LAKEWOOD RANCH STEWARDSHIP DISTRICT

AUDITED FINANCIAL STATEMENTS

FOR THE FISCAL YEAR ENDED

September 30, 2017

SHINN& Co

CPAS ANO BUSINESS CONSULTANTS

LAKEWOOD RANCH STEWARDSHIP DISTRICT

FOR THE FISCAL YEAR ENDED

September 30, 2017

TABLE OF CONTENTS

	eABE	
INDEPENDENT AUDITOR'SREPORT	1 -  2	
MANAGEMENT'SDISCUSSION 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	
Statement of Revenues, Expenditures, and Changes in Fund Balances -		
Governmental Funds	1O	
Reconciliation of the Statement of Revenues, Expenditures, and		
Changes in Fund Balances - Governmental Funds		
to the Statement of Activities	11	
Statement of Revenues, Expenditures, and Changes in Fund Balances -		
Budget and Actual -  General Fund	12	
Notes to the Financial Statements	13 - 23	
INDEPENDENT AUDITOR'SREPORT 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	24 - 25	
INDEPENDENT ACCOUNTANT'SREPORT ON COMPLIANCE WITH FLORIDA STATUTES 218.415 -		
INVESTMENT OF PUBLIC FUNDS	26	
MANAGEMENT LETTER	27- 28	

SHINN & CO

SHINN& Co
CPAS AND BUSINESS CONSULTANTS

1001 3rd AVenue West Suite 500 I Bradenton. FL 34205 50 Central Avenue Suite 910 I Sarasota, FL 34236

(T) 941.747.0500 I (F) 941 .746.0202 www.shlnnandco.com

INDEPENDENT AUDITOR'SREPORT

Board of Supervisors

Lakewood Ranch Stewardship Distdct

Report on the Financial Statements

We have audited the accompanying financial statements of the governmental activities, and each major fund of Lakewood Ranch Stewardship District ("District"), as of and for the year then ended September 30, 2017, and the related notes to the financial statements. which collectively comprise the District'sbasic 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 preparatron 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 of material misstatement.

An audit involves performing procedures to obtain 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' 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.

Shinn & Company. l lC is a rnernbet of Prtvare Companies Practice Section I American Institute of Certified Public Accountants I Florida Institute of Certified Public Accountants

Opinion

In our opinion, the finandal statements referred to above present fairly, in all material respects. the respective financial position of the governmental activities, and each major fund of Lakewood Ranch Stewardship District. as of September 30, 2017, and the respective changes in financial position and the budgetary comparison for the General Fund for the year then ended in accordance with accounting principles generally accepted in the United States of America.

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 6 and page 12 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 consist ed 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 January 29, 2018, 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 to describe the scope of our testing of internal control over financial reporting and compliance and the result of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the District'sinternal control over financia l reporting and compliance.

/2,J..;.,- t ~ Ilk.-

SHINN AND COMPANY, LLC

CERTIFIED PUBLI C ACCOUNTANTS

Bradenton, Florida

January 29. 2018

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MANAGEMENT'S DISCUSSION AND ANALYSIS

The following is a narrative overview and analysis of the financial activities of the Lakewood Ranch Stewardship District ("District') for the fiscal year ended September 30, 2017.

Financial Highlights and Analysis of Financial Statements

•	As of September 30, 2017 and 2016, the total assets of the District were $300,020,030, and $227,782,927, respectively, an increase of $72,237,703. The primary factors for the change were

the approximate $78.8 million in net proceeds from three new bond issues and $7 .37 million in net proceeds from one new line of credit less approximately $7,85 million in depreciation charges.

•	As of September 30, 2017 and 2016, the total liabilities of the District were $293,154.797 and $228,678,987, respectively, an increase of $64,475,210. The primary factor for the change was the approximate $78.8 million of debt from the new three new bond issues and $1 .37 million of debt from the new line of credit less approximately $17.2 million in bond principal payments.

•	In the government-wide financial statements (accrual basis), the District's assets exceeded liabilities by $6,865,533 as of September 30, 2017 while liabilities exceeded assets by $896,060 as of September 30, 2016.

•	In the governmental funds (modified accrual basrs), the District's fund balance totaled $128,333,503 and $95.735.172 as of September 30, 2017 and 207 6, respectively. The primary factor for both of these variances was the change in assets and liabilities as discussed above.

Overview of the Financial Statements

This discussion and analysis is intended to serve as an introduction to the District's basic financial statements. The District'sbasic financial statements comprise three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements.

Government-wide financial statements - The government-wide financial statements are designed to provide readers with a broad overview of the District'sfinances. in a manner similar to a private-sector business.

The statement of net position presents information on all of the District'sassets and liabilities, with the difference between the two 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 District'snet 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 District'sgovernmental activities include general government, physical environment. and interest on long-term debt.

The government-wide financial statements can be found on pages 7 and 8 of this report.

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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 uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the District'sfunds are governmental funds.

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 government'snear-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'snear-term financing decisions. Both the governmental fund balance sheet and governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.

The District maintains three individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the general fund, the debt service fund and the capital projects fund, all of which are considered to be major funds.

The basic governmental fund financial statements can be found on pages 9 to 12 of this report.

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. The notes to the financial statements can be found on pages 13 through 23 of this report.

Government-Wide Financial Analysis					
Statement of Net Position		2077		2016	
Current and other assets	$	133,237,442	$	97,949,872	
Capital assets		166,782,588		129,833,055	
Total assets	$	300,020,030	$	227,782,927	
Curent liabilities	$	12,013,027	$	6,099,700	
Long-term liabilities		287,147,170		222,579,287	
Total liabilities	$	293,154,197	$	228,678,987	
Net investment in capital assets	$	(127,467,670)	$	(96,637,232)	
Restricted		132,702,654		97,749,740	
Unrestricted		(4,369,157)		(2.013,968)	
Total net position	$	6,865,833	$	(896,060)	

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Current and other assets increased by $35.3 million primarily due to investments held as a result of bond and line of credit proceeds less capital outlay for the Villages of Lakewood Ranch South, Lakewood Centre Northwest, Del Webb, Northeast Sector, and Lakewood Centre South infrastructure projects.

The primary changes in the capital assets increase of approximately $36.9 million were the completion of Lakewood Centre Northwest infrastructure improvements, and the infrastructure improvements on the Del Webb, Villages of Lakewood Ranch South, Northeast Sector, and Lakewood Centre South projects of approximately $44.8 million less approximately $7.9 million of depreciation expense.

