MEADOW VIEW AT TWIN CREEKS COMMUNITY DEVELOPMENT DISTRICT

ANNUAL FINANCIAL REPORT

September 30, 2018

Meadow View at Twin Creeks Community Development District ANNUAL FINANCIAL REPORT
September 30, 2018 TABLE OF CONTENTS

Page Number
REPORT OF INDEPENDENT AUDITORS	1-2
MANAGEMENT’S DISCUSSION AND ANALYSIS	3-7
BASIC FINANCIAL STATEMENTS
Government-wide Financial Statements
Statement of Net Position	8
Statement of Activities	9
Fund Financial Statements
Balance Sheet – Governmental Funds	10
Reconciliation of Total Governmental Fund Balances
to Net Position of Governmental Activities	11
Statement of Revenues, Expenditures and Changes in
Fund Balances – Governmental Funds	12
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds
to the Statement of Activities	13
Statement of Revenues, Expenditures and Changes in Fund
Balances – Budget and Actual – General Fund	14
Notes to Financial Statements	15-26
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	27-28
MANAGEMENT LETTER	29-30
INDEPENDENT ACCOUNTANT’S REPORT/COMPLIANCE WITH
SECTION 218.415, FLORIDA STATUTES	31

REPORT OF INDEPENDENT AUDITORS

To the Board of Supervisors
Meadow View at Twin Creeks Community Development District St. Johns County, Florida

Report on the Financial Statements

We have audited the accompanying financial statements of Meadow View at Twin Creeks Community Development District as of and for the year ended September 30, 2018, and the related notes to financial statements, which collectively comprise the District’s basic financial statements as listed in the table of contents.

Management’s Responsibility for the Financial Statements

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

Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit.  We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Accounting Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the  financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
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To the Board of Supervisors
Meadow View at Twin Creeks Community Development District

Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities and each major fund of Meadow View at Twin Creeks Community Development District, as of September 30, 2018, and the respective changes in financial position and the budgetary comparison for the General Fund for the year then ended in conformity with accounting principles generally accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management Discussion and Analysis be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued a report dated June 26, 2019 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 Meadow View at Twin Creeks Community Development District’s internal control over financial reporting and compliance.

Berger, Toombs, Elam, Gaines & Frank Certified Public Accountants PL
Fort Pierce, Florida June 26, 2019

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

OVERVIEW OF THE FINANCIAL STATEMENTS

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

The Government-wide financial statements are the statement of net position and the statement of activities. These statements use accounting methods similar to those used by private-sector companies. Emphasis is placed on the net position of governmental activities  and 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. Net position is reported in two categories; 1) restricted, and 2) unrestricted. 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.

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 land, buildings and improvements, and infrastructure are reported in the statement of net position. All liabilities of the District are included. The statement of activities includes depreciation on all long lived assets of the District, but transactions between the different functions of the District have been eliminated in order to avoid “doubling up” the revenues and expenses. The fund financial statements provide a picture of the major funds of the District. In the case of governmental activities, outlays for long lived assets are reported as expenditures and long-term liabilities, such as special assessment bonds, are not included in the fund financial statements. To provide a link from the fund financial statements to the government- wide financial statements, a reconciliation is provided from the fund financial statements to the government-wide financial statements.

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

Financial Highlights

The following are the highlights of financial activity for the year ended September 30, 2018.

The District’s total assets exceeded total liabilities by $2,071,353 (net position). Unrestricted net position for Governmental Activities was $(2,487,165). Restricted net position was $1,562,548 and net investment in capital assets was $2,995,970.

Governmental activities revenues totaled $5,115,910 while governmental activities expenses totaled $1,544,039.

OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)

Financial Analysis of the District

The following schedule provides a summary of the assets, liabilities and net position of the District.

Net Position	
	Government
 	2018		al Activities
2017

$	41,549	

Current assets	
$	567,060		
Restricted assets	2,298,436	12,560,332	
Capital assets

Total Assets	 	21,621,086 

 	24,486,582 	 	9,641,968 

 	22,243,849 

2,479,367
 	21,265,000 

 	23,744,367 

-
-
 	(1,500,518)

   $ (1,500,518)	

Current liabilities Non-current liabilities	
3,430,229
 	18,985,000 		
Total Liabilities	 	22,415,229 		
Net investment in capital assets Restricted net position Unrestricted

Total Net Position	2,995,970
1,562,548
 	(2,487,165)

   $ 2,071,353 		

The increase in current assets is related to an increase in assessments receivable in the current year.

