Greeneway Improvement District ANNUAL FINANCIAL REPORT
September 30, 2019

Greeneway Improvement District ANNUAL FINANCIAL REPORT
Fiscal Year Ended September 30, 2019

 TABLE OF CONTENTS

Page
 Number
FINANCIAL SECTION

REPORT OF INDEPENDENT AUDITORS	1-2
MANAGEMENT’S DISCUSSION AND ANALYSIS	3-8
BASIC FINANCIAL STATEMENTS:
Government-wide Financial Statements:
Statement of Net Position	9
Statement of Activities	10
Fund Financial Statements:
Balance Sheet – Governmental Funds	11
Reconciliation of Total Governmental Fund Balances
to Net Position of Governmental Activities	12
Statement of Revenues, Expenditures and Changes in Fund
Balances – Governmental Funds	13
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds
to the Statement of Activities	14
Statement of Revenues, Expenditures and Changes in Fund
Balances – Budget and Actual – General Fund	15
Notes to Financial Statements	16-30
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	31-32
MANAGEMENT LETTER	33-34
INDEPENDENT ACCOUNTANTS’ REPORT/COMPLIANCE WITH SECTION
218.415, FLORIDA STATUTES	35

REPORT OF INDEPENDENT AUDITORS

To the Board of Supervisors Greeneway Improvement District Orlando, Florida

Report on the Financial Statements

We have audited the accompanying financial statements of Greeneway Improvement District as of and for the year ended September 30, 2019, 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 audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Accounting Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the 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.

- 1 -

To the Board of Supervisors Greeneway Improvement 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 Greeneway Improvement District as of September 30, 2019, 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 Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquires of management regarding 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 a report dated June 26, 2020 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 Greeneway Improvement District’s internal control over financial reporting and compliance.

Berger, Toombs, Elam, Gaines & Frank Certified Public Accountants PL
Fort Pierce, Florida June 26, 2020
- 2 -

Management’s discussion and analysis of Greeneway Improvement 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 land, construction in progress and improvements other than buildings 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, a reconciliation is 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, 2019.

The District’s total assets were exceeded by total liabilities by $(36,657,180) (net position). Net investment in capital assets for the District was $(215,887). Unrestricted net position for Governmental Activities was $(36,786,531). Restricted net position was
$345,238.

Governmental activities revenues totaled $5,456,244 while governmental activities expenses and conveyances totaled $6,900,463.

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

 			2019		2018	
Current assets	$	124,269	$	78,385	
Restricted assets	5,452,894	6,646,153	
Capital assets, net	 			13,080,874	9,254,504	
Total Assets	 			18,658,037	15,979,042	

Current liabilities	
3,845,079	2,975,090	
Non-current liabilities	 			51,470,138	48,216,913	
Total Liabilities	 			55,315,217	51,192,003	

Net investment in capital assets	
(215,887)	(113,314)	
Net position - restricted	345,238	-	
Net position - unrestricted	   	(36,786,531)	(35,099,647)	
Total Net Position	$ (36,657,180)	$ (35,212,961)	

The decrease in restricted assets and increase in capital assets was primarily due to capital asset additions less amounts conveyed to other governmental entities in the current year.

The increase in current liabilities was primarily the result of the increase in contracts and retainage payable.

The increase in non-current liabilities was primarily the result of the issuance of a bond anticipation note in the current year.

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	
	Governmen	tal Activities	
	2019	2018	
Program Revenues			
Charges for services	$	5,412,234	$	4,137,585	
General Revenues			
Investment earnings	21,131	27,284	
Miscellaneous	 			22,879 	 			300 	
Total Revenues	 			5,456,244 	 			4,165,169 	
Expenses			
General government	116,714	122,688	
Physical environment	826,211	4,435,760	
Interest and other charges	 			3,083,103 	2,623,939	
Total Expenses	 			4,026,028 	 			7,182,387 	
Conveyance of capital assets	 			2,874,435 	 			- 	
Change in Net Position	(1,444,219)	(3,017,218)	
Net Position - Beginning of Year	    	(35,212,961) 	(32,195,743)	

Net  Position - End of Year	 	
$ (36,657,180) 	
$ (35,212,961)	

The increase in charges for services is due to the increase in debt service assessments received in the current year.

