UNIVERSITY PARK RECREATION DISTRICT FINANCIAL STATEMENTS
SEPTEMBER 30, 2020

UNIVERSITY PARK RECREATION DISTRICT

	TABLE OF CONTENTS		
	SEPTEMBER 30, 2020		
		
PAGE	
	Independent Auditor’s Report	1	
	Management’s Discussion and Analysis (MD&A)	3	
PART I.	FINANCIAL SECTION		
	Basic Financial Statements:		
	Government-Wide Financial Statements: Statement of Net Position
Statement of Activities	
13	
		14	
	Fund Financial Statements:
Balance Sheet - Governmental Funds
Reconciliation of the Governmental Funds Balance Sheet To the Statement of Net Position
Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities
Statement of Net Position - Proprietary Fund
Statement of Revenues, Expenses, and Changes in Net Position - Proprietary Fund
Statement of Cash Flows - Proprietary Fund	
15	
		16	
		17	
		
18	
		19	
		20	
		21	
	Notes to Financial Statements	22	
PART II.	REQUIRED SUPPLEMENTARY INFORMATION OTHER THAN MD&A		
	Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - General Fund
Schedule of Revenues and Departmental Expenses - Budget and Actual - Proprietary Fund: Enterprise (University Park Country Club)	
38	
		
39	
PART III.	OTHER REPORTS		
	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	

40	
	Independent Auditor’s Report on Compliance with Section 218.415, Florida Statutes	
42	
	Management Letter	43	

INDEPENDENT AUDITOR’S REPORT

June 4, 2021

To the Board of Supervisors
UNIVERSITY PARK RECREATION DISTRICT
University Park, Florida 34201

Report on the Financial Statements

We have audited the accompanying financial statements of the governmental activities, the business-type activities and each major fund of UNIVERSITY PARK RECREATION DISTRICT ("the District") as of and for the year ended September 30, 2020, and the related notes to the financial statements, which collectively comprise the District’s basic financial statements as listed in the table of contents.

Management’s Responsibility for the Financial Statements

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

Auditor’s Responsibility

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

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the 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 District’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 District’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

- 1 -

Board of Supervisors
UNIVERSITY PARK RECREATION DISTRICT June 4, 2021
Page 2

Opinions

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities and each major fund of UNIVERSITY PARK RECREATION DISTRICT as of September 30, 2020, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Other Matters

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the management's discussion and analysis and budgetary comparison information on pages 3 through 12 and 38 and 39 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated June 4, 2021, 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, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the DISTRICT'S internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the DISTRICT's internal control over financial reporting and compliance.

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Certified Public Accountants Naples, Florida

University Park Recreation District (the “District”) Administration offers readers of the District's financial statements this narrative overview and analysis of the financial activities of the District for the fiscal year ended September 30, 2020. Please read it in conjunction with the accompanying basic financial statements.

FINANCIAL HIGHLIGHTS
(rounded to thousands)
 	September 30,		Increase
	 	2020		 	2019		    (Decrease)		
Total net position	$	22,426	$	477	$	21,949	
Unrestricted net position available for future use	$	326	$	477	$	(151)	
Governmental net position	$	5,520	$	477	$	5,043	
Total revenues from all sources	$	30,974	$	1,201	$	29,773	
Governmental revenues	$	24,211	$	1,201	$	23,010	
Total cost of District programs	$	26,199	$	729	$	25,470	
Governmental change in net position	$	5,042	$	478	$	4,564	
General fund revenues (under) over expenditures	$	(359)	$	458	$	(817)	
General fund unassigned fund balance	$	208	$	458	$	(250)	
As a percent of general fund expenditures	45.25%	62.79%	(17.54)%	
Country Club operating (loss)	$	(238)	$	0	$	(238)	
Country Club change in net position	$	16,906	$	0	$	16,906	
Change in total long-term debt for the District

USING THIS ANNUAL REPORT	$	(175)	$	0	$	(175)	

This annual report consists of a series of financial statements. The three components of the financial statements are: (1) Government-wide financial statements that include the Statement of Net Position and the Statement of Activities. These statements provide information about the activities of the District as a whole.
Fund financial statements tell how these services were financed in the short term, as well as what remains for future spending. Fund financial statements also report the District's operation in more detail than the government-wide statements by providing information about the District's most significant funds. (3) Notes to the basic financial statements expand upon information reported in the government-wide and fund statements.

REPORTING ON THE DISTRICT AS A WHOLE

Statement of Net Position and the Statement of Activities (Government-wide)
A frequently asked question regarding the District's financial health is whether the year's activities contributed positively to the overall financial well-being. The Statement of Net Position and the Statement of Activities report information about the District as a whole and about its activities in a way that helps answer this question. These statements include all assets, deferred outflows of resources, liabilities and deferred inflows of resources using the accrual basis of accounting, which is similar to the accounting used by most private-sector companies. All of the current year's revenues and expenses are taken into account, regardless of when cash is received or paid.

These two statements report the District's net position and changes therein. Net position, the difference between assets plus deferred outflows of resources and liabilities plus deferred inflows of resources, is one way to measure the District's financial health, or financial position. Over time, increases or decreases in net position are an indicator of whether the financial health is improving or deteriorating.

The statement of Net Position and the Statement of Activities present information about the following:

Governmental activities - All of the District's basic services are considered to be governmental activities, including general government and recreation. Assessments and fees finance most of these activities.

Proprietary activities/Business-type activities - The District charges fees to its members and/or non- members (i.e., public) to cover all or most of the cost of the services provided. The District's Country Club is reported in this category.

REPORTING THE DISTRICT'S MOST SIGNIFICANT FUNDS

Fund Financial Statements
The fund financial statements provide detailed information about the most significant funds - not the District as a whole. Some funds are required to be established by State law. However, management may establish other funds as times, which aid in the management of money for particular purposes or meet legal responsibilities associated with the usage of certain taxes, grants, and other money. The District's two types of funds – governmental and proprietary - use different accounting approaches as explained below.

Governmental funds
Most of the District's basic services are reported in governmental funds. Governmental funds focus on how resources flow in and out, with balances available for spending remaining at year-end. These funds are reported using an accounting method called the modified accrual accounting method, which measures cash and all other financial assets that can be converted to cash readily. The governmental fund statements provide a detailed short-term view of the District's general government operations and the basic services it provides. Governmental fund information shows whether there are more or fewer financial resources that can be spent in the near future to finance the District's programs.

The District maintains three individual governmental funds as follows:

General Fund - The General Fund is the general operating fund of the District. It is used to account for all financial resources except those required to be accounted for in another fund.

Debt Service 2019 Fund - This Debt Service 2019 Fund accounts accumulated resources for, and the payment of, general long-term principal, interest and related costs for the 2019 project consisting of the acquisition of an existing 27-hole University Park championship golf course, clubhouse, restaurant, lounge, fitness center, tennis center, and other facilities and approximately 100 acres of additional land and certain renovations and upgrades to such facilities.

Acquisition and Construction Fund - This Acquisition and Construction Fund accounts for the construction and acquisition of capital assets such as acquisition of University Park golf courses as well as certain defined capital improvements described in the 2019 Bond Series Indenture.

The basic governmental fund financial statements can be found on pages 15 through 18 of the report. The District reports the following major (and only) proprietary fund:
Proprietary Funds
The District's only proprietary fund is the Enterprise (Country Club) Fund, which charges members and non-members (i.e., public) for the services it provides. These services are generally reported in proprietary funds. Proprietary funds are reported in the same way that all activities are reported in the Statement of Net Position and the Statement of Activities. The basic proprietary fund financial statements can be found on pages 19 through 21 of this report.

GOVERNMENT-WIDE FINANCIAL ANALYSIS

As noted earlier, net position may serve over time as a useful indicator of a government's financial position. In the case of the District, the net position was $22,425,558 at the close of the most recent fiscal year.

A significant portion of the District's net position (76%) reflects its investment in capital assets (e.g., land, golf course and related improvements, buildings, machinery and equipment) and tennis courts, less any related debt still outstanding, which was used to acquire those assets. The District uses these capital assets to provide services to its property owners residing in the District as well as the public; consequently, these assets are not available for future spending.

NET POSITION

Assets:
Current and other assets Receivables
Due from another fund Inventories
Prepaid expenses Other assets Restricted cash Capital assets, net
Total assets		Business			
	Governmental	-Type			
	 	Activities		   Activities 	 	To	tal		
	 	2020	    	2019		 	2020		 	2020		 	2019		
	$	242,401 $	622,856	$ 1,478,179	$ 1,720,580	$	622,856	
	24,000,008	70,764	196,500	24,196,508	70,764	
	0	0	40,434	40,434	0	
	0	0	176,770	176,770	0	
	345,468	0	95,201	440,669	0	
	0	0	9,043	9,043	0	
	5,400,464	0	0	5,400,464	0	
	 	0	0	   18,980,303	   18,980,303	 	0	
	   29,988,341	693,620	   20,976,430	   50,964,771	 	693,620	
Deferred outflows of resources:	 	0	 	0	 	0	 	0	 	0	
Liabilities:
Current liabilities Long-term liabilities
Total liabilities	
387,629	
216,173	
1,327,905	
1,715,534	
216,173	
	   24,080,772	 	0	 	2,742,907	   26,823,679	 	0	
	   24,468,401	 	216,173	 	4,070,812	   28,539,213	 	216,173	
Deferred inflows of resources:	 	0	 	0	 	0	 	0	 	0	
Net position:
Net investment in capital assets
Restricted Unrestricted
Total net position	
0	
0	
17,093,179	
17,093,179	
0	
	5,006,542	0	0	5,006,542	0	
	 	513,398	 	477,447	 	(187,561)	 	325,837	 	477,447	
	$ 5,519,940	$	447,447	$ 16,905,618	$ 22,425,558	$	477,447	

Governmental Activities						
The cost of all governmental activities this year was $1,895,629 plus capital transfers of $17,272,836. As shown on page 14, Changes in Net Position, those who directly benefited from the programs paid for
$24,001,297 of this cost and $209,661 was financed through general revenues. Governmental activities increased the District's net position by $5,042,493 thereby account for 100% of the total increase in the net position of the District.

