Sandmine Road 

Community Development District 



ANNUAL FINANCIAL REPORT 



September 30, 2022 




Sandmine Road Community Development District 

 

ANNUAL FINANCIAL REPORT 

 

September 30, 2022 

 

 TABLE OF CONTENTS 

 

 Page 

 Number 

 

REPORT OF INDEPENDENT AUDITORS 1-3 

 

MANAGEMENT’S DISCUSSION AND ANALYSIS 4-9 

 

BASIC FINANCIAL STATEMENTS: 

 Government-wide Financial Statements: 

 Statement of Net Position 10 

 Statement of Activities 11 

 Fund Financial Statements: 

 Balance Sheet – Governmental Funds 12 

 Reconciliation of Total Governmental Fund Balances 

 to Net Position of Governmental Activities 13 

 Statement of Revenues, Expenditures and Changes in Fund 

 Balances – Governmental Funds 14 

 Reconciliation of the Statement of Revenues, Expenditures 

 and Changes in Fund Balances of Governmental Funds 

 to the Statement of Activities 15 

 Statement of Revenues, Expenditures and Changes in Fund 

 Balances – Budget and Actual – General Fund 16 

 

 Notes to Financial Statements 17-29 

 

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 30-31 

 

MANAGEMENT LETTER 32-34 

 

INDEPENDENT ACCOUNTANTS’ REPORT/COMPLIANCE WITH 

 SECTION 218.415, FLORIDA STATUTES 35 

 

 

 

 

 


 

 

 

 

 

 

 

 

REPORT OF INDEPENDENT AUDITORS 

 

 

To the Board of Supervisors 

Sandmine Road Community Development District 

Polk County, Florida 

 

 

Report on Audit of the Financial Statements 

 

Opinion 

 

We have audited the financial statements of the governmental activities and each major fund of 
Sandmine Road Community Development District (the “District”), as of and for the year ended 
September 30, 2022, and the related notes to financial statements, which collectively comprise 
the District’s basic financial statements as listed in the table of contents. 

 

In our opinion, the accompanying financial statements present fairly, in all material respects, the 
respective financial position of the governmental activities and each major fund of Sandmine Road 
Community Development District as of September 30, 2022, and the respective changes in 
financial position and the budgetary comparison for the General Fund for the year then ended in 
accordance with accounting principles generally accepted in the United States of America. 

 

Basis for Opinion 

 

We conducted our audits in accordance with auditing standards generally accepted in the United 
States of America (GAAS), and the standards applicable to financial audits contained in 
Government Auditing Standards, issued by the Comptroller General of the United States. Our 
responsibilities under those standards are further described in the Auditor’s Responsibilities for 
the Audit of the Financial Statements section of our report. We are required to be independent of 
the District and to meet our other ethical responsibilities, in accordance with the relevant ethical 
requirements relating to our audits. We believe that the audit evidence we have obtained is 
sufficient and appropriate to provide a basis for our audit opinion. 

 

Responsibilities of Management for the Financial Statements 

 

Management is responsible for the preparation and fair presentation of these financial statements 
in accordance with accounting principles generally accepted in the United States of America; and 
for the design, implementation, and maintenance of internal control relevant to the preparation 
and fair presentation of financial statements that are free from material misstatement, whether 
due to fraud or error. 

 


To the Board of Supervisors 

Sandmine Road Community Development District 

 

 

In preparing the financial statements, management is required to evaluate whether there are 
conditions or events, considered in the aggregate, that raise substantial doubt about the District’s 

ability to continue as a going concern for one year beyond the financial statement date, including 
currently known information that may raise substantial doubt thereafter. 

 

Auditor’s Responsibility for the Audit of the Financial Statements 

 

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

 

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

 

• Exercise professional judgement and maintain professional skepticism throughout the 
audit. 
• Identify and assess the risks of material misstatement of the financial statements, whether 
due to fraud or error, and design and perform audit procedures responsive to those risks. 
Such procedures include examining on a test basis, evidence regarding the amounts and 
disclosures in the financial statements. 
• Obtain an understanding of internal control relevant to the audit in order to design audit 
procedures that are appropriate in the circumstances, but not for the purpose of 
expressing an opinion on the effectiveness of the District’s internal control. Accordingly, 
no such opinion is expressed. 
• Evaluate the appropriateness of accounting policies used and the reasonableness of 
significant accounting estimates made by management, as well as evaluate the overall 
presentation of the financial statements. 
• Conclude whether, in our judgement, there are conditions or events, considered in the 
aggregate, that raise substantial doubt about the District’s ability to continue as a going 
concern for a reasonable period of time. 


