Viera East Community Development District

ANNUAL FINANCIAL REPORT

September 30, 2020

Viera East Community Development District ANNUAL FINANCIAL REPORT
September 30, 2020 TABLE OF CONTENTS

Page Number

REPORT OF INDEPENDENT AUDITORS	1-2
MANAGEMENT’S DISCUSSION AND ANALYSIS	3-8
BASIC FINANCIAL STATEMENTS
Government-wide Financial Statements
Statement of Net Position	9
Statement of Activities	10
Fund Financial Statements
Balance Sheet – Governmental Funds	11
Reconciliation of Total Governmental Fund Balances
to Net Position of Governmental Activities	12
Statement of Revenues, Expenditures and Changes in
Fund Balances – Governmental Funds	13
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds
to the Statement of Activities	14
Statement of Revenues, Expenditures and Changes in Fund
Balances – Budget and Actual – General Fund	15
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 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	37-38
MANAGEMENT LETTER	39-40
INDEPENDENT ACCOUNTANTS’ 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
We have audited the accompanying financial statements Viera East Community Development District (the “District”) as of and for the year ended September 30, 2020, and the related notes to financial statements, which collectively comprise the District’s basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express 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, 2020, 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 29, 2021 on our consideration of the District’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations and contracts.
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 29, 2021

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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 capital asets 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, 2020:

The District’s total liabilities exceeded total assets and deferred outflows of resources by
$(4,276,160) (net position). Net investment in capital assets for Governmental Activities was $(3,793,246). Net investment in capital assets for Business-type Activities was
$(1,273,642). Unrestricted net position for Governmental Activities was $299,642 and  for Business-type Activities was $158,511. Restricted net position for Governmental Activities was $332,575.

OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)

Financial Highlights (Continued)

Governmental activities revenues and transfers totaled $3,250,263, while governmental activities expenses totaled $2,268,722. Business-type Activities revenues totaled
$2,373,334 while Business-type Activities expenses and transfers totaled $2,033,288.

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.

Net Position

	Governmental Activities		Business-type Activities		Total	
	 	2020	 	2019			 	2020	 	2019			 	2020	 	2019		
Current assets	$	404,651	$	536,794		$	395,594	$	281,986		$	800,245	$	818,780	
Prepaid bond insurance	190,889	-		-	-		190,889	-	
Restricted assets	7,247,247	516,489		284,233	362,395		7,531,480	878,884	
Capital assets, net	 	1,271,855 	1,565,816 		 	1,138,839 	1,191,840 		 	2,410,694 	2,757,656 	
Total Assets	 	9,114,642 	2,619,099 		 	1,818,666 	1,836,221 		 	10,933,308 	4,455,320 	
Deferred outflows	 	45,107 	67,660 		 	130,973 	159,029 		 	176,080 	226,689 	
Current liabilities	2,338,130	2,327,224		608,184	571,244		2,946,314	2,898,468	
Non-current liabilities	 	9,982,648 	4,502,105 		 	2,456,586 	2,879,183 		 	12,439,234 	7,381,288 	
Total Liabilities	 	12,320,778 	6,829,329 		 	3,064,770 	3,450,427 		 	15,385,548 	10,279,756 	

Net Position
Net investment in
capital assets	(3,793,246)	(4,909,494)	(1,273,642)	(1,658,189)	(5,066,888)	(6,567,683)	
Restricted	332,575	333,488	-	16,926	332,575	350,414	
Unrestricted	 	299,642 	433,436 	 	158,511 	186,086 	 	458,153 	619,522 	
Total Net Position	  $ (3,161,029) $ (4,142,570)	  $ (1,115,131) $ (1,455,177)	  $ (4,276,160) $ (5,597,747)	

The increase in restricted assets for governmental activities is the result of the bond proceeds in the current year.

The decrease in capital assets, net for governmental activities and business-type activities is the result of depreciation for the current year.

