Title: 1100.05 - 2022 SOUTHAVEN CDD FS (2022 Southaven Community Development District 11120 [9/30/2022] (In Process))
Author: MMejia

Southaven Community Development District
Management’s Discussion and Analysis

Southaven Community Development District

Southaven Community Development District
Notes to Financial Statements
Year Ended September 30, 2022

934 North Magnolia Avenue, Suite 100
Orlando, Florida 32803
407‐843‐5406
www.mcdirmitdavis.com

Financial Report
Year Ended September 30, 2022

Southaven Community Development District

Southaven Community Development District Table of Contents

| | Page
I. | Financial Section: |
| Independent Auditor's Report | 1
| Management's Discussion and Analysis | 3
| Financial Statements: |
| Government-Wide Financial Statements: |
| Statement of Net Position | 7
| Statement of Activities | 8
| Fund Financial Statements: |
| Balance Sheet - Governmental Funds | 9
| Statement of Revenues, Expenditures and Changes in Fund Balances - |
| Governmental Funds | 10
| Reconciliation of the Statement of Revenues, Expenditures and |
| Changes in Fund Balances of Governmental Funds |
| to the Statement of Activities | 11
| Statement of Revenues, Expenditures and Changes in Fund Balance - |
| Budget and Actual - General Fund | 12
| Notes to Financial Statements | 13
II. | Compliance Section: |
| 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 | 22
| Management Letter | 23
| Independent Accountant's Report on Compliance with the Requirements of |
| Section 218.415, Florida Statutes | 25

INDEPENDENT AUDITOR'S REPORT

934 North Magnolia Avenue, Suite 100
Orlando, Florida 32803
407‐843‐5406
www.mcdirmitdavis.com

To the Board of Supervisors
Southaven Community Development District

Report on the Audit of the Financial Statements Opinions
We have audited the financial statements of the governmental activities and each major fund of Southaven Community Development District (the “District”), as of and for the year ended September 30, 2022, and the related notes to the financial statements, which collectively comprise the District’s basic financial statements as listed in the table of contents.

In our opinion, the accompanying financial statements present fairly, the respective financial position of the governmental activities, and each major fund of the District as of September 30, 2022, and the respective changes in financial position thereof and the respective budgetary comparison for the General Fund for the year then ended in accordance with accounting principles generally accepted in the United States of America

Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the District and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Responsibilities of Management for the Financial Statements
The District's management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America; and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the District’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

Auditor’s Responsibility for the Audit of Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgement made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS, we:

Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the District’s internal control. Accordingly, no such opinion is expressed.

the trusted partner

Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
Conclude whether, in our judgement, there are conditions or events, considered in the aggregate, that raise substantial doubt about the District’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis starting on page 3, be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued a report dated March 30, 2023, on our consideration of the District’s internal control over financial reporting and our tests of its compliance with certain provisions on laws, regulations, contracts, agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the District’s internal control over financial reporting and compliance.

Orlando, Florida March 30, 2023

Our discussion and analysis of Southaven Community Development District, St. Johns County, Florida’s (the “District”) financial accomplishments provide an overview of the District’s financial activities for the year ended September 30, 2022. Please read it in conjunction with the District’s Independent Auditor’s Report, financial statements and accompanying notes.

This information is being presented to provide additional information regarding the activities of the District and to meet the disclosure requirements of Government Accounting Standards Board Statement (GASB) No. 34, Basic Financial Statements - and Management’s Discussion and Analysis - for State and Local Governments issued June 1999.

Financial Highlights

The assets of the District exceeded its liabilities at September 30, 2022 by $9,767,937 an increase in net position of
$253,030 in comparison with the prior year.
At September 30, 2022, the District’s governmental funds reported fund balances of $757,580, an increase of $51,904 in comparison with the prior year.

Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to Southaven Community Development District’s financial statements. The District’s financial statements are comprised of three components: 1) government-wide financial statements, 2) fund financial statements and 3) notes to financial statements.

Government-Wide Financial Statements
The government-wide financial statements are designed to provide readers with a broad overview of the District’s finances, in a manner similar to a private-sector business.

The statement of net position presents information on all of the District’s assets and liabilities, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the District is improving or deteriorating.

The statement of activities presents information showing how the government’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will result in cash flows in future fiscal periods.

The government-wide financial statements include all governmental activities that are principally supported by special assessment revenues. The District does not have any business-type activities. The governmental activities of the District include general government, physical environment, public safety, and parks and recreation related functions.

Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The District, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. The District has one fund category: Governmental Funds.

Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a District’s near-term financing requirements.

Governmental Funds
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.

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

The District adopts an annual appropriated budget for its general fund. A budgetary comparison schedule has been provided for the general fund to demonstrate compliance with the budget.

Notes to Financial Statements
The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements.

