OLD HICKORY 
COMMUNITY DEVELOPMENT DISTRICT 
CITY OF ST. CLOUD, FLORIDA 
FINANCIAL REPORT 
FOR THE FISCAL YEAR ENDED  
SEPTEMBER 30, 2022 

 

 

 

 

 

 

 

 

  OLD HICKORY COMMUNITY DEVELOPMENT DISTRICT 
CITY OF ST. CLOUD, FLORIDA 

TABLE OF CONTENTS 

 	Page 	
INDEPENDENT AUDITOR’S REPORT 	1-2 	
 	 	
MANAGEMENT’S DISCUSSION AND ANALYSIS 	3-6 	
 	 	
BASIC FINANCIAL STATEMENTS 	 	
Government-Wide Financial Statements: 	 	
Statement of Net Position 	7 	
 Statement of Activities 	8 	
Fund Financial Statements: 	 	
  Balance Sheet – Governmental Funds 	9 	
  Reconciliation of the Balance Sheet – Governmental Funds 
   to the Statement of Net Position 	10 	
  Statement of Revenues, Expenditures and Changes in Fund Balances – 
   Governmental Funds 	11 	
  Reconciliation of the Statement of Revenues, Expenditures and Changes in 
   Fund Balances of Governmental Funds to the Statement of Activities 	12 	
Notes to Financial Statements 	13-21 	
 	 	
REQUIRED SUPPLEMENTARY INFORMATION 	 	
Schedule of Revenues, Expenditures and Changes in Fund Balance – 
Budget and Actual – General Fund 	 
22 	
Notes to Required Supplementary Information 	23 	
 	 	
OTHER INFORMATION 	 	
     Data Elements required by FL Statute 218.39 (3) (c) 	24 	
 
INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL  
REPORTING AND COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT  
OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH  
GOVERNMENT AUDITING STANDARDS 	25-26 	
 	 	
INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE WITH THE REQUIREMENTS 
OF SECTION 218.415, FLORIDA STATUTES, REQUIRED BY RULE 10.556(10) 
OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA    	 
 
27 	
 	 	
MANAGEMENT LETTER REQUIRED BY CHAPTER 10.550 OF THE RULES  
OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA 	28-29 	

 
 
INDEPENDENT AUDITOR’S REPORT 
 
To the Board of Supervisors  
Old Hickory Community Development District 
City of St. Cloud, Florida 
 
Report on the Audit of the Financial Statements 
Opinions  
We have audited the accompanying financial statements of the governmental activities and each major fund of Old Hickory Community Development District, City of St. Cloud, Florida (“District”) as of and for the fiscal year ended September 30, 2022, and the related notes to the financial statements, which collectively comprise the District’s basic financial statements as listed in the table of contents. 
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities and each major fund of the District as of September 30, 2022, and the respective changes in financial position thereof for the fiscal year ended then ended in accordance with accounting principles generally accepted in the United States of America. 
Basis for Opinions 
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the District and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. 
Responsibilities of Management for the Financial Statements 
The District’s management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America; and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. 
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the District’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. 
Auditor’s Responsibilities for the Audit of the Financial Statements 
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.  
In performing an audit in accordance with GAAS, we:  

• Exercise professional judgment and maintain professional skepticism throughout the audit.  

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. 

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the District’s internal control. Accordingly, no such opinion is expressed. 

• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. 

• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the District’s ability to continue as a going concern for a reasonable period of time. 

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during the audit.  
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 be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge 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 Information Included in the Financial Report 
Management is responsible for the other information included in the financial report. The other information comprises the information for compliance with FL Statute 218.39 (3) (c) but does not include the financial statements and our auditor's report thereon. Our opinions on the financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.  
Other Reporting Required by Government Auditing Standards 
In accordance with Government Auditing Standards, we have also issued our report dated June 19, 2023, on our consideration of the District’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, 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. 

 
June 19, 2023 
MANAGEMENT’S DISCUSSION AND ANALYSIS 
 
Our discussion and analysis of Old Hickory Community Development District, City of St. Cloud, Florida (“District”) provides a narrative overview of the District’s financial activities for the fiscal year ended September 30, 2022. Please read it in conjunction with the District’s Independent Auditor’s Report, basic financial statements, accompanying notes and supplementary information to the basic financial statements.  
 