 

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

 


To the Board of Supervisors 

Sandmine Road Community Development District 

 

 

Required Supplementary Information 

 

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

 

Other Reporting Required by Government Auditing Standards 

 

In accordance with Government Auditing Standards, we have also issued a report dated July 31, 
2023 on our consideration of the District’s internal control over financial reporting and on our tests 
of its compliance with certain provisions of laws, regulations and contracts. 

 

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

 

 

 

 

 

Berger, Toombs, Elam, Gaines & Frank 

Certified Public Accountants PL 

Fort Pierce, Florida 

 

July 31, 2023 


Management’s discussion and analysis of Sandmine Road 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 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. 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 and debt service. 

 

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 construction in progress, are reported in the statement of net position. All liabilities, 
including principal outstanding on bonds are included. In the statement of activities, 
transactions between the different functions of the District have been eliminated in order to 
avoid “doubling up” the revenues and expenses. The fund financial statements provide a 
picture of the major funds of the District. In the case of governmental activities, outlays for long 
lived assets are reported as expenditures and long-term liabilities, such as general obligation 
bonds, are not included in the fund financial statements. To provide a link from the fund 
financial statements to the government-wide financial statements, reconciliation is provided from 
the fund financial statements to the government-wide financial statements. 

 

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

 

Financial Highlights 

 

The following are the highlights of financial activity for the year ended September 30, 2022. 

 

. The District’s total assets exceeded total liabilities by $184,354 (net position). Restricted 
net position was $206,063 and unrestricted net position was $(21,709). 


 

. Governmental activities revenues totaled $992,502 while governmental activities 
expenses totaled $949,081. 


 

 

 


OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED) 

 

Financial Analysis of the District 

 

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

 

 

The increase in restricted assets is related to the issuance of long-term debt in the current year. 

 

20222021Current assets43,754$ 21,772$ 
Restricted assets6,542,070 299,712 
Capital assets, net9,833,590 8,449,677 
Total Assets 16,419,414 8,771,161 
Current liabilities508,999 244,665 
Non-current liabilities15,726,061 8,385,563 
Total Liabilities16,235,060 8,630,228 
Net investment in capital assets- 111,887 
Net position - restricted206,063 22,699 
Net position - unrestricted(21,709) 6,347 
Total Net Position184,354$ 140,933$ 
Governmental ActivitiesNet Position
The increase in capital assets is related to the increase in construction in progress in the current 
year. 

 

The increase in current liabilities is related to the increase in accrued interest and current 
portion of long-term debt in the current year. 

 

The increase in non-current liabilities is related to the issuance of long-term debt in the current 
year. 

 

The increase in net position is the result of revenues exceeding expenses 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. 

 

 

The increase in charges for services is related to the increase in special assessments in the 
current year. 

 

20222021Program RevenuesCharges for services951,718$ 363,719$ 
Grants and contributions23,120 152,019 
General RevenuesInvestment earnings17,664 139 
Total Revenues992,502 515,877 
ExpensesGeneral government92,515 78,057 
Physical environment73,157 28,490 
Interest and other charges783,409 231,890 
Total Expenses949,081 338,437 
Change in Net Position43,421 177,440 
Net Position - Beginning of Year140,933 (36,507) 
Net Position - End of Year184,354$ 140,933$ 
Change in Net PositionGovernmental Activities
The decrease in grants and contributions is mainly related to transitioning to special 
assessments in the current year. 

 

The increase in physical environment is related to the increase in landscape maintenance and 
field management expenses in the current year. 

 

The increase in interest and other charges is related to the bond issuance costs in the current 
year. 


OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED) 

 

Capital Assets Activity 

 

The following schedule provides a summary of the District’s capital assets as of September 30, 
2022 and 2021. 

