VIERA EAST
COMMUNITY DEVELOPMENT DISTRICT BREVARD COUNTY, FLORIDA FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022

VIERA EAST COMMUNITY DEVELOPMENT DISTRICT BREVARD COUNTY, FLORIDA

TABLE OF CONTENTS

	  Page		
INDEPENDENT AUDITOR’S REPORT	1-2	
MANAGEMENT’S DISCUSSION AND ANALYSIS	3-6	
BASIC FINANCIAL STATEMENTS		
Government-Wide Financial Statements:		
Statement of Net Position	7	
Statement of Activities	8	
Fund Financial Statements:		
Balance Sheet – Governmental Funds	9	
Reconciliation of the Balance Sheet – Governmental Funds		
to the Statement of Net Position	10	
Statement of Revenues, Expenditures and Changes in Fund Balances –
Governmental Funds	
11	
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balances of Governmental Funds to the Statement of Activities	
12	
Statement of Net Position – Proprietary Fund	13-14	
Statement of Revenues, Expenses and Changes in Net Position –
Proprietary Fund	
15	
Statement of Cash Flows – Proprietary Fund	16-17	
Notes to Financial Statements	18-29	
REQUIRED SUPPLEMENTARY INFORMATION		
Schedule of Revenues, Expenditures and Changes in Fund Balance –
Budget and Actual – General Fund	
30	
Notes to Required Supplementary Information	31	
OTHER INFORMATION		
Data Elements required by FL Statute 218.39 (3) (c)	32	
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	

33-34	
INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE WITH THE REQUIREMENTS OF SECTION 218.415, FLORIDA STATUTES, REQUIRED BY RULE 10.556(10)
OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA	

35	
MANAGEMENT LETTER PURSUANT TO THE RULES OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA	
36-37	

INDEPENDENT AUDITOR’S REPORT

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

951 Yamato Road ▪ Suite 280
Boca Raton, Florida 33431
(561) 994-9299 ▪ (800) 299-4728
Fax (561) 994-5823
www.graucpa.com

Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type activities, and each major fund of Viera East Community Development District, Brevard County, Florida (“District”) as of and for the fiscal year ended September 30, 2022, and the related notes to the financial statements, which collectively comprise the District’s basic financial statements as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, and each major fund of the District as of September 30, 2022, and the respective changes in financial position, and, where applicable, cash flows thereof for the fiscal year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the District and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements
The District’s management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America; and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the District’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the District’s internal control. Accordingly, no such opinion is expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the District’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and budgetary comparison information be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge 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 Information Included in the Financial Report
Management is responsible for the other information included in the financial report. The other information comprises the information for compliance with FL Statute 218.39 (3) (c), but does not include the financial statements and our auditor's report thereon. Our opinions on the financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated September 28, 2023, on our consideration of the District’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the District’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the District’s internal control over financial reporting and compliance.

September 28, 2023

MANAGEMENT’S DISCUSSION AND ANALYSIS

Our discussion and analysis of Viera East Community Development District, Brevard County, Florida (“District”) provides a narrative overview of the District’s financial activities for the fiscal year ended September 30, 2021. Please read it in conjunction with the District’s Independent Auditor’s Report, basic financial statements, accompanying notes and supplementary information to the basic financial statements.

FINANCIAL HIGHLIGHTS

The assets plus deferred outflows of resources of the District exceeded its liabilities at the close of the most recent fiscal year resulting in a net position balance of $220,026.

The change in the District’s total net position in comparison with the prior fiscal year was $ 2,206,794, an increase. The key components of the District’s net position and change in net position are reflected in the table in the government-wide financial analysis section.

At September 30, 2022, the District’s governmental funds reported combined ending fund balances of
$2,839,306, a decrease of ($3,408,430) in comparison with the prior fiscal year. A portion of fund balance is restricted for debt service and capital projects, non-spendable for prepaid items, assigned to capital reserves and the remainder is unassigned fund balance which is available for spending at the District’s discretion.

OVERVIEW OF FINANCIAL STATEMENTS

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

Government-Wide Financial Statements

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

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

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

Both of the government-wide financial statements distinguish functions of the District that are principally supported by assessments (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the District include general government and physical environment functions. The business-type activities of the District include recreational activities which includes a golf course and a restaurant.

Fund Financial Statements

A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The District, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the District can be divided into two categories: governmental funds and proprietary funds.

Governmental Funds

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

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

The District maintains three governmental funds for external reporting. Information is presented separately in the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances for the general fund, debt service fund and capital projects fund, all of which are considered to be major funds.

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

Proprietary Fund

The District maintains one type of proprietary fund, an enterprise fund. An enterprise fund is used to report the same function presented as business-type activities in the government-wide financial statements. The District uses an enterprise fund to account for the operations of the golf course and related recreational facilities within the District.

Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail.

Notes to the Financial Statements

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

GOVERNMENT-WIDE FINANCIAL ANALYSIS

As noted earlier, net position may serve over time as a useful indicator of an entity’s financial position. In the case of the District, assets exceeded liabilities at the close of the most recent fiscal year.

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

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

Key components of the District’s net position are reflected in the following table:

NET POSITION SEPTEMBER 30,
Governmental Activities	Business-type Activities	Total
	2022	2021	2022	2021	2022	2021	
Current and other assets	$	3,264,202	$	6,302,338	$  1,088,137	$  1,148,664	$	4,352,339	$	7,451,002	
Capital assets, net of depreciation	5,119,377	2,196,868	1,447,321	1,098,407	6,566,698	3,295,275	
Total assets	8,383,579	8,499,206	2,535,458	2,247,071	10,919,037	10,746,277	
Deferred outflows of resources	-	22,554	83,163	107,068	83,163	129,622	
Current liabilities	500,152	184,125	805,982	677,393	1,306,134	861,518	
Long-term liabilities	7,703,040	9,987,283	1,773,000	2,013,866	9,476,040	12,001,149	
Total liabilities	8,203,192	10,171,408	2,578,982	2,691,259	10,782,174	12,862,667	
Net position
Net investment in capital assets	
(1,094,670)	
(7,767,861)	
(485,662)	
(1,253,391)	
(1,580,332)	
(9,021,252)	
Restricted	249,909	5,618,534	242,274	233,488	492,183	5,852,022	
Unrestricted	1,025,148	499,679	283,027	682,783	1,308,175	1,182,462	
Total net position	$	180,387	$	(1,649,648)	$	39,639	$	(337,120)	$	220,026	$	(1,986,768)	