FINANCIAL HIGHLIGHTS 

• The assets of the District exceeded its liabilities at the close of the most recent fiscal year resulting in a net position balance of $3,126,271.   

• The change in the District’s total net position for the fiscal year ended September 30, 2022 was $2,401,894, an increase. The key components of the District’s net position and change in net position are reflected in the table in the government-wide financial analysis section.  

• At September 30, 2022, the District’s governmental funds reported combined ending fund balance of $432,685, and increase of $129,777.  The fund balance is non spendable for prepaids, restricted for debt service and the remainder is unassigned fund balance. 

OVERVIEW OF FINANCIAL STATEMENTS 
 
This discussion and analysis are intended to serve as the introduction to the District’s financial statements.  The District’s basic financial statements are comprised of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements.  This report also contains other supplementary information in addition to the basic financial statements themselves. 
 
Government-Wide Financial Statements 
 
The government-wide financial statements are designed to provide readers with a broad overview of the District’s finances, in a manner similar to a private-sector business. 
 
The statement of net position presents information on all the District’s assets, deferred outflows of resources, liabilities, and deferred inflows of resources with the residual amount being reported as net position.  Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the District is improving or deteriorating. 
 
The statement of activities presents information showing how the government’s net position changed during the most recent fiscal year.  All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows.  Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods. 
 
The government-wide financial statements include all governmental activities that are principally supported by Developer contributions and assessments.  The District does not have any business-type activities.  The governmental activities of the District include the general government (management) and maintenance functions. 
 
Fund Financial Statements 
 
A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives.  The District, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. The District has one fund category: governmental funds. 
OVERVIEW OF FINANCIAL STATEMENTS (Continued) 
 
Governmental Funds 
 
Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements.  However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year.  Such information may be useful in evaluating a District’s near-term financing requirements. 
 
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements.  By doing so, readers may better understand the long-term impact of the District’s near-term financing decisions.  Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balance provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. 
 
The District maintains three individual governmental fund.  Information is presented separately in the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances for the general fund, debt service fund and capital projects fund, all of which are considered major funds.   
 
The District adopts an annual appropriated budget for its general fund.  A budgetary comparison schedule has been provided for the general fund to demonstrate compliance with the budget. 
 
Notes to the Financial Statements 
 
The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements.   
 
GOVERNMENT-WIDE FINANCIAL ANALYSIS  
 
As noted earlier, net position may serve over time as a useful indicator of an entity’s financial position.  In the case of the District, assets exceeded liabilities at the close of the most recent fiscal year. 
Key components of the District’s net position are reflected in the following table: 

The District’s net position reflects its investment in capital assets (e.g. land, land improvements, and infrastructure) less any related debt used to acquire those assets that is still outstanding.  These assets are used to provide services to residents; consequently, these assets are not available for future spending.  Although the District’s investment in capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.  
  
GOVERNMENT-WIDE FINANCIAL ANALYSIS (Continued) 
 
The restricted portion of the District’s net position represents resources that are subject to external restrictions on how they may be used.  The remaining balance of unrestricted net position may be used to meet the District’s other obligations. 
 
The District’s net position increased during the most recent fiscal year.  The majority of the increase represents the extent to which program revenues exceeded the cost of operations and depreciation expense.  
 
Key elements of the change in net position are reflected in the following table: 

As noted above and in the statement of activities, the cost of all governmental activities during the fiscal year ended September 30, 2022 was $7,951,573. The costs of the District’s activities were primarily funded by program revenues which are primarily comprised of assessments and Developer contributions. The increase in program revenues is mostly the result of the increase in Developer contributions. The increase in current fiscal year expenses is primarily the result of conveyances of completed infrastructure to other entities. Additional information related to Developer contributions and the District’s capital assets is reflected in the notes to the financial statements. 
 
GENERAL BUDGETING HIGHLIGHTS 
 
An operating budget was adopted and maintained by the governing board for the District pursuant to the requirements of Florida Statutes.  The budget is adopted using the same basis of accounting that is used in preparation of the fund financial statements.  The legal level of budgetary control, the level at which expenditures may not exceed budget, is in the aggregate.  Any budget amendments that increase the aggregate budgeted appropriations must be approved by the Board of Supervisors.  

