University Park Recreation District
3501 Quadrangle Blvd., Suite 270, Orlando, FL 32817	Phone: 407-723-5900 Fax: 407-723-5901
http://universityparkrd.com/

The Regular Meeting of the Board of Supervisors of University Park Recreation District will be held on Friday, April 8, 2022, at 1:00 p.m. at the Lakeside Room located 7671 The Park Blvd, University Park, FL 34201.

BOARD OF SUPERVISORS’ MEETING AGENDA

Organizational Matters
Call to Order
Roll Call to Confirm Quorum
Public Comment Period [for any members of the public desiring to speak on any proposition before the Board]
Administrative Matters

Consideration of the Minutes of the February 11, 2022, Board of Supervisors Meeting
Consideration of the Minutes of the March 29, 2022, Board of Supervisors Workshop Meeting

Staff Report Matters
District Counsel
District Manager
Club Management
Management Discussion & Analysis Report
Monthly Board of Supervisors Comments
Business Matters
Update of the Strategic Planning of Phase II of the Master Plan Concept
Review and Acceptance of FY 2021 Audit Report
District Financial Matters
Ratification of Payment Authorization # 68 & 69

Date	Meeting Type	Time	Location	Note	
April 19, 2022	Town Hall Meeting	2:00- 4:00
PM	University Park	Lakeside Room	
April 27, 2022	Town Hall Meeting	2:00- 4:00
PM	University Park	Lakeside Room	
May 13, 2022	BOS Meeting	1:00 PM	University Park	Lakeside Room	

May 31, 2022	Workshop Meeting	1:00 PM	Lakeside Room	Lakeside Room	

Supervisor Requests

Adjournment

University Park Recreation District

Consideration of the Minutes of the February 11, 2022, Board of Supervisors Meeting

UNIVERSITY PARK RECREATION DISTRICT BOARD OF SUPERVISORS MEETING
Friday, March 11, 2022
1:00 p.m.
Community Center
8301 The Park Boulevard, University Park, FL 34201

Board Members present at roll call in person or via phone: James Case	Chairperson
Bill DiPaolo	Vice Chairperson
Karen Pagano	2nd Vice Chairperson
Steve Ludmerer	Treasurer
Sally Dickson	Assistant Secretary

Also, Present in person or via phone:
Vivian Carvalho	District Manager - PFM Group Consulting LLC Venessa Ripoll	District Manager-PFM Group Consulting LLC (via phone)
Mark Barnebey	District Counsel- Blalock Walters Law Firm
Curtis Nickerson	Director of Properties & Facilities- Country Club John Fetsick	General Manager – Country Club
Various Members of the General Public

FIRST ORDER OF BUSINESS	Organizational Matters Call to Order and Roll Call
The meeting was called to order at 1:00 p.m. by Mr. Case. Ms. Ripoll confirmed quorum to proceed with the meeting. Those in attendance are outlined above.

Opening Comments

Mr. Case announced the public comment period will be open in the beginning and at the end of the meeting.

Public Comments

There were no public comments.

Consideration of the Minutes of the February 1, 2022 Board of Supervisors Workshop Meeting.

Consideration of the Minutes of the February 11, 2022 Board of Supervisors Workshop Meeting.

Consideration of the Minutes of the February 23, 2022 Board of Supervisors Workshop Meeting.

Mr. DiPaolo requested the Board approve all Minutes with one motion. The Board reviewed the Minutes of the February 1, 2022 Board of Supervisors Workshop Meeting, the February 11, 2022 Board of Supervisors Meeting, and the February 23, 2022 Board of Supervisors Workshop Meeting. Mr. Case requested a motion to approve.

ON MOTION by Ms. Dickson, seconded by Mr. Ludmerer, with all in favor, the Board approved the Minutes of the February 1, 2022 Board of Supervisors Workshop Meeting, the February 11, 2022 Board of Supervisors Meeting, and the February 23, 2022 Board of Supervisors Workshop Meeting.

THIRD ORDER OF BUSINESS	Staff Report Matters

District Counsel - Update of the Charter and Statutory Amendment Changes
Mr. Ludmerer asked about the wording changes included in the Charter Amendments. Mr. Barnebey replied he is aware of the typo in the document and the typo is being corrected. The updated version of the Charter Amendments will be sent to the Board. Mr. Barnebey stated he spoke with County staff about the Charter Amendments and the document will soon go to the County Commission for approval. There is not a definite date yet when the Charter Amendments will be approved, but it is expected the County will take action in late April or early May.

District Manager – Mr. Case announced the District Manager is in route to the Meeting and will give the District Manager report upon arrival.

the Management Discussion and Analysis Report.

Staffing and Human Resources - Mr. Fetsick announced the hiring of Milissa Martorano as the new Director of Food and Beverage. Ms. Martorano has been on the management team for a couple of weeks and is already an excellent addition to the team. It is expected Ms. Martorano will bring fresh ideas and talent to the District.

Mr. Fetsick announced the hiring of Elizabeth “Liz” Gutierrez, a licensed personal trainer, who will be rotating between administrative duties and providing personal training. Ms. Gutierrez is expected to enhance the Fitness experience provided to members.

Mr. Fetsick announced the hiring of Ethan Jarrell as the new Member Billing Specialist. Mr. Jarrell was hired a month ago as the result of the retirement of Marie Lough. There were thanks to Ms. Lough for her 18 years of dedicated service to University Park Country Club.

Advisory Groups – Mr. Fetsick announced the names of residents and staff who will comprise the established Advisory Groups. The Advisory Groups are in the categories of Racquets, Social, Golf Operations, and Fitness and Wellness. Each group will be chaired by Rico Alcala, Director of Member Experience. The inaugural meetings for the Advisory Groups will be next week. The goal of the Advisory Groups is to enhance the member experience, identify areas of improvement, enhance the social fabric of each amenity, and serve as communication conduits. There will be a volunteer Co-Chair and Secretary from each Advisory Group that will be identified at the inaugural meetings. It is expected for those identified to take Minutes for each meeting.

Food and Beverage – Mr. Fetsick stated the Varsity Club and Boardwalk Café have reopened from Wednesday-Friday and both have been well received by the Membership. There have been staffing issues, but the Club has increased the number of staff during operating hours. The operating hours have been changed from 2pm-7pm to 3pm-8pm, with food being served from 3pm-6pm. Dinner and Member Events continue to be very well attended. The Country Club management team is closely monitoring capacity issues and adjusting when able. There are plans to hire an additional Sou Chef and additional Cook. Mr. DiPaolo asked about reservations and turnover on tables. Mr. Fetsick stated Ms. Martorano has been tasked with monitoring staffing and reviewing the reservations process.

Mr. Fetsick stated there will be Tuesday Food Trucks and Tunes events, where there will be 3 food trucks and an ice cream truck available for residents and guests starting next week. There will also be live music during the event.

Golf – Mr. Fetsick stated golf operations continue to be extremely busy with tee sheets selling out and the Country Club being more aggressive on rates. The Board was presented with a table illustrating the golf rates and how they have changed. There has been no rate resistance

Tennis and Fitness – Mr. Fetsick stated the University Park Country Club Men’s and Women’s tennis teams are in their final weeks of the season. Upon the conclusion of league play, the tennis department will be hosting both a Men’s and Women’s Tennis Invitational on Saturdays, March 19th and April 2nd.

Mr. Fetsick stated pickleball interest is continuously growing. The District recently invested in a pickleball machine and there was a tutorial given to interested pickleball players. The addition of pickleball courts should begin by April 15th and should take about 8-10 weeks to complete. The District has submitted permit applications and is now awaiting County approval.

Mr. Fetsick announced the District has introduced a cycling and walking club. There are plans to send an email to the membership so interest in the clubs will grow. There are plans to have food and beverage after cycling and walking club events.