The increase in non-current liabilities for governmental activities is the result of issuing new long-term debt in the current year and the decrease in business-type activities is primarily the result of principal payments made during the 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

 	2020	 	2019	 	2020	 	2019	 	2020	 	2019	
Program Revenues

Charges for services General Revenues

$ 3,184,454

$ 3,246,025

$ 2,333,271

$ 2,285,799

$ 5,517,725

$ 5,531,824

Investment earnings	4,100	9,442	249	966	4,349	10,408	
Miscellaneous	 	56,280 	 	56,280 	 	39,814 	 	38,704 	 	96,094 	 	94,984 	
Total Revenues	3,244,834	3,311,747	2,373,334	2,325,469	5,618,168	5,637,216	

Expenses							
General government	224,920	321,716	-	-	224,920	321,716	
Physical environment	1,031,024	965,521	-	-	1,031,024	965,521	
Interest and other charges	1,012,778	467,217	-	-	1,012,778	467,217	
Golf course	 	- 	 	- 	 	2,027,859 	2,016,870 	2,027,859 	 	2,016,870 	
Total Expenses	 	2,268,722 	 	1,754,454 	 	2,027,859 	2,016,870 	4,296,581 	 	3,771,324 	
Transfers	 	5,429 	 	29,897 	 	(5,429) 	(29,897) 	- 	 	- 	
Change in Net Position	981,541	1,587,190	340,046	278,702	1,321,587	1,865,892	
Net Position - Beginning of Year	 	(4,142,570)	 	(5,729,760)	 	(1,455,177) 	(1,733,879) 	(5,597,747)	 	(7,463,639)	
Net Position - End of Year	  $ (3,161,029)	  $ (4,142,570)	  $ (1,115,131) $ (1,455,177) $ (4,276,160)	  $ (5,597,747)	

The decrease in general government for governmental activities is primarily related to litigation expenses in the prior year.

The increase in government activities interest and other charges is primarily related to the bond issuance costs associated with the issuance of long-term debt 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, 2020.

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	347,397	1,433,992	1,781,389	
Accumulated depreciation	 	(9,650,076)	 	(7,846,573)	 	(17,496,649)	

Total Capital Assets (Net)

  $	1,271,855 

  $	1,138,839 

  $	2,410,694 

 	 	

The governmental activities capital assets activity in the current year includes depreciation of
$374,729 and addition to equipment of $80,768.

Business-type activities changes in the current year include depreciation of $60,700, and capital asset additions to equipment of $7,699.

General Fund Budgetary Highlights

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

The September 30, 2020 budget was not amended.

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, 2020, the balance outstanding was $4,405,000.

In July 2020, the District issued $7,685,000 Series 2020 Special Revenue Assessment Bonds. These bonds were issued to provide funding for paying costs of the Series 2020 Project. As of September 30, 2020, the balance outstanding was $7,685,000.

In November 2017, the District entered into an equipment finance agreement to acquire a Rain Bird Pump Station. As of September 30, 2020, the balance outstanding was $105,590.

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, 2020 the balance outstanding was $2,895,000.

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 2021.

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.

Viera East Community Development District	
STATEMENT OF NET POSITION	
September 30, 2020	

Governmental	
Activities	

Business-type	
Activities	

ASSETS		
Current Assets:		
Cash and equivalents	$	356,773	
Investments	88,811	
Accounts receivable, net	-	
Due from other governments	-	
Inventory	-	
Prepaid expenses	12,352	
Internal balances	 	(53,285)	
Total Current Assets	 	404,651 	
Non-Current Assets:		
Prepaid bond insurance	190,889	
Restricted assets:		
Investments	7,247,247	
Capital assets not being depreciated:		
Land	-	
Capital assets being depreciated:		
Infrastructure	10,561,792	
Improvements other than buildings	12,742	
Recreation facilities	-	
Equipment	347,397	
Less: Accumulated depreciation	 	(9,650,076)	
Total Non-Current Assets	 	8,709,991 	
Total Assets	 	9,114,642 	

$	167,124	
-	
1,735	
2,678	
71,398	
99,374	
 	53,285 	
 	395,594 	

$	523,897	
88,811	
1,735	
2,678	
71,398	
111,726	
 	- 	
 	800,245 	

-	190,889	
284,233	7,531,480	
872,830	872,830	

Total

-	
5,905,343	
773,247	
1,433,992	
 	(7,846,573)	
 	1,423,072 	
 	1,818,666 	

10,561,792	
5,918,085	
773,247	
1,781,389	
 	(17,496,649)	
 	10,133,063 	
 	10,933,308 	

