Meadow View at Twin Creeks Community Development District ANNUAL FINANCIAL REPORT September 30, 2022 Meadow View at Twin Creeks 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 4-9 BASIC FINANCIAL STATEMENTS: Government-wide Financial Statements: Statement of Net Position 10 Statement of Activities 11 Fund Financial Statements: Balance Sheet – Governmental Funds 12 Reconciliation of Total Governmental Fund Balances to Net Position of Governmental Activities 13 Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds 14 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 15 Statement of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual – General Fund 16 Notes to Financial Statements 17-32 INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 33-34 MANAGEMENT LETTER 35-38 INDEPENDENT ACCOUNTANTS’ REPORT/COMPLIANCE WITH SECTION 218.415, FLORIDA STATUTES 39 REPORT OF INDEPENDENT AUDITORS To the Board of Supervisors Meadow View at Twin Creeks Community Development District St. Johns County, Florida Report on Audit of the Financial Statements Opinion We have audited the financial statements of the governmental activities and each major fund of Meadow View at Twin Creeks Community Development District (the “District”), as of and for the year ended September 30, 2022, and the related notes to financial statements, which collectively comprise the District’s basic financial statements as listed in the table of contents. In our opinion, the accompanying financial statements present fairly, in all material respects, the respective financial position of the governmental activities and each major fund of Meadow View at Twin Creeks Community Development District as of September 30, 2022, and the respective changes in financial position and the budgetary comparison for the General Fund for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinion We conducted our audits in accordance with auditing standards generally accepted in the United States of America (GAAS), and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the District and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. To the Board of Supervisors Meadow View at Twin Creeks 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 Meadow View at Twin Creeks 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 October 24, 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 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 October 24, 2023 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 the private-sector. Emphasis is placed on the net position of governmental activities and the change in net position. Governmental activities are primarily supported by special assessments and developer contributions. 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 are reported in three categories; 1) net investment in capital assets, 2) restricted and 3) 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 funded by the District include general government, physical environment, culture and recreation, and interest on long-term debt. 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. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near- term inflows and outflows of spendable resources, as well as balances of spendable resources available at the end of the year. Such information may be useful in evaluating a government's near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the District's near-term financing decisions. Both the governmental fund balance sheet and the statement of revenues, expenditures, and changes in fund balances provide reconciliations to facilitate this comparison between governmental funds and governmental activities. Notes to financial statements provide additional detail concerning the financial activities and financial balances of the District. Additional information about the accounting practices of the District, investments of the District, capital assets, and long-term debt are some of the items included in the notes to financial statements. Financial Highlights: The following are the highlights of financial activity for the year ended September 30, 2022. • The District’s total assets exceeded total liabilities by $28,884,701 (net position). Unrestricted net position was $425,745. Restricted net position-debt service was $241,946. Net investment in capital assets was $28,217,010. • Governmental activities revenues totaled $10,852,546 while governmental activities expenses and conveyances totaled $7,310,242. OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED) Financial Analysis of the District The following schedule provides a summary of the assets, liabilities and net position of the District. The decrease in current assets is related to the decreases in special assessments receivable and due from developer in the current year. 20222021Current assets648,007$ 957,873$ Restricted assets3,409,936 6,035,089 Capital assets, net of depreciation59,670,565 55,735,549 Total Assets63,728,508 62,728,511 Current liabilities2,857,984 1,444,603 Non-current liabilities31,985,823 35,941,511 Total Liabilities34,843,807 37,386,114 Net investment in capital assets28,217,010 19,319,281 Net position-restricted241,946 5,599,249 Net position-unrestricted425,745 423,867 Total Net Position28,884,701$ 25,342,397$ Governmental ActivitiesNet Position The decrease in restricted assets is related to the increase in capital assets in the current year. The increase in current liabilities is related to the increase in contracts/retainage payable in the current year. The decrease in non-current liabilities is related to the debt service payments that were made 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. The decrease in charges for services is related to prepayments in the prior year. 20222021Program Revenues Charges for services9,082,611$ 14,539,820$ Operating grants and contributions748,777 721,927 Capital grants and contributions979,704 2,435,777 General Revenues Investments