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

Key elements of the change in net position are reflected in the following table:

CHANGES IN NET POSITION
FOR THE FISCAL YEAR END SEPTEMBER 30,
Governmental Activities	Business-type Activities	Total
2022	2021	2022	2021	2022	2021	
Revenues:
Program revenues
Charges for services	$	2,814,141	

$	3,184,454	

$  3,441,412	

$  2,714,190	

$	6,255,553	

$	5,898,644	
Operating grants and contributions	275	84	-	-	275	84	
Capital grants and contributions	2,024	75,166	-	-	2,024	75,166	
General revenues
Unrestricted investment earnings	
1,059	
113	
202	
17	
1,261	
130	
Miscellaneous	76,333	59,280	-	-	76,333	59,280	
Total revenues	2,893,832	3,319,097	3,441,614	2,714,207	6,335,446	6,033,304	
Expenses:
General government	
425,071	
386,453	
-	
-	
425,071	
386,453	
Physical environment	807,942	837,870	-	-	807,942	837,870	
Recreational	-	-	2,481,707	1,779,294	2,481,707	1,779,294	
Interest	287,478	416,728	126,454	132,678	413,932	549,406	
Total expenses	1,520,491	1,641,051	2,608,161	1,911,972	4,128,652	3,553,023	
Transfers	456,694	24,224	(456,694)	(24,224)	-	-	
Change in net position	1,830,035	1,702,270	376,759	778,011	2,206,794	2,480,281	
Net position - beginning (restated)	(1,649,648)	(3,351,918)	(337,120)	(1,115,131)	(1,986,768)	(4,467,049)	
Net position - ending	$	180,387	$	(1,649,648)	$	39,639	$	(337,120)	$	220,026	$	(1,986,768)	

Governmental activities
As noted above and in the statement of activities, the cost of all governmental activities during the fiscal year ended September 30, 2022 was $1,520,491. The costs of the District’s activities were primarily funded by program revenues. Program revenues were comprised primarily of assessments for both the current and prior fiscal years. The District also received funds for administrative fees for the golf fund. The decreases in program revenues and total expenses are primarily the result of a decrease in debt assessments and interest expenses related to the Series 2006 Bonds as they were paid off in the current fiscal year.

Business-type activities
Business-type activities reflect the operations of the golf course and other recreational facilities within the District. The cost of operations is covered primarily by charges to customers. The District also receives revenues from assessments on residents of the District. Revenues increased as a result of increased recreational activities. The increase in total expenses is the result of the District taking over the operation of the restaurant within the District effective October 1, 2021.

GENERAL BUDGETING HIGHLIGHTS

An operating budget was adopted and maintained by the governing board for the District pursuant to the requirements of Florida Statutes. The budget is adopted using the same basis of accounting that is used in preparation of the fund financial statements. The legal level of budgetary control, the level at which expenditures may not exceed budget, is in the aggregate. Any budget amendments that increase the aggregate budgeted appropriations must be approved by the Board of Supervisors. Actual general fund expenditures did not exceed appropriations for the fiscal year ended September 30, 2022.

CAPITAL ASSETS AND DEBT ADMINISTRATION

Capital Assets

At September 30, 2022, the District had $15,518,911 invested in capital assets for its governmental activities. In the government-wide financial statements depreciation of $10,399,534 has been taken, which resulted in a net book value of $5,119,377. The District’s business-type activities reported net capital assets of $1,447,321. More detailed information about the District’s capital assets is presented in the notes of the financial statements.

Capital Debt

At September 30, 2022, the District had $7,685,000 in Bonds outstanding for its governmental activities. For business-type activities, the District had $2,025,000 in Bonds outstanding. More detailed information about the District’s capital debt is presented in the notes of the financial statements.

At September 30, 2022, the District had $59,109 in note payable for its governmental activities and $376,381 for its business-type activities. More detailed information about the District’s notes payable is presented in the notes of the financial statements.

ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND OTHER EVENTS

Subsequent to year end, the District continues with its renovation projects. In addition, it is anticipated that the general operations of the District will remain fairly constant. Golf and recreational activities are expected to increase.

CONTACTING THE DISTRICT’S FINANCIAL MANAGEMENT

This financial report is designed to provide our citizens, land owners, customers, investors and creditors with a general overview of the District’s finances and to demonstrate the District’s accountability for the financial resources it manages and the stewardship of the facilities it maintains. If you have questions about this report or need additional financial information, contact the Viera East Community Development District’s Finance Department at 219 East Livingston Street, Orlando, Florida 32801.

VIERA EAST COMMUNITY DEVELOPMENT DISTRICT BREVARD COUNTY, FLORIDA STATEMENT OF NET POSITION
SEPTEMBER 30, 2022

	Governmental
Activities	Business-type
Activities	
Total	
ASSETS				
Cash	$	835,208	$	615,303	$	1,450,511	
Investments	122,663	-	122,663	
Internal balances	-	94,904	94,904	
Accounts receivable	-	6,329	6,329	
Assessments receivable	250	-	250	
Inventories	-	67,058	67,058	
Prepaid items	2,542	15,184	17,726	
Restricted assets:				
Investments	2,303,539	284,461	2,588,000	
Capital assets:				
Nondepreciable	3,693,185	872,830	4,566,015	
Depreciable, net	1,426,192	574,491	2,000,683	
Total assets	8,383,579	2,530,560	10,914,139	

DEFERRED OUTFLOWS OF RESOURCES				
Deferred charge on refunding (debit)	-	83,163	83,163	
Total deferred outflows of resources	-	83,163	83,163	

LIABILITIES				
Accounts payable and accrued expense	31,502	57,729	89,231	
Contracts and retainage payable	298,490	-	298,490	
Unearned revenue	-	72,134	72,134	
Other liabilities	-	9,507	9,507	
Internal balances	94,904	-	94,904	
Accrued interest payable	75,256	42,187	117,443	
Non-current liabilities:				
Due within one year	499,835	619,527	1,119,362	
Due in more than one year	7,203,205	1,773,000	8,976,205	
Total liabilities	8,203,192	2,574,084	10,777,276	

NET POSITION				
Net investment in capital assets	(1,094,670)	(485,662)	(1,580,332)	
Restricted for debt service	249,909	242,274	492,183	
Unrestricted	1,025,148	283,027	1,308,175	
Total net position	$	180,387	$	39,639	$	220,026	

