PALM BEACH PLANTATION COMMUNITY DEVELOPMENT DISTRICT
PALM BEACH COUNTY, FLORIDA

FINANCIAL STATEMENTS WITH INDEPENDENT AUDITOR’S REPORT THEREON

ANNUAL AUDIT FOR THE YEAR ENDED SEPTEMBER 30, 2017

PALM BEACH PLANTATION COMMUNITY DEVELOPMENT DISTRICT PALM BEACH COUNTY, FLORIDA
SEPTEMBER 30, 2017

TABLE OF CONTENTS
Pages

Independent Auditor's Report	1- 2
Management’s Discussion and Analysis (required supplementary information)	3- 7
Basic Financial Statements
Government-wide Financial Statements
Statement of Net Position	8
Statement of Activities	9
Fund Financial Statements
Balance Sheet – Governmental Funds	10
Reconciliation of the Balance Sheet – Governmental Funds to
the Statement of Net Position – Governmental Activities	11
Statement of Revenues, Expenditures, and Changes in Fund Balances-
Governmental Funds	12
Reconciliation of the Statement of Revenues, Expenditures, and Changes
in Fund Balances of the Governmental Funds to the Statement of Activities	13
Notes to the Financial Statements	14-26
Required Supplemental Information Other Than Management’s Discussion and Analysis Schedule of Revenues, Expenditures, and Changes in Fund Balance –
Budget and Actual – General Fund	27
Notes to the Budgetary Required Supplementary Information	28
Other Reports
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	29-30
Management Letter in Accordance with the Rules of the Auditor General
of the State of Florida	31-33
Independent Accountant’s Report on Compliance with
Section 218.415, Florida Statutes	34

INDEPENDENT AUDITOR'S REPORT

To the Board of Supervisors
Palm Beach Plantation Community Development District Palm Beach County, Florida

Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities and each major fund of the Palm Beach Plantation Community Development District (the “District”), as of and for the year ended September 30, 2017, and the related notes to the financial statements, which collectively comprise the District’s basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities and each major fund of the Palm Beach Plantation Community Development District as of September 30, 2017, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis on pages 3 through 7 and the budgetary comparison information on pages 27 and 28 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards,  we  have  also  issued  our  report  dated  June 11, 2018, on our consideration of the District’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the District’s internal control over financial reporting and compliance.

West Palm Beach, Florida June 11, 2018

MANAGEMENT’S DISCUSSION AND ANALYSIS

Our discussion and analysis of Palm Beach Plantation Community Development District, Palm Beach County, Florida’s (“District”) provides a narrative overview of the District’s financial activities for the fiscal year ended September 30, 2017. Please read it in conjunction with the District’s Independent Auditor’s Report, basic financial statements, accompanying notes and supplementary information to the basic financial statements.

FINANCIAL HIGHLIGHTS

The liabilities of the District exceeded its assets and deferred outflows at the close of the most recent fiscal year resulting in a net position deficit balance of $1,778,627. When the District was formed, assets exceeded liabilities and subsequently infrastructure was deeded to Palm Beach County creating the negative net position. The reason for the transfer of infrastructure was that the County is better able to maintain the infrastructure than the District. The debt related to the assets transferred to the County will be paid by future assessments and as demonstrated by the fund financial statements the District has sufficient resources for current operations.

The change in the District’s total net position in comparison with the prior fiscal year was an increase of $214,146. The key components of the District’s net position and change in net position are reflected in the table in the government-wide financial analysis section.

At September 30, 2017, the District’s governmental funds reported combined ending fund balances of $463,165, an decrease of $18,308 in comparison with the prior year. Of the total fund balance, $372,753 is restricted for debt service and $90,412 is unassigned fund balance which is available for spending at the District’s discretion.

OVERVIEW OF FINANCIAL STATEMENTS

The discussion and analysis are intended to serve as the introduction to the District’s basic financial statements. The District’s basic financial statements are comprised of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains supplementary information in addition to  the basic financial statements themselves.

Government-Wide Financial Statements

The government-wide financial statements are designed to provide readers with a broad overview of the District’s finances, in a manner similar to a private-sector business.

The statement of net position presents information on all the District’s assets, deferred outflows of resources, and liabilities, with the residual amount being reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the District is improving or deteriorating.

The statement of activities presents information showing how the government’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as  the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods.

The government-wide financial statements include all governmental activities that are principally supported by special assessment revenues. The District does not have any business-type activities. The governmental activities of the District include the general government (management) and maintenance functions.

Fund Financial Statements

A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The District, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. The District has one fund category: governmental funds.

Governmental Funds

Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near- term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a District’s near-term financing requirements.

Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the District’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balance provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.

The District maintains two individual governmental funds. Information is presented separately in the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances for the general fund and debt service fund. The general and debt service funds are considered to be major funds.