DEFERRED OUTFLOWS OF RESOURCES	
Deferred amount on refunding	

45,107	130,973	176,080

LIABILITIES	
Current Liabilities:	
Accounts payable and accrued expenses	
Unearned revenues	
Customer deposits, payable from restricted assets	
Accrued interest	
Bonds payable	
Note payable	
Total Current Liabilities	
Non-Current Liabilities:	
Bonds payable, net	
Note payable	
Total Non-Current Liabilities	
Total Liabilities	

33,371	
-	
-	
142,664	
2,140,000	
 	22,095 	
 	2,338,130 	

54,940	
67,436	
2,298	
58,510	
425,000	
 	- 	
 	608,184 	

88,311	
67,436	
2,298	
201,174	
2,565,000	
 	22,095 	
 	2,946,314 	

NET POSITION	
Net investment in capital assets	
Restricted for debt service	
Unrestricted	
Total Net Position	

(3,793,246)	
332,575	
 	299,642 	
  $	(3,161,029)	

(1,273,642)	
-	
 	158,511 	
  $	(1,115,131)	

(5,066,888)	
332,575	
 	458,153 	
  $	(4,276,160)	

9,899,153	
 	83,495 	
 	9,982,648 	
 	12,320,778 	

2,456,586	
 	- 	
 	2,456,586 	
 	3,064,770 	

12,355,739	
 	83,495 	
 	12,439,234 	
 	15,385,548 	

See accompanying notes to financial statements.
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Viera East Community Development District	
STATEMENT OF ACTIVITIES	
For the Year Ended September 30, 2020	

Program	Net (Expense) Revenue and	
Revenues	Changes in Net Position	

Charges for	Governmental	
Services	Activities	

Functions/Programs	
Governmental Activities	
General government	
Physical environment	
Interest on long-term debt	
Total Governmental Activities	

Expenses

Total

$	(224,920)	
(1,031,024)	
 	(1,012,778)	
  $ (2,268,722)	

 	

$	206,273	
$	(18,647)	
601,884	(429,140)	
 	2,376,297 	 	1,363,519 	
  $	3,184,454 	915,732	

 	
$	-	
-	
 	- 	
-	

 	

$	(18,647)	
(429,140)	
 	1,363,519 	
915,732	

Business-type activities	
Golf course	

  $ (2,027,859)

  $	2,333,271 

-	305,412	305,412

Business-type	
Activities	

  

General revenues:	
Investment earnings	
Miscellaneous revenues	
Total General Revenues	

 	
4,100	
56,280	
60,380	

 	
249	
39,814	
40,063	

 	
4,349	
96,094	
100,443	

Transfers	 		5,429	 		(5,429)	 		- Change in Net Position		981,541		340,046		1,321,587

Net Position - October 1, 2019	
Net Position - September 30, 2020	

 
 	(4,142,570)	
  $	(3,161,029)	

 	
 	(1,455,177)	
  $	(1,115,131)	

 	
 	(5,597,747)	
  $ (4,276,160)	

See accompanying notes to financial statements.
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Viera East Community Development District	
BALANCE SHEET –	
GOVERNMENTAL FUNDS	
September 30, 2020	

Total	
Governmental	
Funds	

Debt	Capital	
Service	Projects	

Cash	
Investments	
Due from other funds	
Prepaid expenses	
Restricted assets:	
Investments, at fair value	
Total Assets	

$ 356,773	
88,811	
91,798	
12,352	

$	-	
-	
-	
-	

$	-	
-	
-	
-	

$	356,773	
88,811	
91,798	
12,352	

-	1,157,696	6,089,551		7,247,247	
  $ 	549,734 	  $1,157,696 	  $6,089,551 	  $		7,796,981 	

ASSETS	General

LIABILITIES AND FUND BALANCES	
LIABILITIES	
Accounts payable and accrued expenses	
Due to other funds	
Total Liabilities	

$	33,371	
 	30,363 	
 	63,734 	

$	33,371	
 	145,083 	
 	178,454 	

FUND BALANCES	
Nonspendable-prepaid	
Restricted for debt service	
Restricted for capital projects	
Assigned capital reserves	
Unassigned	
Total Fund Balances	

12,352	-	-	12,352	
-	1,123,744	-	1,123,744	
-	-	6,008,783	6,008,783	
260,786	-	-	260,786	
 	212,862 	 	- 	 	- 	 	212,862 	
486,000	1,123,744	6,008,783	7,618,527	

$	-	
 	33,952 	
 	33,952 	

$	-	
 	80,768 	
 	80,768 	

Total Liabilities and Fund Balances	
  $ 549,734 	

  $1,157,696 

  $6,089,551 

  $	7,796,981 

See accompanying notes to financial statements.

