Bainebridge Community Development District

ANNUAL FINANCIAL REPORT

September 30, 2021

Bainebridge Community Development District	
ANNUAL FINANCIAL REPORT	
September 30, 2021	
TABLE OF CONTENTS	
Page Number	
REPORT OF INDEPENDENT AUDITORS	1-2	
MANAGEMENT’S DISCUSSION AND ANALYSIS	3-8	
BASIC FINANCIAL STATEMENTS:
Government-wide Financial Statements: Statement of Net Position Statement of Activities
Fund Financial Statements:
Balance Sheet – Governmental Funds Reconciliation of Total Governmental Fund Balances
to Net Position of Governmental Activities
Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities
Statement of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual – General Fund	

9
10

11

12

13

14

15	
Notes to Financial Statements	16-26	

INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS	27-28
MANAGEMENT LETTER	29-31
INDEPENDENT ACCOUNTANTS’ REPORT/COMPLIANCE WITH
SECTION 218.415, FLORIDA STATUTES	32

REPORT OF INDEPENDENT AUDITORS

To the Board of Supervisors
Bainebridge Community Development District Jacksonville, Florida

Report on the Financial Statements

We have audited the accompanying financial statements of Bainebridge Community Development District as of and for the year ended September 30, 2021, and the related notes to financial statements, which collectively comprise the District’s basic financial statements as listed in the table of contents.

Management’s Responsibility for the Financial Statements

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

Auditor’s Responsibility

Our responsibility is to express an opinion 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. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’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 entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
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To the Board of Supervisors
Bainebridge Community Development District

Opinion

In our opinion, the basic financial statements referred to above present fairly, in all material respects, the financial position of the governmental activities, and each major fund of Bainebridge Community Development District as of September 30, 2021, and the respective changes in financial position and the budgetary comparison for the General Fund for the year then ended in conformity with accounting principles generally accepted in the United States of America.

Other Matters

Required Supplementary Information

Governmental Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the supplementary information. 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 and opinion or provide any assurance.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued a report dated February 21, 2022, on our consideration of the District’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations and contracts.

The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Bainebridge Community Development District’s internal control over financial reporting and compliance.

Berger, Toombs, Elam, Gaines & Frank Certified Public Accountants PL
Fort Pierce, Florida February 21, 2022

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Management’s discussion and analysis of Bainebridge Community Development District’s (the “District”) financial performance provides an objective and easily readable analysis of the District’s financial activities. The analysis provides summary financial information for the District and should be read in conjunction with the District’s financial statements.

OVERVIEW OF THE FINANCIAL STATEMENTS

The District’s basic financial statements comprise three components; 1) Government-wide financial statements, 2) Fund financial statements, and 3) Notes to financial statements. The Government-wide financial statements present an overall picture of the District’s financial position and results of operations. The Fund financial statements present financial information for the District’s major funds. The Notes to financial statements provide additional information concerning the District’s finances.

The Government-wide financial statements are the statement of net position and the statement of activities. These statements use accounting methods similar to those used by private-sector companies. Emphasis is placed on the net position of governmental activities and the change in net position. Governmental activities are primarily supported by special assessments.

The statement of net position presents information on all assets and liabilities of the District, with the difference between assets and liabilities reported as net position. Net position is reported in three categories: 1) net investment in capital assets, 2) restricted, and 3) unrestricted. Assets, liabilities, and net position are reported for all Governmental activities.

The statement of activities presents information on all revenues and expenses of the District and the change in net position. Expenses are reported by major function and program revenues relating to those functions are reported, providing the net cost of all functions provided by the District. To assist in understanding the District’s operations, expenses have been reported as governmental activities. Governmental activities financed by the District include general government, physical environment, and debt service.

Fund financial statements present financial information for governmental funds. These statements provide financial information for the major funds of the District. Governmental fund financial statements provide information on the current assets and liabilities of the funds, changes in current financial resources (revenues and expenditures), and current available resources.

OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)

Fund financial statements include a balance sheet and a statement of revenues, expenditures and changes in fund balances for all governmental funds. A statement of revenues, expenditures, and changes in fund balances – budget and actual is provided for the District’s General Fund. Fund financial statements provide more detailed information about the District’s activities. Individual funds are established by the District to track revenues that are restricted to certain uses or to comply with legal requirements.