The District adopts an annual appropriated budget for its general fund. A budgetary comparison schedule has been provided for the general fund to demonstrate compliance with the budget.

The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements.

GOVERNMENT-WIDE FINANCIAL ANALYSIS

As noted earlier, net position may serve over time as a useful indicator of an entity’s financial position. In the case of the District, due to the transfer of infrastructure to Palm Beach County, liabilities exceeded assets and deferred outflows at the close of the most recent fiscal year.

Key components of the District’s net position are reflected in the following table:
NET POSITION SEPTEMBER 30,

	 	2017		 	2016		
Current and other assets	$	471,211	$	491,480	
Capital assets, net of depreciation	 	2,995,415 	 	3,033,380 	
Total assets	 	3,466,626 	 	3,524,860 	
Deferred outflows of resources	 	48,160 	 	52,173 	
Current liabilities	93,413	99,806	
Long-term liabilities	 	5,200,000 	 	5,470,000 	
Total liabilities	 	5,293,413 	 	5,569,806 	
Net position			
Net investment in capital assets	194,252	86,772	
Restricted	287,386	304,344	
Unrestricted	 	(2,260,265)	 	(2,383,889)	
Total net position (deficit)	   $ (1,778,627)	$ (1,992,773)	

The District’s net position reflects its investment in capital assets (e.g., land, land improvements, and infrastructure); less any related debt used to acquire those assets that is still outstanding. These assets are used to provide services to residents; consequently, these assets are not available for future spending. Although the District’s investment in capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.

The restricted portion of the District’s net position represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position may be used to meet the District’s other obligations.

The District’s net position increased during the most recent fiscal year. The majority of the increase represents the extent to which the ongoing program revenues exceeded the cost of operations and depreciation expense.

CHANGES IN NET POSITION
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,

Revenues: Program revenues	 	2017		 	2016		
Charges for services	$	559,683	$	563,457	
Operating grants and contributions	716	354	
General revenues	 	228 	 	259 	
Total revenues	 	560,627 	 	564,070 	

Expenses:			
General government	73,521	77,483	
Maintenance and operations	58,255	37,965	
Interest	 	214,705 	 	225,113 	
Total expenses	 	346,481 	 	340,561 	
Change in net position	 	214,146 	 	223,509 	
Net position (deficit) – beginning	 	(1,992,773)	 	(2,216,282)	
Net position (deficit) – ending	  $	(1,778,627)	$	(1,992,773)	

As in the prior fiscal year, program revenues are comprised primarily of assessments. As noted above and in the statement of activities, the cost of all governmental activities during the fiscal year ended September 30, 2017 was $346,481. The costs of the District’s activities were primarily funded by program revenues. Program revenues, comprised primarily of assessments, decreased slightly during the fiscal year.

GENERAL BUDGETING HIGHLIGHTS

An operating budget was adopted and maintained by the government board for the District pursuant to the requirements of Florida Statutes. The budget is adopted using the same basis of accounting that is used in preparation of the fund financial statements. The legal level of budgetary control, the level at which expenditures may not exceed budget is at the aggregate fund level. Any budget amendments that increase the aggregate budgeted appropriations must be approved by the Board of Supervisors. The 2017 general fund budget was amended to decrease revenues by $448 and increase appropriations by $6,464. The decrease in revenues is primarily the result of assessments used for debt service requirements by the District. The actual general fund expenditures for the 2017 fiscal year were lower than budgeted amounts due primarily to anticipated costs which were not incurred in the current fiscal year.

CAPITAL ASSETS AND DEBT ADMINISTRATION

Capital Assets

At September 30, 2017, the District had $3,482,011 invested in land and land improvements, infrastructure, and improvements, for its governmental activities. In the government-wide financial statements depreciation of $486,596 has been taken, which resulted in a net book value of $2,995,415. More detailed information about the District’s capital assets is presented in the notes to the financial statements.

The following is a summary of capital assets as of September 30:

	 	2017		 	2016		
Land and land improvements	$ 1,963,413	$ 1,963,413	
Water control and other	 	1,518,598 	 	1,518,598 	
	3,482,011	3,482,011	
Less accumulated depreciation	 	486,596 	 	448,631 	
Totals	  $ 2,995,415 	$ 3,033,380	

Long-Term Liabilities

At September 30, 2017, the District had $5,200,000 in Bonds outstanding for its governmental activities. More detailed information about the District’s long-term liabilities is presented in the notes of the financial statements.

The following is a summary of long-term liabilities as of September 30:

 	2017		 	2016	

Bonds payable, Series 2014	 $  5,200,000	$ 5,470,000

ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND OTHER EVENTS

The District does not anticipate any major projects or significant changes to its infrastructure maintenance program for the subsequent fiscal year. In addition, it is anticipated that the general operations of the District will remain fairly constant.

