Pine Ridge Plantation Community Development District

ANNUAL FINANCIAL REPORT

September 30, 2020

Pine Ridge Plantation Community Development District ANNUAL FINANCIAL REPORT
September 30, 2020 TABLE OF CONTENTS

Page Number

REPORT OF INDEPENDENT AUDITORS	1-2
MANAGEMENT’S DISCUSSION AND ANALYSIS	3-8
BASIC FINANCIAL STATEMENTS
Government-wide Financial Statements
Statement of Net Position	9
Statement of Activities	10
Fund Financial Statements
Balance Sheet – Governmental Funds	11
Reconciliation of Total Governmental Fund Balances
to Net Position of Governmental Activities	12
Statement of Revenues, Expenditures and Changes in
Fund Balances – Governmental Funds	13
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds
to the Statement of Activities	14
Statement of Revenues, Expenditures and Changes in Fund
Balances – Budget and Actual – General Fund	15
Notes to Financial Statements	16-30
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	31-32
MANAGEMENT LETTER	33-34
INDEPENDENT ACCOUNTANTS’ REPORT/COMPLIANCE WITH
SECTION 218.415, FLORIDA STATUTES	35

REPORT OF INDEPENDENT AUDITORS

To the Board of Supervisors
Pine Ridge Plantation Community Development District Clay County, Florida

Report on the Financial Statements

We have audited the accompanying basic financial statements of Pine Ridge Plantation Community Development District as of and for the year ended September 30, 2020, and the related notes to 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 an opinion 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. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
- 1 -

To the Board of Supervisors
Pine Ridge Plantation Community Development District

Opinion

In our opinion, the basic financial statements referred to above present fairly, in all material respects, the financial position of the governmental activities, and each major fund of Pine Ridge Plantation Community Development District as of September 30, 2020, and the respective changes in financial position and the budgetary comparison for the General Fund for the year then ended in conformity with accounting principles generally accepted in the United States of America.

Other Matters

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis 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 a report dated June 30, 2021 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.

compliance.

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

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

June 30, 2021

- 2 -

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

OVERVIEW OF THE 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 the governmental activities and the change in net position. Governmental activities are primarily supported by special assessments.

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.

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. Governmental activities financed by the District include general government, physical environment, culture and recreation and interest on long term debt.

Fund financial statements present financial information for governmental funds. 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.

OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)

Fund financial statements include a balance sheet and a statement of revenues, expenditures and changes in fund balances for all governmental funds. A statement of revenues, expenditures, and changes in fund balances – budget and actual is provided for the District’s General Fund. Fund financial statements provide more detailed information about the District’s activities. Individual funds are established by the District to track revenues that are restricted to certain uses or to comply with legal requirements.

The government-wide financial statements and the fund financial statements provide different pictures of the District. The government-wide financial statements provide an overall picture of the District’s financial standing. These statements are comparable to private-sector companies and give a good understanding of the District’s overall financial health and how the District paid for the various activities, or functions, provided by the District. All assets of the  District, including land and improvements are reported in the statement of net position. All liabilities, including principal outstanding on bonds are included. The statement of activities includes depreciation on all long-lived assets of the District, but transactions between the different functions of the District have been eliminated in order to avoid “doubling up” the revenues and expenses. The fund financial statements provide a picture of the major funds of the District. In the case of governmental activities, outlays for long-lived assets are reported as expenditures and long-term liabilities, such as special assessment bonds, are not included in the fund financial statements. To provide a link from the fund financial statements to the government- wide financial statements, reconciliation is provided from the fund financial statements to the government-wide financial statements.

Notes to financial statements provide additional detail concerning the financial activities and financial balances of the District. Additional information about the accounting practices of the District, investments of the District, capital assets and long-term debt are some of the items included in the notes to financial statements.

Financial Highlights

The following are the highlights of financial activity for the year ended September 30, 2020.

The District’s total liabilities exceeded total assets by $(5,533,426) (net position). Unrestricted net position for Governmental Activities was $(4,132,767). Net investment in capital assets $(1,439,871). Net position restricted was $39,212.

Governmental activities revenues totaled $1,515,565, while governmental activities expenses totaled $2,020,049.

OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)

Financial Analysis of the District

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

Net Position

Governmental Activities
	 	2020		 	2019		
Current assets	$	1,092,054	$	1,033,695	
Restricted assets	2,212,841	1,217,792	
Capital assets	 	3,444,382 	 	3,621,248 	
Total Assets	 	6,749,277 	 	5,872,735 	
Deferred Outflows of Resources	 	273,207 	 	- 	
Current liabilities	609,201	616,206	
Non-current liabilities	 	11,946,709 	 	10,285,471 	
Total Liabilities	 	12,555,910 	 	10,901,677 	
Net investment in capital assets	(1,439,871)	(1,536,212)	
Net position - restricted	39,212	575,331	
Net position - unrestricted	 	(4,132,767)	 	(4,068,061)	
Total Net Position	   $ (5,533,426)	  $	(5,028,942)	

The increase in current assets is mainly related to the increase in cash in the current year. The decrease in capital assets is primarily due to depreciation in the current year.
The increase in non-current liabilities and restricted assets is primarily due to the issuance of long-term debt in the current year.

OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)

Financial Analysis of the District (Continued)

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

Financial Activity

Program Revenues

Governmental  Activities

 	2020		2019

Charges for services General Revenues

$	1,488,089

$	1,490,854

Investment earnings	23,094	41,133	
Miscellaneous revenues	 	4,382 	 	8,688 	
Total Revenues	 	1,515,565 	 	1,540,675 	

Expenses			
General government	113,916	100,479	
Physical environment	270,003	250,096	
Culture and recreation	298,276	306,567	
Interest and other charges	 	1,337,854 	 	619,590 	
Total Expenses	 	2,020,049 	 	1,276,732 	
Change in Net Position	(504,484)	263,943	
Net Position - Beginning of Year	 	(5,028,942)	 	(5,292,885)	
Net Position - End of Year	  $	(5,533,426)	  $	(5,028,942)	

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

The increase in interest and other charges is related to the other debt service costs in the current year related to the issuance of long-term debt.

OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)

Capital Assets Activity

The following schedule provides a summary of the District’s capital assets as of September 30, 2020 and 2019.

Governmental Activities

 	2020		2019
 	
Description:
Infrastructure	$	2,810,596	$	2,810,596	
Buildings and improvements	2,325,000	2,325,000	
Equipment	21,864	21,864	
Accumulated depreciation	 	(1,713,078)	 	(1,536,212)	
Total	  $	3,444,382 	  $	3,621,248 	

During the year, depreciation was $176,866.

General Fund Budgetary Highlights

During the year, budgeted expenditures exceeded actual amounts primarily because facility assistant, capital reserve and water-usage expenditures were lower than anticipated.

The September 30, 2020 budget was not amended.

Debt Management

Governmental Activities debt includes the following:

In September 2006, the District issued $14,090,000 Series 2006A Capital Improvement Revenue Bonds. The Bonds are the first series of securities to be issued by the District and are being used to: (i) finance a portion of the Cost of the acquisition, construction, installation and equipping of certain Assessable Improvements and (ii) pay certain costs associated with the issuance of the Bonds. The balance outstanding for the Series 2006A B was paid off during the current year.

In September 2020, the District issued $9,545,000 Series 2020A-1 Senior Capital Improvement Revenue and Refunding Bonds and $2,890,000 2020A-2 Subordinate Capital Improvement Revenue and Refunding Bonds. These bonds were issued to refund and redeem the outstanding Series 2006A Capital Improvement Revenue Bonds and to finance improvements within the District. The balance outstanding of the Series 2020A-1 and Series 2020A-2 Bonds at September 30, 2020 was $9,545,000 and
$2,890,000, respectivley.

OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)

Economic Factors and Next Year’s Budget

Pine Ridge Plantation Community Development District does not expect any economic factors to have a significant effect on the financial position or results of operations of the District in fiscal year 2021.

Request for Information

The financial report is designed to provide a general overview of Pine Ridge Plantation Community Development District’s finances for all those with an interest. Questions concerning any of the information provided in this report or requests for additional information should be addressed to the Pine Ridge Plantation Community Development District, 475 West Towne Place, Suite 114, St. Augustine, Florida 32092.

Pine Ridge Plantation Community Development District	
STATEMENT OF NET POSITION	
September 30, 2020	

ASSETS	
Current Assets:	
Cash	
Investments	
Prepaid expenses	
Total Current Assets	
Non-Current Assets:	
Restricted assets:	
Investments	
Capital assets being depreciated:	
Infrastructure	
Buildings and improvements	
Equipment	
Accumulated depreciation	
Total Non-Current Assets	
Total Assets	

Governmental	
Activities	

$	181,460	
892,191	
 	18,403 	
 	1,092,054 	

2,212,841	
2,810,596	
2,325,000	
21,864	
 	(1,713,078)	
 	5,657,223 	
 	6,749,277 	

DEFERRED OUTFLOWS OF RESOURCES		
Deferred amount on refunding	 	273,207 	

LIABILITIES		
Current Liabilities:		
Accounts payable and accrued expenses	22,849	
Accrued interest	1,352	
Bonds payable	 	585,000 	
Total Current Liabilities	 	609,201 	
Non-Current Liabilities:		
Bonds payable, net	 	11,946,709 	
Total Liabilities	 	12,555,910 	

