Brighton Lakes Community Development District

(1)

Brighton

Lakes

Community

Development

District

FINANCIAL

STATEMENTS

September30,2014

(2)

September30,2014

REPORT

IndependentAuditor’sReport 1

FINANCIALSTATEMENTS

Management’sDiscussionAndAnalysis(requiredsupplementalinformation) 3

BasicFinancialStatements

GovernmentͲWideFinancialStatements

StatementofNetPosition 8

StatementofActivities 9

FundFinancialStatements

BalanceSheet–GovernmentalFunds 10

ReconciliationoftheBalanceSheetofGovernmentalFundstotheStatement

ofNetPosition 11

StatementofRevenues,ExpendituresandChangesinFundBalances–

GovernmentalFunds 12

ReconciliationoftheStatementofRevenues,ExpendituresandChangesin

FundBalancesofGovernmentalFundstotheStatementofActivities 13

NotestoFinancialStatements 14

RequiredSupplementalInformation(otherthanMD&A)

BudgettoActualComparisonScheduleͲGeneralFund 23

ReportonInternalControlOverFinancialReportingandonComplianceandOther MattersBasedonanAuditofFinancialStatementsPerformedinAccordanceWith

GovernmentAuditingStandards 24

ManagementLetter 26

(3)

INDEPENDENTAUDITOR'SREPORT

TotheBoardofSupervisors

BrightonLakesCommunityDevelopmentDistrict

OsceolaCounty,Florida

ReportontheFinancialStatements

Wehaveauditedtheaccompanyingfinancialstatementsofthegovernmentalactivitiesandeachmajor

fundofBrightonLakesCommunityDevelopmentDistrict(hereinafterreferredtoas“District”),asofand

fortheyearendedSeptember30,2014,andtherelatednotestothefinancialstatements,which

collectivelycomprisetheDistrict’sbasicfinancialstatementsaslistedinthetableofcontents.

Management’sResponsibilityfortheFinancialStatements

Managementisresponsibleforthepreparationandfairpresentationofthesefinancialstatementsin

accordancewithaccountingprinciplesgenerallyacceptedintheUnitedStatesofAmerica;thisincludes

thedesign,implementation,andmaintenanceofinternalcontrolrelevanttothepreparationandfair

presentationoffinancialstatementsthatarefreefrommaterialmisstatement,whetherduetofraudor

error.

Auditor’sResponsibility

Ourresponsibilityistoexpressopinionsonthesefinancialstatementsbasedonouraudit.We

conductedourauditinaccordancewithauditingstandardsgenerallyacceptedintheUnitedStatesof

AmericaandthestandardsapplicabletofinancialauditscontainedinGovernmentAuditingStandards,

issuedbytheComptrollerGeneraloftheUnitedStates.Thosestandardsrequirethatweplanand

performtheaudittoobtainreasonableassuranceaboutwhetherthefinancialstatementsarefreefrom

materialmisstatement.

Anauditinvolvesperformingprocedurestoobtainauditevidenceabouttheamountsanddisclosuresin

thefinancialstatements.Theproceduresselecteddependontheauditor’sjudgment,includingthe

assessmentoftherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudor

error.Inmakingthoseriskassessments,theauditorconsidersinternalcontrolrelevanttotheentity’s

preparationandfairpresentationofthefinancialstatementsinordertodesignauditproceduresthat

areappropriateinthecircumstances,butnotforthepurposeofexpressinganopiniononthe

effectivenessoftheentity’sinternalcontrol.Accordingly,weexpressnosuchopinion.Anauditalso

includesevaluatingtheappropriatenessofaccountingpoliciesusedandthereasonablenessof

significantaccountingestimatesmadebymanagement,aswellasevaluatingtheoverallpresentationof

(4)

Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisfor

ourauditopinions.

Opinions

Inouropinion,thefinancialstatementsreferredtoabovepresentfairly,inallmaterialrespects,the

respectivefinancialpositionofthegovernmentalactivitiesandeachmajorfundoftheDistrictasof

September30,2014,andtherespectivechangesinfinancialpositionfortheyearthenendedin

conformitywithaccountingprinciplesgenerallyacceptedintheUnitedStatesofAmerica.

OtherMatters

RequiredSupplementaryInformation

Accounting principles generally accepted in the United States of America require that the

management’sdiscussionandanalysisandbudgetarycomparisoninformation,aslistedinthetableof

contents,bepresentedtosupplementthebasicfinancialstatements.Suchinformation,althoughnota

partofthebasicfinancialstatements,isrequiredbytheGovernmentalAccountingStandardsBoard,

whoconsidersittobeanessentialpartoffinancialreportingforplacingthebasicfinancialstatements

inanappropriateoperational,economic,orhistoricalcontext.Wehaveappliedcertainlimited

procedurestotherequiredsupplementaryinformationinaccordancewithauditingstandardsgenerally

acceptedintheUnitedStatesofAmerica,whichconsistedofinquiriesofmanagementaboutthe

methods of preparing the information and comparing the information for consistency with

management’sresponsestoourinquiries,thebasicfinancialstatements,andotherknowledgewe

obtainedduringourauditofthebasicfinancialstatements.Wedonotexpressanopinionorprovide

anyassuranceontheinformationbecausethelimitedproceduresdonotprovideuswithsufficient

evidencetoexpressanopinionorprovideanyassurance.

OtherReportingRequiredbyGovernmentAuditingStandards

InaccordancewithGovernmentAuditingStandards,wehavealsoissuedourreportdatedFebruary27,

2015,onourconsiderationoftheDistrict'sinternalcontroloverfinancialreportingandourtestsofits

compliancewithcertainprovisionsoflaws,regulations,contractsandgrantagreementsandother

matters.Thepurposeofthatreportistodescribethescopeofourtestingofinternalcontrolover

financialreportingandcomplianceandtheresultsofthattesting,andnottoprovideanopiniononthe

internalcontroloverfinancialreportingoroncompliance.Thatreportisanintegralpartofanaudit

performedinaccordancewithGovernmentAuditingStandardsinconsideringtheDistrict’sinternal

controloverfinancialreportingandcompliance.

CARR,RIGGS&INGRAM,LLC

MiramarBeach,Florida

(5)

Management’s

Discussion

And

Analysis

(6)

Management’sDiscussionandAnalysis

OurdiscussionandanalysisoftheBrightonLakesCommunityDevelopmentDistrict’sfinancial

performanceprovidesanoverviewoftheDistrict’sfinancialactivitiesforthefiscalyearended

September30,2014.PleasereaditinconjunctionwiththeDistrict’sfinancialstatements,whichbegin

onpage8.

FINANCIALHIGHLIGHTS

x AtSeptember30,2014,theassetsanddeferredoutflowsofresourcesoftheDistrictexceeded

itsliabilitiesbyapproximately$12.9million.

x DuringthefiscalyearendedSeptember30,2014,theDistrictincurredapproximately$328,000

ofinterestexpendituresandrepaidprincipalof$170,000.

USINGTHEANNUALREPORT

Thisannualreportconsistsofaseriesoffinancialstatements.TheStatementofNetPositionandthe

StatementofActivitiesonpages8–9provideinformationabouttheactivitiesoftheDistrictasawhole

andpresentalongerͲtermviewoftheDistrict’sfinances.Fundfinancialstatementsstartonpage10.

Forgovernmentalactivities,thesestatementstellhowtheseserviceswerefinancedintheshortͲtermas

wellaswhatremainsforfuturespending. FundfinancialstatementsalsoreporttheDistrict’s

operationsinmoredetailthanthegovernmentͲwidestatementsbyprovidinginformationaboutthe

District’smostsignificantfunds.