Membership and Membership activity – Mr. Fetsick stated the Country Club has begun to sell 2022 Summer Memberships. With increased annual membership sales, the Country Club is evaluating a potential cap on Summer Memberships so annual members are not negatively impacted by overselling partial year memberships. The Board was presented with a table outlining the membership sales.

Mr. Fetsick presented a financial statement of operations and highlighted those areas that are over budget. There was also a Revenue Flash Report presented to the Board. As the revenue increases, expenses have also increased. Ms. Dickson asked about credit card fees and inquired about charging a 3% credit card fee to be included in the cost of Country Club rates. Mr. Fetsick replied he was unsure about adding the 3% fee but understands that because the revenue is increasing, the credit card fee charged to the Country Club would also increase.

Mr. Fetsick confirmed he would send the Management Discussion and Analysis report to the Board.

Business Matters

Review and Consideration of Resolution 2022-04, Authorization Club Management to Issue Workorder on Improvements for Holes 19-27

Mr. Barnebey outlined the Resolution as the Board reviewed.

Review and Consideration of Resolution 2022-05, Designating the Primary Administrative Office, Principal Headquarters and Local District Office

Mr. Barnebey mentioned the Board should pay close attention to Sections 2 and 3 of the Resolution that lists the District’s principal headquarters and local records office. Ms. Ripoll explained the Resolution is outlining the new address for PFM, but she was unsure of the address to list in Sections 2 and 3. The University Park Country Club address was provided, and Ms. Ripoll stated she would update the Resolution with that address for Section 2, which identifies the principal headquarters. Ms. Carvalho joined the meeting via phone and confirmed the only section that would not list the address for PFM is Section 2. The local records office, listed in Section 3, will remain the PFM address.

ON MOTION by Mr. DiPaolo, seconded by Ms. Dickson, with all in favor, the Board approved Resolution 2204-05, Designating the Primary Administrative Office, Principal Headquarters and Local District Office.

Review and Consideration of Resolution 2022-06, Designating a Registered Agent and Registered Office of the District

Ms. Carvalho joined the meeting in person and explained PFM will remain the registered agent and registered office and the Resolution updates the address for PFM.

ON MOTION by Mr. DiPaolo, seconded by Ms. Pagano, with all in favor, the Board approved Resolution 2022-06, Designating a Registered Agent and Registered Office of the District.

Discussion and Presentation of Future Phase 2 Projects

Mr. Case explained Ms. Dickson has been looking ahead at future projects beyond Phase 1. Ms. Dickson reminded the Board she previously presented some of the information the Board

were utilized to create the list.

Ms. Dickson explained the future project envisioning began in early 2019 with the strategic planning group. In late 2019, there was an extensive survey among members about the Country Club that gathered a 52% response rate. In addition to the survey, there were 10 focus groups that were convened in August 2020 to gain additional input and feedback about Country Club offerings and levels of satisfaction. The topics discussed focused on dining, fitness and wellness, racquet sports, golf, and membership. In early 2020, there was also a UPCAI survey that gathered an outstanding response from residents. The UPCAI survey focused on members and non-members as well as pros and cons regarding social involvement and activity engagement in the Club and in the community. All of that input combined because the foundation for creating a master plan. The master plan concept was first presented in April 2021 and numerous updates were shared in District Meetings and Workshops for several months.

Ms. Dickson explained as Phase 1 projects were solidified, she was then charged with assembling a list of Phase 2 and beyond projects. Ms. Dickson met with numerous staff, as well as members who regularly use the facilities, to discuss in more detail what the desired enhancements could and should be. It is expected items on the presented list would spark discussion and hopefully add helpful perspectives regarding the future vision of the District.

Ms. Dickson stated the first item on the list is a Fitness and Wellness Center. It was explained the existing Fitness and Wellness Center attempts to serve many different purposes however, the proposed new Fitness and Wellness Center would be specifically devoted to group fitness, equipment, workout rooms, steam and sauna rooms, personal training, and locker room space. The proposed new Fitness and Wellness Center would also include flex space for meetings, lectures, activity center, and administration offices. This would add to the member enhancements and will allow for the expansion of activities in a more comfortable space.

Ms. Dickson then presented plans for the Conversion of Current Pro Shop. It was explained the District is moving the current Pro Shop into the existing Varsity Club, which will leave an available multi-use space. There is a need for an activity hub to accommodate cards and games, social activities, and food and beverage.

Ms. Dickson presented the proposed plans for Golf Operations/Golf Academy Enhancements. It was explained there are several areas of improvement concerning golf operations to include easier access for golf cart navigation, enhancing the existing golf practice area, adding courtside shade options, and widening golf cart paths. Ms. Dickson also discussed renovating/repurposing golf locker rooms. It was suggested the golf locker rooms can serve as dressing rooms for wedding and banquet parties.

Ms. Dickson briefly discussed parking lot expansions. It was explained as the District offers additional activities and amenities, there may be a need for additional parking spaces.

Ms. Dickson then suggested a kitchen expansion. There is a need for updated kitchen equipment and reorganization within the existing footprint.

Ms. Dickson presented the idea of a new club entry drive that would alleviate the traffic coming in and provide a lovely green space with a beautiful lake view. To the left of the green space would be a parking area. The green space could also accommodate lawn activities and events.

Ms. Dickson suggested infrastructure changes and improvements. There were proposed improvements named in the areas of golf course irrigation, bridges, and lake banks.

Ms. Dickson suggested water feature enhancements to the two lakes that are club side. These water features would add to the overall ambiance of the Country Club.

Ms. Dickson reminded the Board to remember key stakeholders when making decisions. The Board was encouraged to consider what the Country Club values most and what value the Country Club brings to others. Ms. Dickson stated she will continue to meet with Advisory Groups and stakeholders as the Phase 2 and beyond project plans continue to develop.

Monthly Board of Supervisors Comments

Mr. Case announced he attended the oversight committee meeting and it was a good meeting.

Mr. DiPaolo stated he had a meeting with the patio architect and there is an aggressive schedule to get the patio work done. The plan is to begin work on May 1, 2022. The timeline of completion heavily depends on the approval of permits and availability of materials. The contractor should provide a better idea on permitting and delivery next Friday. The District would need to do an RFP. The District will know more information on a timeline in the next 30 days. Mr. Ludmerer asked if the District needs a permit to start demolition. It was confirmed there needs to be a permit to begin demolition. Mr. Case asked if the District could start demolition without the rest of the permits being approved. Mr. Fetsick stated the District will receive all permits before the start of demolition. Mr. DiPaolo stated he would talk to the contractor about the timeline for permitting in Manatee County and would update the Board once that information is received.

There were no other Supervisors comments.

FOURTH ORDER OF BUSINESS	Business Matters

Ratification of Payment Authorization #66 & 67

Mr. Fetsick outlined the Payment Authorizations. It was noted the Audit is progressing well and the District should be able to approve an Audit Resolution at the next meeting.

ON MOTION by Ms. Dickson, seconded by Mr. Ludmerer, with all in favor, the Board Ratified Payment Authorization #66 and 67.

SIXTH ORDER OF BUSINESS	Adjournment

Mr. Case requested a motion to adjourn the Board of Supervisors’ Meeting.

ON MOTION by Mr. DiPaolo, seconded by Ms. Pagano, with all in favor, the Friday March 11, 2022 Board of Supervisors’ Meeting of University Park Recreation District was adjourned at 2:07 p.m.