See notes to the financial statements

VIERA EAST COMMUNITY DEVELOPMENT DISTRICT BREVARD COUNTY, FLORIDA STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022

Program Revenues

Net (Expense) Revenue and
Changes in Net Position

Functions/Programs	

Expenses	Charges for
Services	Operating Grants and
Contributions	Capital Grants and
Contributions	Governmental Activities	
Business-type
Activities	Total	
Primary government:
Governmental activities:							

General government

$	425,071	$

425,071	$

-	$	-	$	-	$	-	$	-

Physical environment	807,942	383,335	-	2,024	(422,583)	-	(422,583)	
Interest on long-term debt	287,478	2,005,735	275	-	1,718,532	-	1,718,532	
Total governmental activities	1,520,491	2,814,141	275	2,024	1,295,949	-	1,295,949	

Business-type activities:
Recreational	2,481,707	2,771,053	-	-	-	289,346	289,346	
Interest on long-term debt	126,454	670,359	-	-	-	543,905	543,905	
Total business-type activities	2,608,161	3,441,412	-	-	-	833,251	833,251	
	
General revenues:					
Unrestricted investment earnings	1,059	202	1,261	
Miscellaneous	76,333	-	76,333	
Total general revenues	77,392	202	77,594	
Transfers	456,694	(456,694)	-	
Change in net position	1,830,035	376,759	2,206,794	
Net position - beginning	(1,649,648)	(337,120)	(1,986,768)	
Net position - ending	$	180,387	$	39,639	$	220,026	

See notes to the financial statements

BALANCE SHEET GOVERNMENTAL FUNDS SEPTEMBER 30, 2022

	Major Funds	
Debt	Capital
General	Service	Projects

Total Governmental Funds

ASSETS		
Cash	$	835,208	$	-	$	-	$	835,208	
Investments	122,663	325,165	1,978,374	2,426,202	
Assessments receivable	250	-	-	250	
Due from other funds	195,789	-	-	195,789	
Prepaid items	2,542	-	-	2,542	
Total assets	 $ 1,156,452	$	325,165	$ 1,978,374	$ 3,459,991 

LIABILITIES AND FUND BALANCES		
Liabilities:		
Accounts payable	$	31,502	$	-	$	-	$	31,502	
Contracts and retainage payable	-	-	298,490	298,490	
Due to other funds	99,802	-	190,891	290,693	
Total liabilities	131,304	-	489,381	620,685	

Fund balances: Nonspendable:
Prepaid items	2,542	-	-	2,542	
Restricted for:					
Debt service	-	325,165	-	325,165	
Capital projects	-	-	1,488,993	1,488,993	
Assigned to:					
Capital reserves	420,817	-	-	420,817	
Unassigned	601,789	-	-	601,789	
Total fund balances	1,025,148	325,165	1,488,993	2,839,306	

Total liabilities and fund balances	
$ 1,156,452	
$	325,165	
$ 1,978,374	
$ 3,459,991	

See notes to the financial statements

RECONCILIATION OF THE BALANCE SHEET - GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION
SEPTEMBER 30, 2022

Total fund balances - governmental funds	$  2,839,306

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

Capital assets used in governmental activities are not financial resources and, therefore, are not reported as assets in the governmental funds. The statement of net position includes those capital assets, net of any accumulated depreciation, in the net position of the government as a whole.
Cost of capital assets	15,518,911
Accumulated depreciation	  (10,399,534)    5,119,377

Liabilities not due and payable from current available resources are not reported as liabilities in the governmental fund statements. All liabilities, both current and long-term, are reported in the government-wide financial statements.
Accrued interest payable	(75,256)
Bonds and note payable	  (7,703,040)   (7,778,296) 

Net position of governmental activities	 $	180,387 

See notes to the financial statements

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022

	Major Funds		Total
	
General	Debt
Service	Capital
Projects	Governmental
Funds	
REVENUES
Assessments	
$	808,406	
$ 2,005,735	
$	-	
$ 2,814,141	
Interest income	1,059	275	2,024	3,358	
Miscellaneous	76,333	-	-	76,333	
Total revenues	885,798	2,006,010	2,024	2,893,832	

EXPENDITURES
Current:
General government	425,071	-	-	425,071	
Physical environment	433,213	-	-	433,213	
Debt service:
Principal	
23,452	
2,265,000	
-	
2,288,452	
Interest	4,129	310,853	-	314,982	
Capital outlay	-	-	3,297,238	3,297,238	
Total expenditures	885,865	2,575,853	3,297,238	6,758,956	

Excess (deficiency) of revenues over (under) expenditures	

(67)	

(569,843)	

(3,295,214)	

(3,865,124)	

OTHER FINANCING SOURCES (USES)
Transfers in/(out)	

525,536	

(68,842)	

-	

456,694	
Total other financing sources (uses)	525,536	(68,842)	-	456,694	

Net change in fund balances	
525,469	
(638,685)	
(3,295,214)	
(3,408,430)	
Fund balances - beginning	499,679	963,850	4,784,207	6,247,736	

Fund balances - ending	
$ 1,025,148	
$	325,165	
$ 1,488,993	
$ 2,839,306	

See notes to the financial statements

RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022

Net change in fund balances - total governmental funds
Amounts reported for governmental activities in the statement of activities

$	(3,408,430)

are different because:		
Governmental funds report capital outlays as expenditures; however,		
the cost of capital assets is eliminated in the statement of activities and capitalized in the statement of net position.	3,297,238	
Repayment of long-term liabilities are reported as expenditures in the		
governmental fund financial statements, but such repayments reduce		
liabilities in the statement of net position and are eliminated in the		
statement of activities.	2,288,452	
Expenses reported in the statement of activities that do not require		
the use of current financial resources are not reported as		
expenditures in the funds. The details of the differences are as		
Depreciation of capital assets	(374,729)	
Amortization of deferred amount on refunding	(22,554)	
Amortization of original issue discount/premium	(4,209)	
Change in accrued interest		54,267 	
Change in net position of governmental activities	 $	1,830,035 	

ASSETS
Current assets:
Cash and equivalents	$	615,303	
Accounts receivable	6,329	
Due from other funds	99,802	
Inventories	67,058	
Prepaid items and deposits		15,184 	
Total current assets		803,676 	

Noncurrent assets:
Restricted assets:		
Investments	284,461	
Capital assets:		
Land	872,830	
Buildings	773,247	
Improvements other than buildings	5,187,208	
Machinery and equipment	1,434,704	
Financed purchase - equipment	479,734	
Less accumulated depreciation		(7,300,402) 	
Total capital assets (net of depreciation)		1,447,321 	
Total noncurrent assets		1,731,782 	
Total assets		2,535,458 	

DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding		83,163 
Total deferred outflows of resources		83,163 

(Continued)

(Continued)

LIABILITIES

Accounts payable	44,817	
Accrued wages	12,912	
Unearned revenue	72,134	
Other liabilites	9,507	
Due to other funds	4,898	
Payable from restricted assets:
Accrued bond interest payable	
42,187	
Bonds payable	470,000	
Financed purchase - note payble		149,527 	
Total current liabilities		805,982 	
oncurrent liabilities
Financed purchase - note payble	
226,854	
Bonds payable		1,546,146 	
Total noncurrent liabilities		1,773,000 	
Total liabilities		2,578,982 	

Current liabilities:

N

NET POSITION
Net investment in capital assets	(485,662)	
Restricted	242,274	
Unrestricted		283,027 	
Total net position	 $	39,639 	

FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022

Operating revenues:
Charges for services:
Golf course	$	2,110,977	
Restaurant	516,044	
Pro Shop	131,199	
Other		12,833 	
Total operating revenues		2,771,053 	

Operating expenses:
Golf course and pro shop	

1,413,733	
Restaurant	560,638	
Administrative and other	350,331	
Depreciation and amortization		157,005 	
Total operating expenses		2,481,707 	
Operating income (loss)		289,346 	
Nonoperating revenues (expenses): Assessment revenue	
670,359	
Interest income	202	
Interest expense		(126,454) 	
Total nonoperating revenues (expenses)		544,107 	
Transfer in (out)	(456,694)	
Change in net position	376,759	
Total net position - beginning		(337,120) 	
Total net position - ending	 $	39,639 	

See notes to the financial statements

CASH FLOW FROM OPERATING ACTIVITIES
Receipts from customers and users	$	2,776,886	
Payments for goods and services	(1,214,818)	
Payments to employees		(859,233) 	
Net cash provided (used) by operating activities		702,835 	

CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Proceeds from assessments	
670,359	
Transfers in (out)	(456,694)	
Principal paid	(548,353)	
Interest paid		(135,037) 	
Net cash provided (used) by capital and related financing activities		(469,725) 	

CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of investments	

(203)	
Interest income		202 	
Net cash provided (used) by investing activities		(1) 	
Net increase (decrease) in cash and cash equivalents	233,109	
Cash and cash equivalents - October 1		382,194 	
Cash and cash equivalents - September 30	 $	615,303 	

(Continued)

See notes to the financial statements

(Continued)

RECONCILIATION OF OPERATING INCOME (LOSS) TO
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES		
Operating income (loss)	$	289,346	
Adjustments to reconcile operating income (loss)		
to net cash provided (used) by operating activities:		
Depreciation and amortization	157,005	
(Increase)/Decrease in:		
Accounts receivable	(3,020)	
Due from other funds	213,584	
Prepaid items and deposits	106,762	
Inventory	(23,487)	
Increase/(Decrease) in:		
Accounts payable	9,412	
Accrued wages	12,912	
Due to other funds	(67,147)	
Customer deposits	(2,092)	
Other liabilities	(1,385)	
Unearned revenue		10,945 	
Total adjustments		413,489 	

Net cash provided (used) by operating activities	 $	702,835 

See notes to the financial statements

BREVARD COUNTY, FLORIDA
NOTES TO FINANCIAL STATEMENTS

NOTE 1 – NATURE OF ORGANIZATION AND REPORTING ENTITY

Viera East Community Development District ("District") was created on April 16, 1991 by the Florida Land and Water Adjudicatory Commission by Chapter 42M-1, pursuant to the Uniform Community Development District Act of 1980, otherwise known as Chapter 190, Florida Statutes. The Act provides among other things, the power to manage basic services for community development, power to borrow money and issue bonds, and to levy and assess non-ad valorem assessments for the financing and delivery of capital infrastructure.

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

The District is governed by the Board of Supervisors ("Board"), which is composed of five members. The Supervisors are elected by registered voters, as provided by F. S. Chapter 190.006. The Board of Supervisors of the District exercise all powers granted to the District pursuant to Chapter 190, Florida Statutes.

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

The financial statements were prepared in accordance with Governmental Accounting Standards Board (“GASB”) Statements. Under the provisions of those standards, the financial reporting entity consists of the primary government, organizations for which the District is considered to be financially accountable and other organizations for which the nature and significance of their relationship with the District are such that, if excluded, the financial statements of the District would be considered incomplete or misleading. There are no entities considered to be component units of the District; therefore, the financial statements include only the operations of the District.

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Government-Wide and Fund Financial Statements
The basic financial statements include both government-wide and fund financial statements.

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

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

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

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

Assessments
Assessments are non-ad valorem assessments on benefited property within the District. Operating and maintenance assessments are based upon the adopted budget and levied annually. Debt service assessments are levied when Bonds are issued and assessed and collected on an annual basis. The District may collect assessments directly or utilize the uniform method of collection under Florida Statutes. Direct collected assessments are due as determined by annual assessment resolution adopted by the Board of Supervisors. Assessments collected under the uniform method are mailed by the County Tax Collector on November 1 and due on or before March 31 of each year. Property owners may prepay a portion or all of the debt service assessments on their property subject to various provisions in the Bond documents.

Assessments and interest associated with the current fiscal period are considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. The portion of assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period.

The District reports the following major governmental funds:

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

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

Capital Projects Fund
This fund accounts for the financial resources to be used for the acquisition or construction of major infrastructure within the District.

The District reports the following major proprietary fund:

Recreation Fund
The recreation fund accounts for the operation of a public golf course, restaurant, and pro shop that are financed and supported primarily by user charges.

Measurement Focus, Basis of Accounting and Financial Statement Presentation (Continued) Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the District’s enterprise fund are charges to customers for sales and services. Operating expenses of the enterprise fund include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses.

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

When both restricted and unrestricted resources are available for use, it is the government’s policy to use restricted resources first for qualifying expenditures, then unrestricted resources as they are needed.

Assets, Liabilities and Net Position or Equity

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

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

The District has elected to proceed under the Alternative Investment Guidelines as set forth in Section
218.415 (17) Florida Statutes. The District may invest any surplus public funds in the following:

The Local Government Surplus Trust Funds, or any intergovernmental investment pool authorized pursuant to the Florida Interlocal Cooperation Act;
Securities and Exchange Commission registered money market funds with the highest credit quality rating from a nationally recognized rating agency;
Interest bearing time deposits or savings accounts in qualified public depositories;
Direct obligations of the U.S. Treasury.