ReportingtheDistrictasaWhole

OuranalysisoftheDistrictasawholebeginsonpage4.Oneofthemostimportantquestionsasked

abouttheDistrict’sfinancesis,“IstheDistrictasawholebetterofforworseoffasaresultoftheyear’s

activities?”TheStatementofNetPositionandtheStatementofActivitiesreportinformationaboutthe

Districtasawholeandaboutitsactivitiesinawaythathelpsanswerthisquestion.Thesestatements

includeallassetsandliabilitiesusingtheaccrualbasisofaccounting,whichissimilartotheaccounting

usedbymostprivateͲsectorcompanies.Allofthecurrentyear’srevenuesandexpensesaretakeninto

accountregardlessofwhencashisreceivedorpaid.

ThesetwostatementsreporttheDistrict’snetpositionandrelatedchangesduringthecurrentyear.

YoucanthinkoftheDistricts’netposition–thedifferencebetweenassetsandliabilities–asonewayto

measuretheDistrict’sfinancialhealth,orfinancialposition.Overtime,increasesordecreasesinthe

District’snetpositionisoneindicatorofwhetheritsfinancialhealthisimprovingordeteriorating.You

willneedtoconsiderothernonfinancialfactors;however,suchaschangesintheDistrict’sassessment

baseandtheconditionoftheDistrict’sinfrastructure,toassesstheoverallhealthoftheDistrict.

ReportingtheDistrict’sMostSignificantFunds

(7)

BrightonLakesCommunityDevelopmentDistrict

Management’sDiscussionandAnalysis

Ͳ4Ͳ

10andprovidedetailedinformationaboutthemostsignificantfunds–nottheDistrictasawhole.

SomefundsarerequiredtobeestablishedbyStatelawandbybondcovenants.AlloftheDistrict’s

fundsaregovernmentalfundͲtypes.

x Governmentalfunds–AlloftheDistrict’sbasicservicesarereportedingovernmentalfunds,

whichfocusonhowmoneyflowsintoandoutofthosefundsandthebalancesleftatyearͲend

thatareavailableforspending.ThegovernmentalfundstatementsprovideadetailedshortͲ

termviewoftheDistrict’sgeneralgovernmentoperationsandthebasicservicesitprovides.

Governmentalfundinformationhelpsyoudeterminewhethertherearemoreorfewerfinancial

resourcesthatcanbespentinthenearfuturetofinancetheDistrict’sprograms.

THEDISTRICTASAWHOLE

ThefollowingtablereflectsthecondensedStatementofNetPositionandiscomparedtotheprioryear.

September30, 2014 2013 Change

Assets

Currentandotherassets $1,322,192 $1,241,450 $80,742

Capitalassets,net 16,879,281 17,610,738 (731,457)

Totalassets 18,201,473 18,852,188 (650,715)

Deferredoutflowsofresources

Deferredchargeonrefunding 320,728 339,687 (18,959)

Totalassetsanddeferred

outflowsofresources $18,522,201 $19,191,875 $(669,674)

Liabilities

Currentliabilities $335,014 $321,290 $13,724

Otherliabilities 5,265,899 5,447,430 (181,531)

Totalliabilities 5,600,913 5,768,720 (167,807)

Netposition

Netinvestmentincapitalassets 13,532,836 14,111,721 (578,885)

Restrictedfor:

Debtservice 142,061 150,554 (8,493)

Unrestricted (753,609) (839,120) 85,511

Totalnetposition 12,921,288 13,423,155 (501,867)

Totalliabilitiesandnetposition $18,522,201 $19,191,875 $(669,674)

(8)

Management’sDiscussionandAnalysis

DuringthefiscalyearendedSeptember30,2014,totalassetsandliabilitiesdecreasedbyapproximately

$651,000and$168,000,respectively,whiledeferredoutflowsofresourcesdidnotsignificantlychange

fromtheprioryear.Thedecreaseinassetsisprimarilyaresultofdepreciationoncapitalassets.The

decreaseinliabilitiesisprimarilyduetotherepaymentofoutstandinglongͲtermbondprincipal.

ThefollowingschedulecomparestheStatementofActivitiesforthecurrentandpreviousfiscalyear.

YearendedSeptember30, 2014 2013 Change

Revenues:

Programrevenues:

Chargesforservices $1,271,107 $1,228,765 $42,342

Grantsandcontributions 291 12,320 (12,029)

Generalrevenues:

Interestandotherrevenues 4,806 10,260 (5,454)

Totalrevenues 1,276,204 1,251,345 24,859

Expenses:

Generalgovernment 141,797 125,305 16,492

Maintenanceandoperations 1,104,017 1,102,344 1,673

Gatehouse 104,889 105,480 (591)

CommunityCenter 86,409 83,215 3,194

Interest 340,959 350,126 (9,167)

Totalexpenses 1,778,071 1,766,470 11,601

Changeinnetassets (501,867) (515,125) 13,258

Netposition,beginning 13,423,155 13,938,280 (515,125)

Netposition,ending $12,921,288 $13,423,155 $(501,867)

Formoredetailedinformation,seetheaccompanyingStatementofActivities.

Revenuesandexpensesdidnotchangesignificantlyfromtheprioryear.Theoverallresultwasa

$501,867decreaseinnetpositionforfiscalyear2014.

THEDISTRICT’SFUNDS

AstheDistrictcompletedtheyear,itsgovernmentalfunds(aspresentedinthebalancesheetonpage

10)reportedacombinedfundbalanceofapproximately$1.28million,whichisaslightincreasefrom

lastyear’sbalancethattotaled$1.21million.Significanttransactionsarediscussedbelow.

x DuringthefiscalyearendedSeptember30,2014,theDistrictincurredapproximately$328,000

ofinterestexpendituresandrepaidprincipalof$170,000.

(9)

BrightonLakesCommunityDevelopmentDistrict

Management’sDiscussionandAnalysis

Ͳ6Ͳ

TheoverallincreaseinfundbalancefortheyearendedSeptember30,2014totaledapproximately

$73,000.

CAPITALASSETANDDEBTADMINISTRATION

CapitalAssets

AtSeptember30,2014,theDistricthadapproximately$16.9millioninvestedincapitalassets(netof

accumulateddepreciation).Thisamountrepresentsanetdecreaseofapproximately$731,000fromthe

fiscalyear2013total.

Alistingofcapitalassetsbymajorcategoryforthecurrentandprioryearfollows:

Capitalassetsnotbeingdepreciated $710,027 $690,000 $20,027

Capitalassetsbeingdepreciated 21,504,035 21,492,785 11,250

Total,priortodepreciation 22,214,062 22,182,785 31,277

Accumulateddepreciation (5,334,781) (4,572,047) (762,734)

Netcapitalassets $16,879,281 $17,610,738 $(731,457)

MoreinformationabouttheDistrict’scapitalassetsispresentedinNote4tothefinancialstatements.

Debt

AtSeptember30,2014,theDistricthadapproximately$5.4millionofbondsoutstanding.Thisamount

representsadecreaseof$170,000fromthefiscalyear2013total.

Alistingofdebtamountsoutstandingforthecurrentandprioryearisasfollows:

CapitalImprovementRevenueBonds:

Series2004A $2,835,000 $2,900,000 $(65,000)

Series2007 2,570,000 2,675,000 (105,000)

5,405,000

$ $5,575,000 $(170,000)

MoreinformationabouttheDistrict’slongͲtermdebtispresentedinNote5tothefinancialstatements.

(10)

Management’sDiscussionandAnalysis

GOVERNMENTALFUNDSBUDGETARYHIGHLIGHTS

AnOperatingbudgetwasestablishedbythegoverningboardfortheDistrictpursuanttothe

requirementsofFloridaStatutes.Thebudgettoactualcomparisonforthegeneralfund,includingthe

originalbudgetandfinaladoptedbudget,isshownatpage23.