earnings3,183 213 Other revenues38,271 30,167 Total Revenues10,852,546 17,727,904 Expenses General government183,097 161,805 Physical environment841,052 678,314 Culture/recreation515,274 479,459 Interest and other charges2,108,841 2,021,456 Total Expenses3,648,264 3,341,034 Conveyances to other governments3,661,978 - Change in Net Position3,542,304 14,386,870 Net Position - Beginning of Year25,342,397 10,955,527 Net Position - End of year28,884,701$ 25,342,397$ Governmental ActivitiesChange in Net Position The decrease in capital contributions is related to the issuance of long-term debt in the current year. The increase in physical environment is related to the increase in landscape maintenance and irrigation repairs in the current year. The increase in interest and other charges is related to issuance costs in the current year. OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED) Capital Assets Activity The following schedule provides a summary of the District’s capital assets as of September 30, 2022 and 2021. During the year, depreciation was $13,648, additions of $7,610,642 were added to construction in progress and $3,661,978 was conveyed to other governments. Description20222021Construction in progress59,575,034$ 55,626,370$ Equipment136,475 136,475 Accumulated depreciation(40,944) (27,296) Total Capital Assets (Net)59,670,565$ 55,735,549$ Governmental Activities General Fund Budgetary Highlights The budget exceeded actual expenditures primarily because contracted security and performance bond cost expenditures were less than anticipated. The September 30, 2022 budget was amended for engineering, facility maintenance, landscape and irrigation repair expenditures that were more than originally anticipated. Debt Management Governmental Activities debt includes the following: • In October 2016, the District issued $12,030,000 Series 2016 Special Assessment Bonds (A-1, A-2, and B). The bonds were issued to finance the acquisition and construction of certain improvements for the benefit of the District. In a prior year, the Series 2016A-2 Bonds were paid off. During the current year, the Series 2016B Bonds were paid off. The balance outstanding for the Series 2016A-1 Bonds at September 30, 2022 was $6,090,000. • In October 2018, the District issued $16,490,000 Series 2018A Special Assessment Bonds (A-1 and A-2). The bonds were issued to finance the acquisition and construction of certain improvements for the benefit of the District. During the current year, the Series 2018A-2 Bonds were paid off. The balance outstanding for the Series 2018A-1 Bonds at September 30, 2022 was $8,550,000. OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED) Debt Management (Continued) • In February 2019, the District issued $8,110,000 Series 2019A Special Assessment Bonds (A-1 and A-2). The bonds were issued to finance the acquisition and construction of certain improvements for the benefit of the District. During the current year, the Series 2019A-2 Bonds were paid off. The balance outstanding for the Series 2019A-1 Bonds September 30, 2022 was $3,505,000. • In May 2020, the District issued $8,5775,000 Series 2020A Special Assessment Bonds (A-1, A-2, and A-3). The bonds were issued to finance the acquisition and construction of certain improvements for the benefit of the District. During the current year the Series 2020A-2 and A-3 Bonds were paid off. The balance outstanding for the Series 2020A-1 Bonds September 30, 2022 was $1,640,000. • In November 2021, the District issued $12,755,000 Series 2021 Special Assessment Bonds (Phase 3B and Phase 4). The bonds were issued to finance the acquisition and construction of certain improvements for the benefit of the District. The balance outstanding at September 30, 2022 was $12,755,000. Economic Factors and Next Year’s Budget Meadow View at Twin Creeks Community Development District does not expect any economic factors to have any significant effect on the financial position or results of operations of the District in fiscal year 2023. Request for Information The financial report is designed to provide a general overview of Meadow View at Twin Creeks Community Development District’s finances for all those with an interest. Questions concerning any of the information provided in this report or requests for additional information should be addressed to the Meadow View at Twin Creeks Community Development District, Governmental Management Services, 475 West Town Place, Suite 114, St. Augustine, Florida 32092. Meadow View at Twin Creeks Community Development DistrictSTATEMENT OF NET POSITIONSeptember 30, 2022 GovernmentalActivities ASSETSCurrent AssetsCash and cash equivalents$ 232,405Investments82,944Assessments receivable48,122Due from other399Due from developer227,852Deposits3,360Prepaid expenses52,925Total Current Assets648,007Non-Current AssetsRestricted assetsInvestments3,409,936Capital assets, not being depreciatedConstruction in progress59,575,034Capital assets, being depreciatedEquipment136,475Less: accumulated depreciation(40,944) Total Non-Current Assets63,080,501Total Assets63,728,508LIABILITIESCurrent LiabilitiesAccounts payable and accrued expenses98,433Contracts/retainage payable1,452,234Due to developer3,502Unearned revenues45,615Accrued interest629,132Financed purchase payable9,068Bonds payable620,000Total Current Liabilities2,857,984Non-Current LiabilitiesBonds payable, net31,985,823Total Liabilities34,843,807NET POSITIONNet investment in capital assets28,217,010Restricted for debt service241,946Unrestricted425,745Total Net Position$ 28,884,701See accompanying notes. - 10 - Meadow View at Twin Creeks Community Development DistrictSTATEMENT OF ACTIVITIESFor the Year Ended September 30, 2022Functions/ProgramsExpensesCharges forServicesOperating Grants andContributionsCapital Grants andContributionsProgram RevenuesNet (Expense) Revenues andChanges inNet PositionGovernmentalActivities Primary government