The decrease in physical environment is related to the conveyance of capital assets to other governments in the prior year, which was reported as a conveyance 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, 2019 and 2018.

Description			Governmental Activities
2019	2018	
Land and improvements		$	306,675		$	306,675	
Construction in progress			11,451,494			7,522,551	
Improvements other than buildings			1,538,592			1,538,592	
Accumulated depreciation
Total Capital Assets	
 	 	
$		(215,887) 
13,080,874 	
 	 	
$		(113,314) 
9,254,504 	

The activity for the year consisted of $6,803,378 in additions to construction in progress,
$2,874,435 of construction in progress conveyed to other governments and $102,573 in depreciation.

 General Fund Budgetary Highlights

Actual governmental expenditures were less than final budgeted amounts primarily due to the budgeted reserves that were not expended.

The General Fund budget was amended for increased reclaimed water and irrigation costs.

 Debt Management

Governmental Activities debt includes the following:

In April 2013, the District issued $55,750,000 Series 2013 Special Assessment Revenue Bonds. The bonds were issued to finance the acquisition and construction of certain improvements for the benefit of the District. The balance outstanding at September 30, 2019 was $48,960,000.

In July 2017, the District entered into an agreement with the Developer about funding certain improvements. The Developer agreed to advance monies until the District obtained new financing. As of September 30, 2019, the Developer had advanced
$115,205.

In November 2018, the District issued a not-to-exceed $24,000,000 Bond Anticipation Note. The Note was issued to fund a portion of the Series 2018 Project. The balance outstanding at September 30, 2019 was $4,273,288.

OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)

 Economic Factors and Next Year’s Budget

Greeneway Improvement 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 2020.

 Request for Information

The financial report is designed to provide a general overview of Greeneway Improvement 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 Greeneway Improvement District, PFM Group Consulting, LLC, 12051 Corporate Blvd., Orlando, Florida 32817.

STATEMENT OF NET POSITION
September 30, 2019

	Governmental
Activities	
ASSETS		
Current Assets		
Cash	$	96,436	
Investments	1,500	
Accounts receivable	12,879	
Accrued interest receivable	783	
Deposits	1,251	
Prepaid expenses	 		11,420 	
Total Current Assets	 		124,269 	
Non-current Assets Restricted assets
Cash and investments	5,452,894
Capital assets, not being depreciated
Land and improvements	306,675
Construction in progress	11,451,494
Capital assets, being depreciated
Improvements other than buildings	1,538,592	
Less: accumulated depreciation	 			(215,887) 	
Total Non-current Assets	 			18,533,768 	
Total Assets	 			18,658,037 	

LIABILITIES
Current Liabilities
Accounts payable and accrued expenses	32,331	
Contracts and retainage payable	1,619,755	
Due to other governmental units	26,637	
Bonds payable	1,055,000	
Accrued interest payable	 		1,111,356 	
Total Current Liabilities	 		3,845,079 	
Non-current liabilities Note payable		
115,205	
Bond anticipation note payable		4,273,288	
Bonds payable, net	 		47,081,645 	
Total Non-current Liabilities	 		51,470,138 	
Total Liabilities	 		55,315,217 	

NET POSITION
Net investment in capital assets		

(215,887)	
Restricted for debt service		345,238	
Unrestricted	  	(36,786,531) 	
Total Net Position	 $ (36,657,180) 

See accompanying notes to financial statements.

Greeneway Improvement District STATEMENT OF ACTIVITIES
For the Year Ended September 30, 2019

			Net (Expense)	
			Revenue and	
	Program		Changes in	
	  	Revenues		 	Net Position 	
	Charges for		Governmental	
 Functions/Programs		 	Expenses		Services		Activities	
Governmental Activities				
General government	$	(116,714)	$	101,503		$	(15,211)	
Physical environment	(826,211)	718,536		(107,675)	
Interest on long-term debt	   	(3,083,103)	 		4,592,195 		 		1,509,092 	
Total Governmental Activities	 	$ (4,026,028)	 $	5,412,234 		1,386,206	

General Revenues	
	Miscellaneous revenues		22,879	
I	nvestment earnings		 		21,131 	
	Total General Revenues		 		44,010 	
Conveyance of capital assets		 		(2,874,435) 	
	Change in Net Position		(1,444,219)	
Net Position - October 1, 2018		   	(35,212,961) 	
Net Position - September 30, 2019	 	$ (36,657,180) 	

See accompanying notes to financial statements.

