Central Lake Community Development District 

 

ANNUAL FINANCIAL REPORT 

 

September 30, 2022 

 

 


Central Lake Community Development District 

 

ANNUAL FINANCIAL REPORT 

 

September 30, 2022 

 

TABLE OF CONTENTS 

 

 

 Page 

 Number 

 

FINANCIAL SECTION 

 

 

REPORT OF INDEPENDENT AUDITORS 1-3 

 

MANAGEMENT’S DISCUSSION AND ANALYSIS 4-7 

 

BASIC FINANCIAL STATEMENTS 

 Statement of Net Position – Enterprise Fund 8 

 Statement of Revenues, Expenses and Changes in Net 

 Position – Enterprise Fund 9 

 Statement of Cash Flows – Enterprise Fund 10 

 

 Notes to Financial Statements 11-18 

 

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 19-20 

 

MANAGEMENT LETTER 21-23 

 

INDEPENDENT ACCOUNTANTS’ REPORT/COMPLIANCE WITH 

 SECTION 218.415, FLORIDA STATUTES 24 

 

 


















REPORT OF INDEPENDENT AUDITORS 





To the Board of Supervisors 

Central Lake Community Development District 

Lake County, Florida 





Report on Audit of the Financial Statements 



Opinion 



We have audited the financial statements of the business-type activities and Enterprise Fund of 
Central Lake 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 business-type activities and Enterprise Fund of Central Lake 
Community Development District as of September 30, 2022, 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. 



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. 




To the Board of Supervisors 

Central Lake 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. 

 


To the Board of Supervisors 

Central Lake 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 
November 30, 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 Central Lake 
Community Development District’s internal control over financial reporting and compliance. 

 

 

 

 

 

Berger, Toombs, Elam, Gaines & Frank 

Certified Public Accountants PL 

Fort Pierce, Florida 

 

November 30, 2023 


Management’s Discussion and Analysis (MD&A) of Central Lake 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 two components; 1) Financial statements, 2) 
Notes to financial statements. The financial statements present financial information for the 
District’s major fund. The Notes to financial statements provide additional information 
concerning the District’s finances that are not disclosed in the financial statements. 

 

The District financial statements consist of three basic financial statements: the Statement of 
Net Position, the Statement of Revenues, Expenses and Changes in Net Position and the 
Statement of Cash Flows. These statements provide information on the District as a whole 
and present a long-term view of the District's Finances. 

 

The Management's Discussion and Analysis, Financial Statements and accompanying Notes 
are prepared in accordance with the appropriate Governmental Accounting Standards Board 
(GASB) pronouncements. 

 

The Statement of Net Position presents information on all assets and liabilities of the District, 
with the difference between assets and liabilities reported as net position. Net position is 
reported in three categories; 1) net investment in capital assets, 2) restricted and 3) 
unrestricted. 

 

Assets 

 

Total assets of the District at September 30, 2022 were $3,135,537. Total assets decreased by 
$(242,984) or (7.19)% from the prior fiscal year primarily due to a decrease in cash and 
investments. Total non-current assets net of depreciation was $2,851,062. 

 

Liabilities 

 

Total liabilities of the District at September 30, 2022 were $3,160,321, a decrease of $(267,022) 
or (7.8)% decrease from the prior year. This decrease is primarily attributed to a decrease in 
other current liabilities at fiscal year-end. 

 

 


OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED) 

 

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 liabilities exceeded total assets by $(24,784) (net position). 
• The Enterprise Fund had $712,786 in revenues and $682,959 in expenses. 


 

Financial Analysis of the District 

 

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

 

Net Position 

 

 

The decrease in capital assets is related to depreciation/amortization exceeding the equipment 
additions in the current year. 

20222021Current assets284,475$ 504,685$ 
Capital assets2,851,062 2,873,836 * 
Total Assets3,135,537 3,378,521 *
Current liabilities83,743 304,862 
Non-current liabilities3,076,578 3,128,270 *
Total Liabilities3,160,321 3,433,132 *
Net PositionNet investment in capital assets131,118 92,075 
Net position - unrestricted(155,902) (146,686) * 
Total Net Position(24,784)$ (54,611)$ *
*RestatedEnterprise Fund 


The decrease in liabilities is related to the decrease in other current liabilities 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 

 

 

The decrease in charges for services is primarily related to the decrease in sewer revenues in 
the current year. 