Viera East Community Development District	
RECONCILIATION OF TOTAL GOVERNMENTAL FUND BALANCES	
TO NET POSITION OF GOVERNMENTAL ACTIVITIES	
September 30, 2020	

Total Governmental Fund Balances

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

$	7,618,527

Capital assets being depreciated, infrastructure ($10,561,792), improvements other	
than buildings ($12,742) and equipment ($347,397), net of accumulated	
depreciation ($(9,650,076)) used in governmental activities are not current	
financial resources and, therefore, are not reported at the fund level.	

1,271,855

Long-term liabilities, including bonds payable, ($(12,090,000)), net of bond discounts,	
net, ($50,847) and note payable ($(105,590)) are not due and payable in th	e	
current period and therefore, are not reported at the fund level.	(12,144,743)	

Prepaid bond insurance was recognized as an other debt service cost at the	
fund level in the year the debt was issued, however, at the government-wide	
level it is recognized as an asset an amortized over the life of the bonds.	

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

190,889

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

45,107

Net Position of Governmental Activities

 	(142,664)

  $	(3,161,029)

See accompanying notes to financial statements.

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

Total	
Governmental	
 	Funds		

Debt	
 	Service		

Capital	
 	Projects		

$	-	
-	
 	40 	
 	40 	

 	General	

Revenues:	
Special assessments	
Miscellaneous revenues	
Investment earnings	
Total Revenues	

 	
$ 808,157	
56,280	
 	3,097 	
 	867,534 	

 
$ 2,376,297	
-	
 	963 	
 	2,377,260 	

 	
$	3,184,454	
56,280	
 	4,100 	
 	3,244,834 	

Expenditures:	
Current	
General government	
Physical environment	
Capital outlay	
Debt service	
Principal	
Interest	
Other debt service costs	
Total Expenditures	

224,920	
656,295	
-	

-	
-	
-	

-	
-	
80,768	

224,920	
656,295	
80,768	

20,865	
6,717	
 	- 	
 	908,797 	

2,020,000	
369,438	
 	- 	
 	2,389,438 	

-	
-	
 	812,403 	
 	893,171 	

2,040,865	
376,155	
 	812,403 	
 	4,191,406 	

Excess of revenues over/(under)	
expenditures	

 	(41,263)	 	(12,178)	 	(893,131)	 	(946,572)

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

-	
-	
101,527	
 	(7,700)	
 	93,827 	

648,501	
-	
-	
 	- 	
 	648,501 	

7,036,499	
(46,187)	
-	
 	(88,398)	
 	6,901,914 	

7,685,000	
(46,187)	
101,527	
 	(96,098)	
 	7,644,242 	

Net Change in Fund Balances	52,564	636,323	6,008,783	6,697,670	
Fund Balances - October 1, 2019	 	433,436 	 	487,421 	 	- 	 	920,857 	
Fund Balances - September 30, 2020	  $ 486,000 	   $ 1,123,744 	   $ 6,008,783 	  $	7,618,527 	

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

Net Change in Fund Balances - Total Governmental Funds

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

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

$ 6,697,670

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 that depreciation, $(374,729),	
exceeded capital outlay, $80,768, in the current period.	

(293,961)

(7,685,000)

The purchase of bond insurance is recorded as an other debt service cost at the fund level,	
however, it is treated as a prepaid expense and amortized over the life of the bond at the	
government-wide level.	

193,555

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

46,187

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

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.	

2,040,865

Amortization of prepaid bond insurance reported in the Statement of Activities does not	
require the use of current financial resources and therefore, is not reported as an	
expenditure at the fund level.	

(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 at the fund level.	