The government-wide financial statements and the fund financial statements provide different pictures of the District. The government-wide financial statements provide an overall picture of the District’s financial standing. These statements are comparable to private-sector companies and give a good understanding of the District’s overall financial health and how the District paid for the various activities, or functions, provided by the District. All assets of the District, including capital assets are reported in the statement of net position. All liabilities, including principal outstanding on bonds are included. The statement of activities includes depreciation on all long-lived assets of the District, but transactions between the different functions of the District have been eliminated in order to avoid “doubling up” the revenues and expenses. The fund financial statements provide a picture of the major funds of the District. In the case of governmental activities, outlays for long lived assets are reported as expenditures and long-term liabilities, such as general obligation bonds, are not included in the fund financial statements. To provide a link from the fund financial statements to the government-wide financial statements, reconciliations are provided from the fund financial statements to the government- wide financial statements.

Notes to financial statements provide additional detail concerning the financial activities and financial balances of the District. Additional information about the accounting practices of the District, investments of the District, capital assets and long-term debt are some of the items included in the notes to financial statements.

Financial Highlights

The following are the highlights of financial activity for the year ended September 30, 2021.

The District’s total assets exceeded total liabilities by $1,424,753 (net position). Net investment in capital assets for the District was $268,456. Restricted net position was
$251,318 and unrestricted net position was $904,979.

Revenues	from	governmental	activities	totaled	$533,966	and	expenses	from governmental activities totaled $607,568.

OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)

Financial Analysis of the District

The following schedule provides a summary of the assets, liabilities and net position of the District and is presented by category for comparison purposes.

Net Position

Governmental Activities
		2021			2020	

Current assets Restricted assets Capital assets
Total Assets	
$	
917,595
404,186
     1,812,922 
     3,134,703 		
$	
843,338
397,936
     2,042,030 
     3,283,304 	
Current liabilities Non-current liabilities
Total Liabilities	111,001
	1,598,949 
	1,709,950 	127,030
	1,657,919 
	1,784,949 	
Net Position
Net investment in capital assets Restricted
Unrestricted
Total Net Position	

$	
268,456
251,318
       904,979 
1,424,753		

$	
1,177,600
235,676
       85,079 
1,498,355	

The increase in current assets is related to revenues exceeding expenditures at the fund level in the current year.

The reduction in capital assets is mainly related to depreciation.

The reduction in current liabilities is related to the decrease in accounts and accrued expenses in the current year.

The reduction in non-current liabilities is related to the current year principal payment.

OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)

Financial Analysis of the District (Continued)

The following schedule provides a summary of the changes in net position of the District and is presented by category for comparison purposes.

Change In Net Position

Governmental Activities
	2021		2020	
Program Revenues				
Charges for services	$	529,539		$	529,656	
General Revenues				
Miscellaneous	4,211	199	
Investment earnings		216 		8,533 	
Total Revenues		533,966 		538,388 	

Expenses				
General government	110,263	122,955	
Physical environment	402,226	469,039	
Interest and other charges		95,079 		98,404 	
Total Expenses		607,568 		690,398 	
Change in Net Position	(73,602)	(152,010)	
Net Position - Beginning of Year		1,498,355 		1,650,365 	
Net Position - End of Year	 $	1,424,753 	 $	1,498,355 	

The decrease in general government expenses is related to the decrease in web-hosting and legal expenses in the current year.

The decrease in physical environment is related to the decrease in contingency and amenity maintenance expenses in the current year.

OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)

Capital Assets Activity

The following schedule provides a summary of the District’s capital assets as of September 30,
2021 and 2020:	
Governmental Activities	
2021		2020	
Construction in progress	$	-		$	7,860	
Infrastructure	3,207,578		3,207,578	
Improvements other than buildings	1,751,197		1,751,197	
Equipment	91,009		75,289	
Less: accumulated depreciation		(3,236,862)			(2,999,894)	
Governmental Activities Capital Assets	 $  1,812,922 		 $  2,042,030 	

During the year depreciation was $238,968, $15,720 was added to equipment and $7,860 was transferred from construction in progress.

General Fund Budgetary Highlights

The budgeted expenditures exceeded actual expenditures in the current year because miscellaneous contingency and legal expenditures were less than anticipated.

There were no budget amendments in the current year.

Debt Management

Governmental Activities debt includes the following:

In May 2007, the District issued $8,240,000 Series 2007 Special Assessment Bonds. These bonds were issued to finance the cost of the construction, installation, and equipping of a portion of the Capital Improvement Program (the “2007 Project”). As of September 30, 2021, the balance outstanding was $1,675,000.

OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)

Economic Factors and Next Year’s Budget

Bainebridge Community Development District does not expect any economic factors to have any significant effect on the financial position or results of operations of the District in fiscal year 2022.

Request for Information

The financial report is designed to provide a general overview of Bainebridge Community Development District’s finances for all those with an interest. Questions concerning any of the information provided in this report or requests for additional information should be addressed to the Bainebridge Community Development District’s Finance Department at 3434 Colwell Avenue, Suite 200, Tampa, Florida 33614.