TheDistrictexperiencedfavorablevariancesinrevenuesandexpendituresascomparedtothebudgetin

theamountof$11,819and$73,692,respectively.Thevarianceinexpendituresoccurredprimarilydue

toanticipatedbudgetedoperatingexpendituresthatwerenotincurredduringtheyear.

FUTUREFINANCIALFACTORS

BrightonLakesCommunityDevelopmentDistrictisanindependentspecialdistrictthatoperatesunder

theprovisionsofChapter190,FloridaStatutes. TheDistrictoperatesunderanelectedBoardof

Supervisors,whichestablishespolicyandsetsassessmentrates.Assessmentratesforfiscalyear2015

wereestablishedtoprovidefortheoperationsoftheDistrictaswellasthenecessarydebtservice

requirements.

CONTACTINGTHEDISTRICT’SFINANCIALMANAGEMENT

ThisfinancialreportisdesignedtoprovideageneraloverviewoftheDistrict’sfinances.Ifyouhave

questionsaboutthisreportorneedadditionalfinancialinformation,contacttheBrightonLakes

CommunityDevelopmentDistrict’smanagementcompanyat210NorthUniversityDrive,Suite702,

CoralSprings,Florida,33071.

(11)

(12)

StatementofNetPosition

Theaccompanyingfootnotesareanintegralpartofthesefinancialstatements.

September30, 2014

Governmental Activities Assets

Cashandcashequivalents $398,294

Investments 905,723

Otherreceivables 8,929

Prepaidexpenses 9,246

Capitalassets:

Notbeingdepreciated 710,027

Depreciable,net 16,169,254

Totalassets 18,201,473

Deferredoutflowsofresources

Deferredchargeonrefunding 320,728

Totaldeferredoutflowsofresources 320,728

Liabilities

Accountspayable 37,355

Accruedinterestpayable 132,659

NonͲcurrentliabilities:

Duewithinoneyear 165,000

Dueinmorethanoneyear 5,265,899

Totalliabilities 5,600,913

Netposition

Netinvestmentincapitalassets 13,532,836

Restrictedfor:

Debtservice 142,061

Unrestricted (753,609)

(13)

BrightonLakesCommunityDevelopmentDistrict

StatementofActivities

Theaccompanyingfootnotesareanintegralpartofthesefinancialstatements. Ͳ9Ͳ

YearendedSeptember30,

Net(Expense) Revenueand

Changesin NetPosition Operating

Chargesfor Grantsand Governmental

Functions/Programs Expenses Services Contributions Activities

Primarygovernment: Governmentalactivities:

Generalgovernment $(141,797) $154,205 $Ͳ $12,408

Maintenanceand

operations (1,104,017) 398,792 Ͳ (705,225)

Gatehouse (104,889) 122,563 17,674

Communitycenter (86,409) 100,970 Ͳ 14,561

Interest (340,959) 494,577 291 153,909

Totalgovernmental

activities $(1,778,071) $1,271,107 $291 (506,673)

Generalrevenues

Interestandotherrevenues 4,806

Totalgeneralrevenues 4,806

Changeinnetposition (501,867)

NetpositionͲbeginningofyear 13,423,155

NetpositionͲendofyear $12,921,288

ProgramRevenues 2014

(14)

BalanceSheet–GovernmentalFunds

September30,

General

DebtService Series2004

Total Governmental

Funds Assets

Cashandcashequivalents $398,294 $Ͳ $Ͳ $398,294

Investments 390,365 392,066 123,292 905,723

Otherreceivables 5,864 1,527 1,538 8,929

Prepaidexpenditures 9,246 Ͳ Ͳ 9,246

Totalassets $803,769 $393,593 $124,830 $1,322,192

LiabilitiesandFundBalances Liabilities

Accountspayable $37,355 $Ͳ $Ͳ $37,355

Totalliabilities 37,355 Ͳ Ͳ 37,355

Fundbalances

Nonspendable 9,246 Ͳ Ͳ 9,246

Restrictedfordebtservice Ͳ 393,593 124,830 518,423

Assignedforcapitalreserves 411,000 Ͳ Ͳ 411,000

Assignedforoperatingreserves 170,629 Ͳ Ͳ 170,629

Unassigned 175,539 Ͳ Ͳ 175,539

Totalfundbalances 766,414 393,593 124,830 1,284,837

Totalliabilitiesandfundbalances $803,769 $393,593 $124,830 $1,322,192

(15)

BrightonLakesCommunityDevelopmentDistrict

ReconciliationoftheBalanceSheetofGovernmentalFundstotheStatementof

NetPosition

September30, 2014

Totalfundbalances,governmentalfunds $1,284,837

Capital assets used in governmental activities are not financial resources and

thereforearenotreportedinthefundfinancialstatements. 16,879,281

Deferred charges on refunding are not financial resources and, therefore are not reported as assets in governmental funds. The Statement of Net Position

includesthesecharges,netofamortization. 320,728

Liabilities not due and payable from current resources, including accrued

interest,arenotreportedinthefundfinancialstatements. (5,563,558)

TotalnetpositionͲgovernmentalactivities $12,921,288

(16)

StatementofRevenues,ExpendituresandChangesinFundBalances–

GovernmentalFunds

General

Total Governmental

Funds Revenues

Assessments $776,530 $246,425 $248,152 $1,271,107

Interestandotherrevenues 4,806 212 79 5,097

Totalrevenues 781,336 246,637 248,231 1,276,204

Expenditures Current:

Generalgovernment 131,967 4,898 4,932 141,797

Maintenanceandoperations 341,283 Ͳ Ͳ 341,283

Gatehouse 104,889 Ͳ Ͳ 104,889

Communitycenter 86,409 Ͳ Ͳ 86,409

Debtservice:

Principal Ͳ 65,000 105,000 170,000

Interest Ͳ 177,625 149,894 327,519

Capitaloutlay 31,277 Ͳ Ͳ 31,277

Totalexpenditures 695,825 247,523 259,826 1,203,174

Netchangeinfundbalances 85,511 (886) (11,595) 73,030

Fundbalances,beginningofyear 680,903 394,479 136,425 1,211,807

Fundbalances,endofyear $766,414 $393,593 $124,830 $1,284,837

(17)

BrightonLakesCommunityDevelopmentDistrict

ReconciliationoftheStatementofRevenues,ExpendituresandChangesinFund

BalancesofGovernmentalFundstotheStatementofActivities

YearendedSeptember30, 2014

NetchangeinfundbalancesͲgovernmentalfunds $73,030

Capital outlay, reported as expenditures in the governmental funds, is shown as

capitalassetsontheStatementofNetPosition. 31,277

Governmental funds report principal payments on bonds when debt is paid, whereas these payments are eliminated in the Statement of Activities and

recognizedasadecreaseinbondspayableintheStatementofNetPosition. 170,000 Depreciation on capital assets is not recognized in the fund financial statements

butisreportedasanexpenseintheStatementofActivities. (762,734)

Amortization of deferred refunding amounts and original issue discount is not recognized in the governmental fund statements but is reported as an expense

intheStatementofActivities. (17,428)

The change in accrued interest between the current and prior year is recorded

ontheStatementofActivitiesbutnotonthefundfinancialstatements. 3,988

(18)

NotestoFinancialStatements

NOTE1–NATUREOFORGANIZATION

TheBrightonLakesCommunityDevelopmentDistrict(the“District”)wasestablishedonApril12,2000

pursuanttotheUniformCommunityDevelopmentDistrictActof1980,otherwiseknownasChapter

190,FloridaStatutes,byOsceolaCountyOrdinanceNo.00Ͳ09.TheActprovides,amongotherthings,

thepowertomanagebasicservicesforcommunitydevelopment,powertoborrowmoneyandissue

bonds,andtolevyandassessnonͲadvaloremassessmentsforthefinancinganddeliveryofcapital

infrastructure.