Governmental ActivitiesGeneral governmentPhysical environmentCulture/recreation Interest and other charges Total Governmental Activities(183,097)$ 92,135$ (841,052)416,350(515,274)259,287(2,108,841)8,314,839$ (3,648,264)9,082,611$ $ $ 89,855406,050252,872- 748,777$ $ - 979,704-- 979,704$ (1,107) 961,052(3,115) 6,205,9987,162,828General Revenues Investment earnings Miscellaneous revenuesTotal General Revenues3,18338,27141,454Conveyances to other governments(3,661,978) Change in Net Position3,542,304Net Position - October 1, 202125,342,397Net Position - September 30, 2022$ 28,884,701 See accompanying notes. - 11 - See accompanying notes. MeadowViewatTwinCreeks CommunityDevelopmentDistrictBALANCE SHEET- GOVERNMENTALFUNDSSeptember30,2022 TotalDebtCapitalGovernmentalGeneralServiceProjectsFunds ASSETS Cash and cash equivalents$ 232,405$ -$ -$ 232,405Investments82,944--82,944Assessmentsreceivable33,89314,229-48,122Due fromotherfunds--60,48360,483Due fromother399--399Due fromdeveloper227,852--227,852Deposits3,360--3,360Prepaid expenses52,925--52,925Restricted assets Investments,atfairvalue-1,636,9701,772,9663,409,936TotalAssets$ 633,778$ 1,651,199$ 1,833,449$ 4,118,426 LIABILITIES,DEFERREDINFLOWSOFRESOURCESANDFUNDBALANCES Liabilities: Accountspayable and accrued expenses$ 98,433$ -$ -$ 98,433Contracts/retainage payable--1,452,2341,452,234Due to otherfunds60,483--60,483Due to developer3,502--3,502Unearned revenues45,615--45,615 TotalLiabilities208,033-1,452,2341,660,267 DEFERRREDINFLOWSOFRESOURCESUnavailable revenues55,283--55,283 Fund Balances: Nonspendable Depositsand prepaid expenses56,285--56,285 RestrictedDebtservice-1,651,199-1,651,199Capitalprojects--381,215381,215 Unassigned314,177--314,177 TotalFund Balances370,4621,651,199381,2152,402,876TotalLiabilities,Deferred InflowsofResourcesand Fund Balances$ 633,778$ 1,651,199$ 1,833,449$ 4,118,426 - 12 - Meadow View at Twin Creeks Community Development DistrictRECONCILIATION OF TOTAL GOVERNMENTAL FUND BALANCESTO NET POSITION OF GOVERNMENTAL ACTIVITIESSeptember 30, 2022 Total Governmental Fund Balances$ 2,402,876Amounts reported for governmental activities in the Statement of Net Positionare different because: Capital assets, construction in progress, $59,575,034, and equipment, $136,475, net of accumulated depreciation, $(40,944), used in governmental activities are not current financial resources and, therefore, are not reported at the fund level.59,670,565Long-term liabilities, including bonds payable, $(32,540,000), net of bond premium, net, $(107,460), and bond discount, net, $41,637, and financed purchase payable, $(9,068), are not due and payable in the current period and; therefore, are notreported at the fund level.(32,614,891) Accrued interest expense for long-term debt is not a current financial use and; therefore, is not reported at the fund level.(629,132) Unavailable revenues are recognized as deferred inflows of resources at the fundlevel, however revenue is recognized when earned at the government-wide level.55,283Net Position of Governmental Activities$ 28,884,701 See accompanying notes. - 13 - See accompanying notes. MeadowViewatTwinCreeks Community DevelopmentDistrictSTATEMENTOFREVENUES,EXPENDITURES ANDCHANGESIN FUND BALANCES–GOVERNMENTALFUNDSForthe YearEndedSeptember30,2022 TotalDebtCapitalGovernmentalGeneralServiceProjectsFundsRevenuesSpecialassessments712,489$ $ 8,314,839-$ 9,027,328$ Developercontributions748,777-979,7041,728,481Investmentearnings301,2761,8773,183Miscellaneousrevenues38,271--38,271TotalRevenues1,499,5678,316,115981,58110,797,263ExpendituresCurrentGeneralgovernment183,097--183,097Physicalenvironment827,404--827,404Culture/recreation515,274--515,274Capitaloutlay--7,610,6427,610,642DebtservicePrincipal25,70912,040,0004,580,33916,646,048Interest1,9821,745,901-1,747,883Other--467,123467,123TotalExpenditures1,553,46613,785,90112,658,10427,997,471Excessofrevenuesoverexpenditures(53,899)(5,469,786)(11,676,523)(17,200,208) Otherfinancing sources/(uses) Transfersin4942,826-3,320Transfersout--(3,320)(3,320) Issuance oflong-termdebt-674,86312,080,13712,755,000Bond discount--(42,927)(42,927) Bond premium-110,790-110,790TotalOtherFinancing Sources/(Uses)494788,47912,033,89012,822,863Netchange in fund balances(53,405)(4,681,307)357,367(4,377,345) Fund Balances-October1,2021423,8676,332,50623,8486,780,221Fund Balances-September30,2022370,462$ $ 1,651,199381,215$ 2,402,876$ -14 - Meadow View at Twin Creeks Community Development DistrictRECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURESAND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDSTO THE STATEMENT OF ACTIVITIESFor the Year Ended September 30, 2022 Net Change in Fund Balances - Total Governmental Funds$ (4,377,345) Amounts reported for governmental activities in the Statement of Activities aredifferent because: current period. exceeded by depreciation, $(13,648), and conveyances, $(3,661,978), in theGovernmental funds report capital outlays as expenditures. However, in theStatement of Activities, the cost of those assets are allocated over their estimateduseful lives as depreciation. This is the amount that capital outlay, $7,610,642,3,935,016The isssuance of debt, bonds payable,$(12,755,000), net of bond premium, $(110,790), and bond discount, $42,927, are recognized as other financing sources at the fund level, however, they increase liabilities at the government-wide level. (12,822,863) the repayments reduce long-term liabilities in the Statement of Net Position. Repayments of bond principal are expenditures at the fund level, but16,646,048Unavailable revenues are recognized as deferred inflows of resources at the fundlevel, however, revenues are recognized when earned at the government-widelevel. This is the current year change.55,283Bond premium and bond discount are amortized over the life of the bonds asinterest. This is the current year amortization.2,040the change in accrued interest in the current period. in the fund