Amelia National Community Development District

FINANCIAL STATEMENTS

September 30, 2016

Amelia National Community Development District
Table of Contents September 30, 2016

REPORT
Independent Auditors’ Report	
1	
FINANCIAL STATEMENTS
Management’s Discussion And Analysis (required supplemental information)	
3	
Basic Financial Statements Government‐Wide Financial Statements		
Statement of Net Position	8	
Statement of Activities	9	
Fund Financial Statements		
Balance Sheet – Governmental Funds	10	
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position	
11	
Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds	
12	
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities	
13	
Notes to Financial Statements	14	
Required Supplemental Information (other than MD&A)		
Budget to Actual Comparison Schedule ‐ General Fund	24	
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	

25	
Management Letter	27	
Attestation Report on Compliance with Section 218.415 Florida Statutes	29	

INDEPENDENT AUDITORS’ REPORT

To the Board of Supervisors
Amelia National Community Development District Nassau County, Florida

Report on the Financial Statements

We have audited the accompanying financial statements of the governmental activities, each major fund and the aggregate remaining fund information of Amelia National Community Development District (hereinafter referred to as “District”), as of and for the year ended September 30, 2016, and the related notes to the 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.

Auditors’ Responsibility

Our responsibility is to express opinions 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 Auditing 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 auditors’ 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 opinions.

Opinions

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund and the aggregate remaining fund information of the District as of September 30, 2016, and the respective changes in financial position for the year then ended in accordance 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 and budgetary comparison information, as listed in the table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated June 22, 2017, on our consideration of the District's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. 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 the 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.

CARR, RIGGS & INGRAM, LLC

Miramar Beach, Florida June 22, 2017

Management’s Discussion And Analysis

Our discussion and analysis of the Amelia National Community Development District’s financial performance provides an overview of the District’s financial activities for the fiscal year ended September 30, 2016. Please read it in conjunction with the District’s financial statements, which begin on page 8.

FINANCIAL HIGHLIGHTS

At September 30, 2016, the liabilities of the District exceed its assets by approximately $4.8 million (deficit).

During the fiscal year ended September 30, 2016, the District incurred approximately
$722,000 of interest expenditures and repaid $325,000 of outstanding long‐term bond principal.

USING THE ANNUAL REPORT

This annual report consists of a series of financial statements. The Statement of Net Position and the Statement of Activities on pages 8 – 9 provide information about the activities of the District as a whole and present a longer‐term view of the District’s finances. Fund financial statements start on page 10. For governmental activities, these statements tell how these services were financed in the short‐term as well as what remains for future spending. Fund financial statements also report the District’s operations in more detail than the government‐wide statements by providing information about the District’s most significant funds.

Reporting the District as a Whole

Our analysis of the District as a whole begins on page 4. One of the most important questions asked about the District’s finances is, “Is the District as a whole better off or worse off as a result of the year’s activities?” The Statement of Net Position and the Statement of Activities report information about the District as a whole and about its activities in a way that helps answer this question. These statements include all assets and liabilities using the accrual basis of accounting, which is similar to the accounting used by most private‐sector companies. All of the current year’s revenues and expenses are taken into account regardless of when cash is received or paid.

These two statements report the District’s net position and related changes during the current year. You can think of the District’s net position – the difference between assets and liabilities – as one way to measure the District’s financial health, or financial position. Over time, increases or decreases in the District’s net position is one indicator of whether its financial health is improving or deteriorating. You will need to consider other nonfinancial factors; however, such as changes in the District’s assessment base and the condition of the District’s infrastructure, to assess the overall health of the District.

Reporting the District’s Most Significant Funds

Our analysis of the District’s major funds begins on page 5. The fund financial statements begin on page 10 and provide detailed information about the most significant funds – not the District as a whole. Some funds are required to be established by State law and by bond covenants. All of the District’s funds are governmental fund‐types.

Governmental funds – All of the District’s basic services are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at year‐ end that are available for spending. The governmental fund statements provide a detailed short‐term view of the District’s general government operations and the basic services it provides. Governmental fund information helps you determine whether there are more or fewer financial resources that can be spent in the near future to finance the District’s programs.