Secretary / Assistant Secretary	Chairperson / Vice Chairperson

Consideration of the Minutes of the March 29, 2022, Board of Supervisors Workshop Meeting (under separate cover)

District Counsel

District Manager

Club Management

Monthly Board of Supervisors Comments

Update of the Strategic Planning of Phase II of the Master Plan Concept

Review and Acceptance of FY 2021 Audit Report

UNIVERSITY PARK RECREATION DISTRICT FINANCIAL STATEMENTS
SEPTEMBER 30, 2021

UNIVERSITY PARK RECREATION DISTRICT TABLE OF CONTENTS SEPTEMBER 30, 2021
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	14
Statement of Activities	15
Fund Financial Statements:
Balance Sheet - Governmental Funds	16
Reconciliation of the Governmental Funds Balance Sheet
To the Statement of Net Position	17
Statement of Revenues, Expenditures and Changes in
Fund Balances - Governmental Funds	18
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the
Statement of Activities	19
Statement of Net Position - Proprietary Fund	20
Statement of Revenues, Expenses, and Changes in Net
Position - Proprietary Fund	21
Statement of Cash Flows - Proprietary Fund	22
Notes to Financial Statements	23
PART II.	REQUIRED SUPPLEMENTARY INFORMATION OTHER THAN MD&A
Schedule of Revenues, Expenditures and Changes in
Fund Balances - Budget and Actual - General Fund	39
Schedule of Revenues and Departmental Expenses -
Budget and Actual - Proprietary Fund: Enterprise
(University Park Country Club)	40
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	41
Independent Auditor’s Report on Compliance with
Section 218.415, Florida Statutes	43
Management Letter	44

INDEPENDENT AUDITOR’S REPORT

February 1, 2022

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, 2021, 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.

Board of Supervisors
UNIVERSITY PARK RECREATION DISTRICT
February 1, 2022
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, 2021, 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 February 1, 2022, 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.

PHILLIPS HARVEY GROUP, P.A.
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 years ended September 30, 2021, and September 30, 2020. Please read it in conjunction with the accompanying basic financial statements.

FINANCIAL HIGHLIGHTS
(rounded to thousands)

		2021			2020		  (Decrease)		
Total net position	$	22,979	$	22,426	$	553	
Unrestricted net position available for future use	$	(102)	$	326	$	(428)	
Governmental net position	$	4,324	$	5,520	$	(1,196)	
Total revenues from all sources	$	11,734	$	30,974	$	(19,240)	
Governmental revenues	$	884	$	24,211	$	(23,327)	
Total cost of District programs	$	10,879	$	26,199	$	(15,320)	
Governmental change in net position	$	(1,186)	$	5,042	$	(6,228)	
General fund revenues (under) over expenditures	$	(136)	$	(359)	$	223	
General fund unassigned fund balance	$	82	$	208	$	(126)	
As a percent of general fund expenditures	37.91%	45.25%	(7.34)%	
Country Club operating (loss)	$	(288)	$	(238)	$	(50)	
Country Club change in net position	$	1,749	$	16,906	$	(15,157)	
Change in total long-term debt for the District

USING THIS ANNUAL REPORT	$	(1,841)	$	(175)	$	(1,666)	

	September 30,		Increase

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. 2. Fund financial statements tell how these services were financed, as well as what remains for future spending. Fund financial statements also report the District's operations 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 funds financial 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 entities. All of the District’s revenues and expenses are considered, 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 represent most of these activities.

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

REPORTING THE DISTRICT'S MOST SIGNIFICANT FUNDS

Fund Financial Statements
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 at times, which aid in the management of resources for particular purposes or meet legal responsibilities associated with the usage of certain taxes, grants, and other resources. 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 readily converted to cash. 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 - The 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 the existing 27-hole University Park 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 - The Acquisition and Construction Fund accounts for the construction and acquisition of capital assets including the acquisition of the University Park 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, 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 16 through 19 of the report. The District maintains one proprietary fund for its business-type activities:
Proprietary Fund - The District's Proprietary Fund is the Country Club Fund, which accounts for charges to members and non-members (i.e., public) for the services it provides and for expenses incurred to provide services. 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 20 through 22 of this report.

GOVERNMENT-WIDE FINANCIAL ANALYSIS

As noted earlier, over time the net position may serve as a useful indicator of a government's financial position. In the case of the District, the net position was $22,979,394 and $22,425,558 at September 30, 2021, and September 30, 2020, respectively.

A significant portion of the District's net position 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 property owners of the District and to non-members; consequently, these assets are not available for future spending.

NET POSITION AT SEPTEMBER 30, 2021, and 2020

Governmental Activities

2021	2020	Business-Type Activities

2021	2020	Total	
			2021	2020	

Assets:									
Current and other assets	$	91,416	$	242,401		$	732,281	$	1,478,179		$	823,697	$	1,720,580	
Receivables	23,492,980	24,000,008		235,756	196,500		23,728,736	24,196,508	
Due from another fund	-	-		-	40,434		-	40,434	
Inventories	-	-		205,984	176,770		205,984	176,770	
Prepaid expenses	324,009	345,468		113,644	95,201		437,653	440,669	
Other assets	-	-		8,886	9,043		8,886	9,043	
Restricted cash	4,302,024	5,400,464		925,000	-		5,227,024	5,400,464	
Capital assets, net		- 		- 		  19,184,088	  18,980,303		  19,184,088	  18,980,303	
Total assets	  28,210,429	  29,988,341		  21,405,639	  20,976,430		  49,616,068	  50,964,771	
Deferred outflows of resources:									
Liabilities:									
Current liabilities:									
Accounts Payable	9,447	34,038		162,623	115,637		172,070	149,675	
Accrued Interest	314,015	353,591		-	-		314,015	353,591	
Capital Lease	-	-		473,618	447,124		473,618	447,124	
Accrued Payroll and Other	-	-		329,539	418,753		329,539	418,753	
Deferred Dues	-	-		838,952	793,515		838,952	793,515	
Long-term liabilities							-		
Capital Lease	-			914,942	1,388,544		914,942	1,388,544	
2019 Bond	23,563,013	24,080,772		-	-		23,563,013	24,080,772	
Other		- 		- 			30,525		907,239			30,525		907,239	
Total liabilities	  23,886,475	  24,468,401			2,750,199		4,070,812		  26,636,674	  28,539,213	
Deferred inflows of resources:									
Net position:
Net investment in capital	

-	

-		

17,765,003	

17,093,179		

17,765,003	

17,093,179	

Restricted	
3,917,976	
5,006,542		
925,000	
-		
4,842,976	
5,006,542	
Unrestricted		405,978		513,398			(34,563)		(187,561)			371,415		325,837	
Total net position	$	4,323,954	$   5,519,940		$  18,655,440	$  16,905,618		$  22,979,394	$  22,425,558	

Governmental Activities
Changes in net position show revenue and expenses for governmental and business-type activities of the District, along with transfers between District funds.

CHANGES IN NET POSITION

REVENUES:
Non-ad valorem assessments Charges for services
Other revenues and interest Total Revenues	

$	Governmental Activities 2021	2020

1,390,780 $ 24,001,297
-	-
    8,153 	109,661
  1,398,933   24,110,958	Business-Type Activities 2021	2020

$		-	$		- 8,854,160		6,687,098
	40,707 	22,153
	8,894,867 	6,709,251	Total
2021

$	1,390,780 $
8,854,160
	48,860 	
  10,293,800  	
2020

24,001,297
6,687,098
131,814
30,820,209	
EXPENDITURES:
Current:
General government Debt service:
Interest and debt issuance Country Club:
Operating expenses Interest expense
Depreciation and amortization	

782,584

754,050

-
-
	- 	

1,247,339

648,290

-
-
	- 	

‐

8,018,147
103,000
	1,164,914	

‐

6,141,385
51,673
	783,411	

782,584

754,050

8,018,147
103,000
	1,164,914 		

1,247,339

648,290

6,141,385
51,673
783,411	
Total Expenditures		1,536,634		1,895,629		9,286,061		6,976,469		9,286,061 		6,976,469	
Excess (deficiency) of revenues
over (under) expenditures	(137,701)	

22,215,329	

(391,194)	

(267,218)	(528,895)	

21,948,111	

Contributions, transfers and other Capital transfers in (out) Transfers in (out)
Other income/expenses (net)
Total contributions, transfers and other	

(1,058,285)
-
	- 

	(1,058,285)	

(17,272,836)
100,000
	- 

  17,172,836	

1,058,285
-
	1,082,731

	2,141,016	

17,272,836
(100,000)
	- 

  17,172,836	

-
-
	1,082,731 	

	1,082,731 		

-
-
- 

- 	
Net change in net positions		(1,195,986)	5,042,493	1,749,822	16,905,618	553,836	21,948,111	

Net position-beginning of year	
	5,519,940	
	477,447	
  16,905,618		- 	
  22,425,558 		
477,447	

Net position-end of year	$	4,323,954  $   5,519,940	$  18,655,440  $  16,905,618	$  22,979,394  $  22,425,558

Changes in Net Position (Continued)
Note—the District acquired the University Park County Club on November 22, 2019, from the issuance of its non-ad valorem assessment bonds series 2019. Consequently, the business-type activities results of operations in fiscal year 2020 are for the period from November 22, 2019, through September 30, 2020.

