Deer Run Community Development District

ANNUAL FINANCIAL REPORT

September 30, 2021

Deer Run Community Development District ANNUAL FINANCIAL REPORT
September 30, 2021 TABLE OF CONTENTS

Page Number

REPORT OF INDEPENDENT AUDITORS	1-2
MANAGEMENT’S DISCUSSION AND ANALYSIS	3-8
BASIC FINANCIAL STATEMENTS:
Government-wide Financial Statements
Statement of Net Position	9
Statement of Activities	10
Fund Financial Statements:
Balance Sheet – Governmental Funds	11
Reconciliation of Total Governmental Fund Balances to Net
Position of Governmental Activities	12
Statement of Revenues, Expenditures and Changes in Fund
Balances – Governmental Funds	13
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the
Statement of Activities	14
Statement of Revenues, Expenditures and Changes in Fund
Balances – Budget and Actual – General Fund	15
Notes to Financial Statements	16-29
INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS	30-31
MANAGEMENT LETTER	32-34
INDEPENDENT ACCOUNTANTS’ REPORT/COMPLIANCE WITH SECTION
218.415, FLORIDA STATUTES	35

REPORT OF INDEPENDENT AUDITORS

To the Board of Supervisors
Deer Run Community Development District Flagler County, Florida

Report on the Financial Statements

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

Management’s Responsibility for the Financial Statements

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

Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Accounting Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

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

Opinion

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

Other Matters

Required Supplementary Information

Governmental accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by 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 governmental auditing standards generally accepted in the United States of America, which consisted principally of inquires of management regarding the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued a report dated June 27, 2022 on our consideration of the District’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations and contracts. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Deer Run Community Development District’s internal control over financial reporting and compliance.

Berger, Toombs, Elam, Gaines & Frank Certified Public Accountants PL
Fort Pierce, Florida June 27, 2022

- 2 -

Management’s discussion and analysis of Deer Run Community Development District (the “District”) financial performance provides an objective and easily readable analysis of the District’s financial activities for the fiscal year ended September 30, 2021. The analysis provides summary financial information for the District and should be read in conjunction with the District’s financial statements.

OVERVIEW OF THE FINANCIAL STATEMENTS

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

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

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

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

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

OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)

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

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

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

Financial Highlights

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

The District’s total assets were exceeded by total liabilities by $(2,654,483) (net position). Unrestricted net position for Governmental Activities was $(1,286,080). Net investment in capital assets was $(1,539,207). Restricted net position was $170,804.

Governmental activities revenues totaled $1,277,529 while governmental activities expenses totaled $1,346,563.

OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)

Financial Analysis of the District

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

Net Position

	Governmental Activities	
		2021			2020		
Current assets	$	100,422	$	85,685	
Restricted assets	767,282	776,443	
Capital assets		5,241,995 		5,504,149 	
Total Assets		6,109,699 		6,366,277 	
Current liabilities	471,498	470,916	
Non-current liabilities		8,292,684 		8,480,810 	
Total Liabilities		8,764,182 		8,951,726 	
Net Position			
Net investment in capital assets	(1,539,207)	(1,277,053)	
Restricted	170,804	176,600	
Unrestricted		(1,286,080)		(1,484,996)	
Total Net Position	 $ (2,654,483)	$ (2,585,449)	

The decrease in capital assets is related to depreciation in the current year.

The decrease in non-current liabilities was the result of principal payments made in the current year.

OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)
Financial Analysis of the District (Continued)
The following schedule provides a summary of the changes in net position of the District and is presented by category for comparison purposes. It is not intended to be a complete presentation of District-wide financial activity.
Change in Net Position
Governmental Activities
	2021		2020	
Program Revenues				
Charges for services	$	1,219,697		$	2,041,757	
Contributions	51,938		16,516	
General Revenues				
Investment earnings	71		8,304	
Miscellaneous revenues		5,823 			4,605 	
Total Revenues		1,277,529 			2,071,182 	

Expenses				
General government	96,111	84,380	
Physical environment	383,626	392,418	
Culture/recreation	396,041	362,892	
Interest and other charges		470,785 		517,503 	
Total Expenses		1,346,563 		1,357,193 	
Change in Net Position	(69,034)	713,989	
Net Position - Beginning of Year		(2,585,449)		(3,299,438)	
Net Position - End of Year	 $	(2,654,483)	 $	(2,585,449)	

The decrease in charges for services is due to a decrease in debt service special assessments in the current year.

