Rivers Edge Community Development District

ANNUAL FINANCIAL REPORT

September 30, 2022

Rivers Edge Community Development District ANNUAL FINANCIAL REPORT
September 30, 2022 TABLE OF CONTENTS
Page Number

REPORT OF INDEPENDENT AUDITORS	1-3
MANAGEMENT’S DISCUSSION AND ANALYSIS	4-9
BASIC FINANCIAL STATEMENTS:
Government-wide Financial Statements:
Statement of Net Position	10
Statement of Activities	11
Fund Financial Statements:
Balance Sheet – Governmental Funds	12
Reconciliation of Total Governmental Fund Balances
to Net Position of Governmental Activities	13
Statement of Revenues, Expenditures and Changes in Fund
Balances – Governmental Funds	14
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds
to the Statement of Activities	15
Statement of Revenues, Expenditures and Changes in Fund
Balances – Budget and Actual – General Fund	16
Notes to Financial Statements	17-32
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	33-34
MANAGEMENT LETTER	35-38
INDEPENDENT ACCOUNTANTS’ REPORT/COMPLIANCE WITH
SECTION 218.415, FLORIDA STATUTES	39

REPORT OF INDEPENDENT AUDITORS

To the Board of Supervisors
Rivers Edge Community Development District St. Johns County, Florida

Report on Audit of the Financial Statements

Opinion

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

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

Basis for Opinion

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

Responsibilities of Management for the Financial Statements

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

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To the Board of Supervisors
Rivers Edge Community Development District

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the District’s ability to continue as a going concern for one year beyond the financial statement date, including currently known information that may raise substantial doubt thereafter.

Auditor’s Responsibility for the Audit of the Financial Statements

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

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

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

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

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To the Board of Supervisors
Rivers Edge Community Development District

Required Supplementary Information

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

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued a report dated June 15, 2023 on our consideration of the District’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations and contracts.

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

Berger, Toombs, Elam, Gaines & Frank Certified Public Accountants PL
Fort Pierce, Florida June 15, 2023

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

OVERVIEW OF THE FINANCIAL STATEMENTS

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

The Government-wide financial statements are the statement of net position and the statement of activities. These statements use accounting methods similar to those used by private-sector companies. Emphasis is placed on the net position of governmental activities and the change in net position. Governmental activities are primarily supported by special assessments.

The statement of net position presents information on all assets and liabilities of the District, with the difference between assets and liabilities reported as net position. Assets, liabilities, and net position are reported for all Governmental activities.

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

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

OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)

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

The government-wide financial statements and the fund financial statements provide different pictures of the District. The government-wide financial statements provide an overall picture of the District’s financial standing. These statements are comparable to private-sector companies and give a good understanding of the District’s overall financial health and how the District paid for the various activities, or functions, provided by the District. All assets of the District, including capital assets, are reported in the statement of net position. All liabilities, including principal outstanding on bonds are included. In the statement of activities, transactions between the different functions of the District have been eliminated in order to avoid “doubling up” the revenues and expenses. The fund financial statements provide a picture of the major funds of the District. In the case of governmental activities, outlays for long lived assets are reported as expenditures and long-term liabilities, such as general obligation bonds, are not included in the fund financial statements. To provide a link from the fund financial statements to the government-wide financial statements, reconciliation is provided from the fund financial statements to the government-wide financial statements.

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

Financial Highlights

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

The District’s total assets and deferred outflows of resources exceeded total liabilities by
$51,456,753 (net position). Net investment in capital assets was $50,121,032, restricted net position was $335,364 and unrestricted net position was $1,000,357.

Governmental activities revenues totaled $4,888,918 while governmental activities expenses totaled $6,295,185.

OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)

Financial Analysis of the District

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

Net Position

Governmental Activities 2022	2021

Current assets	$	1,312,027	$	988,455	
Restricted assets	1,097,941	1,092,813	
Capital assets, net		70,859,421 		72,988,421 	
Total Assets		73,269,389 		75,069,689 	
Deferred Outflows of Resources		339,506 		362,140 	
Current liabilities	1,305,870	1,111,207	
Non-current liabilities		20,846,272 		21,457,602 	
Total Liabilities		22,152,142 		22,568,809 	
Net investment in capital assets	50,121,032	51,898,101	
Net position - restricted	335,364	100,431	
Net position - unrestricted		1,000,357 		864,488 	
Total Net Position	 $	51,456,753 	 $	52,863,020 	

The increase in current assets and current liabilities is related to the increase in due from other governments and accounts payable in the current year.

The decrease in capital assets is the result of current year depreciation.

The decrease in non-current liabilities is mainly the result of the principal payments made in the current year.

The decrease in net position is mainly the result of depreciation in the current year.

OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)
Financial Analysis of the District (Continued)
The following schedule provides a summary of the changes in net position of the District and is presented by category for comparison purposes.