THE DISTRICT AS A WHOLE

The following table reflects the condensed Statement of Net Position and is compared to the prior
year.	
September 30,
Assets
Current and other assets Capital assets, net	2016	2015

$   1,683,008	$   1,732,782
5,543,104	5,868,441	

$	Change

(49,774)
(325,337)	
Total assets	$   7,226,112	$ 7,601,223	$	(375,111)	

Liabilities					
Current liabilities
Other liabilities Total liabilities	$	626,090
11,440,845
12,066,935	$	629,323
11,778,879
12,408,202	$	(3,233)
(338,034)
(341,267)	
Net position
Net investment in capital assets Restricted for:	
(2,163,910)	
(2,161,367)		
(2,543)	
Debt service Capital projects
Unrestricted
Total net position (deficit)	292,554
150,727
(3,120,194)
(4,840,823)	270,738
148,723
(3,065,073)
(4,806,979)		21,816
2,004
(55,121)
(33,844)	

Total liabilities and net position	
$ 7,226,112	
$ 7,601,223	
$	
(375,111)	

For more detailed information, see the accompanying Statement of Net Position. During the fiscal year ended September 30, 2016, total assets and liabilities decreased by approximately $375,000 and $341,000, respectively. The decrease in assets is primarily a result of depreciation on capital assets. The decrease in liabilities is primarily due to the repayment of outstanding long‐term bond principal.

The following schedule compares the Statement of Activities for the current and previous fiscal
year.					
Year ended September 30,
Revenues:
Program  revenues: Charges for services Grants and contributions
General revenues:
Interest and other revenues	2016	2015	Change	
	
$  1,137,961
6,087	
$   1,202,549
4,433	
$	(64,588)
1,654	
	1,025	1,540	(515)	
Total revenues	1,145,073	1,208,522		(63,449)	
Expenses:					
General government	55,896	61,162		(5,266)	
Maintenance and operations	406,842	404,400		2,442	
Interest	716,179	734,483		(18,304)	
Total expenses	1,178,917	1,200,045		(21,128)	
Change in net position	(33,844)	8,477		(42,321)	
Net position (deficit), beginning	(4,806,979)	(4,815,456)		8,477	
Net position (deficit), ending	$ (4,840,823)	$ (4,806,979)	$	(33,844)	

For more detailed information, see the accompanying Statement of Activities. Revenues decreased by approximately $63,000 due to a decrease in general operations and maintenance assessments in the current year. The District budgeted in the current year to utilize surplus carryforwards from prior years. Expenses decreased by approximately $21,000 which is primarily due to the decrease in bond interest. The overall result was a $33,844 decrease in net position for fiscal year 2016.

THE DISTRICT’S FUNDS

As the District completed the year, its governmental funds (as presented in the balance sheet on page 10) reported a combined fund balance of approximately $1.675 million, which is a slight decrease from last year’s balance that totaled $1.71 million. Significant transactions are discussed below.

During the fiscal year ended September 30, 2016, the District incurred approximately
$722,000 of interest expenditures and repaid principal of $325,000.

The overall decrease in fund balance for the year ended September 30, 2016 totaled $39,124.

CAPITAL ASSET AND DEBT ADMINISTRATION

Capital Assets

At September 30, 2016, the District had approximately $5.5 million invested in capital assets (net of accumulated depreciation). This amount represents a net decrease of approximately $325,000 from the fiscal year 2015 total.

A listing of capital assets by major category for the current and prior year follows:

September 30,	2016	2015		Change	
Land and land improvements	$   2,015,508	$ 2,015,508	$	‐	
Capital assets being depreciated	6,506,725	6,506,725		‐	
Total, prior to depreciation	8,522,233	8,522,233		‐	
Accumulated depreciation	(2,979,129)	(2,653,792)		(325,337)	
Net capital assets	$   5,543,104	$ 5,868,441	$	(325,337)	

More information about the District’s capital assets is presented in Note 4 to the financial statements.

Debt

At September 30, 2016, the District had approximately $11.8 million of bonds outstanding. This amount represents a decrease of $325,000 from the fiscal year 2015 total.

