Renaissance Commons Community Development District

ANNUAL FINANCIAL REPORT

September 30, 2019

Renaissance Commons Community Development District ANNUAL FINANCIAL REPORT
September 30, 2019

 TABLE OF CONTENTS
REPORT OF INDEPENDENT AUDITORS	1-3
MANAGEMENT’S DISCUSSION AND ANALYSIS	4-8
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 Balance –
Budget and Actual – General Fund	15
Statement of Fiduciary Net Position – Agency Funds	16
Notes to Financial Statements	17-26
SUPPLEMENTARY INFORMATION
Statement of Changes in Assets and Liabilities - Agency Funds	27
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	28-29
MANAGEMENT LETTER	30-31
INDEPENDENT ACCOUNTANT’S REPORT/COMPLIANCE WITH
SECTION 218.415, FLORIDA STATUTES	32

REPORT OF INDEPENDENT AUDITORS

To the Board of Supervisors
Renaissance Commons Community Development District Palm Beach County, Florida

Report on the Financial Statements
We have audited the accompanying financial statements of Renaissance Commons Community Development District as of and for the year ended September 30, 2019, and the related notes to financial statements, which collectively comprise the District’s basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit.  We conducted our 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
Renaissance Commons 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 the General Fund of Renaissance Commons Community Development District as of September 30, 2019, and the respective changes in financial position and the budgetary comparison for the General Fund for the year then ended in conformity with accounting principles generally accepted in the United States of America.

Other Matters

Required Supplementary Information

Governmental accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures 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 Information

The Statement of Changes in Assets and Liabilities – Agency Funds is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements in accordance with auditing standards generally accepted in the United states of America. In our opinion the statement named above is fairly stated, in all material respects, in relation to the basic financial statements as a whole.

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Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued a report dated June 26, 2020 on our consideration of the District’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations and contracts.

The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Renaissance Commons Community Development District’s internal control over financial reporting and compliance.

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

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Management’s discussion and analysis of Renaissance Commons Community Development District’s (the “District”) financial performance provides an objective and easily readable analysis of the District’s financial activities. The analysis provides summary financial information for the District and should be read in conjunction with the District’s financial statements.

OVERVIEW OF THE FINANCIAL STATEMENTS

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

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

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

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

Fund financial statements present financial information for governmental funds. These statements provide financial information for the major and other governmental 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 agency fund financial statement includes a statement of fiduciary net position. These are funds held by the District on behalf of others and may not be used in governmental activities.

The government-wide financial statements and the fund financial statements provide different pictures of the District. The government-wide financial statements provide an overall picture of the District’s financial standing. These statements are comparable to private-sector companies and give a good understanding of the District’s overall financial health and how the District paid for the various activities, or functions, provided by the District. All assets of the District,  including land improvements and infrastructure are reported in the statement of net position. All liabilities obligated but not paid by the District, 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 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 and capital assets are some of the items included in the notes to financial statements.

 Financial Highlights

The following are the highlights of financial activity for the period ended September 30, 2019.

The District’s total assets exceeded total liabilities by $8,379,855 (net position).	Net investment in capital assets was $8,319,540.

Governmental activities revenues totaled $78,774 while governmental activities expenses totaled $504,141.

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	
	Government 2019	al Activities
2018

$	49,356	

Current assets	
$	69,780		
Capital assets	 		8,319,540 	 		8,767,336 
 		8,816,692 

 		11,470 

8,767,336	
Total Assets	 		8,389,320 		
Current Liabilities	 		9,465 		
Net investment in capital assets	8,319,540		
Net position - unrestricted

Total Net Position	 	 		60,315 

$	8,379,855 	 		37,886 

 $	8,805,222 	

The increase in current assets and unrestricted net position is primarily the result of revenues in excess of expenditures at the fund level.

The decrease in capital assets and net investment in capital assets is related to current year depreciation.

OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)

 Financial Analysis of the District (Continued)

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

Change in Net Position	
	Government 2019	al Activities
2018	
Governmental Revenues			
Charges for services	$	78,510	$	85,537	
Investment earnings	264	533	
Miscellaneous	 		- 	 		- 
 		86,070 	
Total Revenues	 		78,774 		
Expenses			
General government	56,345	66,455	
Physical environment	 		447,796 	 		447,796 
 		514,251 	
Total Expenses	 		504,141 		
Change in Net Position	(425,367)	(428,181)	
Net Position - Beginning of Year

Net Position - End of Year	 	 		8,805,222 

$	8,379,855 	 		9,233,403 

 $	8,805,222 	

The decrease in charges for services was related to an anticipated decrease in special assessments.

The decrease in general government is the result of lower assessment fees and tax roll fees in the current year.

OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)

 Capital Assets Activity

The following schedule provides a summary of the District’s capital assets as of September 30, 2019 and 2018.

Description	Governmental Activities

2019	2018	

Infrastructure		
$ 13,431,878		
$	
13,431,878	
Less: accumulated depreciation Total Capital Assets, Net	
 	    	(5,112,338) 
$	8,319,540 	
 	 	
$		(4,664,542) 
8,767,336 	

Depreciation of $447,796 was the only capital asset activity for the year.

 General Fund Budgetary Highlights

The original budget for the General Fund was not amended.

Budgeted expenditures exceeded actual expenditures as engineering fees, legal fees and insurance expenditures were less than anticipated.

 Economic Factors and Next Year’s Budget

Renaissance Commons 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 2020.

 Request for Information

The financial report is designed to provide a general overview of Renaissance Commons 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 Renaissance Commons Community Development District, Special District Services, Inc., 2501A Burns Road, Palm Beach Gardens, Florida 33410.

STATEMENT OF NET POSITION
September 30, 2019

Governmental Activities
Assets
Current Assets
Cash and equivalents	$	69,284	
Accounts receivable	496	
Total Current Assets	69,780	
Non-Current Assets
Capital assets being depreciated:
Infrastructure	13,431,878	
Less: accumulated depreciation	(5,112,338)	
Total Non-Current Assets	8,319,540	
Total Assets	8,389,320	

Liabilities
Current Liabilities
Accounts payable	9,465

Net Position
Net investment in capital assets	8,319,540	
Unrestricted	60,315	
Total Net Position	$	8,379,855	

See accompanying notes to financial statements.

STATEMENT OF ACTIVITIES
For the Year Ended September 30, 2019

Net (Expense)	
Revenues and	
			Program	Changes in	
			Revenues	Net Position	
	Charges for	Governmental	
Functions/Programs		Expenses	Services			Activities	
General government	$	(56,345)	$	78,510		$	22,165	
Physical environment	(447,796)	-			(447,796)	
Total Governmental Activities	$	(504,141)	$	78,510			(425,631)	
		
General Revenues					
		Investment earnings				264	
		
Change in Net Position				
(425,367)	
	Net Position - October 1, 2018
Net Position - September 30, 2019			8,805,222	
			$	8,379,855	

See accompanying notes to financial statements.

BALANCE SHEET - GOVERNMENTAL FUNDS
September 30, 2019

General	
	 		Fund		
Assets			
Cash and equivalents	$	69,284	
Accounts receivable		496	

Total Assets	
$	
69,780	

Liabilities and Fund Balances			
Liabilities			
Accounts payable	$	9,465	

Fund Balances:			
Unassigned

Total Liabilities and Fund Balances		60,315	
	
$	
69,780	

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

Total Governmental Fund Balances	$	60,315	
Capital assets being depreciated, infrastructure, $13,431,878 net of accumulated depreciation, $(5,112,338), used in governmental activities are not financial resources and; therefore, are not reported at the governmental fund level.		

8,319,540	

Net Position of Governmental Activities	
$	
8,379,855	

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

Revenues
Special assessments Investment earnings
Total Revenues	

$	General Fund

78,510
264
78,774	

Expenditures Current:
General government		

56,345	

Net change in fund balances		
22,429	
Fund Balances - October 1, 2018		37,886	

Fund Balances - September 30, 2019	
$	
60,315	

RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
For the Year Ended September 30, 2019

Net Change in Fund Balances - Total Governmental Funds	$	22,429	
Amounts reported for Governmental Activities in the Statement of Activities are different because:			
Governmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of those assets is allocated over their estimated useful lives as depreciation. This is the amount of depreciation in the current period.		