Bainebridge Community Development District	
STATEMENT OF NET POSITION	
September 30, 2021			

Governmental	
Activities	
ASSETS			
Current Assets			
Cash	$	893,560	
Prepaid expenses		19,835	
Deposits		4,200 	
Total Current Assets		917,595 	
Non-Current Assets		
Restricted Assets			
Investments		404,186	
Capital Assets, Being Depreciated			
Infrastructure		3,207,578	
Improvements other than buildings		1,751,197	
Equipment		91,009	
Less: accumulated depreciation		(3,236,862)	
Total Non-Current Assets		2,217,108 	
Total Assets		3,134,703 	
LIABILITIES			
Current Liabilities			
Accounts payable and accrued expenses		12,416	
Deposits payable		200	
Bonds payable		60,000	
Accrued interest		38,385 	
Total Current Liabilities		111,001 	
Non-Current Liabilities		
Bonds payable		1,598,949 	
Total Liabilities		1,709,950 	
NET POSITION			
Net investment in capital assets		268,456	
Restricted for debt service		247,108	
Restricted for capital projects		4,210	
Unrestricted		904,979 	
Total Net Position	 $		1,424,753 	

See accompanying notes to financial statements.

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Bainebridge Community Development District STATEMENT OF ACTIVITIES
For the Year Ended September 30, 2021

	Net (Expenses)	
	Revenues and	
Program	Changes in	
  Revenues		  Net Position		
Charges for	Governmental	
Functions/Programs	Expenses	Services	Activities	
Governmental Activities							
General government		$	(110,263)		$	147,258		$	36,995	
Physical environment		(402,226)		220,704		(181,522)	
Interest and other charges			(95,079)			161,577 			66,498 	
Total Governmental Activities		 $	(607,568)		 $	529,539 		(78,029)	

General Revenues
Investment income	

216	
Miscellaneous revenues		4,211 	
Total General Revenues		4,427 	
Changes in Net Position	(73,602)	
Net Position - Beginning of Year		1,498,355 	
Net Position - End of Year	 $	1,424,753 	

See accompanying notes to financial statements.

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Bainebridge Community Development District BALANCE SHEET -
GOVERNMENTAL FUNDS
September 30, 2021

Debt
	General	 	Service	

Total
Capital	Governmental
	Projects			Funds	

ASSETS		
Cash	$	893,560	$	-	$	-	$	893,560	
Prepaid expenses	19,835	-	-	19,835	
Deposits	4,200	-	-	4,200	
Restricted assets			
Investments, at fair value		- 		399,976 		4,210 		404,186 	
Total Assets	 $	917,595 	 $	399,976 	 $	4,210 	 $  1,321,781 	

LIABILITIES AND FUND BALANCES									
LIABILITIES									
Accounts payable and accrued expenses	$	12,416	$	-	$	-	$	12,416	
Deposits payable		200 		- 		- 		200 	
Total Liabilities		12,616 		- 		- 		12,616 	

FUND BALANCES									
Nonspendable - prepaid expenses/deposits	24,035		-		-		24,035	
Restricted:								
Debt service	-		399,976		-		399,976	
Capital projects	-		-		4,210		4,210	
Assigned capital reserve	149,455		-		-		149,455	
Unassigned	731,489		-		-		731,489	
Total Fund Balances	904,979		399,976		4,210		1,309,165	
Total Liabilities and Fund Balances	 $	917,595 		 $	399,976 		 $	4,210 		 $  1,321,781 	

See accompanying notes to financial statements.

Bainebridge Community Development District RECONCILIATION OF TOTAL GOVERNMENTAL FUND BALANCES
TO NET POSITION OF GOVERNMENTAL ACTIVITIES
September 30, 2021

Total Governmental Fund Balances	$	1,309,165	
Amounts reported for governmental activities in the Statement of Net Position are different because:			
Capital assets, infrastructure, $3,207,578, improvements other than buildings, $1,751,197, and equipment, $91,009, net of accumulated depreciation, $(3,236,862), used in governmental activities are not current financial resources, and therefore, are not reported at the fund level.		

1,812,922	
Long-term liabilities, bonds payable, $(1,675,000), net of bond discounts, net,
$(16,051), are not due and payable in the current period, and therefore, are not reported at the fund level.		

(1,658,949)	
Accrued interest expense for long-term debt is not a current financial use, and therefore, is not reported at the fund level.		
     (38,385)	
Net Position of Governmental Activities	 $		1,424,753 	

See accompanying notes to financial statements.