NET POSITION		
Net investment in capital assets	(1,439,871)	
Restricted for debt service	39,212	
Unrestricted	 	(4,132,767)	
Total Net Position	  $	(5,533,426)	

Pine Ridge Plantation Community Development District	
STATEMENT OF ACTIVITIES	
For the Year Ended September 30, 2020	

$	(113,916)	
(270,003)	
(298,276)	
 	(1,337,854)	
  $ (2,020,049)	

$	128,691	
170,486	
243,908	
 	945,004 	
  $	1,488,089 	

$	14,775	
(99,517)	
(54,368)	
 	(392,850)	
(531,960)	

General revenues:	
Investment earnings	
Miscellaneous revenues	
Total General Revenues	

23,094	
4,382	
 	27,476 	

Net (Expense)	
Revenues and	
Changes in	
Net Position	
Governmental	
Activities	

Program	
Revenues	
Charges for	
Services	

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

Expenses

Change in Net Position	(504,484)

Net Position - October 1, 2019	 	(5,028,942)	
Net Position - September 30, 2020    $	(5,533,426)	

Pine Ridge Plantation Community Development District	
BALANCE SHEET –	
GOVERNMENTAL FUNDS	
September 30, 2020	

Total	
Governmental	
Funds	

General	Debt	Capital	
Fund	Service	Projects	

Cash	
Investments	
Prepaid expenses	
Restricted assets:	
Investments, at fair value	
Total Assets	

$	53,256	
691,904	
18,403	

$	-	
-	
-	

$ 128,204	
200,287	
-	

$	181,460	
892,191	
18,403	

ASSETS

-		329,257	1,883,584		2,212,841	
  $		763,563 	  $		329,257 	  $2,212,075 	  $ 	3,304,895 	

LIABILITIES AND FUND BALANCES

LIABILITIES

Accounts payable and accrued expenses

$	21,639	$

-	$	1,210	$

22,849

FUND BALANCES

Nonspendable-prepaids	
Restricted:	
Debt service	
Capital projects	
Assigned-capital projects	
Unassigned	
Total Fund Balance	

18,403	-	-	18,403

-	329,257	-	329,257	
-	-	1,883,584	1,883,584	
-	-	327,281	327,281	
723,521	-	-	723,521	

741,924	329,257	
2,210,865	3,282,046	

Total Liabilities and Fund Balances	  $	763,563       $	329,257 $2,212	

See accompanying notes to financial statements.

- 11 -

,075 

  $ 3,304,895 

Pine Ridge Plantation Community Development District	
RECONCILIATION OF TOTAL GOVERNMENTAL FUND BALANCES	
TO NET POSITION OF GOVERNMENTAL ACTIVITIES	
September 30, 2020	

Total Governmental Fund Balances	$

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

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

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

3,282,046

Capital assets being depreciated, infrastructure, $2,810,596, buildings		
and improvements, $2,325,000, and equipment, $21,864, less accumulated depreciation, $(1,713,078), used in governmental activities are not financial resources and therefore, are not reported in the funds.	

3,444,382	

Long-term liabilities, including bonds payable, $(12,435,000), and bond	
premium, net, $(96,709), are not due and payable in the current period	
and therefore, are not reported at the fund level.	(12,531,709)	

273,207

(1,352)

Net Position of Governmental Activities	 $	(5,533,426)

See accompanying notes to financial statements.
- 12 -

Pine Ridge Plantation Community Development District	
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES –	
GOVERNMENTAL FUNDS	
For the Year Ended September 30, 2020	

Revenues:	
Special assessments	
Investment earnings	
Miscellaneous revenues	
Total Revenues	

$	945,004	
13,327	
 	- 	
 	958,331 	

$	1,488,089	
23,094	
 	4,382 	
 	1,515,565 	

Expenditures:	
Current	
General government	
Physical environment	
Culture and recreation	
Debt service	
Principal	
Interest	
Other debt service	
Total Expenditures	

113,916	
150,913	
215,905	

-	
-	
-	

-	
21,910	
2,685	

113,916	
172,823	
218,590	

Total	
Governmental	
 	Funds		

Debt	
 	Service		

Capital	
 	Projects		

$	543,085	
9,439	
 	4,382 	
 	556,906 	

$	-	
328	
 	- 	
 	328 	

 	General	

-	
-	
 	- 	
 	480,734 	

10,660,000	
574,695	
 	629,791 	
    11,864,486 	

-	
-	
 	630,546 	
 	655,141 	

10,660,000	
574,695	
 	1,260,337 	
 	13,000,361 	

Revenues over/(under) expenditures	 	76,172       (10,906,155) 	(654,813) 	(11,484,796)

Other Financing Sources/(Uses)	
Issuance of long-term debt	
Bond premium	
Transfers in	
Transfers out	
Total Other Financing Sources/(Uses)	