Government-Wide Financial Analysis
Statement of Net Position
The District’s net position was $9,767,937 at September 30, 2022. The analysis that follows focuses on the net position of the District’s governmental activities.

2022	2021

Assets, excluding capital assets Capital assets, net of depreciation

$	791,882	$
	15,561,182

730,056
15,635,473

Total assets | 16,353,064 | 16,365,529
Liabilities, excluding long-term liabilities | 196,529 | 193,197
Long-term liabilities | 6,388,598 | 6,657,425
Total liabilities | 6,585,127 | 6,850,622
Net Position: | |
Net investment in capital assets | 9,172,584 | 8,978,048
Restricted for debt service | 424,167 | 418,455
Restricted for capital projects | 5,081 | 4,260
Unrestricted | 166,105 | 114,144
Total net position | $	9,767,937   $ | 9,514,907

The following is a summary of the District’s governmental activities for the fiscal years ended September 30, 2022 and 2021.

| 2022 | | 2021
Revenues: | | |
Program revenues | $	1,419,572 | | 1,387,709
General revenues | 11,173 | | 11,187
Total revenues | 1,430,745 | | 1,398,896
Expenses: | | |
General government | 95,514 | | 97,557
Maintenance and operations | 396,401 | | 362,118
Public safety | 65,421 | | 79,786
Parks and recreation | 221,786 | | 189,682
Interest on long-term debt | 398,593 | | 416,013
Total expenses | 1,177,715 | | 1,145,156
Change in net position | 253,030 | | 253,740
Net position, beginning | 9,514,907 | | 9,261,167
Net position, ending | $	9,767,937 | | $	9,514,907

As noted above and in the statement of activities, the cost of all governmental activities during the year ended September 30, 2022 was $1,177,715. The majority of these costs are interest on long-term debt and maintenance and operations.

Financial Analysis of the Government’s Funds
The District uses fund accounting to ensure and demonstrate compliance with finance related legal requirements. The focus of the District’s governmental funds is to provide information on near-term inflows, outflows and balances of spendable resources. Such information is useful in assessing the District’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year. At September 30, 2022, the District’s governmental funds reported combined ending fund balances of $757,580. Of this total, $34,089 is non-spendable, $591,475 is restricted, and the remainder of $132,016 is unassigned.

The general fund balance increased by $51,961 due to revenues exceeding expenditures. The debt service and capital projects fund balance did not change significantly.

General Fund Budgetary Highlights
An operating budget was adopted and maintained by the governing board for the District pursuant to the requirements of Florida Statutes. The budget to actual comparison for the general fund, including the original budget and final adopted budget, is shown on page 12. The budget is adopted using the same basis of accounting that is used in preparation of the fund financial statements. The legal level of budgetary control is at the fund level.

Capital Asset and Debt Administration
Capital Assets
At September 30, 2022, the District had $15,561,182 invested in infrastructure. More detailed information about the District’s capital assets is presented in the notes to financial statements.

Capital Debt
At September 30, 2022, the District had $6,415,000 in bonds outstanding. More detailed information about the District’s capital debt is presented in the notes to financial statements.

Requests for Information
If you have questions about this report or need additional financial information, contact Southaven Community Development District’s
Finance Department at 3434 Colwell Ave., Suite 200, Tampa, Florida 33614.

FINANCIAL STATEMENTS

Statement of Net Position
September 30, 2022

| | Governmental
| | Activities
Assets: | |
Cash | $ | 166,318
Prepaid costs | | 30,621
Deposits | | 3,468
Restricted Assets: | |
Temporarily restricted investments | | 591,475
Capital Assets: | |
Capital assets not being depreciated | | 13,861,047
Capital assets being depreciated, net | | 1,700,135
Total assets | | 16,353,064
Liabilities: | |
Accounts payable and accrued expenses | | 34,302
Accrued interest payable | | 162,227
Noncurrent Liabilities: | |
Due within one year | | 150,000
Due in more than one year | | 6,238,598
Total liabilities | | 6,585,127
Net Position: | |
Net investment in capital assets | | 9,172,584
Restricted for debt service | | 424,167
Restricted for capital projects | | 5,081
Unrestricted | | 166,105
Total net position | $ | 9,767,937

Statement of Activities
Year Ended September 30, 2022

Net (Expense) Revenue and Changes in Net
	^Program ^Revenue	 	Position

Functions/Programs

Expenses

Charges for
Services

Operating
and Contributions

Capital Grants
and Contributions

Governmental
Activities

Governmental Activities: | | | | | | | | |
General government | $	95,514 | $	91,407 | $	-	$	-	$	(4,107)
Maintenance and operations | 396,401 | 379,355 | -	-	(17,046)
Public safety | 65,421 | 62,608 | -	-	(2,813)
Parks and recreation | 221,786 | 212,249 | -	-	(9,537)
Interest on long-term debt | 398,593 | 670,995 | 2,937 | 21 | 275,360
Total governmental activities | $  1,177,715 | $ 1,416,614 | $	2,937 | $	21 | 241,857