Bainebridge Community Development District	
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES	
IN FUND BALANCES - GOVERNMENTAL FUNDS	
For the Year Ended September 30, 2021	
				Totals	
		Debt	Capital	Governmental	
		General			Service			Projects			Funds		
Revenues					
Special assessments	$	367,962	$	161,577	$	-	$	529,539	
Investment income	118	97	1	216	
Miscellaneous revenues		4,211 		- 		- 		4,211 	
Total Revenues		372,291 		161,674 		1 		533,966 	
Expenditures					
Current					
General government	110,263	-	-	110,263	
Physical environment	165,258	-	-	165,258	
Capital outlay	7,860	-	-	7,860	
Debt service					
Principal	-	60,000	-	60,000	
Interest		- 		95,425 		- 		95,425 	
Total Expenditures		283,381 		155,425 		- 		438,806 	
Net Change in Fund Balances	88,910	6,249	1	95,160	
Fund Balances - Beginning of Year		816,069 		393,727 		4,209 		1,214,005 	
Fund Balances - End of Year	 $	904,979 	 $	399,976 	 $		4,210 	 $		1,309,165 	

See accompanying notes to financial statements.

RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
For the Year Ended September 30, 2021

Net Change in Fund Balances - Total Governmental Funds	$	95,160	
Amounts reported for governmental activities in the Statement of Activities are different because:			
Governmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of those assets is allocated over their estimated useful lives as depreciation. This is the amount that depreciation,
$(236,968), exceeded capital outlay, $7,860 in the current period.		

(229,108)	
Repayments of bond principal and capital leases are expenditures at the fund level, but the repayment reduces long-term liabilities in the Statement of Net Position.		

60,000	
Bond discount is recognized as an other financing use in the year long-term debt is issued at the fund level, however at the government-wide level it is recognized as a contra-liability and amortized as interest over the life of the debt. This is the current year interest.		

(1,030)	
At the government-wide level, interest is accrued on outstanding bonds; whereas at the fund level, interest expenditures are reported when due. This is the change in accrued interest in the current period.		

       1,376 	
Change in Net Position of Governmental Activities	 $		(73,602)	

See accompanying notes to financial statements.

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - GENERAL FUND
For the Year Ended September 30, 2021

								Variance with	
								Final Budget	
	Original			Final				Positive	
	Budget			Budget		Actual		(Negative)	
Revenues									
Special assessments	$	367,145		$	367,145		$	367,962		$	817	
Investment income		-		-		118		118	
Miscellaneous revenues		- 			- 			4,211 			4,211 	
Total Revenues		367,145 			367,145 			372,291 			5,146 	
Expenditures									
Current									
General government	126,710		126,710		110,263		16,447	
Physical environment	228,435		228,435		165,258		63,177	
Capital outlay		12,000 			12,000 			7,860 			4,140 	
Total Expenditures		367,145 			367,145 			283,381 			83,764 	
Net Change in Fund Balances		-		-		88,910		88,910	
Fund Balances - Beginning of Year		- 			- 			816,069 			816,069 	
Fund Balances - End of Year	 $		- 		 $	- 		 $	904,979 		 $	904,979 	

See accompanying notes to financial statements.

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The financial statements of the District have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The District's more significant accounting policies are described below.

Reporting Entity

The District was established on January 10, 2006, pursuant to the Uniform Community Development District Act of 1980, Chapter 190, Florida Statutes, as amended (the "Act"), by City of Jacksonville, Florida Ordinance 2005-14-17-E as a Community Development District. The District was established for the purposes of financing and managing the acquisition, construction, maintenance and operation of the infrastructure necessary for community development within its jurisdiction. The District is authorized to issue bonds for the purpose, among others, of financing, funding, planning, establishing, acquiring, constructing district roads, landscaping, and other basic infrastructure projects within or outside the boundaries of the Bainebridge Community Development District. The District is governed by a five-member Board of Supervisors who are elected on an at large basis by qualified electors within the District. The District operates within the criteria established by Chapter 190, Florida Statutes.

As required by GAAP, these financial statements present the Bainebridge Community Development District (the primary government) as a stand-alone government. The reporting entity for the District includes all functions of government in which the District’s Board exercises oversight responsibility including, but not limited to, financial interdependency, selection of governing authority, designation of management, significant ability to influence operations and accountability for fiscal matters.

Based upon the application of the above-mentioned criteria as set forth by the Governmental Accounting Standards Board, the District has identified no component units.

Measurement Focus and Basis of Accounting

The basic financial statements of the District are composed of the following:

Government-wide financial statements

Fund financial statements

Notes to financial statements

Government-wide Financial Statements

The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Government- wide financial statements report all non-fiduciary information about the reporting government as a whole. These statements include all the governmental activities of the primary government. The effect of interfund activity has been removed from these statements.

Governmental activities are supported by special assessments and interest. Program revenues are netted with program expenses in the statement of activities to present the net cost of each program.