-	10,017,579	2,417,421	12,435,000	
-	-	96,709	96,709	
-	4,494	35,001	39,495	
 	(35,000)	 	(1)	 	(4,494)     		(39,495)	
 	(35,000)	    10,022,072 	     2,544,637      		12,531,709 	

41,172	(884,083)	1,889,824	1,046,913	

Net change in fund balances

Fund Balances - October 1, 2019	 	700,752 	1,213,340 	321,041 	2,235,133 

  $	741,924 	  $	329,257 	  $ 2,210,865 	  $	3,282,046 	

Fund Balances - September 30, 2020

See accompanying notes to financial statements.
- 13 -

Pine Ridge Plantation Community Development District	
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND	
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE	
STATEMENT OF ACTIVITIES	
For the Year Ended September 30, 2020	

Net Change in Fund Balances - Total Governmental Funds

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

$ 1,046,913

Governmental funds report capital outlays as expenditures. However, in the	
Statement of Activities, the cost of those assets is allocated over their estimated	
useful lives as depreciation. This is the amount of depreciation in the current year.	

(176,866)

The issuance of long-term debt is recognized as an other financing source at the	
fund level. At the government-wide level it is reflected as an increase in	
long-term liabilities.	

Deferred amount on refunding is recognized as other debt service costs at the fund	
level, however, at the government-wide level it is recognized as a deferred outflow	
of resources an amortized as interest over the life of the bonds.	

(12,435,000)

Bond premium associated with the issuance of long-term debt, is a reduction in an	
other financing source at the fund level, but at the government-wide level it is	
included in long-term liabilities.	

258,678

(96,709)

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

10,660,000

In the Statement of Activities, interest is accrued on outstanding bonds;		
whereas in governmental funds, interest expenditures are reported when		
due. This is the change in accrued interest during the current period.	 	238,500 	

Change in Net Position of Governmental Activities	 $	(504,484)

See accompanying notes to financial statements.

Pine Ridge Plantation Community Development District	
STATEMENT OF REVENUES, EXPENDITURES AND	
CHANGES IN FUND BALANCES – BUDGET AND ACTUAL –	
GENERAL FUND	
For the Year Ended September 30, 2020	

Variance with	
Final Budget	
Positive	
(Negative)	

Original	
Budget	

Final	
Budget	

Actual

Revenues	
Special assessments	
Investment income	
Other income	
Total Revenues	

 	
$ 537,569	
1,500	
 	3,000 	
 	542,069 	

 
$ 537,569	
1,500	
 	3,000 	
 	542,069 	

 

$ 543,085	
9,439	
 	4,382 	
 	556,906 	

 
$	5,516	
7,939	
 	1,382 	
 	14,837 	

Expenditures	
Current	
General government	
Physical environment	
Culture and recreation	
Total Expenditures	

119,252	
210,251	
 	251,146 	
 	580,649 	

119,252	
210,251	
 	251,146 	
 	580,649 	

113,916	
150,913	
 	215,905 	
 	480,734 	

5,336	
59,338	
 	35,241 	
 	99,915 	

Revenues over/(under) expenditures	(38,580)	(38,580)	76,172	114,752

Other Financing Sources/(Uses)	
Transfers out	

 	-	 	-	 	(35,000)	 	(35,000)

Net change in fund balances	(38,580)	(38,580)	41,172	79,752

 	38,580 	
  $	- 	

Fund Balances - October 1, 2019	 	38,580	 	700,752	 	662,172 

Fund Balances - September 30, 2020

  $	- 

  $ 741,924 

  $	741,924 

 	 

See accompanying notes to financial statements.

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.

Reporting Entity

The District was established on March 8, 2006, pursuant to Clay County Ordinance Number 2006-05 and Chapter 190, Florida Statutes. 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 outside the boundaries of the Pine Ridge Plantation Community Development District. The District is governed by a five-member Board of Supervisors who are elected for four year terms. The District operates within the criteria established by Chapter 190.

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

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

Measurement Focus and Basis of Accounting

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

Government-wide financial statements

Fund financial statements

Notes to financial statements

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Measurement Focus and Basis of Accounting (Continued)

Government-wide Financial Statements

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

Governmental activities are supported by special assessments and interest. Program revenues include charges for services and payments made by parties outside of the reporting government’s citizenry if that money is restricted to a particular program. Program revenues are netted with program expenses in the Statement of Activities to present the net cost of each program.

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

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

Fund Financial Statements

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

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

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

2.	Measurement Focus and Basis of Accounting (Continued)

b. Fund Financial Statements (Continued) Governmental Funds
The District classifies fund balance according to Governmental Accounting Standards Board Statement 54 – Fund Balance Reporting and Governmental Fund Type Definitions. The Statement requires the fund balance for governmental funds to be reported in classifications that comprise a hierarchy based primarily on the extent to which the government is bound to honor constraints on the specific purposes for which amounts in those funds can be spent.