 

20222021Program Revenues 
Charges for services593,515$ 610,755$ 
General Revenues 
Investment earnings177 239 
Miscellaneous119,094 115,075 
Total Revenues712,786 726,069 
Expenses 
General government171,000 95,422 
Water and sewer511,959 740,947 * 
Total Expenses682,959 836,369 
Change in Net Position29,827 (110,300) 
Net Position - Beginning of Year(54,611) 55,689 *
Net Position - End of Year(24,784)$ (54,611)$ 
*RestatedEnterprise Fund
The increase in miscellaneous revenues is due to more utility expansion fees collected in the 
current year. 

 

The decrease in total expenses is related to decreases in repairs and maintenance and lease 
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 at September 30, 
2022 and 2021. 





The Enterprise Fund had depreciation/amortization of $101,330 and additions of $78,556. 

 Description 20222021Right-to-use asset, net2,719,944$ 2,781,761$ *
Equipment204,062 125,506 
Accumulated depreciation(72,944) (33,431) 
Total Capital Assets (Net)2,851,062$ 2,873,836$ 
*RestatedEnterprise Fund

Economic Factors and Next Year’s Budget 



Central Lake Community Development District does not expect any economic factors to have a 
significant effect on the financial position or results of operations of the water and sewer 
operation of the District in fiscal year 2023. 



Request for Information 



The financial report is designed to provide a general overview of Central Lake 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 Central Lake Community Development District, Government Management Services-CF, 
LLC, 219 East Livingston Street, Orlando, Florida 32801. 








Central Lake Community Development DistrictSTATEMENT OF NET POSITION – ENTERPRISE FUNDSeptember 30, 2022

Water and Sewer

FundASSETSCurrent AssetsCash$ 214,984Investments16,540Accounts receivable33,120Prepaid expenses19,831Total Current Assets284,475Non-current AssetsCapital assets, being depreciated:
Right-to-use-asset, net2,719,944Equipment204,062Accumulated depreciation(72,944)
Total Non-current Assets2,851,062Total Assets3,135,537LIABILITIESCurrent LiabilitiesAccounts payable and accrued expenses26,592Unearned revenues5,789Other current liabilities25,000Lease payable26,362Total Current Liabilities83,743Non-current LiabilitiesLease payable3,076,578Total Liabilities3,160,321NET POSITIONNet investment in capital assets131,118Unrestricted(155,902)
Total Net Position$ (24,784)

See accompanying notes.

- 8 -


Central Lake Community Development DistrictSTATEMENT OF REVENUES, EXPENSES AND CHANGESIN NET POSITION – ENTERPRISE FUNDFor the Year Ended September 30, 2022

Water and 
Sewer Fund

Operating RevenuesWater and sewer charges$ 593,515Reservation and maintenance fees107,590Miscellaneous revenues11,504Total Operating Revenues712,609

Operating ExpensesGeneral and administrative171,000Costof sales and services387,289Total Operating Expenses558,289

Operating Income/(Loss)154,320

Non-operating revenues/(expenses)
Interest and other charges(124,670)
Interest income177Total Non-opearting revenues/(expenses)(124,493)

Change In Net Position29,827

Net Position - October 1,2021,Restated(54,611)

Net Position - September 30, 2022$ (24,784)

See accompanying notes.

- 9 -


Central Lake Community Development DistrictSTATEMENT OF CASH FLOWS – ENTERPRISE FUNDFor the Year Ended September 30, 2022Water andSewer FundCash Flows From Operating ActivitiesCash received from customers$451,543Cash received from other sources11,504Cash paid to suppliers(463,446)
Net Cash (Used) By Operating Activities(399)
Cash Flows From Capital and 
Related Financing Activities:
Purchases of capital assets(78,556)
Lease principal payments(25,330)
Lease interest payments(124,670)
Net Cash (Used) by Capital and Related Financing Activities(228,556)
Cash Flows From Investing Activities:
Proceeds from sale of investments88,038Purchases of investments(177)
Interest income 177Net Cash Provided by Investing Activities88,038Net (decrease) in cash and cash equivalents(140,917)
Cash and equivalents - October 1, 2021355,901Cash and equivalents - September 30, 2022$214,984Reconciliation of Net Operating income to NetCash (Used) By Operating ActivitiesCash Flows From Operating ActivitiesOperating income/(loss)$154,320Adjustments to reconcile operating income to net cash(used) by operating activitiesDepreciation/amortization101,330Changes in assets and liabilitiesIncrease in accounts receivable(7,109)
Increase in prepaid expenses(1,459)
Decrease in accounts payable and accrued liabilities(5,028)
Decrease in other current liabilities(242,453)
Total Adjustments(154,719)
Net Cash Provided By Operating Activities$(399)
See accompanying notes.
- 10 -


 

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 

 

The financial statements of Central Lake Community Development District (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. 

