Viera East Community Development District

ANNUAL FINANCIAL REPORT

September 30, 2019

Viera East Community Development District ANNUAL FINANCIAL REPORT
September 30, 2019 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
Statement of Fund Net Position – Enterprise Fund	16
Statement of Revenues, Expenses and Changes in Fund
Net Position – Enterprise Fund	17
Statement of Cash Flows – Enterprise Fund	18

Notes to Financial Statements	19-36
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	37-38
MANAGEMENT LETTER	39-40
INDEPENDENT ACCOUNTANT’S REPORT/COMPLIANCE WITH
SECTION 218.415, FLORIDA STATUTES	41

REPORT OF INDEPENDENT AUDITORS

To the Board of Supervisors
Viera East Community Development District Brevard County, Florida
Report on the Financial Statements

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 and the standards applicable to financial audits contained in Government Accounting Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free 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.

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To the Board of Supervisors
Viera East Community Development District

Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, business-type activities, and each major fund of the Viera East Community Development District as of September 30, 2019, and the respective changes in financial position and cash flows for the Enterprise Fund 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 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 in accordance with governmental auditing standards generally accepted in the United States of America, which consisted principally of inquires of management regarding 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  12, 2020 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 Viera East Community Development District’s internal control over financial reporting and compliance.

Berger, Toombs, Elam, Gaines & Frank Certified Public Accountants PL
Fort Pierce, Florida June 12, 2020

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

OVERVIEW OF THE FINANCIAL STATEMENTS

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

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

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

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

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

OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)

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

The government-wide financial statements and the fund financial statements provide different pictures of the District. The government-wide financial statements provide an overall picture of the District’s financial standing, split between Governmental Activities and Business-type Activities. These statements are comparable to private-sector companies and give a good understanding of the District’s overall financial health and how the District paid for the various activities, or functions, provided by the District. All assets of the District, including 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 general obligation bonds, are not  included in the fund financial statements.  To provide a link from the fund financial statements to the government-wide financial statements, a reconciliation is provided from the fund financial statements to the government- wide financial statements.

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

Financial Highlights

The following are the highlights of financial activity for the year ended September 30, 2019:

□  The District’s total liabilities exceeded total assets and deferred outflows of resources by
$(5,597,747) (net position). Net investment in capital assets for Governmental Activities was   $(4,909,494).  Net   investment   in  capital  assets  for   Business-type  Activities was
$(1,658,189). Unrestricted net position for Governmental Activities was $433,436 and for Business-type Activities was $186,086. Restricted net position for Governmental Activities was $333,488 and Business-type Activities was $16,926.

OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)

Financial Highlights (Continued)

□ Governmental activities revenues and transfers totaled $3,341,644, while governmental activities expenses totaled $1,754,454. Business-type Activities revenues totaled
$2,325,469 while Business-type Activities expenses and transfers totaled $2,046,767.

Financial Analysis of the District

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

		Net Position					
		Governmental Activities	Business-type Activities			Total		
		2019	2018	 	2019	 	2018				2019	2018	

Current assets	
$	
536,794	$	505,094	$	281,986	$	317,151		
$	
818,780	$	
822,245	
Restricted assets		516,489	497,975	362,395	368,833			878,884	866,808	
Capital assets, net	 	1,565,816 	1,940,545	 	1,191,840 1,253,560	 	2,757,656     		3,194,105	
Total Assets	 	2,619,099 	2,943,614	 	1,836,221 1,939,544	 	4,455,320     		4,883,158	
Deferred outflows		67,660	90,213	 	159,029 	187,085			226,689	277,298	

Current liabilities		
2,327,224	2,223,901	571,244	573,728			
2,898,468	
2,797,629	
Non-current liabilities		4,502,105	6,539,686	 	2,879,183 3,286,780	 	7,381,288	9,826,466	
Total Liabilities	 	6,829,329 	8,763,587	 	3,450,427 3,860,508	 	10,279,756     		12,624,095	
Net Position							
Net investment in							
capital assets		(4,909,494)	(6,528,844)	(1,658,189)	(1,961,010)			(6,567,683)	(8,489,854)	
Restricted		333,488	269,365	16,926	17,192			350,414	286,557	
Unrestricted
Total Net Position	 		433,436 	529,719	 	186,086 	209,939
$	(4,142,570)   $	(5,729,760) $ (1,455,177) $ (1,733,879)		 		619,522     	
(5,597,747)     $		739,658	
				$		(7,463,639)	
The decrease in capital assets, net for governmental activities is the result of  depreciation for   the current year.

The decrease in non-current liabilities for governmental activities and business-type activities is primarily the result of principal payments made during the 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.

		Change in Net Position					
    Governmental Activities		Business-type Activities			Total		
2019	 	2018		2019	 	2018		 	2019		2018	
Program Revenues					
Charges for services	$	3,246,025	$   3,247,490	$   2,285,799	$ 2,333,779		$	5,531,824	$	5,581,269	
General Revenues							
Investment earnings		9,442	5,816	966	804			10,408	6,620	
Miscellaneous		56,280	 	56,283	38,704	 	25,132	 	94,984	81,415	
Total Revenues		3,311,747	3,309,589	2,325,469	2,359,715	5,637,216	5,669,304	

Expenses							
General government		321,716	223,393	-	-			321,716	223,393	
Physical environment		965,521	1,029,185	-	-			965,521	1,029,185	
Interest on							
long-term debt		467,217	571,675	-	-			467,217	571,675	
Golf course		-	 	-	2,016,870	 2,014,782	      2,016,870	2,014,782
3,839,035	
Total Expenses Transfers
Change in Net Position	

 		1,754,454	 1,824,253	2,016,870	 2,014,782

29,897	 	(36,668) 	(29,897) 	36,668

1,587,190	1,448,668	278,702	381,601	      3,771,324		
			
 	-	 		
-	
					1,865,892	1,830,269	
Net Position - Beginning of Year		(5,729,760)          (7,178,428)	(1,733,879) (2,115,480)	    (7,463,639)	(9,293,908)	
Net Position - End of Year	 $ 	(4,142,570) $ (5,729,760) $ (1,455,177) $ (1,733,879)		 $ 	(5,597,747) $ 	(7,463,639)	
 
The increase in general government for governmental activities is primarily related to litigation expenses.