TheDistrictwasestablishedforthepurposesoffinancingandmanagingtheacquisition,construction,

maintenanceandoperationofaportionoftheinfrastructurenecessaryforcommunitydevelopment

withintheDistrict.

TheDistrictisgovernedbyaBoardofSupervisors(“Board”),whichiscomprisedoffivemembers.The

SupervisorsareelectedbyqualifiedelectorsofOsceolaCountywhoseprimaryresidenceiswithinthe

District.TheBoardofSupervisorsoftheDistrictexercisesallpowersgrantedtotheDistrictpursuantto

Chapter190,FloridaStatutes.

TheBoardhasthefinalresponsibilityfor:

1. Allocatingandlevyingspecialassessments.

2. Approvingbudgets.

3. Exercisingcontroloverfacilitiesandproperties.

4. ControllingtheuseoffundsgeneratedbytheDistrict.

5. Approvingthehiringandfiringofkeypersonnel.

6. Financingimprovements.

Inevaluatinghowtodefinethegovernment,forfinancialreportingpurposes,managementhas

consideredallpotentialcomponentunits.Thedecisiontoincludeorexcludeapotentialcomponent

unitinthereportingentitywasmadebyapplyingthecriteriasetforthbyGenerallyAccepted

AccountingPrinciples(GAAP)asdefinedbytheGovernmentalAccountingStandardsBoard(GASB)in

statementsNo.14andNo.61.Basedontheforegoingcriteria,nopotentialcomponentunitswere

found.

NOTE2–SUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES

TheaccountingpoliciesoftheDistrictconformtoGAAPasapplicabletogovernmentsinaccordance

withthosepromulgatedbyGASB.Thefollowingisasummaryofthemoresignificantpolicies:

GovernmentͲwideandFundFinancialStatements

ThebasicfinancialstatementsincludebothgovernmentͲwideandfundfinancialstatements.

ThegovernmentͲwidefinancialstatements(i.e.,theStatementofNetPositionandtheStatementof

Activities) report information on all the nonͲfiduciary activities of the primary government.

(19)

BrightonLakesCommunityDevelopmentDistrict

NotestoFinancialStatements

Ͳ15Ͳ

NOTE2–SUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES(Continued)

businessͲtypeactivities,whichrelytoasignificantextentonfeesandchargesforsupport.ThebusinessͲ

typeactivities are reportedseparatelyingovernmentͲwidefinancial statements;however,at

September30,2014,theDistrictdidnothaveanysignificantbusinessͲtypeactivities.Therefore,no

businessͲtypeactivitiesarereported.Assessmentsandotheritemsnotproperlyincludedasprogram

revenues(i.e.,chargestocustomersorapplicantswhopurchase,use,ordirectlybenefitfromgoodsor

services)arereportedasgeneralrevenues.

Separatefinancialstatementsareprovidedforgovernmentalfunds.Majorindividualgovernmental

fundsarereportedasseparatecolumnsinthefundfinancialstatements.

MeasurementFocus,BasisofAccountingandBasisofPresentation

ThegovernmentͲwidefinancialstatementsarereportedusingtheeconomicresourcesmeasurement

focusandtheaccrualbasisofaccounting.Revenuesarerecordedwhenearnedandexpensesare

recordedwhenaliabilityisincurred,regardlessofthetimingoftherelatedcashflows.Assessmentsare

recognizedasrevenuesintheyearforwhichtheyarelevied.Grantsandothersimilaritemsaretobe

recognizedasrevenueassoonasalleligibilityrequirementsimposedbytheproviderhavebeenmet.

Governmental fund financial statements are reported using the current financial resources

measurementfocusandthemodifiedaccrualbasisofaccounting.Revenuesarerecognizedassoonas

theyarebothmeasurableandavailable. Revenuesareconsideredtobeavailablewhentheyare

collectiblewithinthecurrentperiodorsoonenoughthereaftertopayliabilitiesofthecurrentperiod.

Forthispurpose,theDistrictconsidersrevenuestobeavailableiftheyarecollectedwithin

60daysoftheendofthecurrentfiscalperiod.Expendituresgenerallyarerecordedwhenaliabilityis

incurred,asunderaccrualaccounting.However,debtserviceexpendituresarerecordedonlywhen

paymentisdue.

Assessments,includingdebtserviceassessmentsalongwithoperationandmaintenanceassessments,

arenonͲadvaloremspecialassessmentsimposedonalllandslocatedwithintheDistrictandbenefited

bytheDistrict’sactivities,operationandmaintenance. Assessmentsareleviedandcertifiedfor

collectionbytheDistrictpriortothestartofthefiscalyearwhichbeginsOctober1standendson

September30th.Operationandmaintenancespecialassessmentsareimposeduponallbenefitedlands

locatedintheDistrict.Debtservicespecialassessmentsareimposeduponcertainlotsandlandsas

describedineachresolutionimposingthespecialassessmentforeachseriesofbondsissuedbythe

District.

Assessmentsandinterestassociatedwiththecurrentfiscalperiodareallconsideredtobesusceptible

toaccrualandhavebeenrecognizedasrevenuesofthecurrentfiscalperiod.Allotherrevenueitems

areconsideredtobemeasurableandavailableonlywhencashisreceivedbytheDistrict.

(20)

NotestoFinancialStatements

TheDistrictreportsthefollowingmajorgovernmentalfunds:

GeneralFund–TheGeneralFundistheprimaryoperatingfundoftheDistrict.Itisusedtoaccount

forallfinancialresourcesexceptthoserequiredtobeaccountedforinotherfunds.

DebtServiceFundSeries2004–TheDebtServiceFundSeries2004isusedtoaccountforthe

accumulationofresourcesfortheannualpaymentofprincipalandinterestonlongͲtermdebt.

DebtServiceFundSeries2007–TheDebtServiceFundSeries2007isusedtoaccountforthe

accumulationofresourcesfortheannualpaymentofprincipalandinterestonlongͲtermdebt.

FortheyearendedSeptember30,2014,theDistrictdoesnotreportanyproprietaryfunds.

Asageneralrule,theeffectofinterfundactivityhasbeeneliminatedfromthegovernmentͲwide

financialstatements.

Whenbothrestrictedandunrestrictedresourcesareavailableforuse,itistheDistrict’spolicytouse

restrictedresourcesfirst,thenunrestrictedresourcesastheyareneeded.Whencommitted,assigned,

orunassignedresourcesareavailableforuseinthegovernmentalfundfinancialstatements,itisthe

government’spolicytousecommittedresourcesfirst,followedbyassignedresources,thenunassigned

resourcesasneeded.

Cash,DepositsandInvestments

TheDistrictmaintainsdepositswith"QualifiedPublicDepositories"asdefinedinChapter280,Florida

Statutes.AllQualifiedPublicDepositoriesmustplacewiththeTreasureroftheStateofFloridasecurities

inaccordancewithcollateralrequirementsdeterminedbytheState’sChiefFinancialOfficer.Inthe

eventofdefaultbyaQualifiedPublicDepository,theStateTreasurerwillpaypublicdepositorsall

losses. Lossesinexcessofinsuranceandcollateralwillbepaidthroughassessmentsbetweenall

QualifiedPublicDepositories.

Underthismethod,alltheDistrict'sdepositsarefullyinsuredorcollateralizedatthehighestlevelof

securityasdefinedbyGASB,StatementNumber40,DepositsandInvestmentDisclosures(An

AmendmentofGASB,StatementNumber3).

