Durbin Crossing Community Development District

ANNUAL FINANCIAL REPORT

September 30, 2021

Durbin Crossing Community Development District ANNUAL FINANCIAL REPORT
Fiscal Year Ended September 30, 2021

TABLE OF CONTENTS

Page Number

REPORT OF INDEPENDENT AUDITORS	1-2
MANAGEMENT’S DISCUSSION AND ANALYSIS	3-8
BASIC FINANCIAL STATEMENTS:
Government-wide Financial Statements
Statement of Net Position	9
Statement of Activities	10
Fund Financial Statements:
Balance Sheet – Governmental Funds	11
Reconciliation of Total Governmental Fund Balances to Net
Position of Governmental Activities	12
Statement of Revenues, Expenditures and Changes in Fund
Balances – Governmental Funds	13
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the
Statement of Activities	14
Statement of Revenues, Expenditures and Changes in Fund
Balances – Budget and Actual – General Fund	15
Notes to Financial Statements	16-30
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	33-36
INDEPENDENT ACCOUNTANTS’ REPORT/COMPLIANCE WITH
SECTION 218.415, FLORIDA STATUTES	37

REPORT OF INDEPENDENT AUDITORS

To the Board of Supervisors
Durbin Crossing Community Development District St. Johns County, Florida

Report on the Financial Statements

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

Management’s Responsibility for the Financial Statements

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

Auditor’s Responsibility

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

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

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

- 1 -

To the Board of Supervisors
Durbin Crossing Community Development District
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities and each major fund of Durbin Crossing Community Development District, as of September 30, 2021, and the respective changes in financial position and the budgetary comparison for the General Fund for the year then ended in conformity with accounting principles generally accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management 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 the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued a report dated June 30, 2022 on our consideration of the District’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations and contracts. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Durbin Crossing Community Development District’s internal control over financial reporting and compliance.

Berger, Toombs, Elam, Gaines & Frank Certified Public Accountants PL
Fort Pierce, Florida June 30, 2022

- 2 -

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

OVERVIEW OF THE FINANCIAL STATEMENTS

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

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

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

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

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

OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)

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

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

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

Financial Highlights

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

The District’s total assets were exceeded by total liabilities by $(24,501,768) (net position). Unrestricted net position for governmental activities was $(21,042,236). Net investment in capital assets was $(5,367,865). Governmental activities restricted net position was $1,908,333.

Governmental activities revenues totaled $5,383,477 while governmental activities expenses totaled $3,955,113.

OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)

Financial Analysis of the District

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

Net Position

Governmental Activities
	2021		2020	
Current assets	$	674,049		$	637,922	
Restricted assets	3,756,937		3,469,700	
Capital assets		6,943,897 			7,404,663 	
Total Assets		11,374,883 			11,512,285 	
Current liabilities	2,435,662		2,276,255	
Non-current liabilities		33,440,989 			35,166,162 	
Total Liabilities		35,876,651 			37,442,417 	
Net Position				
Net investment in capital assets	(5,367,865)		(4,907,099)	
Restricted	1,908,333		1,970,729	
Unrestricted		(21,042,236)			(22,993,762)	
Total Net Position	 $ (24,501,768)		 $ (25,930,132)	

The decrease in capital assets is the result of current year depreciation.

The decrease in non-current liabilities is due to the principal payments on the bonds in the current year.

The increase in net position is related to current year revenues in excess of current year expenses.

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

	2021	 	2020	
Program Revenues
Charges for services	$	5,298,782	$	5,131,242	
Operating grants and contributions	70,863	43,741	
General Revenues Investment earnings	
1,936	
15,991	
Miscellaneous		11,896 		8,918 	
Total Revenues		5,383,477 		5,199,892 	

Expenses
General government	

163,873	

184,090	
Physical environment	1,374,219	1,258,718	
Culture/recreation	1,015,819	953,791	
Interest and other charges		1,401,202 		1,453,904 	
Total Expenses		3,955,113 		3,850,503 	
Change in Net Position	1,428,364	1,349,389	
Net Position - Beginning of Year		(25,930,132)		(27,279,521)	
Net Position - End of Year	 $ (24,501,768)	$  (25,930,132)	

The increase in charges for services is the result of the prepayments received in the current year.

The decrease in general government is related to the decrease in legal fees in the current year.

The increase in physical environment is related to increased landscape maintenance costs in the current year.