 

 1. Reporting Entity 

 

The District was established on May 11, 2001 pursuant to the Uniform Community 
Development District Act of 1980, Chapter 190, Florida Statutes, as amended (the 
"Act"), by an Ordinance #2001-75 of the Board of County Commissioners of Lake 
County, as a Community Development District. The District was established for the 
purposes of financing and managing the acquisition, construction, maintenance and 
operation of the water and wastewater system necessary for community development 
within its jurisdiction. The District is governed by a five-member Board of Supervisors 
who are elected by qualified electors of the District. The District operates within the 
criteria established by Chapter 190, Florida Statutes. 

 

As required by GAAP, these financial statements present the Central Lake 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 includes, but is 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, the District has identified no 
component units. 

 


 

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 

 

 2. Basis of Presentation 

 

The Water and Sewer Fund is an enterprise fund. An enterprise fund is a proprietary 
type fund used to account for operations (a) that are financed and operated in a manner 
similar to private business enterprises - where the intent of the governing body is that the 
costs (expense including depreciation) of providing goods or services to the general 
public on a continuing basis be financed or recovered primarily through user charges, 
meter fees and connection fees, or (b) where the governing body has decided that 
periodic determination of revenues earned, expense incurred, and/or net income is 
appropriate for capital maintenance, public policy, management control, accountability, 
or other purposes. 

 

Enterprise fund operating revenues result from exchange transactions associated with 
the principal activity of the fund. Exchange transactions are those in which each party 
receives and gives up essentially equal values. Non-operating revenues result from 
non-exchange transactions or ancillary activities. 

 

 3. Assets, Liabilities, and Net Position or Equity 

 

 a. 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: 

 

1. Negotiable direct or indirect obligations which are secured by the United 
States Government; 

2. The Local Government Surplus Funds Trust as created by Section 218.415, 
Florida Statutes; 

3. Interest-bearing time deposits or savings accounts in authorized financial 
institutions; 

4. Obligations guaranteed by the Government National Mortgage Association or 
similarly structured and secured associations or corporations. 


 

For purposes of the statement of cash flows, cash equivalents include time deposits, 
certificates of deposit and all highly liquid debt instruments with original maturities of 
three months or less. 




NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 



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



b.Restricted Assets



Certain net position of the District is classified as restricted net position on theStatement of Net Position because their use is limited either by law throughconstitutional provisions or enabling legislation; or by restrictions imposed externallyby creditors. In a fund with both restricted and unrestricted net position, qualifiedexpenses are considered to be paid first from restricted net position and then fromunrestricted net position.



c.Capital Assets



Capital assets, which includes equipment, are reported in the Statement of NetPosition.



The District defines capital assets as assets with an initial, individual cost of $5,000or more and an estimated useful life in excess of two years. The valuation basis forall assets is historical cost.



The costs of normal maintenance and repairs that do not add to the value of theasset or materially extend its useful life are not capitalized.



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



Depreciation of capital assets is computed and recorded by utilizing the straight-linemethod. Estimated useful lives of the various classes of depreciable capital assetsare as follows:



Equipment 5 years 



d.Leases



The District determines if an arrangement is a lease at inception. Lesseearrangements for governmental funds are included as right-to-use lease assets andlease liabilities in the Statement of Net Position. Lessee arrangements for proprietaryfunds are included as right-to-use lease assets and lease liabilities in the Statementof Net Position.



Payment for short-term leases with a lease term of twelve months or less arerecognized as expenses as incurred. The District has a $25,000 threshold, for totallease payments, for leases subject to GASB 87. Short-term leases and leases underthe threshold are not included as lease liabilities or right-to-use lease assets on theStatement of Net Position. The right-to-use assets are amortized on a straight-linebasis over the terms of the related leases.


 

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 

 

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

 

d. Leases (Continued) 

 

 Governmental Accounting Standards Board Statement No. 87 

 

The District implemented GASB Statement No. 87, Leases, which changes the 
accounting and financial reporting for leases. GASB Statement No. 87 defines a 
lease as a contract that conveys the right to use another entity’s nonfinancial asset 
as specified in the contract for a period of time in an exchange or exchange-like 
transaction. Under GASB Statement No. 87, leases other than short-term leases, 
defined as having a maximum possible term of twelve months or less, are required to 
be recognized on the Statement of Net Position in the financial statements of the 
District. A lessee should recognize a lease liability and an intangible right-to-use 
leased asset, and a lessor should recognize a lease receivable and a deferred inflow 
of resources. 

 

For one year look back at the implementation, October 1, 2020, the District, as 
lessee under the business-type activities, recognized a lease liability of $3,152,610 
along with corresponding right-to-use lease asset of $2,843,578. 

