Deer Run Community Development District

ANNUAL FINANCIAL REPORT

September 30, 2024

Deer Run Community Development District ANNUAL FINANCIAL REPORT
September 30, 2024 TABLE OF CONTENTS

Page Number
REPORT OF INDEPENDENT AUDITORS	1-3
MANAGEMENT’S DISCUSSION AND ANALYSIS	4-9
BASIC FINANCIAL STATEMENTS:
Government-wide Financial Statements
Statement of Net Position	10
Statement of Activities	11
Fund Financial Statements:
Balance Sheet – Governmental Funds	12
Reconciliation of Total Governmental Fund Balances to Net
Position of Governmental Activities	13
Statement of Revenues, Expenditures and Changes in Fund
Balances – Governmental Funds	14
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the
Statement of Activities	15
Statement of Revenues, Expenditures and Changes in Fund
Balances – Budget and Actual – General Fund	16
Notes to Financial Statements	17-30
INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS	31-32
MANAGEMENT LETTER	33-35
INDEPENDENT ACCOUNTANTS’ REPORT/COMPLIANCE WITH SECTION
218.415, FLORIDA STATUTES	36

REPORT OF INDEPENDENT AUDITORS

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

Report on Audit of the Financial Statements
Opinion

We have audited the financial statements of the governmental activities and each major fund of Deer Run Community Development District (the “District”), as of and for the year ended September 30, 2024, and the related notes to 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, in all material respects, the respective financial position of the governmental activities and each major fund of Deer Run Community Development District as of September 30, 2024, and the respective changes in financial position and the 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 Opinion
We conducted our audits 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 (Government Auditing Standards). 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 relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Responsibilities of Management 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; 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.

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To the Board of Supervisors
Deer Run Community Development District

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 one year beyond the financial statement date, including currently known information that may raise substantial doubt thereafter.

Auditor’s Responsibility for the Audit of the 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 opinion. 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 and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for 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 judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS and Government Auditing Standards, 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.
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 judgment, 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.

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To the Board of Supervisors
Deer Run Community Development District

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that Management’s Discussion and Analysis 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 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 August 20, 2025 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 the effectiveness of the District’s 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 August 20, 2025

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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, 2024. 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 special assessment 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, 2024.

The District’s total assets were exceeded by total liabilities by $(2,221,700) (net position). Unrestricted net position for Governmental Activities was $(168,092). Net investment in capital assets was $(2,311,044). Restricted net position was $257,436.

Governmental activities revenues totaled $1,729,798 while governmental activities expenses totaled $1,467,783.

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	
		2024			2023		
Current assets	$	375,318	$	184,843	
Restricted assets	772,217	816,287	
Capital assets		4,529,288 		4,750,312 	
Total Assets		5,676,823 		5,751,442 	
Current liabilities	440,217	533,725	
Non-current liabilities		7,458,306 		7,701,432 	
Total Liabilities		7,898,523 		8,235,157 	
Net Position			
Net investment in capital assets	(2,311,044)	(2,047,765)	
Restricted	257,436	297,848	
Unrestricted		(168,092)		(733,798)	
Total Net Position	 $ (2,221,700)	 $ (2,483,715)	

The increase in current assets is related to the increase in investments in the current year.

The decrease in restricted assets is primarily due to the prepayments made on long-term debt in the current year.
The decrease in capital assets is primarily related to depreciation in the current year.

The decrease in total liabilities is 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	
Program Revenues		2024			2023		
Charges for services	$	1,680,116	$	1,495,273	
General Revenues Investment earnings	
42,892	
30,908	
Miscellaneous revenues		6,790 		26,371 	
Total Revenues		1,729,798 		1,552,552 	

Expenses
General government	

108,275	

121,600	
Physical environment	407,855	471,765	
Culture/recreation	522,426	446,988	
Interest and other charges		429,227 		446,665 	
Total Expenses		1,467,783 		1,487,018 	
Change in Net Position	262,015	65,534	
Net Position - Beginning of Year		(2,483,715)		(2,549,249)	
Net Position - End of Year	 $	(2,221,700)	 $	(2,483,715)	

The increase in charges for services is due to the increase in special assessments in the current year.

The decrease in general government is related to the decrease in engineering fee expense in the current year.

The decrease in physical environment is mainly related to the decrease in water and irrigation repairs in the current year.

The increase in culture/recreation is related to the increase in amenity and pool repairs and maintenance, facilities maintenance and supply expenses in the current year.

OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)

Capital Assets Activity

The following schedule provides a summary of the District’s capital assets as of September 30, 2024 and 2023.