The increase in culture/recreation is related to the increase in amenity utilities in the current year.

The decrease in interest and other charges is related to the principal payments made during the prior year.

OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)

Capital Assets Activity

The following schedule provides a summary of the District’s capital assets as of September 30, 2021 and 2020.

Governmental Activities
Description		2021		2020	
Infrastructure		$	3,567,906		$	3,567,906	
Buildings and improvements		3,213,296		3,213,296	
Accumulated depreciation			(1,539,207)			(1,277,053)	

Total Capital Assets (Net)

 $	5,241,995 

 $	5,504,149 

 	

The activity for the year consisted of $262,154 in depreciation.

General Fund Budgetary Highlights

Actual expenditures were less than budgeted amounts primarily because of less facility and pool maintenance expenditures than expected.

The September 30, 2021 budget was amended to increase amenity and repair and maintenance budgeted amounts.

Debt Management

Governmental Activities debt includes the following:

In August 2018, the District issued debt of $11,175,000 of Special Assessment Revenue and Refunding Bonds, Series 2018. These bonds were issued to refund a portion of the Series 2008 Special Assessment Revenue Bonds and to provide funding for the Series 2018 Project. The balance outstanding at September 30, 2021 was $8,525,000.

OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)

Economic Factors and Next Year’s Budget

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

Request for Information

The financial report is designed to provide a general overview of Deer Run Community Development District’s finances for all those with an interest. Questions concerning any of the information provided in this report or requests for additional information should be addressed to the Deer Run Community Development District, Governmental Management Services, CF, LLC, 219 East Livingston Street, Orlando, Florida 32801.

Deer Run Community Development District	
STATEMENT OF NET POSITION	
September 30, 2021	

ASSETS	
Current Assets	
Cash	
Due from developer	
Total Current Assets	
Non-current Assets	
Restricted assets	
Investments	
Capital assets, being depreciated	
Buildings and improvements	
Infrastructure	
Less: accumulated depreciation	
Total Non-current Assets	
Total Assets	

Governmental	
Activities	

$	47,227	
	53,195 	
	100,422 	

767,282	
3,213,296	
3,567,906	
	(1,539,207)	
	6,009,277 	
	6,109,699 	

LIABILITIES		
Current Liabilities		
Accounts payable and accrued expenses	76,445	
Accrued interest	192,998	
Unearned revenues	12,055	
Bonds payable - current portion		190,000 	
Total Current Liabilities		471,498 	
Non-current Liabilities		
Bonds payable, net		8,292,684 	
Total Liabilities		8,764,182 	

NET POSITION		
Net investment in capital assets	(1,539,207)	
Restricted-debt service	170,804	
Unrestricted		(1,286,080)	
Total Net Position	 $	(2,654,483)	

See accompanying notes to financial statements.

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

Net (Expense)	
Revenues and	
Changes in	
Revenues	Net Position	
Operating
Grants and	Governmental Contributions		Activities	

Program

Functions/Programs	Expenses
Governmental Activities

Charges for Services

$	88,754	
$	8,135	
$	778	
260,539	23,880	(99,207)	
217,358	19,923	(158,760)	
	653,046 		- 		182,261 	
 $ 1,219,697 	 $	51,938 	(74,928)	

General government	$	(96,111)
Physical environment	(383,626)
Culture/recreation		(396,041) Interest and other charges		(470,785)

Total Governmental Activities

 $ (1,346,563)

 

General revenues:

Investment earnings	
Miscellaneous revenues	
Total General Revenues	

71	
5,823	
	5,894 	

Change in Net Position	(69,034)