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

Business-Type Activities
For the fiscal year ended September 30, 2021, the Country Club charges for services (revenues) for Business- type activities was $8,854,160 and expenses were $9,183,061. Other revenues of $1,179,621 included
$855,783 of non-operating income relating to a Payroll Protection Plan loan that was forgiven by the Small Business Administration in April 2021. The loan was obtained by the County Club’s management company (Park Boulevard Management) for management and staff personnel serving the County Club. Overall results for the year was an excess of expenditures over revenues of $391,194. In addition, investments in capital assets of $1,058,285 were paid through transfers from the Capital Asset fund in the same amount. The net position of the Proprietary Fund (Country Club) at September 30, 2021, was $18,655,440.

For the fiscal year ended September 30, 2020, the Country Club charges for services (revenues) for the Business-type activities was $6,687,098 and expenses were $6,976,469, resulting in an excess of expenditures over revenues of $267,218. In addition, investments in capital assets of $17,272,836 were paid through transfers from the Capital Acquisition and Construction Fund in the same amount. During the year,
$100,000 was transferred from the Propriety Fund to the General Fund to pay a portion of Governmental expenditures. The net position of the Proprietary Fund (Country Club) at September 30, 2020, was
$16,905,618.

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 objective 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 September 30, 2021, the combined fund balance for all Governmental Funds was $4,391,972, a decrease from the September 30, 2020, fund balance of $5,578,401. Approximately 2% of the combined ending fund balance ($4,391,972) constitutes unrestricted (unassigned/assigned) fund balance totaling $81,968, which is available for spending at the District’s discretion. The remainder of fund balance ($4,310,004) is restricted (non-spendable/restricted) to indicate that it is not available for new spending because it has already been committed for debt service and acquisition and construction.

Governmental Funds (Continued)
At September 30, 2020, 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 District’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 debt service and acquisition and construction.

General Fund
The General Fund is the chief operating fund of the District. At the end of the current fiscal year, the total fund balance of the General Fund was unassigned, this amount was $81,968. As a measure of the General Fund's liquidity, it is helpful to compare the total fund balance which is 37.91% of total general fund expenditures of
$216,245.

The General Fund unassigned fund balance ($81,968) represents a decrease of $126,395 from the 2019 unassigned general fund balance of $208,363.

At the end of September 30, 2020, 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 the 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 2021 total appropriations adopted of $302,090 was not amended.

General Fund Budget Analysis
As shown on page 39 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 $85,845.

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
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. There are no Governmental Activities capital assets at September 30, 2021, and September 30, 2020, respectively.

CAPITAL ASSETS AT SEPTEMBER 30, 2021, AND SEPTEMBER 30, 2020

	2021		2020		
Land	$ 8,525,000	$ 8,525,000	
Construction in progress	1,029,593	89,947	
Golf course and improvements	5,168,615	5,115,043	
Buildings	3,202,367	3,171,213	
Machinery and equipment	2,894,084	2,549,757	
Tennis courts		233,977		233,977	
Total assets	21,053,636	19,684,937	
Less accumulated depreciation, net	  (1,869,548)		(704,634)	
Net capital assets	$ 19,184,088	$ 18,980,303	

Business-Type Activities

On November 22, 2019, the District acquired, for $16,750,000, through designated bond proceeds, 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 community. The Proprietary Fund recorded depreciation of $1,164,914 for the year ended September 30, 2021, and $783,411 for the period from November 22, 2019, through September 30, 2020. These capital assets are included as transfers from the Capital Acquisition and Construction Fund, net of other capital asset activity during the periods.
The District's investment in capital assets for its business-type activities as of September 30, 2021, and September 20, 2020, was $17,765,003 and $17,093,179, respectively (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 2021 or 2020.

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 $24,982,098: $23,563,013 (including unamortized bond premium of
$78,013) in the governmental activities and $1,419,085 in business-type activities. Loans due to the District’s management company at September 30, 2020 were forgiven during the fiscal year ending September 30, 2021 (see page 8.) None of the District's long-term debt comprises debt backed by the full faith and credit of the County and Federal government.

OUTSTANDING DEBT AT SEPTEMBER 30, 2021, and SEPTEMBER 30, 2020
	Governmental Activities		 Business-Type Activities			Total	
	2021	2020		2021	2020		2021	2020	
Series 2020 Bonds	$ 23,485,000	$ 24,000,000		$	-	$	-		$ 23,485,000	$ 24,000,000	
Capital leases	-	-		1,388,560	1,835,668		1,388,560	1,835,668	
Loan payable	-	-		-	855,783		-	855,783	
Equipment loans	-	-		30,525	51,456		30,525	51,456	
Plus: Bond premium, net		78,013		80,772			-		-			78,013		80,772	
Total	 $ 23,563,013	 $ 24,080,772		 $1,419,085	 $2,742,907		 $ 24,982,098	 $ 26,823,679	

NEXT YEAR'S BUDGET AND ECONOMIC FACTORS

The Fiscal year 2022 Budget includes plans for continued improvements to the University Park golf course while also 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 and guests 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.
Results of Operations—Proprietary Fund, Enterprise – Country Club Fund
Despite the economic impact of COVID-19, FY2021 results of operations for the Country Club Fund were positive as the District was fortunate to offer an outdoor activity, golf, to its membership and the general public. Golf Operations saw increases across all sectors, including member and public play rounds and increased greens fees and cart fees. Restaurant revenues were flat with the preceding year. Operating expenses increased more than budgeted amounts in all departments due to increased labor costs and higher cost for food and supplies consumed in the restaurant and golf maintenance operations.
The District’s delinquent account balance remains insignificant. The District had two delinquent accounts related to the 2019 Assessment as of year ended September 30, 2020. Each account was placed in litigation, and both were paid in full in FY2021. Regarding the Club Operations side, there are no significant delinquent accounts.
CURRENT DEVELOPMENTS
Master Plan, Dining Renovations, Pickleball and Croquet Courts
The Board recently accepted Master Plan concepts for the Club, presented by Fawley Bryant Architecture of Bradenton, FL. Phase #1 projects of the Plan approved by the Board include significant improvements to the dining facilities with a remodel of the indoor dining facilities and a complete renovation of the outdoor dining and social gathering spaces in the Café.
The Board also selected Club Design Group (CDG) to complete an interior and exterior design for the indoor and outdoor dining renovation project. These design concepts will provide a brand-new look and feel to the dining experience and have been established and include an outdoor bar, social gathering spaces and the interior aesthetics. The indoor dining facility grand opening event was held on January 20, 2022.

The Master Plan concept also included the installation of Pickleball Courts, and the relocation and enlarging the Croquet Pitch. The installation of the Pickleball Courts is expected to commence in early January with an expected completion timeframe in the early summer. The new, expanded Croquet Pitch began construction in October 2021 and has made excellent progress and is now in the final stages of completion.
As of September 30, 2021, the Board committed $825,000 for the acquisition and construction fund and also assigned $400,000 to be used for future working capital needs.