level interest expenditures are reported when due. This isIn the Statement of Activities, interest is accrued on outstanding bonds; whereas104,125Change in Net Position of Governmental Activites$ 3,542,304 See accompanying notes. - 15 - Meadow View at Twin Creeks Community Development DistrictSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES INFUND BALANCES – BUDGET AND ACTUAL – GENERAL FUNDFor the Year Ended September 30, 2022 RevenuesSpecial assessmentsDeveloper contributionsInvestment earningsMiscellaneous revenues Total Revenues Expenditures CurrentGeneral governmentPhysical environmentCulture/recreation Debt ServicePrincipalInterest Total Expenditures Excess of revenues over expenditures Other Financing Sources/(Uses) Transfer in Net change in fund balances Fund Balances - October 1, 2021 Fund Balances - September 30, 2022 Original Budget $ 694,613857,161- 10,000 1,561,7741,554,852181,084185,513740,656830,060640,034559,468-- -- 1,561,774- - - - $ - FinalBudget $ 712,490 804,06010,29028,012 1,575,041(20,189) 494 (19,695) 19,695 $ - ActualVariance withFinal BudgetPositive(Negative) $ 712,489748,7773038,2711,499,567$ (1) (55,283) (10,260) 10,259(55,285) 183,097827,404515,2742,4162,65644,19425,7091,9821,553,466(25,709) (1,982) 21,575(53,899)(33,710) 494- (53,405)(33,710) 423,867404,172$ 370,462370,462$ See accompanying notes. - 16 - NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements of the District have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The District's more significant accounting policies are described below. 1. Reporting Entity The District was established on March 7, 2016, by Ordinance 2016-11 of St. Johns County, Florida, Board of County Commissioners, pursuant to the Uniform Community Development District Act of 1980, otherwise known as Chapter 190, Florida Statutes. The District was established for the purposes of financing and managing the acquisition, construction, maintenance and operation of the infrastructure necessary for community development within its jurisdiction. The District is authorized to issue bonds for the purpose, among others, of financing, funding, planning, establishing, acquiring, constructing or re- constructing, enlarging or extending, equipping, operating and maintaining water management, bridges or culverts, district roads, landscaping, street lights and other basic 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 four year terms. The District operates within the criteria established by Chapter 190, Florida Statutes. As required by GAAP, these financial statements present the Meadow View at Twin Creeks Community Development District (the primary government) as a local unit of special-purpose government. The reporting entity for the District includes all functions of government in which the District’s Board exercises oversight responsibility including, but not limited to, financial interdependency, selection of governing authority, designation of management, significant ability to influence operations and accountability for fiscal matters. To be includable within the District’s financial statements, the component unit must be financially accountable or the exclusion of the nature and significance of their relationship with the District would cause the financial statements to be misleading or incomplete. Blended component units must be financially accountable to the District; there must be a financial burden/benefit relationship and the entity, although legally separate, must operate like a fund of the District. Based upon the application of the above-mentioned criteria as set forth in Governmental Accounting Standards Board, the District has identified no component units. NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 2. 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 a. Government-wide Financial Statements The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Government-wide financial statements report all non-fiduciary information about the reporting government as a whole and its blended component unit. These statements include all the governmental activities of the primary government and its component unit. The effect of interfund activity has been removed from these statements. Governmental activities are supported by special assessments, developer contributions, and interest. 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. b. 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. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. Fund financial statements for the primary government’s governmental funds are presented after the government-wide financial statements. These statements display information about major funds individually. NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 2. Measurement Focus and Basis of Accounting (Continued) b. Fund Financial Statements (Continued) Governmental Funds The District implemented the 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 classifications include non-spendable, restricted, committed, assigned and unassigned. The District has various policies governing the fund balance classifications. Non-spendable 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. Committed Fund Balance – This classification consists of amounts that can only be used for specific purposes pursuant to the constraints imposed by a formal action of the government’s highest level of decision making authority. 