The decrease in physical environment expenses for governmental activities is the result of the lake bank restoration in the prior year.

The decrease in government activities interest on long-term debt is primarily related to the reduction in outstanding 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, 2019.

Description	Governmental
Activities	Business-type
Activities			
Total	

Land	
$	
-		
$	
872,830		
$	
872,830	
Infrastructure		10,561,792			-			10,561,792	
Improvements other than buildings		12,742			5,905,343			5,918,085	
Recreational facilities		-			773,247			773,247	
Equipment		266,629			1,426,293			1,692,922	
Accumulated depreciation

Total Capital Assets (Net)	 	(9,275,347)	 	(7,785,873)		  	(17,061,220)

$	2,757,656	
	 $		1,565,816		 $		1,191,840		 		

The governmental activities capital assets activity in the current year includes depreciation of
$374,729.

Business-type activities changes in the current year include depreciation of $67,271, and capital asset additions of equipment, $5,550.

General Fund Budgetary Highlights

The budget exceeded actual expenditures for the year because capital outlay expenditures were less than budgeted amounts.

The budget was amended for the year ended September 30, 2019, for transfers not  anticipated  in the original budget.

OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)

Debt Management

Governmental Activities debt includes the following:

In February 2006, the District issued $15,000,000 Series 2006 Water Management Refunding Bonds. These bonds were issued to refund and retire the  Water  Management  Refunding  Bonds, Series 1996A and Water Management Bonds, Series 1996B. As of September 30, 2019, the balance outstanding was $6,425,000.

In November 2017, the District entered into an equipment finance agreement to acquire a Rain Bird Pump Station. As of September 30, 2019, the balance outstanding was $126,455.

Business-type Activities debt includes the following:

In March 2012, the District issued $5,805,000 Series 2012 Special Assessment Revenue Refunding Bonds. These bonds were issued to refund and retire the Series 1996 Special Assessment Revenue Refunding Bonds. As  of  September  30,  2019 the  balance  outstanding was $3,305,000.

Economic Factors and Next Year’s Budget

Viera East Community Development District does not expect any economic factors to have any significant effect on the financial position or results of operations of the District in fiscal year 2020.

Request for Information

The financial report is designed to provide a general overview of Viera East 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 Viera East Community Development District, GMS-CF, LLC, 219 East Livingston Street, Orlando, Florida 32801.

Governmental	Business-type				
		Activities			Activities			Total	
ASSETS									
Current Assets:									
Cash and equivalents	$	313,878	$	63,371	$	377,249	
Investments		247,444			-			247,444	
Accounts receivable, net		-			4,805			4,805	
Inventory		-			96,966			96,966	
Prepaid expenses		12,488			79,828			92,316	
Internal balances	 	(37,016)	 	37,016	 	-	
Total Current Assets	 	536,794	 	281,986	 	818,780	
Non-Current Assets:				
Restricted assets:									
Investments		516,489			362,395			878,884	
Capital assets not being depreciated:									
Land		-			872,830			872,830	
Capital assets being depreciated:									
Infrastructure		10,561,792			-			10,561,792	
Improvements other than buildings		12,742			5,905,343			5,918,085	
Recreation facilities		-			773,247			773,247	
Equipment		266,629			1,426,293			1,692,922	
Less: Accumulated depreciation	 	(9,275,347)	 	(7,785,873)	 	(17,061,220)	
Total Non-Current Assets	 	2,082,305	 	1,554,235	 	3,636,540	
Total Assets	 	2,619,099	 	1,836,221	 	4,455,320	
DEFERRED OUTFLOWS OF RESOURCES									
Deferred amount on refunding		67,660			159,029			226,689	

LIABILITIES									
Current Liabilities:									
Accounts payable and accrued expenses		132,426			44,929			177,355	
Unearned revenues		-			50,285			50,285	
Customer deposits, payable from restricted assets		-			686			686	
Accrued interest		153,933			65,344			219,277	
Bonds payable		2,020,000			410,000			2,430,000	
Note payable	 	20,865	 	-	 	20,865	
Total Current Liabilities	 	2,327,224	 	571,244	 	2,898,468	
Non-Current Liabilities:				
Bonds payable, net		4,396,515			2,879,183			7,275,698	
Note payable	 	105,590	 	-	 	105,590	
Total Non-Current Liabilities	 	4,502,105	 	2,879,183	 	7,381,288	
Total Liabilities	 	6,829,329	 	3,450,427	 	10,279,756	
NET POSITION									
Net investment in capital assets		(4,909,494)			(1,658,189)			(6,567,683)	
Restricted for debt service		333,488			16,926			350,414	
Unrestricted	 	433,436	 	186,086	 	619,522	
Total Net Position	 $		(4,142,570)		 $		(1,455,177)		 $		(5,597,747)	

See accompanying notes to financial statements.

Viera East Community Development District STATEMENT OF ACTIVITIES
For the Year Ended September 30, 2019

	Program		Net (Expense) Revenue and		
	 Revenues			 	Changes in Net Position			
Charges for	Governmental	Business-type	
Functions/Programs	 Expenses	 Services		Activities	Activities			Total	
Governmental Activities							
General government	$	(321,716)	$	268,533	$	(53,183)	$	-		$	(53,183)	
Physical environment	(965,521)	543,303	(422,218)	-			(422,218)	
Interest on long-term debt	 	(467,217)	 2,434,189	 	1,966,972	 	-		 		1,966,972	
Total Governmental Activities	  (1,754,454)	 3,246,025	1,491,571	-			1,491,571	

Business-type activities							
Golf course	 $ (2,016,870)	 $  2,285,799	-	268,929			268,929	

General revenues:						
	Investment earnings	9,442	966			10,408	
	Miscellaneous revenues	56,280	38,704			94,984	
	