CHANGES IN NET POSITION

Governmental
 	Activities	

Business
-Type
   Activities 

 	Total	

	 	2020		 	2019		 	2020		 	2020		 	2019		
REVENUES:						
Non-ad valorem assessments	$ 24,001,297	$ 1,201,000	$	0	$ 24,001,297	$ 1,201,000	
Charges for services	0	0	6,687,098	6,687,098	0	
Other revenues and interest	 	109,661	 	5,895	 	22,153	 	131,814	 	5,895	
Total Revenues	   24,110,958	 	1,206,895	 	6,709,251	   30,820,209	   1,206,985	

EXPENDITURES:
Current:
General government	1,247,339	729,300	0	1,247,339	729,300	
Capital outlay	0	0	0	0	0	
Contingency/revenue reserve	0	0	0	0	0	
Debt service:						
Principal retirement	0	0	0	0	0	
Interest	648,290	0	0	648,290	0	
Country Club	 	0	 	0	 	6,976,469	 	6,976,469	 	0	
Total Expenditures	 	1,895,629	 	729,300	 	6,976,469	 	8,872,098	 	729,300	

Excess (deficiency) of revenues over (under) expenditures	

22,215,329	

471,595	

(267,218)	

21,948,111	

471,595	
Contributions and Transfers						
Contributions	(17,272,836)	0	17,272,836	0	0	
Transfers in (out)	 	100,000	 	0	 	(100,000)	 	0	 	0	
Total Contributions and Transfers	   17,172,836	 	0	17,172,836	 	0	 	0	
Net change in net positions	5,042,493	477,595	16,905,618	21,948,111	477,595	
Net position-beginning of year (**)	 	477,447	 	(148)	 	0	 	477,447	 	(148)	
Net position-end of year	$ 5,519,940	$	477,447	$ 16,905,618	$ 22,425,558	$	477,447	

Note (**) The District acquired the University Park Country Club on November 22, 2019 from the issuance of its non-ad valorem assessment bonds series 2019. Consequently, the above business-type activities results are for the period from November 22, 2019 through September 30, 2020.

The District's programs solely include general government and debt service. Each program's net cost (total cost, less revenues generated by the activities) is presented below. The net cost shows the extent to which the District's general taxes support each of the District's programs.

COST OF SERVICES:

 	2020		 	2019	
Total Cost	Net Cost	Total Cost	Net Cost
  of Services	of Services	of Services	of Services  

General government	$ 1,247,339	$ 22,753,958	$	729,300	$	471,700	
Interest on long-term debt	 	648,290	 	(648,290)	 	0	 	0	
	$ 1,895,629	$ 22,105,668	$	729,300	$	471,700	

At the end of the current year, as compared to the prior year, the total cost of services increased by
$1,166,329. This increase is primarily due to expansion of services and overall operations from the acquisition of University Park Country Club and debt management.

Business-Type Activities
At the end of the current year, the Country Club charges for services (revenues) for the Business-type activities was $7,030,044 and charges for services were $6,762,826. Since the acquisition date November 22, 2019 net position of the Proprietary Fund (Country Club) at September 30, 2020, was $16,905,618. Net position increased by $16,905,618 in the year.

There was some negative impact in the District's Business-type activities largely due to the government mandated closure. Consequently, this caused the Country Club to have limited restaurant operations and had to cancel several events due to the COVID-19 pandemic.

FINANCIAL ANALYSIS OF THE DISTRICT'S FUNDS

As noted earlier, the District uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.

Governmental Funds
The focus of the District's governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the District's financing requirements. In particular, unrestricted (unassigned/assigned) fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year.

At the end of the current fiscal year, the combined fund balance for all Governmental Funds was $5,578,401, a
$5,100,954 increase from the 2019 fund balance of $477,447. Approximately 4% of the combined ending fund balance ($5,578,401) constitutes unrestricted (unassigned/assigned) fund balance totaling $208,363, which is available for spending at the government's discretion. The remainder of fund balance ($5,370,038) is restricted (non-spendable/restricted) to indicate that it is not available for new spending because it has already been committed for a variety of other restricted purposes.

General Fund
The General Fund is the chief operating fund of the District. At the end of the current fiscal year, unassigned fund balance of the General Fund was $208,363 while the General Fund total fund balance was $218,363. As a measure of the General Fund's liquidity, it is helpful to compare both unassigned balance which is 45.25% of total general fund expenditures of $460,381 and the total fund balance represents 47.43% of that same amount.

The General Fund unassigned fund balance ($208,363) represents a decrease of $249,619 from the 2019 unassigned general fund balance of $457,982.

General Fund Budgetary Highlights
There was a formal General Fund budget amendment executed during the year to reclass certain appropriations among its total appropriated expenditures. The General Fund’s 2020 total appropriations adopted of $535,530 was not amended.

General Fund Budget Analysis
As shown on page 38 of this report, in the Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual, there was an overall favorable expenditure variance of $75,149.

Debt Service 2019 Fund and Capital Acquisition and Construction Fund
The District had no formal budgets adopted for its debt service 2019 fund and its acquisition and construction fund since these funds were created initially upon the issuance of the District’s Non-Ad Valorem Assessments Bonds Series 2019.

CAPITAL ASSET AND DEBT ADMINISTRATION

Capital Assets
The capital assets of the District are those assets that are used in the performance of the District's functions. Capital assets include land, golf course and related improvements, buildings, machinery and equipment, and tennis courts.

The District's investment in capital assets for its business-type activities as of September 30, 2020 was
$17,093,179 (net of accumulated depreciation and related capital lease obligations). The District had no investment in capital assets for its governmental activities in either fiscal year 2020 or 2019, respectively.

CAPITAL ASSETS
					Business			
	Governmental
 	Activities			- Type
   Activities 	
 	Total			
	 	2020			 	2019			 	2020		 	2020	    		2019		
Land	$	0	$	0	$ 8,525,000 $ 8,525,000 $	0	
Construction in progress		0		0	89,947	89,947	0	
Golf course and improvements		0		0	5,115,043	5,115,043	0	
Buildings		0		0	3,171,213	3,171,213	0	
Machinery and equipment		0		0	2,549,757	2,549,757	0	
Tennis courts		                   0		                   0	 	233,977	233,977    		0	
Total assets		0		0	19,684,937	19,684,937	0	
Less accumulated depreciation, net		                   0		                   0	 	(704,634)	(704,634)   		0	
Net capital assets	$		0	$		0	$ 18,980,303 $ 18,980,303 $		0	

There were no governmental activities capital assets acquired during the years ended September 30, 2020 and 2019, respectively.

On November 22, 2019, the District acquired through designated bond issuance proceeds for $16,750,000 certain recreation facilities consisting of a 27-hole golf course and practice facilities, a pro shop, a clubhouse with kitchen, administrative and community facilities, tennis courts, a croquet court, a fitness center, a golf cart storage and other facilities with parcels of land within the University Park County. Consequently, the Enterprise (Country Club) Fund depreciation amount of $783,411 was computed from this acquisition date of the golf course and other related amenities/equipment on November 22, 2019 through September 30, 2020.
These capital assets are included as transfers from the Acquisition and Capital Fund net of other capital asset activity during the fiscal year.

Debt
Currently, the District uses debt financing on as-needed basis each year. At the end of the current fiscal year, the District had total long-term debt of $26,823,679: $24,080,772 (including unamortized bond premium of
$80,772) in the governmental activities and $2,742,907 in business-type activities. None of the District's long- term debt comprises debt backed by the full faith and credit of the government.

OUTSTANDING DEBT
				Business					
	Governmental		- Type					
	 	Activities			   Activities 		 	Total			
	 	2020		 	2019			 	2020			 	2020		 	2019		
Series 2019 Bonds	$ 24,000,000	$	0	$	0	$ 24,000,000	$	0	
Capital leases	0		0	1,835,668	1,835,668		0	
Loan payable	0		0	855,783	855,783		0	
Equipment loans	0		0	51,456	51,456		0	
Plus: Bond premium, net	 	80,772	 	0	 	0	 	80,772	 	0	
Total	$ 24,080,772	$		0	$ 2,742,907	$ 26,823,679	$		0	

NEXT YEAR'S BUDGET AND ECONOMIC FACTORS

The FY 2020/2021 Budget reflects continued improvement to the University Park golf course while emphasizing improved community appearance and financial stability. Most importantly, the budget provides necessary resources for the District to maintain and further improve services to our residents without having to use the General Fund Unassigned Fund Balance.

The District's financial plan represents an aggressive approach to adequately maintain infrastructure and address gaps in the organization in order to deliver services to the community. While the budget allocates resources to improve the District's ability to address service and maintenance demands annually, there are also significant capital investments to be made to ensure proper services are maintained and provided to District residents.

Economic Factors and Future Trends
In March 2020, the outbreak of the novel coronavirus (COVID-19) spread throughout the world, including in the United States. The financial impacts of COVID-19 were far reaching, and the District was no different. The largest impact was felt in Restaurant Operations with restrictions on indoor dining, elimination of banquet events, and no buffet dining. Social activities, including weekly happy hour events, were also restricted and had a negative financial impact. Conversely, the District was fortunate to offer an outdoor activity, golf, to its membership and the general public. Golf Operations saw increases across all sectors: member rounds, outside rounds, green fees, cart fees, among others.

Despite the economic impact of COVID-19, total members and membership revenue remained materially flat year over year.