 

 

Current year activity consisted of additions to construction in progress of $1,383,913. 

 

20222021Construction in progress9,833,590$ 8,449,677$ 
Governmental Activities
General Fund Budgetary Highlights 

 

Budgeted expenditures exceeded actual expenditures primarily due to lower landscape and 
professional fee expenditures than were anticipated. 

 

The September 30, 2022 budget was not amended. 

 

Debt Management 

 

Governmental Activities debt includes the following: 

 

. In August 2020, the District issued $6,590,000 Series 2020 Special Assessment Bonds. 
These bonds were issued to finance a portion of the cost of acquisition and construction 
of the Phase One Project. As of September 30, 2022, the balance outstanding was 
$6,325,000 


 

. In October 2021, the District issued $7,495,000 Series 2021 Special Assessment Bonds. 
These bonds were issued to finance a portion of the cost of acquisition and construction 
of the Phase Two Project. As of September 30, 2022, the balance outstanding was 
$7,495,000. 


 


OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED) 

 

Economic Factors and Next Year’s Budget 

 

Sandmine Road Community Development District is in the process of finishing construction 
within the District. Sandmine Road Community Development District also issued $2,640,000 
Special Assessment Bonds, Series 2022 in October 2022. The District cannot anticipate the 
effect on the financial position or results of operations of the District in fiscal year 2023. 

 

Request for Information 

 

The financial report is designed to provide a general overview of Sandmine Road 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 Sandmine Road Community Development District, Governmental Management Services, 
219 East Livingston Street, Orlando, Florida 32801. 

 

 

 


Sandmine Road Community Development DistrictSTATEMENT OF NET POSITIONSeptember 30, 2022

Governmental

ActivitiesASSETSCurrent AssetsCash$ 32,223Assessments receivable968Prepaid expenses10,563Total Current Assets43,754Non-Current AssetsRestricted AssetsInvestments6,542,070Capital Assets, Not Being DepreciatedConstruction in progress9,833,590Total Non-Current Assets16,375,660Total Assets16,419,414LIABILITIESCurrent LiabilitiesAccounts payable11,995Accrued interest202,004Bonds payable, current295,000Total Current Liabilities508,999Non-Current LiabilitiesDeveloper advance2,086,459Bonds payable, net13,639,602Total Non-current Liabilities15,726,061Total Liabilities16,235,060NET POSITIONRestricted for debt service206,063Unrestricted (21,709)
Total Net Position$ 184,354

See accompanying notes to financial statements.

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Sandmine Road Community Development DistrictSTATEMENT OF ACTIVITIESFor the Year Ended September 30, 2022

Net (Expense)
Revenues andChanges inProgram RevenuesNet PositionOperating 
Charges forGrants and GovernmentalFunctions/ProgramsExpensesServicesContributionsActivities

 Governmental Activities 
General government 
Physical environment 
Interest and other charges 
Total Governmental Activities(92,515)$ 88,944$ 
(73,157)73,437(783,409)789,337(949,081)$ 951,718$ 
$ 
$ 
12,66410,456-
23,120$ 9,09310,7365,92825,757General RevenuesInvestment income 
Change in Net PositionNet Position - October 1,2021Net Position - September 30, 2022$ 
17,66443,421140,933184,354

See accompanying notes to financial statements.

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Sandmine Road Community Development DistrictBALANCE SHEET –
GOVERNMENTAL FUNDSSeptember 30, 2022

GeneralASSETSCash$32,223Assessments receivable202Prepaid expenses10,563Restricted assetsCash and investments, at fair value- 
Total Assets$42,988LIABILITIES AND FUND BALANCESLIABILITIESAccounts payable$11,995FUND BALANCESNonspendable - prepaid expenses10,563Restricted:
Debt service -
Capital projects-
Unassigned20,430 
Total Fund Balances30,993 
Total Liabilities and Fund Balances$42,988

Debt Service

$-
766-

798,798

$799,564

$-

-

799,564-
-

799,564

$799,564

TotalGovernmentalCapital ProjectsFunds

$-$32,223-968-10,563

5,743,2726,542,070$5,743,272$6,585,824

$-$11,995

-10,563

-799,5645,743,2725,743,272-20,4305,743,2726,573,829$5,743,272$6,585,824

See accompanying notes to financial statements.