FY2022 Budget
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 the May 14, 2021, Board Meeting. The Budgets, primarily the Enterprise Fund, were prepared assuming club operations return to pre-COVID-19 activities, reflecting increased revenue, namely in Restaurant Operations. Renovation of the Golf Course with holes #10-18 was completed during the summer of 2021 and a similar renovation of holes #19-27 have been approved to commence in the summer of 2022. The FY2022 budget assumes the remaining open 18 holes can accommodate summer golf demand with minimal impact on golf revenues.

Membership Plan
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 membership Plan provides flexible, a la carte options to all members, including the introduction of pickleball included in a Racquets membership and the option to add a Pickleball Pass to the Social membership. It also includes the introduction of a Social Access Pass for the spouse of a Full/Racquets single member and the requirement of a Social Family membership for all households that have more than one resident.
A summary of memberships as of December 31, 2021, and 2020 follows:

Category	YE 2021	YE 2020	Difference	% Change	
Full	355	291	64	22%	
Tennis/Raquets	124	106	18	17%	
Sports	0	79	-79	-100%	
Social/Resident	747	667	80	12%	
Twilight Tennis	0	8	-8	-100%	
Jr. Exec		2	3	-1	-33% 	
Total	1228	1154	74	6%	

New Member Activity included in YE 2021 results above:
Annual Fitness Passes Sold: 98 Social Access Passes Sold: 120 Twilight Tennis Passes Sold: 4
Single Memberships converted to Family: 229

Capital Reserve Plan
Finally, in addition to the Enterprise Fund and General Fund Operating Budgets, Club Management commenced the creation of a long-term Capital Reserve plan for ongoing equipment replacement and capital improvement needs. This included the identification and tagging of all Club assets, identifying the useful lives of the assets, and quantifying the replacement value of these assets. This information provides the foundation for the Capital Reserve plan that is planned to be completed during FY2022.

CONTACTING THE DISTRICT'S FINANCIAL MANAGEMENT

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

John Fetsick, General Manager University Park, FL

PART I.	FINANCIAL SECTION

UNIVERSITY PARK RECREATION DISTRICT STATEMENT OF NET POSITION SEPTEMBER 30, 2021

	Governmental	Business		
ASSETS	  Activities 	  Activities 		Total		
Cash	$	91,416	$ 1,657,281	$ 1,748,697	
Receivables	23,492,980	235,756	23,728,736	
Inventories	-	205,984	205,984	
Prepaid expenses	324,009	113,644	437,653	
Other assets	-	8,886	8,886	
Restricted assets:				
Cash, restricted for debt and/or capital payments	4,302,024	-	4,302,024	
Capital assets, net:				
Non-depreciable assets	-	9,554,593	9,554,593	
Depreciable assets (net of depreciation)		-		9,629,495		9,629,495	
Total capital assets, net		-	 19,184,088	 19,184,088	
Total assets	 28,210,429	 21,405,639	 49,616,068	
LIABILITIES				
Accounts payable	9,447	162,623	172,070	
Accrued payroll and other	-	329,539	329,539	
Accrued interest payable	314,015	-	314,015	
Unearned revenue	-	838,952	838,952	
Non-current obligations:				
Portion due within one year	530,000	494,549	1,024,549	
Portion due after one year	 23,033,013		924,536	 23,957,549	
Total liabilities	 23,886,475		2,750,199	 26,636,674	
NET POSITION				
Net investment in capital assets, net	-	17,765,003	17,765,003	
Net position-restricted:				
General fund	-	100,000	100,000	
Debt service fund	3,917,976	-	3,917,976	
Acquisition and construction fund	-	825,000	825,000	
Unrestricted		405,978		(34,563)		371,415	
Total net position	$ 4,323,954	$ 18,655,440	$ 22,979,394	

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

UNIVERSITY PARK RECREATION DISTRICT STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED SEPTEMBER 30, 2021

Functions/Programs
Primary Government: Governmental activities

Charges
for	Governmental	Business-type
  Expenses			Services			Activities			
Activities

	Total	

General government Interest on long term debt

$	266,726	$	883,933	$	617,207	$	-	$	616,349
		754,908			-		 (754,908)		 -		 (754,050) 1,021,634		883,933		(137,701)		-		(137,701)

	(164,246

	(164,246

Business-type activities-country club				9,177,998		-				

Total business-type activities

9,394,23,4224,4244		9,177,998		-

(164,246)

)	(164,246)	)

Total government	$ 10,363,878	$ 10,061,931		(137,701)		(164,246)		(301,947)

General Revenues:		
PPP federal loan proceeds	-	855,783	855,783	
Transfers-capital assets	  (1,058,285)		1,058,285		-	
Total general revenues and transfers	(1,058,285)	1,914,068	855,783	
Change in net position	(1,195,986)	1,749,822	553,836	
Net position, September 30, 2020		5,519,940	 16,905,618	 22,425,558	
Net position, September 30, 2021	$ 4,323,954	$ 18,655,440	$ 22,979,394	

UNIVERSITY PARK RECREATION DISTRICT BALANCE SHEET - GOVERNMENTAL FUNDS SEPTEMBER 30, 2021

	

	GENERAL		DEBT SERVICE
	2019		ACQUISITION AND
 CONSTRUCTION 	TOTAL GOVERNMENTAL
	FUNDS		
ASSETS					
Cash (Note 3)	$	91,416	$	1,662,075	$	2,639,949	$	4,393,440	
Receivables		-		23,492,980		-		23,492,980	
Total Assets	$	91,416	$	25,155,055	$	2,639,949	$	27,886,420	

	MAJOR FUNDS	

LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES

Accounts payable	$	9,448	$	-	$	-	$	9,448	
Total Liabilities		9,448		-		-		9,448	

Liabilities:

Unavailable revenue-special assessments		-		23,485,000		-		23,485,000	
Total Liabilities and Deferred Inflows of Resources		9,448		23,485,000		-		23,494,448	

Deferred Inflows of Resources:

Non-spendable	-	-	-	-	
Restricted	-	1,670,055	2,639,949	4,310,004	
Committed	-	-	-	-	
Assigned	-	-	-	-	
Unassigned		81,968		-		-		81,968	
Total Fund Balances		81,968		1,670,055		2,639,949		4,391,972	
Total Liabilities, Deferred Inflows of Resources and Fund Balances	
$	91,416	
$	25,155,055	
$	2,639,949	
$	27,886,420	

Fund Balances (Note 8): Reserved for:

UNIVERSITY PARK RECREATION DISTRICT

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

SEPTEMBER 30, 2021

TOTAL GOVERNMENTAL FUND BALANCE (Page 16)	$	4,391,972

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	$	23,485,000 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	$ (23,485,000)
(78,012)
324,009
	(314,015)	
		(23,553,018)	
Total Net Position (Page 14)	$	4,323,954	

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

- 17-

UNIVERSITY PARK RECREATION DISTRICT
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2021

	MAJOR FUNDS	

	GENERAL	

DEBT SERVICE
	2019	

ACQUISITION AND
 CONSTRUCTION 

TOTAL GOVERNMENTAL
	FUNDS	

REVENUES		
Non-ad valorem assessments	$	2,000	1,388,780	-	$	1,390,780	
Other revenues and interest		-		7,980		179		8,159	
Total Revenues		2,000$		1,396,760$		179		1,398,939	
EXPENDITURES
Current:
General government	

216,245	

41,788	

-	

258,033	
Debt service:					
Principal	-	515,000	-	515,000	
Interest		-		754,050		-		754,050	
Total Expenditures		216,245		1,310,838		-		1,527,083	
(Deficiency) of revenues over expenditures	(214,245)	85,922	179	(128,144)	
OTHER FINANCING SOURCES AND USES					
Transfers in (out)	77,850	(77,850)	-	-	
Transfers-contributions to Enterprise Fund		-		-		(1,058,285)		(1,058,285)	
Total Financing Sources (Uses)		77,850		(77,850)		(1,058,285)		(1,058,285)	
Net Change in Fund Balances	(136,395)	8,072	(1,058,106)	(1,186,429)	
Fund Balances, September 30, 2020		218,363		1,661,983		3,698,055		5,578,401	
Fund Balances, September 30, 2021	$	81,968	$	1,670,055	$	2,639,949	$	4,391,972	

The accompanying notes are an integral part of these financial statements.
- 18 -

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, 2021

Net Change in Fund Balances - Total Governmental Funds (Page 18)	$	(1,186,429)	
Amounts reported for governmental activities in the statement of activities are different because:			
Governmental funds report annual collections of non-ad valorem assessments as revenue, including the portion collected for principal repayment. However, in the statement of activities, the principal repayment portion is eliminated and instead reduces the deferred inflows of resources on the statement of net position.		