Total liabilities increased by approximately $64.5 million, due primarily to new bonds issued Del Webb ($14.8 million), Lakewood National & Polo Run ($49.5 million), Lake Club ($14.5 million) and a new line of credit for the Northeast Sector ($1 .6 million) less scheduled debt service payments made ($17.2 million).

The net investment in capital assets of $(7 27,467,670) does not take into account the $732,702,654 of existing funds restricted for both capital improvements and debt service.

Statement of Activities		2017		2016		
Program revenues	s					
Charges for services		19,380,798	$	7,101,813		
Operating grants and contributions		17,489,033		10,594,459		
General revenues						
Investment income		479,062		729,476		
Non advalorem assessments		1,838,200		1,331,605		
Total revenues		33,187,093		19,157,293		
Expenses						
General government		418,794		346,899		
Physical environment		9,883,444		8,342,726		
Interest on long-term debt		15,1 22,962		10,670,065		
Total expenses		25,425,200		19,359,690		
Changes in net position		7,761,893		(202,397)		
Net position - beginning		(896,060)	s	(693,663)		
Net position - ending	$	6,865,833		~896,060)		

Charges for services consist of lot sale proceeds and operating grants and contributions consists of Developer cash funding contributions. As the statement of activities is on an accrual basis, the expenses include $4,361 ,197 of accounts payable with payments made in October 2017 from additional Program revenues received.

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Capital Assets

During the year ended September 30, 2077, the District had a gross infrastructure increase of approximately $44.8 million. Primary capital projects continuing were the Lakewood Centre North, Villages of Lakewood Ranch South, Del Webb, Northeast Sector, and Lakewood Centre South projects, Additional information on the District'scapital assets can be found in Note 4 of this report.

Debt Administration

During t he year ended September 30, 2017, the District issued three new bonds, Del Webb ($14.8 million), Lakewood National & Polo Run ($49.5 million,) Lake Club ($14.5 million) and a line of credit for the Northeast Sector ($1.6 million). The Lake Club Series 2017 Bond'sproceeds were used the refinance the existing 2006 Lake Club Series A Bond. Approximately $17.2 million was made in repayments of amounts due on the various issues of the District.

Additional information on the District'slong-term debt can be found in Note 5 of this report.

Budgetary Highlights

The District set its annual budget for the District expecting to be operational for the entire year. Assessments came in approximately $425,000 higher than anticipated, and landowner funding did not meet expectations by approximately $761,000. The variance of the budgeted expenditures compared with actual results was $336,000 lower than anticipated, within the various areas within District operations. There were no budget amendments during the year.

Economic Factors and Year 2018 Budget

The District is anticipating increased interest in the various developments and projects currently underway. Next year'sbudget main components will be maintenance of the project areas, administration of the District, and continued infrastructure acquisition and improvements on capital projects begun in 2015, 2076and2017.

Requests for Information

This financial report is designed to provide a general overview of the District's finances for all those with an interest in them. Questions concerning any of the information provided in this report or requests for additional information should be addressed to Lakewood Ranch Stewardship District, Attn: Supervisor, 74400 Covenant Way, Bradenton, Florida 34202.

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CPASAHO 8USlt1USC0t49UI.Til.141S

BASIC FINANCIAL STATEMENTS

SHINN& CO

CPAS ANO BUSINESS CONSOt.TANTS

LAKEWOOD RANCH STEWARDSHIP DISTRICT

STATEMENT OF NET POSITION

September 30, 2017

		Governmental		
		Activities		
	ASSETS			
Current Assets:	s			
Cash and cash equivalents		240,541		
Cash and cash equivalents - restricted		132.702,654		
Total current assets		132,943,195		
Other Assets:				
Deposits		3,000		
Accrued interest receivable		7,237		
Other receivables		18,670		
Due from Land Owner		271,340		
Total other assets		294,247		
Capital Assets:				
Depreciable assets:				
District infrastructure		l 65,396,121		
Less accumulated depreciation		(51,324,163)		
Net depreciable assets		11 4,071,958		
Non-depreciable assets:				
Construction in progress		52,710,630		
Total capital assets		166.782,588		
Total assets		300,020,030		
	LIABILITIES			
Current Liabilities:				
Accounts payable		4,900,939		
Line of credit		1,675,088		
Bonds payable, current portion		5,497,000		
Total current liabilities		12,073,027		
Non-current Liabilities:				
Bonds payable, long-term portion		287,141,170		
Total liabilities		293,154,197		
	NET POSITION			

Net investment in capital assets

Restricted for debt seivice

Restricted for capital projects

Unrestricted

Total net position

See notes to the financial statements.

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(121,467,670)

39,060,723

93,641,931

(4,369,151) s 6,865,833

SHINN& CO

C:PAS AHO Bl)StN£$S C0~$lJUA~lTS

Functions/ Programs

Primary government:

Governmental activities:

General government

Physical environment

Interest on long-term debt

Total governmental activities

LAKEWOOD RANCH STEWARDSHIP DISTRICT

STATEMENT OF ACTIVITIES

For The Fiscal Year Ended September 30, 2017

							Net (Expense)	
							Revenue and	
							Changes in	
				Program Revenues		Net Position	
			Charges	Operating	Capital			
			for	Grants and	Grants and		Governmental	
	Expenses		Services	Contributions	Contributions		Activities	
$	418,794	$	19,380,798	s 11,489,033	$	$	30,451,037	
	9,883,444						(9,883,444)	
	15,122,962						(15,122,962)	
s	25,425,200	$	19,380,798	s 11,489,033	$		5,444,631	
General revenues:							
Non advalorem assessments				1,838,200	
Investment income					479,062	
	Total general revenues				2,317,262	
Change in net position				7,761,893	
Net position - beginning				(896,060)	
Net position - ending				s	6,865,833	

See notes to the financial statements.