Total General Revenues	65,722	39,670			105,392	

Transfers	 	29,897	 	(29,897)	
 	-	
	Change in Net Position	1,587,190	278,702			1,865,892	
	Net Position - October 1, 2018	 	(5,729,760)	 	(1,733,879)	    (7,463,639)	
	Net Position - September 30, 2019  $	(4,142,570)	 $	(1,455,177)	 $ (5,597,747)	

BALANCE SHEET – GOVERNMENTAL FUNDS
September 30, 2019

						Total	
			Debt			Governmental	
ASSETS	  General			   Service				 	Funds		
Cash	$ 313,878		$	-		$	313,878	
Investments	247,444			-		247,444	
Due from other funds	25,029			-		25,029	
Prepaid expenses	12,488			-		12,488	
Restricted assets:							
Investments, at fair value	-	516,489		516,489	
Total Assets	 $ 598,839	 $ 516,489		 $	1,115,328	

LIABILITIES AND FUND BALANCES							
LIABILITIES							
Accounts payable and accrued expenses	$ 132,426		$	-		$	132,426	
Due to other funds	 	32,977	 	29,068		 	62,045	
Total Liabilities	     165,403	 	29,068		 	194,471	
FUND BALANCES							
Nonspendable-prepaid	12,488			-		12,488	
Restricted for debt service	-	487,421		487,421	
Assigned capital reserves	273,041			-		273,041	
Unassigned	     147,907	 	-		 	147,907	
Total Fund Balances	433,436	487,421		920,857	

Total Liabilities and Fund Balances	
 $ 598,839	
 $ 516,489		
 $	1,115,328	

RECONCILIATION OF TOTAL GOVERNMENTAL FUND BALANCES TO NET POSITION OF GOVERNMENTAL ACTIVITIES
September 30, 2019

Total Governmental Fund Balances	$	920,857	
Amounts reported for governmental activities in the Statement of Net Position are different because:			
Capital assets being depreciated, infrastructure ($10,561,792), improvements other than buildings ($12,742) and equipment ($266,629), net of accumulated depreciation ($(9,275,347)) used in governmental activities are not current financial resources and, therefore, are not reported at the fund level.		

1,565,816	
Long-term liabilities, including bonds payable, ($(6,425,000)), net of bond discounts, net, ($8,485) and note payable ($(126,455)) are not due and  payable  in  the current period and therefore, are not reported at the fund level.		

(6,542,970)	
Deferred outflows of resources are not current financial resources and therefore, are not reported at the fund level.		
67,660	
Accrued interest expense for long-term debt is not a current financial use and; therefore, is not reported at the fund level.	
 	(153,933)	
Net Position of Governmental Activities	 $		(4,142,570)	

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES – GOVERNMENTAL FUNDS
For the Year Ended September 30, 2019

						Total	
				Debt		Governmental	
	General		Service		Funds	
Revenues:							
Special assessments	$	811,836		$ 2,434,189		$	3,246,025	
Miscellaneous revenues		56,280		-		56,280	
Investment earnings		6,295		3,147		9,442	
Total Revenues		874,411		2,437,336		3,311,747	

Expenditures:							
Current							
General government		292,005		29,711		321,716	
Physical environment		590,792		-		590,792	
Debt service							
Principal		19,703		1,910,000		1,929,703	
Interest		7,878		479,262		487,140	
Total Expenditures		910,378		2,418,973		3,329,351	

Excess of revenues over/(under)							
expenditures		(35,967)		18,363		(17,604)	

Other Financing Sources/(Uses)							
Transfers in		35,447		-		35,447	
Transfers out		(5,550)		-		(5,550)	
Total Other Financing Sources/(Uses)		29,897		-		29,897	

Net Change in Fund Balances		
(6,070)		
18,363		
12,293	
Fund Balances - October 1, 2018		439,506		469,058		908,564	
Fund Balances - September 30, 2019	$	433,436		$	487,421		$	920,857	

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, 2019

Net Change in Fund Balances - Total Governmental Funds	$	12,293	
Amounts reported for governmental activities in the Statement of Activities are different because:			
Governmental funds report capital outlays as expenditures. However, in the Statement of  Activities, the cost of  those assets is allocated  over their estimated useful lives as depreciation. This is the amount of depreciation in the current period.		

(374,729)	
Principal payments are reported as expenditures in the governmental funds, but are reported as reductions of liabilities in the Statement of Net Position.		
1,929,703	
Deferred outflows of resources for refunding debt is recognized as a component of interest on long-term debt in the Statement of Activities, but not in the governmental funds. This is the amount of interest in the current year.		

(22,553)	
Amortization of bond discount reported in the Statement of Activities does not require the use of current financial resources and therefore, is not reported as an expenditure in governmental funds.		

(3,284)	
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.	

 	45,760	
Change in Net Position of Governmental Activities	 $ 	1,587,190	

See accompanying notes to financial statements.

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES – BUDGET AND ACTUAL – GENERAL FUND
For the Year Ended September 30, 2019

									Variance with	
									Final Budget	
	Original		Final					Positive	
	  	Budget			 Budget			  	Actual			  (Negative)		
Revenues										
Special assessments	$	808,156		$ 808,156		$	811,836		$	3,680	
Miscellaneous revenues		56,280		56,280			56,280		-	
Investment earnings		350		350			6,295		5,945	
Total Revenues		864,786		864,786			874,411		9,625	

Expenditures										
Current										
General government		178,103		189,318			292,005		(102,687)	
Physical environment		703,610		605,514			590,792		14,722	
Capital outlay		100,000		100,000			-		100,000	
Debt service										
Principal		-		-			19,703		(19,703)	
Interest		-		-			7,878		(7,878)	
Total Expenditures		981,713		894,832			910,378		(15,546)	

Excess of revenues over/(under)										
expenditures		(116,927)		(30,046)			(35,967)		(5,921)	