	Governmental Activities	
	Description			2024			2023		
Construction in progress	$	42,255	$	-	
Infrastructure	3,567,906	3,567,906	
Buildings and improvements	3,230,171	3,230,171	
Accumulated depreciation		(2,311,044)		(2,047,765)	

Total Capital Assets (Net)

 $	4,529,288 

 $	4,750,312 

	
Capital asset activity for the year consisted of additions to construction in progress, $42,255, and depreciation, $263,279.
General Fund Budgetary Highlights

Actual expenditures were less than budgeted amounts primarily because of less property insurance and landscape maintenance expenditures than expected.
The September 30, 2024 budget was not amended.

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, 2024 was $7,725,000.
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 2025.

OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)

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, LLC, 475 West Town Place, Suite 114, St. Augustine, Florida 32092.

Deer Run Community Development District	
STATEMENT OF NET POSITION	
September 30, 2024	

ASSETS	
Current Assets	
Cash	
Investments	
Due from other governments	
Due from others	
Prepaid expenses	
Total Current Assets	
Non-current Assets	
Restricted assets	
Investments	
Capital assets, not being depreciated	
Construction in progress	
Capital assets, being depreciated	
Buildings and improvements	
Infrastructure	
Less: accumulated depreciation	
Total Non-current Assets	
Total Assets	

Governmental	
Activities	

$	81,531	
242,181	
6,013	
3,610	
	41,983 	
	375,318 	

772,217	
42,255	
3,230,171	
3,567,906	
	(2,311,044)	
	5,301,505 	
	5,676,823 	

LIABILITIES		
Current Liabilities		
Accounts payable and accrued expenses	35,250	
Accrued interest	174,967	
Bonds payable		230,000 	
Total Current Liabilities		440,217 	
Non-current Liabilities		
Bonds payable, net		7,458,306 	
Total Liabilities		7,898,523 	

NET POSITION		
Net investment in capital assets	(2,311,044)	
Restricted-debt service	257,436	
Unrestricted		(168,092)	
Total Net Position	 $	(2,221,700)	

Deer Run Community Development District	
STATEMENT OF ACTIVITIES	
For the Year Ended September 30, 2024	

Net (Expense)	
Revenues and	
Program	Changes in	
Revenues	Net Position	
Charges for	Governmental
Services	Activities	

$	(108,275)	$	142,992	$	34,717	
(407,855)	391,517	(16,338)	
(522,426)	477,755	(44,671)	
(429,227)	667,852	238,625	
$ (1,467,783)	$	1,680,116	212,333	

Functions/Programs	Expenses
Governmental Activities General government Physical environment Culture/recreation
Interest and other charges Total Governmental Activities

General Revenues:	
Investment earnings	
Miscellaneous revenues	
Total General Revenues	

42,892	
6,790	
49,682	

Change in Net Position	262,015

Net Position - October 1, 2023	
Net Position - September 30, 2024	

(2,483,715)	
$	(2,221,700)	

Deer Run Community Development District	
BALANCE SHEET –	
GOVERNMENTAL FUNDS	
September 30, 2024	

Total	
Governmental	
Funds	
$	81,531	
242,181	
6,013	
3,610	
41,983	

Debt	Capital	
Service	Projects	
$	-	$	25,257	
-	140,835	
2,189	-	
-	-	
-	-	

ASSETS	
Cash	
Investments	
Due from other governments	
Due from others	
Prepaid expenses	
Restricted assets	
Investments	
Total Assets	

General	
$	56,274	
101,346	
3,824	
3,610	
41,983	

-	748,058	24,159	772,217	
$	207,037	$	750,247	$  190,251	$	1,147,535	

LIABILITIES AND FUND BALANCES

LIABILITIES	
Accounts payable and accrued expenses	

$	35,250	$

-	$	-	$

35,250

FUND BALANCES	
Nonspendable	
Prepaid expenses	
Restricted	
Debt service	
Capital projects	
Assigned	
Capital projects	
Unassigned	

41,983	-	-	41,983

-	
-	

750,247	
-	

-	
24,159	

750,247	
24,159	

-	-	166,092	166,092	
129,804	-	-	129,804	

Total Fund Balances	
Total Liabilities and Fund Balances	

171,787		750,247		190,251		1,112,285	

$  207,037		
$	750,247		
$  190,251		
$	1,147,535	

Deer Run Community Development District	
RECONCILIATION OF TOTAL GOVERNMENTAL FUND BALANCES	
TO NET POSITION OF GOVERNMENTAL ACTIVITIES	
September 30, 2024	

Total Governmental Fund Balances

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

Capital assets, not being depreciated, construction in progress used in	
governmental activities, are not current financial resources and therefore,	
are not reported at the fund level.	