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 – When restricted, committed, assigned, and unassigned fund balances are combined in a fund, qualified expenditures are paid first from restricted or committed fund balance, as appropriate, then assigned and finally unassigned fund balances. NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 2. Measurement Focus and Basis of Accounting (Continued) b. Fund Financial Statements (Continued) Governmental Funds (Continued) Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are considered to be available when they are collected within the current period or soon thereafter to pay liabilities of the current period. For this purpose, the District considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. Interest associated with the current fiscal period is considered to be an accrual item and so has been recognized as revenue of the current fiscal period. Under the current financial resources measurement focus, only current assets and current liabilities are generally included on the balance sheet. The reported fund balance is considered to be a measure of “available spendable resources”. Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they are said to present a summary of sources and uses of “available spendable resources” during a period. Because of their spending measurement focus, expenditure recognition for governmental fund types excludes amounts represented by non-current liabilities. Since they do not affect net current assets, such long-term amounts are not recognized as governmental fund type expenditures or fund liabilities. Amounts expended to acquire capital assets are recorded as expenditures in the year that resources are expended, rather than as fund assets. In addition, the proceeds of long-term debt are recorded as an other financing source rather than as a fund liability. Debt service expenditures are recorded only when payment is due. NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 3. Basis of Presentation a. 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 Fund – The Debt Service Fund is used to account for the accumulation of resources for the annual payment of principal and interest on long-term debt. Capital Projects Fund – Accounts for construction of infrastructure improvements within the District. b. Non-current Governmental Assets/Liabilities GASB Statement 34 requires that non-current governmental assets, such as infrastructure and improvements, and non-current governmental liabilities, such as general obligation bonds, be reported in the governmental activities column in the government-wide Statement of Net Position. 4. Assets, Liabilities, Deferred Inflows of Resources, 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. NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 4. Assets, Liabilities, Deferred Inflows of Resources, and Net Position or Equity (Continued) a. Cash and Investments (Continued) The District is authorized to invest in those financial instruments as established by Section 218.415, Florida Statutes. The authorized investments consist of: 1. Direct obligations of the United States Treasury; 2. The Local Government Surplus Funds Trust or any intergovernmental investment pool authorized pursuant to the Florida Interlocal Cooperative Act of 1969; 3. Interest bearing time deposits or savings accounts in authorized qualified public depositories; 4. Securities and Exchange Commission, registered money market funds with the highest credit quality rating from a nationally recognized rating agency. Cash equivalents include time deposits and certificates of deposit with original maturities of three months or less and held in a qualified public depository as defined by Section 280.02, Florida Statutes. b. Restricted Assets Certain assets of the District and a corresponding liability or portion of net position is classified as restricted on the statement of net position because their use is limited either by law through constitutional provisions or enabling legislation, or by restrictions imposed externally by creditors. In a fund with both restricted and unrestricted assets, qualified expenses are considered to be paid first from restricted net position and then from unrestricted net position. c. Capital Assets Capital assets, which include construction in progress and equipment, are reported in the governmental activities column in the government-wide statements. The District defines capital assets as assets with an initial, individual cost of $5,000 or more and an estimated useful life in excess of one year. The valuation basis for all assets is historical cost. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend its useful life are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Depreciation of capital assets is computed and recorded by utilizing the straight-line method. Estimated useful lives of the various classes of depreciable capital assets are as follows: Equipment 10 years NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 4. Assets, Liabilities, Deferred Inflows of Resources, and Net Position or Equity (Continued) d. Budgets Budgets are prepared and adopted after public hearings for the governmental funds, pursuant to Chapter 190, Florida Statutes. The District utilizes the same basis of accounting for budgets as it does for revenues and expenditures in its various funds. The legal level of budgetary control is at the fund level. All budgeted appropriations lapse at year end. Formal budgets are adopted for the general and debt service funds. e. Bond Premium/Discounts Bond premium/discounts are amortized over the life of the bonds. f. Deferred Inflows of Resources Deferred inflows of resources represent an acquisition of net position that applies to a future reporting period(s) and so will not be recognized as an inflow of resources (revenue) until then. The District only has one time that qualifies for reporting in the category. Unavailable revenues are reported only in the governmental funds balance sheet. This amount is deferred and recognized as an inflow of resources in the period that amounts become available. 