CAPITAL ASSETS AND DEBT ADMINISTRATION 
 
Capital Assets   
 
At September 30, 2022, the District had $10,083,593 invested in capital assets for its governmental activities. In the government-wide financial statements depreciation of $216,999 has been taken, which resulted in a net book value of $9,866,594. More detailed information about the District’s capital assets is presented in the notes of the financial statements. 
 
Capital Debt 
 
At September 30, 2022, the District had $5,990,000 Bonds outstanding and $998,739 in lease payable. for its governmental activities.  More detailed information about the District’s capital debt is presented in the notes of the financial statements. 
 
ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND OTHER EVENTS 
 
The District anticipates that the general operations of the District will continue to increase.  
 
CONTACTING THE DISTRICT’S FINANCIAL MANAGEMENT 
  
This financial report is designed to provide our citizens, land owners, customers, investors and creditors with a general overview of the District’s finances and to demonstrate the District’s accountability for the financial resources it manages and the stewardship of the facilities it maintains.  If you have questions about this report or need additional financial information, contact the Old Hickory Community Development District’s Finance Department at 219 E. Livingston Street, Orlando, Florida, 32801. 
OLD HICKORY COMMUNITY DEVELOPMENT DISTRICT 
CITY OF ST. CLOUD, FLORIDA 
STATEMENT OF NET POSITION 
SEPTEMBER 30, 2022 

 

 

 

 

 

 

 

 
 
See notes to the financial statements 
OLD HICKORY COMMUNITY DEVELOPMENT DISTRICT 
CITY OF ST. CLOUD, FLORIDA 
STATEMENT OF ACTIVITIES 
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022 

 

 

 

 

 
See notes to the financial statements 
 
OLD HICKORY COMMUNITY DEVELOPMENT DISTRICT 
CITY OF ST. CLOUD, FLORIDA 
BALANCE SHEET 
GOVERNMENTAL FUNDS 
SEPTEMBER 30, 2022 

 

 

 

 

 

 

 

 
 
See notes to the financial statement 
OLD HICKORY COMMUNITY DEVELOPMENT DISTRICT 
CITY OF ST. CLOUD, FLORIDA 
RECONCILIATION OF THE BALANCE SHEET - GOVERNMENTAL FUNDS 
TO THE STATEMENT OF NET POSITION 
SEPTEMBER 30, 2022 

 

 

 

 

 

 

 

 

 

 

See notes to the financial statement 
OLD HICKORY COMMUNITY DEVELOPMENT DISTRICT 
CITY OF ST. CLOUD, FLORIDA 
STATEMENT OF REVENUES, EXPENDITURES, 
AND CHANGES IN FUND BALANCES  
GOVERNMENTAL FUNDS 
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022 

 

 

 

 

 
See notes to the financial statements 
OLD HICKORY COMMUNITY DEVELOPMENT DISTRICT 
CITY OF ST. CLOUD, FLORIDA 
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN 
FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES 
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022 

 

 

 

 

 

 

 

 
See notes to the financial statements 
OLD HICKERY COMMUNITY DEVELOPMENT DISTRICT 
CITY OF ST. CLOUD, FLORIDA 
NOTES TO FINANCIAL STATEMENTS 

NOTE 1 - NATURE OF ORGANIZATION AND REPORTING ENTITY 
 
Old Hickory Community Development District (the "District") was established by the City Council of City of St. Cloud’s approval of Ordinance No. 2020-09 effective on May 14, 2020 pursuant to the Uniform Community Development District Act of 1980, otherwise known as Chapter 190, Florida Statutes. The Act provides among other things, the power to manage basic services for community development, power to borrow money and issue bonds, and to levy and assess non-ad valorem assessments for the financing and delivery of capital infrastructure.   
 
The District was established for the purposes of financing and managing the acquisition, construction, maintenance and operation of a portion of the infrastructure necessary for community development within the District.  
 
The District is governed by the Board of Supervisors ("Board"), which is composed of five members.  The Supervisors are elected on an at large basis by the owners of the property within the District. The Board exercises all powers granted to the District pursuant to Chapter 190, Florida Statutes. As of September 30, 2022, all of the Board members are affiliated with Lennar Homes (“Developer”). 
 