General Revenues: Miscellaneous | 11,173
Total general revenues | 11,173
Change in net position | 253,030
Net position, beginning | 9,514,907
Net position, ending | $	9,767,937

Balance Sheet - Governmental Funds
September 30, 2022

| | | | | | | | | | Total
Governmental
| | General | Debt Service | | Capital Projects | | | Funds
Assets: | | | | | | | | | |
Cash | $ | 166,318 | | $ | - | | $	- | $	166,318
Investments | | - | 586,394 | | 5,081 | | | 591,475
Prepaid costs | | 30,621 | | | - | | - | | | 30,621
Deposits | | 3,468 | | | - | | - | | | 3,468
Total assets | $	200,407 | | $	586,394 | | $	5,081 | $	791,882
Liabilities and Fund Balances: | | | | | | | | | |
Liabilities: | | | | | | | | | |
Accounts payable and accrued expenses | $ | 34,302 | | $ | - | | $	- | $	34,302
Total liabilities | | 34,302 | | | - | | - | | | 34,302
Fund Balances: | | | | | | | | | |
Nonspendable | | 34,089 | | | - | | - | | | 34,089
Restricted for: | | | | | | | | | |
Debt service | | - | 586,394 | | - | | | 586,394
Capital projects | | - | | | - | | 5,081 | | | 5,081
Unassigned | | 132,016 | | | - | | - | | | 132,016
Total fund balances | | 166,105 | 586,394 | | 5,081 | | | 757,580
Total liabilities and fund balances | $	200,407 | | $	586,394 | | $	5,081 | | |
Amounts reported for governmental activities in the statement of net position are different because:
Capital Assets used in Governmental Activities are not financial resources and therefore are not reported
in the funds. | | | | | | | | | | 15,561,182
Long-term liabilities are not due and payable in the current period and therefore are not reported in the
funds. | | | | | | | | | |
Accrued interest payable | (162,227) | | | | |
Bonds payable | | (6,388,598) | | | | | (6,550,825)
Net Position of Governmental Activities | | | | | | $ | 9,767,937

Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds
Year Ended September 30, 2022

Revenues
Assessment revenue
Special assessments, prepayments Investment & miscellaneous income

$

General

745,619
-
     11,173

$

Debt Service

544,236
126,759
      2,937

$

Capital Projects

-
-
       21

$

Total Governmental
Funds

1,289,855
126,759
14,131

Total revenues | 756,792 | 673,932 | 21 | 1,430,745
Expenditures | | | | | | |
Current: | | | | | | |
General government | 95,514 | - | | - | | | 95,514
Public safety | 65,421 | - | | - | | | 65,421
Maintenance and operations | 322,110 | - | | - | | | 322,110
Parks and recreation | 221,786 | - | | - | | | 221,786
Debt Service: | | | | | | |
Interest | - | 404,010 | | - | | | 404,010
Principal | - | 270,000 | | - | | | 270,000
Total expenditures | | 704,831 | | | 674,010 | | | - | | | 1,378,841
Excess (Deficit) of Revenues Over Expenditures | 51,961 | (78) | 21 | 51,904
Other Financing Sources (uses): | | | |
Transfers in | - | - | 800 | 800
Transfers out | - | (800) | - | (800)
Total other financing sources (uses) | - | (800) | 800 | -
Net change in fund balances | | 51,961 | | | (878) | | | 821 | | | 51,904
Fund balances, beginning of year | 114,144 | 587,272 | 4,260 | 705,676
Fund balances, end of year | $ | 166,105 | | $ | 586,394 | | $ | 5,081 | | $ | 757,580

Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statements of Activities
Year Ended September 30, 2022

Amounts reported for Governmental Activities in the Statement of Activities are different because:
Net Change in Fund Balances - total governmental funds | $ | 51,904
Governmental Funds report outlays for capital assets as expenditures because such outlays use current financial resources; however, in the statement of net position the cost of those assets is recorded as capital assets. Depreciation of capital assets is not recognized in the governmental fund statements but is reported as an expense in the statement of activities.
Depreciation expense | | (74,291)
Repayments of long-term liabilities are reported as expenditures in governmental funds, while repayments reduce long-term liabilities in the statement of net position. | 270,000
Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds.

