,180Fund Balances - October 1, 2023--655,942655,942Fund Balances - September 30, 2024$ -$ -$ 805,122$ 805,122 See accompanying notes to financial statements. - 16 - South Village Community Development DistrictSTATEMENT OF REVENUES, EXPENDITURES ANDCHANGES IN FUND BALANCES – BUDGET AND ACTUAL – SPECIAL REVENUE – RECREATION FUNDFor the Year Ended September 30, 2024Variance withFinal BudgetOriginalFinalPositiveBudgetBudgetActual(Negative) Revenues Special assessments$1,070,200$ 1,070,200$ 1,073,009$ 2,809 Swim and tennis revenues434,000434,000301,118(132,882) Total Revenues1,504,2001,504,2001,374,127(130,073) Expenditures Current Culture/recreation1,506,2241,506,2241,524,190(17,966) Net Change in Fund Balances(2,024)(2,024)(150,063)(148,039) Fund Balances - October 1, 2023--29,17729,177Fund Balances - September 30, 2024$ (2,024)$ (2,024)$ (120,886)$ (118,862) See accompanying notes to financial statements. - 17 - South Village Community Development DistrictSTATEMENT OF FUND NET POSITION – ENTERPRISE FUNDSeptember 30, 2024 ASSETSCurrent AssetsCash and equivalents$ 205,064Investments759,531Accounts receivable40,713Due from other funds143,183Prepaid expenses21,072Inventories140,531Deposits6,403Total Current Assets1,316,497Non-Current AssetsLand 1,359,781Infrastructure407,040Recreation facilities738,577Equipment242,120Leased equipment, net504,746Less: accumulated depreciation(489,117) Total Non-Current Assets2,763,147Total Assets4,079,644LIABILITIESCurrent LiabilitiesAccounts payable and accrued expenses176,075Leases payable91,081Accrued compensated absences19,363Unearned revenues85,743Total Current Liabilities372,262Non-Current LiabilitiesLeases payable415,029Total Liabilities787,291NET POSITIONNet investment in capital assets2,258,401Unrestricted1,033,952 Total Net Position$ 3,292,353 See accompanying notes to financial statements. - 18 - South Village Community Development DistrictSTATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION – ENTERPRISE FUNDFor the Year Ended September 30, 2024 Operating Revenues: Charges for services$4,032,506Special assessments641,587Total Operating Revenues4,674,093Operating Expenses: Personal services2,320,157Contractual and professional services329,853Supplies and expenses1,252,625Repairs and maintenance410,369Utilities118,857Rent and lease expense24,517Depreciation/amortization136,013Total Operating Expenses4,592,391Operating Income/(Loss)81,702Non-operating Revenues/(Expenses) Investment income9,531Change in Net Postion91,233Net Position - October 1, 20233,201,120Net Position - September 30, 2024$3,292,353 See accompanying notesto financialstatements. - 19 - South Village Community Development DistrictSTATEMENT OF CASH FLOWS – ENTERPRISE FUNDFor the Year Ended September 30, 2024CASH FLOWS FROM OPERATING ACTIVITIESReceipts from customersReceipts from other sourcesPayments to suppliers for goods and servicesPayments to employees for servicesNet Cash Used by Operating Activities$ 4,035,080620,239(2,677,167) (2,323,695) (345,543) CASH FLOWS FROM CAPITAL ACTIVITIES AND RELATED FINANCINGInitiation of lease payablePrincipal payments on operating leaseNet Cash Provided by Capital Activities And Related Financing531,312(75,784) 455,528CASH FLOWS FROM INVESTING ACTIVITIESInterest on cash and investments9,531Net increase in cash and cash equivalents119,516Cash and equivalents - October 1, 2023845,079Cash and equivalents - September 30, 2024$ 964,595RECONCILIATION OF OPERATING INCOME TO NET CASH USED BY OPERATING ACTIVITIESOperating income/(loss) Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation/amortization expenseIncrease in accounts receivableIncrease in prepaid expensesIncrease in inventoriesIncrease in due from other fundsIncrease in accounts payable and accrued expensesDecrease in accrued compensated absencesDecrease in due to other fundsIncrease in unearned revenues$ 81,702(395,299) (7,586) (9,273) (21,352) (21,348) 22,808(3,538) (1,817) 10,160Net Cash Used by Operating Activities$ (345,543) See accompanying notes to financial statements. - 20 - NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements of the District have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The District's more significant accounting policies are described below. 1. 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. 