Net Position - October 1, 2020	
Net Position - September 30, 2021	

 	
	(2,585,449)	
 $	(2,654,483)	

Deer Run Community Development District	
BALANCE SHEET –	
GOVERNMENTAL FUNDS	
September 30, 2021	

Total	
Governmental	
	Funds		
$	47,227	
53,195	

Debt	
	Service		
$	-	
-	

Capital	
	Projects		
$	-	
-	

ASSETS	
Cash	
Due from developer	
Restricted assets	
Investments, at fair value	
Total Assets	

	General		
$	47,227	
53,195	

	-  	745,258  	22,024 	767,282	
 $	100,422   $	745,258   $	22,024   $	867,704 	

LIABILITIES AND FUND BALANCES

LIABILITIES	
Accounts payable and accrued expenses	
Unearned revenues	
Total Liabilities	

$	76,445	
	12,055 	
	88,500 	

$	-	
	- 	
	- 	

$	-	
	- 	
	- 	

$	76,445	
12,055	
	88,500 	

FUND BALANCES	
Restricted	
Debt service	
Capital projects	
Unassigned	

-	745,258	-	745,258	
-	-	22,024	22,024	
11,922	-	-	11,922	

   

Total Fund Balances	11,922	745,258	22,024	779,204

Total Liabilities and Fund Balances

 $  100,422 

 $	745,258 

 $	22,024 

 $	867,704 

   

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

Total Governmental Fund Balances

Amounts reported for governmental activities in the Statement of Net Position	
are different because:	

$	779,204

Capital assets being depreciated, infrastructure, $3,567,906, and buildings and	
improvements, $3,213,296, net of accumulated depreciation, $(1,539,207),	
used in governmental activities are not current financial resources and therefore,	
are not reported at the fund level.	

5,241,995

Long-term liabilities, such as bonds payable $(8,525,000), net of bond discounts, net,	
$42,316, are not due and payable in the current period and therefore, are not	
reported at the fund level.	(8,482,684)	

Accrued interest expense for long-term debt is not a current financial use	
and therefore, is not reported at the fund level.	(192,998)	

Net Position of Governmental Activities	 $	(2,654,483)

Deer Run Community Development District	
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES –	
GOVERNMENTAL FUNDS	
For the Year Ended September 30, 2021	

Debt	
   Service		

	General	

REVENUES	
Special assessments	
Developer contributions	
Investment earnings	
Miscellaneous revenues	
Total Revenues	

 	
$	566,651	
51,938	
-	
     5,823 	
    624,412 	

$	653,046	
-	
69	
        - 	
    653,115 	

$	-	
-	
2	
        - 	
        2 	

$ 1,219,697	
51,938	
71	
     5,823 	
   1,277,529 	

-	
-	
-	

-	
-	
-	

96,111	
282,137	
235,376	

96,111	
282,137	
235,376	

190,000	
    473,190 	
    663,190 	

-	
        - 	
        - 	

190,000
	473,190 
	1,276,814 

Total	
Governmental	
	Funds		

Capital	
  Projects		

EXPENDITURES	
Current	
General government	
Physical environment	
Culture/recreation	
Debt service	
Principal	
Interest	
Total Expenditures	

-	
        - 	
    613,624 	

Net change in fund balances	10,788		(10,075)		2		715	
Fund Balances - October 1, 2020	1,134		755,333		22,022		778,489	

Fund Balances - September 30, 2021	
 $	11,922 		
 $	745,258 		
 $	22,024 		
 $	779,204 	

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

Net Change in Fund Balances - Total Governmental Funds

Amounts reported for governmental activities in the Statement of Activities are	
different because:	

Repayment of bond principal is an expenditure in the governmental funds,	
but the repayment reduces long-term liabilities in the Statement of Net Position.	

Bond discounts are recorded as an other financing use at the	
fund level, however, at the government-wide level it is reflected as a	
contra-liability and amortized over the life of the debt. This the amount of the	
current year amortization.	