Change in accrued interest Amortization of bond discount

6,590
(1,173)

5,417

Change in Net Position of Governmental Activities | $ | 253,030

Statement of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - General Fund
Year Ended September 30, 2022

Revenues
Assessment revenue
Investment & miscellaneous income

$

Budgeted Amounts Original	Final

739,172	$	739,172
-	-

Actual Amounts

$	745,619
11,173

$

Variance with Final Budget
Positive (Negative)

6,447
11,173

Total revenues | | 739,172 | | 739,172 | | 756,792 | | | 17,620
Expenditures | | | | | | | | |
Current: | | | | | | | | |
General government | | 91,014 | | 91,014 | | 95,514 | | | (4,500)
Public safety | | 62,983 | | 62,983 | | 65,421 | | | (2,438)
Maintenance and operations | | 328,787 | | 328,787 | | 322,110 | | | 6,677
Parks and recreation | | 246,388 | | 246,388 | | 221,786 | | | 24,602
Capital outlay | | 10,000 | | 10,000 | | - | | | 10,000
Total expenditures | | 739,172 | | 739,172 | | 704,831 | | | 34,341
Excess (deficit) of revenues over expenditures | | - | | - | | 51,961 | | | 51,961
Net change in fund balance | | - | | - | | 51,961 | | | 51,961
Fund balance, beginning | | 114,144 | | 114,144 | | 114,144 | | | -
Fund balance, ending | $ | 114,144 | | $	114,144 | | $	166,105 | | $ | 51,961

NOTES TO FINANCIAL STATEMENTS

NOTE 1	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Reporting Entity
Southaven Community Development District, (the “District”) was established on May 13, 2014 by St. Johns County Ordinance 2014- 22 pursuant to the Uniform Community Development District Act of 1980, otherwise known as Chapter 190, Florida Statutes. The Act provides, among other things, the power to manage basic services for community development, the power to borrow money and issue bonds, and the power to levy and assess non-ad valorem assessments for the financing and delivery of capital infrastructure. The District was established for the purpose of financing and managing the acquisition, construction, maintenance and operation of a portion of the infrastructure necessary for community development within the District.

The District is governed by the Board of Supervisors (the “Board”), which is composed of five members. Ownership of land within the District entitles the owner to one vote per acre. The Board of Supervisors of the District exercises all powers granted to the District pursuant to Chapter 190, Florida Statutes.

The Board has final responsibility for:

Allocating and levying assessments.
Approving budgets.
Exercising control over facilities and properties.
Controlling the use of funds generated by the District.
Approving the hiring and firing of key personnel.
Financing improvements.

The financial statements were prepared in accordance with Governmental Accounting Standards Board (“GASB”) Statements 14, 39, and 61. Under the provisions of those standards, the financial reporting entity consists of the primary government, organizations for which the District Board of Supervisors is considered to be financially accountable, and other organizations for which the nature and significance of their relationship with the District are such that, if excluded, the financial statements of the District would be considered incomplete or misleading. There are no entities considered to be component units of the District; therefore, the financial statements include only the operations of the District.

Government-Wide and Fund Financial Statements
The financial statements include both government-wide and fund financial statements.

The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the non-fiduciary activities of the primary government. For the most part, the effect of interfund activity has been removed from these statements.

The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment, 2) grants, contributions and investment earnings that are restricted to meeting the operational or capital requirements of a particular function or segment and 3) operating-type special assessments that are treated as charges for services (including assessments for maintenance and debt service). Other items not included among program revenues are reported instead as general revenues.

Measurement Focus, Basis of Accounting and Financial Statement Presentation
The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Assessments are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenues as soon as all eligibility requirements imposed by the provider have been met.

NOTE 1	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the District considers revenues to be available if they are collected within 60 days of the end of the current fiscal period, except for Developer receivables for retainage, which are collected from the Developer when the amount is due to the contractor. Expenditures are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures are recorded only when payment is due.

Assessments, including debt service assessments and operation and maintenance assessments, are non-ad valorem assessments imposed on all lands located within the District and benefited by the District’s activities. Operation and maintenance special assessments are levied by the District prior to the start of the fiscal year which begins October 1^st and ends on September 30^th. These assessments are imposed upon all benefited lands located in the District. Debt service special assessments are imposed upon certain lots and lands as described in each resolution imposing the special assessment for each series of bonds issued by the District. Certain debt service assessments are collected upon the closing of those lots subject to short term debt and are used to prepay a portion of the bonds outstanding.

Assessments and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received by the District.

The District reports the following major governmental funds:

General Fund - Is the District’s primary operating fund. It is used to account for and report all financial resources not accounted for and reported in another fund.

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

Capital Project Fund - Accounts for the financial resources to be used for the acquisition or construction of major infrastructure within the District.

As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. When both restricted and unrestricted resources are available for use, it is the District’s policy to use restricted resources first, then unrestricted resources as they are needed.

Assets, Liabilities, Deferred Outflows/Inflows of Resources and Net Position/Fund Balance
Restricted Assets
These assets represent cash and investments set aside pursuant to bond covenants.