Other Financing Sources/(Uses)										
Transfers in		20,468		20,468			35,447		14,979	
Transfers out		-		(189,484)			(5,550)		183,934	
Total Other Financing Sources/(Uses)		20,468		(169,016)			29,897		198,913	

Net Change in Fund Balances		
(96,459)		
(199,062)			
(6,070)		
192,992	
Fund Balances - October 1, 2018		283,792		386,395			439,506		53,111	

Fund Balances - September 30, 2019	
 $ 	
187,333		
 $ 187,333		
 $ 	
433,436		
 $	246,103	

Viera East Community Development District STATEMENT OF FUND NET POSITION – ENTERPRISE FUND
September 30, 2019

ASSETS			
Current Assets			
Cash and equivalents	$	63,371	
Accounts receivable		2,127	
Due from other funds		55,899	
Due from other governments		2,678	
Prepaid expenses		79,828	
Inventories		96,966	
Total Current Assets		300,869	
Non-Current Assets			
Restricted Assets			
Investments		362,395	
Capital Assets			
Land		872,830	
Improvements other than buildings		5,905,343	
Buildings		773,247	
Equipment		1,426,293	
Less: Accumulated depreciation		(7,785,873)	
Total Non-Current Assets		1,554,235	
Total Assets		1,855,104	

DEFERRED OUTFLOWS OF RESOURCES			
Deferred amount on refunding		159,029	

LIABILITIES			
Current Liabilities			
Accounts payable and accrued expenses		44,929	
Due to other funds		18,883	
Customer deposits payable from restricted assets		686	
Unearned revenues		50,285	
Accrued interest payable		65,344	
Bonds payable		410,000	
Total Current Liabilities		590,127	
Non-Current Liabilities			
Bonds payable		2,879,183	
Total Liabilities		3,469,310	

NET POSITION			
Net investment in capital assets		(1,658,189)	
Restricted for debt service		16,926	
Unrestricted

Total Net Position		186,086	
	
 $		
(1,455,177)	

Viera  East  Community Development  District   STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION – ENTERPRISE FUND
For the Year Ended September 30, 2019

Operating Revenues:			
Charges for services	$	1,702,274	
Miscellaneous revenues	 	38,704	
Total Operating Revenues	    1,740,978	
Operating Expenses:			
Personal services		818,437	
Contractual and professional services		259,406	
Supplies and expenses		331,957	
Repairs and maintenance		56,694	
Utilities		72,517	
Rent and lease expense		214,664	
Depreciation	 	67,270	
Total Operating Expenses	1,820,945	

Operating Income/(Loss)	
 	(79,967)	
Nonoperating Revenues/(Expenses)			
Special assessments		583,525	
Investment income		966	
Interest expense	 	(195,925)	
Total nonoperating revenues/(expenses)	 	388,566	
Net Income before transfers		308,599	
Transfers in		5,550	
Transfers out	 	(35,447)	
Change in net position		278,702	
Net Position - October 1, 2018	   (1,733,879)	
Net Position - September 30, 2019	 $ 	(1,455,177)	

See accompanying notes to financial statements.

Viera East Community Development District STATEMENT OF CASH FLOWS – ENTERPRISE FUND
For the Year Ended September 30, 2019

CASH FLOWS FROM OPERATING ACTIVITIES			
Receipts from customers	$	1,691,180	
Receipts from other sources		38,704	
Payments to suppliers for goods and services		(1,156,640)	
Payments to employees for services		(818,437)	
Net Cash Provided by Operating Activities		(245,193)	

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES			
Transfers in		5,550	
Transfers out		(35,447)	
Net cash provided by noncapital financing activities		(29,897)	

CASH FROM CAPITAL AND RELATED FINANCING ACTIVITIES			
Special assessment proceeds		583,525	
Acquisition and construction of capital assets		(5,550)	
Interest payments on long-term debt		(171,638)	
Principal payments on bonds payable		(395,000)	
Net Cash Provided/(Used) by Investing Activities		11,337	

CASH FLOWS FROM INVESTING ACTIVITIES			
Proceeds from sales of investments		1,131,950	
Purchases of investments		(1,125,512)	
Interest on cash and investments		966	
Net cash provided by investing activities		7,404	

Net increase in cash and cash equivalents		
(256,349)	
Cash and equivalents - October 1, 2018		319,720	

Cash and equivalents - September 30, 2019	
$	
63,371	

RECONCILIATION OF OPERATING INCOME TO NET			
CASH PROVIDED BY OPERATING ACTIVITIES			
Operating income	$	(79,967)	
Adjustments to reconcile operating income to net cash			
provided by operating activities:			
Depreciation expense		67,270	
Increase in accounts receivable		(2,137)	
Increase in prepaid expenses		(56,120)	
Increase in inventories		(11,201)	
Increase in due from other funds		(21,608)	
Decrease in accounts payable and accrued expenses		(2,355)	
Decrease in due to other funds		(130,118)	
Decrease in customer deposits		(1,791)	
Decrease in unearned revenues

Net Cash Provided by Operating Activities		(7,166)	
	
$	
(245,193)	

See accompanying notes to financial statements.

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

Reporting Entity

The District was established on April 16, 1991, pursuant the Uniform Community Development District Act of 1980, Chapter 190, Florida Statutes, as amended (the “Act”) , as a Community Development District. The District was established for the purposes of financing and managing the acquisition, construction, maintenance and operation of the infrastructure necessary for community development within its jurisdiction. The District is authorized to issue bonds for the purpose, among others, of financing, funding, planning, establishing, acquiring, constructing or re-constructing, enlarging or extending, equipping, operating and maintaining water management, bridges or culverts, district roads, landscaping, street lights and other basic infrastructure projects within or without the boundaries of the Viera East Community Development District. The District is governed by a five-member Board of Supervisors who are elected by qualified electors of the District for four year terms. The District operates within the criteria established by Chapter 190.

As required by GAAP, these financial statements present the Viera East 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, 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

Government-wide Financial Statements

Government-wide financial statements report all non-fiduciary information about the reporting government as a whole. These statements include separate columns for the governmental and business-type activities of the primary government. For the most part, the effect of interfund activity has been removed from these statements.