$	1,112,285

Capital assets being depreciated, infrastructure, $3,567,906, and buildings and	
improvements, $3,230,171, net of accumulated depreciation, $(2,311,044),	
used in governmental activities are not current financial resources and therefore,	
are not reported at the fund level.	

42,255

4,487,033

Long-term liabilities, such as bonds payable, $(7,725,000), net of bond discounts, net,	
$36,694, are not due and payable in the current period and therefore, are not	
reported at the fund level.	(7,688,306)	

Accrued interest expense for long-term debt is not a current financial use	
and therefore, is not reported at the fund level.	(174,967)	

Net Position of Governmental Activities	 $	(2,221,700)

Deer Run Community Development District	
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES –	
GOVERNMENTAL FUNDS	
For the Year Ended September 30, 2024	

REVENUES	
Special assessments	
Investment earnings	
Miscellaneous revenues	
Total Revenues	

$ 1,012,264	
$	667,852	
$	-	
$ 1,680,116	
1,343	38,508	3,041	42,892	
6,790	-	-	6,790	
1,020,397	706,360	3,041	1,729,798	

Total	
Governmental	
Funds	

Debt	Capital	
Service	Projects	

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

108,275	
296,461	
361,761	
-	

-	
-	
-	
-	

-	
8,780	
-	
42,255	

108,275	
305,241	
361,761	
42,255	

General

Other Financing Sources/(Uses)	
Transfers in	
Transfers out	
Total Other Financing Sources/(Uses)	

-	-	190,000	190,000	
(190,000)	-	-	(190,000)	
(190,000)	-	190,000	-	

-	320,000	-	320,000	
-	434,799	-	434,799	
766,497	754,799	51,035	1,572,331	

Excess of revenues over/(under)	
expenditures	

253,900	(48,439)	(47,994)	157,467

Net change in fund balances	63,900		(48,439)		142,006		157,467	
Fund Balances - October 1, 2023	107,887		798,686		48,245		954,818	

Fund Balances - September 30, 2024	
$	171,787		
$	750,247		
$	190,251		
$ 1,112,285	

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, 2024	

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 at the governmental fund level,	
but the repayment reduces long-term liabilities in the Statement of Net Position.	

Amortization expense of bond discounts does not require the use of current financial	
resources and therefore, is not reported at the fund level. This is the amount of	
amortization in the current period.	

$	157,467

Governmental funds report capital outlays as expenditures; however,		
in the Statement of Activities, the cost of those assets is allocated over their		
estimated useful lives as depreciation. This is the amount that depreciation,		
$(263,279), exceeded capital outlay, $42,255, in the current period.	(221,024)	

320,000

(1,874)

In the Statement of Activities, interest is accrued on outstanding bonds, whereas at the	
governmental fund level, interest expenditures are reported when due.		
This is the change in accrued interest from the prior year.	7,446	

Change in Net Position of Governmental Activities	$	262,015

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, 2024	

Variance With	
Final Budget	
Positive	
(Negative)	

Original	Final	
Budget	Budget	Actual	

Revenues	
Special assessments	
Investment earnings	
Miscellaneous revenues	
Total Revenues	

$ 1,006,746	
$ 1,006,746	
$ 1,012,264	
$	5,518	
-	-	1,343	1,343	
4,368	4,368	6,790	2,422	
1,011,114	1,011,114	1,020,397	9,283	

Expenditures	
Current	
General government	
Physical environment	
Culture/recreation	
Total Expenditures	

108,290	108,290	108,275	15	
403,483	403,483	296,461	107,022	
309,341	309,341	361,761	(52,420)	
821,114	821,114	766,497	54,617	

Excess of revenues over/(under)	
expenditures	

190,000	190,000	253,900	63,900

Other Financing Sources/(Uses)	
Transfers out	

(190,000)	(190,000)	(190,000)	-

-	-	107,887	107,887	

$	-	
$	-	
$	171,787	
$	171,787	

Net change in fund balances	-	-	63,900	63,900 Fund Balances - October 1, 2023
Fund Balances - September 30, 2024

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

Measurement Focus and Basis of Accounting (Continued)

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 primarily 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.

2. Measurement Focus and Basis of Accounting (Continued)

b. Fund Financial Statements (Continued) Governmental Funds
The District classified fund balance in accordance with 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.
Non-current Governmental Assets/Liabilities

GASB Statement 34 requires that non-current governmental assets, such as capital assets, 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.
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 construction in progress, 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.