Greeneway Improvement District BALANCE SHEET - GOVERNMENTAL FUNDS
September 30, 2019

									Total	
						Capital			Governmental	
	General	Debt Service		Projects			Funds	
ASSETS										
Cash	$	89,364		$	-	$	7,072		$	96,436	
Investments	1,500			-			-		1,500	
Accounts receivable	-			-	12,879		12,879	
Accrued interest receivable	-			764	19		783	
Due from other funds	1,317	23,297			-		24,614	
Prepaid expenses	11,420			-			-		11,420	
Deposits	1,251			-			-		1,251	
Restricted assets										
Cash and investments, at fair value	-	5,325,593	127,301		5,452,894	

Total Assets	
$	104,852	
$5,349,654	
$	147,271		
$ 5,601,777	

LIABILITIES AND FUND BALANCES										
Liabilities										
Accounts payable and accrued liabilities	$	32,331		$	-		$	-		$	32,331	
Contracts and retainage payable	-			-	1,619,755		1,619,755	
Due to other funds	23,297			-	1,317		24,614	
Due to other governments	26,637			-			-		26,637	
Total Liabilities	82,265			-	1,621,072		1,703,337	

Fund Balances										
Nonspendable - deposits/prepaids	12,671			-			-		12,671	
Restricted for debt service	-	5,349,654			-		5,349,654	
Unassigned	9,916			-	(1,473,801)		(1,463,885)	

Total Fund Balances	
22,587	
5,349,654	
(1,473,801)		
3,898,440	

Total Liabilities and Fund Balances	
$	104,852	
$5,349,654	
$	147,271		
$ 5,601,777	

See accompanying notes to financial statements.

- 11 -

RECONCILIATION OF TOTAL GOVERNMENTAL FUND BALANCES TO NET POSITION OF GOVERNMENTAL ACTIVITIES
September 30, 2019

Total Governmental Fund Balances	$	3,898,440	
Amounts reported for governmental activities in the Statement of Net Position	
are different because:		
Capital assets land, $306,675, construction in progress, $11,451,494,		
and improvements other than buildings, $1,538,592, net of accumulated	
depreciation, $(215,887), are not current financial resources and		
therefore, are not reported at the governmental fund level.	13,080,874	
Long-term liabilities, including bonds payable, $(48,960,000), net of bond		
discounts, net, $823,355, bond anticipation note payable, $(4,273,288)	
and developer note payable, $(115,205), are not due and payable in the	
current period and therefore, are not reported at the governmental		
fund level.	(52,525,138)	
Accrued interest expense for long-term debt is not a current financial use,	
and therefore, is not reported at the governmental fund level.

Net Position of Governmental Activities	(1,111,356)

$ (36,657,180)	

See accompanying notes to financial statements.

- 12 -

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
For the Year Ended September 30, 2019

								Total	
						Capital		Governmental	
	 		General			  Debt Service 		 	Projects			 	Funds		
REVENUES									
Special assessments	$	820,039		$ 4,592,195		$	-		$ 5,412,234	
Miscellaneous revenues		-		-		22,879		22,879	
Interest income		5,838		12,910		2,383		21,131	
Total Revenues		825,877		4,605,105		25,262		5,456,244	

EXPENDITURES									
Current									
General government		116,714		-		-		116,714	
Physical environment		723,638		-		-		723,638	
Capital outlay		-		-		6,803,378		6,803,378	
Debt service									
Principal		-		1,000,000		-		1,000,000	
Interest		-		2,578,630		-		2,578,630	
Other debt service		-		-		425,035		425,035	
Total Expenditures		840,352		3,578,630		7,228,413		11,647,395	