2. Measurement Focus and Basis of Accounting The basic financial statements of the District are composed of the following: • Government-wide financial statements • Fund financial statements • Notes to financial statements NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 2. Measurement Focus and Basis of Accounting (Continued) a. 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. 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. b. Fund Financial Statements The underlying accounting system of the District is organized and operated on the basis of separate funds, each of which is considered to be a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. Fund financial statements for the primary government’s governmental funds are presented after the government-wide financial statements. These statements display information about major funds individually. 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. South VillageCommunity Development DistrictNOTES TOFINANCIAL STATEMENTSSeptember 30, 2024 NOTE A–SUMMARY OFSIGNIFICANTACCOUNTING POLICIES (CONTINUED) 2.Measurement Focus and Basis ofAccounting(Continued) b.Fund Financial Statements(Continued) Governmental Funds(Continued) Assigned Fund Balance–This classification consists of the Board of Supervisors’ intentto be used for specific purposes but are neitherrestricted nor committed. The assigned fund balances can also be assigned by the District’s management company. Unassigned Fund Balance–Thisclassification istheresidualclassification forthegovernment’sgeneralfund and includes all spendable amounts not contained in theother classifications. Unassigned fund balance is considered to be utilized first when anexpenditure is incurred for purposes for which amounts in any ofthose unrestricted fundbalance classificationscould be used. Fund Balance Spending Hierarchy–For all governmental funds exceptspecial revenuefunds,when restricted,committed,assigned,and unassigned fundbalancesare combinedin afund,qualified expendituresarepaid firstfromrestrictedorcommittedfund balance, as appropriate,then assigned and finally unassigned fund balances. EnterpriseFunds In thefund financial statements, the enterprise fund is presented using the accrual basisof accounting. Revenues are recognized when they are earned and expenses arerecognized when the related goods orservices are delivered. In the fund financialstatements, enterprise funds are presented usingthe economicresourcesmeasurementfocus. This meansthat all assets and all liabilities (whether current or non-current) associated with their activity are included on their balance sheets. Enterprise fundoperating statementspresent increases (revenues) and decreases (expenses) in totalnetposition.The DistrictappliesallGASBpronouncementsaswellasFASBStatementsand Interpretations, APB Opinions and Accounting Research Bulletins, issued on orbefore November 30, 1989, which do not conflict with, or contradict,GASBpronouncements. 3.Basis of Presentation a.Governmental MajorFunds General Fund–The GeneralFund is the District’s primary operating fund.It accountsfor all financial resources ofthe general government, exceptthose required to beaccounted forin another fund. SpecialRevenue –Recreation Fund–TheRecreation Fundisaspecialrevenuefundestablished toaccount for the financialresources of the District’s recreation areas. -24 - South VillageCommunity Development DistrictNOTES TOFINANCIAL STATEMENTSSeptember 30, 2024 NOTE A–SUMMARY OFSIGNIFICANTACCOUNTING POLICIES (CONTINUED) 3.Basis of Presentation(Continued) a.Governmental MajorFunds(Continued) 2016A-1/A-2 Debt ServiceFund–The 2016A-1/A-2 Debt Service Fund accounts fordebtservice requirements to retirethecapital improvementrevenue and refundingbonds,Series 2016A-1 and Series 2016A-2. 2016A-3 DebtServiceFund–The2016A-3 DebtService Fundaccounts fordebtservice requirements to retire the capital improvementrevenue and refunding bonds, Series 2016A-3. 