The decrease in restricted assets and increase in capital assets is related to capital project activity in the current year.

The increase in current liabilities is related to the contracts/retainage payable at year end. The decrease in non-current liabilities is related to principal payments 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.

Financial Activity		
Governmental Activities

 	2018		 	2017		
Program Revenues	
Charges for services	$	4,917,838	$	-	
Operating grants and contributions	178,308	97,353	
General Revenues		
Investment earnings	15,861	24,387	
Miscellaneous  revenues	 		3,903 	 	- 	
Total Revenues	 		5,115,910 	 	121,740 	
Expenses		
General government	137,986	92,744	
Physical environment	37,470	-	
Transportation	552	-	
Interest on long-term debt	 	
Total Expenses	 	
Change in Net Position	1,368,031 
1,544,039 
3,571,871	 	1,540,550 
 	1,633,294 
(1,511,554)	
Net Position - Beginning of Year
Net Position - End of Year	 	
  $		(1,500,518)
2,071,353 	 	11,036 
  $ (1,500,518)	

The increase in charges for services is related to special assessments that were collected in the current year.

The increase in general government and physical environment expenses is related to increased engineering fees and landscape maintenance 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, 2018 and 2017.

Governmental Activities
 	Description		 	2018		 	2017		
Construction in progress	  $	21,621,086 	  $	9,641,968 	

The current year activity was capital additions to construction in progress of $11,979,118.

General Fund Budgetary Highlights

The budget exceeded governmental expenditures primarily because actual repairs and maintenance expenses were less than anticipated.

There were no amendments to the September 30, 2018 budget.

Debt Management

In November 2016, the District issued $21,435,000 Special Assessment Bonds Series 2016A1, Series 2016A2 and Series 2016B. These bonds were issued to finance the acquisition and construction of certain improvements within the District. The balance outstanding at September 30, 2018 was $19,135,000.

Economic Factors and Next Year’s Budget

The District has issued additional debt and anticipates major construction projects for infrastructure maintenance programs will continue in 2019.

Request for Information

The financial report is designed to provide a general overview of Meadow View at Twin Creeks 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 Meadow View at Twin Creeks Community Development District, c/o GMS LLC., 475 West Town Place, Suite 114 World Golf Village, St. Augustine, FL 32092.

	Governmental
Activities	
ASSETS
Current Assets		
Cash	$	75,579	
Accounts receivable	43,743	
Assessments receivable	446,158	
Prepaid expenses	 	1,580 	
Total Current Assets	 	567,060 	
Non-current Assets Restricted assets
Investments	2,298,436
Capital assets, not being depreciated
Construction in progress	 	21,621,086 	
Total Non-current Assets	 	23,919,522 	
Total Assets	 	24,486,582 	

LIABILITIES
Current Liabilities
Accounts payable and accrued expenses	44,076	
Contracts/retainage payable	2,726,323	
Unearned revenues	56,676	
Accrued interest	453,154	
Bonds payable	 	150,000 	
Total Current Liabilities	 	3,430,229 	

Non-current liabilities Bonds payable
Total Liabilities

 	18,985,000 
 	22,415,229 

NET POSITION		
Net investment in capital assets	2,995,970	
Restricted-debt service	1,562,548	
Unrestricted	 	(2,487,165)	
Total Net Position	  $	2,071,353 	

See accompanying notes to financial statements.

Meadow View at Twin Creeks Community Development District STATEMENT OF ACTIVITIES
For the Year Ended September 30, 2018

Program Services
Operating

Net (Expense) Revenues and Changes in Net Position

Functions/Programs	
Expenses		Charges for
Services		Grants and
Contributions		Governmental
Activities	
Governmental Activities
General government	
$	(137,986)		
$	-		
$	139,789		
$	1,803	
Physical environment	(37,470)		-		37,960		490	
Transportation	(552)		-		559		7	
Interest on long-term debt	(1,368,031)		4,917,838		-		3,549,807	
Total Governmental Activities	  $	(1,544,039)		  $	4,917,838 		  $	178,308 		3,552,107	

General revenues:	
Investment earnings	15,861	
Miscellaneous revenues	 	3,903 	
Total General Revenues	 	19,764 	