MEMBERSHIP CHANGE		
	 	2020		 	2019		   Difference 	
Full membership	296	286	10	
Tennis membership	98	94	4	
Sports membership	102	107	(5)	
Social membership	637	637	-	
Twilight Tennis membership	7	9	(2)	
Jr. Executive membership	 	2	 	2	 	-	

Total membership	 	1,142	1,135	7

The District’s Board of Supervisors (“The Board”) adopted a preliminary FY2022 Budget for the Enterprise Fund (Country Club), General Fund, and Debt Service Fund at their May 14, 2021 Board Meeting. The Budgets, primarily the Enterprise (Country Club) Fund, were prepared assuming club operations return to pre COVID-19 activities, reflecting increased revenue, namely in Restaurant Operations.

The Board recently accepted the Club’s Master Plan presented by Fawley Bryant Architectures. Phase #1 projects of the Plan include significant improvement to the dining experience. This will be accomplished with a remodel of the dining room indoor facilities and a complete renovation of the outdoor dining and social gathering spaces in the Café. The Budget assumes the restaurant renovations are completed by January 1, 2022 with modest interruption to ala carte dining during construction.

The Board of Supervisors also approved a new Membership Plan commencing on January 1, 2022 with fewer membership categories, enhanced membership flexibility and an adjusted fee structure. The FY2022 Budget reflects this new membership plan.

The Board also recently approved the continued renovation of the Golf Course with holes #10-18 planned for the summer of 2021. Tentative plans for a similar renovation of holes #19-27 are being considered for the summer of 2022. The 2022 budget assumes the remaining open 18 holes can comfortably accommodate our summer needs with minimal impact on golf revenues.

Finally, in addition to the Enterprise (Country Club) Fund and General Fund Operating Budgets, Club Management has commenced the creation of a long-term Capital Reserve plan for ongoing equipment replacement and capital improvement needs. This will include the identification and tagging of all Club assets, identifying the useful lives of the assets, and quantifying the replacement value of said assets. This listing will become the foundation of Capital Ledger needs, and Member/Resident support, as we move forward as a Club.

The District’s delinquent account balance remains of little concern. The District had two delinquent accounts related to the 2019 Assessment as of year ended September 30,2020. Each account was placed in litigation, one of which has been paid in full in FY2021 and the other is approaching resolution. On the Club Operations side, there are no material concerns of delinquency.

CONTACTING THE DISTRICT'S FINANCIAL MANAGEMENT

This financial report is designed to provide our citizens, taxpayers, customers, applicable club members, and creditors with a general overview of the District's finances and to show the District's accountability for the money it receives. If you have questions about this report or need additional financial information, please contact the District at (941) 355-3888.

John Fetsick, Director of Finance University Park, FL

PART I.	FINANCIAL SECTION

SEPTEMBER 30, 2020	
	
Governmental	
Business		
ASSETS	   Activities 	   Activities 	 	Total		
Cash	$	242,401	$ 1,478,179	$ 1,720,580	
Receivables	24,000,008	196,500	24,196,508	
Due from Acquisition and Construction Fund	0	40,434	40,434	
Inventories	0	176,770	176,770	
Prepaid expenses	345,468	95,201	440,669	
Other assets	0	9,043	9,043	
Restricted assets:				
Cash, restricted for debt and/or capital payments	5,400,464	0	5,400,464	
Capital assets, net:				
Non-depreciable assets	0	8,614,947	8,614,947	
Depreciable assets (net of depreciation)	 	0	   10,365,356	   10,365,356	
Total capital assets, net	 	0	   18,980,303	   18,980,303	
Total assets	   29,988,341	   20,976,430	   50,964,771	
LIABILITIES				
Accounts payable	34,038	115,637	149,675	
Due to Enterprise (Country Club) Fund	40,434	0	40,434	
Accrued payroll and other	0	418,753	418,753	
Accrued interest payable	313,157	0	313,157	
Unearned revenue	0	793,515	793,515	
Non-current obligations:				
Portion due within one year	515,000	1,323,838	1,838,838	
Portion due after one year	   23,565,772	 	1,419,069	   24,984,841	
Total liabilities	   24,468,401	 	4,070,812	   28,539,213	
NET POSITION				
Net investment in capital assets, net	0	17,093,179	17,093,179	
Restricted for:				
Debt service	5,006,542	0	5,006,542	
Unrestricted	 	513,398	 	(187,561)	 	325,837	
Total net position	$ 5,519,940	$ 16,905,618	$ 22,425,558	

The accompanying notes are an integral part of these financial statements.

UNIVERSITY PARK RECREATION DISTRICT STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED SEPTEMBER 30, 2020

Charges
for	Governmental

Business-type

Functions/Programs
Primary Government:

     Expenses	

 	Services	

 	Activities	

 	Activities	

 	Total	

Governmental activities
General government	
$ 1,247,339	
$ 24,001,297	
$ 22,753,958	
$	0	
$ 22,753,958	
Interest on long term debt	 	648,290	 	0	 	(648,290)	 	0	 	(648,290)	
	1,895,629	24,001,297	22,105,668	0	22,105,668	
Business-type activities-country club	 	7,030,044	 	6,762,826	 	0	 	(267,218)	 	(267,218)	
Total business-type activities	 	7,030,044	 	6,762,826	 	0	 	(267,218)	 	(267,218)	
Total government	$ 8,925,673	$ 30,764,123	   22,105,668	 	(267,218)	   21,838,450	

General Revenues:		
Interest income	9,661	0	9,661	
Settlement proceeds-lawsuit	100,000	0	100,000	
Cash transfers	100,000	(100,000)	0	
Transfers-capital assets	 (17,272,836)	   17,272,836	 	0	
Total general revenues and transfers	(17,063,175)	17,172,836	109,661	
Change in net position	5,042,493	16,905,618	21,948,111	
Net position, September 30, 2019	 	477,447	 	0	 	477,447	
Net position, September 30, 2020	$ 5,519,940	$ 16,905,618	$ 22,425,558	

UNIVERSITY PARK RECREATION DISTRICT BALANCE SHEET - GOVERNMENTAL FUNDS SEPTEMBER 30, 2020

 	MAJOR FUNDS	
		
 	GENERAL		DEBT SERVICE
 	2019		ACQUISITION AND
  CONSTRUCTION  	TOTAL GOVERNMENTAL
 	FUNDS		
ASSETS							
Cash (Note 3) Receivables Prepaid expenses Other assets		$	242,401
0
10,000
 	0	$	1,661,975
24,000,008
0
                        0	$	3,738,489
0
0
 	0	$	5,642,865
24,000,008
10,000
 	0	
Total Assets		$	252,401	$		25,661,983	$	3,738,489	$	29,652,873	

LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES	
Liabilities:
Accounts payable Due to other funds Total Liabilities		
$	34,038
 	0
 	34,038	
$	
0
                        0
                        0	
$	
0
               40,434
               40,434	
$	34,038
 	40,434
 	74,472	
Deferred Inflows of Resources:
Unavailable revenue-special assessments
Total Liabilities and Deferred Inflows of Resourc	

es	
 	0
 	34,038	
 	24,000,000
 	24,000,000	
 	0
 	40,434	
 	24,000,000
 	24,074,472	
Fund Balances (Note 8): Reserved for:
Non-spendable Restricted Committed Assigned Unassigned
Total Fund Balances		

10,000
0
0
0
 	208,363
 	218,363	

0
1,661,983
0
0
 	0
 	1,661,983	

0
3,657,621
0
40,434
 	0
 	3,698,055	

10,000
5,319,604
0
40,434
 	208,363
 	5,578,401	
Total Liabilities, Deferred Inflows of Resources and Fund Balances		
$	252,401	
$		
25,661,983	
$	3,738,489	
$	29,652,873	

UNIVERSITY PARK RECREATION DISTRICT

RECONCILIATION OF THE GOVERMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET POSITION

SEPTEMBER 30, 2020				

TOTAL GOVERNMENTAL FUND BALANCE (Page 15)		
$	
5,578,401	
Amounts reported for governmental activities in the statement of net position are different because:				
The focus of governmental funds is on short-term financing, some assets will not be available to pay for current-period expenditures. Those assets (assessments receivable) are offset by deferred inflow in the governmental funds and thus are not included in fund balance:				
Adjustment of deferred inflows - unavailable revenue		$	24,000,000	
Long-term liabilities, including notes and bonds payable, are not due and payable in the current period and therefore are not reported in the funds. The amount borrowed is received in the governmental funds
and increases fund balance. Also, the difference between those amounts are the amortization of bond premium and insurance costs over the life
of the debt as well as year-end interest accrual adjustment in the statement of activities. Balance at year-end consist of:	
Bonds and notes payable
Less: unamortized bond premium
Plus: unamortized bond costs (insurance)
Less: accrued interest payable on long-term debt	$	(24,000,000)
(80,772)
335,468
         (313,157)		
		 	(24,058,461)	
Total Net Position (Page 13)		$		5,519,940	

The accompanying notes are an integral part of these financial statements.