The Board has the responsibility for: 
1.   Allocating and levying assessments. 
2. Approving budgets. 
3. Exercising control over facilities and properties. 
4. Controlling the use of funds generated by the District. 
5. Approving the hiring and firing of key personnel. 
6. Financing improvements. 
 
The financial statements were prepared in accordance with Governmental Accounting Standards Board (“GASB”) Statements.  Under the provisions of those standards, the financial reporting entity consists of the primary government, 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.  There are no entities considered to be component units of the District; therefore, the financial statements include only the operations of the District.  
 
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
 
Government-Wide and Fund Financial Statements 
The basic financial statements include both 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 primary government.  For the most part, the effect of interfund 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 is 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 who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment; operating-type special assessments for maintenance and debt service are treated as charges for services and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Other items not included among program revenues are reported instead as general revenues. 
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 
 
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.  Assessments are recognized as revenues in the year for which they are levied.  Grants and similar items are to be 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 revenues to be available if they are collected within 60 days of the end of the current fiscal period.  Expenditures are recorded when a liability is incurred, as under accrual accounting.  However, debt service expenditures including lease liabilities are recorded only when payment is due. 
 
Assessments 
Assessments are non-ad valorem assessments on benefited property within the District. Operating and maintenance assessments are based upon the adopted budget and levied annually at a public hearing of the District.  Debt service assessments are levied when Bonds are issued and assessed and collected on an annual basis.  The District may collect assessments directly or utilize the uniform method of collection under Florida Statutes.  Direct collected assessments are due as determined by annual assessment resolution adopted by the Board of Supervisors.  Assessments collected under the uniform method are mailed by the County Tax Collector on November 1 and due on or before March 31 of each year.  Property owners may prepay a portion or all of the debt service assessments on their property subject to various provisions in the Bond documents. 
 
Assessments and interest associated with the current fiscal period are considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period.  The portion of assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period.  
 
The District reports the following major governmental fund: 
 
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 Fund 
The debt service fund is used to account for the accumulation of resources for the annual payment of principal and interest on long-term debt. 
 
Capital Projects Fund    
This fund accounts for the financial resources to be used for the acquisition or construction of major infrastructure within the District. 
 
As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. 
 
When both restricted and unrestricted resources are available for use, it is the government’s policy to use restricted resources first for qualifying expenditures, then unrestricted resources as they are needed. 

 

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 
 
Assets, Liabilities and Net Position or Equity 
 
Restricted Assets 
These assets represent cash and investments set aside pursuant to Bond covenants or other contractual restrictions.   
 
Deposits and Investments 
The District’s cash and cash equivalents are considered to be cash on hand and demand deposits (interest and non-interest bearing). 
 
The District has elected to proceed under the Alternative Investment Guidelines as set forth in Section 218.415 (17) Florida Statutes.  The District may invest any surplus public funds in the following: 

a) The Local Government Surplus Trust Funds, or any intergovernmental investment pool authorized pursuant to the Florida Interlocal Cooperation Act; 

b) Securities and Exchange Commission registered money market funds with the highest credit quality rating from a nationally recognized rating agency; 

c) Interest bearing time deposits or savings accounts in qualified public depositories; 

d) Direct obligations of the U.S. Treasury. 

Securities listed in paragraph c and d shall be invested to provide sufficient liquidity to pay obligations as they come due.   
 
The District records all interest revenue related to investment activities in the respective funds.  Investments are measured at amortized cost or reported at fair value as required by generally accepted accounting principles.  
 
Prepaid Items 
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. 
 
Capital Assets 
Capital assets which include property, plant and equipment, and infrastructure assets (e.g., roads, sidewalks and similar items) are reported in the government activities columns in the government-wide financial statements.  Capital assets are defined by the government as assets with an initial, individual cost of more than $5,000 and an estimated useful life in excess of two years.  Such assets are recorded at historical cost or estimated historical cost (except for intangible right-to-use lease assets, the measurement of which is discussed below) if purchased or constructed.  Donated capital assets are recorded at acquisition value at the date of donation. 
 
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. 
 
Property, plant and equipment including the right to use leased equipment of the District are depreciated/amortized using the straight-line method over the following estimated useful lives: 

Assets 	Years 	
Stormwater system 	30 	
Landscape & Hardscape 	20 	
Right-to-use leased equipment 	20 	

 
In the governmental fund financial statements, amounts incurred for the acquisition of capital assets are reported as fund expenditures.  Depreciation expense is not reported in the governmental fund financial statements.  