TheDistrictisauthorizedtoinvestinfinancialinstrumentsasestablishedbySection218.415,Florida

Statutes.Theauthorizedinvestmentsincludeamongothersnegotiabledirectorindirectobligations

whicharesecuredbytheUnitedStatesGovernment;theLocalGovernmentSurplusTrustFundsas

createdbySection218.415,FloridaStatutes;SECregisteredmoneymarketfundswiththehighestcredit

qualityratingfromanationallyrecognizedratingagency;andinterestͲbearingtimedepositsorsavings

(21)

BrightonLakesCommunityDevelopmentDistrict

NotestoFinancialStatements

Ͳ17Ͳ

CapitalAssets

Capitalassets,whichincludeprimarilyinfrastructureassets(e.g.,roads,sidewalks,watermanagement

systemsandsimilaritems),arereportedinthegovernmentalactivitiescolumninthegovernmentͲwide

financialstatements.CapitalassetsaredefinedbytheDistrictasassetswithaninitial/individualcostof

morethan$5,000andanestimatedusefullifeinexcessoftwoyears.Suchassetsarerecordedat

historicalcostandestimatedhistoricalcostifpurchasedorconstructed.Donatedassetsarerecordedat

estimatedfairmarketvalueatthedateofdonation.

Thecostsofnormalmaintenanceandrepairsthatdonotaddtothevalueoftheassetormaterially

extendassetlivesarenotcapitalized.Majoroutlaysforcapitalassetsandimprovementsarecapitalized

asprojectsareconstructed.

Property,plantandequipmentoftheprimarygovernmentaredepreciatedusingthestraightͲline

methodovertheestimatedusefullives.Estimatedusefullivesforfinancialreportingpurposesareas

follows:

Asset 2014

Infrastructure 20Ͳ30

Improvementsotherthanbuildings 20Ͳ30

Furniture,fixturesandequipment 5Ͳ10

Inthegovernmentalfundfinancialstatements,amountsincurredfortheacquisitionofcapitalassetsare

reportedasfundexpenditures.Depreciationexpenseisnotreportedinthegovernmentalfundfinancial

statements.

Estimates

Thepreparationoffinancialstatementsinconformitywithaccountingprinciplesgenerallyacceptedin

theU.S.requiresmanagementtomakeestimatesandassumptionsthataffectcertainreportedamounts

anddisclosures.Accordingly,actualresultscoulddifferfromthoseestimates.

LongͲTermObligations

InthegovernmentͲwidefinancialstatements,longͲtermdebtandotherlongͲtermobligationsare

reportedasliabilitiesintheStatementofNetPosition.Bondpremiumsanddiscountsaredeferredand

amortizedoverthelifeofthebondsusingthestraightͲlineoreffectiveinterestmethod.Bondspayable

arereportednetofthesepremiumsordiscounts.Issuancecosts,whetherornotwithheldfromthe

(22)

NotestoFinancialStatements

Inthefundfinancialstatements,governmentalfundtypesrecognizebondpremiumsanddiscounts

duringthecurrentperiod.Thefaceamountofthedebtissuedisreportedasotherfinancingsources.

Premiumsreceivedondebtissuancesarereportedasotherfinancingsourceswhilediscountsondebt

issuancesarereportedasotherfinancinguses.Issuancecosts,whetherornotwithheldfromtheactual

debtproceedsreceived,arereportedasdebtserviceexpenditures.

DeferredOutflows/InflowsofResources

Inadditiontoassets,thestatementoffinancialpositionincludesaseparatesectionfordeferred

outflowsofresources. Thisseparatefinancialstatementelement,deferredoutflowsofresources,

representsaconsumptionofnetpositionthatappliestoafutureperiod(s)andsowillnotberecognized

asanoutflowofresources(expense/expenditure)untilthen.TheDistrictonlyhasoneitem,adeferred

chargeonrefunding,thatqualifiesforreportinginthiscategory.Adeferredchargeonrefundingresults

fromthedifferenceinthecarryingvalueofrefundeddebtanditsreacquisitionprice.Thisamountis

deferredandamortizedovertheshorterofthelifeoftherefundedorrefundingdebt.

Inadditiontoliabilities,thestatementoffinancialpositionwillsometimesreportaseparatesectionfor

deferredinflowsofresources.Thisseparatefinancialstatementelement,deferredinflowsofresources, representsanacquisitionofnetpositionthatappliestoafutureperiod(s)andsowillnotberecognized

asaninflowofresources(revenue)untilthattime.TheDistrictdoesnothaveanyofthistypeofitemat

September30,2014.

FundEquity

NetpositioninthegovernmentͲwidefinancialstatementsrepresentsthedifferencebetweenassetsand

deferredoutflowsofresourcesandliabilitiesanddeferredinflowsofresourcesandiscategorizedasnet

investmentincapitalassets,restrictedorunrestricted.Netinvestmentincapitalassetsrepresents

assetsrelatedtoinfrastructureandproperty,plantandequipment,netofanyrelateddebt.Restricted

netpositionrepresentstheassetsrestrictedbytheDistrict’sbondcovenants.

Governmentalfundequityisclassifiedasfundbalance.Fundbalanceisfurtherclassifiedas

nonspendable,restricted,committed,assigned,orunassigned.Nonspendablefundbalancecannotbe

spentbecauseofitsform.Restrictedfundbalancehaslimitationsimposedbycreditors,grantors,or

contributorsorbyenablinglegislationorconstitutionalprovisions.Committedfundbalanceisa

limitationimposedbytheDistrictboardthroughapprovalofresolutions.Assignedfundbalanceisa

limitationimposedbyadesigneeoftheDistrictboard.UnassignedfundbalanceintheGeneralFundis

thenetresourcesinexcessofwhatcanbeproperlyclassifiedinoneoftheabovefourcategories.

Negativeunassignedfundbalanceinothergovernmentalfundsrepresentsexcessexpendituresincurred

(23)

BrightonLakesCommunityDevelopmentDistrict

NotestoFinancialStatements

Ͳ19Ͳ

Budgets

TheDistrictisrequiredtoestablishabudgetarysystemandanapprovedannualbudget. Annual

budgetsarelegallyadoptedonabasisconsistentwithGAAPfortheGeneralFund.Anyrevisiontothe

budgetmustbeapprovedbytheDistrictBoard.Thebudgetsarecomparedtoactualexpenditures.In

instanceswherebudgetappropriationsandestimatedrevenueshavebeenrevisedduringtheyear,

budgetdatapresentedinthefinancialstatementsrepresentfinalauthorizationamounts.

TheDistrictfollowstheseproceduresinestablishingthebudgetarydatareflectedinthefinancial

statements:

A. EachyeartheDistrictManagersubmitstotheDistrictBoardaproposedoperatingbudgetfor

thefiscalyearcommencingthefollowingOctober1. B. Apublichearingisconductedtoobtaincomments.

C. PriortoOctober1,thebudgetislegallyadoptedbytheDistrictBoard. D. AllbudgetchangesmustbeapprovedbytheDistrictBoard.

E. Budgetsareadoptedonabasisconsistentwithaccountingprinciplesgenerallyacceptedinthe

UnitedStatesofAmerica.