The increase in culture/recreation was related to the increase in reclaimed water 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, 2021 and 2020.

Governmental Activities
Description	2021	2020

Buildings	$	6,741,826	$	6,741,826	
Improvements other than buildings	5,509,669	5,509,669	
Equipment	60,267	60,267	
Accumulated depreciation		(5,367,865)		(4,907,099)	

Total Capital Assets (Net)

 $	6,943,897 

 $	7,404,663 

 	

The activity for the year consisted of $460,766 in depreciation.

General Fund Budgetary Highlights

Budgeted expenditures were exceeded by actual expenditures because irrigation repair expenditures were more than anticipated.

The September 30, 2021 budget was amended for expenditures that were more than originally anticipated.

Debt Management

Governmental Activities debt includes the following:

In February 2017, the District issued $37,825,000 Series 2017A-1 Senior Special Assessment Refunding Bonds and $4,580,000 2017A-2 Subordinate Special Assessment Refunding Bonds. These bonds were issued to refund and redeem the outstanding Series 2005A Special Assessment Bonds. The balance outstanding of the Series 2017A-1 and Series 2017A-2 Bonds at September 30, 2021 was $31,720,000 and $3,705,000, respectivley.

OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)

Economic Factors and Next Year’s Budget

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

Request for Information

The financial report is designed to provide a general overview of Durbin Crossing 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 Durbin Crossing Community Development District, Governmental Management Services, Inc., 475 West Town Place, Suite 114, St. Augustine, Florida 32092.

Durbin Crossing Community Development District	
STATEMENT OF NET POSITION	
September 30, 2021	

ASSETS	
Current Assets	
Cash	
Investments	
Prepaid expenses	
Deposits	
Due from other	
Assessments receivable	
Total Current Assets	
Non-current Assets	
Restricted assets	
Investments	
Capital assets	
Assets being depreciated	
Buildings	
Improvements other than buildings	
Equipment	
Less: accumulated depreciation	
Total Non-current Assets	
Total Assets	

Governmental	
Activities	

$	403,674	
181,171	
41,735	
200	
1,091	
	46,178 	
	674,049 	

3,756,937	

6,741,826	
5,509,669	
60,267	
	(5,367,865)	
	10,700,834 	
	11,374,883 	

LIABILITIES		
Current Liabilities		
Accounts payable and accrued expenses	188,331	
Accrued interest	567,331	
Bonds payable - current portion		1,680,000 	
Total Current Liabilities		2,435,662 	
Non-current liabilities		
Bonds payable		33,440,989 	
Total Liabilities		35,876,651 	

NET POSITION		
Net investment in capital assets	(5,367,865)	
Restricted for debt service	444,324	
Restricted for capital projects	1,464,009	
Unrestricted		(21,042,236)	
Total Net Position	 $	(24,501,768)	

See accompanying notes to financial statements.

Net (Expense)	
Revenues and	
Changes in	
Net Position	

Governmental Activities	

Program	
Revenues	

Charges for Services	Operating Grants and Contributions	

$	(838)	
(298,285)	
(217,913)	
	1,931,568 	
1,414,532	

Durbin Crossing Community Development District	
STATEMENT OF ACTIVITIES	
For the Year Ended September 30, 2021	

General revenues:	
Investment earnings	
Miscellaneous revenues	
Total General Revenues	

1,936	
11,896	
	13,832 	

Functions/Programs	Expenses	
Governmental Activities		
General government	$	(163,873)	
Physical environment	(1,374,219)	
Culture/recreation	(1,015,819)	
Interest and other charges		(1,401,202)	
Total Governmental Activities	 $ (3,955,113)	

$	163,035	
1,075,934	
727,043	
	3,332,770 	
 $ 5,298,782 	

$	-	
-	
70,863	
	- 	
 $	70,863 	

Change in Net Position		1,428,364 

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

	(25,930,132)	
 $ (24,501,768)	

Durbin Crossing Community Development District	
BALANCE SHEET -	
GOVERNMENTAL FUNDS	
September 30, 2021	

Total	
Governmental	
	Funds		
$	403,674	
181,171	
46,178	
4,183	
41,735	
200	
1,091	