The 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.

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

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

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

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Measurement Focus and Basis of Accounting (Continued)

b. Fund Financial Statements (Continued) Governmental Funds (Continued)
Expenditures generally are recorded when a liability is incurred, as under accrual accounting. Interest associated with the current fiscal period is considered to be an accrual item and so has been recognized as revenue of the current fiscal period. Revenues are considered to be available when they are collected within the current period or soon thereafter to pay liabilities of the current period. 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.

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 current assets. Accordingly, they are said to present a summary of sources and uses of “available spendable resources” during a period.

Because of their spending measurement focus, expenditure recognition for governmental fund types excludes amounts represented by non-current liabilities. Since they do not affect net current assets, such long-term amounts are not recognized as governmental fund type expenditures or fund liabilities.

Amounts expended to acquire capital assets are recorded as expenditures in the year that resources are expended, rather than as fund assets. The proceeds of long-term debt are recorded as an other financing source rather than as a fund liability.

Debt service expenditures are recorded only when payment is due.

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Basis of Presentation

Governmental Major Funds

General Fund – The General Fund is the District’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund.

Debt Service Fund – Accounts for debt service requirements to retire the capital improvement bonds which were used to refund and retire an existing bond and finance the construction of District infrastructure improvements. The bond series is secured by a pledge of all available special assessment revenues in any fiscal year related to the improvements and a first lien on the special assessment revenues from the District’s liens on all benefited land within the District.

Capital Projects Fund – Accounts for monies the Board has set aside for capital improvements and the construction of capital improvements within the District.

Non-Current Governmental Assets/Liabilities

GASB Statement 34 requires that non-current governmental assets, such as land and buildings, and non-current governmental liabilities, such as general obligation bonds, be reported in the governmental activities column in the government-wide Statement of Net Assets.

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Assets, Liabilities, and Net Position or Equity

Cash and Investments

Florida Statutes require state and local governmental units to deposit monies with financial institutions classified as "Qualified Public Depositories," a multiple financial institution pool whereby groups of securities pledged by the various financial institutions provide common collateral from their deposits of public funds. This pool is provided as additional insurance to the federal depository insurance and allows for additional assessments against the member institutions, providing full insurance for public deposits.

The District is authorized to invest in those financial instruments as established by Section 218.415, Florida Statutes. The authorized investments consist of:

Direct obligations of the United States Treasury;

The Local Government Surplus Funds Trust or any intergovernmental investment pool authorized pursuant to the Florida Interlocal Cooperative Act of 1969;

Interest-bearing time deposits or savings accounts in authorized qualified public depositories;

Securities and Exchange Commission, registered money market funds with the highest credit quality rating from a nationally recognized rating agency.

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 Section 280.02, Florida Statutes.

Restricted Net Position

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

Capital Assets

Capital assets, which include infrastructure, buildings and improvements and equipment, are reported in governmental activities.

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

4. Assets, Liabilities, and Net Assets or Equity (Continued)

Capital Assets (Continued)

The District defines capital assets as assets with an initial, individual cost of $5,000 or more and an estimated useful life in excess of one year. The valuation basis for all assets is historical cost.

The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend its useful life are not capitalized.

Major outlays for capital assets and improvements are capitalized as projects are constructed.

Depreciation of capital assets is computed and recorded by utilizing the straight-line method. Estimated useful lives of the various classes of depreciable capital assets are as follows:

Buildings and improvements		30 years Infrastructure	15-30 years
Equipment	10 years

Unamortized Bond Premiums

Bond premiums associated with the issuance of revenue bonds are amortized according to the straight-line method of accounting. For financial reporting, unamortized bond premiums are netted with the applicable long-term debt.

Budgets

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

Deferred Outflow of Resources

Deferred outflow of resources is the consumption of net position by the government that is applicable to a future reported period. Deferred amount on refunding is amortized and recognized as a component of interest expense over the life of the bond.

NOTE	B	–		RECONCILIATION	OF	GOVERNMENT-WIDE	AND	FUND	FINANCIAL STATEMENTS
Explanation of Differences Between the Governmental Fund Balance Sheet and the Government-wide Statement of Net Position
“Total fund balances” of the District’s governmental funds, $3,282,046, differs from “net position” of governmental activities, $(5,533,426), reported in the Statement of Net Position. This difference primarily results from the long-term economic focus of the Statement of Net Position versus the current financial resources focus of the Governmental Fund Balance Sheet. The effect of the differences is illustrated below.
Capital related items
When capital assets (buildings and improvements, infrastructure, and equipment) that are to be used in governmental activities are purchased or constructed, the cost of those assets is reported as expenditures in governmental funds. However, the Statement of Net Position included those capital assets among the assets of the District as a whole.