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, $2,402,876, differs from “net position” of governmental activities, $28,884,701, 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 (infrastructure and recreational facilities 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 $ 59,575,034 Equipment 136,475 Accumulated depreciation (40,944) Total $ 59,670,565 NOTE B – RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS (CONTINUED) 1. Explanation of Differences Between the Governmental Fund Balance Sheet and the Government-wide Statement of Net Position (Continued) Long-term debt transactions Long-term liabilities applicable to the District’s governmental activities are not due and payable in the current period and accordingly are not reported as fund liabilities. All liabilities (both current and long-term) are reported in the Statement of Net Position. Balances at September 30, 2022 were: Bonds payable $ (32,540,000) Bond premium, net (107,460) Bond discount, net 41,637 Financed purchase (9,068) Total $ (32,614,891) Accrued interest Accrued liabilities in the Statement of Net Position differ from the amount reported in governmental funds due to the accrued interest on bonds. Accrued interest $ (629,132) Deferred Inflows of Resources Unavailable revenues are recognized as deferred inflows of resources at the fund level, however, revenue is recognized when earned at the government -wide level. Unavailable revenues $ 55,283 2. Explanation of Differences Between the Governmental Fund Operating Statements and the Statement of Activities The “net change in fund balances” for government funds, $(4,377,345), differs from the “change in net position” for governmental activities, $3,542,304, 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. NOTE B – RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS (CONTINUED) Capital related items When capital assets that are to be used in governmental activities are purchased or constructed, the resources expended for those assets are reported as expenditures in governmental funds. However, in the Statement of Activities, the costs of those assets are allocated over their estimated useful lives as depreciation. The following is the amount that capital outlay exceeded depreciation in the current year. Capital outlay $ 7,610,642 Depreciation (13,648) Conveyances (3,661,978) Total $ 3,935,016 Long-term debt transactions Repayments of bond principal are expenditures at the fund level but reduce liabilities in the Statement of Net Position. The issuance of new debt is an other financing source at the fund level but it increases long-term liabilities in the Statement of Net Position. Principal payments $ 16,646,048 Issuance of long-term debt $ (12,822,863) Some expenses reported in the Statement of Activities do not require the use of current financial resources, therefore, are not reported as expenditures in governmental funds. Change in accrued interest payable $ 104,125 Bond premium/discount amortization $ 2,040 Deferred inflows of resources Unavailable revenues are recognized as deferred inflows of resources at the fund level. This is the current year change in unavailable revenues. Unavailable revenues $ 55,283 NOTE C – CASH AND INVESTMENTS All deposits are held in qualified public depositories and are included on the accompanying balance sheet and statement of net position 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. The investment policy of the District follows the provisions of Chapter 280, Florida Statutes regarding deposits and investments. As of September 30, 2022, the District’s bank balance was $353,083 and the carrying value was $232,405. The District controls its exposure to custodial credit risk because it maintains all deposits in a qualified public depository in accordance with the provisions of Chapter 280, Florida Statutes, which means that all deposits are fully insured by Federal Depositors Insurance or collateralized under Chapter 280, Florida Statutes. Investments The District’s investment policy allows management to invest funds in investments permitted under Section 218.415, Florida Statutes. As of September 30, 2022, the District had the following investments and maturities: The District categorizes its fair value measurements within the fair value hierarchy recently established by generally accepted accounting principles. The fair value is the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. The District uses a market approach in measuring fair value that uses prices and other relevant information generated by market transactions involving identical or similar assets, liabilities, or groups of assets and liabilities. Assets or liabilities are classified into one of three levels. Level 1 is the most reliable and is based on quoted price for identical assets, or liabilities, in an active market. Level 2 uses significant other observable inputs when obtaining quoted prices for identical or similar assets, or liabilities, in markets that are not active. Level 3 is the least reliable and uses significant unobservable inputs that uses the best information available under the circumstances, which includes the District’s own data in measuring unobservable inputs. Based on the criteria in the preceding paragraph, the investment in U.S. Bank Managed Money Market are Level 1 assets. InvestmentMaturityFair ValueU.S. Bank Managed Money MarketN/A3,492,880$ NOTE C – CASH AND INVESTMENTS (CONTINUED) Interest Rate Risk The District monitors investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. Credit Risk The District's investments are limited by state statutory requirements and bond compliance. The District has no investment policy that would further limit its investment choices. As of September 30, 2022, the District's investment in the U.S. Bank Managed Money Market were not rated. Concentration of Credit Risk The District places no limit on the amount it may invest in any one issuer. The investment in First Treasury Obligation represents 10% of the District's total investments. The investments in U.S. Bank Managed Money Market Account represents 100% of the District’s total investments. The types of deposits and investments and their level of risk exposure as of September 30, 2022 were typical of these items during