NOTE3–INVESTMENTS

AllinvestmentsheldatSeptember30,2014arereportedatfairvaluebasedonquotedmarketprices,

whichapproximatesamortizedcost.ThefollowingisasummaryoftheDistrict’sinvestments:

September30, 2014 CreditRisk Maturities

StateBoardofAdministrationFloridaPRIME $11,875 S&PAAAm 39days

CommericalPaper 515,358 AͲ1+ n/a

Certificatesofdeposit 378,490 n/a various

905,723

$

Custodialcreditrisk–Foraninvestment,custodialcreditriskistheriskthattheDistrictwillnotbeable

torecoverthevalueoftheinvestmentsorcollateralsecuritiesthatareinthepossessionofanoutside

party.TheDistricthasnoformalpolicyforcustodialrisk.AtSeptember30,2014,theCommercial

PaperisheldbyacounterpartyintheDistrict’sname.Noneoftheotherinvestmentslistedaboveare

exposedtocustodialcreditriskbecausetheirexistenceisnotevidencedbysecuritiesthatexistin

physicalorbookentryform.

Concentrationrisk–TheDistrict’sinvestmentpolicyrequiresdiversification,butdoesnotspecifylimits

(24)

NotestoFinancialStatements

NOTE3–INVESTMENTS(Continued)

Interestraterisk–TheDistrictdoesnothaveaformalpolicyforaddressinginterestraterisk;however,

investmentsaremadewithdiscretion,toseekreasonablereturns,preservecapital,andingeneral,

avoidspeculativeinvestments.TheDistrictmanagesitsexposuretodeclinesinfairvaluesfrominterest

ratechangesbyreviewingtheportfolioonanongoingbasisforchangesineffectiveyieldamounts.

NOTE4–CAPITALASSETS

ThefollowingisasummaryofchangesinthecapitalassetsfortheyearendedSeptember30,2014:

Beginning

Balance Additions

Transfersand

Conveyances EndingBalance GovernmentalActivities:

Capitalassetsnotbeingdepreciated

Land $690,000 $Ͳ $Ͳ $690,000

Constructioninprogress Ͳ 20,027 Ͳ 20,027

Totalcapitalassets,notbeingdepreciated 690,000 20,027 Ͳ 710,027

Capitalassetsbeingdepreciated

Furniture,fixturesandequipment 63,946 Ͳ Ͳ 63,946

Infrastructure 19,005,984 Ͳ Ͳ 19,005,984

Improvementsotherthanbuildings 2,422,855 11,250 Ͳ 2,434,105

Totalcapitalassets,beingdepreciated 21,492,785 11,250 Ͳ 21,504,035

Lessaccumulateddepreciation

Furniture,fixturesandequipment (51,597) (1,084) Ͳ (52,681)

Infrastructure (3,672,450) (640,507) Ͳ (4,312,957)

Improvementsotherthanbuildings (848,000) (121,143) Ͳ (969,143)

Totalaccumulateddepreciation (4,572,047) (762,734) Ͳ (5,334,781)

Totalcapitalassets,beingdepreciated,net 16,920,738 (751,484) Ͳ 16,169,254

Governmentalactivitiescapitalassets,net $17,610,738 $(731,457) $Ͳ $16,879,281

Depreciationexpenseof$762,734wasallocatedtomaintenanceandoperationsontheaccompanying

StatementofActivities.

NOTE5–BONDSPAYABLE

OnAugust20,2004,theDistrictissued$3,325,000ofSpecialAssessmentBonds,Series2004Awitha

fixedinterestrateof6.125%.TheBondswereissuedtofinancetheacquisitionandconstructionof

certainimprovementsforthebenefitoftheDistrict.InterestispaidsemiannuallyoneachMay1and

November1.PrincipalontheSeries2004ABondsispaidseriallycommencingonMay1,2006through

(25)

BrightonLakesCommunityDevelopmentDistrict

NotestoFinancialStatements

Ͳ21Ͳ NOTE5–BONDSPAYABLE(Continued)

OnAugust29,2007,theDistrictissued$3,165,000ofSpecialAssessmentRefundingBonds,Series2007

withaninterestrateof5.00%to5.75%.TheBondswereissuedtorefinanceanddefeasetheSeries

2000Bonds.InterestispaidsemiannuallyoneachMay1andNovember1.PrincipalontheSeries2007

BondsispaidseriallycommencingonMay1,2008throughMay1,2031.

LongͲtermliabilityactivityfortheyearendedSeptember30,2014,wasasfollows:

Beginning

Balance Additions Reductions

Ending

Balance

DueWithin

OneYear

GovernmentalActivities

BondsPayable:

Series2004A $2,900,000 $Ͳ $(65,000) $2,835,000 $70,000

Series2007 2,675,000 Ͳ (105,000) 2,570,000 95,000

5,575,000

$ $Ͳ $(170,000) $5,405,000 $165,000

ThebalanceofthelongͲtermbondsatSeptember30,2014issummarizedasfollows:

September30, 2014

Bondprincipalbalance $5,405,000

Plusunamortizedbondpremium 25,899

5,430,899

$

AtSeptember30,2014,thescheduleddebtservicerequirementsonlongͲtermdebtwereasfollows:

TotalDebt

YearEndingSeptember30, Principal Interest Service

2015 $165,000 $318,382 $483,382

2016 175,000 309,106 484,106

2017 180,000 299,263 479,263

2018 190,000 289,157 479,157

2019 205,000 278,207 483,207

2020Ͳ2024 1,220,000 1,198,457 2,418,457

2025Ͳ2029 1,635,000 793,581 2,428,581

2030Ͳ2034 1,415,000 290,894 1,705,894

2035Ͳ2039 220,000 13,475 233,475

5,405,000

$ $3,790,522 $9,195,522

(26)

NotestoFinancialStatements

NOTE5–BONDSPAYABLE(Continued)

TheBondIndenturesrequirethattheDistrictmaintainadequatefundsinreserveaccountstomeetthe

debtservicereserverequirementsasdefinedintheIndentures.Therequirementshavebeenmetfor

thefiscalyearendedSeptember30,2014.

TheBondIndentureshavecertainrestrictionsandrequirementsrelatingprincipallytotheuseof

proceedstopayfortheinfrastructureimprovementsandtheprocedurestobefollowedbytheDistrict

onassessmentstopropertyowners.TheDistrictagreedtolevyspecialassessmentsinannualamounts

adequatetoprovidepaymentofdebtservice.TheDistrictisincompliancewiththerequirementsofthe

BondIndentures.

NOTE6–RISKMANAGEMENT

TheDistrictisexposedtovariousrisksoflossrelatedtotorts;theftof,damageto,anddestructionof

assets;errorsandomissions;andnaturaldisasters. TheDistrictmaintainscommercialinsurance

coveragetomitigatetheriskofloss.Coveragemaynotextendtoallsituations.Managementbelieves

suchcoverageissufficienttoprecludeanysignificantuninsuredlossestotheDistrict.Settledclaims

havenotexceededthiscommercialcoverageinthepreviousthreeyears,astherehavebeennoclaims.

NOTE7–MANAGEMENTCOMPANY

TheDistricthascontractedwithamanagementcompanytoperformmanagementadvisoryservices,

whichincludefinancialandaccountingadvisoryservices. Certainemployeesofthemanagement

companyalsoserveasofficers(BoardappointednonͲvotingpositions)oftheDistrict. Underthe

agreement,theDistrictcompensatesthemanagementcompanyformanagement,accounting,financial

reporting,andotheradministrativecosts.