Change in Net Position

	Governmental	Activities	
	2022	2021	
Program Revenues
Charges for services	

$	3,758,521	
$	3,427,134	
General Revenues			
Investment earnings	6,430		501	
Miscellaneous	1,123,967		982,213	
Total Revenues	4,888,918		4,409,848	

Expenses
General government	

177,274		

178,236	
Physical environment	3,579,966		3,484,880	
Culture/recreation	1,446,343		1,136,265	
Interest and other charges	1,091,602		1,113,879	
Total Expenses	6,295,185		5,913,260	

Change in Net Position	
(1,406,267)		
(1,503,412)	
Net Position - Beginning of Year	52,863,020		54,366,432	

Net Position - End of Year	
$	51,456,753		
$	52,863,020	

The increase in charges for services is related to the increase in special assessments in the current year.
The increase in miscellaneous revenues is related to the increase in cost sharing revenues in the current year.
The increase in physical environment is related to the increase in landscape maintenance expenses in the current year.
The increase in culture/recreation is related to the increase in water use, electric and amenity repairs expenses in the current year.

OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)

Capital Assets Activity

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

Governmental Activities
2022	2021

Land and improvements	$ 23,918,886	$ 23,918,886	
Buildings and improvements	4,603,449	4,603,449	
Infrastructure	59,266,566	59,266,566	
Less: accumulated depreciation		(16,929,480)		(14,800,480)	
Total	 $ 70,859,421 	 $ 72,988,421 	

Current year activity consisted of depreciation of $2,129,000.

General Fund Budgetary Highlights

Budgeted expenditures exceeded actual expenditures primarily due to less irrigation and amenity repair costs than anticipated.

The September 30, 2022 budget was amended for legal, water use and amenity repair expenditures that were higher than originally anticipated.

Debt Management

Governmental Activities debt includes the following:

In October 2016, the District issued $10,765,000 Series 2016 Capital Improvement Revenue and Refunding Bonds. These bonds were issued to finance the acquisition and construction of certain improvements for the benefit of the property owners within the District and to refund and redeem a portion of the Series 2008 Capital Improvement Revenue Bonds. As of September 30, 2022, the balance outstanding was $9,640,000.

In May 2018, the District issued $7,050,000 Series 2018 Capital Improvement Revenue Bonds. These bonds were issued to finance the acquisition and construction of certain improvements for the benefit of the property owners within the District. As of September 30, 2022, the balance outstanding was $6,695,000.

OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)

Debt Management (Continued)

In July 2018, the District issued $3,940,000 Series 2018A-1 Capital Improvement Revenue Refunding Bonds. These bonds were issued to finance the acquisition and construction of certain improvements for the benefit of the property owners within the District and to refund and redeem a portion of the Series 2008 Capital Improvement Revenue Bonds. As of September 30, 2022, the balance outstanding was $3,200,000.

In July 2018, the District issued $2,335,000 Series 2018A-2 Capital Improvement Revenue Refunding Bonds. These bonds were issued to finance the acquisition and construction of certain improvements for the benefit of the property owners within the District and to refund and redeem a portion of the Series 2008 Capital Improvement Revenue Bonds. As of September 30, 2022, the balance outstanding was $1,940,000.

Economic Factors and Next Year’s Budget

Rivers Edge Community Development District does not expect any economic factors to have a significant effect on the financial position or results of operations of the District in fiscal year 2023.

Request for Information

The financial report is designed to provide a general overview of Rivers Edge Community Development District’s finances for all those with an interest. Questions concerning any of the information provided in this report or requests for additional information should be addressed to the Rivers Edge Community Development District, Governmental Management Services, 475 West Town Place, Suite 114, St. Augustine, Florida 32092.

September 30, 2022

ASSETS	
Current Assets	
Cash	
Investments	
Assessments receivable	
Due from other governments	
Due from developer	
Prepaid expenses	
Deposits	
Total Current Assets	
Non-Current Assets	
Restricted Assets	
Investments	
Capital Assets, Not Being Depreciated	
Land and improvements	
Capital Assets, Being Depreciated	
Infrastructure	
Buildings and improvements	
Less: accumulated depreciation	
Total Non-Current Assets	
Total Assets	

DEFERRED OUTFLOWS OF RESOURCES	
Deferred amount on refunding, net	

LIABILITIES	
Current Liabilities	
Accounts payable	
Bonds payable	
Accrued interest	
Total Current Liabilities	
Non-Current Liabilities	
Bonds payable, net	
Total Liabilities	

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

See accompanying notes to financial statements.

Governmental Activities

$	847,566	
40,657	
30,474	
299,264	
8,779	
78,046	
	7,241 	
	1,312,027 	

1,097,941

23,918,886

59,266,566	
4,603,449	
    (16,929,480)	
     71,957,362 	
     73,269,389 	

	339,506 

297,324	
570,000	
       438,546 	
      1,305,870 	

	20,846,272 
	22,152,142 

50,121,032	
331,637	
3,727	
	1,000,357 	
 $	51,456,753 	

For the Year Ended September 30, 2022

$	(177,274)	
(3,579,966)	
(1,446,343)	
	(1,091,602)	
 $	(6,295,185)	

$	120,217	
1,088,021	
876,767	
	1,673,516 	
 $	3,758,521 	

$	(57,057)	
(2,491,945)	
(569,576)	
	581,914 	
(2,536,664)	

General Revenues	
Investment income	
Miscellaneous revenues	
Total General Revenues	

6,430	
    1,123,967 	
    1,130,397 	

Net (Expense)	
Revenues and	
Changes in	
Net Position	
Governmental
Activities	

Functions/Programs	
Governmental Activities	
General government	
Physical environment	
Culture/recreation	
Interest and other charges	
Total Governmental Activities	

Program
Revenues	
Charges for
Services	

Expenses

Change in Net Position	(1,406,267)	
Net Position - October 1, 2021		52,863,020 	
Net Position - September 30, 2022	 $	51,456,753 	

See accompanying notes to financial statements.