$	715

Governmental funds report capital outlays as expenditures, however	
in the Statement of Activities, the cost of those assets is allocated over their	
estimated useful lives as depreciation. This is the amount that of depreciation	
in the current period.	(262,154)	

190,000

(1,874)

In the Statement of Activities, interest is accrued on outstanding bonds, whereas in		
governmental funds, interest expenditures are reported when due.		
This is the net amount between the prior year and the current year accruals.		4,279 	

Change in Net Position of Governmental Activities	 $	(69,034)

Variance With	
Final Budget	
Positive	
(Negative)	

Original	Final	
Budget	Budget	Actual	

Deer Run Community Development District	
STATEMENT OF REVENUES, EXPENDITURES AND	
CHANGES IN FUND BALANCES – BUDGET AND ACTUAL –	
GENERAL FUND	
For the Year Ended September 30, 2021	

Revenues	
Special assessments	
Developer contributions	
Miscellaneous revenues	
Total Revenues	

$ 566,820	
$ 566,820	
$	566,651	
$	(169)	
-	-	51,938	51,938	
4,800	6,603	5,823	(780)	
571,620	573,423	624,412	50,989	

Expenditures	
Current	
General government	
Physical environment	
Culture/recreation	
Total Expenditures	

75,953	91,993	96,111	(4,118)	
251,976	285,160	282,137	3,023	
243,691	256,270	235,376	20,894	
571,620	633,423	613,624	19,799	

Net change in fund balances	-	(60,000)	10,788	70,788

-	-	1,134	1,134	

$	-	
$ (60,000)	
$	11,922	
$	71,922	

Fund Balances - October 1, 2020

Fund Balances - September 30, 2021

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

Reporting Entity

The District was established on May 15, 2007 by an ordinance of the Board of City Commissioners of the City Of Bunnell, Florida, under the Uniform Community Development District Act of 1980, Chapter 190, Florida Statutes, as amended (the "Act"), as a Community Development District. The District was established for the purposes of financing and managing the acquisition, construction, maintenance and operation of the infrastructure necessary for community development within its jurisdiction. The District is governed by a five-member Board of Supervisors, who are elected by the property owners for terms of four and two years. The District operates within the criteria established by Chapter 190, Florida Statutes. The Board has the responsibility for assessing 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, and financing improvements.

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

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

Measurement Focus and Basis of Accounting

The basic financial statements of the District are composed of the following:
Government-wide financial statements
Fund financial statements
Notes to financial statements

Government-wide Financial Statements

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

Governmental activities are supported by special assessments. Program revenues include charges for services, and payments made by parties outside of the reporting government’s citizenry if that money is restricted to a particular program. Program revenues are netted with program expenses in the statement of activities to present the net cost of each program.

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

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

Fund Financial Statements

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

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

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

The District has various policies governing the fund balance classifications.

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

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

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

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

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

Measurement Focus and Basis of Accounting (Continued)

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

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

Under the current financial resources measurement focus, only current assets and current liabilities are generally included on the balance sheet. The reported fund balance is considered to be a measure of “available spendable resources”. Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they are said to present a summary of sources and uses of “available spendable resources” during a period.

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

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

Debt service expenditures are recorded only when payment is due.

Basis of Presentation

Governmental Major Funds

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

Basis of Presentation (Continued)

Governmental Major Funds (Continued)

Debt Service Fund – Accounts for debt service requirements to retire certain special assessment revenue and refunding bonds which were used to refund existing debt and finance certain additional improvements. The bond series is secured by a pledge of debt service special assessment revenues in any fiscal year related to the improvements. A lien is placed on all benefited land in relationship to the debt outstanding.

Capital Projects Fund – The Capital Project Fund accounts for construction of certain additional improvements within the boundaries of the District, which is funded by bond proceeds. A lien is placed on all benefited land in relationship to the debt outstanding.

Non-current Governmental Assets/Liabilities

GASB Statement 34 requires that non-current governmental assets, such as land and buildings, and non-current governmental liabilities, such as special assessment bonds, be reported in the governmental activities column in the government-wide statement of net position.