The State Board of Administration’s (“SBA”) Local Government Surplus Funds Trust Fund (“Florida PRIME”) is a“2a-7 like” pool. A “2a-7 like” pool is an external investment pool that is not registered with the Securities and Exchange Commission (“SEC”) as an investment company, but nevertheless has a policy that it will, and does, operate in a manner consistent with the SEC’s Rule 2a-7 of the Investment Company Act of 1940, which comprises the rules governing money market funds. Thus, the pool operates essentially as a money market fund. The District has reported its investment in Florida PRIME at amortized cost for financial reporting purposes.

Securities listed in paragraph c and d shall be invested to provide sufficient liquidity to pay obligations as they come due. In addition, surplus funds may be deposited into certificates of deposit which are insured and any unspent Bond proceeds are required to be held in investments as specified in the Bond Indenture.

The District records all interest revenue related to investment activities in the respective funds. Investments are measured at amortized cost or reported at fair value as required by generally accepted accounting principles.

Inventories and Prepaid Items
Inventories are recorded at cost using the first-in first-out method for restaurant related items and the average cost method for items sold at the Pro Shop. In the governmental funds, inventories are recorded as expenditures at the time of purchase.

Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements.

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

The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed.

Property, plant and equipment of the District are depreciated using the straight-line method over the following estimated useful lives:
Assets	Years	
Furniture and fixtures	5 - 7	
Improvements other than buildings	15	
Buildings	20	
Infrastructure	30	
Machinery and equipment	3 - 7	

In the governmental fund financial statements, amounts incurred for the acquisition of capital assets are reported as fund expenditures. Depreciation expense is not reported in the governmental fund financial statements.

Refundings of Debt
For current refundings and advance refundings resulting in the defeasance of debt, the difference between the reacquisition price and the net carrying amount of the old debt is reported as a deferred outflow of resources/deferred inflow of resources and recognized ratably as a component of interest expense over the remaining life of the old debt or the life of the new debt, whichever is shorter. In connection with the refundings, $22,554 and $23,905 were recognized as a component of interest expense in the current fiscal year for the series 2006 and 2012, respectively.

Unearned Revenue
Governmental funds report unearned revenue in connection with resources that have been received, but not yet earned.

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

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

Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then.

In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time.

Fund Equity/Net Position
In the fund financial statements, governmental funds report non spendable and restricted fund balance for amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose. Assignments of fund balance represent tentative management plans that are subject to change.

The District can establish limitations on the use of fund balance as follows:

Committed fund balance – Amounts that can be used only for the specific purposes determined by a formal action (resolution) of the Board of Supervisors. Commitments may be changed or lifted only by the Board of Supervisors taking the same formal action (resolution) that imposed the constraint originally. Resources accumulated pursuant to stabilization arrangements sometimes are reported in this category.

Assigned fund balance – Includes spendable fund balance amounts established by the Board of Supervisors that are intended to be used for specific purposes that are neither considered restricted nor committed. The Board may also assign fund balance as it does when appropriating fund balance to cover differences in estimated revenue and appropriations in the subsequent year’s appropriated budget. Assignments are generally temporary and normally the same formal action need not be taken to remove the assignment.

The District first uses committed fund balance, followed by assigned fund balance and then unassigned fund balance when expenditures are incurred for purposes for which amounts in any of the unrestricted fund balance classifications could be used.

Net position is the difference between assets and deferred outflows of resources less liabilities and deferred inflows of resources. Net position in the government-wide financial statements are categorized as net investment in capital assets, restricted or unrestricted. Net investment in capital assets represents net position related to infrastructure and property, plant and equipment. Restricted net position represents the assets restricted by the District’s Bond covenants or other contractual restrictions. Unrestricted net position consists of the net position not meeting the definition of either of the other two components.

Other Disclosures

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

NOTE 3 – BUDGETARY INFORMATION

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

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

Each year the District Manager submits to the District Board a proposed operating budget for the fiscal year commencing the following October 1.
Public hearings are conducted to obtain public comments.
Prior to October 1, the budget is legally adopted by the District Board.
All budget changes must be approved by the District Board.
The budgets are adopted on a basis consistent with generally accepted accounting principles.
Unused appropriation for annually budgeted funds lapse at the end of the year.

NOTE 4 – DEPOSITS AND INVESTMENTS

Deposits
The District’s cash balances were entirely covered by federal depository insurance or by a collateral pool pledged to the State Treasurer. Florida Statutes Chapter 280, "Florida Security for Public Deposits Act", requires all qualified depositories to deposit with the Treasurer or another banking institution eligible collateral equal to various percentages of the average daily balance for each month of all public deposits in excess of any applicable deposit insurance held. The percentage of eligible collateral (generally, U.S. Governmental and agency securities, state or local government debt, or corporate bonds) to public deposits is dependent upon the depository's financial history and its compliance with Chapter 280. In the event of a failure of a qualified public depository, the remaining public depositories would be responsible for covering any resulting losses.

Investments
The District’s investments were held as follows at September 30, 2022:

Investment in Local Government Surplus Funds

Fair Value	Credit Risk		Maturities Weighted average of the fund

Trust Fund (Florida PRIME)

$	122,663

S&P AAAm

portfolio: 21 days

US Bank Mmkt 5 - Ct		2,588,000 	N/A	Not available
Total Investments	 $	2,710,663 

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

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

Investments (Continued)

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

However, the Bond Indenture limits the type of investments held using unspent proceeds.

Fair Value Measurement – When applicable, the District measures and records its investments using fair value measurement guidelines established in accordance with GASB Statements. The framework for measuring fair value provides a fair value hierarchy that prioritizes the inputs to valuation techniques.

These guidelines recognize a three-tiered fair value hierarchy, in order of highest priority, as follows:
Level 1: Investments whose values are based on unadjusted quoted prices for identical investments in active markets that the District has the ability to access;
Level 2: Investments whose inputs - other than quoted market prices - are observable either directly or indirectly; and,
Level 3: Investments whose inputs are unobservable.

The fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the entire fair value measurement. Valuation techniques used should maximize the use of observable inputs and minimize the use of unobservable inputs.