(2,666)

(3,825)

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.	 	11,269 	

Change in Net Position of Governmental Activities	 $	981,541 

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

Variance with	
Final Budget	
Positive	
(Negative)	

Original	Final	
Budget	Budget	Actual	

Revenues	
Special assessments	
Miscellaneous revenues	
Investment earnings	
Total Revenues	

$ 808,156	
$ 808,156	
$ 808,157	
$	1	
56,280	56,280	56,280	-	
2,600	2,600	3,097	497	
867,036	867,036	867,534	498	

Expenditures	
Current	
General government	
Physical environment	
Capital outlay	
Debt service	
Principal	
Interest	
Total Expenditures	

178,404	
707,413	
100,000	

178,404	
707,413	
100,000	

224,920	
656,295	
-	

(46,516)	
51,118	
100,000	

-	
 	- 	
 	985,817 	

-	
 	- 	
 	985,817 	

20,865	
 	6,717 	
 	908,797 	

(20,865)	
 	(6,717)	
 	77,020 	

Excess of revenues over/(under)	
expenditures	

 	(118,781)       (118,781) 	(41,263)	 	77,518 

Other Financing Sources/(Uses)	
Transfers in	
Transfers out	
Total Other Financing Sources/(Uses)	

7,940	
 	- 	
 	7,940 	

7,940	
 	- 	
 	7,940 	

101,527	
 	(7,700)	
 	93,827 	

93,587	
 	(7,700)	
 	85,887 	

0 	263,550 	 	433,436 	 	169,886 	
9 $ 152,709 	  $ 	486,000 	  $		333,291 	

Net Change in Fund Balances		(110,841)	(110,841)	52,564	163,405 Fund Balances - October 1, 2019	 		263,55
Fund Balances - September 30, 2020	 $   152,70

Viera East Community Development District	
STATEMENT OF FUND NET POSITION – ENTERPRISE FUND	
September 30, 2020	

$	167,124	
1,735	
53,285	
2,678	
99,374	
71,398	
395,594	

ASSETS	
Current Assets	
Cash and equivalents	
Accounts receivable	
Due from other funds	
Due from other governments	
Prepaid expenses	
Inventories	
Total Current Assets	
Non-Current Assets	
Restricted Assets	
Investments	
Capital Assets	
Land	
Improvements other than buildings	
Recreational facilities	
Equipment	
Less: Accumulated depreciation	
Total Non-Current Assets	
Total Assets	

284,233

872,830	
5,905,343	
773,247	
1,433,992	
(7,846,573)	
1,423,072	
1,818,666	

DEFERRED OUTFLOWS OF RESOURCES	
Deferred amount on refunding	

LIABILITIES	
Current Liabilities	
Accounts payable and accrued expenses	
Customer deposits payable from restricted assets	
Unearned revenues	
Accrued interest payable	
Bonds payable	
Total Current Liabilities	
Non-Current Liabilities	
Bonds payable	
Total Liabilities	

54,940	
2,298	
67,436	
58,510	
425,000	
608,184	

130,973

NET POSITION	
Net investment in capital assets	
Unrestricted	

(1,273,642)	
158,511	

2,456,586	
3,064,770	

Total Net Position	 $	(1,115,131)

Viera East Community Development District	
STATEMENT OF REVENUES, EXPENSES AND CHANGES	
IN FUND NET POSITION – ENTERPRISE FUND	
For the Year Ended September 30, 2020	

Operating Revenues:	
Charges for services	
Miscellaneous revenues	
Total Operating Revenues	

$ 1,739,287	
 	39,814 	
 	1,779,101 	

Operating Expenses:	
Personal services	
Contractual and professional services	
Supplies and expenses	
Repairs and maintenance	
Utilities	
Rent and lease expense	
Depreciation	
Total Operating Expenses	

827,509	
258,575	
340,424	
45,710	
66,469	
248,023	
 	60,700 	
1,847,410	

Operating Income/(Loss)	 	(68,309)

Nonoperating Revenues/(Expenses)	
Special assessments	
Investment income	
Interest expense	
Total nonoperating revenues/(expenses)	

593,984	
249	
 	(180,449)	
 	413,784 	

Net Income before transfers	345,475

Transfers in	
Transfers out	

7,700	
 	(13,129)	

Change in net position	340,046	
Net Position - October 1, 2019	 	(1,455,177)	
Net Position - September 30, 2020	   $ (1,115,131)	

See accompanying notes to financial statements.