Debt	
   Service		
$	-	
-	
28,304	
-	
-	
-	
-	

Capital	
  Projects		
$  218,289	
-	
-	
-	
-	
-	
-	

ASSETS	
Cash	
Investments, at fair value	
Assessments receivable	
Due from other funds	
Prepaid items	
Deposits	
Due from other	
Restricted assets	
Investments, at fair value	
Total Assets	

  General		
$ 185,385	
181,171	
17,874	
4,183	
41,735	
200	
1,091	

-		2,488,814	1,268,123		3,756,937	
 $ 431,639 	 $ 	2,517,118 	 $ 1,486,412 	 $		4,435,169 	

LIABILITIES AND FUND BALANCES

LIABILITIES	
Accounts payable and accrued expenses	
Due to other funds	
Total Liabilities	

$ 170,111	$	-	$	18,220	$	188,331	
-	-	4,183	4,183	
170,111	-	22,403	192,514	

   

FUND BALANCES	
Nonspendable	
Prepaid items	
Restricted	
Debt service	
Capital projects	
Unassigned	

41,935	-	-	41,935

-	2,517,118	-	2,517,118	
-	-	1,464,009	1,464,009	
219,593	-	-	219,593	

Total Fund Balances	261,528		2,517,118		1,464,009		4,242,655	

Total Liabilities and Fund Balances	
$ 431,639		
$  2,517,118		
$1,486,412		
$	4,435,169	

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

Total Governmental Fund Balances

Amounts reported for governmental activities in the statement of net position	
are different because:	

$	4,242,655

Capital assets being depreciated, buildings, $6,741,826, improvements other	
than buildings, $5,509,669, and equipment, $60,267, net of accumulated	
depreciation, $(5,367,865), used in governmental activities are not current financial	
resources and are not reported at the fund level.	

6,943,897

Long-term liabilities, such as bonds payable, $(35,425,000), net of bond discounts,		
net, $304,011, are not due and payable in the current period, and therefore,	(35,120,989)	
are not reported at the fund level.		

Accrued interest expense for long-term debt is not a current financial use,		
and therefore, is not reported at the funds statement level.	(567,331)	

Net Position of Governmental Activities	 $ (24,501,768)

Durbin Crossing Community Development District	
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -	
GOVERNMENTAL FUNDS	
For the Year Ended September 30, 2021	

(78,502)	223,871	

Revenues	
Special assessments	
Impact fees	
Charges for services	
Miscellaneous	
Investment earnings	
Total Revenues	

$ 1,960,336	
-	
5,676	
11,896	
       36 	
   1,977,944 	

$ 3,332,770	
-	
-	
-	
      145 	
   3,332,915 	

$	-	
70,863	
-	
-	
     1,755 	
    72,618 	

$ 5,293,106	
70,863	
5,676	
11,896	
     1,936 	
   5,383,477 	

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

163,873	
1,081,462	
730,778	

-	
-	
-	

-	
117,032	
-	

163,873	
1,198,494	
730,778	

Total	
Governmental	
	Funds		

Debt	
   Service		

Capital	
  Projects		

	General	

-	
        - 	
   1,976,113 	

1,705,000	
   1,404,044 	
   3,109,044 	

-	
        - 	
    117,032 	

1,705,000	
   1,404,044 	
   5,202,189 	

Revenues over/(under) expenditures		1,831  	223,871  	(44,414)		181,288 

Other Financing Sources/(Uses)	
Transfers in	
Transfers out	

-	
    (80,333)	

-	
        - 	

80,333	
        - 	

80,333	
    (80,333)	

Total Other Financing Sources/(Uses)	(80,333)		-		80,333		-	

Net change in fund balances					
35,919		
181,288	
Fund Balances - October 1, 2020	340,030		2,293,247		1,428,090		4,061,367	

Fund Balances - September 30, 2021	
 $	261,528 		
 $ 2,517,118 		
 $ 1,464,009 		
 $ 4,242,655 	

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

Net Change in Fund Balances - Total Governmental Funds

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

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

At the fund level bond discounts are reported as expenditures. However, at the	
government-wide level, the cost is allocated as amortization expense.	