CONTACTING THE DISTRICT’S FINANCIAL MANAGEMENT

This financial report is designed to provide our citizens, landowners, customers, and creditors with a general overview of the District’s finances and to demonstrate the District’s accountability for the financial resources it manages and the stewardship of the facilities it maintains. If you have questions about this report or need additional financial information, contact the Palm Beach Plantation Community Development District’s management services at Special District Services, Inc., 2501A Burns Road, Palm Beach Gardens, Florida 33410.

Statement of Net Position September 30, 2017

Assets
Current assets:
Cash

Total Governmental Activities

$	95,097

Investments	372,753
Accounts receivable	3,361

Total current assets	471,211

Noncurrent assets:
Capital assets
Non-depreciable	1,963,413	
Depreciable (net of depreciation)	1,032,002	
Total noncurrent assets	2,995,415	
Total assets	3,466,626	

Deferred outflows of resources
Deferred loss on bond refunding, net	

48,160	

Accounts payable	7,133	
Accrued liabilities	913	
Accrued interest payable	85,367	
Total current liabilities	93,413	
Noncurrent liabilities
Due within one year	
260,000	
Due in more than one year	4,940,000	
Total noncurrent liabilities	5,200,000	
Total liabilities	5,293,413	
Net position		
Net investment in capital assets	194,252	
Restricted for debt service	287,386	
Unrestricted	(2,260,265)	
Total net position	$ (1,778,627)	

Liabilities  Current liabilities:

See notes to the financial statements

Statement of Activities
For the Year Ended September 30, 2017

 	Program Revenues	

Function / Program Activities Governmental activities	

 	Expenses		Charges For
 	Services		Operating Grants	Capital Grants		Total and		and	Governmental
  Contributions	 Contributions	 	Activities		
General government	$	73,521	$	73,521	$	$	$	
Maintenance and operations	58,255	23,144	(35,111)	
Interest on long term debt	 	214,705 	 	463,018 	 	716	 	 	249,029 	
Total governmental activities	 	346,481 	 	559,683 	 	716	 	 	213,918 	

General revenues
Investment earnings - Unrestricted	 	228 	
Total general revenues	 	228 	
Change in net position	214,146	
Net position, beginning of year	 	(1,992,773)	
Net position, end of year	  $ (1,778,627)	

See notes to the financial statements

PALM BEACH PLANTATION COMMUNITY DEVELOPMENT DISTRICT PALM BEACH COUNTY, FLORIDA
Balance Sheet Governmental Funds September 30, 2017

Major Funds
	
General Fund		Debt Service
Fund		Total Governmental
Funds	
Assets
Cash	
$	95,097		
$		
$	95,097	
Investments			372,753		372,753	
Accounts receivable	3,361				3,361	

Total assets

$	98,458

$	372,753

$	471,211

Accounts payable	$	7,133		$	$	7,133	
Accrued liabilities	913		913	

Total liabilities	
8,046		
8,046	

Liabilities and fund balances Liabilities

Fund balances Restricted
Debt service			372,753		372,753	
Unassigned	90,412				90,412	

Total fund balances	
90,412		
372,753		
463,165	

Total liabilities and fund balances	
$	98,458		
$	372,753		
$	471,211	

See notes to the financial statements

PALM BEACH PLANTATION COMMUNITY DEVELOPMENT DISTRICT PALM BEACH COUNTY, FLORIDA
Reconciliation of the Balance Sheet - Governmental Funds to the Statement of Net Position - Governmental Activities September 30, 2017

Fund balances total governmental funds	$	463,165

Amounts reported for governmental activities in the statement of net position are different because:

Capital assets used in governmental activities are not financial resources and therefore are not reported in the governmental funds.

Governmental capital assets	$	3,482,011
Less accumulated depreciation	(486,596)

2,995,415

Governmental funds report loss on debt refunding as an expenditure when those costs are first incurred because they require the use of current financial resources. However, loss on debt refunding is included as a deferred outflow of resources in the government-wide financial statements

Deferred loss on refunding	48,160

Long-term liabilities, including notes and bonds payable, are not due and payable in the current period and therefore are not reported in the funds. Long-term liabilities at year-end consists of:

Accrued interest payable	(85,367)
Bonds payable	(5,200,000)

(5,285,367)

Net position of governmental activities	$	(1,778,627)

See notes to the financial statements

Combined Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
For the Year Ended September 30, 2017

Major Funds

Debt	Total

Revenues

General	Service	Governmental
Fund	Fund	Funds

Assessments	$	96,665		$	463,018		$	559,683	
Investment earnings	228		716		944	
Total revenues	96,893		463,734		560,627	
Expenditures Current						
General government	73,521				73,521	
Maintenance Debt service
Principal	20,290		