Excess revenues over (under) expenditures		
(14,475)		
1,026,475		
(7,203,151)		
(6,191,151)	

Other Financing Sources/(uses)									
Transfers in		-		14,978		10,201		25,179	
Transfers out		-		(10,201)		(14,978)		(25,179)	
Issuance of bond anticipation note		-		345,057		3,928,231		4,273,288	
Total Other Financing Sources (Uses)		-		349,834		3,923,454		4,273,288	

Net Change in Fund Balances		
(14,475)		
1,376,309		
(3,279,697)		
(1,917,863)	

Fund Balances - October 1, 2018

Fund Balances - September 30, 2019	

$	
 	37,062 

22,587		
 	3,973,345 

$ 5,349,654		
 	1,805,896 

$(1,473,801)		
 	5,816,303 

$  3,898,440	

See accompanying notes to financial statements.	- 13 -

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, 2019

Net Change in Fund Balances - Total Governmental Funds	$	(1,917,863)	
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 capital outlay, $6,803,378, exceeded depreciation,	
$(102,573), and capital asset conveyances $(2,874,435) in the current period.		3,826,370	
Repayments of bond principal are expenditures in the governmental funds, but the			
repayments reduce long-term liabilities in the Statement of Net Position.		1,000,000	
Bond anticipation note proceeds are reflected as an other financing source			
at the fund level, however, they are reflected as an addition to liabilities at the			
government-wide level.		(4,273,288)	
Governmental funds report bond discounts as expenditures. However, in the			
Statement of Activities, the cost is allocated as amortization expense.		(34,937)	
In the Statement of Activities, interest is accrued on outstanding bonds; whereas			
in governmental funds, interest expenditures are reported when due. This is			
the net amount between the prior year and current year accruals.		(44,501)	

Change in Net Position of Governmental  Activities	 	
$		
(1,444,219) 	

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, 2019

									Variance with	
									Final Budget	
	Original			Final					Positive	
	Budget			Budget			Actual		(Negative)	
Revenues										
Special assessments	$ 820,641		$	843,336		$	820,039		$	(23,297)	
Interest income	500			5,838			5,838		-

 		(23,297) 	
Total revenues	   	821,141 	   	849,174 	 		825,877 			
Expenditures										
Current										
General government	116,125			116,684			116,714		(30)	
Physical environment	705,016			732,490			723,638		8,852

 		8,822 

(14,475)

37,062	
Total Expenditures

Net Change in Fund Balances Fund Balances - October 1, 2018	   	821,141 

-

-	   	849,174 

-

-	 		840,352 

(14,475)

37,062			

Fund Balances - September 30, 2019	
$	-		
$	
-		
$	
22,587		
$	22,587	

See accompanying notes to financial statements.

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The financial statements of Greeneway Improvement District (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, as a Community Development District, in 2003, pursuant to the Uniform Community Development District Act of 1980, Chapter 190, Florida Statutes, as amended (the "Act"), by Ordinance 2003022470 of the City Commissioners of Orlando, Florida. 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 without the boundaries of the Greeneway Improvement District. The District is governed by a five-member Board of Supervisors who are elected for four year terms. The District operates within the criteria established by Chapter 190.

As required by GAAP, these financial statements present the Greeneway Improvement 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 in Governmental Accounting Standards Board Statement Number 61, The Financial Reporting Entity, 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

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Measurement Focus and Basis of Accounting (Continued)

Government-wide Financial Statements

Government-wide financial statements report all non-fiduciary information about the reporting government as a whole. These statements include 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 include charges for services, and payments made by parties outside of the reporting government’s citizenry if that money is restricted to a particular program. 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.

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

2. Measurement Focus and Basis of Accounting (Continued)

b. Fund Financial Statements (Continued) Governmental Funds
The District has implemented the 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 the state 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.

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Measurement Focus and Basis of Accounting (Continued)

b. Fund Financial Statements (Continued) 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 were 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

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 the accumulation of resources for the annual payment  of principal and interest on long-term debt.

 Capital Projects Fund – The Capital  Projects  Fund  accounts for the financial  resources to be used in the acquisition or construction of major infrastructure within the District.