River's Edge Community Development District BALANCE SHEET –
GOVERNMENTAL FUNDS
September 30, 2022

Total
Debt	Capital	Governmental

ASSETS	
Cash	
Investments	
Assessments receivable	
Due from other governments	
Due from developer	
Due from other funds	
Prepaid expenses	
Deposits	
Restricted assets	
Cash and investments, at fair value	
Total Assets	

$  847,566	
40,657	
17,139	
299,264	
8,779	
-	
78,046	
7,241	

$	-	
-	
13,335	
-	
-	
1,011	
-	
-	

$	847,566	
40,657	
30,474	
299,264	
8,779	
1,011	
78,046	
7,241	

	General	 	Service	 	Projects	 	Funds	

$	-	
-	

-
-
-
-
-

	- 	  1,094,214 		3,727 	
 $ 1,298,692 	 $ 1,108,560 	 $	3,727 	

	1,097,941 	
 $  2,410,979 	

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

$  297,324	$	-	$	-	$	297,324
	1,011  	-  	-  	1,011 
	298,335  	-  	-  	298,335 

FUND BALANCES	
Nonspendable - prepaids/deposits	85,287	-	
Restricted:	
Debt service	-	1,108,560	
Capital projects	-	-	
Assigned - capital projects	427,653	-	
Unassigned		487,417  	-  		
Total Fund Balances	  1,000,357    1,108,560  		
Total Liabilities and Fund Balances  $ 1,298,692   $ 1,108,560   	

-	85,287

1,108,560	
3,727	
427,653	
	487,417 	
	2,112,644 	
 $  2,410,979 	

- 3,727
-
- 
3,727 
$	3,727 

See accompanying notes to financial statements.

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River's Edge Community Development District RECONCILIATION OF TOTAL GOVERNMENTAL FUND BALANCES
TO NET POSITION OF GOVERNMENTAL ACTIVITIES
September 30, 2022

Total Governmental Fund Balances

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

Capital assets, land and improvements, $23,918,886, buildings and	
improvements, $4,603,449 and infrastructure, $59,266,566, net of	
accumulated depreciation, $(16,929,480), used in governmental	
activities are not current financial resources and therefore, are not	
reported at the fund level.	

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

Long-term liabilities, including bonds payable, $(21,475,000), net of bond	
discount, net, $58,728, are not due and payable in the current period	
and therefore, are not reported at the fund level.	

$	2,112,644

70,859,421

339,506

(21,416,272)

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

	(438,546)

Net Position of Governmental Activities	 $ 51,456,753 

See accompanying notes to financial statements.

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River's Edge Community Development District STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES – GOVERNMENTAL FUNDS
For the Year Ended September 30, 2022

Total
Debt	Capital	Governmental

Revenues	
Special assessments	
Investment income	
Miscellaneous income	
Total Revenues	

$2,085,005	
1,480	
  1,122,790 	
  3,209,275 	

$ 1,673,516	
4,934	
       - 	
  1,678,450 	

$	-	
16	
	- 	
	16 	

$	3,758,521	
6,430	
	1,122,790 	
	4,887,741 	

	General	 	Service	 	Projects	 	Funds	

Expenditures	
Current	
General government	
Physical environment	
Culture and recreation	
Debt service	
Principal	
Interest	
Total Expenditures	

177,274	
1,604,414	
1,292,895	

-	
-	
-	

-	
-	
-	

177,274
1,604,414
1,292,895

-	595,000	-	595,000
	-  	1,074,881  	-  	1,074,881 
  3,074,583  	1,669,881  	-  	4,744,464 

Excess of revenues over/(under) expenditures		134,692  	8,569  	16  	143,277 

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

1,177	
-	
       - 	
    1,177 	

-	
13	
       - 	
      13 	

-	
-	
       (13)	
       (13)	

1,177	
13	
       (13)	
      1,177 	

Net Change in Fund Balances	135,869	8,582	3	144,454	
Fund Balances - October 1, 2021		864,488 		1,099,978 		3,724 		1,968,190 	
Fund Balances - September 30, 2022	 $1,000,357 	 $ 1,108,560 	 $	3,727 	 $	2,112,644 	

See accompanying notes to financial statements.

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RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
For the Year Ended September 30, 2022

Net Change in Fund Balances - Total Governmental Funds

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

The deferred amount on refunding is amortized at the government-wide level as	
interest over the life of the associated bonds payable. This is the current year	
amortization.	

Bond discounts are amortized over the life of the bonds as interest. This is the	
current period amortization.	