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cPAS ANO eus1~jE5S CONSUlT.\NlS

LAKEWOOD RANCH STEWARDSHIP DISTRICT

BALANCE SHEET - GOVERNMENTAL FUNDS

September 30, 2017

				Major Funds				Total		
				Debt		Capital	Governrnenta I		
		General		Service		Projects		Funds		
ASSETS										
Cash and cash equivalents	$	240,541	$		$		$	240,541		
Cash and cash equivalents · restricted				39,060,723		93,641,931		132,702,654		
Accrued interest receivable				1,237				1,237		
Other receivables		2.424		16,246				18,670		
Due from Land Owner		271,340						271,340		
Total assets	s	514,305	s	39,078,206	s	93,647 ,931	s	133,234.442		
LIABILITIES	s									
Accounts payable		496,598			$	4.404,347	$	4,900,939		
Total liabilities		496,598				4.404,341		4,900,939		
FUND BALANCES										
Unassigned reported in General fund		17.707						17,707		
Restricted reported in Debt service fund				39,078,206				39,078,206		
Restricted reported Capital projects fund						89,237,590		89,237,590		
Total fund balances		17.707		39,078,206		89,237,590		128,333,503		
Total liabilities and fund balances	$	514,305	s	39,078,206	$	93,641,931	s	133,234,442		
Amounts reported for governmental activities in the statement of net position are						
different because:										
Fund balance • governmental funds							$	128,333,503		
Capital assets used in governmental activities are not financial								
resources and therefore, are not reported in the funds						166,782,588		
Other long-term assets used in governmental activities are not financial						
resources and therefore, are not reported in the funds						3.000		
Certain liabilities are not due and payable in the current period								
and therefore are not reported in the funds.										
Bonds payable, net								(288,253,258)		
							$	6,865,833		

See notes to the financial statements.

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LAKEWOOD RANCH STEWARDSHIP DISTRICT

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -

GOVERNMENTAL FUNDS

For the Fiscal Year Ended September 30, 2017

			Major Funds				Total		
				Debt		Capital	Governmental		
		General		Service		Projects		Funds		
REVENUES					s					
Land owner funding contributions	$	611.340	$	5,376,726		5,560,967	$	11.489,033		
Assessments		7,838,200						1,838,200		
Investment income				109,699		369,363		479,062		
Allocated proceeds from Landowner lot sales				14,270.202				14,270,202		
Miscellaneous income				5,110,596				5,110,596		
Total revenues		2.449,540		24,807,223		5,930,330		33,187,093		
EXPENDITURES										
Current:										
General government		418,794						418,794		
Physical environment:										
Operations		2,030,746						2,030,746		
Debt service:										
Bond principal				17,215,000				17,215,000		
Bond interest				13.451,269				13.451.269		
Cost of issuance						1.478.415		1.478.415		
Capital outlay						44,802,231		44,802,231		
Total expenditures		2.449,540		30,666,269		46,280,646		79,396.455		
OTHER FINANCING SOURCES (USES)										
Transfers in				25.797,306		1,887		25,799,193		
Transfers out				(1,836,778)		(23,962.41 5)		(25.799, 193)		
Debt and loan proceeds (net)						78,810,693		78,870,693		
Total otherfinancing sources (uses)				23,960,528		54,850,165		78,870,693		
Net change in fund balances				18,101,482		14.499,849		32,601,337		
Fund balances - beginning		17,707		20,976,724		74.737.741		95,732,172		
Fund balances - ending	$	17.707	$	39,078,206	$	89,237,590	$	128,333,503		

See notes to the financial statements.

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LAKEWOOD RANCH STEWARDSHIP DISTRICT

RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND

BALANCES - GOVERNMENTAL FUNDS

TO THE STATEMENT OF ACTIVITIES

For the Fiscal Year Ended September 30, 2017

Amounts reported for governmental activities in the statement of activities are different because:			
Net change in fund balances - total governmental funds	$	32,601,331	
Governmental funds report capital outlays as expenditures, however, in the			
statement of activities. the cost of those assets is eliminated and capitalized			
as capital assets ($44,802,231). The total reflects depreciation expense			
for the current period ($7,852,698).		36,949,533	
The issuance of debt is reported as an other financing source,			
however, in the statement of net position these are treated as liabilities		(78,810,693)	
The repayment of the principal of long-term debt consumes the			
current financial resources of governmental funds.		17,215,000	
Amortization on discount of bonds		(193,278)	
Change in net position of governmental activities	$	7,761,893	

See notes to the financial statements.

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LAKEWOOD RANCH STEWARDSHIP DISTRICT STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - GENERAL FUND For the Fiscal Year Ended September 30, 2077

	Original and		
	Final		
	Budget		
REVENUES	s  7,372,572		
Landowner funding			
Assessments	1,412,920		
Total revenues	2,785,492		
EXPENDITURES			
Current:			
General government	473.701		
Physical environment:			
Operations	2,371,797		
Total expenditures	2,785,492		
NET CHANGE IN FUND BALANCES			
FUND BALANCES- BEGINNING OF YEAR			
FUND BALANCES - END OF YEAR	s		

s

s

Actual

617,340

1,838,200

2,449,540

418.794

2,030,746

2,449,540

17,707

17,707

s

s

Variance Positive (Negative)

(761,232)

425,280

(335,952)

54,907

281,045

335,952

77.707

17,707

See notes to the financial statements.

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LAKEWOOD RANCH STEWARDSHIP DISTRICT

NOTES TO THE FINANCIAL STATEMENTS

For the Fiscal Year Ended September 30, 2017

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of the significant accounting principles and policies used in the preparation of these basic financial statements.

REPORTING ENTITY

Lakewood Ranch Stewardship District is a local unit special purpose government created on June 17, 2005 under the "Lakewood Ranch Stewardship District Act." otherwise known as Chapter 2005-338, Florida Statutes. The District was established for the purpose 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. Ownership of land within the District entitles the owner to one vote per acre. The Board of Supervisors of the District exercises all powers granted to the District pursuant to Chapter 2005-338, amended by Chapter 2009-263, Florida Statutes. The District encompasses 23,255 acres of land located in Manatee County and Sarasota County, Florida.

The Board has the final responsibility for contracting for the services of consultants; borrowing money; adopting and enforcing rules and orders pursuant to the provisions of Chapter 120; holding, controlling and acquiring by donation, purchase or condemnation or dispose of any public easements; lease as lessor or assess to or from any person, firm, corporation, association or body; borrow money and issue bonds, certificates, warrants, notes, or other evidence of indebtedness; raise, by user charges or fees authorized by resolution of the board, amounts of money necessary for the conduct of District activities; assess and impose ad valorem taxes; determine, order, levy, impose, collect, and enforce maintenance taxes.

The financial statements were prepared in accordance with Governmental Accounting Standards Board ("GASS") Statement 34, and Statement 39, an amendment of GASB Statement 34. Under the provisions of those standards, the financial reporting entity consists of the primary government, organizations for which the District Board of Supervisors is considered to be financially accountable, and other organizations for which the District Board of Supervisors 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.

Government-Wide and Fund Financial Statements

The basic financia l 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 the non-fiduciary activities of the primary government

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LAKEWOOD RANCH STEWARDSHIP DISTRICT

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED

For the Fiscal Year Ended September 30, 2017

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED

Government-Wide and Fund Financial Statements - continued

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 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 .