2019 Debt ServiceFund–The 2019 Debt Service Fund accountsfor debt servicerequirements to retire the capital improvementrevenuebonds,Series 2019A and2019B. 2016A-1/A-2 Capital ProjectsFund–TheCapitalProjectsFundaccounts forthe proceeds from Long-Term debt issued in 2016through Series 2016 A-1 and A-2 CapitalImprovement Revenue and Refunding Bondsforthe acquisition or construction of majorinfrastructure within theDistrict. b.Enterprise MajorFund EnterpriseFund–TheEnterpriseFundaccounts forthe operations of theGolf Course, Pro Shop, Restaurant,and Capital Reserve,which are funded by proceeds fromoperations ofthese facilities, including green fees, cart fees and member dues in theformofannualspecialassessments.TheCapitalReserveportionaccountsforthe funds set aside to ensure the District has adequate funding for ongoing and futureprojects. c.Non-current GovernmentalAssets/Liabilities GASB Statement 34 requires that non-currentgovernmental assets, such ascapitalassets,and non-current governmentalliabilities, such ascapitalimprovementbonds,bereported in the governmental activities column in the government-wideStatement of NetPosition. -25 - NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 4. Assets, Liabilities, Deferred Outflows of Resources, and Net Position or Equity a. Cash and Investments Florida Statutes require state and local governmental units to deposit monies with financial institutions classified as "Qualified Public Depositories," a multiple financial institution pool whereby groups of securities pledged by the various financial institutions provide common collateral from their deposits of public funds. This pool is provided as additional insurance to the federal depository insurance and allows for additional assessments against the member institutions, providing full insurance for public deposits. The District is authorized to invest in those financial instruments as established by Section 218.415, Florida Statutes. The authorized investments consist of: 1. Direct obligations of the United States Treasury; 2. The Local Government Surplus Funds Trust or any intergovernmental investment pool authorized pursuant to the Florida Interlocal Cooperative Act of 1969; 3. Interest-bearing time deposits or savings accounts in authorized qualified public depositories; 4. Securities and Exchange Commission, registered money market funds with the highest credit quality rating from a nationally recognized rating agency. For purposes of the statement of cash flows, cash equivalents include time deposits, certificates of deposit and all highly liquid debt instruments with original maturities of three months or less and held in a qualified public depository as defined by Chapter 280.02, Florida Statutes. b. 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". c. Inventories Inventories are recorded at cost using the first in-first out basis and recognized as expenses as they are consumed. d. Restricted Assets Certain assets of the District and a corresponding liability or portion of net position is classified as restricted assets on the statement of net position because their use is limited either by law through constitutional provisions or enabling legislation; or by restrictions imposed externally by creditors. In a fund with both restricted and unrestricted assets, qualified expenses are considered to be paid first from restricted net position and then from unrestricted net position. NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 4. Assets, Liabilities, Deferred Outflows of Resources, and Net Position or Equity (Continued) e. Capital Assets Capital assets, which include land, construction in progress, infrastructure, recreation facilities, and equipment, are reported in the applicable governmental activities or business-type activities column. The District defines capital assets as assets with an initial, individual cost of $5,000 or more and an estimated useful life in excess of 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 f. 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. g. 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. h. 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. South VillageCommunity Development DistrictNOTES TOFINANCIAL STATEMENTSSeptember 30, 2024 NOTE A–SUMMARY OFSIGNIFICANTACCOUNTING POLICIES (CONTINUED) 4.Assets,Liabilities,DeferredOutflowsofResources,andNetPosition orEquity(Continued) i.Leases The Districtdetermines if an arrangement is a lease at inception. Lessee arrangements areincluded asright-to-use lease assetsandleaseliabilitiesin the financialstatementsoftheDistrict.Payments for short-term leases with a lease term of 12 months or less arerecognized asexpenses as incurred. The Districthas a $25,000 threshold, fortotalleasepayments,forleasessubjecttoGASB87.Short-termleasesandleasesunderthethresholdare notincluded aslease liabilitiesorright-to-use leaseassetson