the fiscal year then ended. The District considers any decline in fair value for certain investments to be temporary. In addition, the District has the ability to hold investments to maturity that have fair values less than cost. The District’s investments are recorded at book value. NOTE D – INTERFUND ACTIVITY Interfund balances at September 30, 2022, consisted of the following: The General Fund collected funds on behalf of the Capital Projects Fund and owed an amount to the Capital Projects Fund at year end. ReceivablePayableCapital Projects FundGeneral Fund60,483$ NOTE E – SPECIAL ASSESSMENT REVENUES Assessments are non-ad valorem assessments on benefitted property within the District. Operating and Maintenance Assessments are based upon adopted budget and levied annually. Debt Service Assessments are levied when bonds are issued and collected annually. The District may collect assessments directly or utilize the uniform method of collection (Chapter 197.3632, Florida Statutes). Direct collected assessments are due as determined by annual assessment resolution adopted by the Board of Supervisors. Assessments collected under the uniform method are mailed by County Tax Collector on November 1 and due on or before March 31 of each year. Property owners may prepay a portion or all of the Debt Service Assessments on their property subject to various provisions in the bond documents. Assessments and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. NOTE F – CAPITAL ASSETS Capital Asset activity for the year ended September 30, 2022 was as follows: Depreciation of $13,648 was charged to physical environment. BalanceBalanceOctober 1,September 30,2021AdditionsDeletions2022Governmental Activities: Capital assets, not being depreciated: Construction in progress55,626,370$ 7,610,642$ (3,661,978)$ 59,575,034$ Capital assets, being depreciated: Equipment136,475 - - 136,475 Less accumulated depreciation for: Equipment(27,296) (13,648) - (40,944) Total Capital Assets, Being Depreciated, net109,179 (13,648) - 95,531 Governmental Activities Capital Assets55,735,549$ 7,596,994$ (3,661,978)$ 59,670,565$ NOTE G – LONG-TERM DEBT The following is a summary of activity in the long-term debt of the District for the year ended September 30, 2022: Long-term debt at October 1, 2021 $ 31,825,000 Issuance of debt 12,755,000 Principal payments (12,040,000) Long-term debt at September 30, 2022 $ 32,540,000 Long-term debt is comprised of the following: Special Assessment Bonds $21,435,000 Series 2016 Special Assessment Bonds (A1, A2 and B) due in annual principal installments through May 1, 2047. Interest at rates ranging from 4.5% to 6.0% is due May and November. $ 6,090,000 $16,490,000 Series 2018 Special Assessment Bonds (A1 and A2) due in annual principal installments beginning May 2020 and maturing May 1, 2049. Interest at rates ranging from 4.25% to 5.60% is due May and November. 8,550,000 $8,110,000 Series 2019 Special Assessment Bonds (A1 and A2) due in annual principal installments beginning May 2020 and maturing May 1, 2049. Interest at rates ranging from 5.2% to 5.8% is due May and November. 3,505,000 $8,575,000 Series 2020 Special Assessment Bonds (A1, A2 and A3) due in annual principal installments beginning May 2022 and maturing May 1, 2051. Interest at rates ranging from 4.250% to 5.375% is due May and November. 1,640,000 $12,755,000 Series 2021 Special Assessment Bonds (Phase 3B and Phase 4) due in annual principal installments beginning May 2023 and maturing May 1, 2052. Interest at rates ranging from 2.4% to 4.0% is due May and November. 12,755,000 Total Bonds Payable $ 32,540,000 Bond discount, net (41,367) Bond premium, net 107,460 Bonds Payable, Net $ 32,606,093 NOTE G – LONG-TERM DEBT (CONTINUED) The annual requirements to amortize the principal and interest of long-term debt outstanding as of September 30, 2022 are as follows: Summary of Significant Bonds Resolution Terms and Covenants Depository Funds – The bond resolution establishes certain funds and determines the order in which revenues are to be deposited into these funds. A description of the significant funds, including their purposes, is as follows: 1. Reserve Fund – The 2016A-1 Reserve Account is funded from the proceeds of the Bonds in an amount equal to 30% of the maximum annual debt service requirement for the Series 2016A-1 Bonds. Monies held in the reserve accounts will be used only for the purposes established in the Trust Indenture. 2. Reserve Fund – The 2018A-1 Reserve Account is funded from the proceeds of the Bonds in an amount equal to 30% of the maximum annual debt service requirement for the Series 2018A-1 Bonds. Monies held in the reserve accounts will be used only for the purposes established in the Trust Indenture. Year Ending September 30,PrincipalInterestTotal2023 $ 620,000 $ 1,509,916 $ 2,129,916 2024 640,000 1,487,494 2,127,494 2025 670,000 1,464,394 2,134,394 2026 690,000 1,438,839 2,128,839 2027 715,000 1,412,439 2,127,439 2028-2032 4,095,000 6,584,819 10,679,819 2033-2037 5,130,000 5,577,344 10,707,344 2038-2042 6,460,000 4,263,729 10,723,729 2043-2047 8,305,000 2,492,498 10,797,498 2048-2052 5,215,000 577,643 5,792,643 Totals $ 32,540,000 $ 26,809,115 $ 59,349,115 3. Reserve Fund – The 2019A-1 Reserve Account is funded from the proceeds of the Bonds in an amount equal to 30% of the maximum annual debt service requirement for the Series 2019A-1 Bonds. Monies held in the reserve accounts will be used only for the purposes established in the Trust Indenture. 4. Reserve Fund – The 2020A-1 Reserve Account is funded from the proceeds of the Bonds in an amount equal to 30% of the maximum annual debt service requirement for the Series 2020A-1 Bonds. Monies held in the reserve accounts will be used only for the purposes established in the Trust Indenture. 