Change in Net Position	3,571,871

Net Position - October 1, 2017
Net Position - September 30, 2018

(1,500,518)

  $	2,071,353 

Meadow View at Twin Creeks Community Development District BALANCE SHEET
GOVERNMENTAL FUNDS
September 30, 2018

Capital			Capital		Total	
				Debt Service		Debt Service	Projects		P	rojects		Governmental	
ASSETS	 		General			 	2016-A			 	2016-B		 	2016-A			 		2016-B			 	Funds	

$	75,579	
Cash	$	75,579		$	-		$	-		$	-		$	-			
Accounts receivable		43,743		-		-			-			-		43,743	
Assessments receivable		-		164,008		282,150			-			-		446,158	
Prepaid expenses		1,580		-		-			-			-		1,580	
Restricted assets															
Investments, at fair value	 	- 		 	1,796,539 		 	282,889 	 	195 	 	218,813 	2,298,436

$   2,865,496	
Total Assets	  $		120,902 		$ 1,960,547		$	565,039		$	195		$	218,813			

LIABILITIES, DEFERRED INFLOWS OF															
RESOURCES AND FUND BALANCES															
LIABILITIES															
Accounts payable and accrued expenses	$	44,076		$	-		$	-		$	-		$	-		$	44,076	
Contracts/retainage payable		-		-		-			-			2,726,323		2,726,323	
Unearned revenues	 	56,676 		 	- 		 	- 	 	- 	 	- 	56,676

2,827,075	
Total Liabilities	 	100,752 		 	- 		 	- 	 	- 	 	2,726,323 		

DEFERRED INFLOWS OF RESOURCES															
Deferred revenues	 	43,743 		 	- 		 	- 	 	- 	 	- 	 	43,743 	
FUND BALANCES															
Nonspendable-prepaids		1,580		-		-			-			-		1,580	
Restricted:															
Debt service		-		1,960,547		565,039			-			-		2,525,586	
Capital projects		-		-		-			195			-		195	
Unassigned
Total Fund Balances

Total Liabilities, Deferred Inflows of		(25,173)
(23,593)		- 1,960,547		- 565,039			- 195	(2,507,510)

(2,507,510)	(2,532,683)

(5,322)	
Resources and Fund Balances	  $		120,902 		$ 1,960,547		$	565,039		$	195		$	218,813		$ 2,865,496	

See accompanying notes to financial statements.
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Meadow View at Twin Creeks Community Development District RECONCILIATION OF TOTAL GOVERNMENTAL FUND BALANCES TO NET POSITION OF GOVERNMENTAL ACTIVITIES
September 30, 2018

Total Governmental Fund Balances	$	(5,322)	
Amounts reported for governmental activities in the Statement of Net Position	
are different because:			
Capital assets not being depreciated, construction in progress, used in			
governmental activities are not current financial resources and therefore,	
are not reported in the fund level statements.		21,621,086	
Deferred inflows of resources are not current financial resources and			
therefore are not reported at the funds level.		43,743	
Long-term liabilities, including bonds payable are not due and payable			
in the current period and therefore, are not reported at the fund level			
statements.		(19,135,000)	
Accrued interest expense for long-term debt is not a financial use			
and therefore, is not reported in the fund level statements.		(453,154)	

Net Position of Governmental Activities	
  $		
2,071,353 	

See accompanying notes to financial statements.
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Meadow View at Twin Creeks Community Development District STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES –
GOVERNMENTAL FUNDS
For the Year Ended September 30, 2018

Revenues

Capital		Capital		Total Debt Service	Debt Service	Projects	Projects	Governmental
 	General	 	2016A	 	2016B	 	2016A		 	2016B	 	Funds	

Special assessments	$	-		$ 4,353,538		$	564,300		$	-		$	-		$ 4,917,838	
Developer contributions	138,877		-		-		-		-		138,877	
Investment earnings	-		2,154		808		1,245		11,654		15,861	
Miscellaneous revenues	3,903		-		-		-		-		3,903	
Total Revenues	142,780		4,355,692		565,108		1,245		11,654		5,076,479	

Expenditures Current
General government	137,986		-		-		-		-		137,986	
Physical environment	37,470		-		-		-		-		37,470	
Transportation	552		-		-		-		-		552	
Capital outlay	-
Debt service
Principal	-		-