Assets, Liabilities and Net Position or Equity

Cash and Investments

Florida Statutes require state and local governmental units to deposit monies with financial institutions classified as "Qualified Public Depositories," a multiple financial institution pool whereby groups of securities pledged by the various financial institutions provide common collateral from their deposits of public funds. This pool is provided as additional insurance to the federal depository insurance and allows for additional assessments against the member institutions, providing full insurance for public deposits.

Assets, Liabilities and Net Position or Equity (Continued)

Cash and Investments (Continued)

The District is authorized to invest in those financial instruments as established by Section 218.415, Florida Statutes. The authorized investments consist of:

Direct obligations of the United States Treasury;
The Local Government Surplus Funds Trust or any intergovernmental investment pool authorized pursuant to the Florida Interlocal Cooperative Act of 1969;
Interest-bearing time deposits or savings accounts in authorized qualified public depositories;
Securities and Exchange Commission, registered money market funds with the highest credit quality rating from a nationally recognized rating agency.

Cash equivalents include time deposits and certificates of deposit with original maturities of three months or less and held in a qualified public depository as defined by Florida Statute 280.02.

Receivables and Payables

Activities between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as “due to/from other funds”. Any residual balances outstanding between the governmental activities and business-type activities are reported as “internal balances”.

Restricted Net Position

Certain assets of the District and a corresponding liability or portion of net position is classified as restricted on the statement of net position because their use is limited either by law through constitutional provisions or enabling legislation; or by restrictions imposed externally by creditors. In a fund with both restricted and unrestricted net position, qualified expenses are considered to be paid first from restricted net position and then from unrestricted net position.

Capital Assets

Capital assets, which include buildings and improvements and infrastructure, are reported in the applicable governmental activities column.

The District defines capital assets as assets with an initial, individual cost of $5,000 or more and an estimated useful life in excess of one year. The valuation basis for all assets is historical cost.

The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend its useful life are not capitalized.

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Assets, Liabilities and Net Position or Equity (Continued)

Capital Assets (Continued)

Major outlays for capital assets and improvements are capitalized as projects are constructed.

Depreciation of capital assets is computed and recorded by utilizing the straight-line method. Estimated useful lives of the various classes of depreciable capital assets are as follows:

Infrastructure and improvements	20-40 years Buildings and improvements		30 years

Unamortized Bond Discount

Bond discounts are presented on the government-wide financial statements. The costs are amortized over the life of the bonds using the method of accounting. For financial reporting, the unamortized bond discount is netted against the applicable long-term debt.

Budgets

Budgets are prepared and adopted after public hearings for the governmental funds, pursuant to Chapter 190, Florida Statutes. The District utilizes the same basis of accounting for budgets as it does for revenues and expenditures in its various funds. The legal level of budgetary control is at the fund level. All budgeted appropriations lapse at year end. Formal budgets are adopted for the general and debt service funds. As a result, deficits in the budget variance columns of the accompanying financial statements may occur.

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

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

“Total fund balances” of the District’s governmental funds, $779,204, differs from “net position” of governmental activities, $(2,654,483), reported in the statement of net position. This difference primarily results from the long-term economic focus of the Statement of Net Position versus the current financial resources focus of the governmental fund balance sheet. The effect of the differences is illustrated as follows.

NOTE	B	–		RECONCILIATION	OF	GOVERNMENT-WIDE	AND	FUND	FINANCIAL STATEMENTS (CONTINUED)
Explanation of Differences Between the Governmental Fund Balance Sheet and the Government-wide Statement of Net Position (Continued)
Capital related items
When capital assets (land, infrastructure and improvements that are to be used in governmental activities) are purchased or constructed, the cost of those assets is reported as expenditures in governmental funds. However, the Statement of Net Position included those capital assets among the assets of the District as a whole.