Amounts paid to acquire capital assets are capitalized as assets, rather than reported as an expenditure. Proceeds of long-term debt are recorded as liabilities in the government-wide financial statements, rather than as an other financing source.

Amounts paid to reduce long-term indebtedness of the reporting government are reported as a reduction of the related liability, rather than as an expenditure.

Fund Financial Statements

The underlying accounting system of the District is organized and operated on the basis of separate funds, each of which is considered to be a separate accounting entity. The operations of each fund are accounted for with a separate set of self- balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled.

Fund financial statements for the primary government’s governmental funds are presented after the government-wide financial statements. These statements display information about major funds individually.

Governmental Funds

The District classifies fund balance according to Governmental Accounting Standards Board Statement 54 – Fund Balance Reporting and Governmental Fund Type Definitions. The Statement requires the fund balance for governmental funds to be reported in classifications that comprise a hierarchy based primarily on the extent to which the government is bound to honor constraints on the specific purposes for which amounts in those funds can be spent.

The District has various policies governing the fund balance classifications.

Nonspendable Fund Balance – This classification consists of amounts that cannot be spent because they are either not in spendable form or are legally or contractually required to be maintained intact.

Restricted Fund Balance – This classification includes amounts that can be spent only for specific purposes stipulated by constitution, external resource providers, or through enabling legislation.

Assigned Fund Balance – This classification consists of the Board of Supervisors’ intent to be used for specific purposes but are neither restricted nor committed. The assigned fund balances can also be assigned by the District’s management company.

Unassigned Fund Balance – This classification is the residual classification for the government’s general fund and includes all spendable amounts not contained in the other classifications. Unassigned fund balance is considered to be utilized first when an expenditure is incurred for purposes for which amounts in any of those unrestricted fund balance classifications could be used.

Fund Balance Spending Hierarchy – For all governmental funds except special revenue funds, when restricted, committed, assigned, and unassigned fund balances are combined in a fund, qualified expenditures are paid first from restricted or committed fund balance, as appropriate, then assigned and finally unassigned fund balances.

Governmental Funds (Continued)

Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are considered to be available when they are collected within the current period or soon thereafter to pay liabilities of the current period. For this purpose, the District considers revenues to be available if they are collected within 60 days of the end of the current fiscal period.

Expenditures generally are recorded when a liability is incurred, as under accrual accounting. Interest associated with the current fiscal period is considered to be an accrual item and so has been recognized as revenue of the current fiscal period.

Under the current financial resources measurement focus, only current assets and current liabilities are generally included on the balance sheet. The reported fund balance is considered to be a measure of “available spendable resources”.

Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they are said to present a summary of sources and uses of “available spendable resources” during a period.

Because of their spending measurement focus, expenditure recognition for governmental fund types excludes amounts represented by non-current liabilities. Since they do not affect net current assets, such long-term amounts are not recognized as governmental fund type expenditures or fund liabilities.

Amounts expended to acquire capital assets are recorded as expenditures in the year that resources are expended, rather than as fund assets. The proceeds of long- term debt are recorded as an other financing source rather than as a fund liability.

Debt service expenditures are recorded only when payment is due.

Basis of Presentation

a. Governmental Major Funds

General Fund – The General Fund is the District’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund.

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Basis of Presentation (Continued)
Governmental Major Funds (Continued)
Debt Service Fund – Accounts for debt service requirements to retire the capital improvement bonds which were used to finance the construction of District infrastructure improvements.
Capital Projects Fund – The Capital Projects Funds account for construction of infrastructure improvements within the boundaries of the district.
Non-current Governmental Assets/Liabilities
GASB Statement 34 requires that non-current governmental assets, such as infrastructure and improvements, and non-current governmental liabilities, such as general obligation bonds and developer obligations be reported in the governmental activities column in the government-wide Statement of Net Position.
Assets, Liabilities, and Net Position or Equity
Cash and Investments
Florida Statutes require state and local governmental units to deposit monies with financial institutions classified as "Qualified Public Depositories," a multiple financial institution pool whereby groups of securities pledged by the various financial institutions provide common collateral from their deposits of public funds. This pool is provided as additional insurance to the federal depository insurance and allows for additional assessments against the member institutions, providing full insurance for public deposits.
The District is authorized to invest in those financial instruments as established by Section 218.415, Florida Statutes. The authorized investments consist of:
Direct obligations of the United States Treasury;
The Local Government Surplus Funds Trust or any intergovernmental investment pool authorized pursuant to the Florida Interlocal Cooperative Act of 1969;
Interest-bearing time deposits or savings accounts in authorized qualified public depositories;
Securities and Exchange Commission, registered money market funds with the highest credit quality rating from a nationally recognized rating agency.