Money market investments that have a maturity at the time of purchase of one year or less and are held by governments other than external investment pools should be measured at amortized cost. For external investment pools that qualify to be measured at amortized cost, the pool’s participants should also measure their investments in that external investment pool at amortized cost for financial reporting purposes. Accordingly, the District’s investments have been reported at amortized cost above.

External Investment Pool – With regard to redemption gates, Chapter 218.409(8)(a), Florida Statutes, states that “The principal, and any part thereof, of each account constituting the trust fund is subject to payment at any time from the moneys in the trust fund. However, the Executive Director may, in good faith, on the occurrence of an event that has a material impact on liquidity or operations of the trust fund, for 48 hours limit contributions to or withdrawals from the trust fund to ensure that the Board can invest moneys entrusted to it in exercising its fiduciary responsibility. Such action must be immediately disclosed to all participants, the Trustees, the Joint Legislative Auditing Committee, the Investment Advisory Council, and the Participant Local Government Advisory Council. The Trustees shall convene an emergency meeting as soon as practicable from the time the Executive Director has instituted such measures and review the necessity of those measures. If the Trustees are unable to convene an emergency meeting before the expiration of the 48- hour moratorium on contributions and withdrawals, the moratorium may be extended by the Executive Director until the Trustees are able to meet to review the necessity for the moratorium. If the Trustees agree with such measures, the Trustees shall vote to continue the measures for up to an additional 15 days. The Trustees must convene and vote to continue any such measures before the expiration of the time limit set, but in no case may the time limit set by the Trustees exceed 15 days.”

With regard to liquidity fees, Florida Statute 218.409(4) provides authority for the SBA to impose penalties for early withdrawal, subject to disclosure in the enrollment materials of the amount and purpose of such fees. At present, no such disclosure has been made.

As of September 30, 2022, there were no redemption fees or maximum transaction amounts, or any other requirements that serve to limit a participant’s daily access to 100% of their account value.

Interfund receivables and payables at September 30, 2022 were as follows:

 Fund	Receivable	Payable	
General	$	195,789  $	99,802	
Capital projects	-	190,891	
Enterprise fund		99,802	4,898 
Total	 $	295,591  $	295,591 
The outstanding balances between funds result primarily from the time lag between the dates that transactions are recorded in the accounting system and payments between funds are made. In the case of the District, the balances between the general fund and the capital project funds relate to renovation costs of the capital projects fund that were paid from the general fund, but were not yet reimbursed as of year end. Likewise, the balances between the general fund and the enterprise fund relate to payroll and other expenses of the general fund which were not yet reimbursed as of current year end.

Interfund transfers for the fiscal year ended September 30, 2022 were as follows:

 Fund	Transfer in	Transfer out 
General	$	525,536 $	-
Debt service		-		68,842 Enterprise Fund		-	456,694 
Total	 $	525,536 $	525,536 
Transfers are used to move revenues from the fund where collection occurs to the fund where funds have been reallocated for use. In the case of the District, transfers from the enterprise fund to the general fund was to fund operations. Transfer from the debt service fund to the general fund was to move Series 2006 trust funds to the general fund operating.

NOTE 6 – CAPITAL ASSETS

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

Governmental activities
Capital assets, not being depreciated

Beginning
Balance	Additions	Reductions

Ending Balance

Construction in progress	 $	1,299,742	$	3,297,238	$	(903,795) $  3,693,185 
Total capital assets, not being depreciated	1,299,742	3,297,238	(903,795)	3,693,185	

Capital assets, being depreciated Infrastructure	

10,561,792	

903,795	

-	

11,465,587	
Improvements other than buildings	12,742	-	-	12,742	
Machinery and equipment	347,397	-	-	347,397	
Total capital assets, being depreciated	10,921,931	903,795	-	11,825,726	

Less accumulated depreciation for: Infrastructure	

9,824,773	

352,060	

-	

10,176,833	
Improvements other than buildings	12,742	-	-	12,742	
Machinery and equipment	187,290	22,669	-	209,959	
Total accumulated depreciation	10,024,805	374,729	-	10,399,534	

Total capital assets, being depreciated, net	
897,126	
529,066	
-	
1,426,192	

Governmental activities capital assets, net	
$	2,196,868	
$	3,826,304	
$	(903,795)	
$  5,119,377	

Business type activities
Capital assets, not being depreciated

Beginning
Balance	Additions	Reductions

Ending Balance

Land	$	872,830	$	-	$	-	$	872,830	
Total capital assets, not being depreciated	872,830	-	-	872,830	

Capital assets, being depreciated Buildings	

773,247	

-	-	

773,247	
Improvements other than buildings	5,187,208	-	-	5,187,208	
Machinery and equipment	1,434,704	-	-	1,434,704	
Financed purchase - equipment	-	479,734	479,734	
Total capital assets, being depreciated	7,395,159	479,734	-	7,874,893	

Less accumulated depreciation for: Buildings	

773,247	

-	

-	

773,247	
Improvements other than buildings	4,965,055	31,382	-	4,996,437	
Machinery and equipment	1,431,280	17,444	-	1,448,724	
Financed purchase - equipment	-	81,994		81,994	
Total accumulated depreciation	7,169,582	130,820	-	7,300,402	

Total capital assets, being depreciated, net	
225,577	
348,914	
-	574,491	

Business type activities capital assets, net	
$	1,098,407	
$	348,914	
$	-	$  1,447,321	

In a prior year, the District issued the Series 2020 bonds primarily to fund capital improvements, which include, but are not limited to clubhouse renovations and other recreation facilities including restroom, dog park and playground improvements (collectively, the “Series 2020 Project”). The cost of these improvements is estimated at approximately $6,022,585, however, the District is not obligated to fund all potential improvements.

Depreciation expense was charged to physical environment function for governmental activities and the recreation function for business-type activities.

NOTE 7 – LONG-TERM LIABILITIES

Series 2006
In 2006, the District issued $15,000,000 of Water Management Refunding Bonds Series 2006 due May 1, 2022, with a fixed interest rate of 5.75%. The Bonds were issued for the current refunding of the Series 1996A Bonds and the Series 1996B Bonds. Interest is to be paid semiannually on each May 1 and November 1. Principal on the Bonds is to be paid serially commencing May 1, 2015 through May 1, 2022. The Series 2006 Bonds were paid off in the current fiscal year as scheduled.

Series 2012
On March 13, 2012, the District issued $5,805,000 of Special Assessment Revenue Refunding Bonds Series 2012 due May 1, 2026, with interest rates ranging from 2.5% to 5.0%. The Bonds were issued for the current refunding of the Series 1996 Bonds. Interest is to be paid semiannually on each May 1 and November 1. Principal on the Bonds is to be paid serially commencing May 1, 2013 through May 1, 2026. The Series 2012 Bonds are secured by the pledged revenue as defined in the Master Trust Indenture.