Infrastructure	$	3,567,906	
Buildings and improvements	3,213,296	
Accumulated depreciation		(1,539,207)	
Total	$	5,241,995	
Long-term debt transactions
Long-term liabilities applicable to the District’s governmental activities are not due and payable in the current period and accordingly are not reported as fund liabilities. All liabilities (both current and long-term) are reported in the Statement of Net Position. Balances at September 30, 2021 were:

Bonds payable	$	(8,525,000)	
Bond discount, net		42,316	
Total	$	(8,482,684)	
Accrued interest
Accrued liabilities in the Statement of Net Position differ from the amount reported in governmental funds due to accrued interest on bonds.
Accrued interest on bonds payable	$	(192,998)
Explanation of Differences Between the Governmental Fund Operating Statements and the Statement of Activities
The “net change in fund balances” for government funds, $715, differs from the “change in net position” for governmental activities, $(69,034), reported in the statement of activities. The differences arise primarily from the long-term economic focus of the Statement of Activities versus the current financial resources focus of the governmental funds. The effect of the differences is illustrated as follows.

NOTE	B	–		RECONCILIATION	OF	GOVERNMENT-WIDE	AND	FUND	FINANCIAL STATEMENTS (CONTINUED)
Explanation of Differences Between the Governmental Fund Operating Statements and the Statement of Activities (Continued)
Capital related items
When capital assets that are to be used in governmental activities are purchased or constructed, the resources expended for those assets are reported as expenditures in governmental funds. However, at the government-wide level, the costs of those assets is allocated over their estimated useful lives and reported as depreciation. As a result, fund balances decrease by the amount of financial resources expended, whereas net position decrease by the amount of depreciation charged for the year.
Depreciation	$	(262,154)
Long-term debt transactions
Repayments of bond principal are reported as an expenditure in the governmental funds and, thus, have the effect of reducing fund balance because current financial resources have been used.

Debt principal payments	$	190,000

Some expenses reported at the government-wide level do not require the use of current financial resources, and therefore, are not reported as expenditures in at the fund level.
Change in accrued interest	$	4,279
Amortization of bond discount	$	(1,874)

NOTE C – CASH AND INVESTMENTS

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

Custodial Credit Risk – Deposits

Custodial credit risk is the risk that in the event of a bank failure, the District's deposits may not be returned to it. The District does not have a formal deposit policy for custodial credit risk, however, they follow the provisions of Chapter 280, Florida Statutes regarding deposits and investments. As of September 30, 2021, the District's bank balance was $49,766 and the carrying value $47,227. Exposure to custodial credit risk was as follows. The District maintains all deposits in a qualified public depository in accordance with the provisions of Chapter 280, Florida Statutes, which means that all deposits are fully insured by Federal Depositors Insurance or collateralized under Chapter 280, Florida Statutes.

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

	Investment	  Maturities   Fair Value	

FIMM Government Portfolio	30 days*
* Weighted average maturity

 $	767,282 

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

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

The investment listed above is a level 1 asset.

NOTE C – CASH AND INVESTMENTS (CONTINUED)
Interest Rate Risk
The District does not have a formal investment policy that limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates.

Credit Risk
The District's investments in government loans are limited by state statutory requirements and bond compliance. The District has no investment policy that would further limit its investment choices. As of September 30, 2021, the District's investment in the FIMM Government Portfolio was rated AAAm by Standard & Poor's.
Concentration of Credit Risk
The District places no limit on the amount it may invest in any one fund. The investment in the FIMM Government Portfolio is 100% of the District’s total investments.
The types of deposits and investments and their level of risk exposure as of September 30, 2021 were typical of these items during the fiscal year then ended. The District considers any decline in fair value for certain investments to be temporary.

NOTE D – SPECIAL ASSESSMENT REVENUES
Special assessment revenues recognized for the 2020-2021 fiscal year were levied in October 2020. All taxes certified to the County’s Tax Collector are due and payable on November 1, and certified to the County's Tax Collector. Per Section 197.162, Florida Statutes discounts are allowed for early payment at the rate of 4% in November, 3% in December, 2% in January, and 1% in February. Taxes paid in March are without discount.