A listing of debt amounts outstanding for the current and prior year is as follows:

September 30,	2016	2015		Change	
Series 2004 A bonds Series 2006 A bonds	$  7,400,000
4,405,000	$  7,615,000
4,515,000	$	(215,000)
(110,000)	
	$ 11,805,000	$ 12,130,000	$	(325,000)	

More information about the District’s long‐term debt is presented in Note 5 to the financial statements.

GOVERNMENTAL FUNDS BUDGETARY HIGHLIGHTS

An Operating budget was established by the governing board for the District pursuant to the requirements of Florida Statutes. The budget to actual comparison for the general fund, including the original budget and final adopted budget, is shown at page 24.

The District experienced favorable variances in both revenues and expenditures as compared to the budget in the amount of $1,255 and $23,624, respectively. The variance in expenditures occurred primarily due to unanticipated budgeted operating expenditures that were not incurred during the year.

FUTURE FINANCIAL FACTORS

Amelia National Community Development District is an independent special district that operates under the provisions of Chapter 190, Florida Statutes. The District operates under an elected Board of Supervisors, which establishes policy and sets assessment rates. Assessment amounts for fiscal year 2017 were established to provide for the operations of the District as well as the necessary debt service requirements.

CONTACTING THE DISTRICT’S FINANCIAL MANAGEMENT

This financial report is designed to provide a general overview of the District’s finances. If you have questions about this report or need additional financial information, contact the Amelia National Community Development District’s management company at 12051 Corporate Blvd, Orlando, Florida 32817.

Basic Financial Statements

Amelia National Community Development District	
Statement of Net Position	
September 30,		2016	
Governmental	
Activities	
Assets			
Cash and cash equivalents	$	55,262	
Investments		1,407,872	
Assessments receivable		208,380	
Accrued interest receivable		452	
Prepaid expenses		11,042	
Capital assets:			
Not being depreciated		2,015,508	
Depreciable, net		3,527,596	

Total assets		
7,226,112	

Liabilities		
Accounts payable	7,662	
Accrued interest payable	293,428	
Non‐current liabilities:		
Due within one year	325,000	
Due in more than one year	11,440,845	

Total liabilities	
12,066,935	

Net position
Net investment in capital assets
Restricted for:		
(2,163,910)	
Debt service Capital projects
Unrestricted		292,554
150,727
(3,120,194)	

Total net position (deficit)	
$	
(4,840,823)	

Amelia National Community Development District
Statement of Activities

Year ended September 30,	2016
Net (Expense) Revenue and Changes in
Program Revenues	Net Position

Functions/Programs	

Expenses	
Charges for Services	Operating
Grants and Contributions	Capital
Grants and Contributions	
Governmental Activities	
Primary government:						
Governmental activities:						
General government	$	(55,896)	$	33,055	$	‐	$	‐	$	(22,841)	
Maintenance and operations	(406,842)	48,200	‐	‐	(358,642)	
Interest	(716,179)	1,056,706	5,116	971	346,614	

Total governmental activities	$ (1,178,917)  $ 1,137,961	$	5,116	$	971	(34,869)

General revenues
Interest and other revenues	1,025

Change in net position	
(33,844)	
Net position (deficit) ‐ beginning of year	(4,806,979)	

Net position (deficit) ‐ end of year	
$ (4,840,823)	

Balance Sheet – Governmental Funds

September 30,			2016			
			
Debt		
Total	
		Debt Service	Service	Non‐	Governmental	
	General	Series 2004	Series 2006	Major	Funds	
Assets						
Cash and cash equivalents	$ 55,262	$	‐	$	‐	$	‐	$	55,262	
Investments	5,516	940,493	311,505	150,358	1,407,872	
Assessments receivable	994	86,045	121,341	‐	208,380	
Interest receivable	‐	82	1	369	452	
Prepaid expenditures	11,042	‐	‐	‐	11,042	

Total assets	
$ 72,814	
$ 1,026,620	
$ 432,847	
$ 150,727	
$	1,683,008	

Liabilities and Fund Balances						
Liabilities						
Accounts payable	$	7,662	$	‐	$	‐	$	‐	$	7,662	
Total liabilities	7,662	‐	‐	‐	7,662	

Fund balances						
Nonspendable	11,042	‐	‐	‐	11,042	
Restricted for debt service	‐	1,026,620	432,847	‐	1,459,467	
Restricted for capital projects	‐	‐	‐	150,727	150,727	
Unassigned	54,110	‐	‐	‐	54,110	
Total fund balances	65,152	1,026,620	432,847	150,727	1,675,346	