theStatementofNetPosition in thefinancial statements ofthe District. NOTE B–RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIALSTATEMENTS 1.Explanation of Differences Between the Governmental Fund Balance Sheet and theGovernment-wide Statement of NetPosition “Totalfund balances” ofthe District’s governmental funds,$2,399,083,differs from“netposition” of governmental activities,$(5,434,447),reported in the Statement ofNet Position. This difference primarilyresults from the long-term economic focus oftheStatement ofNet PositionversusthecurrentfinancialresourcesfocusoftheGovernmentalFundBalanceSheet. The effect ofthe differences is illustratedas follows: Capital related items Whencapitalassets(thataretobeusedingovernmentalactivities)arepurchasedorconstructed,thecostofthose assetsisreported asexpendituresatthefund level. However, the Statement of Net Position included those capital assets among the assets ofthe District as a whole. Construction in progress$4,486,506Land649,569Infrastructure6,236,016Recreation facilities11,607,239Equipment197,945Accumulated depreciation (9,294,496) Total$13,882,779 -28 - South VillageCommunity Development DistrictNOTES TOFINANCIAL STATEMENTSSeptember 30, 2024 NOTE B–RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIALSTATEMENTS(CONTINUED) 1.Explanation of Differences Between the Governmental Fund Balance Sheet and theGovernment-wide Statement of Net Position (Continued) Long-termdebt transactions Long-termliabilitiesapplicable totheDistrict’sgovernmentalactivitiesare notdueandpayable in the currentperiod and accordingly are notreported as fund liabilities. All liabilities(bothcurrentand long-term) Balances atSeptember 30,2024were: are reported in theStatement ofNet Position. Bonds payableBond discount, netTotal$ $ (21,810,000) 337,686(21,472,314) Deferred outflows ofresources Deferred outflows ofresourcesapplicable totheDistrict'sgovernmentalactivitiesarenotcurrentfinancialresourcesandtherefore,arenotreportedasdeferredoutflowsofresourcesat the fund level. Deferred amount on refunding, net$ 145,797 Accrued interest Accrued liabilities in the Statement of Net Position differfromthe amount reported at thegovernmental fundleveldue to the accrued interest on bonds. Accrued interest$(389,792) 2.Explanation of Differences Between the Governmental Fund Operating Statementsand the Statement ofActivities The “netchange infund balances”forgovernmentfunds,$120,627,differsfrom the “changein netposition” for governmental activities,$566,892,reported in the Statement ofActivities. The differencesarise primarilyfromthelong-termeconomicfocusoftheStatementofActivities versus the currentfinancial resources focus ofthe governmentalfundlevel. Theeffect ofthe differences is illustrated below. Capitalrelated items When capital assets that are to beused in governmentalactivities are purchased orconstructed,theresourcesexpendedforthose assetsarereported asexpendituresatthegovernmental fundlevel. However, in the Statement of Activities, the costs ofthose assetsis allocated over their estimated useful lives and reported as depreciation.As a result,fundbalances decrease bythe amount offinancial resources expended, whereasnetpositiondecreasesbythe amount ofdepreciationchargedfor the year. Depreciation $(552,070) -29 - South VillageCommunity Development DistrictNOTES TOFINANCIAL STATEMENTSSeptember 30, 2024 NOTE B–RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIALSTATEMENTS(CONTINUED) 2.Explanation of Differences Between the Governmental Fund Operating Statementsand the Statement ofActivities (Continued) Long-termdebt transactions Repayments of bond principal are reported as an expenditure atthe governmental fundleveland, thus, have the effect of reducing fund balance because current financial resourceshave been used. Bond principal payments$1,030,000Amortization of bond discount(31,906) Total$998,094 Some expenses reported in the Statement of Activities do not require the use of currentfinancial resources,therefore, are not reportedas expendituresat thegovernmental fundlevel. Net change in accrued interestpayable$ 14,017Decrease in deferred amount on refunding(13,776) Total$ 241 NOTE C –CASHAND INVESTMENTS Alldepositsare held in qualified publicdepositoriesand are included on the accompanyingbalance sheet ascash and investments. Custodial Credit Risk–Deposits Custodial creditrisk isthe