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

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

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

Fund Financial Statements

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

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

Governmental Funds

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

Expenditures generally are recorded when a liability is incurred, as under accrual accounting. Interest associated with the current fiscal period is considered to be an accrual item and so has been recognized as revenue of the current fiscal period.
Under the current financial resources measurement focus, only current assets  and current liabilities are generally included on the balance sheet. The reported  fund  balance is considered to be a measure of “available spendable  resources”.  Governmental fund operating statements present increases (revenues  and  other financing sources) and decreases (expenditures and other financing uses)  in  net position. Accordingly, they are said to present a summary of sources and uses of “available spendable resources” during a period.
Because of their spending measurement focus, expenditure recognition  for governmental fund types excludes amounts represented by non-current liabilities. Since they do not affect net current assets, such long-term amounts are not recognized as governmental fund type expenditures or fund liabilities.
Amounts expended to acquire capital assets are recorded as expenditures in  the year  that resources are expended, rather than as fund assets. The  proceeds  of  long-term  debt are recorded as other financing source rather than as a fund liability.
Debt service expenditures are recorded only when payment is due.
The District classifies fund balance according to Governmental Accounting Standards Board Statement 54 – Fund Balance Reporting and Governmental Fund Type  Definitions. The Statement requires the fund balance for governmental funds to be reported in classifications that comprise a hierarchy based primarily on the extent to which the government is bound to honor constraints on the specific purposes for which amounts in those funds can be spent.
The District has various policies governing the fund balance classifications.
Nonspendable Fund Balance – This classification consists of amounts that cannot be spent because they are either not in spendable form or are legally or contractually required to be maintained intact.
Restricted Fund Balance – This classification  includes  amounts  that  can  be  spent  only for specific purposes stipulated by constitution, external resource providers, or through enabling legislation.
Assigned Fund Balance – This classification consists of the Board of Supervisors’ intent to be used for specific purposes, but are neither restricted nor committed. The assigned fund balances can also be assigned by the District’s management company.

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

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

Enterprise Funds

In the fund financial statements, the enterprise fund is presented using the accrual basis of accounting. Revenues are recognized when they are earned and expenses are recognized when the related goods or services are delivered. In the fund financial statements, enterprise funds are presented using the economic resources measurement focus. This means that all assets and all liabilities (whether current or non-current) associated with their activity are included on their balance sheets. Enterprise fund operating statements present increases (revenues)  and  decreases  (expenses)  in  total net position. The District applies all GASB pronouncements as well as FASB  Statements and Interpretations, APB Opinions and Accounting Research Bulletins, issued on or before November 30, 1989, which do not conflict with, or contradict, GASB pronouncements.
Basis of Presentation
Governmental Major Funds
General Fund – The General Fund is the District’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund.
Debt Service Fund – The Debt Service Fund accounts for debt service requirements to retire the revenue and refunding bonds.
Enterprise Major Fund
Enterprise Fund – The Enterprise Fund accounts for the operations of the Golf Course, Pro Shop and Restaurant, which are funded by proceeds from operations of these facilities, including green fees, cart fees and member dues in the form of annual special assessments.

Non-current Governmental Assets/Liabilities

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

Assets, Liabilities, and Net Position or Equity

Cash and Investments

Florida Statutes require state and local governmental units to deposit monies with financial institutions classified as "Qualified Public Depositories," a multiple financial institution pool whereby groups of securities pledged by the various financial institutions provide common collateral from their deposits of public funds. This pool is provided as additional insurance to the federal depository insurance and allows for additional assessments against the member institutions, providing full insurance for public  deposits.
The District is authorized to invest in those financial instruments as established by Section 218.415, Florida Statutes. The authorized investments consist of:
Direct obligations of the United States Treasury;
The Local Government Surplus Funds Trust or any intergovernmental investment pool authorized pursuant to the Florida Interlocal Cooperative Act of 1969;
Interest-bearing time deposits or savings accounts in authorized qualified public depositories;
Securities and Exchange Commission, registered money market funds with the highest credit quality rating from a nationally recognized rating agency.
For purposes of the statement of cash flows, cash equivalents include time deposits, certificates of deposit and all highly liquid debt instruments with original maturities of three months or less and held in a qualified public depository as defined by Chapter 280.02, Florida Statutes.
Receivables and Payables

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

Inventories

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

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

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

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

Infrastructure	30 years
Improvements other than buildings	15 years Recreational facilities	20 years
Equipment	3-7 years
Budgets

Budgets are prepared and adopted after public hearings for the governmental funds, pursuant to Chapter 190 Florida Statutes. The District utilizes the same basis of accounting for budgets as it does for revenues and expenditures in its various funds. Formal budgets are adopted for the general fund. The legal level of budgetary control is at the fund level. As a result, deficits in the budget columns of the accompanying financial statements may occur. All budgeted appropriations lapse at year end.
Deferred Outflows of Resources
Deferred outflows of resources represent a consumption of net position that applies to future periods.  The District reported a deferred amount on refunding on the Statement  of Net Position. A deferred amount on refunding results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt.

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

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

Unamortized Bond Discount

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

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, $920,857 differs from “net position” of governmental activities, $(4,142,570), reported in the Statement of Net Position. This difference primarily results from the long-term economic focus of the Statement of Net Position versus the current financial resources focus of the Governmental Fund Balance Sheet. The effect of the differences is illustrated as follows:

Capital related items
When capital assets (improvements and infrastructure 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	$	10,561,792	
Improvements other than buildings	12,742	
Equipment	266,629	
Accumulated depreciation	 	(9,275,347)	
Total	$	1,565,816	
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, 2019 were:

Bonds payable	$	(6,425,000)	
Bond discount, net	8,485	
Note payable	 	(126,455)	
Total	$	(6,542,970)	

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

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

Deferred outflows of resources

Deferred outflows of resources applicable to the District's governmental activities are not financial resources and therefore, are not reported as fund deferred outflows of resources.