2,300,000		-

-		1,156,767

-		10,822,351

-		11,979,118

2,300,000	
Interest	-		670,668		564,300		-		-		1,234,968	
Total Expenditures	176,008		2,970,668		564,300		1,156,767		10,822,351		15,690,094	

Excess Revenue over/(under) Expenditures	(33,228)		
1,385,024		
808		
(1,155,522)		
(10,810,697)		
(10,613,615)	

Other Financing Sources (Uses)
Transfers in	-		

-		

-		

510		

647		

1,157	
Transfers out	 	- 	 	(510)	 	(647)	 	- 	 	- 	 	(1,157)	
Total Other Financing Sources /(Uses) 	- 	 	(510)	 	(647)	 	510 	 	647 	 	- 	
Net change in fund balances	(33,228)	1,384,514	161	(1,155,012)	(10,810,050)	(10,613,615)	

Fund Balances - October 1, 2017

 	9,635 

 	576,033 

 	564,878 

 	1,155,207 

 	8,302,540 

     10,608,293 

Fund Balances - September 30, 2018	 $	(23,593)

$ 1,960,547

$	565,039	$

195

$ (2,507,510)

$	(5,322)

See accompanying notes to financial statements.
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Meadow View at Twin Creeks Community Development District RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE
STATEMENT OF ACTIVITIES
For the Year Ended September 30, 2018

Net Change in Fund Balances - Total Governmental Funds	$ (10,613,615)	
Amounts reported for governmental activities in the Statement of Activities are different because:			
Governmental funds report capital outlay 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 of capital outlay in the current period.		

11,979,118	
Principal payments on long-term debt are reported as expenditures at the fund level, however, these payments reduce non-current liabilities at the government-wide level.		
2,300,000	
Revenues that do not provide current financial resources are recognized as deferred inflows of resources at the fund level. This is change in unavailable revenues
in the current year.		

39,431	
In the Statement of Activities, interest is accrued on outstanding bonds; whereas in governmental funds, interest expenditures are reported when due. This is the net difference between the prior year and the current year accruals.		

(133,063)	

Change in Net Position of Governmental Activities	
  $		
3,571,871 	

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES – BUDGET AND ACTUAL – GENERAL FUND
For the Year Ended September 30, 2018

Variance With	
Final Budget	
	Original			Final							Positive	
	Budget			Budget				Actual	(Negative)	
Revenues												
Developer Contibutions	$	402,012	$	402,012	$	138,877		$	(263,135)	
Miscellaneous revenues		-			-			3,903			3,903	
Total Revenues	402,012	402,012			142,780			(259,232)	

Expenditures												
Current												
General government	123,875	123,875			137,986			(14,111)	
Physical environment	278,137	278,137			37,470			240,667	
Transportation		-			-			552			(552)	
Total Expenditures	402,012	402,012			176,008			226,004	

Net change in fund balances		
-			
-			
(33,228)			
(33,228)	
Fund Balances - October 1, 2017		-			-			9,635			9,635	

Fund Balances - September 30, 2018	
  $		
- 		
  $		
- 		
   $		
(23,593)		
  $		
(23,593)	

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The financial statements of Meadow View at Twin Creeks 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.

Reporting Entity

The District was established on March 7, 2016 by the St. Johns County, Florida pursuant to Ordinance 2016-11 and the provisions of the Uniform Community Development District Act of 1980, Chapter 190, Florida Statutes, as amended (the "Act"), as a Community Development District. The District was established for the purposes of financing, acquire, construct, operation and maintain infrastructure and community facilities necessary for community development within its jurisdiction. The District is authorized to issue bonds for the purpose, among others, of planning, financing, constructing, operating and/or maintaining infrastructure, earthwork, water, sewer, reuse, and drainage system, roadway improvements, recreation improvements, wetland mitigation, landscape and hardscape improvements, and other infrastructure projects within or without the boundaries of the Meadow View at Twin Creeks Community Development District. The District is governed by a five-member Board of Supervisors, who are elected for terms of two or four years. The District operates within the criteria established by Chapter 190.

As required by GAAP, these financial statements present Meadow View at Twin Creeks 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. 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 as set forth by the Governmental Accounting Standards Board, the District has identified no component units.