$	144,454

Governmental funds report capital outlays as expenditures. However, in the	
Statement of Activities, the cost of those assets is allocated over their	
estimated useful lives as depreciation. This is the amount that depreciation,	
in the current period.	(2,129,000)	

Repayments of principal are expenditures at the fund level, but		
the repayments reduce long-term liabilities in the Statement of Net Position.	595,000	

(22,634)

(3,670)

At the fund level interest is recognized when due. At the government-wide level	
interest is accrued on outstanding debt. This is the current year change	
in accrued interest.	

	9,583 

Change in Net Position of Governmental Activities	 $	(1,406,267)

See accompanying notes to financial statements.

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES – BUDGET AND ACTUAL – GENERAL FUND
For the Year Ended September 30, 2022

Variance with	
Final Budget	
Positive	
(Negative)	

Original	Final	
Budget	Budget	

Actual

Revenues	
Special assessments	
Investment income	
Miscellaneous revenues	
Total Revenues	

 	
$ 2,062,535	
-	
	1,109,135 	
	3,171,670 	

	
$ 2,085,006	
-	
   1,124,041 	
   3,209,047 	

	
$ 2,085,005	
1,480	
	1,122,790 	
	3,209,275 	

	
$	(1)	
1,480	
     (1,251)	
      228 	

Expenditures	
Current	
General government	
Physical environment	
Culture/recreation	
Total Expenditures	

165,164	
1,687,292	
  1,319,214 	
  3,171,670 	

185,759	
1,618,805	
   1,437,755 	
   3,242,319 	

177,274	
1,604,414	
   1,292,895 	
   3,074,583 	

8,485	
14,391	
    144,860 	
    167,736 	

Excess of revenues over/(under)	
expenditures	

	-  	(33,272)		134,692  	167,964 

Other Financing Sources/(Uses)	
Insurance proceeds	

	-  	1,177  	1,177  	- 

Net Change in Fund Balances	-	(32,095)	135,869	167,964

Fund Balances - October 1, 2021		-  	32,095  	864,488  	832,393 

Fund Balances - September 30, 2022

 $	- 

 $	- 

 $ 1,000,357 

 $ 1,000,357 

See accompanying notes to financial statements.

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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

Reporting Entity

The District was established on November 1, 2006, pursuant to the Uniform Community Development District Act of 1980, Chapter 190, Florida Statutes, as amended (the "Act"), by Rule 42FFF-1.001, et seq, Florida Administrative Code, of the Florida Land and Water Adjudicatory Commission as amended September 6, 2011, and June 27, 2017 as a community development district. The District was established for the purposes of financing and managing the acquisition, construction, maintenance and operation of the infrastructure necessary for community development within its jurisdiction. The District is authorized to issue bonds for the purpose, among others, of financing, funding, planning, establishing, acquiring, constructing district roads, landscaping, and other basic infrastructure projects within or outside the boundaries of the Rivers Edge Community Development District. The District contracted its boundaries by approximately 2500 acres to approximately 1677 acres on June 27, 2017. The District is governed by a Board of Supervisors who are elected on at large basis by the qualified electors within the District. The District operates within the criteria established by Chapter 190, Florida Statutes.

As required by GAAP, these financial statements present the Rivers Edge Community Development District (the primary government) as a stand-alone government. The reporting entity for the District includes all functions of government in which the District’s Board exercises oversight responsibility including, but not limited to, financial interdependency, selection of governing authority, designation of management, significant ability to influence operations and accountability for fiscal matters.

Based upon the application of the above-mentioned criteria as set forth in Governmental Accounting Standards, the District has identified no component units.

Measurement Focus and Basis of Accounting

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

Government-wide financial statements

Fund financial statements

Notes to financial statements

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Measurement Focus and Basis of Accounting (Continued)

Government-wide Financial Statements

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

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

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

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

Fund Financial Statements

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

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

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

2. Measurement Focus and Basis of Accounting (Continued)

b. Fund Financial Statements (Continued) Governmental Funds
The District reports fund balance according to Governmental Accounting Standards Board Statement 54 – Fund Balance Reporting and Governmental Fund Type Definitions. The Statement requires the fund balance for governmental funds to be reported in classifications that comprise a hierarchy based primarily on the extent to which the government is bound to honor constraints on the specific purposes for which amounts in those funds can be spent.

The District has various policies governing the fund balance classifications.

Nonspendable Fund Balance – This classification consists of amounts that cannot be spent because they are either not in spendable form or are legally or contractually required to be maintained intact.

Restricted Fund Balance – This classification includes amounts that can be spent only for specific purposes stipulated by constitution, external resource providers, or through enabling legislation.

Assigned Fund Balance – This classification consists of the Board of Supervisors’ intent to be used for specific purposes, but are neither restricted nor committed. The assigned fund balances can also be assigned by the District’s management company.

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

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

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Measurement Focus and Basis of Accounting (Continued)

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

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

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

Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they are said to present a summary of sources and uses of “available spendable resources” during a period.

Because of their spending measurement focus, expenditure recognition for governmental fund types excludes amounts represented by non-current liabilities. Since they do not affect net current assets, such long-term amounts are not recognized as governmental fund type expenditures or fund liabilities.

Amounts expended to acquire capital assets are recorded as expenditures in the year that resources are expended, rather than as fund assets. The proceeds of long- term debt are recorded as an other financing source rather than as a fund liability.