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	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 straight-line method. For financial reporting, the unamortized bond discount is netted against the applicable long-term debt.

Budgets

Budgets are prepared and adopted after a public hearing 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, $1,112,285, differs from “net position” of governmental activities, $(2,221,700), 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 that are to be used in governmental activities are purchased or constructed, the cost of those assets is reported as expenditures at the governmental fund level. However, the Statement of Net Position included those capital assets among the assets of the District as a whole.

Construction in progress		$	42,255	
Infrastructure		3,567,906	
Buildings and improvements		3,230,171	
Accumulated depreciation			(2,311,044)	
Total
Long-term debt transactions

Long-term liabilities applicable to the	

District’s	$	4,529,288

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, 2024 were:

Bonds payable	$	(7,725,000)	
Bond discount, net		36,694 	
Total	$	(7,688,306)	
Accrued interest		
Accrued liabilities in the Statement of Net Position differ governmental fund level due to accrued interest on bonds.	from the amount reported at the	
Accrued interest on bonds payable	$	(174,967)	

Explanation of Differences Between the Governmental Fund Operating Statements and the Statement of Activities
The “net change in fund balances” for government funds, $157,467, differs from the “change in net position” for governmental activities, $262,015, 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 at the governmental fund level. 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	$	(263,279)	
Capital outlay		42,255 	
Total	$	(221,024)	
Long-term debt transactions
Repayments of bond principal are reported as an expenditure at the governmental fund level and, thus, have the effect of reducing fund balance because current financial resources have been used.
Debt principal payments	$	320,000

Some expenses reported at the government-wide level do not require the use of current financial resources, and therefore, are not reported as expenditures at the fund level.
Change in accrued interest	$	7,446
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, 2024, the District's bank balance was $84,627 and the carrying value $81,531. 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.
Investments
As of September 30, 2024, the District had the following investments and maturities:

	Investment	  Maturities   Fair Value 

FIMM Government Portfolio	21 days*	$	772,217	
Florida PRIME	39 days*		242,181 	
Total		 $ 1,014,398 	
* Maturity is a weighted average maturity.

The District categorizes its fair value measurement within the fair value hierarchy established by generally accepted accounting principles. The fair value is the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. The District uses a market approach in measuring fair value that uses prices and other relevant information generated by market transactions involving identical or similar assets, liabilities, or groups of assets and liabilities.
Assets or liabilities are classified into one of three levels. Level 1 is the most realizable and is based on quoted price for identical assets, or liabilities, in an active market. Level 2 uses significant other observable inputs when obtained quoted prices for identical or similar assets, or liabilities, in markets that are not active. Level 3 is the least reliable and uses significant unobservable inputs that uses the best information available under the circumstances which includes the District's own data in measuring unobservable inputs.

Based on the criteria in the preceding paragraph, the investments in FIMM Government Portfolio are Level 1 assets.

NOTE C – CASH AND INVESTMENTS (CONTINUED)
Investments (Continued)

The District’s investment policy allows management to invest funds in investments permitted under Section 218.415, Florida Statutes. The investment in Florida PRIME is measured at amortized cost. Florida PRIME has established policies and guidelines regarding participant transactions and the authority to limit or restrict withdrawals or impose a penalty for an early withdrawal. As of September 30, 2024, there were no redemption fees, maximum transactions amounts, or any other requirement that would limit daily access to 100 percent of the account value.
Interest Rate Risk
The District does not have a formal investment policy that limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates.
Credit Risk
The District's investments are limited by state statutory requirements and bond compliance. The District has no investment policy that would further limit its investment choices. As of September 30, 2024, the District's investments in the FIMM Government Portfolio and Florida PRIME were both rated AAAm by Standard & Poor's.
Concentration of Credit Risk
The District places no limit on the amount it may invest in any one fund. The investments in FIMM Government Portfolio represent 76% and Florida PRIME represent 24% of District’s total investments.
The types of deposits and investments and their level of risk exposure as of September 30, 2024 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 2023-2024 fiscal year were levied in August 2023. 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, 2024 was as follows:
Balance	Balance
October 1,	September 30,
2023	Additions	Deletions	2024
Governmental Activities:
Capital assets, not being depreciated:		
Construction in progress	$	-		$	42,255		$	-		$	42,255	
Capital assets, being depreciated:								
Buildings and improvements	3,230,171		-	-		3,230,171	
Infrastructure	3,567,906		-	-		3,567,906	
Total capital assets, being depreciated	6,798,077		-	-		6,798,077	
Less accumulated depreciation for:
Buildings and improvements	
(642,660)	