- 16-

UNIVERSITY PARK RECREATION DISTRICT
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2020

 	MAJOR FUNDS	
		DEBT		ACQUISITION		TOTAL	
		SERVICE		AND		GOVERNMENTAL	
	 	GENERAL		 	2019			  CONSTRUCTION  	 	FUNDS		
REVENUES					
Non-ad valorem assessments	$	1,297	$	0	$	0	$	1,297	
Other revenues and interest	 	100,000	 	3,010	 	6,652	 	109,662	
Total Revenues	 	101,297	 	3,010	 	6,652	 	110,959	
EXPENDITURES							
Current:							
General government	460,381		0	43,198	503,579	
Capital outlay	0		0	0	0	
Debt service:							
Principal	0		0	0	0	
Interest		335,134	0	335,134	
Debt issuance costs and other	 	0	 	0	 	1,081,587	 	1,081,587	
Total Expenditures	 	460,381	 	335,134	 	1,124,785	 	1,920,300	
(Deficiency) of revenues over expenditures	(359,084)	(332,124)	(1,118,133)	(1,809,341)	
OTHER FINANCING SOURCES AND USES							
Transfers in (out)	100,000	11,705	(11,705)	100,000	
Transfers-contributions to Enterprise Fund	0		0	(17,272,836)	(17,272,836)	
Premium on issuance of bond	0		0	83,131	83,131	
Special assessment bond proceeds	 	0	 	1,982,402	 	22,017,598	 	24,000,000	
Total Financing Sources (Uses)	 	100,000	 	1,994,107	 	4,816,188	 	6,910,295	
Net Change in Fund Balances	(259,084)	1,661,983	3,698,055	5,100,954	
Fund Balances, September 30, 2019	 	477,447	 	0	 	0	 	477,447	
Fund Balances, September 30, 2020	$	218,363	$	1,661,983	$	3,698,055	$	5,578,401	
The accompanying notes are an integral part of these financial statements.
- 17 -

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, 2020	

Net Change in Fund Balances - Total Governmental Funds (Page 17)	
$	
5,100,954	
Amounts reported for governmental activities in the statement of activities are different because:			
Governmental funds report debt issuance costs (including prepaid bond insurance) as expenditures whereas prepaid bond insurance is capitalized and amortized over the life of the bonds in the government-wide statements.	
Capitalized prepaid bond insurance		345,264	
Governmental funds report annual collections of debt assessments as Revenue if any, including the portion collected for principal repayment. However, in the statement of activities, the principal repayment portion is recognized as revenue upon adoption of the resolutions authorizing the debt.		

24,000,000	
Interest expense/other in the statement of activities differs from the amount reported in governmental funds for two reasons. The net effect of
accrued interest on long-term debt (difference between amount that would have been accrued current year accrual), and adjustments arising from bond premium and bond insurance being amortized.			
Net effect of accrued interest on long-term debt Amortization of bond premium
Amortization of bond insurance costs	 		(313,157)
2,358
(9,795)		
		(320,594)	
Bond proceeds and premium are reported as financing sources in governmental funds and thus contribute to the change in fund balance.
In the government-wide statements, however, issuing debt/premium increases long-term liabilities in the statement of net position.			
Proceeds from special bond proceeds	(24,000,000)	
Bond premium	 	(83,131)	

Change in Net Position of Governmental Activities (Page 14)	
$		
5,042,493	

STATEMENT OF NET POSITION

PROPRIETARY FUND		
SEPTEMBER 30, 2020		
	Enterprise	
	(Country Club)	
Assets		
Current assets		
Cash and cash equivalents	$	1,478,179	
Accounts receivable	196,500	
Due from Acquisition and Construction Fund	40,434	
Inventories	176,770	
Prepaid expenses	95,201	
Other assets	 	9,043	
Total current assets	 	1,996,127	
Non-current assets		
Capital assets, net	 	18,980,303	
Total non-current assets	 	18,980,303	
Total assets	 	20,976,430	

Liabilities		
Current liabilities		
Accounts payable	115,637	
Accrued expenses	418,753	
Unearned revenue	793,515	
Loans payable - current portion	 	1,333,432	
Total current liabilities	 	2,661,337	
Non-current liabilities		
Loans payable	 	1,409,475	
Total non-current liabilities	 	1,409,475	
Total liabilities	 	4,070,812	
Net position		
Net investment in capital assets	17,093,179	
Unrestricted	 	(187,561)	
Total net position	$	16,905,618	

STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION PROPRIETARY FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2020		
	Enterprise	
	(Country Club)	
Operating revenue		
Membership dues	$	2,788,552	
Green/cart fees and other	2,400,795	
Restaurant revenues	1,450,614	
Tennis and fitness fees	47,137	
Miscellaneous	 	22,153	
Total operating revenues	 	6,709,251	
Operating expenses		
Golf course maintenance expenses	1,804,881	
Golf and pro shop operations	816,609	
Restaurant expenses	1,961,940	
Tennis and fitness	256,627	
Administrative and general	1,158,624	
Insurance	164,763	
Depreciation and amortization	 	783,411	
Total operating expenses	 	6,946,855	
Operating income (loss)	 	(237,604)	
Nonoperating revenues (expenses)		
Loss on disposal of equipment	(31,516)	
Initiation fees	53,575	
Interest expense	 	(51,673)	
Total nonoperating revenues (expenses)	 	(29,614)	
Contributions and transfers		
Capital contributions	17,272,836	
Transfer out	 	(100,000)	
Total contributions and transfers	 	17,172,836	
Change in net position	16,905,618	
Net position – beginning (November 22, 2019)	 	0	
Net position - ending	$	16,905,618	

STATEMENT OF CASH FLOWS

PROPRIETARY FUND		
FOR THE YEAR ENDED SEPTEMBER 30, 2020		
Cash flows from operating activities:		
Receipts from customers	$	7,306,266	
Payments to suppliers for goods or services	(3,247,787)	
Payments to employees for services	 	(2,671,199)	
Net cash provided by operating activities	 	1,387,280	
Cash flows from non-capital financing activities:		
Payment to other funds	 	(100,000)	
Net cash (used in) non-capital financing activities	 	(100,000)	
Cash flows from capital and related financing activities:		
Proceeds from Park Boulevard Management, LLC	855,783	
Principal paid on capital lease obligations and loans	(173,098)	
Initiation fees	53,575	
Interest paid on debt	(51,673)	
Acquisition of capital assets, net	 	(493,688)	
Net cash provided by capital and related financing activities	 	190,899	
Net increase in cash	1,478,179	
Cash, beginning of year	 	0	
Cash, end of year	$	1,478,179	
Reconciliation of operating income (loss)		
to net cash provided by operating activities:		
Operating income (loss)	$	(237,604)	
Adjustment to reconcile operating income		
to net cash provided by operating activities:		
Depreciation and amortization	783,411	
Loss on disposal of equipment	31,516	
Change in assets and liabilities		
Increase in accounts receivable	(196,500)	
Increase in due from Acquisition and Construction Fund	(40,434)	
Increase in inventories	(176,770)	
Increase in prepaids	(95,201)	
Increase in other assets	(9,043)	
Increase in accounts payable	115,637	
Increase in accrued expenses	418,753	
Increase in unearned income	 	793,515	
Total adjustments	 	1,624,884	
Net cash provided by operating activities	$	1,387,280	
Supplemental Disclosures of Cash Flow Information:		
Capital assets obtained from contributions	$	17,272,836	
Equipment acquired through capital leases and loans	$	2,060,222	

NOTE 1 - REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Reporting Entity
The UNIVERSITY PARK RECREATION DISTRICT ("the District") was created on August 3, 2018 pursuant to provisions of Chapters 418 and 189, Florida Statutes, as amended (the "Act"), created by Ordinance No.18-29 enacted by the Board of County Commissioners of Manatee County, Florida and operates within the criteria established. The District was established for the purposes of acquiring and improving recreation facilities benefitting property consisting of 1226 gross acres of land and 1201 residential units to be served by the District. The District has undertaken the acquisition, financing, renovation and improvement, in various stages of the recreation facilities known as “University Park County Club” and associated professional fees and incidental costs related thereto for the special benefit of the District lands, pursuant to the Act. 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 basic infrastructure for recreational facilities of all kinds, including, but not limited to real property, personal property, roads, parking lots, sidewalks, trails, paths, parks, ponds, lakes, preserves, lighting, landscaping, irrigation, signage, water sewer and parking within boundaries of the UNIVERSITY PARK RECREATION DISTRICT. The District is governed by a five-member Board of Supervisors, who were initially elected within certain defined terms.
The financial statements were prepared in accordance with Governmental Accounting Standards Board (“GASB”) Statements related to the Financial Reporting Unit, which establishes standards for defining and reporting on the financial reporting entity. Under the provisions of those standards, the definition of the financial reporting entity is based upon the concept that elected officials are accountable to their constituents for their actions. One of the objectives of financial reporting is to provide users of financial statements with a basis for assessing the accountability of the elected officials. The financial reporting entity consists of the District organizations for which the District is considered to be financially accountable and other organizations for which the nature and significance of their relationship with the District are such that, if excluded, the financial statements of the District would be considered incomplete or misleading. The District is financially accountable for a component unit if it appoints a voting majority of the organization’s governing board and it is able to impose its will on that organization or there is a potential for the organization to provide specific financial benefits to, or impose specific financial burdens on, the District, or the District has operational responsibility on the organization. Based upon the application of these criteria, there were no entities that met the criteria described above. Therefore, the financial statements include only the operations of the District.
The District’s financial statements include both government wide and fund financial statements: Government-Wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the non-fiduciary activities of the District. Governmental activities, which normally are supported by taxes, are reported separately from business-type activities of which the District had such activities during 2020. For the most part, the effect of inter-fund activity has been removed from these statements. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include (1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment. and (2) grants and contributions that are restricted to meeting the operational or capital requirements of a
particular function or segment.	Other items not properly included among program revenues are reported	
instead as general revenues.		
	- 22 -	

NOTE 1 - REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Government-Wide and Fund Financial Statements (Continued)
Separate financial statements are provided for governmental funds even though such funds are excluded from the government-wide financial statements. All governmental funds of the District are reported as major individual funds.

Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Non-ad valorem assessments are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.

Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers all revenues available if they are collected within 60 days after year-end. Expenditures generally are recorded when the related fund liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. The primary revenue sources associated with the current fiscal period that are susceptible to accrual are non-ad valorem assessments and any investment interest. All other revenue items become measurable and available only when cash is received by the District and are recognized as revenue at that time.

The District reports the following major governmental funds:

General Fund - The General Fund is the general operating fund of the District. It is used to account for all financial resources except those required to be accounted for in another fund.

Debt Service 2019 Fund - This Debt Service 2019 Fund accounts accumulated resources for, and the payment of, general long-term principal, interest and related costs for the 2019 Project consisting of the acquisition of an existing 27-hole University Park championship golf course, clubhouse, restaurant, lounge, fitness center, tennis center, and other facilities and approximately 100 acres of additional land and certain renovations and upgrades to such facilities.