Measurement Focus and Basis of Accounting

The basic financial statements of the District are composed of the following:
Government-wide financial statements
Fund financial statements
Notes to financial statements

Government-wide Financial Statements

Government-wide financial statements report all non-fiduciary information about the reporting government as a whole. These statements include separate columns for the governmental and business-type activities of the primary government. The effect of interfund activity has been removed from these statements.

Governmental activities which normally are supported by special assessments and interest, are reported separately from business-type activities. Program revenues  include charges for services, and payments made by parties outside of the reporting government’s citizenry if that money is restricted to a particular program. 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 governmental funds are presented after the government-wide financial statements. These statements display information about major funds individually.

Governmental Funds

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

The District has various policies governing the fund balance classifications.

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

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

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

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

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

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.

Governmental Funds (Continued)
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 were 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.
Basis of Presentation
Governmental Major Funds
General Fund – The General Fund is the District’s primary operating fund. It accounts  for all financial resources of the general government, except those required to be accounted for in another fund.
Debt Service 2016-A – Accounts for debt service requirements to retire the special assessment bonds, used to finance the construction of District infrastructure.
Debt Service 2016-B – Accounts for debt service requirements to retire the special assessment bonds, which were used to finance the construction of District infrastructure.
Capital Projects 2016-A – Accounts for construction of infrastructure improvements within the boundaries of the District.
Capital Projects 2016-B – Accounts for construction of infrastructure improvements within the boundaries of the District.
Non-current Governmental Assets/Liabilities
GASB Statement 34 requires that non-current governmental assets, such as land and buildings, and non-current governmental liabilities, such as general obligation bonds, due to developer and accrued compensated absences be reported in the governmental activities column in the government-wide Statement of Net Position.

Assets, Liabilities, and Net Position or Equity

Cash and Investments

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

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

Direct obligations of the United States Treasury;

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

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

Securities and Exchange Commission, registered money market funds with the highest credit quality rating from a nationally recognized rating agency.

Capital Assets

Capital assets, which include construction in progress, land, buildings and other improvements and infrastructure, are reported in the applicable 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 will be capitalized as projects are constructed.

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

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 funds. As a result,  deficits in the budget columns of the accompanying financial statements may occur.

Deferred Inflows of Resources

Deferred inflows of resources is the change of net position by the government that is applicable to a future reported period at the fund level.

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

1. Explanation of Differences Between the Governmental Fund Balance Sheet and the Government-wide Statement of Net Position

“Total fund balances” of the District’s governmental funds ($(5,322)) differs from “net position” of governmental activities ($2,071,353) 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 below.

Capital related items

When capital assets (construction in progress, 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.
Construction in progress	$	21,621,086

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)

Deferred Inflow of Resources

Deferred inflows of resources applicable to the District’s fund level are not current financial resources and therefore, are not reported as revenues at the fund level, however, at the government-wide level revenues are recognized when earned.

Unavailable revenues	$	43,743

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.
Bonds payable	$ (19,135,000)

Accrued interest
Accrued liabilities in the Statement of Net Position differ from the accrued interest on bonds, which are not reported at the fund level because they do not use current resources.
Accrued interest	$	(453,154)

NOTE	B	–		RECONCILIATION	OF	GOVERNMENT-WIDE	AND	FUND	FINANCIAL STATEMENTS (CONTINUED)
Explanation of Differences Between the Governmental Fund Operating Statements and the Statement of Activities
The “net change in fund balances” for government funds ($(10,613,615)) differs from the “change in net position” for governmental activities ($3,571,871) reported in the Statement  of Activities. The differences arise primarily from the long-term economic focus of the Statement of Activities versus the current financial resources focus of the governmental funds. The effect of the differences is illustrated below.
Capital related items
When capital assets that are to be used in governmental activities are purchased or constructed, the resources expended for those assets are reported as expenditures in governmental funds. However, in the Statement of Activities, the costs of those assets is allocated over their estimated useful lives and reported as depreciation. As a result, fund balances decrease by the amount of financial resources expended, whereas net position increases by the capital assets purchased.

Capital outlay	$	11,979,118

Long-term debt transactions
Principal payments on long-term debt are reported as expenditures in the fund level but decrease liabilities at the government-wide level.
Principal payments on long-term debt	$	2,300,000

Some expenses reported in the Statement of Activities do not require the use of current financial resources, and therefore, are not reported as expenditures in governmental funds.
Net increase in accrued interest payable	$	(133,063)
Deferred Inflows of Resources

Deferred inflows of resources do not provide current resources and, therefore, are not reported at the fund level, however, they are recognized when earned at the government- wide level.