For purposes of the statement of cash flows, cash equivalents include time deposits and all highly liquid debt instruments with original maturities of three months or less and held in a qualified public depository as defined by Section 280.02, Florida Statutes.

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
4. Assets, Liabilities, and Net Position or Equity (Continued)
Restricted Net Position
Certain net position of the District is classified as restricted on the statement of net position because their use is limited either by law through constitutional provisions or enabling legislation; or by restrictions imposed externally by creditors. In a fund with both restricted and unrestricted net position, qualified expenses are considered to be paid first from restricted net position and then from unrestricted net position.
Capital Assets
Capital assets, which include infrastructure, improvements other than buildings and equipment are reported in the governmental activities column.
The District defines capital assets as assets with an initial, individual cost of $5,000 or more and an estimated useful life in excess of two years. The valuation basis for all assets is historical cost.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend its useful life are not capitalized.
Major outlays for capital assets and improvements are capitalized as projects are constructed.
Depreciation of capital assets is computed and recorded by utilizing the straight-line method. Estimated useful lives of the various classes of depreciable capital assets
	rare as follows:		
	Infrastructure Improvements Equipment	23 years
20 years
5 years	
e.	Bond Discounts		
Bond discounts are amortized over the life of the bonds.
Budgets
Budgets are prepared and adopted after public hearings for the governmental funds, pursuant to Chapter 190, Florida Statutes. The District utilizes the same basis of accounting for budgets as it does for revenues and expenditures in its various funds. The legal level of budgetary control is at the fund level. All budgeted appropriations lapse at year end. Formal budgets are adopted for the general and debt service funds. As a result, deficits in the budget columns of the accompanying financial statements may occur.

NOTE B – CASH AND INVESTMENTS

All deposits are held in qualified public depositories and are included on the accompanying balance sheet as cash and investments.

Custodial Credit Risk – Deposits

Custodial credit risk is the risk that in the event of a bank failure, the District's deposits may not be returned to it. The District does not have a formal deposit policy for custodial credit risk; however, they follow the provisions of Chapter 280, Florida Statutes regarding deposits and investments. As of September 30, 2021, the District's bank balance was $894,360 and the carrying value was $893,560. Exposure to custodial credit risk was as follows. The District maintains all deposits in a qualified public depository in accordance with the provisions of Chapter 280, Florida Statutes, which means that all deposits are fully insured by Federal Depositors Insurance or collateralized under Chapter 280, Florida Statutes.

As of September 30, 2021, the District had the following investments and maturities:

Investment		Maturities		Fair Value	
First American Treasury Obligations	13 Days*	 $	404,186 	
*Maturity is a weighted average maturity	
The District categorizes its fair value measurement within the fair value hierarchy established by generally accepted accounting principles. The fair value is the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. The District uses a market approach in measuring fair value that uses prices and other relevant information generated by market transactions involving identical or similar assets, liabilities, or groups of assets and liabilities.

Assets or liabilities are classified into one of three levels. Level 1 is the most realizable and is based on quoted price for identical assets, or liabilities, in an active market. Level 2 uses significant other observable inputs when obtained quoted prices for identical or similar assets, or liabilities, in markets that are not active. Level 3 is the least reliable and uses significant unobservable inputs that uses the best information available under the circumstances which includes the District's own data in measuring unobservable inputs.

Based on the criteria in the preceding paragraph, the investment listed above is a Level 1 asset. Interest Rate Risk
The District does not have a formal investment policy that limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates.

NOTE B – CASH AND INVESTMENTS (CONTINUED)

Credit Risk

The District's investments in treasury funds, money markets and government loans are limited by state statutory requirements and bond compliance. The District has no investment policy that would further limit its investment choices. As of September 30, 2021, the District’s investments in First American Treasury Obligations was rated AAAm by Standard & Poor’s.

Concentration of Credit Risk

The District places no limit on the amount it may invest in any one fund. The investments in First American Treasury Obligations represent 100% of District’s total investments.

The types of deposits and investments and their level of risk exposure as of September 30, 2021 were typical of these items during the fiscal year then ended. The District considers any decline in fair value for certain investments to be temporary.

NOTE C – SPECIAL ASSESSMENT REVENUES
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 by the District. Debt Service Assessments are levied when bonds are issued and collected annually. The District may collect assessments directly or utilize the uniform method of collections (Chapter 197.3632, Florida Statues). Direct collected assessments are due as determined by annual assessment resolution adopted by the Board of Supervisors. Assessments collected under the uniform method are due and payable on November 1 or as soon as the assessment roll is certified and delivered to the Tax Collector. Per Section 197.162, Florida Statutes discounts are allowed for early payment at the rate of 4% in November, 3% in December, 2% in January, and 1% in February. Taxes paid in March are without discount.