$	181,288

Governmental funds report capital outlays as expenditures, however	
in the Statement of Activities, the cost of those assets is allocated over	
their estimated useful lives as depreciation. This is the amount that of	
depreciation in the current period.	(460,766)	

1,705,000

(19,827)

In the Statement of Activities, interest is accrued on outstanding bonds; whereas		
in governmental funds, interest expenditures are reported when due. This is		
the net amount between the prior year and the current year accruals.		22,669 	

Change in Net Position of Governmental Activities	 $	1,428,364 

Durbin Crossing Community Development District	
STATEMENT OF REVENUES, EXPENDITURES AND	
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL	
GENERAL FUND	
For the Year Ended September 30, 2020	

Variance	
Favorable	
(Unfavorable)	

Original	Final	
Budget	Budget	Actual	

Other Financing Sources/(Uses)	
Transfers out	

-	88,523	340,030	251,507	

$	-	
$	-	
$	261,528	
$	261,528	

Revenues	
Special assessments	
Charges for services	
Miscellaneous	
Investment earnings	
Total Revenues	

$ 1,934,606	
$ 1,934,606	
$ 1,960,336	
$	25,730	
-	-	5,676	5,676	
22,500	22,500	11,896	(10,604)	
1,300	1,300	36	(1,264)	
1,958,406	1,958,406	1,977,944	19,538	

Expenditures	
Current	
General government	
Physical environment	
Culture/recreation	
Total Expenditures	

181,722	169,219	163,873	5,346	
998,312	1,070,313	1,081,462	(11,149)	
698,039	727,064	730,778	(3,714)	
1,878,073	1,966,596	1,976,113	(9,517)	

Revenues over/(under) expenditures	80,333		(8,190)		1,831		(10,021)	

(80,333)		

(80,333)		

(80,333)		

-	
Net change in fund balances Fund Balances - October 1, 2020	
-		
(88,523)		
(78,502)		
10,021	

Fund Balances - September 30, 2021	

		

		

		

	

NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The financial statements of Durbin Crossing 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 November 5, 2003 by Rule 42MM-1 by the Florida Land and Water Adjudicatory Commission, 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 is elected by the qualified electors within the District for terms of four years. The District operates within the criteria established by Chapter 190, Florida Statutes. The Board has the responsibility for allocating and levying assessments, approving budgets, exercising control over facilities and properties, controlling the use of funds generated by the District, approving the hiring and firing of key personnel, 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 Durbin Crossing Community Development District (the primary government) as a stand-alone government.

Based upon the application of the above-mentioned criteria as set forth in principles established by the 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

NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

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 supported by 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 another 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.

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

2. Measurement Focus and Basis of Accounting (Continued)

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

The District has various policies governing the fund balance classifications.

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

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

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

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

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

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

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 another 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.

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Basis of Presentation (Continued)

Governmental Major Funds (Continued)

Debt Service Fund – Accounts for debt service requirements to retire certain capital improvement revenue bonds which were used to finance the construction of District infrastructure improvements 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 infrastructure improvements within the boundaries of the district, which are funded by bond proceeds. A lien is placed on all benefited land in relationship to the debt outstanding.

Non-current Governmental Assets/Liabilities

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

Assets, Liabilities and Net Position or Equity

Cash and Investments

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

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Assets, Liabilities and Net Position or Equity (Continued)

Cash and Investments (Continued)

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

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

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

Receivables and Payables

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

Restricted Assets

Certain assets of the District and a corresponding liability or portion of net position is classified as restricted assets 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 assets, qualified expenses are considered to be paid first from restricted net position and then from unrestricted net position.

Capital Assets

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

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

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

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Assets, Liabilities and Net Position or Equity (Continued)

Capital Assets (Continued)

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

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

Buildings	30 years
Improvements other than buildings	10-30 years Equipment		5-7 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 and debt service funds. As a result, deficits in the budget variance columns of the accompanying financial statements may occur.

Bond Discounts
Bond discounts are amortized over the life of the bonds.

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, $4,242,655, differs from “net position” of governmental activities, $(24,501,768), 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 on the next page.

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

Buildings	$	6,741,826	
Improvements other than buildings	5,509,669	
Equipment	60,267	
Accumulated depreciation		(5,367,865)	
Total	$	6,943,897 	
Long-term debt transactions		
Long-term liabilities applicable to the District’s	governmental activities are not due and	
payable in the current period and accordingly	are not reported as fund liabilities.	All	
liabilities (both current and long-term) are reported in the Statement of Net Position. Balances at September 30, 2021 were:

Bonds payable	$ (35,425,000)
Bond discount		304,011
Total	$ (35,120,989)

Accrued interest

Accrued liabilities in the Statement of Net Position differ from the amount reported in governmental funds due to accrued interest on bonds.