Deferred amount on refunding	$	67,660

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	$	(153,933)
Explanation of Differences Between the Governmental Fund Operating Statements and the Statement of Activities

The “net change in fund balances” for government funds, $12,293, differs from the “change in net position” for governmental activities, $1,587,190, 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.

Depreciation	$	(374,729)

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
Repayments of bond principal are reported as an expenditure in the governmental funds  and, thus, have the effect of  reducing fund balance because current  financial resources  have been used.

Principal payments	$	1,929,703	
Amortization of bond discount	 	(3,284)	
Total	$	1,926,419	
Some expenses reported in the Statement of Activities do not require the use of current financial resources, therefore, are not reported as expenditures in governmental funds.

Net change in accrued interest payable	$	45,760	
Decrease in deferred amount on refunding	 	(22,553)	
Total	$	23,207	
NOTE C – CASH AND INVESTMENTS		
All deposits are held in qualified public depositories and balance sheet as cash and investments.	are included on the accompanying	

Custodial Credit Risk – Deposits
Custodial credit risk is the risk that in the event of a bank failure, the District's deposits may not be returned to it. The District does not have a formal deposit policy for custodial credit risk, however, they follow the provisions of Chapter 280, Florida Statutes regarding deposits and investments. As of September 30, 2019, the District's bank balance was $462,540 and the carrying value was $376,249 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, 2019, the District had the following investments and maturities:

Investment

SBA Local Gov't Surplus Trust Fund Florida Prime
Money Market Account 5 - CT	Maturities

37 days * N/A	Fair Value

$	247,444
 	878,884	
Total
* Weighted Average Maturity		$ 1,126,328	

NOTE C – CASH AND INVESTMENTS (CONTINUED)

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

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

Based on the criteria in the preceding paragraph, the investment in Money Market 5 - CT is a Level 1 asset.

Investments

The District’s investment policy allows management to invest funds in investments permitted under Section 218.415, Florida Statutes.

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.

Interest Rate Risk

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

Credit Risk

The District's investments are limited by state statutory requirements and  bond compliance.  The District has no investment policy that would further limit its investment choices. As of September 30, 2019, the District's investment in SBA Local Government Surplus Trust Fund was rated AAAm by Standard & Poor's.

Concentration of Credit Risk

The District places no limit on the amount it  may  invest  in any one  issuer.  The investment in  SBA Florida Prime represents 22% of the District’s total investments. The remaining 78% is invested in Money Market Account 5 - CT.

The types of deposits and investments and their level of risk exposure as of  September  30, 2019 were typical of these items during the fiscal year then ended. The District considers any decline in fair value to be temporary.

NOTE D – CAPITAL ASSETS
Capital asset activity for the year ended September 30, 2019 was as follows:

	Balance						Balance	
	October 1,						September 30,	
	2018		Additions		Deletions		2019	
Governmental Activities:								
Capital assets, being depreciated:								
Infrastructure	$ 10,561,792		$	-		$	-		$ 10,561,792	
Improvements other than buildings	12,742		-		-		12,742	
Equipment	266,629		-		-		266,629
  10,841,163	
Total Capital Assets, Being Depreciated	   10,841,163		 	-		 	-			
Less accumulated depreciation for:								
Infrastructure	(8,768,593)		(352,060)		-		(9,120,653)	
Improvements other than buildings	(12,742)		-		-		(12,742)	
Equipment	(119,283)		(22,669)		-			(141,952)	
Total Accumulated Depreciation	(8,900,618)		(374,729)		-			(9,275,347)	
Total Capital Assets Depreciated, Net	 $ 	1,940,545		 $ (374,729)		 $		-		 $ 	1,565,816	

Depreciation was charged to physical environment, $374,729.

Balance	Balance
October 1,	September 30,
2018	Additions	Deletions	2019
Business-type Activities:
Capital assets, not being depreciated:
Land	$	872,830	$	-	$	-	$	872,830

Capital assets, being depreciated:
Improvements other than building	5,905,343		-		-	5,905,343	
Recreation facilities	773,247		-		-	773,247	
Equipment	1,420,743		5,550		-	1,426,293	
Total Capital Assets, Being Depreciated	8,099,333		5,550		-	8,104,883	

Less accumulated depreciation for: Improvements other than building	

(5,589,044)		

(31,382)		

-	(5,620,426)	
Recreation facilities	(773,247)		-		-	(773,247)	
Equipment	(1,356,312)		(35,888)		-	(1,392,200)	
Total accumulated depreciation	(7,718,603)		(67,270)		-	(7,785,873)	
Total capital assets depreciated, net	380,730		(61,720)		-	319,010	

Business-type Activities Capital Assets	
$ 1,253,560		
$	(61,720)		
$	-	$ 1,191,840	

Depreciation was charged to the golf course, $67,270.

NOTE E – LONG-TERM DEBT

The following is a summary of debt activity for the District for the year ended September 30, 2019.

		Balance							Balance	
	October 1,							September 30,	
		2018		Additions			Reductions		2019	
Governmental Activities										
Water Management Refunding										
Bonds Series 2006	$	8,335,000		$	-		$ (1,910,000)		$	6,425,000	
Notes Payable		146,148			-		(19,703)		126,445	
Governmental Activities Long-term Debt	$	8,481,148		$	-		$ (1,929,703)		$	6,551,445	

Business-type Activities										
Special Assessment Revenue										
Refunding Bonds Series 2012	$	3,700,000		$	-		$	(395,000)		$	3,305,000	

Long-term debt is comprised of the following:

Water Management Refunding Bonds

Governmental Activities:

$15,000,000 Series 2006 Water Management Refunding Bonds due in annual principal installments beginning May 2015, maturing in May 2022. Interest at a rate of 5.75% is due May 1 and November 1 beginning May 2006. Current portion is
$2,020,000.	$	6,425,000