Unavailable revenues	$	39,431

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. The District does, however, follow the provisions of Chapter 280, Florida Statutes regarding deposits and investments. As of September 30, 2018, the District's bank balance and the carrying value were $75,579. 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, 2018, the District had the following investments and maturities:

Investment		Maturity		Fair Value	
US Bank Mmkt Managed		N/A		$	2,298,436	

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 investments listed above is a level 1 assets.

Investments

The District’s investment policy allows management to invest funds in investments permitted under Section 218.415, Florida Statutes.

NOTE C – CASH AND INVESTMENTS (CONTINUED)

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 in any one fund and the investment in US Bank MMKT Managed represents 100% of the District's investments.

The types of investments and their level of risk exposure as of September 30, 2017 were typical of these items throughout the fiscal year. The District considers any decline in fair value for investments to be temporary.

NOTE D – CAPITAL ASSETS

Capital Asset activity for the year ended September 30, 2018 was as follows:

	Balance			Balance	
	 	10/1/2017		 	Additions		   Deletions 	 	09/30/18		
Capital assets, not being depreciated:	
Construction in progress	  $	9,641,968 	  $ 11,979,118 	  $	- 	  $ 21,621,086 	

NOTE E – LONG-TERM DEBT
The following is a summary of debt activity for the District for the year ended September 30, 2018:

	Balance			Balance	Within	
	 	10/1/2017		 	Additions		 	Deletions		 	9/30/2018		 	One Year		
Bonds Payable						
Series 2016	  $ 21,435,000 	  $	- 	  $	(2,300,000)	  $ 19,135,000 	  $	150,000 	

District debt is comprised of the following at September 30, 2018:

Special Assessment Bonds

$21,435,000 Series 2016 Special Assessment Bonds (A1, A2 and B) due in annual installments through May 1, 2047 with
an interest rate of 4.5% to 6.0%.	$	19,135,000

NOTE E – LONG-TERM DEBT (CONTINUED)

The annual requirements to amortize the principal and interest of bonded debt outstanding as of September 30, 2018 are as follows:

Year Ending							
September 30,

2019	
$	Principal
150,000	
$	Interest
1,087,570	
$	Total
1,237,570	
2020		155,000		1,080,235		1,235,235	
2021		165,000		1,072,675		1,237,675	
2022		170,000		1,064,600		1,234,600	
2023		180,000		1,056,300		1,236,300	
2024-2028		10,460,000		4,292,915		14,752,915	
2029-2033		1,365,000		2,017,170		3,382,170	
2034-2038		1,770,000		1,617,410		3,387,410	
2039-2043		2,325,000		1,076,265		3,401,265	
2044-2047

Totals	

$	 	2,395,000 

19,135,000	

$	344,780

14,709,920	

$	2,739,780

33,844,920	
Summary of Significant Bonds Resolution Terms and Covenants

Special Assessment Bonds
The District levies special assessments pursuant to Section 190.022, Florida Statutes and the assessment rolls are approved by resolutions of the District Board. The collections are to be strictly accounted for and applied to the debt service of the bond series for which they were levied. The District covenants to levy special assessments in annual amounts adequate to provide for payment of principal and interest on the bonds. Payment of principal and interest is dependent on the money available in the debt service fund and the District’s ability to collect special assessments levied.

The Bonds are subject to redemption at the option of the District and are also subject to extraordinary mandatory redemption prior to maturity as outlined in the Trust Indenture.

Reserve	Reserve	
 	Balance		 Requirement 
Series 2016	 $	529,884	 $	484,032 	

NOTE F – DEVELOPER FUNDING AGREEMENT
The Developer has agreed to enter into a funding agreement with the District for the District’s general fund budget. The Developer agrees to make available to the District the monies necessary for the operations of the District as called for in the approved budgets for 2016 through 2018. Budgets shall be amended as needed. Payments are made by the Developer in lieu of taxes, fees or assessments that might otherwise be imposed or levied by the District.