Viera East Community Development District	
STATEMENT OF CASH FLOWS – ENTERPRISE FUND	
For the Year Ended September 30, 2020	

CASH FLOWS FROM OPERATING ACTIVITIES	
Receipts from customers	
Receipts from other sources	
Payments to suppliers for goods and services	
Payments to employees for services	
Net Cash Provided by Operating Activities	

$ 1,758,442	
39,814	
(959,437)	
 	(827,509)	
 	11,310 	

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES	
Transfers in	
Transfers out	
Net cash provided by noncapital financing activities	

7,700	
 	(13,129)	
 	(5,429)	

CASH FROM CAPITAL AND RELATED FINANCING ACTIVITIES	
Special assessment proceeds	
Acquisition and construction of capital assets	
Interest payments on long-term debt	
Principal payments on bonds payable	
Net Cash Provided/(Used) by Investing Activities	

593,984	
(7,699)	
(156,824)	
 	(410,000)	
 	19,461 	

CASH FLOWS FROM INVESTING ACTIVITIES	
Proceeds from sales of investments	
Purchases of investments	
Interest on cash and investments	
Net cash provided by investing activities	

566,825	
(488,663)	
 	249 	
 	78,411 	

Net increase in cash and cash equivalents	103,753

Cash and equivalents - October 1, 2019	 	63,371 

Cash and equivalents - September 30, 2020

RECONCILIATION OF OPERATING INCOME TO NET	
CASH PROVIDED BY OPERATING ACTIVITIES	
Operating income	
Adjustments to reconcile operating income to net cash	
provided by operating activities:	
Depreciation expense	
Decrease in accounts receivable	
Increase in prepaid expenses	
Decrease in inventories	
Decrease in due from other funds	
Increase in accounts payable and accrued expenses	
Decrease in due to other funds	
Increase in customer deposits	
Increase in unearned revenues	

Net Cash Provided by Operating Activities

$	167,124

$	(68,309)

60,700	
392	
(19,546)	
25,568	
2,614	
10,011	
(18,883)	
1,612	
17,151	

$	11,310

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

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

Governmental activities, which normally are supported by special assessments and interest, are reported separately from business-type activities. Program  revenues include charges for services 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.

Capital Projects Fund – The Capital Projects Fund accounts for acquisition and construction of infrastructure improvements located within the boundaries of the District.
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.
Prepaid Bond Insurance
Prepaid bond insurance associated with the issuance of refunding bonds are presented on the financial statements as a non-current asset and amortized over the life of the bonds using the straight-line method.
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, $7,618,527, differs from “net position” of governmental activities, $(3,161,029), 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	347,397	
Accumulated depreciation	 	(9,650,076)	
Total	$	1,271,855	
Long-term debt transactions
Long-term liabilities applicable to the District’s governmental activities are not due and payable in the current period and accordingly are not reported as fund liabilities.  All liabilities (both current and long-term) are reported in the Statement of Net Position. Balances at September 30, 2020 were:

Bonds payable	$	(12,090,000)	
Bond discount, net	50,847	
Note payable	 	(105,590)	
Total	$	(12,144,743)	

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)

Prepaid bond insurance
Prepaid bond insurance is recognized as an asset at the government-wide level and amortized over the life of the long-term debt.
Prepaid bond insurance	$	190,889

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	$	45,107

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	$	(142,664)
Explanation of Differences Between the Governmental Fund Operating Statements and the Statement of Activities

The “net change in fund balances” for government funds, $6,697,670, differs from the “change in net position” for governmental activities, $981,541, 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)	
Capital outlay	 	$80,768	
Total	$	(293,961)	