riskthat in the event of a bank failure,the District's deposits may notbe returnedto it. TheDistrict does not have a formal deposit policy for custodial credit risk, however,theyfollowthe provisionsofChapter280,Florida Statutesregarding depositsandinvestments.As ofSeptember 30,2024, the District'sbankbalance was$214,621andthe carryingvaluewas$259,131.Exposuretocustodialcreditriskwasasfollows.TheDistrictmaintains all deposits in a qualified public depository in accordance with the provisions ofChapter280,Florida Statutes,whichmeansthatalldepositsarefullyinsuredbyFederalDepositorsInsurance orcollateralized under Chapter 280, Florida Statutes. -30 - South VillageCommunity Development DistrictNOTES TOFINANCIAL STATEMENTSSeptember 30, 2024 NOTE C –CASHAND INVESTMENTS(CONTINUED) InvestmentsAs of September 30, 2024, the Districthad the following investmentsand maturities: InvestmentMaturitiesFairValueFirst American Government Obligation Fund Florida PRIMETotal31 days * 39 days * $ $ 1,714,8471,598,8303,313,677* Weighted Average Maturity The District categorizes its fair valuemeasurements within the fair value hierarchyrecentlyestablished bygenerallyacceptedaccounting principles.The fairvalue isthe price thatwouldbe received to sell an asset, or paid to transfer a liability, in an orderly transaction betweenmarket participants atthe measurement date. The hierarchy is based on the valuation inputsused to measure the fairvalue of theasset.The District uses a market approach in measuringfair value that uses prices and other relevant information generated by markettransactionsinvolving identical or similar assets, liabilities, or groupsof assets and liabilities. Assets or liabilities areclassified into one ofthree levels. Level 1 isthemostreliable and isbased on quoted price for identical assets, or liabilities, in an active market. Level 2 usessignificant other observable inputs when obtaining quoted prices for identical or similar assets, orliabilities,in marketsthatarenotactive.Level 3 istheleastreliable and usessignificantunobservable inputs that uses the best information available under thecircumstances, whichincludes the District’s own data in measuring unobservable inputs. Based on the criteria in the preceding paragraph, theinvestment in FirstAmerican GovernmentObligation Fund is aLevel 1 asset. The District’s investment policy allows management to invest funds in investments permittedunder Section 218.415, Florida Statutes. Theinvestment in Florida PRIME ismeasured atamortized cost. FloridaPRIME has established policies and guidelines regarding participanttransactions and the authority to limit orrestrictwithdrawals or impose a penalty for an earlywithdrawal. As ofSeptember 30, 2024,there were no redemption fees, maximumtransactionamounts, or anyother requirements that would limit daily access to 100 percent ofthe accountvalue. Interest Rate Risk The District does not have a formal investment policy that limits investment maturities as ameans ofmanaging its exposure to fair value losses arising from increasing interestrates. Credit Risk The District's investments are limited bystatestatutoryrequirementsand bond compliance. The District has no investment policythat would further limit its investment choices.As of September 30,2024,theDistrict'sinvestmentsin theFirstAmericanGovernment Obligation Fundand Florida PRIMEwereratedAAAmby Standard & Poor's. -31 - South VillageCommunity Development DistrictNOTES TOFINANCIAL STATEMENTSSeptember 30, 2024 NOTE C –CASHAND INVESTMENTS(CONTINUED) Concentration of CreditRisk The District places no limit on the amount itmay invest in any one issuer. The investment inFirstAmerican GovernmentObligation Fund represents52%ofthe District'stotalinvestmentsand investment in Florida PRIMErepresents48% ofthe District'stotal investments. The types of deposits and investments and their level of risk exposure as of September 30,2024weretypicalofthese itemsduringthe fiscalyearthenended.TheDistrictconsidersanydecline in fairvalue to be temporary. NOTE D–CAPITALASSETS Capital Asset activity forthe year ended September 30,2024was as follows: Balance Balance10/1/2023Governmental Activities: AdditionsDeletions9/30/2024Capital assets, not being depreciatedLand649,569$ Construction in progress4,486,506Total Capital Assets, Not Depreciated5,136,075Capital assets, being depreciated: Infrastructure6,236,016 