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. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.

Government 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 ff 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 are recorded only when payment is due.

The government 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 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 general obligation debt.

Capital Projects Fund

The Capital Projects fund is used to account for the cost of construction of the infrastructure of 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'spolicy to use restricted resources first, then unrestricted resources, as they are needed.

14

SHINN& Co

LAKEWOOD RANCH STEWARDSHIP DISTRICT

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED

For the Fiscal Year Ended September 30, 2017

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED

Measurement Focus. Basis of Accounting and Financial Statement Presentation - continued

Assets. Liabilities and Net Assets or Equity

Restricted Assets

These assets represent cash and cash equivalents set aside pursuant to bond covenants or other contractual restrictions.

Deposits

The government'scash and cash equivalents are considered to be cash on hand and demand deposits,

Capital Assets

Major outlays for capital assets and improvements are capitalized as projects are constructed. District infrastructure is being depreciated over twenty years.

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, as well as insurance costs, are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of premiums or discounts.

In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond 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 issuance are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures,

Fund Balances

Governmental funds report fund balances are classified either as nonspendable, or as spendable. Spendable fund balances are further classified based on the extent to which there are external and internal constraints on the spending of these fund balances. These classifications are described as follows:

Nonspendable Fund Balance - Amounts that cannot be spent because they are not in spendable form or legally or contractually required to be maintained intact.

Restricted Fund Balance - Amounts that are constrained for specific purposes which are externally imposed by creditors, grantors, contributors, or laws or regulations or imposed by laws through constitutiona l provisions or enabling legislation.

Committed Fund Balance - Amounts that are constrained for specific purposes imposed by formal action of the highest level of decision making authority.

15

SHJNN& CO

LAKEWOOD RANCH STEWARDSHIP DISTRICT

NOTES TO THE FINANCIAL STATEMENTS -  CONTINUED

For the Fiscal Year Ended September 30, 207 7

NOTE 7 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -  CONTINUED

Assigned Fund Balance - Includes spendable fund balances intended to be used for specific purposes, but which are neither restricted nor committed.

Unassigned Fund Balance - Represents the residual fund balance within the General Fund, which has not been assigned to other funds and has not been restricted, committed, or assigned.

use of Estimates

The preparation of financial statements in conformity w ith generally accepted accounting principles requires management to make estimat es 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 expenses/expenditures during the reporting period. Actual results could differ from those estimates.

Budgetary Information

The District is required to establish a budgetary system and an approved Annual Budget. Annual Budgets are adopted on a basis consistent w ith generally accepted accounting principles for all governmental funds except the capital projects fund, which adopts a project-length budget.

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 taxpayer 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)	Unused appropriations for annually budgeted funds lapse at the end of the year.

76

SHINN& CO

CP.-.S ~D BOS1N£SS CONSUlT4.rflS

LAKEWOOD RANCH STEWARDSHIP DISTRICT

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED

For the Fiscal Year Ended September 30, 2017

NOTE 2 - CASH AND CASH EQUIVALENTS

The District'scash balances are 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.

The District has not forma lly adopted a written investment policy. According to Florida Statutes 218.415(17) the District is authorized to invest in the following:

(a)	The Local Government Surplus Funds Trust Fund, or any intergovernmental investment pool authorized pursuant to the Florida lnterlocal Cooperation Act. as provided in §163.01 .
(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 qualif ied public depositories, as defined in §280.02.

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

The securities listed in (c) and (d) above must be invested such as to provide sufficient liquidity to pay obligations as they come due.

As of September 30, 2017, the District has the following balances in cash equivalents:

Money market accounts	$	132,702,654

NOTE 3 -  RISK MANAGEMENT

The District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; and natural disasters. These risks are covered by commercial insurance from independent third parties. There have been no significant reductions in insurance coverage from the prior year. No settlements have exceeded the District's insurance coverage for each of the past three fiscal years.

77

SHINN & CO

C':PASAND BUSIHESS COHSllUAN1S

LAKEWOOD RANCH STEWARDSHIP DISTRICT

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED

For the Fiscal Year Ended September 30, 2017

NOTE 4 - CAPITAL ASSETS

Capital asset activity for the fiscal year ended September 30, 2017 was as follows:

		Beginning						Ending		
		Balance		Increases		Decreases		Balance		
Captial Assets, not being depreciated:										
Construction in Progress	s									
Public Roads		5,103,187	$	75,829,702	$	6,303,424	$	14,629,465		
Signals/ Intersections				16,435				16,435		
Bridges Tunnels		652,888		949,411		775,911		826,388		
Lighting		32,898		2,906,719		1,560,225		7,379,392		
Drainage		2,533,317		6,738,644		4,015,669		5,256,292		
Irrigation		1,253,824		323,l 00		1,302,116		274,808		
Other Utilities		1,590,877		879,145		248,840		2,221,176		
Landscaping		980,695		2,885,476		7,558,822		2,307,349		
Hardscape		51,089		151,564		400		202,253		
Sanitary Sewer		1,910,789		579,890		1,978,785		451,294		
Potable Water		1,975,177		2,281,351		1,929,063		2,327,465		
Earthwork, Clearing & Fill		4,409,028		5,178,234		2,083,700		7,503,562		
Engineering & Surveying		7,612,891		4,270,074		2,583,879		9,299,086		
Mitigation/Littoral Plantings		1.400		32,058				33,458		
Permit Fees & Bonding		330,543		154,903		224,070		261,376		
Lake Dredging		7,328,460						1,328,460		
Other Infrastructure		2,706,845		1,685,525				4,392,370		
Total District Infrastructure · CIP		32,473,302		44,802,231		24,564,904		52,710,630		
Capital Assets, being depreciated:										
District infrastructure		140,831,217		24,564,904				1 65,396,121		
Total depreciable assets		140,831,217		24,564,904				165,396,121		
Less accumulated depreciation for:										
District infrastructure		43,471.465		7,852,698				51,324,763		
Total Capital Assets, being depreciated net		97,359,752		16,712,206				114,071,958		
Total Capital Assets, net	$ 129,833,054	$	47,277,110	$		$	166,782,588		

Depreciation expense was $7,852,698 for the fiscal year ended September 30, 2017, reported under the Physical environment function in the statement of activities.