270,000		20,290

270,000	
Interest			215,124		215,124	
Total expenditures	93,811		485,124		578,935	

Excess of revenues over (under) expenditures	
3,082		
(21,390)		
(18,308)	
Fund balances - beginning of year	87,330		394,143		481,473	
Fund balances - end of year	$	90,412		$	372,753		$	463,165	

See notes to the financial statements

Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of the Governmental Funds to the Statement of Activities For the Year Ended September 30, 2017

Net change in fund balances	$	(18,308)

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

Depreciation on capital assets is not recognized in the governmental fund financial statement but is reported as an expense in the statement of activities:

Current year depreciation	(37,965)

Repayment of debt principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net position:

Repayment of debt principal	270,000

Some expenses reported in the statement of activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds.
Deferred loss on refunding

$	(4,013)

Change in accrued interest	4,432

419

Change in net position	$	214,146

See notes to the financial statements

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The financial statements of the Palm Beach Plantation Community Development District (“District”) have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The District’s significant accounting policies are described below.

Reporting Entity

The District was created on October 21, 2003, pursuant to the Uniform Community  Development District Act of 1980, otherwise known as Chapter 190, Florida Statutes, by Palm Beach County Ordinance 2003-054. The Act provides among other things, the power to manage basic services for community development, power to borrow money and issue bonds, and to levy and assess non-ad valorem assessments for the financing and delivery of capital infrastructure.

The District was established for the purposes of financing and managing the acquisition, construction, maintenance and operation of a portion of the infrastructure necessary for community development within the District.

The District is governed by the Board of Supervisors (“Board”) which is composed of five members. The Supervisors are elected on an at large basis by the owners of the property within the District. Ownership of and within the District entitles the owner to one vote per acre. The Board of Supervisors of the District exercise all powers granted to the District pursuant to Chapter 190, Florida Statutes.

The Board has the final responsibility for:

Assessing and levying assessments.
Approving budgets.
Exercising control over facilities and properties.
Controlling the use of funds generated by the District.
Approving the hiring and firing of key personnel.
Financing improvements.

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Reporting Entity (Continued)

As required by generally accepted accounting principles, these financial statements include the District (the primary government) and its component units. Component units are legally separate entities for which the District is financially accountable. The District is financially accountable if:

the District appoints a voting majority of the organization’s governing board and (1) the District is able to impose its will on the organization or (2) there is a potential for the organization to provide specific financial benefits to or impose specific financial burdens on the District, or

the organization is fiscally dependent on the District and (1) there is a potential for the organization to provide specific financial benefits to the District or (2) impose specific financial burdens on the District.

Organizations for which the District is not financially accountable are also included when doing so is necessary in order to prevent the District’s financial statements from being misleading.

Based upon application of the above criteria, management of the District has determined that no component units exist which would require inclusion in this report. Further, the District is not aware of any entity that would consider the District to be a component unit.

Government-Wide and Fund Financial Statements

The basic financial statements include both government-wide and fund financial statements.

The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the non-fiduciary activities of the primary government. For the most part, the effect of interfund activity has been removed from these statements.

The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include: 1) charges to customers who purchase, use or directly benefit from goods, services or privileges provided by a given function or segment; operating-type special assessments for maintenance and debt service are treated as charges for services, and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Other items not included among program revenues are reported instead as general revenues.

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Measurement Focus, Basis of Accounting and Financial Statement Presentation

The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Assessments are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.

Governmental Funds

Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures are recorded when  a liability is incurred, as under accrual accounting. However, debt service expenditures are recorded only when payment is due.

The District reports the following major governmental funds:

General Fund
The general fund is the general operating fund of the District.	It is used to account for all financial resources except those required to be accounted for in another fund.

Debt Service Fund
The debt service fund is used to account for the accumulation of resources for the annual payment of principal and interest on long-term debt.

As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements.

Restricted Assets

These assets represent cash and investments set aside pursuant to Bond covenants or other contractual restrictions.

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Deposits and Investments

The District’s cash and cash equivalents are considered to be cash on hand and demand deposits (interest and non-interest bearing).

The District has elected to proceed under the Alternative Investment Guidelines as set forth in Section 218.415 (17) Florida Statutes. The District may invest any surplus public funds in the following:
The Local Government Surplus Trust Funds, or any intergovernmental investment pool authorized pursuant to the Florida Interlocal Cooperation Act;
Securities and Exchange Commission registered money market funds with the highest credit quality rating from a nationally recognized rating agency;
Interest bearing time deposits or savings accounts in qualified public depositories;
Direct obligations of the U.S. Treasury.

Securities listed in paragraph c and d shall be invested to provide sufficient liquidity to pay obligations as they come due. Unspent Bond proceeds and Required Reserves are required to be held in investments as specified in the Bond Indenture.