NOTE G – MANAGEMENT AGREEMENTS
The District has contracted with a management company to perform management consulting services, which include financial and accounting services. Certain employees of the management company also serve as officers of the District. Under the agreement, the District compensates the management company for management, accounting, financial reporting, computer and other administrative costs.
NOTE H – 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. It should be noted that any suit or action brought or maintained against the district for damages arising out of tort, including, without limitation, any claim arising upon account of an act causing an injury or loss of property, personal injury, or death, shall be subject to the limitations provided in Section 768.28, Florida Statutes.

NOTE I – SUBSEQUENT EVENTS

Subsequent to year end, the District paid off the Series 2016A-2 Bonds by making bond prepayments of $1,475,000, $800,000, and $915,000 in November 2018, February 2019 and May 2019, respectively.

The District made bond prepayments on the Series 2016B Bonds in December 2018 and March 2019 of $3,400,000 and $1,425,000, respectively.

In November 2018, the District issued Special Assessment Revenue Bonds, Series 2018A-1 and Series 2018A-2 in the amount of $8,955,000 and $7,535,000 respectively. Proceeds from the Series 2018A Bonds will fund the acquisition and construction of improvements comprising the Series 2018A Project.

In February 2019, the District issued Special Assessment Revenue Bonds, Series 2019A-1 and Series 2019A-2 in the amount of $3,660,000 and $4,450,000, respectively. Proceeds from the Series 2019A Bonds will fund the acquisition and construction of improvements comprising the Series 2019A Project.

INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

To the Board of Supervisors
Meadow View at Twin Creeks 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 of Meadow View at Twin Creeks Community Development District, as of and for the year ended September 30, 2018, and the related notes to the financial statements, and have issued our report thereon dated June 26, 2019.

Internal Control Over Financial Reporting

In planning and performing our audit, we considered Meadow View at Twin Creeks Community Development District's internal control over financial reporting to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of Meadow View at Twin Creeks Community Development District’s internal control. Accordingly, we do not express an opinion on the effectiveness of Meadow View at Twin Creeks Community Development District's internal control over financial reporting.

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

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To The Board of Supervisors
Meadow View at Twin Creeks Community Development District

Compliance and Other Matters

As part of obtaining reasonable assurance about whether Meadow View at Twin Creeks 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
Fort Pierce, Florida June 26, 2019

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MANAGEMENT LETTER

To the Board of Supervisors
Meadow View at Twin Creeks Community Development District St. Johns County, Florida
Report on the Financial Statements

We have audited the financial statements of the Meadow View at Twin Creeks Community Development District as of and for the year ended September 30, 2018, and have issued our report thereon dated June 26, 2019.

Auditor’s Responsibility

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

Other Reporting Requirements

We have issued our Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards and our Independent Auditor’s Report on an examination conducted in accordance with AICPA Professionals Standards, AT-C Section 315, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports, which are dated June 26, 2019, 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 audit.

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 Meadow View at Twin Creeks 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 Meadow View at Twin Creeks 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
Meadow View at Twin Creeks Community Development District

Pursuant to Sections 10.554(1)(i)5.c. and 10.556(8), Rules of the Auditor General, we applied financial condition assessment procedures for Meadow View at Twin Creeks Community Development District. It is management’s responsibility to monitor the Meadow View at Twin Creeks 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, 2018.

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

Additional Matters

Section 10.554(1)(i)3., Rules of the Auditor General, requires us to communicate noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but warrants the attention of those charged with governance. In connection with our audit, we 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 June 26, 2019

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INDEPENDENT ACCOUNTANT’S REPORT/COMPLIANCE WITH SECTION 218.415, FLORIDA STATUTES

To the Board of Supervisors
Meadow View at Twin Creeks Community Development District St. Johns County, Florida

We have examined Meadow View at Twin Creeks Community Development District's compliance with Section 218.415, Florida Statutes during the year ended September 30, 2018. Management is responsible for Meadow View at Twin Creeks Community Development District’s compliance with those requirements. Our responsibility is to express an opinion on Meadow View at Twin Creeks 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 Meadow View at Twin Creeks 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 Meadow View at Twin Creeks Community Development District’s compliance with the specified requirements.

In our opinion, Meadow View at Twin Creeks Community Development District complied, in all material respects, with the aforementioned requirements during the year ended September 30, 2018.

Berger, Toombs, Elam, Gaines & Frank Certified Public Accountants PL
Fort Pierce, Florida June 26, 2019

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