 

NOTE B – 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 deposits had a bank balance of $228,394 
and a carrying value of $214,984. Exposure to custodial credit risk was as follows. The District 
maintains all deposits in a qualified public depository in accordance with the provisions of 
Chapter 280, Florida Statutes, which means that all deposits are fully insured by Federal 
Depositors Insurance or collateralized under Chapter 280, Florida Statutes. 

 

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

 

 

InvestmentMaturitiesFair ValueFlorida PRIME21 days*16,540$ 
*Weighted average maturity
NOTE B – CASH AND INVESTMENTS (CONTINUED) 

 

The District categorizes its fair value measurement within the fair value hierarchy 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 realizable and is 
based on quoted price for identical assets, or liabilities, in an active market. Level 2 uses 
significant other observable inputs when obtained quoted prices for identical or similar assets, or 
liabilities, in markets that are not active. Level 3 is the least reliable and uses significant 
unobservable inputs that uses the best information available under the circumstances which 
includes the District's own data in measuring unobservable inputs. 

 

Based on the criteria in the preceding paragraph, the District did not have any investment 
subject to the fair value hierarchy. 

 

Investments 

 

The District’s investment policy allows management to invest funds in investments permitted 
under Section 218.415, Florida Statutes. The investment in Florida PRIME is measured at 
amortized cost. Florida PRIME has established policies and guidelines regarding participant 
transactions and the authority to limit or restrict withdrawals or impose a penalty for an early 
withdrawal. As of September 30, 2022, there were no redemption fees, maximum transaction 
amounts, or any other requirements that would limit daily access to 100 percent of the account 
value. 

 

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, Florida PRIME was rated AAAm by Standard & Poor’s. 

 

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. 

 

Concentration of Credit Risk 

 

The District places no limit on the amount it may invest. The investments in the Florida PRIME 
represents 100% of the Districts 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 C – CAPITAL ASSETS 

 

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

 

Depreciation charged to the water and sewer function was $39,513. 
BalanceBalanceOctober 1,September 30,2021AdditionsDeletions2022Enterprise FundCapital assets, being depreciated: 
Right to use asset $ 2,781,761 $ - $ (61,817) $ 2,719,944 
Equipment 125,506 78,556 - 204,062 
Total capital assets, depreciated 2,907,267 78,556 (61,817) 2,924,006 
Less accumulated depreciation for: 
Equipment (33,431) (39,513) - (72,944)
Capital Assets, Net $ 2,873,836 
$ 39,043 $ (61,817) $ 2,851,062 

 

NOTE D – RAM FEES 

The District began assessing a $2 per month Reserve and Maintenance (“RAM”) fee on each 
equivalent residential connection (“ERC”) of undeveloped lands in December 2014. The fee 
increased to $4 per month in April 2016. The Board held a public hearing and adopted the fee 
via motion at the beginning of fiscal year 2015. The fees are to cover maintenance costs for the 
idle sewer plant which is not yet being used due to undeveloped units. RAM fees totaled 
$107,496 during the year-end September 30, 2022, which includes a receivable balance of 
$544. 


NOTE E – LEASES 

 

Business-type Activities 

 

The District, as lessee, entered into an agreement to lease a water and wastewater facility from 
a related party. The agreement qualifies as a lease under GASB 87 and, therefore, has been 
recorded at the present value of future minimum lease payments as of the date of inception. In 
addition, in accordance with the implementation of GASB 87, the District has recorded a right-
to-use asset for the leased facility. 

 

In July 2002, the initial agreement was executed to lease a water and wastewater facility and 
requires 60 monthly base payments of $15,000. In August 2006, the original lease was 
amended to provide the District with six optional 10-year renewals. In January 2013, the lease 
was amended to decrease the monthly base amount to $12,500. The District has exercised two 
of the six optional renewals, and it is reasonably likely that the remaining renewal options will be 
exercised. The lease liability was measured at a discount rate of 4%, which is the District’s 
incremental borrowing rate. In addition to monthly base payments, the District recognized 
variable lease payments for facility maintenance costs totaling $38,909 for the year-end 
September 30, 2022. As a result of the lease, the District reported a right-to-use asset with a net 
book value of $2,719,944 at September 30, 2022. 