5. Reserve Fund – The Phase 3B Debt Service Reserve Account is funded from the proceeds of the Series 2021 (Phase 3) Bonds in an amount equal to 50% of the maximum annual debt service requirement for the Series 2021 (Phase 3) Bonds until certain release conditions have been met. The reserve requirement reduces in 2 tiers once certain release conditions, as established in the Trust Indenture, have been met down to 25% and 10%, respectively. NOTE G – LONG-TERM DEBT (CONTINUED) The following is a schedule for the reserve requirements: Developer Advance In a prior year, the Developer agreed to provide advance funding for the infrastructure project totaling $4,580,339. During the current year, the District issued Series 2021 Special Assessment Bonds and utilized a portion of the proceeds to reimburse the Developer for all outstanding advanced amounts of $4,580,339. NOTE H – FINANCED PURCHASES Series 2016A-1 Special Assessment Bonds133,847$ 133,013$ Series 2018A-1 Special Assessment Bonds184,467$ 183,765$ Series 2019A-1 Special Assessment Bonds77,637$ 77,208$ Series 2020A-1 Special Assessment Bonds34,374$ 34,026$ Series 2021 (P3B) Special Assessment Bonds140,339$ 140,241$ Series 2021 (P4) Special Assessment Bonds211,869$ 211,869$ Reserve BalanceReserve RequirementAssessment BondsSpecial Governmental Activities Municipal Asset Management, Inc. Fitness Equipment Lease During the year ended September 30, 2019, the District entered into a financed purchase agreement for certain fitness equipment. The agreement has an end of finance title transfer to the District which qualifies it as a financed purchase; therefore, the asset has been recorded at the present value of future minimum payments. The annual requirements to amortize the principal and interest of the financed purchases as of September 30, 2022 were as follows: NOTE I – 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. These risks are covered by Year EndingSeptember 30,Amount20239,230$ Total minimum lease payments9,230 Less: amount representing interest(162) Present value of minimum lease payments9,068$ commercial insurance from independent third parties. Settled claims from these risks have not exceeded commercial insurance coverage over the past three years. NOTE J – SUBSEQUENT EVENT Subsequent to year end, the District made prepayments totaling $20,000 on the Series 2021 (Phase 3B) Special Assessment Bonds. INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Board of Supervisors 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, as listed in the table of contents, of Meadow View at Twin Creeks 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 October 24, 2023. Report on 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 (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 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. 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 Meadow View at Twin Creeks Community Development District Report on 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 PL Fort Pierce, Florida October 24, 2023 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, 2022, and have issued our report thereon dated October 24, 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 Reports and Schedule 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 that report, which is dated October 24, 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 made 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 Section 10.554(1)(i)5.a. and 10.556(7), Rules of the Auditor General, requires 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 the Meadow View at Twin Creeks Community Development District had not met one of the conditions described in Section 218.503(1), Florida Statutes. Pursuant to Sections 10.554(1)(i)5.b. and 10.556(8), Rules of the Auditor General, we applied financial conditions assessment procedures as of September 30, 2022 for the 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. 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 Meadow View at Twin Creeks 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: 27 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: $2,485,658 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 spent $7,610,642 on various 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 amended, see below. As required by Section 218.39(3)(c), Florida Statutes, and Section 10.554(1)(i)8, Rules of the Auditor General, the Meadow View at Twin Creeks Community Development District reported: 1) The rate or rates of non-ad valorem special assessments imposed by the District: General Fund, $564 - $846 and Debt Service Fund, $1,233.86 - $2,146.75. 2) The amount of special assessments collected by or on behalf of the District: Total special assessments collected was $9,027,328. 3) The total amount of outstanding bonds issued by the District and the terms of such bonds: See Note G. Additional Matters Original BudgetActualVariance with Original Budget Positive (Negative) Revenues Special assessments694,613$ 712,489$ 17,876$ Developer contributions857,161 748,777 (108,384) Investment income- 30 30 Miscellaneous revenues10,000 38,271 28,271 Total Revenues1,561,774 1,499,567 (62,207) ExpendituresCurrentGeneral government181,084 183,097 (2,013) Physical environment740,656 827,404 (86,748) Culture and recreation640,034 515,274 124,760 Debt ServicePrincipal- 25,709 (25,709) Interest- 1,982 (1,982) Total Expenditures1,561,774 1,553,466 8,308 Revenues over/(under) expenditures- (53,899) (53,899) Other Financing Sources/(Uses) Transfers in- 494 494 Net changes in fund balance- (53,405) (53,405) Fund Balances - Beginning of year- 423,867 423,867 Fund Balances - End of year-$ 370,462$ 370,462$ 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 which 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 October 24, 2023 INDEPENDENT ACCOUNTANTS’ 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, 2022. 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, 2022. Berger, Toombs, Elam, Gaines & Frank Certified Public Accountants PL Fort Pierce, Florida October 24, 2023