Recreation facilities11,607,239 Equipment197,945Total Capital Assets, Being Depreciated18,041,200$ - - - - - - - -$ - - - - - - 649,569$ 4,486,5065,136,0756,236,01611,607,239197,94518,041,200Less accumulated depreciation for: Infrastructure(2,499,209) Recreation facilities(6,045,272) Equipment(197,945) Total Accumulated Depreciation(8,742,426) Total Capital Assets Depreciated, Net9,298,774(183,517) (368,553) - (552,070) (552,070) - - - - - (2,682,726) (6,413,825) (197,945) (9,294,496) 8,746,704Governmental Activities Capital Assets, Net$ 14,434,849$ (552,070)$ -$13,882,779 The infrastructure intended to serve the District has been estimated at a total cost ofapproximately$49 million.Theinfrastructure includesroadways,stormwatermanagementsystem, water and sewerfacilities, recreational facilities, and otherrelated infrastructure. Aportion oftheprojectcostswerefinanced withtheproceedsfromtheSeries2005ABondswhile the remainderwill be funded byadditionalbondsand the Developer. In a priorfiscal year, certain improvementswere conveyed toother entitiesfor ownership and maintenanceresponsibilities. Depreciation wascharged to physical environment,$183,517,andculture/recreation,$368,553. -32 - 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, 2024. Depreciation was charged to the golf course and restaurant, $62,535. BalanceBalance10/1/2023AdditionsDeletions9/30/2024Capital assets, not being depreciated: Land1,359,781$ -$ -$ 1,359,781$ Capital assets, being depreciated: Infrastructure407,040 - - 407,040 Recreation facilities738,577 - - 738,577 Equipment242,120 - - 242,120 Total Capital Assets, Being Depreciated1,387,737 - - 1,387,737 Less accumulated depreciation for: Infrastructure(98,792) (14,468) - (113,260) Recreation facilities(174,198) (24,619) - (198,817) Equipment(153,592) (23,448) - (177,040) Total accumulated depreciation(426,582) (62,535) - (489,117) Total capital assets depreciated, net961,155 (62,535) - 898,620 Business-type Activities Capital Assets2,320,936$ (62,535)$ -$ 2,258,401$ NOTE E – INTERFUND ACTIVITY Interfund balances at September 30, 2024, consisted of the following: 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. Payable FundReceivable FundSpecial Revenue Recreation FundEnterprise Fund 143,183$ NOTE F – LONG-TERM DEBT The following is a summary of debt activity for the District for the year ended September 30, 2024. Long-term debt is comprised of the following: October 1,September 30,2023AdditionsDeletions2024Capital Improvement Revenue and Refunding Bonds Series 2016A-112,355,000$ -$ 680,000$ 11,675,000$ Capital Improvement Revenue and Refunding Bonds Series 2016A-23,960,000 - 215,000 3,745,000 Capital Improvement Revenue and Refunding Bonds Series 2016A-33,510,000 - 80,000 3,430,000 Capital Improvement Revenue Bonds Series 2019A3,015,000 - 55,000 2,960,000 Bonds Payable22,840,000$ -$ 1,030,000$ 21,810,000$ 357 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 $660,000. $ 11,675,000 $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 $225,000. 3,745,000 $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 $85,000. 3,430,000 South VillageCommunity Development DistrictNOTES TOFINANCIAL STATEMENTSSeptember 30, 2024 NOTE F–LONG-TERM DEBT(CONTINUED) Capital Improvement Revenue Bonds (Continued) $3,255,000 Series2019A Capital ImprovementRevenue Bonds duein annual principal installments beginning May 2020.Interest atvariousrates between 4.75% and 5.60% isdueMay and Novemberbeginning May 2019. Current portion is $60,000.2,960,000 Bonds payable21,810,000Bond discount, net(337,686) Bonds Payable, net$ 21,472,314 The annual requirements to amortize the principal and interest of bonded debt outstanding as ofSeptember 30, 2024are asfollows: Year Ending September 30,PrincipalInterestTotal202520262027202820292030-20342035-20392040-20442045-2049 $ 1,030,000 1,040,000 1,090,000 1,130,000 1,185,000 6,705,000 6,470,000 1,730,000 1,430,000 $ 935,135 899,933 862,598 820,404 774,310 3,093,290 1,576,096 667,660 201,450 $ 1,965,135 1,939,933 1,952,598 1,950,404 1,959,310 9,798,290 8,046,096 2,397,660 1,631,450 Totals $ 21,810,000 $ 9,830,876 $ 31,640,876 Prepayments made onthe Series 2016A-2 Bondsfor $15,000 on November 1, 2024, and$5,000 on May 1, 2025,were included in the future payment amortization schedule above. Summary of SignificantBonds Resolution Terms and Covenants Depository Funds–The bond