Debt service expenditures are recorded only when payment is due.

Basis of Presentation

Governmental Major Funds

General Fund – The General Fund is the District’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund.

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Basis of Presentation (Continued)

Governmental Major Funds (Continued)

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

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

Non-current Governmental Assets/Liabilities

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

Assets, Deferred Outflows of Resources, Liabilities, and Net Position

Cash and Investments

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

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

Direct obligations of the United States Treasury;

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

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

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Assets, Liabilities, Deferred Outflows of Resources and Net Position (Continued)
Cash and Investments (Continued)
Securities and Exchange Commission, registered money market funds with the highest credit quality rating from a nationally recognized rating agency.
Cash and investments include time deposits, certificates of deposit, money market funds, and all highly liquid debt instruments with original maturities of three months or less.
Restricted Assets
Certain net position of the District are classified as restricted assets on the Statement of Net Position because their use is limited either by law through constitutional provisions or enabling legislation; or by restrictions imposed externally by creditors. In a fund with both restricted and unrestricted net position, qualified expenses are considered to be paid first from restricted net position and then from unrestricted net position.
Capital Assets
Capital assets, which include land and improvements, buildings and improvements and infrastructure, are reported in the governmental activities column.
The District defines capital assets as assets with an initial, individual cost of $5,000 or more and an estimated useful life in excess of one year. The valuation basis for all assets is historical cost.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend its useful life are not capitalized.

Major outlays for capital assets and improvements are capitalized as projects are constructed.

Capital assets of the District are depreciated using the straight-line method over the following estimated useful lives:

Buildings and improvements	30 years
Infrastructure	30 years

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

4. Assets, Liabilities, Deferred Outflows of Resources and Net Position (Continued)
Deferred Outflows of Resources
Deferred outflow of resources is the consumption of net position by the government that is applicable to a future reporting period. Deferred amount on refunding is amortized and recognized as a component of interest expense over the life of the bond.
Unamortized Bond Discount
Bond discounts are presented on the government-wide financial statements. The costs are amortized over the life of the bonds. For financial reporting, the unamortized bond discount is netted against the applicable long-term debt.
Budgets
Budgets are prepared and adopted after public hearings for the governmental funds, pursuant to Chapter 190, Florida Statutes. The District utilizes the same basis of accounting for budgets as it does for revenues and expenditures in its various funds. The legal level of budgetary control is at the fund level. All budgeted appropriations lapse at year end. Formal budgets are adopted for the general and debt service funds. As a result, deficits in the budget columns of the accompanying financial statements may occur.
NOTE	B	–		RECONCILIATION	OF	GOVERNMENT-WIDE	AND	FUND	FINANCIAL STATEMENTS
Explanation of Differences Between the Governmental Fund Balance Sheet and the Government-wide Statement of Net Position
“Total fund balances” of the District’s governmental funds, $2,112,644, differs from “net position” of governmental activities, $51,456,753, reported in the Statement of Net Position. This difference primarily results from the long-term economic focus of the Statement of Net Position versus the current financial resources focus of the governmental fund balance sheet. The effect of the differences is illustrated as follows:
Capital related items
When capital assets (land, buildings and improvements and infrastructure that are to be used in governmental activities) are purchased or constructed, the cost of those assets is reported as expenditures in governmental funds. However, the Statement of Net Position included those capital assets among the assets of the District as a whole.

Land and improvements	$	23,918,886	
Buildings and improvements	4,603,449	
Infrastructure	59,266,566	
Less: accumulated depreciation		(16,929,480)	
Total	$	70,859,421 	

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

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

Long-term debt transactions

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

Bonds payable	$ (21,475,000)	
Bond discount, net		58,728 	
Total	$ (21,416,272)	

Deferred amount on refunding

The difference between the outstanding balance of the old debt and the cost of the new debt is a deferred outflow of resources. This balance is amortized over the life of the new debt. The unamortized balance is reflected as deferred amount on refunding.

Deferred amount on refunding, net	$	339,506 

Accrued interest

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

Accrued interest	$	(438,546)

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

The “net change in fund balances” for government funds, $144,454, differs from the “change in net position” for governmental activities, $(1,406,267), reported in the Statement of Activities. The differences arise primarily from the long-term economic focus of the Statement of Activities versus the current financial resources focus of the governmental funds. The effect of the differences is illustrated on the next page:

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

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

Capital related items

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

Depreciation	$	(2,129,000)

Deferred amount on refunding

Amortization expense of the deferred amount on refunding does not require the use of current resources and therefore is not reported in the governmental funds.

Amortization of deferred amount on refunding	$	(22,634)

Long-term debt transactions

Repayments of bond principal are reported as expenditures in the governmental funds and, thus, have the effect of reducing fund balance because current financial resources have been used; however, the repayment reduces non-current liabilities at the government-wide level. Also, some expenses reported in the statement of activities do not require the use of current financial resources; therefore, are not reported as expenditures in governmental funds.

Principal payments on long-term debt	$	595,000	
Amortization of bond discount	(3,670)	
Change in accrued interest		9,583	
Total	$	600,913	

NOTE C – CASH AND INVESTMENTS

All deposits are held in qualified public depositories and are included on the accompanying balance sheet as cash and investments.