NOTE E – CAPITAL ASSETS
Capital Asset activity for the year ended September 30, 2021 was as follows:

Balance	Balance
October 1,	September 30,
	2020	  Additions	 	Deletions	 	2021	
Governmental Activities:
Capital assets, being depreciated:		
Buildings and improvements	$ 3,213,296	$	-	$	-	$	3,213,296	
Infrastructure		3,567,906 		- 		- 		3,567,906 	
Total capital assets, being depreciated		6,781,202 		- 		- 		6,781,202 	
Less accumulated depreciation for: Buildings and improvements	
(160,665)	
(160,665)	
-	
(321,330)	
Infrastructure	  (1,116,388)		(101,489)		- 		(1,217,877)	
Total accumulated depreciation	  (1,277,053)		(262,154)		- 		(1,539,207)	
Capital assets being depreciated, net	 $ 5,504,149 	 $ (262,154)	 $	- 	 $	5,241,995 	

Depreciation	of	$262,154	was	charged	to	physical	environment,	$101,489	and culture/recreation, $160,665.
NOTE F – LONG-TERM DEBT

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

Long-term debt at October 1, 2020	$	8,715,000 Principal payments			(190,000)
Long-term debt at September 30, 2021		8,525,000 Bond discount, net			(42,316)
Long term-debt at September 30, 2021, net	$	8,482,684

Long-term debt is comprised of the following: Special Assessment Revenue and Refunding Bonds
$11,175,000 Series 2018 Special Assessment Revenue and Refunding Bonds due in annual principal installments beginning May 2019, maturing in May 2044. Interest at various rates between 5.4% and 5.5% due in November and
May, beginning November 2018. Current portion is $190,000.	$  8,525,000

NOTE F – LONG-TERM DEBT (CONTINUED)

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

Year Ending
  September 30,		
	Principal		
	Interest		
	Total		
2022	$	190,000	$	463,195	$	653,195	
2023	205,000	452,935	657,935	
2024	215,000	441,865	656,865	
2025	225,000	430,255	655,255	
2026	240,000	418,105	658,105	
2027-2031	1,400,000	1,882,625	3,282,625	
2032-2036	1,840,000	1,459,535	3,299,535	
2037-2041	2,640,000	898,395	3,538,395	
2042-2044		1,570,000 		142,175 		1,712,175 	
Totals	 $	8,525,000 	 $	6,589,085 	 $	15,114,085 	

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

The bonds are subject to extraordinary mandatory redemption prior to maturity, in whole on any date, or in part on an interest payment date, without premium, together with accrued interest to the redemption date if monies are available to retire the debt in accordance with the provisions of the indenture.

The bond resolution and the trust indenture provide for the establishment of certain accounts. The accounts include a construction, revenue, redemption, reserve, interest and prepayment account and are maintained by a trustee.

The bond indenture provides for Debt Service Reserve Funds, which shall be held by the Trustee separate and apart from all other funds. The following is a schedule of reserve requirements and balances in the reserve accounts at September 30, 2021:

Reserve	Reserve
	Balance		 Requirement 
Series 2018	 $ 403,544 	 $	381,456 

NOTE G – RISK MANAGEMENT

The District is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; and natural disasters for which the government carries commercial insurance. Settled claims from these risks have not exceeded commercial insurance coverage over the past three years.

NOTE H – DEVELOPER AGREEMENTS

The Developer owns a portion of the land within the District; therefore, assessment revenues in the general fund include assessments levied on the Developer owned property.

Additionally, the District entered into a deficit funding agreement with the Developer. Pursuant to the deficit funding agreement dated August 28, 2019, the Developer has agreed to fund any deficit of the District’s operating and maintenance expenditures in excess of the special assessments collected up to the total amount expended by the District for the fiscal year, without any reimbursement to the Developer. Pursuant to this agreement the Developer contributed $51,938 for the year ended September 30, 2021.

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

To the Board of Supervisors
Deer Run Community Development District Flagler County, Florida

We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of Deer Run Community Development District, as of and for the year ended September 30, 2021, and the related notes to the financial statements, and have issued our report thereon dated June 27, 2022.