The Series 2012 Bonds maturing prior to May 1, 2022 are not subject to optional redemption. 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.

Series 2012 (Continued)
The Bond Indenture requires that the District maintain adequate funds in a reserve account to meet the debt service reserve requirement as defined in the Indenture. In addition, the Bond Indenture has certain restrictions and requirements relating principally to the procedures to be followed in the collection of pledged revenues and the application of the revenues to the various restricted accounts. The District is in compliance with the requirements of the Bond Indenture as if September 30, 2022.

Series 2020
On July 8, 2020, the District issued $7,685,000 of Special Revenue Assessment Bonds Series 2020 consisting of $3,820,000 Serial Bonds due on May 1, 2030 with a interests ranging from 2% to 2.125%;
$1,715,000 Term Bonds due on May 1, 2034 with a fixed interest rate of 2.60%; and $2,150,000 Term Bonds due on May 1, 2038 with a fixed interest rate of 2.75%. The Bonds were issued to acquire and construct certain assessable improvements and pay certain costs associated with the issuance of the Bonds. Interest is to be paid semiannually on each May 1 and November 1. Principal on the Bonds is to be paid serially commencing May 1, 2023 through May 1, 2038.

The Series 2020 Bonds maturing on or prior to May 1, 2030 are not subject to redemption at the option of the District prior to their stated dates of maturity. The Series 2020 Bonds maturing on or after May 1, 2031 are subject to redemption prior to maturity at the option of the District in whole or in part at any time on or after May 1, 2030. The Series 2020 Bonds are subject to extraordinary mandatory redemption prior to maturity in the manner determined by the Bond Registrar if certain events occurred as outlined in the Bond Indenture.

The Bond Indenture provides for a surety bond to be obtained in place of funding for the a portion of 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 remaining funding for the reserve requirement has been met.

The Bond Indenture established certain restrictions and requirements relating principally to the use of proceeds to pay for the infrastructure improvements and the procedures to be followed by the District on assessments to property owners. The District agrees to levy special assessments in annual amounts adequate to provide payment of debt service. The District was in compliance with the requirements at September 30, 2022.

Long-term Debt Activity
Changes in long-term liability activity for the fiscal year ended September 30, 2022 were as follows:

	Beginning
Balance	
Additions	
Reductions	Ending
Balance	Due Within
One Year	
Governmental activities						
Bonds payable:						
Series 2006	$	2,265,000	$	-	$  (2,265,000)	$	-	$	-	
Less: original issue discount	(1,650)	-	1,650	-	-	
Series 2020	7,685,000	-	-	7,685,000	475,000	
Less: original issue discount	(43,628)	-	2,559	(41,069)	-	
Financed purchase - Note Payable	82,561	-	(23,452)	59,109	24,835	
Total	$	9,987,283	$	-	$ (2,284,243)	$  7,703,040	$	499,835	

Business-type Activities
Bonds payable:		
Series 2012	$	2,470,000	$	-	$	(445,000)	$  2,025,000	$	470,000	
Less: original issue discount	(11,134)	-	2,280	(8,854)	-	
Financed purchases - Note Payable	-	479,734	(103,353)	376,381	149,527	
Total	$	2,458,866	$	479,734	$	(546,073)	$  2,392,527	$	619,527	

Long-term Debt Activity (Continued)

At September 30, 2022, the scheduled debt service requirements on the long-term debt were as follows:

	Governmental Activities	
Year ending
September 30:	
Principal	
Interest	
Total	
2023	$	475,000	$	180,115	$	655,115	
2024	490,000	170,615	660,615	
2025	500,000	160,815	660,815	
2026	795,000	150,815	945,815	
2027	380,000	134,915	514,915	
2028-2032	2,015,000	555,915	2,570,915	
2033-2037	2,290,000	292,125	2,582,125	
2038	740,000	20,350	760,350	
Total	 $	7,685,000  $	1,665,665  $	9,350,665 

	Business-type Activities	
Year ending
September 30:	
Principal	
Interest	
Total	
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	
Total	 $	2,025,000  $	259,500  $	2,284,500 

NOTE 8 – FINANCED PURCHASE AGREEMENT

At September 30, 2022, the District had the following financed purchase agreements for both its governmental and business-type activities:

Equipment	Monthly
Payment	Expiration
Date	
Golf Carts	$	6,553	11/5/2023	
Pump Station	2,298	2/12025	
Golf Course Mowers & Equipment	6,541	4/1/2026	
Tractors	652	1/7/2027	

The scheduled payments for years ending after September 30, 2022 are as follows:

	Governmental Activities	
Year ending
September 30:	
Principal	
Interest	
Total	
2023	$	24,835	$	2,747	$	27,582	
2024	26,298	1,283	27,581	
2025	7,976	88	8,064	
Total	$	59,109	$	4,118	$	63,227	

	Business-type Activities		
Year ending				
September 30:	Principal	Interest	Total	
2023	$	149,527	$	15,424	$	164,951	
2024	90,407	9,015	99,422	
2025	81,341	4,975	86,316	
2026	52,525	1,087	53,612	
2027	2,581	27	2,608	
Total	$	376,381	$	30,528	$	406,909	

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

NOTE 10 – COMMITMENTS AND CONTINGENCIES

As of September 30, 2022, the District had an open contract for its renovation project. The contract price is approximately $2.4 million, of which approximately $220,000 was uncompleted at September 30, 2022.

NOTE 11 – RISK MANAGEMENT

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

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – GENERAL FUND FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022

	
Budgeted
	Amounts	 Original & Final	

Actual Amounts	Variance with Final Budget - Positive
(Negative)	
REVENUES
Assessments	
$	808,157	
$	808,406	
$	249	
Interest income	100	1,059	959	
Miscellaneous	56,280	76,333	20,053	
Total revenues	864,537	885,798	21,261	

EXPENDITURES
Current:
General government	388,317	425,071	(36,754)	
Physical environment	519,168	433,213	85,955	
Debt Service:
Principal	
-	
23,452	
(23,452)	
Interest	-	4,129	(4,129)	
Total expenditures	907,485	885,865	21,620	

Excess (deficiency) of revenues over (under) expenditures	

(42,948)	

(67)	

42,881	

OTHER FINANCING SOURCES (USES)
Transfer in (out)	

42,948	

525,536	

482,588	

Net change in fund balance	
 $	-		
525,469	
 $	525,469 	
Fund balance - beginning			499,679 		
Fund balance - ending		 $	1,025,148 		

See notes to required supplementary information

NOTES TO REQUIRED SUPPLEMENTARY INFORMATION

The District is required to establish a budgetary system and an approved Annual Budget for the general fund. The District’s budgeting process is based on estimates of cash receipts and cash expenditures which are approved by the Board. The budget approximates a basis consistent with accounting principles generally accepted in the United States of America (generally accepted accounting principles).