 

The future minimum payments under these lease agreements and the present value of the 
minimum payments as of September 30, 2022, were as follows: 

 

 

Year Ending 
September 30,PrincipalInterestTotal202326,362$ 123,638$ 150,000$ 
202427,436 122,564 150,000 
202528,554 121,446 150,000 
202629,717 120,283 150,000 
202730,928 119,072 150,000 
2028-2032174,600 575,400 750,000 
2033-2037213,186 536,814 750,000 
2038-2042260,299 489,701 750,000 
2043-2047317,825 432,175 750,000 
2048-2052388,063 361,937 750,000 
2053-2057473,823 276,177 750,000 
2058-2062578,537 171,463 750,000 
2063-2066553,610 46,390 600,000 
Totals3,102,940$ 3,497,060$ 6,600,000$ 
NOTE E – LEASES (CONTINUED) 

The District has recorded right-to-use leased assets for the facility equipment. Right-to-use 
asset activity for the year ended September 30, 2022, was as follows: 



NOTE F – ECONOMIC DEPENDENCY 



The Developers owns a significant portion of land within the District. The District’s activity is 
dependent upon the continued involvement of the Developers, the loss of which could have a 
material adverse effect on the District’s operations. At September 30, 2022, all of the board 
members were affiliated with the Developers. 



BalanceBalanceOctober 1,September 30,2021AdditionsDeletions2022Right-to-use assetsLeased facility3,322,659$ -$ -$ 3,322,659$ 
Less accumulated amortization for:
Leased facility(540,898) (61,817) - (602,715) 
Right-to-use Assets, Net2,781,761$ (61,817)$ -$ 2,719,944$ 
NOTE G – RISK MANAGEMENT 



The government is exposed to various risks of loss related to torts; theft of, damage to and 
destruction of assets, errors and omissions; and natural disasters for which the government 
carries commercial insurance. Settled claims from these risks have not exceeded commercial 
insurance coverage over the past three years. 



NOTE H – RESTATEMENT OF NET POSITION 



Net position for Business-type Activities/Enterprise Fund was restated as of October 1, 2021, to 
properly reflect the implementation of a new accounting standard. 



Business-type Activities/Enterprise Fund 



Net Positon October 1, 2021, as previously reported291,898$ 
Increase in right-to-use assets2,781,761 
Increase in lease payable(3,128,270) 
Net Position October 1, 2021, Restated(54,611)$ 






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 

Central Lake Community Development District 

Lake 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 Central Lake 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 November 30, 2023. 



Report on Internal Control Over Financial Reporting 



In planning and performing our audit, we considered Central Lake 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 Central Lake Community Development District’s internal control. Accordingly, 
we do not express an opinion on the effectiveness of Central Lake 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. 


To the Board of Supervisors 

Central Lake Community Development District 

 

 

Report on Compliance and Other Matters 

 

As part of obtaining reasonable assurance about whether Central Lake 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 

 

November 30, 2023 

 












MANAGEMENT LETTER 



To the Board of Supervisors 

Central Lake Community Development District 

Lake County, Florida 



Report on the Financial Statements 



We have audited the financial statements of the Central Lake Community Development District 
as of and for the year ended September 30, 2022, and have issued our report thereon dated 
November 30, 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 November 30, 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 
Central Lake 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 Central Lake Community Development District did 
not meet any of the conditions described in Section 218.503(1), Florida Statutes. 








To the Board of Supervisors 

Central Lake 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 Central Lake Community Development District. It 
is management’s responsibility to monitor the Central Lake 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 Central Lake Community Development District reported: 

 

1) The total number of district employees compensated in the last pay period of the 
District’s fiscal year: 0 
2) The total number of independent contractors to whom nonemployee compensation was 
paid in the last month of the District’s fiscal year: 8 
3) All compensation earned by or awarded to employees, whether paid or accrued, 
regardless of contingency: $0 
4) All compensation earned by or awarded to nonemployee independent contractors, 
whether paid or accrued, regardless of contingency: $374,547 
5) 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 had no construction projects. 
6) 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 not 
amended. 


 

As required by Section 218.39(3)(c), Florida Statutes, and Section 10.554(1)(i)8, Rules of the 
Auditor General, the Central Lake Community Development District reported: 

 

1) The rate or rates of non-ad valorem special assessments imposed by the District: N/A, 
Enterprise Fund only. 
2) The amount of special assessments collected by or on behalf of the District: Total 
Special Assessments collected was N/A. 
3) The total amount of outstanding bonds issued by the District and the terms of such 
bonds: No outstanding bonds. 


 


To the Board of Supervisors 

Central Lake Community Development District 

 

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. 

 

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 

 

November 30, 2023 


INDEPENDENT ACCOUNTANTS’ REPORT/COMPLIANCE 

WITH SECTION 218.415, FLORIDA STATUTES 







To the Board of Supervisors 

Central Lake Community Development District 

Lake County, Florida 





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



In our opinion, Central Lake 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 



November 30, 2023