Investments are stated at fair value. Fair value is defined as 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. Fair value is a market-based measurement, not an entity-specific measurement. For some assets and liabilities, observable market transactions or market information might be available; for others, it might not be available. However, the objective of fair value measurement in both cases is the same, that is, to determine the price at which an orderly transaction to sell the asset or to transfer the liability would take place between market participants at the measurement date under current market conditions. Fair value is an exit price at the measurement date from the perspective of a market participant that controls the asset or is obligated for the liability. The District categorizes investments reported at fair value in accordance with the fair value hierarchy established by GASB Statement No. 72, Fair Value Measurement and Application. The District records all interest revenue to investment activities in the respective funds.

Prepaid Items

Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. In the governmental funds, prepaid items are recorded using the consumption method and are offset by the nonspendable fund balance component which indicates they do not constitute available spendable resources, even though they are a component of current assets.

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Capital Assets

Capital assets, which include property, plant and equipment, and infrastructure assets (e.g., roads, sidewalks and similar items) are reported in the governmental activities columns in the government-wide financial statements. Capital assets are defined by the government as assets with an initial, individual cost of more than $5,000 (amount not rounded) and an estimated useful life in excess of two years. Such assets are recorded at historical costs or estimated historical  cost if purchased or constructed. Donated capital assets, donated works of art and similar items, and capital assets received in a service concession arrangement are reported at acquisition cost.

The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed.
Property, plant and equipment of the District are depreciated using the straight-line method over the following estimated useful lives:
Assets	Years
Infrastructure – water control and other	40
In the governmental fund financial statements, amounts incurred for the acquisition of capital assets are reported as fund expenditures. Depreciation expense is not reported in the governmental fund financial statements.
Deferred Outflow of Resources
In addition to assets, the statement of net position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position or fund balance that applies to a future period(s) and thus, will not be recognized as an outflow of resources (expense/expenditure) until that time. The District only has one item that qualifies for reporting in this category. It is the deferred amount on bond refunding. The deferred loss on current refunding of bonds is being amortized, using the straight line method, and reported as a component of interest expense. The amortization period of deferred losses on refunding of debt is the remaining life of the old debt  or the life of the new debt, whichever is shorter.

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Deferred Inflow of Resources
In addition to liabilities, the statement of net position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position or fund balance that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. Currently, the District does not report any deferred inflows of resources.
Unearned Revenue
The District reports unearned revenue on its government wide Statement of Net Position and governmental funds balance sheet. Unearned revenue arises when resources are obtained prior to revenue recognition. In subsequent periods, when revenue recognition criteria are met the unearned revenue is removed and revenue is recognized.
Long-Term Obligations

In the government-wide financial statements long-term debt and other long-term obligations are reported as liabilities in the statement of net position. Bond premiums and discounts are deferred and amortized over the life of the Bonds. Bonds payable are reported net of applicable  premiums or discounts. Bond issuance costs are expenses when incurred.

In the fund financial statements, governmental fund types recognize premiums and discounts, as well as issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.

Fund Balance

In the fund financial statements, governmental funds report fund balance classifications that comprise a hierarchy based primarily on the extent to which the District is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. Fund balance is reported under the following categories:

Nonspendable fund balance represents amounts that are not in spendable form or are legally or contractually required to be maintained intact.

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Fund Balance (Continued)

Restricted fund balance represents amounts that can be spent only for specific purposes stipulated by external providers (e.g. creditors, grantors, contributor, or laws or regulations of other governments) or imposed by law through constitutional provisions or enabling legislation.

Committed fund balance represents amounts that can be used only for the specific purposes determined by formal action (resolution) of the Board of Supervisors. Commitments may be changed or lifted only by the Board of Supervisors taking the same formal action (resolution).

Assigned fund balance includes spendable fund balance amounts that are intended to be used for specific purposes, as expressed by the Board of Supervisors, that are neither considered restricted or committed. The Board may also assign fund balance as it does when appropriating fund balance to cover differences in estimated revenue and appropriations in the subsequent year’s appropriated budget. Assignments are generally temporary and normally the same formal action need not be taken to remove the assignment.

Unassigned fund balance is the residual fund balance classification for the general fund. It is also used to report negative fund balances in other governmental funds.

When an expenditure is incurred for purposes for which both restricted and unrestricted (committed, assigned, or unassigned) amounts are available, it is the District’s policy to reduce restricted amounts first. When an expenditure is incurred for purposes for which amounts in any of the unrestricted fund balance classifications could be used, it is the District’s policy to reduce committed amounts first, followed by assigned amounts, and then unassigned amounts.