-12 -


Sandmine Road Community Development DistrictRECONCILIATION OF TOTAL GOVERNMENTAL FUND BALANCESTO NET POSITION OF GOVERNMENTAL ACTIVITIESSeptember 30, 2022

Total Governmental Fund Balances$ 6,573,829Amounts reported for governmental activities in the Statement of Net Positionare different because:
Capital assets, not being depreciated, construction in progress, used ingovernmental activities are not current financial resources and therefore,
are notreported at the governmental fund level.9,833,590advance, $(2,086,459), are not due and payable in the current period 
Long-term liabilities, including bonds payable, $(13,280,000), net of bondand therefore, are not reported at the governmental fund level.
discount, net, $24,990, and bond premium, net, $(139,592) and developer(16,021,061)
and therefore, is not reported at the governmental fund level.
Accrued interest expense for long-term debt is not a current financial use(202,004)
Net Position of Governmental Activities$ 184,354

See accompanying notes to financial statements.

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SandmineRoad CommunityDevelopmentDistrictSTATEMENTOFREVENUES,EXPENDITURES ANDCHANGESINFUNDBALANCES–GOVERNMENTALFUNDSForthe YearEndedSeptember30,2022

RevenuesSpecialassessmentsDevelopercontributionsInvestmentincome

Expenditures

CurrentGeneralgovernmentPhysicalenvironment

Capitaloutlay

DebtservicePrincipalInterestOtherdebtservice costs

TotalExpenditures

Excessofrevenuesover/(under)expenditures

OtherFinancing Sources/(Uses)
Issuance oflong-termdebtBond premiumTransfersinTransfersout

TotalOtherFinancing Sources/(Uses)

NetChange in Fund Balances

Fund Balances-October1,2021

Fund Balances-September30,2022

See accompanying notesto financialstatements.

GeneralDebtServiceCapitalProjectsTotalGovernmentalFunds162,381$ 
32,172-
194,553789,337$ 
-
2,100791,437-$ 
-
15,56415,564951,718$ 
32,17217,6641,001,55488,60473,157-
3,911--
-
-
1,383,91392,51573,1571,383,913---
161,761135,000361,241-
500,152--
319,3751,703,288135,000361,241319,3752,365,20132,792291,285(1,687,724)(1,363,647)
-
--
-
209,638--
(1,063)
7,285,362144,5631,063-
7,495,000144,5631,063(1,063)
-208,5757,430,9887,639,56332,792499,8605,743,2646,275,916(1,799)299,7048297,91330,993$ 799,564$ 5,743,272$ 6,573,829$ 
-14 -


Sandmine Road Community Development DistrictRECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURESAND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDSTO THE STATEMENT OF ACTIVITIESFor the Year Ended September 30, 2022

Net Change in Fund Balances - Total Governmental Funds$ 6,275,916Amounts reported for governmental activities in the Statement of Activities aredifferent because:
Governmental funds report capital outlays as expenditures. However, in theStatement of Activities, the cost of those assets is allocated over theirestimated useful lives as depreciation. This is the amount of capital outlayin the current period.1,383,913The issuance of long-term debt and bond premium is recognized 
as an other financing source at the fund level. At the government-wide levelit is reflected as an increase in long-term liabilities.(7,639,563)
Repayment of long-term liabilities are reported as expenditures in thegovernmental fund statement, but such repayments reduce liabilities in theStatement of Net Position.135,000At the fund level interest is recognized when due. At the government-wide levelinterest is accrued on outstanding debt. This is the change in current year accrual.(106,858)
financial resources and therefore, is not reported at the fund level. This is the netamount of amortization in the current period.
Amortization of bond discount and bond premium do not require the use of current4,065Unavailable revenues are reported as deferred inflows of resources at the fund level.
However, these revenues are recognized when earned at the government-widelevel. This is the change in unavailable revenues in the current year.(9,052)
Change in Net Position of Governmental Activities$ 43,421

See accompanying notes to financial statements.