Acquisition and Construction Fund - This Acquisition and Construction Fund accounts for the construction and acquisition of capital assets such as acquisition of University Park club facilities as well as certain defined capital improvements alluded in the 2019 Bond Series Indenture.

The District reports the following major (and only) proprietary fund:

Enterprise (Country Club) Fund - This Fund accounts for the activities related to the University Park Country Club.

NOTE 1 - REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Proprietary fund distinguishes operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and selling goods in connection with the proprietary fund’s principal ongoing operations. The principal operating revenues of the District’s Enterprise (Country Club) Fund are charges to members and the public for sales and services. Operating expenses for the Enterprise (Country Club) Fund include the cost of sales and amenity services, administrative expenses and depreciation and amortization on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses.

When both restricted and unrestricted resources are available for use, it is the government’s policy to use restricted resources first, then unrestricted resources as they are needed.

Budgetary Process
The District’s General Fund and Proprietary Fund budgets and amendments, are approved by the Board of Supervisors. There were no formal budgets adopted for the District’s Debt Service 2019 Fund or the Acquisition and Construction Fund during this fiscal year. Those Funds are adhering to and following the specific mandates as delineated in the 2019 Bond Series Indenture. The adopted budgets are prepared on a basis consistent with U.S. generally accepted accounting principles except the Proprietary Fund does not budget for depreciation. The adopted budget amounts presented in the accompanying basic financial statements are originally adopted, unless subsequently amended, by the District’s Board of Supervisors.
Budgetary control is established by the District through the appropriated budget for all applicable Funds.

The annual budgets serve as the legal authorization for expenditures. Expenditures cannot legally exceed the total amounts budgeted. All budget amendments, which change the legally adopted total appropriation, are approved by the Board of Supervisors.  Appropriations, if any, lapse at the year-end.

The District follows these procedures in establishing the budgetary data reflected in the financial statements.

a)	Each year the District management team submits to the District Board a proposed operating budget for	
	the fiscal year commencing the following October 1.	
b)	A public hearing is conducted to obtain taxpayer comments.	
c)	Prior to October 1, the budget is legally adopted via resolution by the District Board.	
d)	All budget changes must be approved by the District Board.	
e)	All budgets are adopted on a basis consistent with generally accepted accounting principles.	
f)	Unused appropriation for annually budgeted funds lapse at the end of the year.	

Encumbrances
Encumbrance accounting under which purchase orders and other commitments for expenditures of monies are recorded is not employed by the District and thus no amount has been included in these financial statements for encumbrances.

Due To and From Other Funds
Interfund receivables and payables arise from interfund transactions and are recorded by funds affected in the period in which transactions are executed. There were amounts due to and from other funds at September 30, 2020 in the accompanying fund statements.

NOTE 1 - REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Total Column on the Statement of Net Position, Statement of Activities, Balance Sheet - Governmental Funds and the Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds
The total columns on the statement of net position, statement of activities, balance sheet - governmental funds and the statement of revenues, expenditures and changes in fund balances - governmental funds is presented only to facilitate financial analysis and also is utilized for reconciliation purposes to the government-wide financial statements. Data in this column does not present financial position or results of operations in conformity with generally accepted accounting principles, and such data is not comparable to a consolidation.

Cash and Cash Equivalents
Cash and cash equivalents consist of petty cash, deposits in checking accounts and money market accounts. Cash equivalents would be short-term investment items with a maturity of three months or less when purchased.

Accounts Receivable
Accounts receivable in the Enterprise (Country Club) Fund are stated at the amount management expects to collect from outstanding balances. These accounts represent member charges for goods and/or services provided. It is the District’s policy to charge off uncollectible amounts when management determines the receivable will not be collected. There were no accounts receivable written-off during the year. The District’s collection policy includes sending a friendly collection letter at 30 days past payment due date, sending a stronger letter outlining consequences for nonpayment at 45 days past payment due date and consideration of suspension of members at 60 days past payment due date for nonpayment. Members will then have 15 days to make payment or their membership may be recalled by Club management. Any past due member balance that includes unpaid dues is subject to the suspension of Club privileges at the 30 days past payment due date. Members who join the Club after January 1 each year will have their dues prorated to the effective date of membership.

Assessments Receivable/Unavailable Revenue
Assessments receivable recorded in the Debt Service 2019 Fund represent the balance of outstanding assessments levied at the time the related debt issuance was authorized. The receivables are collected in annual installments together with assessments for interest and collection costs in amounts sufficient to meet the annual 2019 Bond Series debt service requirements.

The District reports unavailable revenue as a deferred inflow of resources in the fund financial statements in an amount equal to the assessments receivable since this revenue will be collected in future years. This assessment revenue is not deferred in the government-wide financial statements. Instead, it is recognized as revenue at the time the assessments are levied.

Restricted Assets
Certain resources set aside for the repayment of the District’s special assessment bond proceeds are classified as restricted assets on the statement of net position because they are maintained in separate bank accounts and their use is limited by applicable bond covenants. The “Cash”, restricted for principal and interest account is used to segregate resources accumulated for future debt service payments and certain capital improvements as shown in the 2019 Bond Series Indenture.

NOTE 1 - REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Investments
Investments, if any, are reported and are equal or equivalent to fair value. The District follows Florida Statutes Section 218.415 (20) when investments are acquired. For any investments held, the District categorizes its fair value measurement within the fair value hierarchy established by generally accepted accounting principles.
The hierarchy is based on the valuation inputs used to measure the fair values of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; and Level 3 inputs are significant unobservable inputs. All District’s funds held with US Bank (Bond Trustee) held at September 30, 2020 are in money market accounts. The District held no investments at year-end.

Inventories
Inventories in the Enterprise (Country Club) Fund are stated at the lower of cost (first-in, first-out method) or net realizable value and consist of food, beverage, and merchandise held for sale in the pro shop. The costs of governmental fund type inventory, if any, are recorded as expenditures when consumed rather than when purchased.

Prepaid Items
Payments made to vendors for services that will be benefit periods beyond September 30, 2020, in the governmental funds are recorded as prepaid items using the consumption method by recording an asset for the prepaid amount and showing the expenditure/expense in the year in which the services are consumed. At the fund reporting level, an equal amount of the fund balance is classified as non-spendable, as this amount is not available for general appropriation.

Capital Assets and Depreciation
Capital assets, which include land, golf course and related improvements, buildings, machinery and equipment and tennis courts are reported in the business-type activities columns in the government-wide financial statements (see Note 3). The District had no governmental capital assets at September 30, 2020 and 2019, respectively. Capital assets are defined by the District as assets with an initial, individual cost of more than
$1,000 and an estimated useful life in excess of one year. Capital assets are carried at historical cost or estimated historical cost. Contributed assets are recorded at acquisition value as of the date received. As the District constructs or acquires capital assets each period, such assets are capitalized and reported at historical cost. The reported value excludes normal maintenance and repairs which are essentially amounts spent in relation to capital assets that do not increase the capacity or efficiency of the item or extend its useful life.

The District’s golf course and improvements, buildings, machinery and equipment and tennis courts are being depreciated using the straight-line method over the following estimated useful lives.

    YEARS 
Golf course and improvements Buildings
Machinery and equipment Tennis courts	15
28
5 - 7
7	
	
- 26 -	

NOTE 1 - REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Payables and Accruals
Such payable and accrual amounts are recorded as expenses and liabilities when incurred in the government wide financial statements and as expenditures and liabilities in the fund financial statements when expected to be liquidated with available current expendable financial resources.

Compensated Absences
The District’s leased employees are granted compensated absence pay for vacation and sick leave in varying amounts based on length of service and other adopted policies. Compensated absences are accrued when earned in the government-wide and proprietary financial statements.

Unearned Revenue
The District reports unearned revenue on its government-wide and proprietary fund statements of net position. Unearned revenue arises when assets are recognized before revenue recognition criteria have been satisfied. On both the government-wide statements and proprietary fund statement, unearned revenues represent the corresponding liability for cash advances received to fund future expected expenditures related primarily to club membership dues and fees. In subsequent periods, when revenue recognition criteria are met the revenue will be recognized and the unearned revenue will be released.

Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position may report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The District had no items that qualify for reporting in this category. In addition to liabilities, the statement of net position may report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The District has only one type of item, which arises only under a modified accrual basis of accounting, that qualifies for reporting in this category. Accordingly, the item, unavailable revenue, is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from the balance of outstanding assessments levied by the District to repay outstanding debt. These amounts are deferred and recognized as an inflow of resources in the future periods that the amounts become available.

Long-Term Obligations
2019 Series bond payable is reported as liabilities in the government-wide statement of net position. This liability is not reported in the fund financial statements as they are considered to be current liabilities. In the government-wide financial statements, long-term debt and other long-term obligations are reported as liabilities in the statement of net position. Bond premiums and discounts are deferred and amortized over the life of the bonds using the straight-line method which approximates the effective interest method. Bonds are reported net of the applicable bond premium or discount. Bond issuance costs, other than prepaid insurance, are expensed at issuance. Prepaid insurance associated with the issuance of debt is reported as an asset and amortized over the term of the related debt. Related interest is expensed in the accompanying statement of activities.

NOTE 1 - REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Long-Term Obligations (Continued)
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as issuance costs, during the current period. The face amount of debt issued is reported as another financing source. Premiums received on debt issuances are reported as another financing source while discounts on debt issuances are reported as another financing use. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. Related principal and interest payments are reported as expenditures in such statement.

Net Position
Net Position in the government-wide statements is displayed in three categories: (1) net investment in capital assets, (2) restricted for debt service or (3) unrestricted. Net invested in capital assets consist of capital assets reduced by accumulated depreciation and by any outstanding debt/liabilities. Restricted net position represents the assets restricted by the District’s bond covenants net of accrued interest payable. Unrestricted net position consists of all net position that does not meet the definition of either of the other two categories.