Total liabilities and fund balances	
$ 72,814	
$ 1,026,620	
$ 432,847	
$ 150,727	
$	1,683,008	

Reconciliation of the Balance Sheet of Governmental Funds to the Statement of
Net Position
September 30,	2016
Total fund balances, governmental funds	
$	
1,675,346	
Capital assets used in governmental activities are not financial resources and therefore are not reported in the fund level statements.		
5,543,104	
Liabilities not due and payable from current resources, including accrued interest, are not reported in the fund level statements.		
(12,059,273)	

Total net position (deficit) ‐ governmental activities	
$	
(4,840,823)	

Statement of Revenues, Expenditures and Changes in Fund Balances –
Governmental Funds

Year ended September 30,			2016			
			Debt		Total	
		Debt Service	Service	Non‐	Governmental	
	General	Series 2004	Series 2006	Major	Funds	
Revenues						
Assessment revenue	$ 81,255	$	674,968	$ 350,504	$	‐	$	1,106,727	
Prepaid revenue	‐	31,234	‐	‐	31,234	
Interest and other revenues	1,025	3,802	1,314	971	7,112	
Total revenues	82,280	710,004	351,818	971	1,145,073	

Expenditures
Current:

General government	55,896	‐	‐	‐	55,896	
Maintenance and operations	81,505	‐	‐	‐	81,505	
Debt service:						
Principal	‐	215,000	110,000	‐	325,000	
Interest	‐	479,115	242,681	‐	721,796	
Total expenditures	137,401		694,115	352,681	‐		1,184,197	

Excess (deficit) of revenues over expenditures	

(55,121)		

15,889	

(863)	

971		

(39,124)	
Other Financing Sources (Uses)
Transfers in Transfers out
Total other financing sources (uses)	
‐
‐
‐		
7
‐
7	
‐
(1,040)
(1,040)	
1,040
(7)
1,033		
1,047
(1,047)
‐	

Net change in fund balances	
(55,121)		
15,896	
(1,903)	
2,004		
(39,124)	
Fund balances, beginning of year	120,273		1,010,724	434,750	148,723		1,714,470	

Fund balances, end of year	
$ 65,152	
$	
1,026,620	
$ 432,847	
$ 150,727	
$	
1,675,346	

Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities

Year ended September 30,		2016	

Net change in fund balances ‐ governmental funds	
$	
(39,124)	
Depreciation on capital assets is not recognized in the fund financial statements but is reported as an expense in the Statement of Activities.		
(325,337)	
Amortization of original issue discount is not recognized in the governmental fund statement but is reported as an expense in the Statement of Activities.		
(1,966)	
Repayment of bond principal is an expenditure in the governmental funds, but the repayment reduces long‐term liabilities in the Statement of Net Position.		
325,000	
The change in accrued interest between the current and prior year is recorded on the Statement of Activities but not on the fund financial statements.		
7,583	

Change in net position of governmental activities	$	(33,844)

NOTE 1: NATURE OF ORGANIZATION

The Amelia National Community Development District (the “District”) was established on January 12, 2004 pursuant to the Uniform Community Development District Act of 1980, otherwise known as Chapter 190, Florida Statutes, by Nassau County Ordinance No. 2004‐01. 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 a Board of Supervisors (“Board”), which is comprised of five members. The Supervisors are elected on an at large basis by the owners of the property within the District. A majority of the Supervisors are currently affiliated with the Developer of the community, Amelia National Enterprise, LLC. The District is economically dependent on the Developer. The Board of Supervisors of the District exercises all powers granted to the District pursuant to Chapter 190, Florida Statutes.

The Board has the final 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.

In evaluating how to define the government, for financial reporting purposes, management has considered all potential component units. The decision to include or exclude a potential component unit in the reporting entity was made by applying the criteria set forth by Generally Accepted Accounting Principles (GAAP) as defined by the Governmental Accounting Standards Board (GASB) in statements No. 14 and No. 61. Based on the foregoing criteria, no potential component units were found.