Custodial Credit Risk – Deposits

Custodial credit risk is the risk that in the event of a bank failure, the District's deposits may not be returned to it. The District does not have a formal deposit policy for custodial credit risk, however, they follow the provisions of Chapter 280, Florida Statutes regarding deposits and investments. As of September 30, 2022, the District's bank balance was $908,368 and the carrying value was $847,566. Exposure to custodial credit risk was as follows. The District maintains all deposits in a qualified public depository in accordance with the provisions of Chapter 280, Florida Statutes, which means that all deposits are fully insured by Federal Depositors Insurance or collateralized under Chapter 280, Florida Statutes.

Investments

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

Investment		Maturity Date		Fair Value	
First American Treasury Obligation		13 Days*		$	40,657	
First American Government Obligation		14 Days*			1,097,941 	
Total				 $	1,138,598 	

*Maturity is a weighted average maturity.

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

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

Based on the criteria in the preceding paragraph, the investments listed above are Level 1 asset.

NOTE C – CASH AND INVESTMENTS (CONTINUED)

Investments (Continued)

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

Interest Rate Risk

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

Credit Risk

The District's investments are limited by state statutory requirements and bond compliance. The District has no investment policy that would further limit its investment choices. As of September 30, 2022, the District’s investments in both First American Treasury Obligation and First American Government Obligation were rated AAAm by Standards and Poor’s.

Concentration of Credit Risk

The District places no limit on the amount it may invest in any one fund. The investments in First American Treasury Obligation Funds represent 4% of the District's total investments. The investments in First American Government Obligation funds represent 96% of the District’s total investments.

The types of deposits and investments and their level of risk exposure as of September 30, 2022 were typical of these items during the fiscal year then ended. The District considers any decline in fair value for certain investments to be temporary.

NOTE D – CAPITAL ASSETS

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

Governmental Activities: Capital assets, not depreciated:

Balance	Balance
10/1/21	Additions	Deletions	09/30/22

Land and improvements

Capital assets, being depreciated:

$	23,918,886	$

-	$	-

$	23,918,886

Infrastructure	59,266,566		-		-		59,266,566	
Buildings and improvements	4,603,449		-		-		4,603,449	
Total Capital Assets, Being Depreciated	63,870,015		-		-		63,870,015	
Less accumulated depreciation for: Infrastructure	
(13,879,791)		
(1,975,552)		
-		
(15,855,343)	
Buildings and improvements	(920,689)		(153,448)		-		(1,074,137)	
Total Accumulated Depreciation	(14,800,480)		(2,129,000)		-	(16,929,480)	
Total Capital Assets Depreciated, Net	49,069,535		(2,129,000)		 
-	46,940,535	
Governmental Activities Capital Assets	$	72,988,421		$	(2,129,000)		 
$	-	$	70,859,421	

During the year, depreciation of $1,975,552 was charged to physical environment and $153,448 was charged to culture/recreation.

NOTE E – LONG-TERM DEBT

Long-term debt is comprised of the following:

Governmental Activities

The following is a summary of activity for long-term debt of the Governmental Activities for the year ended September 30, 2022:

Long-term debt at October 1, 2021	$	22,070,000	
Principal payments		(595,000)	
Long-term debt at September 30, 2022	21,475,000	
Less: bond discount, net		(58,728)	
Bonds Payable, Net at September 30, 2022	$	21,416,272 	

NOTE E – LONG-TERM DEBT (CONTINUED)		
Long-term debt for Governmental Activities is comprised of the following:		
Capital Improvement Revenue and Refunding Bonds		
$10,765,000 Series 2016 Capital Improvement Revenue and Refunding Bonds are due in annual principal installments beginning May 2017 maturing May 2046. Interest at various rates between 4.5% and 5.3% is due May and November beginning May 2017. Current portion is $210,000.	

$	9,640,000	
$7,050,000 Series 2018 Capital Improvement Revenue Bonds are due in annual principal installments beginning May 2020 maturing May 2049. Interest at various rates between 4.1% and 5.35% is due May and November beginning November 2018. Current portion is $120,000.	

6,695,000	
$3,940,000 Series 2018A-1 Capital Improvement Revenue Bonds are due in annual principal installments beginning May 2019 maturing May 2038. Interest at various rates between 2% and 3.75% is due May and November beginning November 2018. Current portion is 155,000.	

3,200,000	
$2,335,000 Series 2018A-2 Capital Improvement Revenue Bonds are due in annual principal installments beginning May 2019 maturing May 2038. Interest at various rates between 4.375% and 5% is due May and November beginning November 2018. Current portion is $85,000.	