(27)

Required

Supplemental

Information

(Other

Than

MD&A)

(28)

BudgettoActualComparisonSchedule–GeneralFund

Originaland FinalBudget

Actual Amounts

Variancewith FinalBudget Revenues

Assessments $767,617 $776,530 $8,913

Interestandotherrevenues 1,900 4,806 2,906

Totalrevenues 769,517 781,336 11,819

Expenditures

Generalgovernment 125,237 131,967 (6,730)

Maintenanceandoperations 422,500 341,283 81,217

Gatehouse 108,800 104,889 3,911

CommunityCenter 112,980 86,409 26,571

Capitaloutlay Ͳ 31,277 (31,277)

Totalexpenditures 769,517 695,825 73,692

Excessofrevenuesoverexpenditures $Ͳ $85,511 $85,511

2014

(29)

Ͳ24Ͳ

INDEPENDENTAUDITOR’SREPORTONINTERNALCONTROLOVERFINANCIALREPORTINGANDON COMPLIANCEANDOTHERMATTERSBASEDONANAUDITOFFINANCIALSTATEMENTS

PERFORMEDINACCORDANCEWITHGOVERNMENTAUDITINGSTANDARDS

Wehaveaudited,inaccordancewiththeauditingstandardsgenerallyacceptedintheUnitedStatesof

AmericaandthestandardsapplicabletofinancialauditscontainedinGovernmentAuditingStandards

issuedbytheComptrollerGeneraloftheUnitedStates,thefinancialstatementsofthegovernmental

activitiesandeachmajorfundofBrightonLakesCommunityDevelopmentDistrict(hereinafterreferred

toasthe“District”),asofandfortheyearendedSeptember30,2014,andtherelatednotestothe

financialstatements,whichcollectivelycomprisetheDistrict’sbasicfinancialstatements,andhave

issuedourreportthereondatedFebruary27,2015.

InternalControlOverFinancialReporting

Inplanningandperformingourauditofthefinancialstatements,weconsideredtheDistrict’sinternal

controloverfinancialreporting(internalcontrol)todeterminetheauditproceduresthatare

appropriateinthecircumstancesforthepurposeofexpressingouropinionsonthefinancial

statements,butnotforthepurposeofexpressinganopinionontheeffectivenesstheDistrict’sinternal

control.Accordingly,wedonotexpressanopinionontheeffectivenessoftheDistrict’sinternalcontrol.

Adeficiencyininternalcontrolexistswhenthedesignoroperationofacontroldoesnotallow

managementoremployees,inthenormalcourseofperformingtheirassignedfunctions,toprevent,or

detectandcorrect,misstatementsonatimelybasis.Amaterialweaknessisadeficiency,ora

combinationofdeficiencies,ininternalcontrol,suchthatthereisareasonablepossibilitythatamaterial

misstatementoftheentity’sfinancialstatementswillnotbeprevented,ordetectedandcorrectedona

timelybasis.Asignificantdeficiencyisadeficiency,oracombinationofdeficiencies,ininternalcontrol

thatislessseverethanamaterialweakness,yetimportantenoughtomeritattentionbythosecharged

withgovernance.

Ourconsiderationofinternalcontrolwasforthelimitedpurposedescribedinthefirstparagraphofthis

sectionandwasnotdesignedtoidentifyalldeficienciesininternalcontrolthatmightbematerial

weaknessesorsignificantdeficiencies.Giventheselimitations,duringourauditwedidnotidentifyany

deficienciesininternalcontrolthatweconsidertobematerialweaknesses.However,material

weaknessesmayexistthathavenotbeenidentified.

(30)

ComplianceandOtherMatters

AspartofobtainingreasonableassuranceaboutwhethertheDistrict’sfinancialstatementsarefree

frommaterialmisstatement,weperformedtestsofitscompliancewithcertainprovisionsoflaws

regulations,contracts,andgrantagreements,noncompliancewithwhichcouldhaveadirectand

materialeffectonthedeterminationoffinancialstatementamounts.However,providinganopinionon

compliancewiththoseprovisionswasnotanobjectiveofouraudit,andaccordingly,wedonotexpress

suchanopinion.Theresultsofourtestsdisclosednoinstancesofnoncomplianceorothermattersthat

arerequiredtobereportedunderGovernmentAuditingStandards.

PurposeofthisReport

Thepurposeofthisreportissolelytodescribethescopeofourtestingofinternalcontroland

complianceandtheresultsofthattesting,andnottoprovideanopinionontheeffectivenessofthe

District’sinternalcontroloroncompliance.Thisreportisanintegralpartofanauditperformedin

accordancewithGovernmentAuditingStandardsinconsideringtheDistrict’sinternalcontroland

compliance.Accordingly,thiscommunicationisnotsuitableforanyotherpurpose.

(31)

Ͳ26Ͳ

MANAGEMENTLETTER

ReportontheFinancialStatements

WehaveauditedthefinancialstatementsoftheBrightonLakesCommunityDevelopmentDistrict

(“District”)asofandforthefiscalyearendedSeptember30,2014,andhaveissuedourreportthereon

datedFebruary27,2015.

Auditor’sResponsibility

WeconductedourauditinaccordancewithauditingstandardsgenerallyacceptedintheUnitedStates

ofAmerica;thestandardsapplicabletofinancialauditscontainedinGovernmentAuditingStandards, issuedbytheComptrollerGeneraloftheUnitedStates;andChapter10.550,RulesoftheFloridaAuditor

General.

OtherReportsandSchedule

WehaveissuedourIndependentAuditor’sReportonInternalControloverFinancialReportingand

ComplianceandOtherMattersBasedonanAuditoftheFinancialStatementsPerformedinAccordance

withGovernmentAuditingStandards.Disclosuresinthisreport,whichisdatedFebruary27,2015,

shouldbeconsideredinconjunctionwiththismanagementletter.

PriorAuditFindings

Section10.554(1)(i)1.,RulesoftheAuditorGeneral,requiresthatwedeterminewhetherornot

correctiveactionshavebeentakentoaddressfindingsandrecommendationsmadeinthepreceding

annualfinancialauditreport.Therewerenofindingsorrecommendationsmadeintheproceeding

annualauditreport.

OfficialTitleandLegalAuthority

Section10.554(1)(i)4.,RulesoftheAuditorGeneral,requiresthatthenameorofficialtitleandlegal

authorityfortheprimarygovernmentandeachcomponentunitofthereportingentitybedisclosedin

thismanagementletter,unlessdisclosedinthenotestothefinancialstatements.Theinformation

(32)

FinancialCondition

Section10.554(1)(i)5.a.,RulesoftheAuditorGeneral,requiresthatwereporttheresultsofour

determinationastowhetherornottheDistricthasmetoneormoreoftheconditionsdescribedin

Section218.503(1),FloridaStatutes,andidentificationofthespecificcondition(s)met.Inconnection

withouraudit,wedeterminedthattheDistrictdidnotmeetanyoftheconditionsdescribedinSection

218.503(1),FloridaStatutes.

PursuanttoSections10.554(1)(i)5.c.and10.556(8),RulesoftheAuditorGeneral,weappliedfinancial

conditionassessmentprocedures.Itismanagement’sresponsibilitytomonitortheDistrict’sfinancial

condition,andourfinancialconditionassessmentwasbasedinpartonrepresentationsmadeby

managementandthereviewoffinancialinformationprovidedbysame.

AnnualFinancialReport

Section10.554(1)(i)5.b.,RulesoftheAuditorGeneral,requiresthatwereporttheresultsofour

determinationastowhethertheannualfinancialreportfortheDistrictforthefiscalyearended

September30,2014,filedwiththeFloridaDepartmentofFinancialServicespursuanttoSection

218.32(1)(a),FloridaStatutes,isinagreementwiththeannualfinancialauditreportforthefiscalyear

endedSeptember30,2014.Inconnectionwithouraudit,wedeterminedthatthesetworeportswerein

agreement.

OtherMatters

Section10.554(1)(i)2.,RulesoftheAuditorGeneral,requiresthatweaddressinthemanagementletter

anyrecommendationstoimprovefinancialmanagement.Inconnectionwithouraudit,wedidnothave

anysuchrecommendations.