resolution establishes certain funds and determinesthe order inwhich revenues are to be deposited into these funds. A description ofthe significant funds, including their purposes,is asfollows: -35 - South VillageCommunity Development DistrictNOTES TOFINANCIAL STATEMENTSSeptember 30, 2024 NOTE F–LONG-TERM DEBT(CONTINUED) Reserve Fund–The Series2016A-1 and 2016A-2 Capital Improvement Revenue andRefunding Bonds Reserve Accounts arefunded fromthe proceeds of theBonds in an amountequal to fifty percent ofthe Maximum Annual Debt Service Requirementfor the respectivebond. The Series 2016A-3 CapitalImprovement Revenue and Refunding Bonds is fundedfromthe proceeds of theBondsin an amount equalto thirty-five percent ofthe MaximumAnnual Debt ServiceRequirementfortheSeries2016A-3Bonds.The Series2019ACapitalImprovement RevenueBonds is funded fromthe proceeds ofthe Bonds in an amount equaltotwenty-five percent ofthe Maximum Annual Debt Service Requirementfor the Series 2019ABonds.Moniesheld in the reserve accounts will be usedonlyforthe purposes establishedin the Trust Indenture. Reserve BalanceRReserve equirementSeries 2016A-1 Capital Improvement Revenue and Refunding BondSeries 2016A-2 Capital Improvement Revenue and Refunding BondSeries 2016A-3 Capital Improvement Revenue and Refunding BondSeries 2019A Capital Improvement Revenue and Refunding Bond $ $ $ $ 547,361 193,278 136,668 62,031 $ $ $ $ 480,250 176,257 94,483 55,213 NOTE G–LEASESBusiness-type Activities The District,aslessee,enteredinto multiple agreementsto lease certain equipment.TheagreementsqualifyasleasesunderGASB87and,therefore,havebeen recorded atthepresent value offuture minimum lease payments as of the date of their inception.In addition, in accordancewiththeimplementationofGASB87,theDistricthasrecorded right-to-useassetsfor leased equipment. The firstagreementwasexecutedin March 2020 andbeganpaymentsin July2020,tolease certain golfcartsand requires48 monthlypaymentsof$5,737.96.The lease liabilitywasmeasuredatadiscountrateof5%,whichistheDistrict’sincrementalborrowing rate.Thisleaseended in the currentfiscal year. The second agreementwasexecutedin March2024and began paymentsin July2024, tolease golfcourseequipmentandrequires60monthlypaymentsof$10,721.88.Theleaseliability wasmeasuredat a discount rate of 8.08%, which isthe rateindicated in the leaseagreement. As a resultofthe lease,the District reported a right-to-use asset with a net bookvalue of $504,746 at September 30, 2024. -36 - NOTE G – LEASES (CONTINUED) The future minimum payments under these lease agreements and the present value of the minimum payments as of September 30, 2024, were as follows: The District has recorded right-to-use leased assets for leased equipment. Right-to-use asset activity for the year ended September 30, 2024, was as follows: Year Ending September 30,PrincipalInterestTotal202591,081$ 37,582$ 128,663$ 202698,721 29,941 128,662 2027107,003 21,660 128,663 2028115,979 12,683 128,662 202993,326 3,171 96,497 Totals506,110$ 105,037$ 611,147$ NOTE H – SPECIAL ASSESSMENT REVENUES Balance October 1, 2023AdditionsDeletionsBalance September 30, 2024Right-to-use assets Leased equipment476,277$ 531,312$ (226,080)$ 781,509$ Less accumulated amortization for Leased equipment(429,365) (73,478) 226,080 (276,763) Right-to-use assets, net46,912$ 457,834$ -$ 504,746$ 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. 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, 2024, the costs related to the maintenance incurred by Middle Village was approximately $105,681, of which $36,022 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 On November 1, 2024, the District made prepayments totaling $35,000, $15,000, and $5,000 on the Series 2016 A-1, A-2, and A-3 Capital Improvement Revenue and Refunding Bonds, respectively. On May 1, 2025, the District made prepayments totaling $15,000, $5,000, and $5,000 on the Series 2016 A-1, A-2, and A-3 Capital Improvement Revenue and Refunding Bonds, respectively. 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, 2024, and the related notes to the financial statements, which collectively comprise the basic financial statements and have issued our report thereon dated June 20, 2025. 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. 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 20, 2025 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, 2024, and have issued our report thereon dated June 20, 2025. 