Infrastructure	$	2,810,596	
Buildings and improvements	2,325,000	
Equipment	21,864	
Accumulated depreciation	 	(1,713,078)	
Total
Deferred outflow of resources	$	3,444,382 	
Deferred outflow of resources applicable	to the District’s governmental activities are not	
current financial resources and therefore, are not reported as fund deferred outflow of resources:

Deferred amount on refunding	$	273,207
Long-term debt transactions

Long-term liabilities applicable to the District’s governmental activities are not due and payable in the current period and accordingly are not reported as fund liabilities.  All liabilities (both current and long-term) are reported in the Statement of Net Position. Balances at September 30, 2020 were:

Bonds payable	$ (12,435,000)	
Bond premium, net	 	(96,709)	
Total	$ (12,531,709)	

Accrued interest
Accrued liabilities in the Statement of Net Position differ from the amount reported in governmental funds due to the accrued interest on bonds.
Accrued interest	$	(1,352)

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

Explanation of Differences Between the Governmental Fund Operating Statements and the Statement of Activities

The “net change in fund balances” for government funds, $1,046,913, differs from the “change in net position” for governmental activities, $(504,484), reported in the Statement of Activities. The differences arise primarily from the long-term economic focus of the Statement of Activities versus the current financial resources focus of the governmental funds. The effect of the differences is illustrated below.

Capital related items

When capital assets that are to be used in governmental activities are purchased or constructed, the resources expended for those assets are reported as expenditures in governmental funds. However, in the Statement of Activities, the costs of those assets is allocated over their estimated useful lives and reported as depreciation. As a result, fund balances decrease by the amount of financial resources expended, whereas net position decrease by the amount of depreciation charged for the period.

Depreciation	$	(176,866)

Long-term debt transactions

When long-term debt is issued for governmental activities, the resources obtained are recognized as an other financing source at the fund level. At the government-wide level, however, the new debt increases non-current liabilities.

Repayments of bond principal are reported as an expenditure in the governmental funds
and, thus, have the effect of reducing have been used.	fund	balance	because	current financial resources	
Issuance of long-term debt				$ (12,435,000)	
Bond premium				$	(96,709)	
Bond principal payments				$	10,660,000	

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

Change in accrued interest	$	238,500

Deferred amount on refunding	$	258,678

NOTE C – CASH AND INVESTMENTS

All deposits are held in qualified public depositories and are included on the accompanying balance sheet as cash and investments.

Custodial Credit Risk – Deposits

Custodial credit risk is the risk that in the event of a bank failure, the District's deposits may not be returned to it. The District does not have a formal deposit policy for custodial credit risk, however, they follow the provisions of Chapter 280, Florida Statutes regarding deposits and investments. As of September 30, 2020, the District's bank balance was $188,460 and the carrying value was $181,460. Exposure to custodial credit risk was as follows. The District maintains all deposits in a qualified public depository in accordance with the provisions of Chapter 280, Florida Statutes, which means that all deposits are fully insured by Federal Depositors Insurance or collateralized under Chapter 280, Florida Statutes.

As of September 30, 2020, the District had the following investments and maturities:

Investment	Maturities	Fair Value

U S Bank Managed Money Market	N/A	$	1,527	
First American Treasury Obligation	46 days*	2,212,841	
Local Government Surplus
Trust Fund Prime Fund	
37 days*	
 	890,664 	

Total	 $	3,105,032 

* Weighted Average Maturity

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

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

The investments in the First American Treasury Obligation Fund and U S Bank Managed Money Market are level 1 assets.

NOTE C – CASH AND INVESTMENTS (CONTINUED)

Investments

The District’s investment policy allows management to invest funds in investments permitted under Section 218.415, Florida Statutes. Among other investments, the policy allows  the District to invest in the State Board of Administration Local Government Surplus Trust Funds.

Cash placed with the State Board of Administration represents the District’s participation in the Local Government Surplus Trust Funds Investment Pool and is reported at fair value. As a pool participant, the District invests in pools of investments in which shares are owned in the pool rather than the underlying investments.

Interest Rate Risk

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

Credit Risk

The District's investments in treasury funds and government loans are limited by state statutory requirements and bond compliance. The Local Government Surplus Funds Trust is an authorized investment under Section 218.415, Florida Statutes. The District's investments in  the state investment pool are limited by state statutory requirements and bond compliance. The District has monies invested with the Local Government Surplus Funds Trust Fund (Fund), at September 30, 2020. The Fund met the requirements of a “2a-7 like pool” as defined in Government Accounting Standards Board, Statement 31. The District has no investment policy that would further limit its investment choices.