Non-current Governmental Assets/Liabilities

GASB Statement 34 requires that non-current governmental assets, such as land and buildings, and non-current governmental liabilities, such as special assessment bonds, 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.

Cash equivalents include time deposits and certificates of deposit 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 Assets

Certain net position of the District are classified as restricted assets 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 assets, qualified expenses are considered to be paid first from restricted net position and then from unrestricted net position.

Capital Assets

Capital assets, which include land and improvements, construction in progress, and improvements other than buildings are reported in the applicable 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 are as follows:

Improvements other than buildings	15 years
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 variance columns of the accompanying financial statements may occur.
Bond Discounts
Bond discounts associated with the issuance of bonds are amortized over the life of the bonds using the straight-line method of accounting.

NOTE	B	–		RECONCILIATION	OF	GOVERNMENT-WIDE	AND	FUND	FINANCIAL STATEMENTS

Explanation of Differences Between the Governmental Fund Balance Sheet and the Government-wide Statement of Net Position

“Total fund balances” of the District’s governmental funds, $3,898,440, differs from “net position” of governmental activities, $(36,657,180), reported in the Statement of Net Position. This difference primarily results from the long-term economic focus of the Statement of Net Position versus the current financial resources focus of the governmental fund balance sheet. The effect of the differences is illustrated as follows.

 Capital related items

When capital assets (that are to be used in governmental activities) are purchased or constructed, the cost of those assets is reported as expenditures in governmental funds. However, the statement of net position included those capital assets among the assets of the District as a whole.

Land	$	306,675	
Construction in progress	11,451,494	
Improvements other than buildings	1,538,592	
Less: accumulated depreciation	 		(215,887)	
Total	 $	13,080,874	
 Long-term debt transactions		
Long-term liabilities applicable to the District’s	governmental activities are not due and	
payable in the current period and accordingly	are  not  reported  as fund liabilities.	All	
liabilities (both current and long-term) are reported in the Statement of Net Position. Balances at September 30, 2019 were:
Bonds payable	$ (48,960,000)	
Bond anticipation note payable	(4,273,288)	
Notes payable	(115,205)	
Bond discount, net	 			823,355 	
Total	 $ (52,525,138)	
 Accrued interest

Accrued liabilities in the Statement of Net Position differ from the amount reported in governmental funds due to accrued interest on bonds.

Accrued interest	$	(1,111,356)

NOTE	B	–		RECONCILIATION	OF	GOVERNMENT-WIDE	AND	FUND	FINANCIAL STATEMENTS (CONTINUED)

Explanation of Differences Between the Governmental Fund Operating Statements and the Statement of Activities

The “net change in fund balances” for government funds, $(1,917,863), differs from the “change in net position” for governmental activities, $(1,444,219), reported in the Statement of Activities. The differences arise primarily from the long-term economic focus of the Statement of Activities versus the current financial resources focus of the governmental funds. The effect of the differences is illustrated below.

 Capital related items

When capital assets that are to be used in governmental activities are purchased or constructed, the resources expended for those assets are reported as expenditures in governmental funds. However, the cost of those assets are capitalized at the government wide level and allocated over their estimated useful lives and reported as depreciation. As a result, fund balances decrease by the amount of financial resources expended, whereas, net position changes by the amount of capital additions net of any depreciation charged for the year.

Capital outlay	$	6,803,378	
Conveyance to other governments	(2,874,435)	
Depreciation	 			(102,573)	
Total	 $	3,826,370	

 Long-term debt transactions

Repayments of bond principal are reported as an expenditure in the governmental funds and, thus, have the effect of reducing fund balance because current financial resources have been used.

Debt principal payments	$	1,000,000	
Proceeds from bond anticipation note payable	$4,273,288)	
Bond discount amortization	 			(34,937)	
Total	 $	(3,308,225)	

Some expenses reported in the Statement of Activities do not require the use of current financial resources, therefore, are not reported as expenditures in governmental funds.