Deposits and Investments
The District’s cash and cash equivalents are considered to be cash on hand and demand deposits.

Investments of the District are reported at fair value and are categorized within the fair value hierarchy established in accordance with GASB Statement No. 72, Fair Value Measurement and Application. The District’s investments consist of investments authorized in accordance with Section 218.415, Florida Statutes.

Prepaid Items
Inventory and prepaid items are recorded as expenditures when consumed rather than when purchased in both government-wide and fund financial statements.

NOTE 1	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Capital Assets
Capital assets, which include property, plant, equipment and infrastructure assets (e.g., roads, sidewalks and similar items), are reported in the applicable governmental activities column in the government-wide financial statements. Capital assets are defined by the District as assets with an initial, individual cost of more than $5,000 and an estimated useful life in excess of two years. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at acquisition value at the date of donation.

The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed.

Property, plant and equipment of the District are depreciated using the straight-line method over the following estimated useful lives:

Assets | Years
Buildings and Other Structures | 30
Equipment | 5

Long Term Obligations
In the government-wide financial statements, long-term debt and other long-term obligations are reported as liabilities in the statement of net position. Bond premiums and discounts are deferred and amortized over the life of the bonds using the straight-line method. Bond issuance costs are reported as expenses. Bonds payable are reported net of premiums or discounts.

In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as expenditures.

Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The District does not have any item that qualifies for reporting in this category for the year ended September 30, 2022.

In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The District does not have any item that qualifies for reporting in this category for the year ended September 30, 2022.

Net Position Flow Assumption
Sometimes the District will fund outlays for a particular purpose from both restricted and unrestricted resources. In order to calculate the amounts to report as restricted net position and unrestricted net position in the government-wide financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the District’s policy to consider restricted net position to have been depleted before unrestricted net position is applied.

Fund Balance Flow Assumptions
Sometimes the District will fund outlays for a particular purpose from both restricted and unrestricted resources (total of committed, assigned, and unassigned fund balance). In order to calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the District’s policy to consider restricted fund balance to have been depleted before using any of the components of unrestricted fund balance. Further, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last.

NOTE 1	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Fund Balance Policies
Fund balance of governmental funds is reported in various categories based on the nature of any limitations requiring the use of resources for specific purposes. The District itself can establish limitations on the use of resources through either commitment (committed fund balance) or an assignment (assigned fund balance).

The committed fund balance classification includes fund balance amounts that can be used only for the specific purposes determined by a formal action of the government’s highest level of decision-making authority. The Board of Supervisors is the highest level of decision-making authority for the government that can, by adoption of an ordinance or resolution prior to the end of the fiscal year, commit fund balance. Once adopted, the limitation imposed by the ordinance or resolution remains in place until a similar action is taken to remove or revise the limitation.

Amounts in the assigned fund balance classification are intended to be used by the government for specific purposes but do not meet the criteria to be classified as committed. The Board of Supervisors has authorized the District Manager to assign amounts for specific purposes. The Board of Supervisors may also assign fund balance as it does when appropriating fund balance to cover a gap between estimated revenue and appropriations in the subsequent year’s appropriated budget. Unlike commitments, assignments generally only exist temporarily. In other words, an additional action does not normally have to be taken for the removal of an assignment. Conversely, as discussed above, an additional action is essential to either remove or revise a commitment.

Other Disclosures
Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenditures during the reporting period. Actual results could differ from those estimates.

New Accounting Standards Issued
In fiscal year 2022, the District has not implemented any new accounting standards with a material effect on the District’s financial statements.

NOTE 2	STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY

Budgetary Information
The District is required to establish a budgetary system and an approved annual budget for the General Fund. Annual budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America. All annual appropriations lapse at the fiscal year end. The legal level of budgetary control is at the fund level. Any budget amendments that increase the aggregate budgeted appropriations, at the fund level, must be approved by the Board of Supervisors.

The District follows these procedures in establishing the budgetary data reflected in the financial statements.

Each year the District Manager submits to the District Board a proposed operating budget for the fiscal year commencing the following October 1.
A public hearing is conducted to obtain comments.
Prior to October 1, the budget is legally adopted by the District Board.
All budget changes must be approved by the District Board.
The budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America.

NOTE 3	DEPOSITS AND INVESTMENTS

Deposits
The District’s cash balances were entirely covered by federal depository insurance or by a collateral pool pledged to the State Treasurer. Florida Statutes Chapter 280, “Florida Security for Public Deposits Act”, requires all qualified depositories to deposit with the Treasurer or another banking institution eligible collateral equal to various percentages of the average daily balance for each month of all public deposits in excess of any applicable deposit insurance held. The percentage of eligible collateral (generally, U.S. Governmental and agency securities, state or local government debt, or corporate bonds) to public deposits is dependent upon the depository’s financial history and its compliance with Chapter 280. In the event of a failure of a qualified public depository, the remaining public depositories would be responsible for covering any resulting losses.