Accrued interest on bonds payable	$	(567,331)

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

The “net change in fund balances” for government funds, $181,288, differs from the “change in net position” for governmental activities, $1,428,364, 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 or constructed, the resources expended for those assets are reported as expenditures in governmental funds. However, in the Statement of Activities, the costs of those assets is allocated over their estimated useful lives and reported as depreciation. As a result, fund balances decreased by the amount of financial resources expended, whereas net position decreased by the amount of depreciation charged for the year.

Depreciation	$	(460,766)

Long-term debt transactions

Repayments of bond principal are reported as an expenditure in the governmental funds and, thus, have the effect of reducing fund balance because current financial resources have been used.

Debt principal payments	$	1,705,000

Some expenses reported in the Statement of Activities do not require the use of current financial resources, therefore, are not reported as expenditures in governmental funds.

Net change in accrued interest payable	$	22,669

Bond discount amortization	$	(19,827)

NOTE C – CASH AND INVESTMENTS

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

Custodial Credit Risk – Deposits

Custodial credit risk is the risk that in the event of a bank failure, the District's deposits may not be returned to it. The District does not have a formal deposit policy for custodial credit risk; however, they follow the provisions of Chapter 280, Florida Statutes regarding deposits and investments. As of September 30, 2021, the District's bank balance was $431,165 and carrying value was $403,674. Exposure to custodial credit risk was as follows. The District maintains all deposits in a qualified public depository in accordance with the provisions of Chapter 280, Florida Statutes, which means that all deposits are fully insured by Federal Depositors Insurance or collateralized under Chapter 280, Florida Statutes.

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

	Investment	  Maturities  Fair Value 

First American Treasury Obligation Fund	13 days*	$	83,924	
Florida PRIME	49 days*	1,184,199	
US Bank Money Market Fund	N/A		2,669,985 	
Total Investments		 $ 3,938,108 	
* Weighted Average Maturity			
The District categorizes its fair value measurements	within the fair value	hierarchy recently	
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 reliable and is based on quoted price for identical assets, or liabilities, in an active market. Level 2 uses significant other observable inputs when obtaining quoted prices for identical or similar assets, or liabilities, in markets that are not active. Level 3 is the least reliable and uses significant unobservable inputs that use the best information available under the circumstances, which includes the District’s own data in measuring unobservable inputs.

Based on the criteria in the preceding paragraph, the investments in First American Treasury Obligation Fund and US Bank Money Market Fund are Level 1 assets.

NOTE C – CASH AND INVESTMENTS (CONTINUED)

Investments

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, 2021, there were no redemption fees, maximum transaction amounts, or any other requirements 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 in government obligations, money market funds and the Florida PRIME investment pool are limited by state statutory requirements and bond compliance. The District has no investment policy that would further limit its investment choices. Florida PRIME is an authorized investment under Section 218.415, Florida Statutes. District had monies invested with Florida PRIME, at September 30, 2021. This investment met the requirements of a “2-7a like pool” as defined in Government Accounting Standards Board, Statement 31.As of September 30, 2021, the District's investment in Florida PRIME and the First American Treasury Obligation Fund were rated AAAm by Standard & Poor's. The District’s investment in Managed Money Markets was not rated.

Concentration of Credit Risk

The District places no limit on the amount it may invest. The investment in First American Treasury Obligations Fund represents 2% of the District’s total investments. The investment in Florida PRIME represents 30% of the District’s total investments. The investment in US Bank Money Market Fund represents 68% of the District’s total investments.

The types of deposits and investments and their level of risk exposure as of September 30, 2021 were typical of these items during the fiscal year then ended. The District considers any decline in fair value for certain investments to be temporary.

NOTE D – CAPITAL ASSETS

Capital Asset activity for the year ended September 30, 2021 was as follows:

Governmental Activities:
Capital assets, being depreciated:

Balance	Balance
October 1,	September, 30
	2020	  Additions	  Deletions  	2021	

Buildings	$ 6,741,826	$	-	$	-	$	6,741,826	
Improvements other than buildings	5,509,669	-	-	5,509,669	
Equipment		60,267 		- 		- 		60,267 	
Total Capital Assets Depreciated	  12,311,762 		- 		- 		12,311,762 	
Less accumulated depreciation for: Buildings	
(2,784,877)	
(224,728)	
-	
(3,009,605)	
Improvements other than buildings	(2,071,458)	(224,615)	-	(2,296,073)	
Equipment		(50,764)		(11,423)		- 		(62,187)	
Total Accumulated Depreciation	  (4,907,099)		(460,766)		- 		(5,367,865)	
Governmental Activities Capital Assets	 $ 7,404,663 	 $  (460,766)	 $	- 	 $	6,943,897 	

Depreciation of $175,725 was charged to physical environment and $285,041 was charged to culture and recreation.