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accounting policies of the District conform to GAAP as applicable to governments in accordance with those promulgated by GASB. The following is a summary of the more significant 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 the non‐fiduciary activities of the primary government. Governmental activities, which normally are supported by assessments, are reported separately from business‐type activities, which rely to a significant extent on fees and charges for support. The business‐type activities are reported separately in government‐wide financial statements; however, at September 30, 2016, the District did not have any significant business‐type activities. Therefore, no business‐type activities are reported. Assessments and other items not properly included as program revenues (i.e., charges to customers or applicants who purchase, use, or directly benefit from goods or services) are reported as general revenues.

Separate financial statements are provided for governmental funds. Major individual governmental funds are reported as separate columns in the fund financial statements.

Measurement Focus, Basis of Accounting and Basis of 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 the related cash flows. Assessments are recognized as revenues in the year for which they are levied. Grants and other 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 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. However, debt service expenditures are recorded only when payment is due.

Assessments, including debt service assessments along with operation and maintenance assessments, are non‐ad valorem special assessments imposed on all lands located within the District and benefited by the District’s activities, operation and maintenance. Assessments are levied and certified for collection by the District prior to the start of the fiscal year which begins October 1st and ends on September 30th. Operation and maintenance special assessments are imposed upon all benefited lands located in the District. Debt service special assessments are imposed upon certain lots and lands as described in each resolution imposing the special assessment for each series of bonds issued by the District.

Assessments and interest associated with the current fiscal period are all considered to be susceptible to accrual and have been recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable and available only when cash is received by the District.

The District reports the following major governmental funds:

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

Debt Service Funds – The Debt Service Fund Series 2004 and 2006 are used to account for the accumulation of resources for the annual payment of principal and interest on long‐term debt.

For the year ended September 30, 2016, the District does not report any proprietary funds. 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 District’s policy to use restricted resources first, then unrestricted resources as they are needed. When committed, assigned, or unassigned resources are available for use in the governmental fund financial statements, it is the government’s policy to use committed resources first, followed by assigned resources, then unassigned resources as needed.

Cash, Deposits and Investments

The District maintains deposits with "Qualified Public Depositories" as defined in Chapter 280, Florida Statutes. All Qualified Public Depositories must place with the Treasurer of the State of Florida securities in accordance with collateral requirements determined by the State’s Chief Financial Officer. In the event of default by a Qualified Public Depository, the State Treasurer will pay public depositors all losses. Losses in excess of insurance and collateral will be paid through assessments between all Qualified Public Depositories.

Under this method, all the District's deposits are fully insured or collateralized at the highest level of security as defined by GASB, Statement Number 40, Deposits and Investment Disclosures (An Amendment of GASB, Statement Number 3).

The District is authorized to invest in financial instruments as established by Section 218.415, Florida Statutes. The authorized investments include among others direct obligations of the U.S. Treasury; the Local Government Surplus Trust Funds as created by Section 218.405, Florida Statutes; SEC registered money market funds with the highest credit quality rating from a nationally recognized rating agency; and interest‐bearing time deposits or savings accounts in authorized financial institutions.

Capital Assets

Capital assets, which include primarily infrastructure assets (e.g., water management systems and similar items), are reported in the governmental activities column in the government‐wide financial statements. Capital assets are defined by the District as assets with an initial/individual cost of more than $5,000 and an estimated useful life in excess of two years. Such assets are recorded at historical cost and estimated historical cost if purchased or constructed. Donated assets are recorded at estimated fair market value at the date of donation.

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

Property, plant and equipment of the primary government are depreciated using the straight‐line method over the following estimated useful lives: Infrastructure – drainage system and other: 20 years.

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.

Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

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 using the straight‐line or effective interest method. Bonds payable are reported net of these premiums or discounts. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as current period expenses.

In the fund financial statements, governmental fund types recognize bond premiums and discounts during the current period. The face amount of the 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 current period expenditures.

Deferred Outflows/Inflows of Resources

In addition to assets, the statement of net position will sometimes include 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. The District does not have any of this type of item at September 30, 2016.

In addition to liabilities, the statement of net 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. The District does not have any of this type of item at September 30, 2016.