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Sandmine Road Community Development DistrictSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES INFUND BALANCES – BUDGET AND ACTUAL – GENERAL FUNDFor the Year Ended September 30, 2022

Variance withFinal BudgetOriginalFinalPositiveBudgetBudgetActual(Negative)
Revenues 
Special assessments$ 160,345$ 160,345$ 162,381$ 2,036 
Developer contributions59,34659,34632,172(27,174) 
Total Revenues219,691219,691194,553(25,138)
Expenditures 
Current 
General government122,568122,56888,60433,964 
Physical environment97,12397,12373,15723,966 
Total Expenditures219,691219,691161,76157,930Net Change in Fund Balances--32,79232,792Fund Balances - October 1, 2021--(1,799)(1,799)
Fund Balances - September 30, 2022$ --$ 30,993$ 30,993$ 

See accompanying notes to financial statements.

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NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 

 

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

 

 1. Reporting Entity 

 

The District was established on April 7, 2020, pursuant to the Uniform Community 
Development District Act of 1980, Chapter 190, Florida Statutes, as amended (the 
"Act"), by Ordinance No. 20-023 of the Board of County Commissioners of Polk County, 
as a Community Development District. The boundaries of the District were expanded by 
approximately 21.07 acres on June 21, 2022, pursuant to Ordinance No. 20-046 of the 
Board of County Commissioners of Polk County. 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 district roads, 
landscaping, and other basic infrastructure projects within or outside the boundaries of 
the Sandmine Road Community Development District. The District is governed by a five-
member Board of Supervisors. The District operates within the criteria established by 
Chapter 190, Florida Statutes. 

 

As required by GAAP, these financial statements present the Sandmine Road 
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 in Governmental 
Accounting Standards the District has identified no component units. 

 

 2. Measurement Focus and Basis of Accounting 

 

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

 

• Government-wide financial statements 


 

• Fund financial statements 


 

• Notes to financial statements 



NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 

 

 2. Measurement Focus and Basis of Accounting (Continued) 

 

 a. Government-wide Financial Statements 

 

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

 

Governmental activities are supported by developer contributions. Program 
revenues are netted with program expenses in the statement of activities to present 
the net cost of each program. 

 

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

 

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

 

 b. Fund Financial Statements 

 

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

 

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

 


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 reports 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) 

 

 2. Measurement Focus and Basis of Accounting (Continued) 

 

 b. Fund Financial Statements (Continued) 

 

Governmental Funds (Continued) 

 

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

 

Expenditures generally are recorded when a liability is incurred, as under accrual 
accounting. Interest associated with the current fiscal period is considered to be an 
accrual item and so has been recognized as revenue of the current fiscal period. 

 

Under the current financial resources measurement focus, only current assets and 
current liabilities are generally included on the balance sheet. The reported fund 
balance is considered to be a measure of “available spendable resources”. 

 

Governmental fund operating statements present increases (revenues and other 
financing sources) and decreases (expenditures and other financing uses) in net 
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. 

 

 3. Basis of Presentation 

 

 a. 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. 


NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 

 

 3. Basis of Presentation (Continued) 

 

 a. Governmental Major Funds (Continued) 

 

Debt Service Fund – The Debt Service Fund accounts for debt service requirements 
to retire Special Assessment Bonds, which were used to finance the construction of 
certain improvements within the District. 

 

Capital Projects Fund – The Capital Projects Fund accounts for acquisition and 
construction of infrastructure improvements located within the boundaries of the 
District. 

 

b. Non-current Governmental Assets/Liabilities 

 

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

 

 4. Assets, Liabilities, and Net Position or Equity 

 

 a. Cash and Investments 

 

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

 

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

 

1. Direct obligations of the United States Treasury; 


 

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


 

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



NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 

 

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

 

 a. Cash and Investments (Continued) 

 

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


 

Cash and investments include time deposits, certificates of deposit, money market 
funds, and all highly liquid debt instruments with original maturities of three months 
or less. 

 

 b. Restricted Assets 

 

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

 

 c. Capital Assets 

 

Capital assets, which include construction in progress, are reported in the 
governmental activities column. 

 

The District defines capital assets as assets with an initial, individual cost of $5,000 
or more and an estimated useful life in excess of 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. 

 

 d. Bond Premium/Discounts 

 

 Bond premiums and discounts associated with the issuance of bonds are amortized 
over the life of the bonds using the straight-line method of accounting. 