Net change in accrued interest payable	$	(44,501)

NOTE C – 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, 2019, the District's bank balance was $79,244 and the carrying value was $96,436. 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, 2019, the District had the following investments and maturities:

 			Investment			Maturities	Fair Value	
Money Market Account - Managed		N/A		$	4,992,131	
Business Money Market at FL Community Bank		N/A			460,763	
Local Government Surplus

*Weighted Average Maturity		39 Days*	 		1,500 	
			 	$		5,454,394 	

The District categorizes its fair value measurements within the fair value hierarchy recently 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 reliable and is based on quoted price for identical assets, or liabilities, in an active market. Level 2 uses significant other observable inputs when obtaining 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 use 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, Managed Money Market Funds are Level 1 assets.

NOTE C – CASH AND INVESTMENTS (CONTINUED)

 Investments

The District’s investment policy allows management to invest funds in investments permitted under Section 218.415, Florida Statutes. Among other investments, the policy allows  the District to invest in the State Board of Administration Local Government Surplus Funds Trust Funds. Cash placed with the State Board of Administration represents the District’s participation in the Local Government Surplus Funds Trust Fund Investment Pool and is reported at fair value. As a pool participant the District invests in pools of investments in which shares are owned in the pool rather than the underlying investments.

 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.

 Credit Risk

The District's investments are limited by state statutory requirements and bond compliance.  The District has no investment policy that would further limit its investment choices. The Local Government Surplus Funds Trust is an authorized investment under Section 218.415, Florida Statues. The District's Investments in the state investment pool and government loans are limited by the state statutory requirements and bond compliance. The District has monies invested with the Local Government Surplus Fund Trust Fund (Fund), at September 30, 2018. This fund met the requirements of a "2a-7 like pool" as defined in Government Accounting Standards Board, Statement 31.

 Concentration of Credit Risk

The District places no limit on the amount it may invest in any one fund. The investment in the Managed Money Markets Funds are approximately 91% of the District’s total investments. The investments in the Business Money Market Funds are approximately 8.5%. The investments in the Local Government Surplus Funds are less than one percent of the District's total investments.

The types of deposits and investments and their level of risk exposure as of September 30, 2019 were typical of these items during the fiscal year then ended. The State Board of Administration Florida PRIME is rated AAAm per Standard & Poor’s. The Managed Money Market Funds are not rated by any nationally recognized agency.

The District considers any decline in fair value for certain investments to be temporary.

NOTE D – SPECIAL ASSESSMENT REVENUES

Special assessment revenues recognized for the 2018 - 2019 fiscal year were levied in August 2018. Assessments are directly collected by the District and are due in full on December 1, 2018; provided, however that, to the extent permitted by law, the directly collected assessments due may be paid in several partial, deferred payments and according to the following schedule: 50% due no later than December 1, 2018, 25% due no later than February 1, 2019 and 25% due no later than May 1, 2019.

NOTE E – CAPITAL ASSETS

Capital Asset activity for the year ended September 30, 2019 was as follows:

October 1,					September 30,	
	 		2018		  	Additions		  	Deletions		 			2019		
Governmental Activities:							
Capital assets, not being depreciated:								
Land and improvements	$	306,675	$	-	$	-	$	306,675	
Construction in progress	 		7,522,551 	   	6,803,378 	  	(2,874,435) 	    	11,451,494 	
Total Capital Assets, Not Depreciated	 		7,829,226 	   	6,803,378 	  	(2,874,435) 	    	11,758,169 	
Capital assets, being depreciated:								
Improvements other than buildings

Less accumulated depreciation for:	 		1,538,592 	 		- 	 		- 	 			1,538,592 	
Improvements other than buildings Total Accumulated Depreciation
Total Capital Assets Depreciated, Net

Governmental Activities Capital Assets	 		(113,314) 
(113,314) 
1,425,278 

9,254,504	 		(102,573) 
(102,573) 
(102,573) 

6,700,805	 		- 	 		(215,887) 
 		(215,887) 
 		1,322,705 

$ 13,080,874	
	 			 			 		- 		
	 			 			 		- 		
	$		$		$	(2,874,435)		

Current year depreciation, $102,573 is charged to physical environment.