(515,000)	
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	(857)
2,759
	(11,459)		
		(9,557)	
Repayments of long-term liabilities are reported as expenditures in the governmental fund statement, however, such repayments reduce liabilities in the statement of net position and are eliminated in the statement of activities.		

515,000	
Change in Net Position of Governmental Activities (Page 15)	$		(1,195,986)	

STATEMENT OF NET POSITION PROPRIETARY FUND SEPTEMBER 30, 2021

Assets Current assets
Cash and cash equivalents Accounts receivable

Enterprise
(Country Club)

$	1,657,281
235,756

Inventories	205,984

Prepaid expenses Other assets

113,644
	8,886

Total current assets		2,221,551
Non-current assets
Capital assets, net	 	19,184,088
Total non-current assets		19,184,088

Total assets		21,405,639

Accounts payable	162,623	
Accrued expenses	329,539	
Unearned revenue	838,952	
Capital leases/loans		494,549	
Total current liabilities		1,825,663	

Liabilities Current liabilities

Non-current liabilities Capital leases/loans
Total non-current liabilities

	924,536
	924,536

Total liabilities	 	2,750,199

General fund	100,000	
Acquisition and construction fund	825,000	
Net investment in capital assets	17,765,003	
Unrestricted		(34,563)	

Net position Restricted for:

Total net position	$	18,655,440

STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION

PROPRIETARY FUND

FOR THE YEAR ENDED SEPTEMBER 30, 2021		

Operating revenue	Enterprise (Country Club)	
Membership dues	$	3,669,421	
Green/cart fees and other	3,363,862	
Restaurant revenues	1,752,278	
Tennis and fitness fees	68,599	
Miscellaneous		40,707	
Total operating revenues		8,894,867	
Operating expenses
Golf course maintenance expenses	
2,287,279	
Golf and pro shop operations	1,109,883	
Restaurant expenses	2,572,870	
Tennis and fitness	347,894	
Administrative and general	1,516,606	
Insurance	183,615	
Depreciation and amortization		1,164,914	
Total operating expenses		9,183,061	
Operating income (loss)		(288,194)	
Nonoperating revenues (expenses) Initiation fees	
283,131	
Management company federal loan proceeds, net of interest	
855,783	
Interest expense	(103,000)	
Miscellaneous and other		(56,183)	
Total nonoperating revenues (expenses)		979,731	
Contributions and transfers Capital contributions	
	1,058,285	
Total contributions and transfers		1,058,285	
Change in net position	1,749,822	
Net position, beginning		16,905,618	
Net position, ending	$	18,655,440	

UNIVERSITY PARK RECREATION DISTRICT			
STATEMENT OF CASH FLOWS			
PROPRIETARY FUND			
FOR THE YEAR ENDED SEPTEMBER 30, 2021			
Cash flows from operating activities:			
Receipts from customers	$	8,901,048	
Payments to suppliers for goods or services		(4,462,898)	
Payments to employees for services		   (3,644,978)	
Net cash provided by operating activities		    793,172	
Cash flows from capital and related financing activities: Reimbursement from acquisition and construction fund Principal paid on capital lease obligations and loans Initiation fees
Interest paid on debt Acquisition of capital assets, net
Net cash (used in) capital and related financing activities	
40,434	
	(197,143)	
	283,131	
	(103,000)	
		(637,492)	
		(614,070)	
Net increase in cash		179,102	
Cash, beginning of year		   1,478,179	
Cash, end of year	$		1,657,281	
Reconciliation of operating income (loss)
to net cash provided by operating activities: Operating income (loss)
Adjustment to reconcile operating income (loss) to net cash provided by operating activities:
Depreciation and amortization Change in assets and liabilities:
Increase in accounts receivable Increase in inventories Increase in prepaid expenses Decrease in other assets	

$		

(288,194)	
		
1,164,914	
		(39,256)	
		(29,214)	
		(18,443)	
		157	
Increase in accounts payable Decrease in accrued expenses Increase in unearned revenue
Total adjustments
Net cash provided by operating activities		46,986	
		(89,215)	
		     45,437	
		   1,081,366	
	$		793,172	
Supplemental Disclosures of Cash Flow Information:
Capital assets obtained from contributions	
$		
1,058,285	

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 2021. 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.

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 noted 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.

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.

Each year the District management team submits to the District Board a proposed operating budget for the fiscal year commencing the following October 1.
A public hearing is conducted to obtain taxpayer comments.
Prior to October 1, the budget is legally adopted via resolution by the District Board.
All budget changes must be approved by the District Board.
All budgets are adopted on a basis consistent with generally accepted accounting principles.
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 no amounts due to and from other funds at September 30, 2021 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, 2021 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, 2021, 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, 2021. Capital assets are defined by the District as assets with an initial, individual cost of more than $2,500 and an estimated useful life in excess of one year. Capital assets are carried at historical cost or estimated fair value at date of purchase. 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 (excluding land), 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	15	
Buildings	28	
Machinery and equipment	5 - 7	
Tennis courts	7	

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

Payables and Accruals
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 staff 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 Debt Service 2019 fund reported 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 a liability 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, as well as other internal restrictions approved by the Board of Supervisors for specific use. Unrestricted net position consists of the remaining 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 2021.
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 (deposits) and cash equivalents held at September 30, 2021 by each governmental major
fund consisted of:	

	GENERAL		
DEBT SERVICE
	2019		
ACQUISITION AND
 CONSTRUCTION	

	TOTAL		
Demand Deposits	$	91,416	$	1,662,075	$	2,639,949	$	4,393,440	

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.