All unpaid assessments become delinquent as of April 1. Virtually all unpaid assessments are collected via the sale of tax certificates on, or prior to, June 1; therefore, there were no material amounts receivable at fiscal year-end. Assessment levied for the 2020-2021 fiscal year were levied in October 2019.

NOTE D – CAPITAL ASSETS

Capital asset activity for the year ended September 30, 2021 was as follows:

		Balance					Balance	
	October 1,					September 30,	
		2020				Additions			 Disposals 		2021		
Governmental activities:							
Capital assets, not being depreciated	$	7,860	$	-	$	7,860		$	-	

Capital assets, being depreciated:										
Infrastructure		3,207,578		-		-	3,207,578	
Improvements other than buildings		1,751,197		-		-	1,751,197	
Equipment		75,289 			15,720 			- 		91,009 	
Total Capital Assets, Being Depreciated		5,034,064 			15,720 			- 		5,049,784 	
Less accumulated depreciation for:										
Infrastructure		(1,830,435)		(139,812)		-	(1,970,247)	
Improvements other than buildings		(1,123,671)		(87,560)		-	(1,211,231)	
Equipment		(45,788)			(9,596)			- 		(55,384)	
Total Accumulated Depreciation		(2,999,894)			(236,968)			- 		(3,236,862)	
Total Capital Assets Depreciated, Net	 $		2,042,030 	 $	(221,248)  $	7,860 	 $	1,812,922 	
  
Current year depreciation of $236,968 was charged to physical environment.

NOTE E – LONG-TERM DEBT

Governmental Activities

The following is a summary of activity for long-term debt of the Governmental Activities for the year ended September 30, 2021:

Long-term debt at October 1, 2020	$	1,735,000 Principal payments			(60,000)
Long-term debt at September 30, 2021	$	1,675,000 Long-term debt for Governmental Activities is comprised of the following:
Special Assessment Bonds

$8,240,000 Series 2007 Special Assessment Bonds are due in annual principal installments beginning May 2009 maturing May 2038. Interest at a rate of 5.5% is due May and November
beginning November 2007. Current portion is $60,000.	$   1,675,000

The annual requirements to amortize the principal and interest of bonded debt outstanding as of September 30, 2021 are as follows:

Year Ending

2023	65,000	88,825	153,825	
2024	70,000	85,250	155,250	
2025	75,000	81,400	156,400	
2026	75,000	77,275	152,275	
2027-2031	450,000	319,000	769,000	
2032-2036	595,000	180,675	775,675	
2037-2038		285,000 			23,650 			308,650 	

 September 30,  		Principal				Interest				Total	 2022	$		60,000			$		92,125			$		152,125

Totals	 $ 1,675,000 	 $	948,200 	 $ 2,623,200 

Summary of Significant Bond Resolution Terms and Covenants

The Series 2007 Bonds are subject to redemption at the option of the District prior to their maturity, in whole or in part, at any time after May 1, 2017 at a redemption price equal to the principal amount of the Series 2007 Bonds to be redeemed, together with accrued interest to the date of redemption. The Series 2007 Bonds are subject to extraordinary mandatory redemption prior to maturity in the manner determined by the Bond Registrar if certain events occurred as outlined in the Trust Indenture.

The Trust Indenture established certain amounts be maintained in a reserve account. In addition, the Trust Indenture has certain 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.

Depository Funds

The bond resolution establishes certain funds and determines the order in which revenues are to be deposited into these funds. A description of the significant funds, including their purposes, is as follows:

Reserve Funds – The Series 2007 Reserve Account was funded from the proceeds of the Series 2007 Bonds in an amount set forth in the bond indenture. The current reserve requirement is calculated as the reserve account percentage times the principal amount deemed outstanding. Monies held in the reserve accounts will be used only for the purposes established in the Trust Indenture.

The following is a schedule of required reserve balance as of September 30, 2021:

Special Assessmnet Bonds, Series 2007	Reserve
	Balance	
 $	118,518 		Reserve
 Requirement 
 $	114,483 	

NOTE F – 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 for which the government carries commercial insurance. There were no claims or settled claims from these risks that exceeded commercial coverage in the last three years.

NOTE G – SUBSEQUENT EVENT

In November 2021, the District made a prepayment of $5,000 on the Series 2007 Special Assessment Bonds.

INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

To the Board of Supervisors
Bainebridge Community Development District Jacksonville, 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 Bainebridge Community Development District, as of and for the year ended September 30, 2021, and the related notes to the financial statements, and have issued our report thereon dated February 21, 2022.