Concentration of Credit Risk

The District places no limit on the amount it may invest in any one fund. The District's investments in the First American Treasury Obligation Fund Class D are 71% of the District’s total investments. The District’s investments in the State Board Administration Local Government Surplus Trust Fund are 29% of the District’s investments. The District also has less than 1% of investments in the U S Bank Money Market Managed.

The types of deposits and investments and their level of risk exposure as of September 30, 2020 were typical of these items during the fiscal year then ended. The District's investment in the Local Government Surplus Prime Fund and First American Treasury Obligations were rated AAAm by Standard & Poor's. The District considers any decline in fair value for certain investments to be temporary.

NOTE D – SPECIAL ASSESSMENT REVENUES

Assessments are non-ad valorem assessments on benefitted property within the District. Operating and Maintenance Assessments are based upon adopted budget and levied annually. 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 mailed by County Tax Collector on November 1 and due on or before March 31 of each year. Property owners may prepay a portion or all of the Debt Service Assessments on their property subject to various provisions in the bond documents.

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.

NOTE E – CAPITAL ASSETS

Capital Asset activity for the year ended September 30, 2020 was as follows:

	Balance
October 1,	Balance
September 30,	

Governmental Activities:	 	2019		  Additions    Deletions 	2020		
Capital assets, being depreciated:
Infrastructure	
$	2,810,596	
$	-	$	-	$	2,810,596	
Buildings and improvements	2,325,000	-	-	2,325,000	
Equipment	 	21,864	 	- 	- 	21,864	
Total Capital Assets, Being Depreciated	 	5,157,460	 	- 	- 	5,157,460	
Less accumulated depreciation for: Infrastructure	
(828,479)	
(97,180)	-	(925,659)	
Buildings and improvements	(696,111)	(77,500)	-	(773,611)	
Equipment	 	(11,622)	 	(2,186) 	- 	(13,808)	
Total Accumulated Depreciation	 	(1,536,212)	 	(176,866) 	- 	(1,713,078)	
Governmental Activities Capital Assets	   $	3,621,248	   $ (176,866)    $	-      $	3,444,382	

Depreciation of $97,180 was charged to physical environment and $79,686 was charged to culture/recreation.

NOTE F – LONG-TERM DEBT		
The following is a summary of long-term debt activity September 30, 2020.	for	the	District for the year ended	
Long-term debt at October 1, 2019			$	10,660,000	
Issuance of long-term debt			12,435,000	
Principal payments			 	(10,660,000)	
Long-term debt at September 30, 2020			$	12,435,000	
Plus: bond premium			 	96,709	
Bonds payable, net at September 30, 2020			$	12,531,709	
Long-term debt for Governmental Activities is comprised of the following:		
Capital Improvement Revenue and Refunding Bonds		
$9,545,000	Series	2020A-1	Senior	Capital	Improvement		
Revenue and Refunding Bonds are due in annual principal		
installments beginning May 2021 maturing May 2037. Interest at		
various rates between 2% and 3% is due May and November		
beginning November 2020. Current portion is $455,000.	$	9,545,000	
$2,890,000 Series 2020A-2 Subordinate Capital Improvement		
Revenue and Refunding Bonds are due in annual principal		
installments beginning May 2021 and maturing May 2037.		
Interest at various rates between 2.75% and 3.75% is due May		
and November beginning November 2020. Current portion is		
$130,000.	 	2,890,000	
Bonds Payable	$	12,435,000	

In September 2020, the District issued $9,545,000 Series 2020A-1 Senior Capital Improvement Revenue and Refunding Bonds and $2,890,000 2020A-2 Subordinate Capital Improvement Revenue and Refunding Bonds, which retired the Series 2006A Capital Improvement Revenue Bonds. The current refunding of the Series 2006A Capital Improvement Revenue Bonds resulted in a deferred amount on refunding of $273,207. As a result of this transaction, the District decreases its aggregate debt payment by $1,480,746 over the next 16 years and realized an economic loss of approximately $893,595.

NOTE F – LONG-TERM DEBT (CONTINUED)

The annual requirements to amortize the principal and interest of bonded debt outstanding as of September 30, 2020 are as follows:

Year Ending
   September 30, 	
 	Principal		
 	Interest		
 	Total		
2021	$	585,000	$	210,315	$	795,315	
2022	605,000	322,298	927,298	
2023	620,000	304,485	924,485	
2024	640,000	286,235	926,235	
2025	660,000	267,385	927,385	
2026-2030	3,525,000	1,107,738	4,632,738	
2031-2035	4,015,000	632,000	4,647,000	
2036-2037	 	1,785,000 	 	81,638 	 	1,866,638 	
Totals	  $ 12,435,000 	  $ 3,212,094 	  $ 15,647,094 	

Summary of Significant Bonds Resolution Terms and Covenants

Capital Improvement Revenue and Refunding Bonds

Significant Bond Provisions

The Series 2020 Bonds are subject to redemption at the option of the District prior to their maturity, in whole or in part, at any time after May 1, 2030 at a redemption price set forth in the Trust Indenture. The Series 2020 are subject to extraordinary mandatory redemption prior to maturity in the manner determined by the Bond Registrar if certain events occurred as outlined in the Trust Indenture.