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, 2021, the District’s bank balance and carrying amounts were $5,639,228 and $4,393,440 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, 2021 was as follows:

	BEGINNING
  BALANCE		
  ADDITIONS 	TRANSFERS
 (DELETIONS) 	ENDING
  BALANCE		
Governmental activities: (None for the year)	$	-	$	-	$	-	$	-	
Business-type activities:					
Capital assets, not being depreciated:
Land	
$ 8,525,000	
$	-	
$	-	
$ 8,525,000	
Construction in progress		89,947		939,646		-		1,029,593	
Total capital assets, not being depreciated		8,614,947		939,646		-		9,554,593	
Capital assets, being depreciated: Golf course and improvements	
5,115,043	
53,570	
-	
5,168,613	
Buildings	3,171,213	31,154	-	3,202,367	
Machinery and equipment (incl. capital leases)	2,549,757	344,329	-	2,894,086	
Tennis courts		233,977		-		-		233,977	
Total capital assets being depreciated	 11,069,990		429,053		-	 11,499,043	
Less accumulated depreciation for: Golf course and improvements	
(279,695)	
(363,443)	
-	
(643,138)	
Buildings	(95,635)	(123,650)	-	(219,285)	
Machinery and equipment (incl. capital leases)	(300,641)	(639,879)	-	(940,520)	
Tennis courts		(28,663)		(37,942)		-		(66,605)	
Total accumulated depreciation		(704,634)	  (1,164,914)		-	  (1,869,548)	
Total capital assets, being depreciated, net	 10,365,356		(735,861)		-		9,629,495	
Business-type activities capital assets, net	$ 18,980,303	$	203,785	$	-	$ 19,184,088	

The Enterprise (Country Club) Fund depreciation amount for the year ended September 30, 2021 totaled
$1,164,914. Of the $1,368,699 in capital asset additions above, $1,058,285 were paid with transfers from the Acquisition and Construction Fund 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 equipment loans.
Changes in long-term liability activity for the fiscal year ended September 30, 2021 was as follows:

$	24,000,000	$	-  $	(515,000)	$	23,485,000	$	530,000	
80,772		-	(2,759)	78,013	-	
1,835,668		-	(447,108)	1,388,560	473,618	
855,783	-	(855,783)	-	-	
	51,456		-		(20,931)		30,525		20,931	
$	26,823,679	$	-	$	(1,841,581)	$	24,982,098	$	1,024,549	

Governmental activities: Series 2019 Bonds Plus: bond premium Business-type activities:
Capital leases
Due to PBM - Management Company Loan
Equipment loans

BALANCE	BALANCE	DUE
SEPTEMBER 30,	SEPTEMBER 30,	WITHIN
	2020	 	ADDITIONS	  (REDUCTIONS)  	2021	 	ONE YEAR	

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 began 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 2019 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, 2021.

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, 2021, 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		
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	$	23,485,000	$	13,273,488	$	36,758,488	
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, 2021, the principal amounts outstanding were $1,388,560 and the net book value of the equipment was $1,117,758. Amortization of leased equipment under capital assets is included in 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.

Capital lease assets included in equipment and the related accumulated depreciation as of September 30, 2021 were as follows:
Cost	$	1,991,601
Accumulated depreciation	$	873,843

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, 2021:

Year Ending
 December 31, 		AMOUNT	

2022	$	539,965	
2023	540,961	
2024	405,621	
2025		18,897	
Minimum lease payments	1,505,444	
Less: Amount representing interest		(116,884)	
Total present value of minimum lease payments	1,388,560	
Current maturities of capital lease obligations		473,618	
Long term portion of capital lease obligations	$	914,942	

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 30, 2021 totaling $30,525. The following is a schedule by years of future principal payments under these loans as of September 30, 2021:

Year Ending
 December 31, 		AMOUNT	

2022	$	20,349	
2023		10,176	
Total principal payments	30,525	
Current maturities of equipment loans		20,931	
Long term portion of equipment loans	$	9,594	

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 enacted various policies to curtail group gatherings until the risk diminished. The District took measures to protect its staff and members/citizens during this time, including the suspension and closure of certain operations. As a result of the pandemic, the Federal government signed the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”).

The CARES Act supported certain employers that operated a business 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”). In connection with management and staff personnel serving the Country Club, PBM, the Country Club’s management company, applied for and received PPP loan funding totaling $855,783 on May 5, 2020.

PBM lent the PPP loan proceeds to the District for management and staff personnel serving the Country Club, mirroring the same terms of the SBA PPP loan terms and provisions. The terms of this loan provided 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 provided for potential forgiveness of all or a portion of this loan if the respective company demonstrated that it used the funds for payroll and other specific expenses as defined by the PPP loan program. In April 2021, PBM formally applied for the loan forgiveness and received confirmation from their local institution that the SBA approved their loan forgiveness application, and the amount of the loan provided to the District was recorded as income when such forgiveness was received. No interest expense of significance was incurred on this loan for the year ended September 30, 2021.

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

$	-

	1,058,285	 TRANSFERS OUT

$	(1,058,285)

	-	
Total Interfund Transfers	$	1,058,285	$		(1,058,285)	

Activity between funds that is representative of lending/borrowing arrangements outstanding at the end of the fiscal year, if any, are referred to as "due to/from other funds". There were no amounts due from and to other funds at September 30, 2021.

NOTE 6 - RETIREMENT PLAN

The District offers a 401(k) retirement plan through its management company for the benefit of its staff. 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 2021.

NOTE 7 - MANAGEMENT CONTRACTS

The District contracted with PFM Group Consulting, LLC, a management company, through September 30, 2024 to perform management advisory services, which included advisory services. One employee of the management company serves as Secretary of the District. Under the agreement, the District compensates the management company for administrative, management, and other ancillary costs. Management fees totaling
$77,740 were paid for the year ending September 30, 2021.

NOTE 7 - MANAGEMENT CONTRACTS (Continued)

In September 2021, the District elected to renew the management agreement through September 30, 2024 with Park Boulevard Management, LLC, that is responsible for the management, operation, organization, administration and maintenance of the University Park Country Club in accordance with the terms of the agreement. 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 is 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 2021 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 balances may be assigned by the Supervisors to assign amounts for specific purposes.

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, 2021 is as follows:

	

	GENERAL		DEBT SERVICE
	2019		ACQUISITION AND
 CONSTRUCTION 	TOTAL GOVERNMENTAL
	FUNDS		
Non-spendable	$	-	$	-	$	-	$	-	
Restricted	-	1,670,055	2,639,949	4,310,044	
Committed	-	-	-	-	
Assigned	-	-	-	-	
Unassigned		81,968		-		-		81,968	
Total	$	81,968	$	1,670,055	$	2,639,949	$	4,391,972	

	MAJOR FUNDS	

NOTE 9 - SUBSEQUENT EVENTS

In preparing the financial statements, the District has evaluated events and transactions for potential recognition or disclosure through February 1, 2022, the date that the financial statements were available to be issued. The following matters were identified as a subsequent event:

1. In November 2021, the District paid interest of $369,944 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.

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, 2021

	GENERAL FUND	

	BUDGETED AMOUNTS	
  ORIGINAL			FINAL		ACTUAL
	AMOUNT		POSITIVE
 (NEGATIVE)	
EVENUES:
Non-ad valorem assessments	$	-	$	-	$	2,000	$	2,000	
Prior year surplus	70,000	70,000	-	(70,000)	
Other income and financing sources		232,090		232,090		-		(232,090)	
Total Revenues		302,090		302,090		2,000		(300,090)	

VARIANCE WITH FINAL BUDGET

R

EXPENDITURES:

General government	262,090	262,090	216,245	45,845	
Capital outlay	-	-	-	-	
Contingency/revenue reserve	40,000	40,000	-	40,000	
Debt service:					
Principal retirement	-	-	-	-	
Interest		-		-		-		-	
Total Expenditures		302,090		302,090		216,245		85,845	
(Deficiency) excess of revenues					
(under) over expenditures	-	-	(214,245)	(214,245)	
OTHER FINANCING SOURCES (USES):	
Transfers in (out)		-		-		77,850		77,850	
Net Change in Fund Balance	$	-	$	-	(136,395)	$	(136,395)	
Fund Balance, September 30, 2020				218,363		
Fund Balance, September 30, 2021			$	81,968		

Current:

SCHEDULE OF REVENUES AND DEPARTMENAL EXPENSES - BUDGET AND ACTUAL PROPRIETARY FUND: ENTERPRISE (UNIVERSITY PARK COUNTRY CLUB)
FOR THE YEAR ENDED SEPTEMBER 30, 2021

$	

ACTUAL
  AMOUNT	

3,669,421
3,363,862
1,752,278
68,599
     40,707
   8,894,867	VARIANCE WITH FINAL BUDGET POSITIVE
 (NEGATIVE)