Bond discount, net	 	(8,485)
Bonds Payable, Net	$	6,416,515

The District entered into an equipment finance agreement to acquire a Rain Bird Pump Station on November 15, 2017. The agreement requires 84 monthly payments of $2,298. The first payment is due on the date the equipment is delivered and the remaining payments are due on the same day of each
subsequent month. Current portion is $20,865.	$ 126,455

The annual requirements to amortize the principal and interest of bonded debt outstanding as of September 30, 2019 are as follows:

		Governmental Activities		
Year Ending				
 September 30,

2020	  	Principal		 Interest		 	

2,020,000	$	369,438	$	Total		
	$		2,389,438	
2021		2,140,000	253,288	2,393,288	
2022		2,265,000	 	130,238	2,395,238	
Totals	$ 	6,425,000	$	752,964	$ 	7,177,964	

Significant Bond Provisions

The Series 2006 Bonds were issued to currently refund and redeem the Water Management Refunding Bonds, Series 1996A and Water Management Bonds, Series 1996B. The District levies special assessments pursuant to Section 190.022, Florida Statutes and the assessment  rolls are approved by resolutions of the District Board. The collections are to be strictly accounted for and applied to the debt service of the bond series for which they were levied. The District covenants to levy special assessments in annual amounts adequate to provide for payment of principal and interest on the bonds. Payment of principal and interest is dependent on the money available in the debt service fund and the District’s ability to collect special assessments levied.

The Series 2006 Bonds are not subject to redemption at the option of the District prior to their maturity. The bonds are subject to extraordinary mandatory redemption prior to maturity, in whole on any date, or in part on an interest payment date, together with accrued interest to the redemption date if monies are available to retire the debt in accordance with the provisions of the indenture.

Depository Funds

The Bond Indenture 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 Bond Indenture provides for a surety bond to be obtained in place of funding for the Debt Service Reserve Fund (the “Reserve Fund”). The Debt Service Reserve Fund Surety Bond constitutes a Debt Service Reserve Fund Insurance Policy under the  Bond Indenture. The District has obtained the required bonding and is in compliance with the reserve requirement.

The annual requirements to amortize the principal and interest of notes payable outstanding as of September 30, 2019 are as follows:

		Governmental Activities		
Year Ending			
 September 	30,	Principal	    Interest		Total	

2020	
$	
20,865	
$	6,717	
$	
27,582	
2021		22,095	5,487		27,582	
2022		23,397	4,184		27,581	
2023		24,776	2,805		27,581	
2024		26,237	1,345		27,582	
2025		9,084	 	108		9,192	
Totals		$	126,454	$	20,646	$		147,100	

Business-Type Activities:

Special Assessment Revenue Refunding Bonds
$5,805,000 Series 2012 Special Assessment  Revenue  Refunding Bonds due in annual principal installments beginning May 2013, maturing in May 2026. Interest at various rates between 2.5% and 5.0% is due May 1 and November 1
beginning May 2012. Current portion is $395,000.	$ 3,305,000

Bond discount, net	 	(15,817)
Bonds Payable, Net	$	3,289,183

NOTE E – LONG-TERM DEBT (CONTINUED)
The annual requirements to amortize the principal and interest of bonded debt outstanding as of September 30, 2019 are as follows:

		Business-type Activities		
Year Ending			
 September 30,	   Principal		 Interest		 		Total		
2020	$	410,000	$	156,825	$	566,825	
2021		425,000	140,425	565,425	
2022		445,000	121,831	566,831	
2023		470,000	101,250	571,250	
2024		490,000	77,750	567,750	
2025-2026
Totals		1,065,000	 	80,500
$  3,305,000	$	678,581	$ 	1,145,500	
			3,983,581	

Significant Bond Provisions

The Series 2012 Bonds were issued to currently refund and redeem the Special Assessment Revenue Refunding Bonds, Series 1996. The District levies special assessments pursuant to Section 190.022, Florida Statutes and the assessment rolls are approved by resolutions of the District Board. The collections are to be strictly accounted for and applied to the debt service of the bond series for which they were levied. The District covenants to levy special assessments  in annual amounts adequate to provide for payment of principal and interest on the bonds. Payment of principal and interest is dependent on the money available in the enterprise fund  and the District’s ability to collect special assessments levied.

The Series 2012 Bonds maturing prior to May 1, 2022 are not subject to redemption at the option of the District prior to their maturity. The bonds maturing on or after May 1, 2023 are subject to redemption prior to maturity at the option of the District at any time after May 1, 2022. The bonds are subject to mandatory redemption requirements in the manner outlined in the Bond Indenture.

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 2012 Special Assessment Revenue Refunding Bonds Reserve Account is funded from the proceeds of the Bonds in an amount equal to fifty percent of the Maximum Annual Debt Service Requirement. Monies held in the reserve accounts will be used only for the purpose established in the Bond Indenture.

NOTE E – LONG-TERM DEBT (CONTINUED)

The following is a schedule of required reserve deposits as of September 30, 2019:

Reserve	Reserve	
    Balance	 Requirement

Special Assessment Revenue Refunding Bonds  Series 2012	$	280,513	$	280,125	

NOTE F – OPERATING LEASES

The District leases golf carts and equipment under various operating lease agreements. The lease terms range from 48 to 84 months. During the year, golf cart and equipment lease payments totaled $189,153. The future estimated minimum lease payments for years ending September 30, are as follows:

Year Ending	Future Minimum	
 September 30,	Lease Payments	
2020		$	196,765	
2021			138,013	
2022			27,671	
2023			2,976	
2024

Total	 	1,488	
		$	366,913	

NOTE G – SPECIAL ASSESSMENT REVENUES
Assessments are non-ad valorem assessments on benefitted property within the District. Operating and Maintenance Assessments are based  upon adopted  budget  and levied annually at a public hearing of the District. Debt Service Assessments are levied when bonds are issued and collected annually. The District may collect assessments directly or utilize the uniform method of collection (Chapter 197.3632, Florida Statutes).  Direct collected assessments are  due as determined by annual assessment resolution adopted by the Board of Supervisors. Assessments collected under the uniform method are due and payable on November 1 or as soon as the assessment roll is certified and delivered to the Tax Collector.  Per  Section  197.162, Florida Statutes, discounts are allowed for early payment at the rate of 4% in November, 3% in December, 2% in January, and 1% in February. Taxes paid in March are without discount.