Internal Control Over Financial Reporting

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

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

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

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Board of Supervisors
Deer Run Community Development District

Compliance and Other Matters

As part of obtaining reasonable assurance about whether Deer Run Community Development District's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion.

Purpose of this Report

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

Berger, Toombs, Elam, Gaines & Frank Certified Public Accountants PL
Fort Pierce, Florida June 27, 2022

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MANAGEMENT LETTER
To the Board of Supervisors
Deer Run Community Development District Flagler County, Florida
Report on the Financial Statements

We have audited the financial statements of the Deer Run Community Development District as of and for the year ended September 30, 2021, and have issued our report thereon dated June 27, 2022.
Auditor’s Responsibility

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

We have issued our Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards and our Independent Auditor’s Report on an examination conducted in accordance with AICPA Professionals Standards, AT-C Section 315 regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in that report, which is dated June 27, 2022, should be considered in conjunction with this management letter.
Prior Audit Findings

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

Financial Condition and Management

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

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To the Board of Supervisors
Deer Run Community Development District

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

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

Specific Information

The information provided below was provided by management and has not been audited; therefore, we do not express an opinion or provide any assurance on the information.
As required by Section 218.39(3)(c), Florida Statutes, and Section 10.554(1)(i)6, Rules of the Auditor General, the Deer Run Community Development District reported:
The total number of district employees compensated in the last pay period of the District’s fiscal year: 3
The total number of independent contractors to whom nonemployee compensation was paid in the last month of the District’s fiscal year: 11
All compensation earned by or awarded to employees, whether paid or accrued, regardless of contingency: $4,000
All compensation earned by or awarded to nonemployee independent contractors, whether paid or accrued, regardless of contingency: $607,293
Each construction project with a total cost of at least $65,000 approved by the District that is scheduled to begin on or after October 1, 2020, together with the total expenditures for such project: The District had no construction projects.
A budget variance based on the budget adopted under Section 189.016(4), Florida Statutes, before the beginning of the fiscal year being reported if the District amends a final adopted budget under Section 189.016(6), Florida Statutes: The budget was amended, see the following page.
As required by Section 218.39(3)(c), Florida Statutes, and Section 10.554(1)(i)8, Rules of the Auditor General, the Deer Run Community Development District reported:
The rate or rates of non-ad valorem special assessments imposed by the District: The General Fund, $465.18 - $2,000.00 and the Debt Service Fund, $500.00 - $4,250.00
The amount of special assessments collected by or on behalf of the District: Total Special Assessments collected was $1,219,697
The total amount of outstanding bonds issued by the District and the terms of such bonds: Series 2018 Bonds, $8,525,000 maturing May 2044.

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To the Board of Supervisors
Deer Run Community Development District

	

Original Budget		

Actual		Variance with Original Budget Positive
(Negative)	
Revenues						
Special assessments	$	566,820		$	566,651		$	(169)	
Developer contributions	-		51,938		51,938	
Miscellaneous revenues		4,800 			5,823 			1,023 	
Total Revenues		571,620 			624,412 			52,792 	

Expenditures Current						
General government	75,953	96,111	(20,158)	
Physical environment	251,976	282,137	(30,161)	
Culture and recreation		243,691 		235,376 		8,315 	
Total Expenditures		571,620 		613,624 		(42,004)	
Net changes in fund balance		- 		10,788 		10,788 	
Fund Balances - October 1, 2020		- 		1,134 		1,134 	
Fund Balances - September 30, 2021	 $	- 	 $	11,922 	 $	11,922 	

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

Berger, Toombs, Elam, Gaines & Frank Certified Public Accountants PL
Fort Pierce, Florida June 27, 2022
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INDEPENDENT ACCOUNTANTS’ REPORT/COMPLIANCE WITH SECTION 218.415, FLORIDA STATUTES

To the Board of Supervisors
Deer Run Community Development District Flagler County, Florida

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

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

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

Berger, Toombs, Elam, Gaines & Frank Certified Public Accountants PL
Fort Pierce, Florida June 27, 2022

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