78

SHINN & CO

CP"5 AND OUSltK.SS COP~SULJANTS

LAKEWOOD RANCH STEWARDSHIP DISTRICT

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED

For the Fiscal Year Ended September 30, 2017

NOTE 5 - LINE OF CREDIT

On September 8, 2017, the District entered into a Non-Bank Qualified Tax Exempt Revolving Line of Credit not to exceed $45,000,000, with a fixed interest rate of 4.0%. The line of credit was entered to finance the acquisition and construction of certain infrastructure improvements for the benefit of the District known as the Northeast Sector, as well the set-up of a debt service reserve fund and to pay cost of issuance. The balance on the line of credit as of September 30, 2017 was $7,615,088.

NOTE 6 - LONG TERM DEBT

Unamortized discounts on governmental activities revenue bonds amounted to $5,154,837 and S3.77 0.713, as of September 30, 2017 and 2016, respectively.

									Due within	
		10/1/16		Additions	Decreases		9/30/17	1 year	
2005 Lake Club Series B Bonds	$	2,650,000	$		$	2,365,000	$	285,000	$	
2006 Lake Club Series A Bonds		15,615,000				450,000		15,165,000	460,000	
2006 Country Club East Bonds		21,810,000				610,000		21,200,000	600,000	
2006 Lake Club Series B Bonds		8,255,000				7,405,000		850,000		
2010 Central Park Series A Bonds		3,005,000				70.000		2,935,000	40,000	
2011 Lakewood Ctr NW Sector Bonds		33,885,000				795,000		33,090,000	555,000	
2011 Belle Isle Series A Bonds		1,650,000				35,000		1,615,000	25,000	
2013 Country Club East Series A Bonds		8,210,000				110,000		8,100,000	120,000	
2013 Central Park Series A Bonds		7.020,000				170,000		6,850,000	115,000	
2014 Country Club East Series A Bonds		11,805,000				185,000		11,620,000	195,000	
207 5 Lakewood Ctr North Bonds		36,765,000				860,000		35,905,000	640,000	
2016 The Villages of LWR South Bonds		79,505,000				4,160.000		75,345,000	1,240,000	
2017 Del Webb Bonds				14,806,000				14,805,000	235,000	
2017 Lakewood Nat1onal & Polo Run Bonds				49,480,000				49,480,000	750,000	
2017 Lake Club Bonds				14,548,000				14,548,000	522,000	
	$	230,175,000	$	78,833,000	$17,215,000	$	291.793,000	$ 5.497,000	

On September 30, 2005, the District issued $5,535,000 of Special Assessment Revenue Bonds, Series 2006, originally due on August 1, 2070, and extended to August 1, 2017, with a fixed interest rate of 4.875%. The Bonds were issued to finance the acquisition and construction of certain infrastructure improvements for the benefit of the District, known as the Lake Club Project, as well as set up a debt service reserve fund and to pay costs of issuance. On June 1, 2012, $3,655,000 was extended to a due date of November 1, 2020, at an interest rate of 7.21 %.

79

LAKEWOOD RANCH STEWARDSHIP DISTRICT

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED

For the Fiscal Year Ended September 30, 207 7

NOTE 6 - LONG TERM DEBT -  CONTINUED

On February 13, 2006, the District issued $19,320,000 of Special Assessment Revenue Bonds, Series 2006 (Lake Club Project), due on November 1, 2036, with a fixed interest rate of 5.50%. The bonds were issued to finance the acquisition and construction of certain infrastructure improvements for the benefit of the District, known as the Lake Club Project. as well as set up a debt service reserve fund and to pay costs of issuance.

On June 5, 2006, the District issued $30,145,000 of Bond Anticipation Notes, Series 2006, due on June 1, 2007, with a fixed interest rate of 6.0%. This note was renewed on June 1, 2007 for a period of 2 years at 6.5% interest. This note was again renewed on January 7, 2009, with a maturity date of June 1, 2071 , at an interest rate of 7.5%. The bonds were re-financed by the District on May 7, 207 7 for $36,255,000, with $14,495,000 having a final maturity date of May 1, 2030, at an interest rate of 7.40%, and $21 ,760,000 having a final maturity date of May 1, 2040, at an interest rate of 8.00%. The original bonds were issued to finance the acquisition and construction of certain infrastructure improvements for the benefit of the District, known as the Lakewood Centre and NW Sector Projects.

On June 79, 2006, the District issued $27,215,000 of Special Assessment Revenue Bonds, Series 2006, due on November 7, 2037, with a fixed interest rate of 5.40%. The bonds were issued to finance the acquisition and construction of certain infrastructure improvements for the benefit of the District, known as the Country Club East Project, as well as set up a debt service reserve fund and to pay costs of issuance.

On October 1, 2006, the District issued $14,435,000 of Spedal Assessment Revenue Bonds, Series 20068, due on May 1, 2013, with a fixed interest rate of 5.00%, The bonds were issued to finance the acquisition and construction of certain infrastructure improvements for the benefit of the District, known as the Lake Club Project, as well as set up a debt service reserve fund and to pay costs of issuance. On June 1, 207 2, $17,375,000 was extended to a due date of November 1, 2020, at an interest rate of 6.77%.

On July 1, 201 O, the District issued $5,720,000 of Special Assessment Revenue Bonds, Series 201 DA, due on May 1, 2040, with a fixed interest rate of 7.40%. The bonds were issued to finance the acquisition and construction of certain infrastructure improvements for the benefit of the District. known as the Centra l Park Project, as well as set up a debt service reserve fund and to pay costs of issuance.

On May l , 2017 , the District issued $7,765,000 of Special Assessment Revenue Bonds, Series 2011, due on May 1, 2040, with a fixed interest rate of 8.00%. The bonds were issued to finance the acquisition and construction of certain infrastructure improvements for the benefit of the District, known as the Belle Isle Project. as well as set up a debt service reserve fund and to pay costs of issuance.

On August 5, 207 3, the District issued $8,500,000 of Special Assessment Revenue Bonds, Series 2013, due on May 1, 2043, with two fixed interest rates of 6.7% and 7%. The bonds were issued to finance the acquisition and construction of certain infrastructure improvements for the benefit of the District, known as the Country Club East Project as well as set up a debt service reserve fund and to pay costs of issuance..

20

LAKEWOOD RANCH STEWARDSHIP DISTRICT

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED

For the Fiscal Year Ended September 30, 2017

NOTE 6 -  LONG TERM DEBT - CONTINUED

On August 5, 207 3, the District issued $7,535,000 of Special Assessment Revenue Bonds, Series 2013, due on May 1, 2043, with a fixed interest rate of 6.4%. The bonds were issued to finance the acquisition and construction of certain infrastructure improvements for the benefit of the District, known as tl1e Central Park Project, as well as set up a debt service reserve fund and to pay costs of issuance.