	1,940,000	
Bond payable	21,475,000	
Bond discount, net		(58,728)	
Bonds Payable, Net	$	21,416,272 	

NOTE E – LONG-TERM DEBT (CONTINUED)

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

Year Ending
  September 30,		
	Principal		
	Interest		
	Total		

2023	
$	570,000	
$  1,052,511	
$  1,622,511	
2024	590,000	1,030,388	1,620,388	
2025	615,000	1,006,409	1,621,409	
2026	640,000	981,184	1,621,184	
2027	675,000	954,488	1,629,488	
2028-2032	3,860,000	4,280,556	8,140,556	
2033-2037	4,915,000	3,265,970	8,180,970	
2038-2042	4,340,000	2,066,680	6,406,680	
2043-2047	4,385,000	889,105	5,274,105	
2048-2049		885,000 		71,690 		956,690 	
Totals	 $ 21,475,000 	 $ 15,598,981 	 $ 37,073,981 	

Summary of Significant Bond Resolution Terms and Covenants

Capital Improvement Revenue and Refunding Bonds

Significant Bond Provisions

The Series 2016 Bonds are subject to redemption at the option of the District prior to their maturity, in whole or in part, at any time after May 1, 2026 at a redemption price set forth in the Trust Indenture. The Series 2016 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 Trust Indenture.

The Series 2018 Bonds are subject to redemption at the option of the District prior to their maturity, in whole or in part, at any time after May 1, 2028 at a redemption price set forth in the Trust Indenture. The Series 2018 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 Trust Indenture.

The Series 2018A-1 and Series 2018A-2 Bonds are subject to redemption at the option of the District prior to their maturity, in whole or in part, at any time after May 1, 2028 at a redemption price equal to the principal amount of the Series 2018A-1 Bonds and Series 2018A-2 Bonds to be redeemed, together with accrued interest to the date of redemption. The Series 2018A-1 and Series 2018A-2 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 Trust Indenture.

NOTE E – LONG-TERM DEBT (CONTINUED)

Summary of Significant Bond Resolution Terms and Covenants (Continued)

Capital Improvement Revenue and Refunding Bonds (Continued)

Significant Bond Provisions (Continued)

The Trust Indenture established certain amounts be maintained in a reserve account. In addition, the Trust Indenture has certain restrictions and requirements relating principally to the use of proceeds to pay for the infrastructure improvements and the procedures to be followed by the District on assessments to property owners. The District agrees to levy special assessments in annual amounts adequate to provide payment of debt service and to meet the reserve requirements.

Depository Funds

The bond resolution establishes certain funds and determines the order in which revenues are to be deposited into these funds. A description of the significant funds, including their purposes, is as follows:

Reserve Funds – The Series 2016 Reserve Account shall not exceed 50% of the maximum annual debt service requirement. As of September 30, 2022, the reserve account balance for the Series 2016 was $215,631. As of September 30, 2022, the maximum reserve account balance for the Series 2016 was $215,631. The Series 2018 Reserve Accounts were funded from the proceeds of the Series 2018 Bonds in amounts equal to 25 percent of the outstanding maximum annual debt service of the Series 2018 Bonds. The Series 2018A-1 and Series 2018A-2 Reserve Accounts were funded from the proceeds of the Series 2018A-1 and Series 2018A-2 Bonds in amounts equal to 50 percent of the outstanding Series 2018A-1 and Series 2018A-2 Bonds. Monies held in the reserve accounts will be used only for the purposes established in the Trust Indenture.

The following is a schedule of required reserve balances as of September 30, 2022:

Reserve	Reserve
	Balance	  Requirement 
Capital Improvement Revenue Bonds, Series 2018	$	117,191	$	117,126	
Capital Improvement Revenue Refunding Bonds, Series 2018A-1	$	89,016	$	88,813	
Capital Improvement Revenue Refunding Bonds, Series 2018A-2	$	137,838	$	132,438	

NOTE F – ECONOMIC DEPENDENCY

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

NOTE G – RISK MANAGEMENT

The District is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; and natural disasters for which the government carries commercial insurance. There were no claims or settled claims from these risks that exceeded commercial insurance coverage in the last three years.

NOTE H – INTERLOCAL AGREEMENT

In November 2019, the District entered into an interlocal cost share agreement for shared improvement operation and maintenance services and providing for the joint use of amenity facilities with River’s Edge II Community Development District and River’s Edge III Community Development District. For the fiscal year ended, September 30, 2022, the funding from this agreement with the District was $688,906 from River’s Edge II Community Development District and $391,479 from River’s Edge III Community Development District.

NOTE I – SUBSEQUENT EVENT
In November 2022, the District made a prepayment of $30,000 on the Series 2016 Capital Improvement Revenue and Refunding Bonds.

In May 2023, the District made a prepayment of $5,000 on the Series 2016 Capital Improvement Revenue and Refunding Bonds. As well as a $15,000 prepayment on the Series 2018 Capital Improvement Revenue Bonds, a $5,000 prepayment on the Series 2018A-1 Capital Improvement Revenue Refunding Bonds and a $85,000 prepayment on the Series 2018A-2 Capital Improvement Revenue Refunding Bonds.

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
Rivers Edge Community Development District St. Johns County, Florida

We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements, as listed in the table of contents, of Rivers Edge Community Development District, as of and for the year ended September 30, 2022, and the related notes to the financial statements, which collectively comprise the basic financial statements and have issued our report thereon dated June 15, 2023.

Report on Internal Control Over Financial Reporting

In planning and performing our audit, we considered Rivers Edge Community Development District's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of Rivers Edge Community Development District’s internal control. Accordingly, we do not express an opinion on the effectiveness of Rivers Edge Community Development District's internal control.