NOTE F – LONG-TERM DEBT

The following is a summary of debt activity for the District for the year ended September 30, 2019:

$55,750,000 Series 2013 Special Assessment Revenue Bonds due in annual installments beginning May 2014 and maturing May 2043 with interest at 5.125% due in May and November and
starting in November 2013. Current portion is $1,055,000.	$ 48,960,000

In July 2017, the District entered into a construction funding agreement with the Developer to complete additional master improvements. The District intends to finance all or a portion of the additional master improvements through the use of proceeds from the sale of special assessment revenue bonds; however, as the District does not presently have funds available to provide for the additional master improvements, the Developer agreed to make available to the District such monies as are necessary to enable the District to proceed with such improvements. The District agreed to reimburse the Developer for all funding provided within forty-five days of receipt of sufficient bond proceeds. If the District does not or cannot issue bonds to provide the funds for the additional improvements within three years, the parties agreed such funds shall be deemed paid in lieu of taxes, fees, or assessments which
might be levied or imposed by the District.	$	115,205

In August 2018, the board approved a resolution authorizing the issuance   of   a   secured   note   in   an   amount   not   to  exceed
$24,000,000 for the purpose of funding a portion of the District’s Series 2018 Project. In November 2018, the District issued a bond anticipation   note   with   a   principal   amount   of   not   to exceed
$24,000,000 and an interest rate of 4.5%. Interest will be due semi-
annually commencing May 1, 2019.	$ 4,273,288

Long-term debt at October 1, 2018	$	50,075,205	
Note proceeds		4,273,288	
Principal payments	 		(1,000,000)	
Long-term Debt at September 30, 2019		53,348,493	
Less bond discount, net
Total long-term debt, net, 2019	
at September 30,	 			(823,355)

 $	52,525,138	

NOTE F – LONG-TERM DEBT (CONTINUED)

Year Ending							
September 30,	

2020	  

$	Principal	

1,055,000	 	

$	Interest	

2,509,200	 	

$	Total	

3,564,200	
2021		1,110,000		2,455,132		3,565,132	
2022		1,170,000		2,398,244		3,568,244	
2023		1,235,000		2,338,282		3,573,282	
2024		1,305,000		2,274,988		3,579,988	
2025-2029		7,640,000		10,297,920		17,937,920	
2030-2034		9,880,000		8,122,102		18,002,102	
2035-2039		12,750,000		5,310,526		18,060,526	
2040-2043
Totals	 	
 $		12,815,000 
48,960,000 	
 $		1,683,304
37,389,698 	
 $		14,498,304
86,349,698 	

The annual requirements to amortize the principal and interest of bonded debt outstanding as of September 30, 2019 are as follows:

The developer note and the bond anticipation note are not included in the above amortization.

 Summary of Significant Bonds Resolution Terms and Covenants

The District levies special assessments pursuant to Section 190.022, Florida Statutes and the assessment rolls are approved by resolutions of the District Board. The collections are to be strictly accounted for and applied to the debt service of the bond series for which they were levied. The District covenants to levy special assessments in annual amounts adequate to provide for payment of principal and interest on the bonds. Payment of principal and interest is dependent on the money available in the debt service fund and the District’s ability to collect special assessments levied.

The Bonds are subject to redemption at the option of the District and are also subject to extraordinary mandatory redemption prior to maturity as outlined in the Trust Indenture.

The bond indenture requires that the District maintain adequate funds in the reserve account to meet the debt service requirements as defined in the Trust Indenture. The District is in compliance with the requirements as of September 30, 2019.

	Reserve		Reserve	
	Balance		Requirement	
Series 2013, Special Assessment Revenue Bonds	$	3,551,197		$	3,551,197	
Series 2018, Bond Anticipation Note	$	341,863		$	341,863	

NOTE G – INTERLOCAL AGREEMENTS
The District previously entered into an interlocal agreement related to cost sharing for certain infrastructure projects with Myrtle Creek Improvement District ("Myrtle Creek") and Boggy Creek Improvement District ("Boggy Creek"). These districts are related through a common developer. The agreement provides for the improvement to be constructed, acquired or otherwise provided by Boggy Creek and that Boggy Creek will be reimbursed for these costs from the District and Myrtle Creek. The projected costs related to the agreement total approximately $33.8 million, with costs to be split 31.5% for Myrtle Creek, 32.5% for Boggy Creek and 36% for the District. The District, Myrtle Creek and Boggy Creek also previously entered into an agreement regarding interchange maintenance costs based on the same cost allocation.
NOTE H – INTERFUND BALANCES