On October 14, 207 4, the District issued $72,145,000 of Special Assessment Revenue Bonds, Series 2014, due of May 7, 2044, with a fixed interest rate of 5.52%. The bonds were issued to finance the acquisition and construction of certain infrastructure improvements for the benefit of the District known as the Country Club East Project, as well as set-up of a debt service reserve fund and to pay cost of issuance,

On February 9, 2075, the District issued $37,360,000 of Special Assessment Revenue Bonds, Series 207 5, due of May 1, 2045, with interest rates ranging from 4.25% to 4.875%. The bonds were issued to finance the acquisition and construction of certain infrastructure improvements for the benefit of the District known as the Lakewood Centre North Project, as well as set-up of a debt service reserve fund and to pay cost of issuance.

On February 8. 2016, the District issued $79,50-S.OOO of Special Assessment Revenue Bonds, Series 207 6, due of May 1, 2046, with interest rates ranging from 4.00% to 5. 725%. The bonds were issued to finance the acquisition and construction of certain infrastructure improvements for the benefit of the District known as the Villages of Lakewood Ranch South Project, as well as set-up of a debt service reserve fund and to pay cost of issuance.

On February 27, 2017, the District issued $49,480,000 of Special Assessment Revenue Bonds, Series 2017, due of May l, 2047, with interest rates ranging from 4.00% to 5.375%. The bonds were issued to finance the acquisition and construction of certain infrastructure improvements for the benefit of the District known as the Lakewood National and Polo Run Project. as well as set-up of a debt service reserve fund and to pay cost of issuance.

On May 8, 2017, the District issued $14,805,000 of Special Assessment Revenue Bonds, Series 2017. due as of May 1, 2047, with interest rates ranging from 3.65% to 5. 725%. The bonds were issued to finance the acquisition and construction of certain infrastructure improvements for the benefit of the District known as the Del Webb Project, as well as set-up of a debt service reserve fund and to pay cost of issuance.

On September 29, 2017, the District issued $14,548,000 of Special Assessment Revenue Refunding Bonds, Series 207 7, due as of May 7, 2036 with a fixed interest rate of 4.0%. The bonds were issued to refund and redeem all of the outstanding principal amount of the District'sSpecial Assessment Revenue Bonds, 2006 Series A (Lake Club Project), pay certain costs associated with the issuance of the 207 7 Bond, make a deposit into the 2017 Reserve Account. and pay interest first coming due on the 207 7 Bond.