Internal Control Over Financial Reporting

In planning and performing our audit, we considered Bainebridge Community Development District's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of Bainebridge Community Development District’s internal control. Accordingly, we do not express an opinion on the effectiveness of Bainebridge Community Development District's internal control.

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

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

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Board of Supervisors
Bainebridge Community Development District

Compliance and Other Matters

As part of obtaining reasonable assurance about whether Bainebridge Community Development District's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of this Report

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

Berger, Toombs, Elam, Gaines & Frank Certified Public Accountants PL
Fort Pierce, Florida February 21, 2022

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MANAGEMENT LETTER

To the Board of Supervisors
Bainebridge Community Development District Jacksonville, Florida

Report on the Financial Statements

We have audited the financial statements of the Bainebridge Community Development District as of and for the year ended September 30, 2021, and have issued our report thereon dated February 21, 2022.

Auditor’s Responsibility

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

Other 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 Financial Statements Performed in Accordance with Government Auditing Standards and our Independent Auditor’s Report on an examination conducted in accordance with AICPA Professionals Standards, AT-C Section 315, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports, which are dated February 21, 2022, should be considered in conjunction with this management letter.

Prior Audit Findings

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

Financial Condition and Management

Section 10.554(1)(i)5.a. and 10.556(7), Rules of the Auditor General, require us to apply appropriate procedures and communicate the results of our determination as to whether or not Bainebridge Community Development District has met one or more of the conditions described in Section 218.503(1), Florida Statutes, and to identify the specific conditions met. In connection with our audit, we determined that Bainebridge Community Development District did not meet any of the conditions described in Section 218.503(1) Florida Statutes.

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To the Board of Supervisors
Bainebridge Community Development District

Pursuant to Sections 10.554(1)(i)5.b. and 10.556(8), Rules of the Auditor General, we applied financial condition assessment procedures for Bainebridge Community Development District. It is management’s responsibility to monitor the Bainebridge Community Development District’s financial condition; our financial condition assessment was based in part on the representations made by management and the review of the financial information provided by the same as of September 30, 2021.

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

Specific Information

The information provided below was provided by management and has not been audited; therefore, we do not express an opinion or provide any assurance on the information.
As required by Section 218.39(3)(c), Florida Statutes, and Section 10.554(1)(i)6, Rules of the Auditor General, the Bainebridge Community Development District reported:
The total number of district employees compensated in the last pay period of the District’s fiscal year: The District did not have any employees other than the 5 Board Members.
The total number of independent contractors to whom nonemployee compensation was paid in the last month of the District’s fiscal year: 9
All compensation earned by or awarded to employees, whether paid or accrued, regardless of contingency: none
All compensation earned by or awarded to nonemployee independent contractors, whether paid or accrued, regardless of contingency: $28,889.48
Each construction project with a total cost of at least $65,000 approved by the District that is scheduled to begin on or after October 1, 2020, together with the total expenditures for such project: The District had no construction projects during the year.
A budget variance based on the budget adopted under Section 189.016(4), Florida Statutes, before the beginning of the fiscal year being reported if the District amends a final adopted budget under Section 189.016(6), Florida Statutes: There were no amendments to the FY 2021 budget.

As required by Section 218.39(3)(c), Florida Statutes, and Section 10.554(1)(i)8, Rules of the Auditor General, the Bainebridge Community Development District reported:
The rate or rates of non-ad valorem special assessments imposed by the District: General Fund $734.29 and the Debt Service Fund $535.05/$1,080.97/$399.31.
The amount of special assessments collected by or on behalf of the District: Total Special Assessments collected was $529,539.
The total amount of outstanding bonds issued by the District and the terms of such bonds: $1,675,000, issued in 2007, fixed rate 5.5%, matures May, 2038.

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To the Board of Supervisors
Bainebridge Community Development District

Additional Matters

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

Purpose of this Letter

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

Berger, Toombs, Elam, Gaines & Frank Certified Public Accountants PL
Fort Pierce, Florida February 21, 2022

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INDEPENDENT ACCOUNTANTS’ REPORT/COMPLIANCE WITH SECTION 218.415, FLORIDA STATUTES

To the Board of Supervisors
Bainebridge Community Development District Jacksonville, Florida

We have examined Bainebridge Community Development District's compliance with Section 218.415, Florida Statutes during the year ended September 30, 2021. Management is responsible for Bainebridge Community Development District’s compliance with those requirements. Our responsibility is to express an opinion on Bainebridge Community Development District’s compliance based on our examination.

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

In our opinion, Bainebridge Community Development District complied, in all material respects, with the aforementioned requirements during the year ended September 30, 2021.

Berger, Toombs, Elam, Gaines & Frank Certified Public Accountants PL
Fort Pierce, Florida February 21, 2022

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