 

 

 

 

 

 

 

 

 

 

 

 


NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 

 

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

 

 e. 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. 
The legal level of budgetary control is at the fund level. All budgeted appropriations 
lapse at year end. Formal budgets are adopted for the general and debt service 
funds. As a result, deficits in the budget columns of the accompanying financial 
statements may occur. 

 

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

 

 1. 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, $6,573,829, differs from “net 
position” of governmental activities, $184,354, 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 (land, 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. 

 

 Construction in progress $ 9,833,590 

 

Long-term debt transactions 

 

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

 

 Bonds payable $ (13,820,000) 

 Developer advance (2,086,459) 

 Bond premium, net (139,592) 

 Bond discount, net 24,990 

 Bonds payable, net $ (16,021,061) 

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

 

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

 

Accrued interest 

 

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

 

 Accrued interest $ (202,004) 

 

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


 

The “net change in fund balances” for government funds, $6,275,916, differs from the 
“change in net position” for governmental activities, $43,421, reported in the Statement 
of Activities. The differences arise primarily from the long-term economic focus of the 
Statement of Activities versus the current financial resources focus of the governmental 
funds. The effect of the differences is illustrated below: 

 

Capital related items 

 

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

 

 Capital outlay $ 1,383,913 

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

 

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


 

Long-term debt transactions 

 

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. Also, interest is recognized when 
due at the fund level, but is accrued at the government-wide level. 

 

 Issuance of long-term debt with premium $ (7,639,563) 

 

 Repayment of long-term debt $ 135,000 

 

 Accrued interest $ (106,858) 

 

 Amortization of bond discount/premium, net $ 4,065 

 

Deferred inflows of resources 

 

Unavailable revenues are recognized as deferred inflows of resources at the fund level. 
Revenues are recognized when earned at the government-wide level. 

 

 Net change in unavailable revenues $ (9,052) 

 

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, 2022, the District's bank balance was $40,855 and the 
carrying value was $32,223. Exposure to custodial credit risk was as follows. The District 
maintains all deposits in a qualified public depository in accordance with the provisions of 
Chapter 280, Florida Statutes, which means that all deposits are fully insured by Federal 
Depositors Insurance or collateralized under Chapter 280, Florida Statutes. 

 

Investments 

 

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

 

 

InvestmentMaturity DateFair ValueFirst American Government Obligation Fund18 Days*6,542,070$ 
*Weighted Average Maturity
NOTE C – CASH AND INVESTMENTS (CONTINUED) 

 

Investments (Continued) 

 

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

 

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

 

Based on the criteria in the preceding paragraph, the investment listed above is a Level 1 asset. 

 

Investments 

 

The District’s investment policy allows management to invest funds in investments permitted 
under Section 218.415(17) Florida Statutes. Among other investments, the policy allows the 
District to invest in Securities and Exchange Commission registered money market funds with 
the highest credit quality rating from a nationally recognized rating agency. 

 

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. The 
investment in First American Government Obligation Fund is rated AAAm by Standards and 
Poors. 

 

Credit Risk 

 

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 investments in the 
First American Government Obligation Fund represent 100% of the District’s investments. 

 

The types of deposits and investments and their level of risk exposure as of September 30, 
2022 were typical of these items during the fiscal year then ended. 

 


NOTE D – CAPITAL ASSETS 

 

Capital Asset activity for the year ended September 30, 2022 was as follows: 

 

NOTE E – LONG-TERM DEBT 
BalanceBalanceOctober 1,September 30,2021AdditionsDeletions2022Governmental activities:
Capital assets, not being depreciated:
Construction in progress8,449,677$ 1,383,913$ -$ 9,833,590$ 

 

The following is a summary of debt activity for the District for the period ended September 30, 
2022: 

 

 Bonds payable at October 1, 2021 $ 6,460,000 

 

 Issuance of long-term debt 7,495,000 

 Principal payments (135,000) 

 Bonds payable at September 30, 2022 13,820,000 

 Bond premium, net 139,592 

 Bond discount, net (24,990) 

 Bonds Payable, Net at September 30, 2022 $ 13,934,602 

 