$	(182,963)
838,156
30,696
793
	35,707
	722,389	
2,287,279
1,109,883
2,572,870
347,894
1,516,606
183,615
	1,164,914
	9,183,059
(288,194)	325,433
25,889
(300,244)
(19,838)
99,331
(183,615)
	(1,164,914)
	(1,217,958)
(495,569)	

283,131

855,783
(103,000)
	(56,183)
	979,731	
123,881

864,100
(103,000)
	(56,183)
	820,481	
	1,058,285
        -
   1,058,285
1,749,824
  16,905,618 18,655,440	1,058,285
	-
	1,058,285
$	1,383,197	

$				

	ENTERPRISE (COUNTRY CLUB) FUND	

	BUDGETED AMOUNTS	

OPERATING REVENUES:
Membership dues Green/cart fees and other Restaurant revenues Tennis and fitness fees Miscellaneous
Total operating revenues
OPERATING EXPENSES:
Golf course maintenance Golf and pro shop operations Restaurant operations Tennis and fitness Administrative and general Insurance
Depreciation and amortization Total operating expenses Operating income (loss)
NONOPERATING REVENUES (EXPENSES):
Initiation fees Management company
federal loan proceeds Interest expense Miscellaneous
Total nonoperating revenues
CONTRIBUTIONS AND TRANSFERS:

Total contributions and transfers		-		-	
Change in net position	$	366,627	$	366,627	
Net Position, September 30, 2020			
Net Position, September 30, 2021			

Capital contributions Transfers in (out)

  ORIGINAL	

$	3,852,384
2,525,706
1,721,582
67,806
	5,000
	8,172,478

2,612,710
1,135,772
2,272,626
328,056
1,615,937
-

   7,965,101		7,965,101	
207,377	207,377	

159,250	
159,250	
-	-	
-	-	
        -		-	
    159,250		159,250	
-	-	
        -		-	

	-

	FINAL	

$	3,852,384
2,525,706
1,721,582
67,806
	5,000
	8,172,478

2,612,710
1,135,772
2,272,626
328,056
1,615,937
-
	-

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

February 1, 2022

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, 2021, 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 February 1, 2022.

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) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of 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.

To the Board of Supervisors
UNIVERSITY PARK RECREATION DISTRICT
February 1, 2022

Compliance and Other Matters

As part of obtaining reasonable assurance about whether UNIVERSITY PARK RECREATION DISTRICT’S financial statements are free from 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 financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of this Report

The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the 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.

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

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

February 1, 2022

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, 2021. 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.

Our examination does not provide a legal determination on UNIVERSITY PARK RECREATION DISTRICT’s compliance with the specified requirements.

In our opinion, UNIVERSITY PARK RECREATION DISTRICT complied, in all material respects, with Section
218.415 of the Florida Statutes for the year ended September 30, 2021.

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

MANAGEMENT LETTER - LOCAL GOVERNMENT ENTITIES

February 1, 2022

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, 2021 and have issued our report thereon dated February 1, 2022.

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 Reporting Requirements

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 February 1, 2022, 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 recommendations made in the preceding financial audit report.

Official Title and Legal Authority

Section 10.554(1)(i)4., Rule of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to the financial statements. The District discloses this information in the notes to the financial statements.

Financial Condition and Management

Sections 10.554(1)(i)5.a and 10.556(7), Rules of the Auditor General, requires us to apply appropriate procedures and communicate the results of our determination as to whether or not UNIVERSITY PARK RECREATION DISTRICT met one or more of the conditions described in Section 218.503(1), Florida Statutes, and to identify 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.

Pursuant to Sections 10.554(1)(i)5.b. and 10.556(8), Rules of the Auditor General, we applied financial condition assessment procedures for UNIVERSITY PARK RECREATION DISTRICT. 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 communicate any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations.

Specific Information

As required by Section 218.39(3)(c), Florida Statutes, and Section 10.554(1)(i)6, Rules of the Auditor General, UNIVERSITY PARK RECREATION DISTRICT reported:

The total number of district employees compensated in the last pay period of the district’s fiscal year as 109.

The total number of independent contractors to whom nonemployee compensation was paid in the last month of the district’s fiscal year as 6.

All compensation earned by or awarded to employees, whether paid or accrued, regardless of contingency as $3,971,596.

All compensation earned by or awarded to nonemployee independent contractors, whether paid or accrued, regardless of contingency as $79,159.

Each construction project with a total cost of at least $65,000 approved by the district that is scheduled to begin on or after October 1 of the fiscal year being reported, together with
the total expenditures for such project as Indoor Dining: $1,200,000, Pickleball Courts: $300,000, Croquet: $75,000.

A budget variance report based on the budget adopted under Section 189.016(4), Florida Statutes, before the beginning of the fiscal year being reported if the district amends a final adopted budget under Section 189.016(6), Florida Statutes, as included below:

University Park Recreation District
Budget to Actual
For the year 10/1/2020 through 9/30/2021 General Fund - Operations & Maintenance
Year To Date
		Actual	Budget	Variance	
Revenues			
Assessments	$	2,000	$	-	$	2,000	
Other Income & Other Financing Sources		79,706	70,000	9,706	
Inter-Fund Transfers		-	-	-	
Prior Year Surplus Forward**		-	232,090	(232,090)	
Net Revenues		81,706	302,090	
(220,384)	
General & Administrative Expenses			
Insurance		2,875	2,875	-	
Management		70,000	67,500	2,500	
Management - General & Admin		7,740	-	7,740	
Dissemination Agent		5,000	5,000	-	
District Counsel		57,216	80,000	(22,784)	
Assessment Administration		10,000	10,000	-	
Audit		25,862	25,000	862	
Accounting		12,838	45,000	(32,162)	
Reamortization Schedule		-	250	(250)	
Travel and Per Diem		1,533	5,000	(3,467)	
Postage & Shipping		106	1,500	(1,394)	
Professional Fees		12,091	-	12,091	
Copies		-	2,000	(2,000)	
Legal Advertising		4,609	5,000	(391)	
Bank Fees		280	540	(260)	
Meeting Set Up		1,059	10,000	(8,941)	
Contingency		560	40,000	(39,440)	
Web Site Maintenance		3,400	2,250	1,150	
Dues, Licenses, and Fees		1,075	175	900	

Total General & Administrative Expenses
Total Expenses	216,244	302,090

	216,244		302,090	
Net Income (Loss)	 $		(134,538)		$	-	

(85,847)

	(85,847)

 $	(134,538)

Specific Information (Continued)

As required by Section 218.39(3)(c), Florida Statutes, and Section 10.554(1)(i)7, Rules of the Auditor General, the UNIVERSITY PARK RECREATION DISTRICT reported:

The rate or rates of non-ad valorem special assessments imposed by the District as 2.5 to 3.5%.

The total amount of special assessments collected by or on behalf of the district as $1,388,780.

The total amount of outstanding bonds issued by the district and the terms of such bonds as $23,485,000.

Additional Matters

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

Purpose of this Letter

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

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

University Park Recreation District

Ratification of Payment Authorization # 68 & 69

O&M - General Fund Expenses

Vendor	Invoice	Description	Amount	
Blalock Walters	40896-000-40	General Representation - February 2022	$	3,480.50	
McClatchy Company, LLC	101717	Notice of Public Meeting - February 2022	$	264.42	
Philips Harvey Group	145517	Audit FY2021	$	3,500.00	
Vglobal Tech	3594	ADA Website Maintenance - February	$	208.33	
Vglobal Tech	3680	ADA Website Maintenance - March	$	218.33	

O&M - General Fund Expenses Total	$	7,671.58

Asst. Secretary/Secreary

O&M - General Fund Expenses

Vendor
PFM

Invoice
DM-03-2022-50

Description
District Management Fee: March 2022

Amount
$	5,833.33

O&M - General Fund Expenses Total	$	5,833.33

Asst. Secretary/Secretay

University Park Recreation District

Supervisor Requests