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

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

NOTE I – DEFICIT FUND EQUITY

At September 30, 2019, the District had an accumulated deficit in the enterprise fund. The accumulated deficit arose primarily from depreciation expense, which is a non-cash item. It is expected that the deficit will be eliminated in subsequent periods through charges for services, including benefit assessments.

NOTE J – INTERFUND BALANCES

Interfund claims at September 30, 2019 consisted of the following:

Payable Fund	
			
Debt Service	
Enterprise			
Receivable Fund		 General Fund	 	Fund		 	Fund		 	Total		
General Fund	$	-	$	6,146	$	18,883	$	25,029	
Enterprise Fund Total	 	32,977	 	22,922	 	-	 	55,899	
	 $		32,977	 $		29,068	 $		18,883	 $		80,928	

Interfund balances are due to expenditures that are paid by one fund on behalf of another fund  or allocated to multiple funds.

Interfund transfers at September 30, 2019 consisted of the following:

 	Transfers Out	

Enterprise	
Transfers In		 General Fund	 	Fund		 	Total		
Enterprise Fund	$	5,550	$	-	$	5,550	
General Fund Total	 		-	 	35,447	 	35,447	
	 $		5,550	 $		35,447	 $		40,997	

The transfer from the General Fund to the Enterprise Fund was to provide funding for capital assets for the Golf Course. The transfer from the Enterprise Fund to the General Fund was to fund operations.

NOTE K – MANAGEMENT AGREEMENTS

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

NOTE L – OTHER INFORMATION

In August 2015, the District entered into a lease agreement for its restaurant facilities effective October 1, 2015. The original lease was for a three-year period terminating  on  September 30,  2018, with an option to extend for two one year periods. The base rent for the first year is set  to zero.  For year two to three, the tenant will pay 8% of gross sales, not including sales tax. If the  lease is extended, the payment  will increase to 10%  of gross sales. The lease  was amended in   April 2016 to provide for a rent reduction of  $34,036  over the  remaining term  of  the lease,  and an additional lease year. The rent reduction term is the period in which the tenant will receive a temporary rent reduction based on a formula specified in the  lease  until  the  rent  reduction  amount is reduced to zero.  During the rent reduction term, the tenant will pay  4% of gross sales,  not including sales tax through September 30, 2018. If the lease is extended for one year, the payment will increase to 6% of gross sales. After the expiration of the rent reduction term, the percentage rent  will return  to  6% through September  30, 2018  and 10% for  a  subsequent year,   if any. During the current fiscal year, the District  extended  the  lease  through  September  30,  2019. During a prior fiscal year, in accordance with the terms of the lease, the District received
$2,000 from the tenant for use of equipment, and a security deposit of $8,000. Rental revenues for the current fiscal year were $15,231.

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

To the Board of Supervisors
Viera East Community Development District Brevard 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 Viera East Community Development District, as of and for the year ended September 30, 2019, and the related notes to the financial statements, and have issued our  report thereon dated June 12, 2020.

Internal Control Over Financial Reporting

In planning and performing our audit, we considered Viera East Community Development District's internal control over financial reporting to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of Viera East Community Development District’s internal control. Accordingly, we do not express an opinion on the effectiveness of Viera East Community Development District's internal control over financial reporting.

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 over financial reporting 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.

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To the Board of Supervisors
Viera East Community Development District

Compliance and Other Matters

As part of obtaining reasonable assurance about whether Viera East 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 12, 2020

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MANAGEMENT LETTER

To the Board of Supervisors
Viera East Community Development District Brevard County, Florida

Report on the Financial Statements

We have audited the financial statements of the Viera East Community Development District as of and for the year ended September 30, 2019, and have issued our report thereon dated June, 12, 2020.

Auditor’s Responsibility

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

Other Reporting Requirements

We have issued our Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards and our Independent Auditor’s Report on an examination conducted in accordance with AICPA Professionals Standards, AT-C Section 315, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports, which are dated June 12, 2020, should be considered in conjunction with this management letter.

Prior Audit Findings

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

2018-01

Finding:	The actual expenditures in the General Fund exceeded the budget which is a violation of Section 189.016, Florida Statutes.

Response:	Management will review spending to ensure that expenditures do not exceed appropriations in the future.

Status:	The finding was corrected in the current year.

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To the Board of Supervisors
Viera East 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 Viera East 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 Viera East Community Development District did not meet any of the conditions described in Section 218.503(1) Florida Statutes.

Pursuant to Sections 10.554(1)(i)5.c. and 10.556(8), Rules of the Auditor General, we applied financial condition assessment procedures for Viera East Community Development District. It is management’s responsibility to monitor the Viera East 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, 2019.

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 warrants the attention of those charged with governance. In connection with our audit, we noted no such findings.

Purpose of this Letter

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

Berger, Toombs, Elam, Gaines & Frank Certified Public Accountants PL
Fort Pierce, Florida June 12, 2020

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INDEPENDENT ACCOUNTANT’S REPORT/COMPLIANCE WITH SECTION 218.415, FLORIDA STATUTES

To the Board of Supervisors
Viera East Community Development District Brevard County, Florida

We have examined Viera East Community Development District's compliance with Section 218.415, Florida Statutes during the year ended September 30, 2019. Management is responsible for Viera East Community Development District’s compliance with those requirements. Our responsibility is to express an opinion on Viera East 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 Viera East 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 Viera East Community Development District’s compliance with the specified requirements.

In our opinion, Viera East Community Development District complied, in all material respects, with the aforementioned requirements during the year ended September 30, 2019.

Berger, Toombs, Elam, Gaines & Frank Certified Public Accountants PL
Fort Pierce, Florida June 12, 2020

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