Interfund balances at September 30, 2019, consisted of the following:

 		Payable Fund	
Capital
 Receivable Fund		General Fund		Projects Fund		Total	
General Fund	$	-		$	1,317		$	1,317	
Debt Service Fund	 			23,297 		-		23,297	
Total	 $	23,297 		$	1,317		$	24,614	

Interfund balances are related to expenditures paid by the General Fund on behalf of the Capital Projects Fund and assessment allocations due from the General Fund to the Debt Service Fund.

Interfund transfers for the year ended September 30, 2019, consisted of the following:

 			Transfers Out	
Debt Service	Capital Projects	
Transfers In			Fund	Fund			Total	
Debt Service Fund		$	-		$	14,978		$	14,978	
Capital Projects Fund
Total	 		10,201 	 			- 	 			10,201 	
		$	10,201		$	14,978		$	25,179	

Interfund transfers are related to decreases in debt service reserve requirements and the closing of the Cost of Issuance Account, in accordance with the Bond Indentures.

NOTE I – ECONOMIC DEPENDENCY
A significant portion of the District's activity is dependent upon continued involvement of the Developer, the loss of which could have a material adverse effect on the District's operations. At September 30, 2019, the Developer owned a significant amount of the assessable property located within the District's boundaries.

NOTE J – RISK MANAGEMENT
The District is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; and natural disasters. The District maintains commercial insurance coverage to mitigate the risk of loss. Management believes such coverage is sufficient to preclude any significant uninsured losses to the District. The District has not filed any insurance claims in any of the previous three fiscal years.

NOTE K – SUBSEQUENT EVENT

Subsequent to year end, the District conveyed certain roadways valued at $1,536,500 to the City of Orlando.

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

To the Board of Supervisors Greeneway Improvement District Orlando, 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 Greeneway Improvement District, as of and for the year ended September 30, 2019, and the related notes to the financial statements, and have issued our report thereon dated June 26, 2020.

Internal Control Over Financial Reporting

In planning and performing our audit, we considered Greeneway Improvement District's internal control over financial reporting to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of Greeneway Improvement District’s internal control. Accordingly, we do not express an opinion on the effectiveness of Greeneway Improvement District's internal 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 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 over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

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To the Board of Supervisors Greeneway Improvement District

Compliance and Other Matters

As part of obtaining reasonable assurance about whether Greeneway Improvement 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 June 26, 2020

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 MANAGEMENT LETTER

To the Board of Supervisors
Greeneway Improvement District Orlando, Florida

Report on the Financial Statements

We have audited the financial statements of the Greeneway Improvement District as of and for the year ended September 30, 2019, and have issued our report thereon dated June 26, 2020.

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 June 26, 2020, 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 Greeneway Improvement 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 Greeneway Improvement 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 Greeneway Improvement District

Pursuant to Sections 10.554(1)(i)5.c. and 10.556(8), Rules of the Auditor General, we applied financial condition assessment procedures for Greeneway Improvement District. It is management’s responsibility to monitor the Greeneway Improvement 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, 2019.

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.

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 June 26, 2020

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INDEPENDENT ACCOUNTANT’S REPORT/COMPLIANCE WITH SECTION 218.415, FLORIDA STATUTES

To the Board of Supervisors Greeneway Improvement District Orlando, Florida

We have examined Greeneway Improvement District's compliance with Section 218.415, Florida Statutes during the year ended September 30, 2019. Management is responsible for Greeneway Improvement District’s compliance with those requirements. Our responsibility is to express an opinion on Greeneway Improvement 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 Greeneway Improvement 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 Greeneway Improvement District’s compliance with the specified requirements.

In our opinion, Greeneway Improvement District complied, in all material respects, with the aforementioned requirements during the year ended September 30, 2019.

Berger, Toombs, Elam, Gaines & Frank Certified Public Accountants PL
Fort Pierce, Florida June 26, 2020

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