21

LAKEWOOD RANCH STEWARDSHIP DISTRICT

NOTES TO THE FINANCIAL STATEMENTS - CONTINUED

For the Fiscal Year Ended September 30, 207 7

Pnnelpa,		2005 lm COIJb	2006Ul\.tClub		'2006COontry		'2006Lah:e0ub	l0100e-ntral Par!(	'2.011 Lak:ewooel Qr		2011 Belle Isle	2013CcwtryOt.b	2013 Cerltral P,ark	2014C:0Ur'llryQut:J	2015Lake-woodQr	?016ThtV11bgeso1		W17D1.'1Webb	2017LWNal1tloalt.		2017La!<l!Club			
	St1\its8~	s	Stn~:i A Bond$	C1ub East Bonds		SenesBBonc!I	s	Senes A 8cN!s	anclNWSeotor&oods		Str,esA.so.ids	EastSmesABonds		Sene, A Bcftds	Ea!t ~nts A BonOs		Natl, ~S	LWR South Bonds		aooih		Polo RunSands		l!onds	TO!al		
2010	s			'W.000	S	600.000	$			40.000	S	SSS.000	S	25,0DO	S	120,000	$	11 5.000	S	195.000	$	640.000	S	1,240,000	$	235.000	$	760.000	S	5'2ZDOO   S	5~97.000		
'2019				490,000		635,000				45.0DO		59$.000		30,000		125.000		120.000		205,000		670.[JOO		1,290,000		245.000		785.000		543.000	,ns.ooo		
2020		:SS,000		515.000		670,000				50,000		64S.00D		30.000		195,000		125,000		220.000		700.000		1,345,000		255.000		815,000		565,000	fi,070,00I..I		
2021				545.000		710,000		BS0,000		55.000		690.000		35,000		145.000		130.000		23MOO		730,000		1.400,000		265,000		650.000		588.000	1,soa,000		
2022				57S.OOO		750,000				60.000		745.000		35,000		1ss.000		140,000		2<10.000		760.000		1.485,000		275,000		885,000		1)12.000	f,717,000		
2023-1027				am.ooo		4;1.0,000				<00.000		<,655.000		'200,000		!MSOO0		BlS.000		1,425,000		4,340.000		a.,,o,ooo		1,560000		5065.000		3,456.000	3'!,l!Jti,000		
"'28-2031				4,525.000		5.005.000				605000		6.745.000		335.000		1.320,000		1.150.000		1$70.000		S,51S.000		10.105,000		1)175.000		~490.000		4221.000	51,301.000		
2033-2037				4,!i3Q.OOO		7.610.000				925,000		10.090.000		•95.000		1.865.000		1.SSS..000		l.440,000		7.C,3S.DOO		13.780,000		W,5,000		&440.000		•.04l.000	66:,431.000		
2038-20<2										7~.000		8.330.000		~o.ooo		2.6401)00		l.170.000		"3230,000		8.985.000		17.6%.l>OO		aiss.ooo		ll.OOS.000			58.465.000		
2043-20,l7																650.DOO		510,000		1.~000		6.$30,000		17.965,000		421 5,000		1~5.000			~5,SJ0.000		
TOOJI	s																																
		'285000	S	15,166.000	S	21,200.000	$	8501)00	$	l.93S.000	$	33.090.000	S	1,615,000	$	~100,000	S	6.850.000	S	11.&20.000	$	3!;,905.000	S	75.345,000	S	14,805,J)00	$	49.400.000	S	14,Sita_OOO   $	"'291.793.000		
		2005ta~Club		2006 la" Club		2006CW,uy	'2006t•~Cl1.lb	2010 Ctn1ral Park	2011 Lilk.!wCX!dCb		2011 Bell~ Ifie	2O13Counr,y0ub	2013 CctrwaJ Pa,l(	2014Ccu,tryOub	2015Lahr.ell#OOdCV	2016TkeWlaQHof		2017 0 1!1Webb	2.017 lW Nabonal &		-				
																					20l7Lalu!Cfub				
~ Seoes 8 Bonds				Club~5tBoncla	Sc:n•s BBorc!L.		Sel'll!',ABonds	alldNWSeow~		Semss A Bonds	Eas.1 St¥s ;,, Bonds		Sene-sABonds	&$t Sene-.s A Bond:s		N:>1hBaods	LWR SoulnSorlCI.,		Bald•		Polo A~Bcnds				"""''		
2018	s	20,549	S		834.075	$	1,,....6(10	$	57R'IS S	"217,190	S	2577300	S	129200	S	5>1,190	S	429,775	$	637,520	S	1,7 12.963	S	3,702,061	S	707,427	$	l.546,731	$	34l.686	$			
2019		20.549			80~775		1.112.400		57;,'5		214.230		2.536,230																				IS.617.032		
															127,200		5,,19,150		42l.760		627.0Ba		1.685.763		3.&5l.•81		n2,e1a		'2.5i6,731		561.040		15,604,820		
				-·-																													
2020		20~9			181~25		1,078110		57,545		210,900		2.492.,200		12/1~00		540.715		415.440		616,120		1657288		3,600,881		703,935		2.<45.391		539,320		1-532601'}		
2021		1D,274			753.SOO		l .[Ml.93)		ia.nJ		,07200		2.444,470		122,400		531.730		407.815		604.SSO		1,627,538		3,547,081		694,6'28		2.A52,731		51~720		14,991140		
2022					7'23,525		1.003.590				103,130		2.393.410		119,600		522.015		399.885		59'2.045		1.596,513		3.<91.081		68,:.,955		Z.41$.131		493,200		14,M l ,680		
2023-2027					3,103,925		4,%4.2611				939060		11.0!>4260		SS0,400		l.439)195		l,"60,955		2.lSl,575		7.462.869		16A52.194		al,2"6,233		llA'T0,113		2,078,200		67,77395<)		
2028-2031					2.0•7~2S		3.028.860				7ti4,0SO		9,031,650		443,600		2,076,420		1,570,900		1.325.«8		0,328.725		14,263.156		2.851.6811		10.009~		1.328,200		56.159.00S		
2033--2037					053.950		1.276.020				495400		5,883.600		284,400		1..0.025		1170.740		1764.533		-".844,ns		11.289,.406		2.a05,4.38		8.202,275		~12.240		40143.201		
2038,204?											115.070		1;,,,asoo		66.000		898,150		oos,oao		1,0 01.000		2.948.W		7.421.000		1.597.975		5.700906				2 1,661,615		
?0,43,'2047																	45,500		32.6.tO		132.720		647,156		2362/181		669.838		2.403.969				6,294,704		
	.s																																		
To<ol		71,921	S	~707,500	$	14 D4.i,9!10	-!	201.41].B	S	3~"6,630	$	39.781.920	S	1,967,600	S	9.660!50	S	1.aoa990	s	11,052.399	S	30512.234	S	69,782.242	$	14,174,995	$	S0,302.881	$	6.271.606	~	166		
		'2.0DSL.a~Oub			2006 Lake Club		WD6Cosrtry		2006L.akl!Ooo	'l010Cl-mral' Pai«	2011 t.ake'MX!tlCtr		w,1ae11e1t1e	WllCoumryCluo	20t3Ct·nlta1Paik.	20'14 Counuy Club	2015 ~wood Cv	2016 The Vlll~g,e-s <if		2017Dt!W@OO	2017LWNetionali		Wr7Ljke01.iD				
Tomi	s	~s:88onds			$e11e, A Bor,ds:	(:f\A, Ea.st Borde		s....eBonos		Sttits A Sonds	and ~/W S'«.IOrBonds		Ser1es A Bonds	EastSeriesABonds		Stnes.ABoncs	Ea.3' S-enes A 8onds		Noru'IBonds	LWR Sooth Boods		Sood•		Pokl~ooBonds		Bonds		fotal		
2018		20.!>49	S	1,29,:.075	S	1744.800	S	57.!>45	S	257.190	$	3,132300	S	154200	$	Em,190	$	544,n5	s	832.610	S	2.35l.963	S	-4,942,081	S	9<12427	$	n91;m	s	864,"86	$	71 11.11,032		
2019		'10,549			1~ns		1,747~400		57,545		259,230		3.131.230		157200		674.150		!>4l760		432.088		2.355763		-4,942,481		951878		3,301,731		1,1~40		21il82420		
2010		20,549			1.296.825		l ,7,S.110		51,5<5		260,900		3-l37ioo		154BOO		~5.775		540,440		836,110		2.357.W,		4,945.,881		958-935		3.300.331		1,10,.320		'21,395,019		
'1021		"95274			1.2"6~00		l.751,930		B7B,n3		262,2{10		3.134A70		157~00		676730		53?!15		83-4,350		2.357.538		4,947.041		95'l,62B		3.'!02.731		1,104nO		?2.499,1'0		
2022					1.2985:?5		'153,590				263,1JO		3,138.410		1S4_600		Em,015		sa~.ass		832.0'S		2.356.513		-4,976.081		959,955		3.'!03.731		1,105,200		21.358.680		
20?3-2027					6,5'18.925		ll.78'.28ll				1.339~60		15.109.260		1a0.,oo		3.:l84J;9S		l.6%.955		,,176.575		11802.Wl		24892.194		<.S06.233		1~535.1'3		5.634200		106.969.959		
2028-2032					6,577.925		8.833.860				1,3691150		15.816,650		n8.60o		3,$96<20		zno.ooo		4,195,M.8		11Jl43,n5		24968,156				16,589.36,3		5,5•9.200		107460~5		
2033-2037					5.283,so		B,s86.02ll				1,420,800		15.973,600		779.400		3,416.025		zns.140		4.20-4,$33		11.879,775		25.069.406		4.$30,438		16642275		<.<SJ.240		105,574,202		
2038-2042											670.070		9,696.800		( 66,000		3.47a150		2,768,080		4,231.000		11933644		25,llfi.000		~_8Szg75		l f».71 1.906				80,l:!6.626		
2043-2047	•																695,500		542.640		1,697,?20		7,ln,156		a<lJ27.881		·<.884.838-	1~798.969				52.124,704		
Tnml		:lo;f;Q?\	~	.,.!.11:l'>~t'l	!;	~,;,4QQAn	(:	, ne;1.!nA.	i:::	6.301.6.;0	S	72471.920	S	3.582.600	S	17.760.850	S	14.158.990	S	22.67231}9	S	fi6.tl7.!>.l4	s	14!.117747	S	?8Q7QQQ,,;	~	OQ7A?AA1	-~	?nJ:IIQMf.	~	o;t.nnn~1F,F,		

22

SHINN & CO

CP.-.5 AND t,USlfH!SS COUSULlA ffl'S

LAKEWOOD RANCH STEWARDSHIP DISTRICT

NOTES TO THE FINANCIAL STATEMENTS - CONTJNUED

For the Fiscaf Year Ended September 30, 2017

NOTE 7 - SUBSEQUENT EVENTS

On November l, 2017 the 2006 Lake Club Series A Bonds were redeemed and paid off in full.