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	$	2,040,865	
Prepaid bond insurance	193,555	
Issuance of long-term debt	(7,685,000)	
Bond discount	46,187	
Amortization of bond discount	 	(3,825)	
Total	$	(5,408,218)	
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	$	11,269	
Decrease in deferred amount on refunding	$	(22.553)	
Decrease in prepaid bond insurance	$	(2,666)	
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, 2020, the District's bank balance and carrying value were
$523,897. Exposure to custodial credit risk was as follows. The District maintains all deposits in a qualified public depository in accordance with the provisions of Chapter 280, Florida Statutes, which means that all deposits are fully insured by Federal Depositors Insurance or collateralized under Chapter 280, Florida Statutes.
As of September 30, 2020, the District had the following investments and maturities:

Investment		Maturities		Fair Value	
SBA Local Gov't Surplus Trust Fund Florida Prime		
48 days *		
$	88,811	
Money Market Account 5 - CT		N/A		 	7,531,480 	
Total				  $ 7,620,291 	
* Weighted Average Maturity

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 Account 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, 2020, 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 1% of the District’s total investments. The remaining 99% is invested in Money Market Account 5 - CT.

The types of deposits and investments and their level of risk exposure as of September 30, 2020 were typical of these items during the fiscal year then ended. The District considers any decline in fair value to be temporary.

NOTE D – CAPITAL ASSETS
Capital asset activity for the year ended September 30, 2020 was as follows:

	Balance October 1,
2019		Balance September 30,
Additions	Deletions	2020	
Governmental Activities:			 	
Capital assets, being depreciated:				
Infrastructure	$ 10,561,792		$	-	$	-	$ 10,561,792	
Improvements other than buildings	12,742		-	-	12,742	
Equipment	 	266,629 		 	80,768 	- 	347,397 	
Total Capital Assets, Being Depreciated	 	10,841,163 		 	80,768 	- 10,921,931 	
Less accumulated depreciation for:				
Infrastructure	(9,120,653)		(352,060)	-	(9,472,713)	
Improvements other than buildings	(12,742)		-	-	(12,742)	
Equipment	 	(141,952)		 	(22,669)	 	- 	(164,621)	
Total Accumulated Depreciation	 	(9,275,347)		 	(374,729)	 	- 	(9,650,076)	
Total Capital Assets Depreciated, Net	  $ 1,565,816 		  $ (293,961)	 $	- $ 1,271,855 	

Depreciation was charged to physical environment, $374,729.
Balance	Balance
October 1,	September 30,
2019	Additions	Deletions	2020

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	1,426,293		7,699		-	1,433,992	
Total Capital Assets, Being Depreciated	8,104,883		7,699		-	8,112,582	

Less accumulated depreciation for: Improvements other than building	

(5,620,426)		

(31,382)		

-	(5,651,808)	
Recreation facilities	(773,247)		-		-	(773,247)	
Equipment	(1,392,200)		(29,318)		-	(1,421,518)	
Total Accumulated Depreciation	(7,785,873)		(60,700)		-	(7,846,573)	
Total Capital Assets Depreciated, Net	319,010		(53,001)		-	266,009	

Business-type Activities Capital Assets	
$ 1,191,840		
$	(53,001)		
$	-	$ 1,138,839	

Depreciation was charged to the golf course, $60,700.

NOTE E – LONG-TERM DEBT

The following is a summary of debt activity for the District for the year ended September 30, 2020.

Governmental Activities
Water Management Refunding

Balance	Balance
October 1,	September 30,	Due Within
 	2019	 	Additions	 Reductions 	2020		 One Year 

Bonds Series 2006 Special Revenue Assessment

$ 6,425,000	$

-	$ (2,020,000)

$	4,405,000

$ 2,140,000

Bonds Series 2020	-		7,685,000		-		7,685,000		-	
Notes Payable	 	126,455 		 	- 		 	(20,865)		 	105,590 		 	22,095 	
Governmental Activities Long-term Debt	  $ 6,551,455 		$ 7,685,000		$ (2,040,865)		$ 12,195,590		$ 2,162,095	

Business-type Activities Special Assessment Revenue
Refunding Bonds Series 2012	

  $ 3,305,000 		

$	-		

$	(410,000)		

$	2,895,000		

$	425,000	

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
$2,140,000.	$	4,405,000
$7,685,000 Series 2020 Special Revenue Assessment Bonds due in annual principal installments beginning May 2023, maturing in May 2038. Interest at rates ranging from 2.00% - 2.75% is due May 1 and November 1 beginning November
2020.	 7,685,000
Bonds Payable	12,090,000
Bond discount, net	 	(50,847)
Bonds Payable, net	$  12,039,153