The Trust Indenture established certain amounts be maintained in a reserve account. In addition, the Trust Indenture has certain 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.

NOTE F – LONG-TERM DEBT (CONTINUED)

Depository Funds

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

Reserve Fund – The Series 2020A-1 Reserve requirement is an amount equal to 50 percent the maximum annual debt service of the Series 2020A-1 Bonds. The Series 2020A-1 Reserve Account was funded as 50 percent of the requirement from the proceeds of the Series 2020A-1 Bonds and 50 percent the requirement is satisfied by the Reserve Insurance Policy. The Series 2020A-2 Reserve Account was funded from the proceeds of the Series 2020A-2 Bonds an amount equal to 50 percent of the maximum annual debt service of the Series 2020A-2 Bonds. Monies held in the reserve accounts will be used only for the purposes established in the Trust Indenture.

The following is a schedule of required reserve deposits as of September 30, 2020:

Reserve	Reserve
 Capital Improvement Revenue and Refunding		 Balance	Requirement

Series 2020A-1 (Senior Bond)	$ 173,593	$ 173,593	
Series 2020A-2 (Subordinate Bond)	$ 115,100	$ 115,100	

NOTE G – INTERFUND ACTIVITY

Interfund transfers for the year ended September 30, 2020, consisted of the following:

		Transfers Out			
	
General	Debt
Service	Capital
Projects		
 Transfers In			Fund	Fund	Fund		Total	
Debt Service Fund		$	-	
$	-	$	4,494		$	4,494	
Capital Projects Fund		35,000	1	-		35,001	
Total		$ 35,000	$	1	$	4,494		$ 39,495	

Interfund transfers in the current year were made to increase capital reserves and debt service transfers were in accordance with the Trust Indenture.

NOTE H – 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. The District has not filed any claims under this commercial coverage during the last three years.

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
Pine Ridge Plantation 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 of Pine Ridge Plantation Community Development District, as of and for the year ended September 30, 2020, and the related notes to the financial statements, and have issued our report thereon dated June 30, 2021.

Internal Control Over Financial Reporting

In planning and performing our audit, we considered Pine Ridge Plantation 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 Pine Ridge Plantation Community Development District’s internal control. Accordingly, we do not express an opinion on the effectiveness of Pine Ridge  Plantation 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 may exist that have not been identified.

- 31 -

To the Board of Supervisors
Pine Ridge Plantation Community Development District

Compliance and Other Matters

As part of obtaining reasonable assurance about whether Pine Ridge Plantation 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 30, 2021

- 32 -

MANAGEMENT LETTER

To the Board of Supervisors
Pine Ridge Plantation Community Development District Clay County, Florida
Report on the Financial Statements

We have audited the financial statements of the Pine Ridge Plantation Community Development District as of and for the year ended September 30, 2020, and have issued our report thereon dated June 30, 2021.
Auditor’s Responsibility

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

We have issued our Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards and our Independent Auditor’s Report on an examination conducted in accordance with AICPA Professionals Standards, AT-C Section 315 regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in that report, which is dated June 30, 2021, 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 preceding financial audit report.
.
Financial Condition and Management

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

- 33 -

To the Board of Supervisors
Pine Ridge Plantation Community Development District

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, 2020 for Pine Ridge Plantation Community Development District. It is management’s responsibility to monitor the Pine Ridge Plantation 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.

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 which warrants the attention of those charged with governance. In connection with our audit, we did not have any findings or recommendations.

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 30, 2021

- 34 -

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

To the Board of Supervisors
Pine Ridge Plantation Community Development District Clay County, Florida

We have examined Pine Ridge Plantation Community Development District's compliance with Section 218.415, Florida Statutes during the year ended September 30, 2020. Management is responsible for Pine Ridge Plantation Community Development District’s compliance with those requirements. Our responsibility is to express an opinion on Pine Ridge Plantation 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 Pine Ridge Plantation 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 Pine Ridge Plantation Community Development District’s compliance with the specified requirements.

In our opinion, Pine Ridge Plantation Community Development District complied, in all material respects, with the aforementioned requirements during the year ended September 30, 2020.

Berger, Toombs, Elam, Gaines & Frank Certified Public Accountants PL
Fort Pierce, Florida June 30, 2021

- 35 -