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 
 
Assets, Liabilities and Net Position or Equity (Continued) 
 
Leases 
The District is a lessee for a noncancellable lease of equipment. The District recognizes a lease liability and an intangible right-to-use lease asset (lease asset) in the government-wide financial statements. The District recognizes lease liabilities with an initial, individual value of $5,000 or more. 
 
At the commencement of a lease, the District initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made. The lease asset is initially measured as the initial amount of the lease liability, adjusted for lease payments made at or before the lease commencement date, plus certain initial direct costs. Subsequently, the lease asset is amortized on a straight-line basis over its useful life. 
 
Key estimates and judgments related to leases include how the District determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments. The District uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not provided, the District generally uses its estimated incremental borrowing rate as the discount rate for leases. 
 
The lease term includes the noncancellable period of the lease. Lease payments included in the measurement of the lease liability are composed of fixed payments and purchase option price that the District is reasonably certain to exercise. 
 
The District monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease asset and liability if certain changes occur that are expected to significantly affect the amount of the lease liability. Lease assets are reported with other capital assets and lease liabilities are reported with long term debt on the statement of net position. 
 
Unearned Revenue 
Governmental funds report unearned revenue in connection with resources that have been received, but not yet earned. 
 
Long-Term Obligations 
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.  Bonds payable are reported net of applicable premiums or discounts.  Bond issuance costs are expensed when incurred.   
 
In the fund financial statements, governmental fund types recognize premiums and discounts, as well as issuance costs, during the current period.  The face amount of debt issued is reported as other financing sources.  Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses.  Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. 
 
Deferred Outflows/Inflows of Resources   
In addition to assets, the statement of financial position will sometimes 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. 
 
In addition to liabilities, the statement of financial position will sometimes 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.   
  
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 
 
Assets, Liabilities and Net Position or Equity (Continued) 
 
Fund Equity/Net Position 
In the fund financial statements, governmental funds report non spendable and restricted fund balance for amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose.  Assignments of fund balance represent tentative management plans that are subject to change. 
 
The District can establish limitations on the use of fund balance as follows:  
 
Committed fund balance – Amounts that can be used only for the specific purposes determined by a formal action (resolution) of the Board of Supervisors. Commitments may be changed or lifted only by the Board of Supervisors taking the same formal action (resolution) that imposed the constraint originally.  Resources accumulated pursuant to stabilization arrangements sometimes are reported in this category.   
 
Assigned fund balance – Includes spendable fund balance amounts established by the Board of         Supervisors that are intended to be used for specific purposes that are neither considered restricted nor committed.  The Board may also assign fund balance as it does when appropriating fund balance to cover differences in estimated revenue and appropriations in the subsequent year’s appropriated budget.  Assignments are generally temporary and normally the same formal action need not be taken to remove the assignment.   
 
Fund Equity/Net Position (Continued) 
The District first uses committed fund balance, followed by assigned fund balance and then unassigned fund balance when expenditures are incurred for purposes for which amounts in any of the unrestricted fund balance classifications could be used. 
 
Net position is the difference between assets and deferred outflows of resources less liabilities and deferred inflows of resources. Net position in the government-wide financial statements are categorized as net investment in capital assets, restricted or unrestricted.  Net investment in capital assets represents net position related to infrastructure and property, plant and equipment.  Restricted net position represents the assets restricted by the District’s Bond covenants or other contractual restrictions. Unrestricted net position consists of the net position not meeting the definition of either of the other two components. 
 
Other Disclosures 
 
Use of Estimates 
The preparation of financial statements in conformity with 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 3 - BUDGETARY INFORMATION 
 
The District is required to establish a budgetary system and an approved Annual Budget.  Annual Budgets are adopted on a basis consistent with generally accepted accounting principles for the general fund.  All annual appropriations lapse at fiscal year-end. 
 
The District follows these procedures in establishing the budgetary data reflected in the financial statements. 
 
a) Each year the District Manager submits to the District Board a proposed operating budget for the fiscal year commencing the following October 1.  
b) Public hearings are conducted to obtain comments. 
c) Prior to October 1, the budget is legally adopted by the District Board. 
d) All budget changes must be approved by the District Board. 
e) The budgets are adopted on a basis consistent with generally accepted accounting principles. 
f) Unused appropriations for annually budgeted funds lapse at the end of the year. 
 