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 $22,095.	$ 105,590 

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

Governmental Activities
 	
Year Ending

   September 30,		Principal	Interest	Total

2021	$ 2,140,000		$	395,773		$ 2,535,773	
2022	2,265,000		310,853		2,575,853	
2023	475,000		180,615		655,615	
2024	490,000		171,115		661,115	
2025	500,000		161,315		661,315	
2026-2030	2,355,000		646,875		3,001,875	
2031-2035	2,170,000		408,595		2,578,595	
2036-2038	 	1,695,000 		100,650		1,795,650	
Totals	  $ 12,090,000 		$ 2,375,791		$ 14,465,791	

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 and Series 2020 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 for Series 2006 and on or after May 1, 2031 for Series 2020, 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, 2020 are as follows:

Year Ending
   September 30, 	
 	Principal		
 	Interest		
 	Total		
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	 	9,085 	 	108 	 	9,193 	
Totals	  $	105,590 	  $	13,929 	  $	119,519 	

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.	$ 2,895,000

Bond discount, net	 	(13,414)
Bonds Payable, Net	$	2,881,586 

NOTE E – LONG-TERM DEBT (CONTINUED)
The annual requirements to amortize the principal and interest of bonded debt outstanding as of September 30, 2020 are as follows:

Business-type Activities

Year Ending
   September 30, 	Principal		 	Interest		 	Total	

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	520,000	53,250	573,250	
2026	 	545,000 	 	27,250 	 	572,250 	
Totals	  $ 2,895,000 	  $	521,756 	  $ 3,416,756 	

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, 2020:

Reserve	Reserve
 	Balance	 Requirement 

Special Assessment Revenue Refunding Bonds Series 2012

$	280,148	$

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 $248,023. The future estimated minimum lease payments for years ending September 30, are as follows:

Year Ending	Business-type
 	September 30,		Activities
 	
2021	$	106,306
2022	81,611
2023	 	1,488 

Total	$	189,405

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, 2020, 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 balances at September 30, 2020, consisted of the following:

Payable Fund			
	General		Debt Service	Capital		
 Receivable Fund 		 	Fund			 	Fund		 Projects Fund 		 	Total		
General Fund		$	-		$	11,030	$	80,768		$	91,798	
Enterprise Fund		 	30,363 		 	22,922 	 	- 		 	53,285 	
Total		  $	30,363 		$	33,952	$	80,768		$ 145,083	

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

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

 Transfers In	

General
 	Fund	

Transfers Out
Capital
 Projects Fund 

Enterprise
 	Fund	

 	Total	

Enterprise Fund

$	7,700	$

-	$	-

$	7,700

General Fund	 	- 	88,398 	13,129 	101,527 

Total

  $	7,700	$

88,398

$	13,129

$ 109,227

Transfer from the General Fund to the Enterprise Fund was to fund capital assets at the Golf Course. Transfer from the Enterprise Fund to the General Fund was to fund operations. Transfer from Capital Projects Fund to the General Fund was to fund legal expenses related to the new debt issuance and capital project.

NOTE K – 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, 2020. 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 $15,870.

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
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, 2020, and the related notes to the financial statements, and have issued our report thereon dated June 29, 2021.

Internal Control Over Financial Reporting

In planning and performing our audit, we considered Viera East 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 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.

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

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

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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 29, 2021

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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, 2020, and have issued our report thereon dated June, 29, 2021.

Auditor’s Responsibility

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

Other Reporting Requirements

We have issued our Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards and our Independent Auditor’s Report on an examination conducted in accordance with AICPA Professionals Standards, AT-C Section 315, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports, which are dated June 29, 2021, should be considered in conjunction with this management letter.

Prior Audit Findings

Section 10.554(1)(i)1., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding financial audit report. There were no findings or recommendations in the preceding financial audit report.

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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.b. 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, 2020.

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 29, 2021

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INDEPENDENT ACCOUNTANTS’ 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, 2020. 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, 2020.

Berger, Toombs, Elam, Gaines & Frank Certified Public Accountants PL
Fort Pierce, Florida June 29, 2021

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