(160,665)	

-	
(803,325)	
Infrastructure	(1,405,105)	(102,614)	-	(1,507,719)	
Total accumulated depreciation	(2,047,765)		(263,279)		-	(2,311,044)	
Capital Assets Being Depreciated, Net	4,750,312		(263,279)		-	4,487,033	
Governmental Activities Capital Assets	$ 4,750,312		$ (221,024)		 
$	-	$	4,529,288	
Depreciation	of	$263,279	was	charged	to	physical	environment,	$102,614,	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, 2024:
Long-term debt at October 1, 2023	 $	8,045,000 Principal payments			(320,000)
Long-term debt at September 30, 2024		7,725,000 Bond discount, net			(36,694)
Long term-debt at September 30, 2024, net	$	7,688,306 
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 $230,000.	$  7,725,000 

NOTE F – LONG-TERM DEBT (CONTINUED)
The annual requirements to amortize the principal and interest of bonded debt outstanding as of September 30, 2024 are as follows:

Year Ending
  September 30,		
	Principal		
	Interest		
	Total		
2025	$	230,000	$	419,785	$	649,785	
2026	230,000	407,500	637,500	
2027	245,000	395,080	640,080	
2028	260,000	381,850	641,850	
2029	275,000	367,810	642,810	
2030-2034	1,610,000	1,599,830	3,209,830	
2035-2039	2,105,000	1,114,910	3,219,910	
2040-2044		2,770,000 		473,550 		3,243,550 	
Totals	 $	7,725,000 	 $	5,160,315 	 $	12,885,315 	
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 separately and apart from all other funds. The following is a schedule of reserve requirements and balances in the reserve accounts at September 30, 2024:

Reserve	Reserve
		Balance		 Requirement  Series 2018	 $ 318,525 	 $	317,844 

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 – INTERFUND TRANSFERS

Interfund transfers for the year ended September 30, 2024, consisted for the following:

 Transfers Out 
Transfers In	General Fund
 
Capital Projects Fund	$	190,000

Interfund transfer from the General Fund to the Capital Projects Fund was to fund capital project reserves.
NOTE I – SUBSEQUENT EVENT

In February 2025 and May 2025, the District made prepayments on the Series 2018 Bonds of
$10,000 and $10,000, respectively.

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 Bunnell, 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, as listed in the table of contents, of Deer Run Community Development District, as of and for the year ended September 30, 2024, and the related notes to the financial statements, which collectively comprise the basic financial statements and have issued our report thereon dated August 20, 2025.

Report on 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 or significant deficiencies may exist that have not been identified.

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To the Board of Supervisors
Deer Run Community Development District

Report on 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. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of this Report

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

Berger, Toombs, Elam, Gaines & Frank Certified Public Accountants PL
Fort Pierce, Florida August 20, 2025

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MANAGEMENT LETTER

To the Board of Supervisors
Deer Run Community Development District Bunnell, 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, 2024, and have issued our report thereon dated August 20, 2025.
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 Florida Auditor General.
Other Reports and Schedule
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 August 20, 2025, 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.

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To the Board of Supervisors
Deer Run Community Development District

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 has not met one 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 conditions assessment procedures as of September 30, 2024 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 below was provided by management and has not been audited by us; 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)7, Rules of the Auditor General, Deer Run Community Development District reported:
The total number of District employees compensated in the last pay period of the District’s fiscal year: 0
The total number of independent contractors, defined as individuals or entities that receive 1099s, to whom nonemployee compensation was paid in the last month of the District’s fiscal year: 17
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: $807,522.78
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, 2023, together with the total expenditures for such project: N/A
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 Board did not amend the budget.

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To the Board of Supervisors
Deer Run Community Development District
As required by Section 218.39(3)(c), Florida Statutes, and Section 10.554(1)(i)9, 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:
$504.83 – $1,706.32 for the General Fund and $500.00 – $1,124.00 for the Debt Service Fund.
The amount of special assessments collected by or on behalf of the District: Total special assessments collected was $1,680,116.
The total amount of outstanding bonds issued by the District and the terms of such bonds are as follows: $7,725,000 Series 2018 Bonds due on May 1, 2044 at various rates from 5.4% to 5.5%.

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 fraud, waste, or abuse, that has occurred or is likely to have occurred, that has 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 August 20, 2025

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

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

We have examined Deer Run Community Development District's compliance with Section 218.415, Florida Statutes during the year ended September 30, 2024. 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, 2024.

Berger, Toombs, Elam, Gaines & Frank Certified Public Accountants PL
Fort Pierce, Florida August 20, 2025

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