The legal level of budgetary control, the level at which expenditures may not exceed budget, is in the aggregate. Any budget amendments that increase the aggregate budgeted appropriations must be approved by the Board of Supervisors. Actual general fund expenditures did not exceed appropriations for the fiscal year ended September 30, 2022.

OTHER INFORMATION – DATA ELEMENTS REQUIRED BY FL STATUTE 218.39(3)(C) UNAUDITED

Element	Comments
Number of district employees compensated at 9/30/2022	106	
Number of independent contractors compensated in September 2022	13	
Employee compensation for FYE 9/30/2022 (paid/accrued)	$1,198,465	
Independent contractor compensation for FYE 9/30/2022	$373,434	
Construction projects to begin on or after October 1; ($65K)		
Series 2022	$1,978,374	
Budget variance report	See page 30 of annual financial report	
Non ad valorem special assessments;		
Special assessment rate for FYE 9/30/2022	Operations and maintenance - $136 Recreation $ 129
Debt service - $ 364	
Special assessments collected FYE 9/30/2022	$3,484,500	
Outstanding Bonds:		
Series 2006, due May 1, 2022,	see Note 7 for details	
Series 2012, due May 1, 2026,	see Note 7 for details	
Series 2020, due May 1, 2038,	see Note 7 for details	

951 Yamato Road ▪ Suite 280
Boca Raton, Florida 33431
(561) 994-9299 ▪ (800) 299-4728
Fax (561) 994-5823
www.graucpa.com

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 the governmental activities, the business-type activities and each major fund of Viera East Community Development District, Brevard County, Florida (“District”) as of and for the fiscal year ended September 30, 2022, and the related notes to the financial statements, which collectively comprise the District’s basic financial statements, and have issued our opinion thereon dated September 28, 2023.
Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the District’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the District’s internal control. Accordingly, we do not express an opinion on the effectiveness of the District’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified.
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the District’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and 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.

September 28, 2023

INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE WITH THE REQUIREMENTS OF SECTION 218.415, FLORIDA STATUTES, REQUIRED BY RULE 10.556(10) OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA

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

We have examined Viera East Community Development District, Brevard County, Florida’s (“District”) compliance with the requirements of Section 218.415, Florida Statutes, in accordance with Rule 10.556(10) of the Auditor General of the State of Florida during the fiscal year ended September 30, 2022. Management is responsible for District’s compliance with those requirements. Our responsibility is to express an opinion on 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. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether the District complied, in all material respects, with the specified requirements referenced in Section 218.415, Florida Statutes. An examination involves performing procedures to obtain evidence about whether the District complied with the specified requirements. The nature, timing, and extent of the procedures selected depend on our judgment, including an assessment of the risks of material noncompliance, whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion. Our examination does not provide a legal determination on the District’s compliance with specified requirements.

We are required to be independent and to meet our other ethical responsibilities in accordance with relevant ethical requirements relating to the examination engagement.

In our opinion, the District complied, in all material respects, with the aforementioned requirements for the fiscal year ended September 30, 2022.

This report 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, management, and the Board of Supervisors of Viera East Community Development District, Brevard County, Florida and is not intended to be and should not be used by anyone other than these specified parties.

September 28, 2023

MANAGEMENT LETTER PURSUANT TO THE RULES OF THE AUDITOR GENERAL FOR THE STATE OF FLORIDA

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

Report on the Financial Statements

We have audited the accompanying basic financial statements of Viera East Community Development District, Brevard County, Florida ("District") as of and for the fiscal year ended September 30, 2022, and have issued our report thereon dated September 28, 2023.

Auditor’s Responsibility

We conducted our audit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and Chapter 10.550, Rules of the 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 the Financial Statements Performed in Accordance with Government Auditing Standards; and Independent Auditor’s Report on an examination conducted in accordance with AICPA Professional 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 September 28, 2023, should be considered in conjunction with this management letter.

Purpose of this Letter

The purpose of this letter is to comment on those matters required by Chapter 10.550 of the Rules of the Auditor General for the State of Florida. Accordingly, in connection with our audit of the financial statements of the District, as described in the first paragraph, we report the following:

Current year findings and recommendations.
Status of prior year findings and recommendations.
Compliance with the Provisions of the Auditor General of the State of Florida.

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, as applicable, management, and the Board of Supervisors of Viera East Community Development District, Brevard County, Florida and is not intended to be and should not be used by anyone other than these specified parties.

We wish to thank Viera East Community Development District, Brevard County, Florida and the personnel associated with it, for the opportunity to be of service to them in this endeavor as well as future engagements, and the courtesies extended to us.

September 28, 2023

REPORT TO MANAGEMENT

CURRENT YEAR FINDINGS AND RECOMMENDATIONS

None

PRIOR YEAR FINDINGS

None

COMPLIANCE WITH THE PROVISIONS OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA

Unless otherwise required to be reported in the auditor’s report on compliance and internal controls, the management letter shall include, but not be limited to the following:

A statement as to whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report.

There were no significant findings and recommendations made in the preceding annual financial audit report for the fiscal year ended September 30, 2021.

Any recommendations to improve the local governmental entity's financial management.

There were no such matters discovered by, or that came to the attention of, the auditor, to be reported for the fiscal year ended September 30, 2022.

Noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance.

There were no such matters discovered by, or that came to the attention of, the auditor, to be reported, for the fiscal year ended September 30, 2022.

The name or official title and legal authority of the District are disclosed in the notes to the financial statements.

The District has not met one or more of the financial emergency conditions described in Section 218.503(1), Florida Statutes.

We applied financial condition assessment procedures and no deteriorating financial conditions were noted. It is management’s responsibility to monitor financial condition, and our financial condition assessment was based in part on representations made by management and the review of financial information provided by same.

Management has provided the specific information required by Section 218.39(3)(c) in the Other Information section of the financial statements on page 32.