(447,796)	

Change in Net Position of Governmental Activities	
$	
(425,367)	

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL -
GENERAL FUND
For the Year Ended September 30, 2019

										Variance with	
										Final Budget	
	Original			Final					Positive	
	Budget	Budget			Actual		(Negative)	
Revenues											
Special assessments	$	77,916		$	77,916		$	78,510		$	594	
Investment earnings		360			360			264		(96)	
Total Revenues		78,276			78,276			78,774		498	

Expenditures											
Current											
General government		70,326			70,326			56,345		13,981

14,479	

Net change in fund balances		
7,950			
7,950			
22,429			
Fund Balances - October 1, 2018

Fund Balances - September 30, 2019	

$	-

7,950		

$	-

7,950		

$	37,886

60,315		37,886

$	52,365	

See accompanying notes to financial statements.

STATEMENT OF FIDUCIARY NET POSITION - AGENCY FUNDS
September 30, 2019

Assets			
Cash	$	40,553	
Investments		1,641,058	
Due from other governments		5,360	
Total Assets	$	1,686,971	

Liabilities			
Agency funds on hand	$	1,686,971	

See accompanying notes to financial statements.

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The financial statements of Renaissance Commons 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 March 15, 2005, by the City of Boynton Beach Ordinance 05-018, pursuant to 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 authorized to issue bonds for the purpose, among others, of financing, funding, planning, establishing, acquiring, constructing or re-constructing, enlarging or extending, equipping, operating and maintaining water management, water supply, sewer and waste water management, bridges or culverts, district roads, landscaping, street lights and other basic infrastructure projects within or without the boundaries of the Renaissance Commons Community Development District. The District is governed by a five-member Board of Supervisors, who are elected at large by qualified electors of the District. The District operates within the criteria established by Chapter 190.

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

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

Measurement Focus and Basis of Accounting

The basic financial statements of the District are composed of the following:

Government-wide financial statements

Fund financial statements

Notes to financial statements

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Measurement Focus and Basis of Accounting (Continued)

Government-wide Financial Statements

Government-wide financial statements report all non-fiduciary information about the reporting government as a whole. These statements include all the governmental activities of the primary government. The effect of interfund activity has been removed from these statements.

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

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

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.

Governmental Funds

The District 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 classifications include non-spendable, restricted, committed, assigned and unassigned.

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

2. Measurement Focus and Basis of Accounting (Continued)

b. Fund Financial Statements (Continued) Governmental Funds (Continued)
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 constitution, external resource providers, or through enabling legislation.

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

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

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

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 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.

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Measurement Focus and Basis of Accounting (Continued)

b. Fund Financial Statements (Continued) Governmental Funds (Continued)
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.

The District uses a 90 day window for recognition of revenues received. There is no use of significant estimates due to the nature of the revenues.

Amounts expended to acquire capital assets are recorded as expenditures in the year that resources are 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.

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.

Agency Fund

 The Special Assessment Debt Service Agency Fund –  This fund  accounts for  the debt service activity of the Special Assessment Bonds, Series 2005A which were issued to finance certain improvements of the District, and the Senior Special Assessment Revenue Refunding Bonds Series 2017A-1 and Subordinate Special Assessment Revenue Refunding Bonds Series 2017A-2 which were issued to refund the Series 2005A Bonds, and reflects the fiduciary nature of its relationship to the bondholders.

Non-current Governmental Assets/Liabilities

GASB Statement 34 requires that non-current governmental assets, such as land, buildings, infrastructure and equipment, and non-current governmental liabilities, such as general obligation bonds, capital leases and accrued compensated absences, be reported in the governmental activities column in the government-wide Statement of Net Position.

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Assets, Liabilities and Net Position or Equity

Cash and Investments

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

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

Direct obligations of the United States Treasury;

The Local Government Surplus Funds Trust or any intergovernmental investment pool authorized pursuant to the Florida Interlocal Cooperative Act of 1969;

Interest-bearing time deposits or savings accounts in authorized qualified public depositories;

Securities and Exchange Commission, registered money market funds with the highest credit quality rating from a nationally recognized rating agency.

Restricted Assets

Certain net position of the District are 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.

Capital Assets

Capital assets, which include infrastructure, are reported in the governmental activities column.