Fund Equity

Net position in the government‐wide financial statements represents the difference between assets and deferred outflows of resources and liabilities and deferred inflows of resources and is categorized as net investment in capital assets, restricted or unrestricted. Net investment in capital assets represents assets related to infrastructure and property, plant and equipment, net of any related debt. Restricted net position represents the assets restricted by the District’s bond covenants.

Governmental fund equity is classified as fund balance. Fund balance is further classified as nonspendable, restricted, committed, assigned, or unassigned. Nonspendable fund balance cannot be spent because of its form. Restricted fund balance has limitations imposed by creditors,  grantors, or contributors or by enabling legislation or constitutional provisions. Committed fund balance is a limitation imposed by the District board through approval of resolutions. Assigned fund balance is a limitation imposed by a designee of the District board. Unassigned fund balance in the General Fund is the net resources in excess of what can be properly classified in one of the above four categories. Negative unassigned fund balance in other governmental funds represents excess expenditures incurred over the amounts restricted, committed, or assigned to those purposes.

Budgets

The District is required to establish a budgetary system and an approved annual budget. Annual budgets are legally adopted on a basis consistent with GAAP for the General Fund. Any revision to the budget must be approved by the District Board. The budgets are compared to actual expenditures. In instances where budget appropriations and estimated revenues have been revised during the year, budget data presented in the financial statements represent final authorization amounts.

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.
A public hearing is conducted to obtain comments.
Prior to October 1, the budget is legally adopted by the District Board.
All budget changes must be approved by the District Board.
Budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America.

NOTE 3: INVESTMENTS
The District’s investments consist of money market funds and similar instruments in which shares are owned in a fund rather than the underlying investments. In accordance with GASB 72, Fair Value Measurement and Application, these amounts are reported at amortized cost. There are no limitations or restrictions on withdrawals from Florida PRIME; although on the occurrence of an event that has a material impact on liquidity or operations of the fund, the fund’s executive director may limit contributions or withdrawals from the trust fund for a period of 48 hours.

The following is a summary of the District’s investments:
September 30,	2016	
Credit Risk	
Maturities	
Short‐term Money Market Funds	$	393,552	S&P AAAm	44 days	
State Board of Administration Florida PRIME	1,014,320	S&P AAAm	70 days	
 	$ 1,407,872  

Custodial credit risk – For an investment, custodial credit risk is the risk that the District will not be able to recover the value of the investments or collateral securities that are in the possession of an outside party. The District has no formal policy for custodial risk. At September 30, 2016, the money market funds are not exposed to custodial credit risk because their existence is not evidenced by securities that exist in physical or book entry form.
Concentration risk – The District’s investment policy requires diversification, but does not specify limits on types of investments.
Interest rate risk – The District does not have a formal policy for addressing interest rate risk; however, investments are made with discretion, to seek reasonable returns, preserve capital, and in general, avoid speculative investments. The District manages its exposure to declines in fair values from interest rate changes by reviewing the portfolio on an ongoing basis for changes in effective yield amounts.

The following is a summary of changes in the capital assets for the year ended September 30, 2016:

	Beginning					Ending	
	Balance	Additions	Disposals	Balance	
Governmental Activities:							
Capital assets not being depreciated							
Land and land improvements	$ 2,015,508	$	‐	$	‐	$ 2,015,508	
Total capital assets, not being depreciated	2,015,508		‐		‐	2,015,508	

Capital assets being depreciated							
Infrastructure‐ drainage system	323,532		‐		‐	323,532	
Infrastructure‐ other	6,183,193		‐		‐	6,183,193	
Total capital assets, being depreciated	6,506,725		‐		‐	6,506,725	

Less accumulated depreciation							
Infrastructure‐ drainage system	180,512		16,177		‐	196,689	
Infrastructure‐ other	2,473,280		309,160		‐	2,782,440	
Total accumulated depreciation	2,653,792		325,337		‐	2,979,129	

Total capital assets, being depreciated, net	
3,852,933		
(325,337)		
‐	
3,527,596	

Governmental activities capital assets, net	
$ 5,868,441	
$	
(325,337)	
$	
‐	
$ 5,543,104	

Depreciation expense of $325,337 was allocated to maintenance and operations on the accompanying Statement of Activities.