NOTE 4 – DEPOSITS AND INVESTMENTS  
 
Deposits 
The District’s cash balances were entirely covered by federal depository insurance or by a collateral pool pledged to the State Treasurer.  Florida Statutes Chapter 280, "Florida Security for Public Deposits Act", requires all qualified depositories to deposit with the Treasurer or another banking institution eligible collateral equal to various percentages of the average daily balance for each month of all public deposits in excess of any applicable deposit insurance held.  The percentage of eligible collateral (generally, U.S. Governmental and agency securities, state or local government debt, or corporate bonds) to public deposits is dependent upon the depository's financial history and its compliance with Chapter 280.  In the event of a failure of a qualified public depository, the remaining public depositories would be responsible for covering any resulting losses. 
 
Investments 
The District’s investments were held as follows at September 30, 2022:  

Credit risk – For investments, credit risk is generally the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment.  This is measured by the assignment of a rating by a nationally recognized statistical rating organization.  Investment ratings by investment type are included in the preceding summary of investments. 
 
Concentration risk – The District places no limit on the amount the District may invest in any one issuer.   
 
Interest rate risk – The District does not have a formal policy that limits investment maturities as a means of managing exposure to fair value losses arising from increasing interest rates.   
 
However, the Bond Indenture limits the type of investments held using unspent proceeds. 
 
Fair Value Measurement – When applicable, the District measures and records its investments using fair value measurement guidelines established in accordance with GASB Statements.  The framework for measuring fair value provides a fair value hierarchy that prioritizes the inputs to valuation techniques.  

NOTE 4 – DEPOSITS AND INVESTMENTS (Continued) 
 
Investments (Continued) 
 
These guidelines recognize a three-tiered fair value hierarchy, in order of highest priority, as follows: 

• Level 1:  Investments whose values are based on unadjusted quoted prices for identical investments in active markets that the District has the ability to access; 

• Level 2:  Investments whose  inputs - other than quoted market prices - are observable either directly or indirectly; and, 

• Level 3:  Investments whose inputs are unobservable. 

The fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the entire fair value measurement. Valuation techniques used should maximize the use of observable inputs and minimize the use of unobservable inputs. 
 
Money market investments that have a maturity at the time of purchase of one year or less and are held by governments other than external investment pools should be measured at amortized cost. Accordingly, the District’s investments have been reported at amortized cost above.    
 
NOTE 5 – CAPITAL ASSETS 
 
Capital asset activity for the fiscal year ended September 30, 2022 was as follows:  

The infrastructure intended to serve the District was estimated at a total cost of approximately $16.8 million. The infrastructure includes roadways, storm drainage, potable water, sanitary sewer, and land improvements. A portion of the project costs was expected to be financed from the Series 2020 Bonds with the remainder to be funded by the Developer and conveyed to the District. Upon completion, the public roads, water and sanitary sewer are to be conveyed to others for ownership and maintenance responsibilities. During the current fiscal year, the District engineer declared the project complete. 
 
During the current fiscal year, the Developer transferred assets valued at $9,580,279 to the District. This amount is reflected in capital grants and contributions in the statement of activities. Additionally, assets conveyed to others for ownership and maintenance responsibilities totaled $7,248,167. 
  
NOTE 6 – LONG TERM DEBT 
 
Series 2020 
During October 2020, the District issued $6,245,000 of Special Assessment Bonds, Series 2020 consisting of Term Bonds due ranging from June 15, 2021 to June 15, 2050 and fixed interest rates ranging from 2.5% to 4.0%. The Bonds were issued to finance the acquisition and construction of certain improvements for the benefit of the District.  Interest is to be paid semiannually on each June 15 and December 15, commencing December 15, 2020 and the principal on the bonds is to be paid serially commencing June 15,2021 through June 15, 2050.  
 
The Series 2020 Bonds are subject to optional redemption, mandatory sinking fund and extraordinary mandatory redemption at the times, in the amounts, and at the redemption prices more fully described in the Redemption Provisions as outlined in the Bond Indenture. 
 