Fund Balances
The District establishes fund balance classifications that comprise a hierarchy based primarily on the extent to which a government is bound to observe constraints imposed upon the use of resources reported in governmental funds. The District’s fund balances classifications are: Non-spendable, Restricted, Committed, Assigned and Unassigned. These classifications reflect not only the nature of funds, but also provide clarity to the level of restrictions placed upon fund balance. Fund balances can have different levels of restraint, such as external versus internal compliance requirements. Unassigned fund balance is a residual classification within the General Fund. The General Fund should be the only fund that reports a positive unassigned balance. In all other funds, unassigned is limited to negative residual fund balance. For further details of various fund balance classifications refer to Note 8.

Net Position Flow Assumption
At times the District will fund outlays for a particular purpose from both restricted and unrestricted resources. In order to calculate the amount to report as restricted-net position and unrestricted-net position in the government-wide financial statements, a flow assumption must be made about the order in which resources are considered to be applied. It is the District’s policy to consider restricted-net position to have been depleted before unrestricted-net position is applied.

Fund Balance Flow Assumption
At times the District will fund outlays for a particular purpose from both restricted and unrestricted resources (total of committed, assigned and unassigned fund balance). In order to calculate the amount to report as restricted, committed, assigned and unassigned fund balance in the governmental fund financial statements a flow assumption must be made about the order in which resources are considered to be applied. It is the District’s policy to consider restricted fund balance to have been depleted before using any of the components of unrestricted fund balance. Further, when the components of the unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last.

NOTE 1 - REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Risk Management
The District is exposed to various risks of loss related to torts; theft, damage, and destruction of assets; errors and omissions; and natural disasters. Insurance coverage for such losses is purchased from third-party carriers. The financial impact of the District's risk management activities are reported in the General and Enterprise (Country Club) funds. Liabilities are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. There was no such type of occurrence during fiscal 2020.
No accrual has been provided for claims and incidents not reported to the insurer. Claims made have not exceeded the insurance coverage for the current year.

Use of Estimates
The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenditures during the reporting period. Actual results could differ from those estimates.

NOTE 2 - CASH (DEPOSITS) AND CASH EQUIVALENTS

Cash and cash equivalents

Cash and cash equivalents held at September 30, 2020 by each governmental major fund consisted of:

 	GENERAL		DEBT SERVICE
 	2019		ACQUISITION AND
  CONSTRUCTION	
 	TOTAL		
Demand Deposits	$	242,401	$	1,661,975	$	3,738,489	$	5,642,865	

All deposits with banks are entirely insured by Federal Depository Insurance. All District depositories are banks designated by the Florida State Treasurer as qualified public depositories. Chapter 280 of the Florida Statutes “Florida Security for Public Deposits Act” provides procedures as discussed below for public depositories to ensure public monies in banks are collateralized with the Treasurer as agent for the public entities.

Financial institutions qualifying as public depositories shall deposit with the Treasurer eligible collateral having a market value equal to or in excess of the average daily balance of public deposits times the depository collateral pledging level required pursuant to Chapter 280 as computed and reported monthly or 25 percent of the average monthly balance, whichever is greater. The Public Deposit Security Trust Fund has a procedure to allocate and recover losses in the event of a default or insolvency. When public deposits are made in accordance with Chapter 280, no public depositor shall be liable for any loss thereof. Chapter 280 defines deposits as demand deposit accounts, time deposit accounts, and certificates of deposit.

At September 30, 2020, the District’s bank balance and carrying amounts were $7,094,090 and $5,642,865 respectively. District’s deposits at year-end are considered 100% insured for custodial credit risk purposes.

NOTE 3 - CAPITAL ASSETS, NET

Capital asset activity for the fiscal year ended September 30, 2020 was as follows:

	BEGINNING
     BALANCE			
    ADDITIONS 	TRANSFERS
   (DELETIONS) 		ENDING
     BALANCE		
Governmental activities: (None for the year)	$		0	$		0	$		0	$		0	
Business-type activities:									
Capital assets, not being depreciated:
Land
Construction in progress
Total capital assets, not being depreciated	
$

0
0
0	
$	
0
          89,947
          89,947	
$ 8,525,000
 	0
 	8,525,000	
$ 8,525,000
 	89,947
 	8,614,947	
Capital assets, being depreciated: Golf course and improvements Buildings
Machinery and equipment (incl. capital leases) Tennis courts
Total capital assets being depreciated	
0
0
0
 	0
 	0	
278,769
144,759
2,635,065
 	0
 	3,058,593	
4,836,274
3,026,454
(85,308)
 	233,977
 	8,011,397	
5,115,043
3,171,213
2,549,757
 	233,977
   11,069,990	
Less accumulated depreciation for: Golf course and improvements Buildings
Machinery and equipment (incl. capital leases) Tennis courts
Total accumulated depreciation	
0
0
0
 	0
 	0	
(279,695)
(95,635)
(379,418)
 	(28,663)
 	(783,411)	
0
0
78,777
 	0
 	78,777	
(279,695)
(95,635)
(300,641)
 	(28,663)
 	(704,634)	
Total capital assets, being depreciated, net	 	0	 	2,275,182	 	8,090,174	   10,365,356	
Business-type activities capital assets, net	$		0	$ 	2,365,129	$ 16,615,174	$ 18,980,303	

On November 22, 2019, the District acquired through designated bond issuance proceeds for $16,750,000 certain recreation facilities consisting of a 27-hole golf course and practice facilities, a pro shop, a clubhouse with kitchen, administrative and community facilities, tennis courts, a croquet court, a fitness center, a golf cart storage and other facilities with parcels of land within the University Park Country Club. Consequently, the Enterprise (Country Club) Fund depreciation amount of $783,411 was computed from this acquisition date of the golf course and other related amenities/equipment on November 22, 2019 through September 30, 2020.
These capital assets are included as transfers denoted above from the Acquisition and Capital Fund net of other capital asset activity during the fiscal year.

NOTE 4 - LONG-TERM OBLIGATIONS AND PLEDGED FUTURE REVENUES

Long term obligations are comprised of limited obligations bonds (special assessment debt), Series 2019 bond premium loans, capital leases and loans.

Changes in long-term liability activity for the fiscal year ended September 30, 2020 was as follows:

	BALANCE SEPTEMBER 30,
 	2019		
 	ADDITIONS		
   (REDUCTIONS) 	BALANCE SEPTEMBER 30,
 	2020		DUE WITHIN
 	ONE YEAR		
Governmental activities:
Series 2019 Bonds	
$	0	
$	24,000,000	
$	0	
$	24,000,000	
$	515,000	
Plus: bond premium	0	83,131	(2,359)	80,772	0	
Business-type activities:
Capital leases	
0	
1,990,161	
(154,493)	
1,835,668	
447,124	
Due to PBM - “PPP” Loan	0	855,783	0	855,783	855,783	
Equipment loans	 	0	 	70,061	 	(18,605)	 	51,456	 	20,931	
	$	0	$	26,999,136	$	(175,457)	$	26,823,679	$	1,838,838	
Government Activities						

Special Assessment Debt with Governmental Commitment

Special assessment debt with governmental commitment is not backed by the full faith and credit of the District but is payable solely from the secured lien on and pledge of (non-ad valorem assessments) of the properties benefited by the improvements.

Non-Ad Valorem Assessment Bonds, Series 2019

The District adopted Resolution No. 2019-20 on February 8, 2019 and Resolution No. 2020-02 as ratified and reaffirmed on November 4, 2019 (the “Resolution”), and a Master Trust Indenture (the “Indenture”, as amended) on November 1, 2019, authorizing the issuance of Non-Ad Valorem Revenue Assessment Bonds, Series 2019, in one or more Series in the aggregate. Total bonds issued of $24,000,000 were used to finance the cost of acquiring recreation facilities known as the “University Park Country Club", make certain defined improvements to such facilities and to fund the 2019 bond reserve requirements, the 2020 interest payments and various issuance costs including municipal bond insurance. The Bonds are secured by a covenant to budget and appropriate legally available non-ad valorem revenues of the District.

The Series 2019 Bonds is a tax-exempt issuance for $24,000,000 bearing interest at rates from 2.5% to 3.5%. Interest is paid semiannually on each May 1 and November 1 and principal is paid annually each May 1.
Principal payments start May 1, 2021 totaling $515,000 with the final principal payment on May 1, 2050.

The Series 2019 Bonds are subject to optional redemption prior to their stated date of maturity beginning May 1, 2029. The Series 2019 Bonds maturing on May 1, 2031 are subject to mandatory sinking fund redemption beginning May 1, 2030 and thereafter as defined in the Indenture. The Series 2019 Bonds are subject to extraordinary mandatory redemption prior to maturity, in whole or in part on any date at the redemption price of 100% of the principal amount plus accrued interest to the redemption date as denoted in the Indenture.

NOTE 4 - LONG-TERM OBLIGATIONS AND PLEDGED FUTURE REVENUES (Continued)

Non-Ad Valorem Assessment Bonds, Series 2019 (Continued)

The Bond Indenture required establishment of certain funds. The District’s key major funds established upon issuance were: (1) Debt Service Fund and (2) Acquisition and Construction Fund. The Indenture requires a reserve requirement for the Series 2019 Bonds at an amount (calculated from time to time) equal to maximum annual debt service on the Series 2019 Bonds outstanding, initially of $1,270,244. The Series 2019 Bonds reserve requirement was met for fiscal year ended September 30, 2020.

In addition, the District has established in these accompanying financial statements a Proprietary Fund- Enterprise (Country Club) Fund for the University Park Country Club acquisition.