NOTE 5: BONDS PAYABLE

On June 1, 2004, the District issued $9,360,000 of Capital Improvement Revenue Bonds, Series 2004A with a fixed interest rate of 6.30%. The Bonds were issued to finance the acquisition and construction of certain improvements for the benefit of the District. Interest is paid semiannually on each May 1 and November 1. Principal on the Series 2004A Bonds is paid serially commencing on May 1, 2006 through May 1, 2035.

On March 10, 2006, the District issued $5,215,000 of Capital Improvement Revenue Bonds, Series 2006A with a fixed interest rate of 5.375%. The Bonds were issued to finance the acquisition and construction of certain improvements for the benefit of the District. Interest is paid semiannually on each May 1 and November 1. Principal on the Series 2006A Bonds is paid serially commencing on May 1, 2008 through May 1, 2037.

Long‐term liability activity for the year ended September 30, 2016, was as follows:

	Beginning			Ending	Due Within	
	Balance	Additions	Reductions	Balance	One Year	
Governmental Activities	
Bonds Payable:		
Series 2004 A	$ 7,615,000	$	‐	$	(215,000)	$ 7,400,000	$	210,000	
Series 2006 A	4,515,000	‐	(110,000)	4,405,000	115,000	
	$ 12,130,000	$	‐	$	(325,000)	$ 11,805,000	$	325,000	

The balance of the long‐term bonds at September 30, 2016 is summarized as follows:	
September 30,		2016	
Bond principal balance	$	11,805,000	
Less unamortized bond discount		(39,155)	
Net balance	$	11,765,845	

At September 30, 2016, the scheduled debt service requirements on long‐term debt were as follows:

Total Debt
Year Ending September 30,	Principal	Interest	Service

2017	$	325,000	$	704,229	$	1,029,229

2018	345,000	684,818	1,029,818	
2019	365,000	664,239	1,029,239	
2020	385,000	642,446	1,027,446	
2021	415,000	619,440	1,034,440	
2022‐2026	2,475,000	2,695,031	5,170,031	
2027‐2031	3,340,000	1,857,015	5,197,015	
2032‐2036	3,815,000	722,989	4,537,989	
2037	340,000	18,275	358,275	
$  11,805,000	$	8,608,482	$  20,413,482

The Bond Indentures require that the District maintain adequate funds in reserve accounts to meet the debt service reserve requirements as defined in the Indentures. The requirements have been met for the fiscal year ended September 30, 2016.

The Bond Indentures for all series have 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 agreed to levy special assessments in annual amounts adequate to provide payment of debt service. The District is in compliance with the requirements of the Bond Indentures for all series.

NOTE 6: DEFERRED COST ACCOUNTS

The Series 2004 and Series 2006 Bond Indentures require that certain amounts be set aside in a deferred cost account and used to repay funds advanced for the project or for the purchase of additional components. However, if funds in the accounts are not needed for that purpose they are to be transferred to the debt service funds and used to redeem outstanding related debt. As a result, the District established deferred cost investment accounts reported in the capital projects (Non‐Major) fund. At September 30, 2016 the balance in the Series 2006 deferred cost account totaled $114,929.

NOTE 7: 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 maintains commercial insurance coverage to mitigate the risk of loss. Coverage may not extend to all situations. Management believes such coverage is sufficient to preclude any significant uninsured losses to the District. There have been no settled claims in the previous three years.

NOTE 8: MANAGEMENT COMPANY

The District has contracted with a management company to perform management advisory services, which include financial and accounting advisory services. Certain employees of the management company also serve as officers (Board appointed non‐voting positions) of the District. Under the agreement, the District compensates the management company for management, accounting, financial reporting, and other administrative costs.

Amelia National Community Development District
Notes to Financial Statements

NOTE 9: CONCENTRATION

A significant portion of the District’s activity is dependent upon the continued involvement of the Developer, Amelia National Enterprise, LLC, the loss of which could have a materially adverse effect on the District’s operations.

The District assessed property owned by the Developer $43,108 for operation and maintenance expenses, $215,112 for debt service costs on the Series 2004 bonds and $121,341 for debt service costs on the Series 2006 bonds. Of the amount assessed, $208,380 remained outstanding at September 30, 2016 and is included in Assessments receivable on the accompanying Statement of Net Position and Balance Sheet – Governmental Funds. Amounts outstanding were received subsequent to year end.