Net Position

Net position is the residual of all other elements presented in a statement of financial position. It is the difference between (a) assets plus deferred outflows of resources and (b) liabilities and deferred inflows of resources. Net position is displayed in the following three components:

Net investment in capital assets – Consists of capital assets including restricted capital assets, net of accumulated depreciation and reduced by the outstanding balances of any bonds, notes or other borrowings that are attributable to the acquisition, construction or improvement of those assets.

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Net Position (Continued)

Restricted net position – Consists of net position with constraints placed on the use either by: (1) external groups such as creditors, grantors, contributors, or laws or regulations of other governments; or (2) law through constitutional provisions of enabling legislation.

Unrestricted net position – All other net position that does not meet the definition of “restricted” or “net investment in capital assets.”

Assessments

Assessments are non-ad valorem assessments on certain land and all platted lots within the District. Assessments are levied each November 1 on property of record as of the previous January. The fiscal year for which annual assessments are levied on October 1 with discounts available for payments through February 28 and become delinquent on April 1. For debt service assessments, amounts collected as advance payments are used to prepay a portion of the Bonds outstanding. Otherwise, assessments are collected annually to provide funds for the debt service on the portion of the Bonds which are not paid with prepaid assessments.

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

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenditures during the reporting period. Actual results could differ from those estimates.

NOTE 2 – BUDGETARY INFORMATION

The District is required to establish a budgetary system and an approved Annual Budget. Annual Budgets are adopted on a basis consistent with generally accepted accounting principles for the general fund. All annual appropriations lapse at fiscal year end.

NOTE 2 – BUDGETARY INFORMATION (Continued)

The District follows these procedures in establishing the budgetary data reflected in the financial statements.

Each year the District Manager submits to the District Board a proposed operating budget for the fiscal year commencing the following October 1.
Public hearings are conducted to obtain public comments.
Prior to October 1, the budget is legally adopted by the District Board.
Any budget amendments that increase the aggregate budgeted appropriations must be approved by the District Board. The legal level of control is at the fund level.
Unused appropriation for annually budget funds lapse at the end of the year.

NOTE 3 – DEPOSITS AND INVESTMENTS

Deposits

In addition to insurance provided by the Federal Depository Insurance Corporation, deposits are held in banking institutions approved by the Treasurer of the State of Florida. Under Florida Statutes, Chapter 280, Florida Security for Public Deposits Act, the State Treasurer requires all Florida qualified public depositories to deposit with the Treasurer or other banking institution eligible collateral. In the event of failure of a qualified public depository, the remaining public depositories would be responsible for covering any resulting losses. The District’s deposits at year end are considered insured for custodial credit risk purposes. As of September 30, 2017, the bank balance of the District’s deposits totaled $95,097 and the carrying amount was $95,097.

Investments

GASB Statement No. 72, Fair Value Measurement and Application, requires governments to disclose the fair value hierarchy for each type of asset or liability measured at fair value in the notes to the financial statements. The standard also requires governments to disclose a description of the valuation techniques used in the fair value measurement and any significant changes in valuation techniques. GASB 72 establishes a three-tier fair value hierarchy. The hierarchy is based on valuation inputs used to measure the fair value as follows:

Level 1: Inputs are directly observable, quoted prices in active markets for identical assets or liabilities.

Level 2:    Inputs are other than quoted prices included within  Level 1 that  are for the asset or liability, either directly or indirectly. These inputs are derived from or corroborated by observable market data through correlation or by other means.

NOTE 3 – DEPOSITS AND INVESTMENTS (Continued)
Investments (Continued)

Level 3:	Inputs are unobservable inputs used only when relevant Level 1 and Level 2 inputs are unavailable.

The level in which an asset is assigned is not indicative of its quality but an indication of the source of valuation inputs.

The District’s investments were as follows at September 30, 2017:

Fair Value	Credit Rating	Maturities

U.S. Bank Commercial Paper	$	372,753	S&P A-1+	Open Ended

The fair value of Commercial Paper is measured at amortized cost and is exempt from the fair value hierarchy rules under GASB 72.

Credit risk – For investments, credit risk is generally the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Investment ratings by investment type are included in the preceding summary of investments.

Concentration risk – The District places no limit on the amount the District may invest in any one issuer.

Interest rate risk – The District does not have a formal policy that limits investment maturities as a means of managing exposure to fair value losses arising from increasing interest rates. However, the Bond Indenture limits the type of investments held using unspent proceeds.