Investments
The District categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The fair value is the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. The District uses a market approach in measuring fair value that uses prices and other relevant information generated by market transactions involving identical or similar assets, liabilities, or groups of assets and liabilities.

Under GASB 72, 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.

The District has the following recurring fair value measurements as of September 30, 2022:

Goldman Sachs Government Fund of $591,475 are valued using Level 2 inputs.

Instead of establishing a written investment policy, the District elected to limit investments to those approved by Florida Statutes and the District Trust Indenture. Authorized District investments include, but are not limited to:

The Local Government Surplus Funds Trust Fund (SBA);
Securities and Exchange Commission registered money market funds with the highest credit quality rating from a nationally recognized rating agency;
Interest-bearing time deposits or savings accounts in qualified public depositories;
Direct obligations of the U.S. Treasury.

Investments made by the District at September 30, 2022 are summarized below. In accordance with GASB 31, investments are
reported at fair value. | | | |

Investment Type	
Goldman Sachs Government Fund

$

Fair Value
591,475

Credit Rating
AAAm

Weighted Average
Maturity

11 days

Credit Risk: | | | |
For investments, credit risk is generally the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. Investments in U.S. Government securities and agencies must be backed by the full faith and credit of the United States Government. Short term bond funds shall be rated by a nationally recognized ratings agency and shall maintain the highest credit quality rating. Investment ratings by investment type are included in the preceding summary of investments.

NOTE 3	DEPOSITS AND INVESTMENTS (CONTINUED)

Custodial Credit Risk:
In the case of deposits, this is the risk that, in the event of a bank failure, the District’s deposits may not be returned to it. The District’s investment policy requires that bank deposits be secured as provided by Chapter 280, Florida Statutes. This law requires local governments to deposit funds only in financial institutions designated as qualified public depositories by the Chief Financial Officer of the State of Florida, and creates the Public Deposits Trust Fund, a multiple financial institution pool with the ability to assess its member financial institutions for collateral shortfalls if a default or insolvency has occurred. At September 30, 2022, all of the District’s bank deposits were in qualified public depositories.

For an investment, this is the risk that, in the event of the failure of the counterparty, the government will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. At September 30, 2022, none of the investments listed are exposed to custodial credit risk because their existence is not evidenced by securities that exist in physical or book entry form.

Concentration of Credit Risk:
The District places no limit on the amount the District may invest in any one issuer.

Interest Rate Risk:
The District does not have a formal policy that limits investment maturities as a means of managing exposure to fair value losses arising from increasing interest rates. The District manages its exposure to declines in fair values by investing primarily in pooled investments that have a weighted average maturity of less than three months.

NOTE 4	CAPITAL ASSETS

Capital asset activity for the year ended September 30, 2022 was as follows:

Beginning
Balance

Additions

Disposals

Ending
Balance

Governmental Activities: | | | | | | | | |
Capital assets not being depreciated: Improvements under construction | $ 13,861,047 | | $ | - | | $ | - | | $ 13,861,047
Total capital assets not being depreciated | 13,861,047 | | | - | | | - | | 13,861,047

Capital assets being depreciated: Building
Equipment

2,100,000
21,453

-
-

-
-

2,100,000
21,453

Total capital assets being depreciated | 2,121,453 | | | - | | | - | | 2,121,453

Less accumulated depreciation for: Building
Equipment

(344,167)
(2,860)

(70,000)
(4,291)

-
-

(414,167)
(7,151)

Total accumulated depreciation | (347,027) | | | (74,291) | | | - | | (421,318)
Total capital assets being depreciated, net | 1,774,426 | | | (74,291) | | | - | | 1,700,135
Governmental activities capital assets, net | $ 15,635,473 | | $ | (74,291) | | $ | - | | $ 15,561,182

Depreciation expense for 2022 was charged to physical environment.

Total projected cost of the infrastructure improvements has been estimated at approximately $19 million, which will be funded with Developer contributions and additional bond issues.

NOTE 5	LONG-TERM LIABILITIES

Series 2015 Special Assessment Bonds- Direct Borrowing
In March 2015, the District issued $7,555,000 of Special Assessment Bonds, Series 2015. The Bonds consist of $4,035,000 Series 2015A-1 ($1,855,000 Term Bonds due May 1, 2035 with a fixed interest rate of 5.95% and $2,180,000 Term Bonds due May 1, 2045 with a fixed interest rate of 6.0%) and $3,520,000, Series 2015A-2 Term Bonds due May 1, 2045 with a fixed interest rate of 5.9%. The Bonds were issued to finance the acquisition and construction of certain improvements for the benefit of the property within the District. Interest is paid semiannually on each May 1 and November 1. Principal on the Bonds is to be paid serially commencing May 1, 2016 through May 1, 2045.