The District defines capital assets as assets with an initial, individual cost of $1,000 or more and an estimated useful life in excess of one year. The valuation basis for  all assets is historical cost.

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

4. Assets, Liabilities and Net Position or Equity (Continued)

Capital Assets (Continued)

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

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

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

Infrastructure	30 years

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

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

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

“Total fund balances” of the District’s general fund, $60,315, differs from “net position” of governmental activities, $8,379,855, 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 below.

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 (infrastructure that is to be used in governmental activities) are purchased or constructed, the cost of those assets are reported as expenditures in governmental funds. However, the Statement of Net Position included those capital assets among the assets of the District.

Infrastructure	$	13,431,878	
Less: accumulated depreciation	 			(5,112,338)	
Total	 $	8,319,540 	

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

The “net change in fund balances” for the general fund, $22,429, differs from the “change in net position” for governmental activities, $(425,367), reported in the Statement of Activities. The differences arise primarily from the long-term economic focus of the Statement of Activities versus the current financial resources focus of the governmental funds. The effect of the differences is illustrated below.
 Capital related items

When capital assets that are to be used in governmental activities are purchased, constructed or depreciated, the resources expended for those assets are reported as expenditures in governmental funds.

Depreciation	$	(447,796)

NOTE C – CASH AND INVESTMENTS

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

 Custodial Credit Risk – Deposits

Custodial credit risk is the risk that in the event of a bank failure, the District's deposits may not be returned to it. The District does not have a formal deposit policy for custodial credit risk, however, they follow the provisions of Chapter 280, Florida Statutes regarding deposits and investments. As of September 30, 2019 the District's bank balance was $81,200 and the carrying value was $69,284. Exposure to custodial credit risk was as follows. The District maintains all deposits in a qualified public depository in accordance with the provisions of Chapter 280, Florida Statutes, which means that all deposits are fully insured by Federal Depositors Insurance or collateralized under Chapter 280, Florida Statutes.

As of September 30, 2019, the District’s Agency Funds had $1,641,058 invested in U.S. Bank Managed Money Market.

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 use the best information available under the circumstances which includes the District's own data in measuring unobservable inputs.

The investment in U.S. Bank Managed Money Market 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 treasury funds, commercial paper, and government loans are limited by state statutory requirements and bond compliance. The District has no investment policy that would further limit its investment choices.

 Concentration of Credit Risk

The District places no limit on the amount it may invest in any one investment. The investments in US Bank Managed Money Market are 100% of the District’s total investments.

The types of deposits and investments and their level of risk exposure as of September 30, 2019 were typical of these items during the fiscal year then ended. The District considers any decline in fair value for certain investments to be temporary.

NOTE D – RISK MANAGEMENT

The government 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 E – ECONOMIC DEPENDENCY AND RELATED PARTIES

A substantial portion of the District’s activity is dependent upon the continued involvement of the developers, the loss of which could have a materially adverse effect on the District. At September 30, 2019, the developers owned or controlled a large portion of the assessable property located within District boundaries. Several members of the Board of Supervisors are employed by the developer or its affiliates at September 30, 2019.

NOTE F – CAPITAL ASSETS
Capital Asset activity for the period ended September 30, 2019 was as follows:

Balance	Balance
     10/1/2018	 Additions       Deletions        9/30/2019	
 Governmental Activities:
Capital assets, being depreciated:
Infrastructure	 $ 13,431,878  $	-   $	- $ 13,431,878 
Total Capital Assets, Being Depreciated	 13,431,878 	- 	- 13,431,878 

Less: accumulated depreciation for:
Infrastructure	 (4,664,542)	(447,796)	-	(5,112,338)

Total Capital Assets Depreciated, Net

 	   8,767,336	(447,796)

-	8,319,540

Governmental Activities Capital Assets, Net	 $	8,767,336   $ (447,796) $	- $ 8,319,540 