The Bond Indenture established a debt service reserve requirement as well as other restrictions and requirements relating principally to the use of proceeds to pay for the infrastructure improvements and the procedures to be followed by the District on assessments to property owners.  The District agrees to levy special assessments in annual amounts adequate to provide payment of debt service and to meet the reserve requirements. The District was in compliance with the requirements at September 30, 2022. 
 
Long-term Debt Activity 
Changes in long-term liability activity for the fiscal year ended September 30, 2022 were as follows:  

 
At September 30, 2022, the scheduled debt service requirements on the long-term debt were as follows: 

NOTE 7 - LEASES 
 
In the current fiscal year, the District entered into certain leases as a lessee for the use of streetlights that will terminate on March 31, 2042. As of September 30, 2022, the value of the lease liability was $998,739. The District is required to make total monthly fixed payments of $6,154. The value of the right-to-use asset as of September 30, 2022 was $1,015,490 with an accumulated amortization of $25,387. At the end of the lease term, the District may elect to execute a new agreement based on current estimated replacement cost. The Lessor will retain ownership of the streetlights. 

NOTE 7 – LEASES (Continued) 
 
Minimum lease payments for years ending after September 30, 2022 are as follows: 

NOTE  8 - DEVELOPER TRANSACTIONS 
 
The Developer owns a portion of land within the District; therefore, assessment revenues in the general and debt service funds include the assessments levied on those lots owned by the Developer. Also see Note 5 above for other Developer transactions. 
 
NOTE 9 - CONCENTRATION 
 
The District’s activity is dependent upon the continued involvement of the Developer and major landowners, the loss of which could have a material adverse effect on the District’s operations. 
 
NOTE 10 - MANAGEMENT COMPANY 
 
The District has contracted with a management company to perform services which include financial and accounting advisory services. Certain employees of the management company also serve as officers of the District. Under the agreement, the District compensates the management company for management, accounting, financial reporting, computer and other administrative costs. 
 
NOTE 11 - RISK MANAGEMENT 
 
The District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; and natural disasters. The District has obtained commercial insurance from independent third parties to mitigate the costs of these risks; coverage may not extend to all situations. There were no settled claims since inception of the District. 

 

OLD HICKORY COMMUNITY DEVELOPMENT DISTRICT 
CITY OF ST. CLOUD, FLORIDA 
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN 
FUND BALANCE - BUDGET AND ACTUAL – GENERAL FUND 
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022 

 

 

 

 

 
 
See notes to required supplementary information 
OLD HICKORY COMMUNITY DEVELOPMENT DISTRICT 
CITY OF ST. CLOUD, FLORIDA 
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION 

The District is required to establish a budgetary system and an approved Annual Budget for the general fund. The District’s budgeting process is based on estimates of cash receipts and cash expenditures which are approved by the Board.  The budget approximates a basis consistent with accounting principles generally accepted in the United States of America (generally accepted accounting principles). 
 
The legal level of budgetary control, the level at which expenditures may not exceed budget, is in the aggregate.  Any budget amendments that increase the aggregate budgeted appropriations must be approved by the Board of Supervisors.   

 

 

 

 

 

 

 

 

 

 

 

 

 

 
 
OLD HICKORY COMMUNITY DEVELOPMENT DISTRICT 
CITY OF ST. CLOUD, FLORIDA 
OTHER INFORMATION – DATA ELEMENTS  
REQUIRED BY FL STATUTE 218.39(3)(C) 
UNAUDITED 

INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL 
REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT  
OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH  
GOVERNMENT AUDITING STANDARDS 
 
To the Board of Supervisors  
Old Hickory Community Development District 
City of St. Cloud, Florida  
 
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities and each major fund of Old Hickory Community Development District, City of St. Cloud, Florida (“District”) as of and for the fiscal year ended September 30, 2022, and the related notes to the financial statements, which collectively comprise the District’s basic financial statements, and have issued our opinion thereon dated June 19, 2023. 
Report on Internal Control Over Financial Reporting  
In planning and performing our audit of the financial statements, we considered the District’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the District’s internal control. Accordingly, we do not express an opinion on the effectiveness of the 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 entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.   
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.   
Report on Compliance and Other Matters  
As part of obtaining reasonable assurance about whether the District’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion.  The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.   