At September 30, 2020, the scheduled future debt service requirements on the District’s outstanding Series
2019 Bonds are as follows:
YEAR ENDING
  SEPTEMBER 30	

 	PRINCIPAL		
                                SERIES 2019 BONDS	

 	INTEREST		

 	TOTAL		
2021	$	515,000	$	754,050	$	1,269,050	
2022	530,000	739,888	1,269,888	
2023	540,000	725,313	1,265,313	
2024	555,000	710,463	1,265,463	
2025	570,000	696,586	1,266,586	
2026 - 2030	3,075,000	3,260,900	6,335,900	
2031 - 2035	3,535,000	2,801,600	6,336,600	
2036 - 2040	4,120,000	2,221,563	6,341,563	
2041 - 2045	4,835,000	1,502,050	6,337,050	
2046 - 2050	 	5,725,000	 	615,125	 	6,340,125	
Total	$	24,000,000	$	14,027,538	$	38,027,538	
Business Type Activities				
Capital Lease Obligations				

The District entered into various capital lease agreements for the purchase of certain golf course equipment and office equipment. Principal and interest payments are due monthly. As of September 30, 2020, the principal amounts outstanding were $1,835,668 and the net book value of the equipment was $1,801,491. Amortization of leased equipment under capital assets is included with depreciation expense. The interest rates on the leases range from 4.00% to 5.02%. The lease agreements include a provision that upon the occurrences of any event of default, the lessor may retake possession of the equipment under lease.

Capitalized capital assets included in equipment and the related accumulated depreciation as of September 31, 2020 were as follows:
Cost	$	1,991,601
Accumulated depreciation	$	190,110

NOTE 4 - LONG-TERM OBLIGATIONS AND PLEDGED FUTURE REVENUES (Continued)

Business Activities

Capital Lease Obligations (Continued)

The following is a schedule by years of future minimum lease payments under the capital leases together with the present value of minimum lease payments as of September 30, 2020:

Year Ending
 December 31, 	 	AMOUNT		
2021	$	539,894	
2022	539,965	
2023	540,961	
2024	405,621	
2025	 	18,897	
Minimum lease payments	2,045,338	
Less: Amount representing interest	 	(209,670)	
Total present value of minimum lease payments	1,835,668	
Current maturities of capital lease obligations	 	447,124	
Long term portion of capital lease obligations	$	1,388,544	
Equipment Loans (Vendor Financed)		
The District has noninterest-bearing equipment loans collateralized by equipment with monthly payments of approximately $1,746. These loans mature in fiscal years 2022 through 2023. There were borrowings under these loans as of September 20, 2020 totaling $51,456. The following is a schedule by years of future principal payments under these loans as of September 30, 2020:

Year Ending
 December 31, 	
 	AMOUNT		
2021	$	20,931	
2022	20,349	
2023	 	10,176	
Total principal payments	51,456	
Current maturities of equipment loans	 	20,931	
Long term portion of equipment loans	$	30,525	

NOTE 4 - LONG-TERM OBLIGATIONS AND PLEDGED FUTURE REVENUES (Continued)

Coronavirus/CARES Act

During fiscal 2020, a health care pandemic, coronavirus (“COVID-19”), occurred in the United States and internationally. In response to the crisis, the federal, state, and municipal governments have enacted various policies to curtail group gatherings until the risk has diminished. The District took measures to protect its employees and members/citizens during this time, including the suspension and closure of certain operations. As a result of the pandemic, the government signed the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). The CARES Act supports certain employers that operated a business during 2020 and retained employees, despite experiencing economic hardship related to COVID-19, with the opportunity to apply for a specific Paycheck Protection Program loan (“PPP” loan) administered through the Small Business Administration (“SBA”). PBM, on behalf of the District, applied for and received PPP loan funding totaling
$855,783 on May 5, 2020.

PBM lent the PPP loan proceeds to the District mirroring the same terms of the SBA PPP loan terms and provisions. The terms of this loan provide interest calculated at a rate of 1% and a two-year repayment schedule (final payment due on May 5, 2022) with deferment of any payments owed on the loan for the first 6 months following receipt of the loan proceeds. However, in June 2020, the Paycheck Protection Flexibility Act of 2020 extended the deferral period for the loan payments to either (1) the date that the SBA remits the borrower’s loan forgiveness amount to the lender, or (2) 10 months after the end of the borrower’s loan forgiveness period if the borrower does not apply for forgiveness.

Further, the provisions of the PPP loan provide for potential forgiveness of all or a portion of this loan if the respective company can demonstrate that it used the funds for payroll and other specific expenses as defined by the PPP loan program. If the loan is either partially or fully forgiven, the amount of the loan provided to the District will be forgiven and recorded as income when such forgiveness is received. Therefore, until the loan is forgiven, the full amount of the PPP loan has been presented as an outstanding loan in the applicable financial statements as of September 30, 2020. No interest expense of significance was incurred on this loan for the year ended September 30, 2020. Subsequent to year-end, PBM formally applied for the loan forgiveness and received confirmation from their local institution that the SBA approved their loan forgiveness application.
Consequently, effective May 2021, PBM approved to make the appropriate entries needed to permit the use of such funds to the District.

NOTE 5 - INTERFUND TRANSACTIONS

Transfers of resources from a fund receiving revenue to the fund through which the resources will be expended are recorded as transfers and are reported as other financing sources (uses) in the governmental or proprietary funds. Non-recurring or non-routine transfers of equity between funds are also reported as transfers. These transfers were made in the year from the Acquisition and Construction Fund to the Enterprise (Country Club) Fund for specific District funds expended from designated bond proceeds to purchase the University Park Country Club and related amenities and to make certain capital improvements as provided in Series 2019 Bond documents. Following is a summary of transfers individually by Major Funds and the Enterprise (Country Club) Fund for the year and also between governmental activities and business-type activities in the government-wide statement of activities:

Major Funds:
General Fund
Acquisition and Construction Fund Proprietary Fund:
Enterprise (Country Club) Fund	   TRANSFERS IN 

$	100,000
0

 	17,272,836	 TRANSFERS OUT

$	0
(17,272,836)

 	(100,000)	
Total Interfund Transfers	$	17,372,836	$  	(17,372,836)	

Activity between funds that is representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as "due to/from other funds". There were amounts due from and to other funds at September 30, 2020.

NOTE 6 - RETIREMENT PLAN

The District offers a 401(k) retirement plan through its management company for the benefit of its employees. Each eligible employee is permitted to make a contribution to the plan in amounts as provided by Internal Revenue Service regulations. The current plan requires no matching contributions by the District of the employee’s deferral amount. Consequently, there was no contribution expense for 2020.

NOTE 7 - MANAGEMENT CONTRACTS

The District contracted with PFM Group Consulting, LLC, a management company, to perform management advisory services, which included financial and accounting advisory services. One employee of the management company serves as Secretary of the District. Under the agreement, the District compensates the management company for management, accounting, financial reporting, computer and other administrative costs. Management fees totaling $75,000 and Accounting fees totaling $50,000 were paid for the year ending September 30, 2020. As of October 1, 2020 the Accounting services under this contract were terminated.

NOTE 7 - MANAGEMENT CONTRACTS (Continued)

On November 22, 2019, the District entered into a two-year country club management agreement with Park Boulevard Management, LLC, who is responsible for the management, operation, organization, administration and maintenance of the University Park Country Club in accordance with the terms of the agreement. This agreement expires on September 30, 2021, unless the District exercises its two-year renewal option. There were no required fee charges for these management services during the year.

The District entered into a Collection Agreement with PFM Grouping Consulting, LLC to act as collection agent (the “Collection Agent”) to monitor payments of the Series 2019 Non- Ad Valorem Assessments. The Collection Agent is required to maintain a lien book for the assessed properties evidencing the requirement of payment of the Series 2019 Non-Ad Valorem Assessments including any prepayment of the such assessments on subjected properties. The Collection Agent will be authorized to release the applicable lien upon receipt of each Series 2019 Non-Ad Valorem Assessment. The Collection Agreement established procedures for the Collection Agent to monitor properties subject to the assessment lien and to assure payment is being delivered to the Trustee.  Total Collection Agent fees paid for 2020 was $5,000.

NOTE 8 - FUND BALANCE DISCLOSURE

In accordance with GASB No. 54, the District classifies governmental fund balances (as applicable) as follows:

Non-spendable - includes fund balance amounts that cannot be spent either because they are not in spendable form or because of legal or contractual requirements.

Restricted - includes fund balance amounts that are constrained for specific purposes which are externally imposed by providers, such as creditors, lenders or amounts constrained due to constitutional provisions or enabling legislation.

Committed - includes fund balance amounts that are constrained for specific purposes that are internally imposed by the District through a formal action of the highest level of decision-making authority.

Assigned - includes fund balance amounts that are intended to be used for specific purposes that are neither considered restricted or committed. Fund balance may be assigned by the Supervisors to assign amounts for specific purpose.

Unassigned - includes residual positive fund balance within the General Fund which has not been classified within the other above classifications. Unassigned fund balance may include negative balances for any governmental fund is expenditures exceed amounts restricted, committed, or assigned for those specific purposes.

NOTE 8 - FUND BALANCE DISCLOSURE (Continued)

The District uses restricted amounts to be spent first when both restricted and unrestricted fund balance is available unless there are legal documents and/or contracts that prohibit doing this, such as grant agreements requiring certain dollars spent. Additionally, the District would first use committed, then assigned, and lastly unassigned amounts of unrestricted fund balance when expenditures are made.

A schedule of the District’s government fund balances at September 30, 2020 is as follows:

 	MAJOR FUNDS	
	
 	GENERAL		DEBT SERVICE
 	2019		ACQUISITION AND
  CONSTRUCTION  	TOTAL GOVERNMENTAL
 	FUNDS		
Non-spendable	$	10,000	$	0	$	0	$	10,000	
Restricted	0	1,661,983	3,657,621	5,319,604	
Committed	0	0	0	0	
Assigned	0	0	40,434	40,434	
Unassigned	 	208,363	 	0	 	0	 	208,363	
Total	$	218,363	$	1,661,983	$	3,698,055	$	5,578,401	

NOTE 9 - SUBSEQUENT EVENTS

In preparing the financial statements, the District has evaluated events and transactions for potential recognition or disclosure through June 4, 2021, the date that the financial statements were available to be issued. The following matters were identified as a subsequent event:

Subsequent to September 30, 2020, the District paid interest in November 2020 totaling $377,025 for the Series 2019 Bonds.