Section10.554(1)(i)3.,RulesoftheAuditorGeneral,requiresthatweaddressnoncompliancewith

provisionsofcontractsorgrantagreements,orabuse,thathaveoccurred,orarelikelytohave

occurred,thathaveaneffectonthefinancialstatementsthatislessthanmaterialbutwhichwarrants

theattentionofthosechargedwithgovernance.Inconnectionwithouraudit,wedidnothaveanysuch

findings.

PurposeofthisLetter

OurmanagementletterisintendedsolelyfortheinformationanduseofLegislativeAuditing

Committee,membersoftheFloridaSenateandtheFloridaHouseofRepresentatives,theFlorida

AuditorGeneral,Federalandothergrantingagencies,theBoardofSupervisors,andapplicable

management,andisnotintendedtobeandshouldnotbeusedbyanyoneotherthanthesespecified

parties.

(33)

Ͳ28Ͳ INDEPENDENTACCOUNTANT’SREPORT

We have examined Brighton Lakes Community Development District’s compliance with the

requirementsofSection218.415,FloridaStatutes,LocalGovernmentInvestmentPolicies,duringthe

yearendedSeptember30,2014.ManagementisresponsiblefortheDistrict’scompliancewiththose

requirements.OurresponsibilityistoexpressanopinionontheDistrict’scompliancebasedonour

examination.

OurexaminationwasconductedinaccordancewithattestationstandardsestablishedbytheAmerican

InstituteofCertifiedPublicAccountantsand,accordingly,includedexamining,onatestbasis,evidence

abouttheDistrict’scompliancewiththoserequirementsandperformingsuchotherproceduresaswe

considerednecessaryinthecircumstances.Webelievethatourexaminationprovidesareasonable

basisforouropinion.OurexaminationdoesnotprovidealegaldeterminationontheDistrict’s

compliancewithspecifiedrequirements.

Inouropinion,theDistrictcomplied,inallmaterialrespects,withtheaforementionedrequirementsfor

theyearendedSeptember30,2014.

ThisreportisintendedsolelyfortheinformationanduseofmanagementandtheStateofFlorida

AuditorGeneralandisnotintendedtobeandshouldnotbeusedbyanyoneotherthanthesespecified

parties.

February27,2015

(34)

February27,2015

TheBoardofSupervisors

Wearepleasedtopresenttheresultsofourauditofthe2014financialstatementsoftheBrighton

LakesCommunityDevelopmentDistrict(“theDistrict”).

ThisreporttotheBoardofSupervisorsandManagementsummarizesouraudit,thereportissued

andvariousanalysesandobservationsrelatedtotheDistrict’saccountingandreporting.The

documentalsocontainsthecommunicationsrequiredbyourprofessionalstandards.

Ourauditwasdesigned,primarily,toexpressanopinionontheDistrict’s2014financialstatements.

WeconsideredtheDistrict’scurrentandemergingbusinessneeds,alongwithanassessmentof

risksthatcouldmateriallyaffectthefinancialstatements,andalignedourauditprocedures

accordingly.Weconductedtheauditwiththeobjectivityandindependencethatyouexpect.We

receivedthefullsupportandassistanceoftheDistrict’spersonnel.

AtCarr,Riggs&Ingram,LLC(CRI),wearecontinuallyevaluatingthequalityofourprofessionals’

workinordertodeliverauditservicesofthehighestqualitythatwillmeetorexceedyour

expectations.Weencourageyoutoprovideanyfeedbackyoubelieveisappropriatetoensurethat

wedonotoverlookasingledetailasitrelatestothequalityofourservices.

ThisreportisintendedsolelyfortheinformationanduseoftheBoardofSupervisors,Management

andotherswithintheDistrictandshouldnotbeusedbyanyoneotherthanthesespecifiedparties.

Weappreciatethisopportunitytoworkwithyou.Ifyouhaveanyquestionsorcomments,please

contactmeat850Ͳ837Ͳ3141orajowers@cricpa.com.

Verytrulyyours,

K.AlanJowers

Partner

(35)

RequiredCommunications

AsdiscussedwiththeBoardofSupervisorsandManagementduringourplanningprocess,ouraudit

planrepresentedanapproachresponsivetotheassessmentofriskfortheDistrict.Specifically,we

plannedandperformedourauditto:

x Performauditservices,asrequestedbytheBoardofSupervisors,inaccordancewith

auditingstandardsgenerallyacceptedintheUnitedStatesofAmericaandthestandards

applicabletofinancialauditscontainedinGovernmentAuditingStandardsissuedbythe

ComptrollerGeneraloftheUnitedStates,inordertoexpressanopinionontheDistrict’s

financialstatementsfortheyearendedSeptember30,2014;

x CommunicatedirectlywiththeBoardofSupervisorsandManagementregardingtheresults

ofourprocedures;

x AddresswiththeBoardofSupervisors,andmanagementanyaccountingandfinancial

reportingissues;

WehaveauditedthefinancialstatementsofBrightonLakesCommunityDevelopmentDistrictfor

theyearendedSeptember30,2014,andhaveissuedourreportthereondatedFebruary27,2015.

Professionalstandardsrequirethatweprovideyouwiththefollowinginformationrelatedtoour

audit:

MATTERTOBECOMMUNICATED AUDITOR’SRESPONSE

Auditor’sresponsibilityunderGenerally AcceptedAuditingStandardsand

GovernmentalAuditingStandards

SeeourengagementletterdatedAugust18,2014.

Client’sresponsibility

Plannedscopeandtimingoftheaudit

Significantaccountingpolicies,sensitive estimates,andsignificantdisclosures

None. Significant difficulties encountered in the audit

None.

Disagreementswithmanagement

None.

Otherfindingsorissues

(36)

MATTERTOBECOMMUNICATED AUDITOR’SRESPONSE Correctedanduncorrectedmisstatements None.

Mattersarisingfromtheauditthatwere discussedwith,orthesubjectof

correspondencewith,management

None.

Consultationswithotheraccountants

Noneofwhichweareaware.

Writtenrepresentations Wehaverequestedcertainrepresentationsfrom

management that are included in the

management representation letter dated

February27,2015.

Brighton Lakes Community Development District

Brighton

Lakes

Community

Development

District

FINANCIAL

STATEMENTS

TableofContents

September30,2014

Management’s

Discussion

And

Analysis

Management’sDiscussionandAnalysis

BrightonLakesCommunityDevelopmentDistrict

Management’sDiscussionandAnalysis

Management’sDiscussionandAnalysis

BrightonLakesCommunityDevelopmentDistrict

Management’sDiscussionandAnalysis

Management’sDiscussionandAnalysis

StatementofNetPosition

BrightonLakesCommunityDevelopmentDistrict

StatementofActivities

BalanceSheet–GovernmentalFunds

BrightonLakesCommunityDevelopmentDistrict

ReconciliationoftheBalanceSheetofGovernmentalFundstotheStatementof

NetPosition

StatementofRevenues,ExpendituresandChangesinFundBalances–

GovernmentalFunds

BrightonLakesCommunityDevelopmentDistrict

ReconciliationoftheStatementofRevenues,ExpendituresandChangesinFund

BalancesofGovernmentalFundstotheStatementofActivities

NotestoFinancialStatements

BrightonLakesCommunityDevelopmentDistrict

NotestoFinancialStatements

NotestoFinancialStatements

BrightonLakesCommunityDevelopmentDistrict

NotestoFinancialStatements

NotestoFinancialStatements

BrightonLakesCommunityDevelopmentDistrict

NotestoFinancialStatements

NotestoFinancialStatements

BrightonLakesCommunityDevelopmentDistrict

NotestoFinancialStatements

NotestoFinancialStatements

Required

Supplemental

Information

(Other

Than

MD&A)

BudgettoActualComparisonSchedule–GeneralFund

RequiredCommunications