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 Reports and Schedule We have issued our Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards and our Independent Auditor’s Report on an examination conducted in accordance with AICPA Professionals Standards, AT-C Section 315 regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in that report, which is dated June 20, 2025, should be considered in conjunction with this management letter. Prior Audit Findings Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective actions have been made to address findings and recommendations made in the preceding financial audit report. 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. The finding was corrected for the General Fund. Financial Condition and Management Section 10.554(1)(i)5.a. and 10.556(7), Rules of the Auditor General, requires us to apply appropriate procedures and communicate the results of our determination as to whether or not 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 the South Village Community Development District has not met one of the conditions described in Section 218.503(1), Florida Statutes. Pursuant to Sections 10.554(1)(i)5.b. and 10.556(8), Rules of the Auditor General, we applied financial conditions assessment procedures as of September 30, 2024 for the 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. 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 below was provided by management and has not been audited by us; 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)7, Rules of the Auditor General, South Village Community Development District reported: 1) The total number of District elected officials receiving statutory compensation, reported as employees for the purposes of the audit: 0 2) The total number of independent contractors, defined as individuals or entities that receive 1099s, to whom nonemployee compensation was paid in the last month of the District’s fiscal year: 0 3) All compensation earned by or awarded to employees, whether paid or accrued, regardless of contingency: $0 4) All compensation earned by or awarded to nonemployee independent contractors, whether paid or accrued, regardless of contingency: $0 5) 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, 2023, together with the total expenditures for such project: N/A 6) A budget variance based on the budget adopted under Section 189.016(4), Florida Statutes, before the beginning of the fiscal year being reported if the District amends a final adopted budget under Section 189.016(6), Florida Statutes: The budget was not amended. As required by Section 218.39(3)(c), Florida Statutes, and Section 10.554(1)(i)9, Rules of the Auditor General, the South Village Community Development District reported: 1) The rate or rates of non-ad valorem special assessments imposed by the District: $1,749.00 for the General Fund and $1,469.09 - $1,470.05 for the Debt Service Fund. 2) The amount of special assessments collected by or on behalf of the District was $4,484,429. 3) The total amount of outstanding bonds issued by the District and the terms of such bonds as: The bonds outstanding are $11,675,000 Series 2016A-1, due on May 1, 2038, at various interest rates between 2.00% – 3.75%; $3,745,000 Series 2016 A-2, due on May 1, 2038, at various interest rates between 4.35% - 5.00%; $3,430,000 Series 2016 A-3, due on May 1, 2046 at various interest rates between 5.50% - 6.00%; and $2,960,000 Series 2019A, due on May 1, 2049, at various interest rates between 4.75% – 5.60%. 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 fraud, waste, or abuse, that has occurred, or are likely to have occurred, that has an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit, we did not note any such findings. Purpose of this Letter Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, the Board of Supervisors, and applicable management, and is not intended to be and should not be used by anyone other than these specified parties. Berger, Toombs, Elam, Gaines & Frank Certified Public Accountants PL Fort Pierce, Florida June 20, 2025 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, 2024. 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, 2024. Berger, Toombs, Elam, Gaines & Frank Certified Public Accountants PL Fort Pierce, Florida June 20, 2025