Subsequent events have been evaluated through January 29, 2018, which is the date the financial statements were available to be issued

23

OTHER NON-FINANCIAL INFORMATION

SHINN& CO

CPA.$ AND BUSINESS CONSULTANT$

SHINN& Co
CPAS AND BUSINESS CONSULTANTS

7007 3rd Avenue West Suite 500 I Bradenton, FL 3.4205

50	Central AVenue Suite 97 0 I Sarasota, FL 3 4236

(T)	941 ,747.0 500 I (F) 941.746.0202

www.sh1nnandco.com

INDEPENDENT AUDITOR'SREPORT 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

Board of Supervisors

Lakewood Ranch Stewardship District

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 the Lakewood Ranch Stewardship District, ("the District"), as of and for the year ended September 30, 2017, and the related notes to the financial statements, which collectively comprise the District's basic financial statements, and have issued our report thereon dated January 29, 2018.

Internal Control over Financial Reporting

In planning and performing our audit of the financial statements, we considered the District'sinternal control over financial reporting (internal control) to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the District'sinternal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the District'snternal control over financial reporting.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the District'sfinancial 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 would not necessarily 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.

24

Shinn & Company. LI C ,s a me111ber al P1lvate Companies Practice Section I American Institute of Ce1 lifled Public Accountants I Florida Institute of Certified Public Accountants

Compliance and Other Matters

As part of obtaining reasonable assurance about whether the District'sfinancial 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 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

This 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'sinternal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the District'sinternal control and compliance. Accordingly, this communication is not suitable for any other purpose.

SHi~P::Y.~  I   ~

CERTIFIED PUBLIC ACCOUNTANTS

Bradenton, Florida

January 29, 2018

25

SHINN& CO

CPo\S ANO 8USl~IESS CONSULTANTS

SHINN& CO

CPAS AND BUSINESS CONSULTANTS 1007 3rd Avenue West Suite 500 I Bradenton, FL 34205 50 Central Avenue Suite 910 I Sarasota, FL 34236

(T) 941 .747 0500 I (F) 941.746.0202 www.shinnandco.com

INDEPENDENT ACCOUNTANT'SREPORT ON COMPLIANCE WITH FLORIDA STATUTES 218.415 -

INVESTMENT OF PUBLIC FUNDS

Board of Supervisors

Lakewood Ranch Stewardship District

We have examined the Lakewood Ranch Stewardship District ("District") compliance with Section 218.415, Florida Statutes during the fiscal year ended September 30, 2017. Management is responsible for the District'scompliance with those requirements. Our responsibility is to express an opinion on the District's compliance based on our examination.

Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about the District'scompliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion, Our examination does not provide a legal determination on the District'scompliance with specified requirements.

In our opinion, the District complied, in all material respects, with the aforementioned requirements for the fiscal year ended September 30, 2017.

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, 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.

f,,/..;.,_r~,ilc.

SHINN AND COMPANY, LLC

CERTIFIED PUBLIC ACCOUNTANTS

Bradenton, Florida

January 29, 2018

26

Shinn & Company, LI.C is a membe, of P1lvate Companies Practice Section I American Institute of Certified Public Accountants I Florida Institute of Certified Public Accountants

SHINN& CO

CPAS AND BUSINESS CONSULTANTS l 001 3rd Avenue West Suite 600 I Bradenton, FL 34205 50 Central Avenue Suite 910 I Sarasota, FL 34236

(T) 941.747.0500 I (F)941.746.0202 www.shinnandco.com

MANAGEMENT LETTER

Board of Supervisors

Lakewood Ranch Stewardship District

Report on the Financial Statements

We have audited the financial statements of Lakewood Ranch Stewardship District ("District"), as of and for the fiscal year ended September 30, 2017, and have issued our report thereon dated January 29, 2018.

Auditor'sResponsibility

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

Other Reports

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'sReport on an examination conducted in accordance with A/CPA Professional Standards, Section 601, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports, which are dated January 29, 2018 should be considered in conjunction with this management letter

Prior Audit Findings

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

Official Title and Legal Authority

Section 10.554(1 )(i)4., Rules 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. This information has been included in the notes to the basic financial statements.

27

Shinn & Company, LLC Is a membeI of Private Companies Practice Section I Arne11can lnst,tule of Certified Public Accoun1a111s I Florida Institute of Ce, tif1ed Public Accounlanls

Financial Condition

Section 70.554(1 )(i)5.a., Rules of the Auditor General, requires that we report the results of our determination as to whether or not the District has met one or more of the conditions described in Section 218.503(7 ), Florida Statutes, and identification of the specific condition(s) met. In connection with our audit, we determined that the District did not meet any of the conditions described in Section 218.503(1 ), Florida Statutes.

Pursuant to Sections 70.554(7 )(i)5.c. and 10.556(8), Rules of the Auditor General, we applied financial condition assessment procedures. It is management'sresponsibility to monitor the District'sfinancial condition, and our financial condition assessment was based in part on representations made by management and the review of financial information provided by same.

Annual Financial Report

Section 7 0.554(1 )(i)5,b., Rules of the Auditor General, requires that we report the results of our determination as to whether the annual financial report for District for the fiscal year ended September 30, 2017, filed with the Florida Department of Financial Services pursuant to Section 218.32(7 )(a), Florida Statutes, is in agreement with the annual financial audit report for the fiscal year ended September 30, 2077. In connection with our audit, we determined that these two reports were in agreement.

Other Matters

Section 70.554(1 )(i)2., Rules of the Auditor General, requires that we address in the management letter any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations.

Section 70.554(7 )(i)3., Rules of the Auditor General, require that we address 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 have any such findings.

Purpose of this Letter

Our management letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General. 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.

!;L	t  ~11-lc

sH,NN AND COMPANY, LLC CERTIFIED PUBLIC ACCOUNTANTS

Bradenton, Florida

January 29. 2018

28

SHINN& CO

CPAS NfO OUSlNESS CONSULJANl,!i