The Series 2015 Bonds are subject to redemption at the option of the District prior to maturity at a redemption price as set forth in the Bond Indenture. The Bonds are subject to extraordinary mandatory redemption prior to maturity in the manner determined by the Bond Indenture. In the event of default, all principal and interest of the Bonds will become immediately due and payable.

The Bond Indenture requires that the District maintain adequate funds in a reserve account to meet the debt service reserve requirements as defined in the Indenture. The requirement has been met at September 30, 2022.

The Bond Indenture has certain restrictions and requirements relating principally to the use of proceeds to pay for the infrastructure improvements and the procedures to be followed by the District on assessments to property owners. The District agreed to levy special assessments in annual amounts adequate to provide payment of debt service. Payment of principal and interest on the 2015 Bonds is secured by a pledge of and a first lien upon the pledged special assessment revenue. The District is in compliance with the requirements of the Bond Indenture.

As of September 30, 2022, total principal and interest remaining on the Series 2015 Special Assessment Bonds was $4,725,299. For the fiscal year ended September 30, 2022, principal and interest paid was $270,112 and special assessment revenue pledged was
$263,870.

Series 2016 Special Assessment Bonds- Direct Borrowing
In November 2016, the District issued $6,925,000 of Special Assessment Bonds, Series 2016. The Bonds consist of $4,515,000 Series 2016A-1 ($250,000 Term Bonds due May 1, 2021 with a fixed interest rate of 4.50%, $400,000 Term Bonds due May 1, 2026 with a fixed interest rate of 5.35%, $1,245,000 Term Bond due May 1, 2036 with a fixed interest rate of 6.1%, and $2,620,000 Term Bonds due May 1, 2047 with a fixed interest rate of 6.25%) and $2,410,000, Series 2016A-2 Term Bonds due November 1, 2023 with a fixed interest rate of 6.25%. The Bonds were issued to finance the acquisition and construction of certain improvements for the benefit of the property within the District. Interest is paid semiannually on each May 1 and November 1. Principal on the Bonds is to be paid serially commencing May 1, 2018 through May 1, 2047.

The Series 2016 Bonds are subject to redemption at the option of the District prior to maturity at a redemption price as set forth in the Bond Indenture. The Bonds are subject to extraordinary mandatory redemption prior to maturity in the manner determined by the Bond Indenture. In the event of default, all principal and interest of the Bonds will become immediately due and payable.

The Bond Indenture requires that the District maintain adequate funds in a reserve account to meet the debt service reserve requirements as defined in the Indenture. The requirement has been met at September 30, 2022.

The Bond Indenture has certain restrictions and requirements relating principally to the use of proceeds to pay for the infrastructure improvements and the procedures to be followed by the District on assessments to property owners. The District agreed to levy special assessments in annual amounts adequate to provide payment of debt service. Payment of principal and interest on the 2016 Bonds is secured by a pledge of and a first lien upon the pledged special assessment revenue. The District is in compliance with the requirements of the Bond Indenture.

NOTE 5	LONG-TERM LIABILITIES (CONTINUED)

As of September 30, 2022, total principal and interest remaining on the Series 2016 Special Assessment Bonds was $7,416,535. For the fiscal year ended September 30, 2022, principal and interest paid was $403,898 and special assessment revenue pledged was
$407,125.

Beginning
Balance

Additions

Reductions

Ending
Balance

Due Within
One Year

$  2,760,000 | | $	- | | $	(105,000) | | $  2,655,000 | | $	75,000
(27,575) | | - | | 1,173 | | (26,402) | | -
3,925,000 | - | (165,000) | 3,760,000 | 75,000
$  6,657,425 | $	- | $	(268,827) | $  6,388,598 | $	150,000

Long-term liability activity for the year ended September 30, 2022 was as follows:

Governmental Activities:
Bonds Payable:
Series 2015 Less: Discount Series 2016
Governmental activity long- term liabilities

At September 30, 2022, the scheduled debt service requirements on the bonds payable were as follows:

Governmental Activities
Year Ending September 30, | | Principal | | Interest
2023 | | $	150,000 | | $	389,343
2024 | | 160,000 | | 380,868
2025 | | 170,000 | | 371,828
2026 | | 140,000 | | 362,223
2027 | | 185,000 | | 354,193
2028-2032 | | 1,120,000 | | 1,588,123
2033-2037 | | 1,225,000 | | 1,224,421
2038-2042 | | 1,695,000 | | 812,413
2043-2047 | | 1,570,000 | | 243,422
| | $	6,415,000 | | $	5,726,834
NOTE 6	MANAGEMENT COMPANY | | | |

The District has contracted with a management company to perform management services, which include financial and accounting services. Certain employees of the management company also serve as officers (Board appointed non-voting positions) of the District. Under the agreements, the District compensates the management company for management, accounting, financial reporting and other administrative costs.