NOTE 4 – CAPITAL ASSETS

Capital asset activity for the fiscal year ended September 30, 2017 was as follows:

Governmental activities
Capital assets, not being depreciated	Beginning
   Balance		
  Additions		
  Reductions 	Ending
     Balance		
Land and land improvements	  $1,963,413 	  $		  $		  $1,963,413 	
Total capital assets, not being depreciated	    1,963,413 	 		 		    1,963,413 	
Capital assets, being depreciated Water control and other	
    1,518,598 	

    1,518,598 	
Total capital assets, being depreciated	    1,518,598 	 		 		    1,518,598 	
Less accumulated depreciation for: Water control and other	
 	(448,631) 	
 	(37,965) 	
 		
 	(486,596)	
Total accumulated depreciation	 	(448,631) 	 	(37,965) 	 		 	(486,596)	
Total capital assets, being depreciated, net	    1,069,967 	 	(37,965) 	 		    1,032,002 	
Governmental activities capital assets, net	  $3,033,380 	$	(37,965)	$	$2,995,415	

Depreciation expense was charged to the maintenance and operations function.

NOTE 5 – LONG-TERM LIABILITIES

Special Assessment Refunding Bonds, Series 2014

On March 27, 2014, the District issued $5,940,000 of Special Assessment Refunding Bonds, Series 2014, with an interest rate of 3.94%. The bonds were used to refinance all of the outstanding Special Assessment Improvement Bonds, Series 2004A. Principal and interest are payable semiannually on May 1 and November 1, commencing November 1, 2014. The bonds mature on May 1, 2029.

The Series 2014 bonds are subject to redemption at the option of the District prior to maturity, in whole or in part and if in part such amounts as the District selects on any date on or after May 1, 2024 at the Redemption Price (expressed as percentages of the principal amount of such Series 2014 Bonds or portions thereof to be redeemed) of 100% of the principal amount to be redeemed together with accrued interest to the redemption date.

Notwithstanding the limitation on optional redemption set forth above 2014 Bonds may also optionally redeem 2014 Bonds maturing May 1, 2029 when special assessments exceed the debt service requirements for the year ending immediately preceding November 1st.

NOTE 5 – LONG-TERM LIABILITIES (Continued)

Special Assessment Refunding Bonds, Series 2014 (Continued)

Optional Redemption of 2014 Bonds:
Redemption
 	Date		Amount

November 1, 2015          $20,000
November 1, 2016          $20,000

The Bond Indenture established a debt service reserve requirement as well as other restrictions and requirements relating principally to the use of proceeds to pay for the infrastructure improvements and the procedures to be followed by the District on assessments to property owners. The District agrees to levy special assessments in annual amounts adequate to provide payment of debt service and to meet the reserve requirements. The District is in compliance with those requirements of the Bond Indenture at September 30, 2017.

Changes in the District’s long-term liabilities for the fiscal year ended September 30, 2017 were as follows:

Governmental activities Bonds payable;

Beginning
     Balance		 Additions	 Reductions 

Ending
     Balance	

Due Within
    One Year 

Series 2014	 $5,470,000	$	$ (270,000)	$5,200,000	$ 260,000

At September 30, 2017, the scheduled debt service requirements on the long-term debt were as follows:

Governmental Activities

Year Ending
  September 30:	 	Principal		 	Interest		 	Total	

2018	$	260,000	$	204,880	$	464,880	
2019	270,000	194,636	464,636	
2020	280,000	183,998	463,998	
2021	295,000	172,966	467,966	
2022	305,000	161,343	466,343	
2023-2027	1,720,000	616,019	2,336,019	
2028-2029	 	2,070,000 	 	147,750 	 	2,217,750 	
Total	   $ 5,200,000 	$ 1,681,592	$ 6,881,592	

NOTE 6 – DEFICIT NET POSITION

The District has a government-wide net position financial deficit of $1,778,627 as of September 30, 2017. The deficit in the government-wide statement of net position primarily relates to the excess of the amount of long-term debt outstanding over the amount of capital assets, net of accumulated depreciation. During prior years, various infrastructure improvements necessary to complete the District were financed through the issuance of long-term debt but were conveyed to other entities for maintenance. Those capital assets are not included in the assets of the District; however, the long-term debt associated with those assets remains a liability of the District.

NOTE 7 – MANAGEMENT COMPANY

The District has contracted with a management company to perform management advisory services, which include financial and accounting advisory services. Certain employees of the management company also serve as officers of the District. Under the agreement, the District compensates the management company for management, accounting, financial reporting, computer and other administrative costs.

NOTE 8 – RISK MANAGEMENT

The District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; and natural disasters. The District has obtained commercial insurance from independent third parties to mitigate the costs of these risks; coverage may not extend to all situations. Settled claims from these risks have not exceeded commercial insurance coverage over the past three years.

Florida Statues limit the District’s maximum loss for most liability claims to $200,000 per person and $300,000 per occurrence under the Doctrine of Sovereign Immunity. However, under certain circumstances, a plaintiff can seek to recover damages in excess of statutory limits by introducing a claims bill to the Florida Legislature. The limits addressed in Florida Statutes do not apply to claims filed in Federal courts.

Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual - General Fund
For the Year Ended September 30, 2017

Budgeted Amounts	
Actual	Variance -
Positive	
Original	Final	Amounts	(Negative)	
Revenues
Assessments	
$	97,098		
$ 96,665		
$	96,665		
$	
Interest	240		225		228		3	
Total revenues	97,338		96,890		96,893		3	
General government								
Current								
General government	91,838		81,802		73,521		8,281	
Maintenance	5,500		22,000		20,290		1,710	
Total general expenditures	97,338		103,802		93,811		9,991	
Excess of revenues over (under) expenditures	
  $			
  $	(6,912)		
3,082		
  $	9,994 	
Fund balance, beginning of the year					87,330			
Fund balance, end of the year					  $	90,412 			

Notes to the Budgetary
Required Supplementary Information (RSI) September 30, 2017

Note 1 - Basis of Accounting

Generally Accepted Accounting Principles (GAAP) serve as the budgetary basis of accounting.

Note 2 - Excess of expenditures over appropriations

Actual general fund expenditures did not exceed appropriations for the fiscal year.

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

To the Board of Supervisors
Palm Beach Plantation Community Development District Palm Beach County, Florida

We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements of the governmental activities and each major fund of the Palm Beach Plantation Community Development District (the “District”), as of and for the year ended September 30, 2017, and the related notes to the financial statements, which collectively comprise the District’s basic financial statements, and have issued our report thereon dated June 11, 2018.

Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the District’s, internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the District’s internal control. Accordingly, we do not express an opinion on the effectiveness of the District’s internal control.

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

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

Compliance and Other Matters
As part of obtaining reasonable assurance about whether the District’s financial statements are free 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.

West Palm Beach, Florida June 11, 2018

MANAGEMENT LETTER IN ACCORDANCE WITH THE RULES OF THE AUDITOR GENERAL
OF THE STATE OF FLORIDA

To the Board of Supervisors
Palm Beach Plantation Community Development District Palm Beach County, Florida

Report on the Financial Statements

We have audited the basic financial statements of the Palm Beach Plantation Community Development District (the “District”), as of and for the fiscal year ended September 30, 2017, and have issued our report thereon dated June 11, 2018.

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 Auditor General.

Other Reporting Requirements

We have issued our Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance with Government Auditing Standards and Independent Accountant’s Report on an examination conducted in accordance with AICPA Processional 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 11, 2018, 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. There were no findings or recommendations in the prior year that required corrective actions.

Official Title and Legal Authority

Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this Management Letter, unless disclosed in the notes to the financial statements. This information is disclosed in Note 1 to the financial statements.

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 the District has met one or more of the conditions described in Section 218.503(1), Florida Statutes, and to identify of the specific condition(s) met. In connection with our audit, we determined that the 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 the District. It is management’s responsibility to monitor the District’s financial condition, and our financial condition assessment was based in part on representations made by management and review of financial information provided by same. Our assessment was done as of the fiscal year end. The results of our procedures did not disclose any matters that are required to be reported.

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.

Annual Financial Report

Section 10.554(1)(i)5.b. 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 the annual financial report for the District for the fiscal year ended September 30, 2017, filed with the Florida Department of Financial Services pursuant to Section 218.32(1)(a), Florida Statutes, is in  agreement with the annual financial audit report for the fiscal year ended September 30, 2017. In connection with our audit, we determined that these two reports were in agreement.

Special District Component Units

Section 10.554(1)(i)5.d., Rules of the Auditor General, requires, if appropriate, that we communicate the failure of a special district that is a component unit of a county, municipality, or special district, to provide the financial information necessary for proper reporting of the component unit, within the audited financial statements of the county, municipality, or special district in accordance with Section 218.39(3)(b), Florida Statutes.

Based on the application of criteria in publications cited in Section 10.553, Rules of the Auditor General, there are no special district component units of the District and the District is not a component to any other entity.

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 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, 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.

West Palm Beach, Florida June 11, 2018

INDEPENDENT ACCOUNTANT’S REPORT

To the Board of Supervisors
Palm Beach Plantation Community Development District Palm Beach County, Florida

We have examined the Palm Beach Plantation Community Development District’s (the “District”) compliance with Section 218.415, Florida Statutes during the year ended September 30, 2017. Management of the District is responsible for the District’s compliance with the specified requirements. Our responsibility is to express an opinion on the District’s compliance with the specified requirements based on our examination.

Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether the District complied, in all material respects, with the specified requirements referenced above. An examination involves performing procedures to obtain evidence about whether the District complied with the specified requirements. The nature, timing, and extent of the procedures selected depend on our judgement, including an assessment of the risk of material noncompliance, whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion.

Our examination does not provide a legal determination on the District’s compliance with the specified requirements.

In our opinion, the District complied, in all material respects, with Section 218.415, Florida Statutes for the year ended September 30, 2017.

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

West Palm Beach, Florida June 11, 2018