Required Supplemental Information (Other Than MD&A)

Amelia National Community Development District Budget to Actual Comparison Schedule – General Fund
Year ended September 30,	2016

Revenues
Assessment revenue Interest and other revenues
Total revenues	Original and Final Budget

$	81,025
‐
81,025	Actual Amounts

$	81,255
1,025
82,280	Variance with Final Budget

$	230
1,025
1,255	

Expenditures
General government Maintenance and operations
Total expenditures	

68,825
92,200
161,025	

55,896
81,505
137,401	

12,929
10,695
23,624	

Excess (deficit) of revenues over expenditures	

(80,000)	

(55,121)	

24,879	
Fund balance, beginning of year	80,000	120,273	40,273	

Fund balance, end of year	
$	‐	
$	65,152	
$	65,152	

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
Amelia National Community Development District Nassau 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, each major fund, and the aggregate remaining fund information of Amelia National Community Development District (hereinafter referred to as the “District”), as of and for the year ended September 30, 2016, and the related notes to the financial statements, which collectively comprise the District’s basic financial statements, and have issued our report thereon dated June 22, 2017.

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 may exist that have not been identified.

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 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 District’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 District’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

CARR, RIGGS & INGRAM, LLC

Miramar Beach, Florida June 22, 2017

MANAGEMENT LETTER

To the Board of Supervisors
Amelia National Community Development District Nassau County, Florida

Report on the Financial Statements

We have audited the financial statements of the Amelia National Community Development District (“District”) as of and for the fiscal year ended September 30, 2016, and have issued our report thereon dated June 22, 2017.

Auditors’ 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 Auditor General.

Other Reports

We have issued our Independent Auditors’ Report on Internal Control over Financial Reporting and Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance with Government Auditing Standards and Independent Accountant's Report on an examination conducted in accordance with AICPA Professional Standards, Section 601, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in these reports, which are dated June 22, 2017, 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 annual financial audit report. There were no findings or recommendations made in the preceding annual audit report.

Official Title and Legal Authority

Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the financial statements. The information required is disclosed in the notes to the financial statements.

Financial Condition
Section 10.554(1)(i)5.a. and 10.556(7), Rules of the Auditor General, require that we apply appropriate procedures and report the results of our determination as to whether or not the District has met one or more of the conditions described in Section 218.503(1), Florida Statutes, and identification of the specific condition(s) met. In connection with our audit, we determined that the District did not meet any of the conditions described in Section 218.503(1), Florida Statutes.
Pursuant to Sections 10.554(1)(i)5.c. and 10.556(8), Rules of the Auditor General, we applied financial condition assessment procedures. It is management’s responsibility to monitor the District’s 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.
Annual Financial Report
Section 10.554(1)(i)5.b. and 10.556(7), Rules of the Auditor General, require that we apply appropriate procedures and report the results of our determination as to whether the annual financial report for the District for the fiscal year ended September 30, 2016, filed with the Florida Department of Financial Services pursuant to Section 218.32(1)(a), Florida Statutes, is in agreement with the annual financial audit report for the fiscal year ended September 30, 2016. In connection with our audit, we determined that these two reports were in agreement.
Other Matters
Section 10.554(1)(i)2., Rules of the Auditor General, requires that we address in the management letter any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations.
Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit, we did not have any 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.

CARR, RIGGS & INGRAM, LLC

Miramar Beach, Florida June 22, 2017

INDEPENDENT ACCOUNTANT’S REPORT

To the Board of Supervisors
Amelia National Community Development District Nassau County, Florida

We have examined Amelia National Community Development District’s compliance with the requirements of Section 218.415, Florida Statutes, Local Government Investment Policies, during the year ended September 30, 2016. Management is responsible for the District’s compliance with those requirements. Our responsibility is to express an opinion on the 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 the 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 the District’s compliance with specified requirements.

In our opinion, the District complied, in all material respects, with the aforementioned requirements for the year ended September 30, 2016.

This report is intended solely for the information and use of management and the State of Florida Auditor General and is not intended to be and should not be used by anyone other than these specified parties.

CARR, RIGGS & INGRAM, LLC

Miramar Beach, Florida June 22, 2017