District debt is comprised of the following at September 30, 2022: 

 

Special Assessment Bonds 

 

$6,590,000 Series 2020 Special Assessment Bonds maturing 
through 2050, at various interest rates between 2.625% and 
3.75%, payable May 1 and November 1. Current portion is 
$140,000. $ 6,325,000 

 

$7,495,000 Series 2021 Special Assessment Bonds maturing 
through 2051, at various interest rates between 2.30% and 
4.00%, payable May 1 and November 1. Current portion is 
$155,000. $ 7,495,000 

 

 


NOTE E – LONG-TERM DEBT (CONTINUED) 

 

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

 

 

Summary of Significant Bonds Resolution Terms and Covenants 

 

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, 2031 a price equal to the par amount of the 
Series 2020 Bonds thereof, together with accrued interest to the date of redemption. 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 Series 2021 Bonds are subject to redemption at the option of the District prior to their 
maturity, in whole or in part, at any time after November 1, 2031 a price equal to the par amount 
of the Series 2021 Bonds thereof, together with accrued interest to the date of redemption. The 
Series 2021 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. 

Year EndingSeptember 30,PrincipalInterestTotal2023295,000$ 483,029$ 778,029$ 
2024300,000 475,731 775,731 
2025310,000 468,319 778,319 
2026320,000 460,660 780,660 
2027325,000 452,063 777,063 
2028-20321,780,000 2,105,931 3,885,931 
2033-20372,105,000 1,786,533 3,891,533 
2038-20422,505,000 1,393,095 3,898,095 
2043-20473,000,000 890,175 3,890,175 
2048-20522,880,000 268,912 3,148,912 
Totals13,820,000$ 8,784,448$ 22,604,448$ 


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 E – 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 Funds – The Series 2020 Reserve Account was funded from the proceeds of the 
Series 2020 Bonds in an amount equal to 50 percent of the maximum annual debt service 
for the Series 2020 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 balances as of September 30, 2022: 

 

 

Developer Payable 

 

The District entered into an acquisition agreement with the Developer in the prior year. The 
District acquired Construction in Progress for $8,427,473. In the prior year and current year, the 
District paid $5,989,456 to the Developer and the Developer contributed an additional $351,558 
for the improvements. The balance outstanding as of September 30, 2022 was $2,086,459. The 
balance will be paid in the future, to the extent funds are available in accordance with the 
Indenture. 

 

NOTE F – ECONOMIC DEPENDENCY 

 

The Developers own a significant portion of land within the District. The District’s activity is 
dependent upon the continued involvement of the Developers, the loss of which could have a 
material adverse effect on the District’s operations. At September 30, 2022, all board members 
are affiliated with the Developers. 

ReserveReserveBalanceRequirementSpecial Assessment Bonds, Series 2020181,859$ 181,859$ 
Special Assessment Bonds, Series 2021209,638$ 209,638$ 


NOTE G – 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 for which the government 
carries commercial insurance. There were no claims or settled claims from these risks that 
have exceeded commercial insurance coverage. 

 

NOTE H – SUBSEQUENT EVENT 

In October 2022, the District issued $2,640,000 Special Assessment Bonds, Series 2022 to 
finance a portion of the cost of acquisition and construction of the Phase Three Project. 


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 

Sandmine Road Community Development District 

Polk County, Florida 





We have audited, in accordance with the auditing standards generally accepted in the United 
States of America and the standards applicable to financial audits contained in Government 
Auditing Standards issued by the Comptroller General of the United States, the financial 
statements, as listed in the table of contents, of Sandmine Road Community Development 
District, as of and for the year ended September 30, 2022, and the related notes to the financial 
statements, which collectively comprise the basic financial statements and have issued our 
report thereon dated July 31, 2023. 



Report on Internal Control Over Financial Reporting 



In planning and performing our audit, we considered Sandmine Road 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 Sandmine Road Community Development District’s internal control. 
Accordingly, we do not express an opinion on the effectiveness of Sandmine Road Community 
Development District's internal control. 