NOTE 7	RISK MANAGEMENT

The District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; and natural disasters. These risks are covered by commercial insurance from independent third parties. Settled claims from these risks have not exceeded commercial insurance coverage during the last three years.

COMPLIANCE SECTION

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
Southaven Community Development District

We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities and each major fund of Southaven Community Development District (the “District”) as of and for the year ended September 30, 2022 and the related notes to the financial statements, which collectively comprise the District’s basic financial statements, and have issued our report thereon dated March 30, 2023.

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

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

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

Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the District’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the 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 District’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 District’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Orlando, Florida March 30, 2023

MANAGEMENT LETTER

Board of Supervisors
Southaven Community Development District

Report on the Audit of the Financial Statements
We have audited the financial statements of Southaven Community Development District, (the “District”) as of and for the fiscal year ended September 30, 2022, and have issued our report thereon dated March 30, 2023.

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

Other Reporting Requirements
We have issued our Independent Auditor’s Report on Internal Control over Financial Reporting and Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards and Independent Accountant’s Report on an examination conducted in accordance with AICPA Professional Standards, AT-C Section 315, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports, which are dated March 30, 2023, 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 annual financial audit report. There were no findings or recommendations made in the preceding annual financial audit report.

Official Title and Legal Authority
Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this management letter, unless disclosed in the notes to financial statements. This information has been disclosed in the notes to financial statements.

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 the District has met one or more of the conditions described in Section 218.503(1), Florida Statutes, and to identify the specific condition(s) met. In connection with our audit, we determined that the District did not meet any of the conditions described in Section 218.503(1), Florida Statutes.

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

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

Specific Information (Unaudited)
As required by Section 218.39(3)(c), Florida Statutes, and Section 10.554(1(i)6, Rules of the Auditor General, the District reported:
The total number of district employees compensated in the last pay period of the district fiscal year as none.
The total number of independent contractors to whom nonemployee compensation was paid in the last month of the district’s financial year as 11.
All compensation earned by or awarded to employees, whether paid or accrued, regardless of contingency as none.
All compensation earned by or awarded to nonemployee independent contractors, whether paid or accrued, regardless of contingency as $78,482.

Each construction project with a total cost of at least $65,000 approved by the district that is scheduled to begin on or after October 1 of the fiscal year being reported, together with the total expenditures for such project as none.
A budget variance based on the budget adopted under Section 189.016(4), Florida Statutes, before the beginning of the fiscal year being reported if the district amends a final budget under Section 189.016(6), Florida Statutes, see page 12.

As required by Section 218.39(3)(c), Florida Statutes, and Section 10.554(1)(i)7, Rules of the Auditor General, the district reported:
The rate or rates of non-ad valorem special assessments imposed by the district as the following:

Lot size

O&M
Assessment

Debt Service
Assessment

Single Family 58' | $	2,145.04 | | $	1,800.00
Single Family 63' | 2,165.80 | | 1,800.00
Single Family 73' | 2,205.01 | | 1,800.00
Single Family 83' | 2,244.22 | | 2,100.00
Single Family 93' | 2,283.43 | | 2,100.00

The total amount of special assessments collected by or on behalf of the district as $1,289,855.
The total amount of outstanding bonds issued by the district and the terms of such bonds as disclosed in the notes to financial statements.

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 which 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, and applicable management, the Board of Supervisors, and is not intended to be and should not be used by anyone other than these specified parties.

Orlando, Florida March 30, 2023

934 North Magnolia Avenue, Suite 100
Orlando, Florida 32803
407‐843‐5406
www.mcdirmitdavis.com

INDEPENDENT ACCOUNTANT’S REPORT ON COMPLIANCE WITH THE REQUIREMENTS OF SECTION 218.415, FLORIDA STATUTES

To the Board of Supervisors
Southaven Community Development District

We have examined Southaven Community Development District’s (the “District”) compliance with the requirements of Section 218.415, Florida Statutes, during the year ended September 30, 2022. Management is responsible for the District’s compliance with those requirements. Our responsibility is to express an opinion on District’s compliance based on our examination.

Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and the standards applicable to attestation engagements contained in Government Auditing Standards issued by the Comptroller General of the United States, and, accordingly, included examining, on a test basis, evidence about the 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 the District’s compliance with specified requirements.

In our opinion, the District complied, in all material respects, with the aforementioned requirements for the year ended September 30, 2022.

Orlando, Florida March 30, 2023

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The accompanying Notes to Financial Statements are an integral part of this statement

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