The District was forgiven of the loan from Park Boulevard Management, LLC associated with the SBA’s Paycheck Protection Program loan (See Note 4).

In May 2021, the District paid principal and interest of $515,000 and $377,025, respectively, on the Series 2019 Bonds.

NOTE 10 - LITIGATION AND DISPUTES

The District deals with various legal matters involving District residents and certain government agencies arising in the ordinary course of its governmental activities and services. The District believes that these various legal matters will not adversely affect the overall District’s financial position. The outcome of any legal matters is uncertain and thus it is not possible to predict with any degree of certainty the outcome or result of any such litigation nor is it possible to predict with any degree of certainty the impact of any such litigation on the District.
- 37 -

PART II.	REQUIRED SUPPLEMENTARY INFORMATION OTHER THAN MD&A

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - GENERAL FUND

FOR THE YEAR ENDED SEPTEMBER 30, 2020

 	GENERAL FUND	

REVENUES:
Non-ad valorem assessments Other revenue, surplus and interest
Total Revenues

EXPENDITURES:
Current:
General government Capital outlay Contingency/revenue reserve Debt service:
Principal retirement Interest	

 	BUDGETED AMOUNTS	
    ORIGINAL		 	FINAL	

$	0	$	0
 	394,519	 	394,519
 	394,519	 	394,519

511,530	527,830
0	0
24,000	7,700

0	0
 	0	 	0	

$	

ACTUAL
     AMOUNT	

1,297
           100,000
           101,297

460,381
0
0

0
                      0	VARIANCE WITH FINAL BUDGET POSITIVE
   (NEGATIVE)

$	1,297
 	(294,519)
 	(293,222)

67,449
0
7,700

0
 	0	
Total Expenditures	 	

(Deficiency) excess of revenues (under) over expenditures

OTHER FINANCING SOURCES (USES):
Transfers in (out)	 	

Net Change in Fund Balance	$	 Fund Balance, September 30, 2019
Fund Balance, September 30, 2020	535,530

(141,011)

141,011

0	

$		           535,530

(141,011)

           141,011

0	

$		           460,381

(359,084)

           100,000

(259,084)

           477,447

218,363	

$		             75,149

(218,073)

           (41,011)

(259,084)	

The accompanying notes are an integral part of these financial statements.
- 38 -

SCHEDULE OF REVENUES AND DEPARTMENAL EXPENSES - BUDGET AND ACTUAL PROPRIETARY FUND: ENTERPRISE (UNIVERSITY PARK COUNTRY CLUB)
FOR THE YEAR ENDED SEPTEMBER 30, 2020

 	ENTERPRISE (COUNTRY CLUB) FUND	

OPERATING REVENUES:
Membership dues Green/cart fees and other Restaurant revenues Tennis and fitness fees Miscellaneous
Total operating revenues					

   

$	VARIANCE	
						WITH FINAL	
						BUDGET	
		         BUDGETED 	AMOUNTS		ACTUAL		POSITIVE	
		    ORIGINAL		 	FINAL		 	AMOUNT			(NEGATIVE)	
	$	3,200,000	$	3,200,000	$	2,788,552		(411,448)	
		2,877,887	2,877,887	2,400,795		(477,092)	
		2,152,912	2,152,912	1,450,614		(702,298)	
		89,485	89,485	47,137		(42,348)	
		           137,926	 	137,926	 	22,153		         (115,773)	
		        8,458,210	 	8,458,210	 	6,709,251		      (1,748,959)	
OPERATING EXPENSES:					
Golf course maintenance	2,559,739	2,559,739	1,804,881	754,858	
Golf and pro shop operations	1,161,609	1,161,609	816,609	345,000	
Restaurant operations	2,534,927	2,534,927	1,961,940	572,987	
Tennis and fitness	343,640	343,640	256,627	87,013	
Administrative and general	1,482,801	1,482,801	1,158,624	324,177	
Insurance	0	0	164,763	(164,763)	
Depreciation and amortization	 	0	 	0	 	783,411	 	(783,411)	
Total operating expenses	 	8,082,716	 	8,082,716	 	6,946,855	 	1,135,861	
Operating income (loss)		375,494	375,494	(237,604)		(613,098)	
NONOPERATING REVENUES:
Loss on disposal of equipment Initiation fees
Interest expense
Total nonoperating revenues	
0	
0	
(31,516)	
(31,516)	
	0	0	53,575	53,575	
	 	0	 	0	 	(51,673)	 	(51,673)	
	 	0	 	0	 	(29,614)	 	(29,614)	
CONTRIBUTIONS AND TRANSFERS:
Capital contributions Transfers in (out)
Total contributions and transfers	
0	
0	
17,272,836	
17,272,836	
	 	(375,494)	 	(375,494)	 	(100,000)	 	275,494	
	 	(375,494)	 	(375,494)	 	17,172,836	 	17,548,330	
Change in net position	$		0	$		0	16,905,618	$		16,905,618	

Net Position, Beginning (November 22, 2019)	 	0
Net Position, September 30, 2020	$	16,905,618 The accompanying notes are an integral part of these financial statements.
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PART III.	OTHER REPORTS

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

June 4, 2021

To the Board of Supervisors
UNIVERSITY PARK RECREATION DISTRICT
University Park, Florida 34201

We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, business – type activities and each major fund of UNIVERSITY PARK RECREATION DISTRICT, as of and for the year ended September 30, 2020, and the related notes to the financial statements, which collectively comprise the UNIVERSITY PARK RECREATION DISTRICT’S basic financial statements, and have issued our report thereon dated June 4, 2021.

Internal Control Over Financial Reporting

In planning and performing our audit of the financial statements, we considered UNIVERSITY PARK RECREATION DISTRICT’S internal control over financial reporting (internal control) to determine the auditing 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 UNIVERSITY PARK RECREATION DISTRICT’S internal control. Accordingly, we do not express an opinion on the effectiveness of UNIVERSITY PARK RECREATION DISTRICT’S internal control.

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

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

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To the Board of Supervisors
UNIVERSITY PARK RECREATION DISTRICT June 4, 2021

Compliance and Other Matters

As part of obtaining reasonable assurance about whether UNIVERSITY PARK RECREATION 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

rv4 t

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

Certified Public Accountants Naples, Florida

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INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE WITH SECTION 218.415, FLORIDA STATUTES

June 4, 2021

To the Board of Supervisors
UNIVERSITY PARK RECREATION DISTRICT
University Park, Florida 34201

We have examined UNIVERSITY PARK RECREATION DISTRICT’s compliance with Section 218.415, Florida Statutes, regarding the investment of public funds during the year ended September 30, 2020. UNIVERSITY PARK RECREATION DISTRICT’s management is responsible for compliance with those requirements. Our responsibility is to express an opinion on UNIVERSITY PARK RECREATION 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. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether UNIVERSITY PARK RECREATION DISTRICT complied, in all material respects, with those requirements. An examination involves performing procedures to obtain evidence about whether UNIVERSITY PARK RECREATION DISTRICT complied with those requirements. The nature, timing, and extent of the procedures selected depend on our judgment, including an assessment of the risks of material noncompliance, whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion. Our examination does not provide a legal determination on UNIVERSITY PARK RECREATION DISTRICT’s compliance with specified requirements.

In our opinion, UNIVERSITY PARK RECREATION DISTRICT complied, in all material respects, with the aforementioned requirements for the year ended September 30, 2020.

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

PHILLIPS HARVEY GROUP, P.A.
Certified Public Accountants Naples, Florida

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MANAGEMENT LETTER - LOCAL GOVERNMENT ENTITIES

June 4, 2021

To the Board of Supervisors
UNIVERSITY PARK RECREATION DISTRICT
University Park, Florida 34201 Board of Supervisors:
Report on the Financial Statements

We have audited the financial statements of UNIVERSITY PARK RECREATION DISTRICT, Florida, as of and for the fiscal year ended September 30, 2020 and have issued our report thereon dated June 4, 2021.

Auditor’s Responsibility

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

Other Reports and Schedule

We have issued our Independent Auditor’s Report on Internal Control over Financial Reporting and Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance with Government Auditing Standards; and Independent Accountant’s Report on an examination conducted in accordance with AICPA Professional Standards, 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 4, 2021 should be considered in conjunction with this management letter.

Prior Audit Findings

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

Financial Condition and Management

Sections 10.554(1)(i)5.a and 10.556(7), Rules of the Auditor General, requires that we apply appropriate procedures and report the results of our determination as to whether or not UNIVERSITY PARK RECREATION DISTRICT has met one or more of the conditions described in Section 218.503(1), Florida Statutes, and identification of the specific condition(s) met. In connection with our audit, we determined that UNIVERSITY PARK RECREATION DISTRICT did not meet any of the conditions described in the Section 218.503(1), Florida Statutes.
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To the Board of Supervisors
UNIVERSITY PARK RECREATION DISTRICT June 4, 2021

Financial Condition and Management (continued)

Pursuant to Sections 10.554(1)(i)5.c. and 10.556(8), Rules of the Auditor General, we applied financial condition assessment procedures. It is management's responsibility to monitor UNIVERSITY PARK RECREATION DISTRICT's financial condition, and our financial condition assessment was based in part on representations made by management and the review of financial information provided by same.

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

Annual Financial Report

Section 10.554(1)(i)5.b. and 10.556(7), Rules of the Auditor General, require that we apply appropriate procedures and report the results of our determination as to whether the annual financial report for UNIVERSITY PARK RECREATION DISTRICT for the fiscal year ended September 30, 2020, filed with the Florida Department of Financial Services pursuant to Section 218.32(1)(a), Florida Statutes, is in agreement with the annual financial audit report for the fiscal year ended September 30, 2020. In connection with our audit, we determined that these two reports were in agreement.

Additional Matters

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

Purpose of this Letter

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

Certified Public Accountants Naples, Florida

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