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

June 19, 2023 

 
INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE WITH THE  
REQUIREMENTS OF SECTION 218.415, FLORIDA STATUTES, REQUIRED BY  
RULE 10.556(10) OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA 
 
To the Board of Supervisors  
Old Hickory Community Development District 
City of St. Cloud, Florida 
 
We have examined Old Hickory Community Development District, City of St. Cloud, Florida’s (“District”) compliance with the requirements of Section 218.415, Florida Statutes, in accordance with Rule 10.556(10) of the Auditor General of the State of Florida as of and for the fiscal year ended September 30, 2022. Management is responsible for District’s compliance with those requirements. Our responsibility is to express an opinion on 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 the District complied, in all material respects, with the specified requirements referenced in Section 218.415, Florida Statutes. An examination involves performing procedures to obtain evidence about whether the District complied with the specified 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 the District’s compliance with specified requirements. 
 
We are required to be independent and to meet our other ethical responsibilities in accordance with relevant ethical requirements relating to the examination engagement. 
 
In our opinion, the District complied, in all material respects, with the aforementioned requirements for the fiscal year ended September 30, 2022. 
 
This report 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, management, and the Supervisors of Old Hickory Community Development District, City of St. Cloud, Florida and is not intended to be and should not be used by anyone other than these specified parties.    

 
June 19, 2023 

 

 

 

 

 
MANAGEMENT LETTER PURSUANT TO THE RULES OF 
THE AUDITOR GENERAL FOR THE STATE OF FLORIDA 
 
To the Board of Supervisors 
Old Hickory Community Development District 
City of St. Cloud, Florida 
 
Report on the Financial Statements 
 
We have audited the accompanying basic financial statements of Old Hickory Community Development District, City of St. Cloud, Florida ("District") as of and for the fiscal year ended September 30, 2022, and have issued our report thereon dated June 19, 2023. 
 
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 on Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance with Government Auditing Standards; and Independent Auditor’s Report on an examination conducted in accordance with AICPA Professional Standards, AT-C Section 315, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports, which are dated June 19, 2023, should be considered in conjunction with this management letter.   
 
Purpose of this Letter 
 
The purpose of this letter is to comment on those matters required by Chapter 10.550 of the Rules of the Auditor General for the State of Florida.  Accordingly, in connection with our audit of the financial statements of the District, as described in the first paragraph, we report the following: 
 
I. Current year findings and recommendations. 
II. Status of prior year findings and recommendations. 
III. Compliance with the Provisions of the Auditor General of the State of Florida. 
 
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, as applicable, management, and the Board of Supervisors of Old Hickory Community Development District, City of St. Cloud, Florida and is not intended to be and should not be used by anyone other than these specified parties.    
  
We wish to thank Old Hickory Community Development District, City of St. Cloud, Florida and the personnel associated with it, for the opportunity to be of service to them in this endeavor as well as future engagements, and the courtesies extended to us. 

 
June 19, 2023 

REPORT TO MANAGEMENT 

I. CURRENT YEAR FINDINGS AND RECOMMENDATIONS  
 
 None 
 
II. PRIOR YEAR FINDINGS AND RECOMMENDATIONS  
  
None 
 
III. COMPLIANCE WITH THE PROVISIONS OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA 
 
Unless otherwise required to be reported in the auditor’s report on compliance and internal controls, the management letter shall include, but not be limited to the following: 

1. A statement as to whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report.   

There were no significant findings and recommendations made in the preceding annual financial audit report for the fiscal year ended September 30, 2021. 

2. Any recommendations to improve the local governmental entity's financial management. 

There were no such matters discovered by, or that came to the attention of, the auditor, to be reported for the fiscal year ended September 30, 2022. 

3. 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.    

There were no such matters discovered by, or that came to the attention of, the auditor, to be reported, for the fiscal year ended September 30, 2022. 

4. The name or official title and legal authority of the District are disclosed in the notes to the financial statements. 

5. The District has not met one or more of the financial emergency conditions described in Section 218.503(1), Florida Statutes.  

6. We applied financial condition assessment procedures and no deteriorating financial conditions were noted as of September 30, 2022. It is management’s responsibility to monitor 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. 

7. Management has provided the specific information required by Section 218.39(3)(c) in the Other Information section of the financial statements on page 24.