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



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


To the Board of Supervisors 

Sandmine Road Community Development District 

 

 

Report on Compliance and Other Matters 

 

As part of obtaining reasonable assurance about whether Sandmine Road 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 

 

July 31, 2023 

 


 

 

 

 

 

 

MANAGEMENT LETTER 

 

To the Board of Supervisors 

Sandmine Road Community Development District 

Polk County, Florida 

 

Report on the Financial Statements 

 

We have audited the financial statements of the Sandmine Road Community Development 
District as of and for the year ended September 30, 2022, and have issued our report thereon 
dated July 31, 2023. 

 

Auditor’s Responsibility 

 

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

 

Other Reporting Requirements 

 

We have issued our Independent Auditor’s Report on Internal Control over Financial Reporting 
and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in 
Accordance with Government Auditing Standards and our Independent Auditor’s Report on an 
examination conducted in accordance with AICPA Professionals Standards, AT-C Section 315, 
regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor 
General. Disclosures in those reports, which are dated July 31, 2023, should be considered in 
conjunction with this management letter. 

 

Prior Audit Findings 

 

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

 

Finding 21 – 01 

 

Finding: The actual expenditures exceeded budgeted amounts, which is in violation of Section 
189.016, Florida Statutes 

 

Recommendation: District management should monitor expenditures throughout the year to 
ensure they do not exceed budgeted amounts. 

 

Response: We will add procedures to ensure expenditures are less than budgeted amounts. 

 

Current status: The finding was corrected in the current year. 


To the Board of Supervisors 

Sandmine Road Community Development District 

 

Financial Condition and Management 

 

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

 

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

 

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

 

Specific Information 

 

The information provided below was provided by management and has not been audited; 
therefore, we do not express an opinion or provide any assurance on the information. 

 

As required by Section 218.39(3)(c), Florida Statutes, and Section 10.554(1)(i)6, Rules of the 
Auditor General, the Sandmine Road Community Development District reported: 

 

1) The total number of district employees compensated in the last pay period of the 
District’s fiscal year: 0 
2) The total number of independent contractors to whom nonemployee compensation was 
paid in the last month of the District’s fiscal year: 6 
3) All compensation earned by or awarded to employees, whether paid or accrued, 
regardless of contingency: $0 
4) All compensation earned by or awarded to nonemployee independent contractors, 
whether paid or accrued, regardless of contingency: $1,875,900 
5) Each construction project with a total cost of at least $65,000 approved by the District 
that is scheduled to begin on or after October 1, 2021, together with the total 
expenditures for such project: The District spent $1,383,913 with the Series 2021 
construction projects. 
6) A budget variance based on the budget adopted under Section 189.016(4), Florida 
Statutes, before the beginning of the fiscal year being reported if the District amends a 
final adopted budget under Section 189.016(6), Florida Statutes: The budget was not 
amended. 



To the Board of Supervisors 

Sandmine Road Community Development District 

 

As required by Section 218.39(3)(c), Florida Statutes, and Section 10.554(1)(i)8, Rules of the 
Auditor General, the Sandmine Road Community Development District reported: 

 

1) The rate or rates of non-ad valorem special assessments imposed by the District: The 
General Fund, $301 - $401 and the Debt Service Fund, $784 - $1,784. 
2) The amount of special assessments collected by or on behalf of the District: Total 
special assessments collected was $951,718. 
3) The total amount of outstanding bonds issued by the District and the terms of such 
bonds: Series 2020, $6,325,000, maturing May 2050 and Series 2021, $7,495,000 
maturing May 2052. 


 

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 noted the following finding. 

 

 

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 

 

July 31, 2023 


INDEPENDENT ACCOUNTANTS’ REPORT/COMPLIANCE 

WITH SECTION 218.415, FLORIDA STATUTES 







To the Board of Supervisors 

Sandmine Road Community Development District 

Polk County, Florida 





We have examined Sandmine Road Community Development District's compliance with Section 
218.415, Florida Statutes during the 6 months ended September 30, 2022. Management is 
responsible for Sandmine Road Community Development District’s compliance with those 
requirements. Our responsibility is to express an opinion on Sandmine Road 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 Sandmine Road 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 Sandmine Road Community 
Development District’s compliance with the specified requirements. 



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











Berger, Toombs, Elam, Gaines & Frank 

Certified Public Accountants PL 

Fort Pierce, Florida 



July 31, 2023