Depreciation of $447,796 was allocated to physical environment.
NOTE G – AGENCY FUND SPECIAL ASSESSMENT BONDS
In a prior year, the District, acting as agent for the property owners, issued $19,000,000 Renaissance Commons Community Development District Special Assessment Bonds, Series 2005A (the “Bonds”) pursuant to the Act and a Trust Indenture (the “Indenture”) dated as of December 1, 2005, by and between the District and Wachovia Bank, National Association (the “Trustee”). Subsequently, Wachovia Bank sold the Trust Division to US Bank (the current “Trustee”).
The District is not obligated in any manner for the Bonds, which constitute special assessment debt, and is in no way liable for repayment but is acting only as an agent for property owners in collecting the assessments and forwarding the collection to the paying agent for the bondholders.
The Bonds were issued in order to finance a portion of the cost of the Series 2005 Project (the “Project”), provide a debt service reserve fund, and to pay capitalized interest and the cost of issuance of the Bonds.
The Project consisted of the acquisition, construction, installation and equipping of certain roadway improvements, a stormwater management system, and a water and sewer system with a total cost of $16,525,996.
On March 17, 2017, the District issued a Series 2017A-1 Series Special Assessment Refunding Bonds for $12,499,000 and Series 2017A-2 Subordinate Special Assessment Refunding Bonds for $2,978,000 to refund the Series 2005A Bonds. The balance outstanding at September 30, 2019 was $9,891,000.
In November 2019, the District made prepayments on the Series 2017A-1 bonds of $85,000.

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SUPPLEMENTARY INFORMATION

Renaissance Commons Community Development District STATEMENT OF CHANGES IN ASSETS
AND LIABILITIES - AGENCY FUNDS
For the Year Ended September 30, 2019

Beginning									Ending	
		Balance	Additions	Deletions			Balance	
Assets												
Cash and investments	$	5,077,724		$	995,197		$	4,391,310		$	1,681,611	
Due from other governments		6,477			5,360			6,477			5,360	
Total Assets	$	5,084,201		$	1,000,557		$	4,397,787		$	1,686,971	

Liabilities												
Agency funds on hand	$	5,084,201		$	1,000,557		$	4,397,787		$	1,686,971	

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

To the Board of Supervisors
Renaissance Commons Community Development District Palm Beach 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 Renaissance Commons Community Development District, as of and for the year ended September 30, 2019, and the related notes to the financial statements, and have issued our report thereon dated June 26, 2020.

Internal Control Over Financial Reporting

In planning and performing our audit, we considered Renaissance Commons Community Development District's internal control over financial reporting to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of Renaissance Commons Community Development District’s internal control. Accordingly, we do not express an opinion on the effectiveness of Renaissance Commons Community Development District's internal control over financial reporting.

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

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

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Board of Supervisors
Renaissance Commons Community Development District

Compliance and Other Matters

As part of obtaining reasonable assurance about whether Renaissance Commons 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 June 26, 2020

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MANAGEMENT LETTER

To the Board of Supervisors
Renaissance Commons Community Development District Palm Beach County, Florida

Report on the Financial Statements

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

Auditor’s Responsibility

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

Other Reporting Requirements

We have issued our Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards and our Independent Auditor’s Report on an examination conducted in accordance with AICPA Professionals Standards, AT-C Section 315, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports, which are dated June 26, 2020, should be considered in conjunction with this management letter.

Prior Audit Findings

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

Financial Condition and Management

Section 10.554(1)(i)5.a. and 10.556(7), Rules of the Auditor General, require us to apply appropriate procedures and communicate the results of our determination as to whether or not Renaissance Commons 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 Renaissance Commons Community Development District did not meet any of the conditions described in Section 218.503(1) Florida Statutes.

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To the Board of Supervisors
Renaissance Commons Community Development District

Pursuant to Sections 10.554(1)(i)5.c. and 10.556(8), Rules of the Auditor General, we applied financial condition assessment procedures for Renaissance Commons Community Development District. It is management’s responsibility to monitor the Renaissance Commons 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 as of September 30, 2019.

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

Additional Matters

Section 10.554(1)(i)3., Rules of the Auditor General, requires us to communicate noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but warrants the attention of those charged with governance. In connection with our audit, we did not note any such findings.

Purpose of this Letter

Our Management Letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, the Board of Supervisors, and applicable management, and is not intended to be and should not be used by anyone other than these specified parties.

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

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

To the Board of Supervisors
Renaissance Commons Community Development District Palm Beach County, Florida

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

In our opinion, Renaissance Commons Community Development District complied, in all material respects, with the aforementioned requirements during the year ended September 30, 2019.

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

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