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

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

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To the Board of Supervisors
Rivers Edge Community Development District

Report on Compliance and Other Matters

As part of obtaining reasonable assurance about whether Rivers Edge Community Development District's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of this Report

The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Berger, Toombs, Elam, Gaines & Frank Certified Public Accountants PL
Fort Pierce, Florida June 15, 2023

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MANAGEMENT LETTER

To the Board of Supervisors
Rivers Edge Community Development District St. Johns County, Florida

Report on the Financial Statements

We have audited the financial statements of the Rivers Edge Community Development District as of and for the year ended September 30, 2022, and have issued our report thereon dated June 15, 2023.

Auditor’s Responsibility

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

Other Reporting Requirements

We have issued our Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards and our Independent Auditor’s Report on an examination conducted in accordance with AICPA Professionals Standards, AT-C Section 315, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports, which are dated July 15, 2023, should be considered in conjunction with this management letter.

Prior Audit Findings

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

Financial Condition and Management

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

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To the Board of Supervisors
Rivers Edge Community Development District

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

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

Specific Information

The information provided below was provided by management and has not been audited; therefore, we do not express an opinion or provide any assurance on the information.
As required by Section 218.39(3)(c), Florida Statutes, and Section 10.554(1)(i)6, Rules of the Auditor General, the Rivers Edge Community Development District reported:
The total number of district employees compensated in the last pay period of the District’s fiscal year: 5. Board of Supervisors may not be considered employees for other legal purposes.
The total number of independent contractors to whom nonemployee compensation, defined as individuals or entities that receive 1099s, was paid in the last month of the District’s fiscal year: 35
All compensation earned by or awarded to employees, whether paid or accrued, regardless of contingency: $12,005
All compensation earned by or awarded to nonemployee independent contractors, whether paid or accrued, regardless of contingency: $2,443,903
Each construction project with a total cost of at least $65,000 approved by the District that is scheduled to begin on or after October 1, 2021, together with the total expenditures for such project: The District did not have any construction projects.
A budget variance based on the budget adopted under Section 189.016(4), Florida Statutes, before the beginning of the fiscal year being reported if the District amends a final adopted budget under Section 189.016(6), Florida Statutes: The budget was amended, see the next page.
As required by Section 218.39(3)(c), Florida Statutes, and Section 10.554(1)(i)8, Rules of the Auditor General, the Rivers Edge Community Development District reported:
The rate or rates of non-ad valorem special assessments imposed by the District: The General Fund, $973 - $12,921.36, and Debt Service Funds, $723.16 - $1,754.07.
The amount of special assessments collected by or on behalf of the District: Total special assessments collected was $3,758,521.
The total amount of outstanding bonds issued by the District and the terms of such bonds: Series 2016 Bonds, $9,640,000, maturing May 2046, Series 2018 Bonds,
$6,695,000, maturing May 2049, and Series 2018A Bonds, $5,140,000 maturing May 2038.
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To the Board of Supervisors

Original
	Budget		

	Actual		Variance with Original Budget Positive
	(Negative)		
evenues
Special assessments	$ 2,062,535	$  2,085,005	$	22,470	
Investment income	-	1,480	1,480	
Miscellaneous revenues		1,109,135 		1,122,790 		13,655 	
Total Revenues		3,171,670 		3,209,275 		37,605 	

Rivers Edge Community Development District

R

Expenditures Current
General government	165,164	177,274	(12,110)	
Physical environment	1,687,292	1,604,414	82,878	
Culture/recreation		1,319,214 		1,292,895 		26,319 	
Total Expenditures		3,171,670 		3,074,583 		97,087 	
Excess of revenues over/(under) expenditures	
	- 	
	134,692 	
	134,692 	

Other Financing Sources/(Uses)				
Insurance proceeds		- 			1,177 			1,177 	
Net Change in Fund Balances	-		135,869		135,869	
Fund Balances - October 1, 2021		- 			864,488 			864,488 	
Fund Balances - September 30, 2022	 $	- 		 $  1,000,357 		 $	1,000,357 	

Additional Matters						

Section 10.554(1)(i)3., Rules of the Auditor General, requires us to communicate noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but warrants the attention of those charged with governance. In connection with our audit, we did not note any such findings.

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To the Board of Supervisors
Rivers Edge Community Development District

Purpose of this Letter

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

Berger, Toombs, Elam, Gaines & Frank Certified Public Accountants PL
Fort Pierce, Florida June 15, 2023

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INDEPENDENT ACCOUNTANTS’ REPORT/COMPLIANCE WITH SECTION 218.415, FLORIDA STATUTES

To the Board of Supervisors
Rivers Edge Community Development District St. Johns County, Florida

We have examined Rivers Edge Community Development District's compliance with Section 218.415, Florida Statutes during the year ended September 30, 2022. Management is responsible for Rivers Edge Community Development District’s compliance with those requirements. Our responsibility is to express an opinion on Rivers Edge Community Development District’s compliance based on our examination.

Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about Rivers Edge Community Development District’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on Rivers Edge Community Development District’s compliance with the specified requirements.

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

Berger, Toombs, Elam, Gaines & Frank Certified Public Accountants PL
Fort Pierce, Florida June 15, 2023

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