NOTE E – LONG-TERM DEBT

The following is a summary of activity for long-term debt of the District for the year ended: Long-term debt at October 1, 2020			$	37,130,000 Principal payments		(1,705,000)
Long-term debt at September 30, 2021	$	35,425,000 Less: bond discount			(304,011)
Bonds payable, net at September 30, 2021	$	35,120,989

NOTE E – LONG-TERM DEBT (CONTINUED)		
Long-term debt for Governmental Activities is comprised of the following:		
Special Assessment Refunding Bonds		
$37,825,000 Series 2017A-1 Senior Special Assessment Refunding Bonds are due in annual principal installments beginning May 2018 maturing May 2037. Interest at various rates between 2% and 5% is due May and November beginning November 2017. Current portion is $1,500,000.	

$	31,720,000	
$4,580,000 Series 2017A-2 Subordinate Special Assessment Refunding Bonds are due in annual principal installments beginning May 2017 and maturing May 2037. Interest at various rates between 5% and 6.25% is due May and November beginning November 2017. Current portion is $150 ,000.	

	3,705,000	

Bonds Payable, Net	
$	35,425,000	

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

2022	$	1,680,000	$	1,361,594	$	3,041,594	
2023	1,720,000	1,317,319	3,037,319	
2024	1,775,000	1,268,050	3,043,050	
2025	1,830,000	1,215,025	3,045,025	
2026	1,890,000	1,156,125	3,046,125	
2027-2031	10,515,000	4,743,581	15,258,581	
2032-2036	13,055,000	2,301,938	15,356,938	
2037		2,960,000 		124,250 		3,084,250 	
Totals	 $	35,425,000 	 $	13,487,882 	 $	48,912,882 	

NOTE E – LONG-TERM DEBT (CONTINUED)

Summary of Significant Bonds Resolution Terms and Covenants Significant Bond Provisions
The Series 2017A-1 Bonds maturing after May 1, 2028, are subject to redemption at the option of the District prior to their maturity, in whole or in part, at any time after May 1, 2027 at a redemption price set forth in the Trust Indenture. The Series 2017A-2 Bonds are subject to redemption at the option of the District prior to their maturity, in whole or in part, at any time after May 1, 2027 at a redemption price set forth in the Trust Indenture. The Series 2017 Bonds are subject to extraordinary mandatory redemption prior to maturity in the manner determined by the Bond Registrar if certain events occurred as outlined in the Trust Indenture.

The Trust Indenture established certain amounts be maintained in a reserve account. In addition, the Trust Indenture has certain restrictions and requirements relating principally to the use of proceeds to pay for the infrastructure improvements and the procedures to be followed by the District on assessments to property owners. The District agrees to levy special assessments in annual amounts adequate to provide payment of debt service and to meet the reserve requirements.

Depository Funds

The bond resolution establishes certain funds and determines the order in which revenues are to be deposited into these funds. A description of the significant funds, including their purposes, is as follows:

Reserve Fund – The Series 2017A-1 Reserve Account was funded from the proceeds of the Series 2017A-1 Bonds in an amount equal to 50 percent of the maximum annual debt service of the Series 2017A-1 Bonds. The Series 2017A-2 Bond 1 Reserve Account was funded from the proceeds of the Series 2017A-2 Bond 1 Bonds in an amount equal to 50 percent of the maximum annual debt service of the Series 2017A-2 Bond 1 Bonds. The Series 2017A-2 Bond 2 Reserve Account was funded from the proceeds of the Series 2017A-2 Bond 2 Bonds in an amount equal to $40,000. Monies held in the reserve accounts will be used only for the purposes established in the Trust Indenture.

The following is a schedule of required reserve deposits as of September 30, 2021:

Reserve	Reserve
 Special Assessment Refunding Bonds			Balance	  Requirement 

Series 2017A-1 (Senior Bond)	$ 1,341,300	$ 1,334,150	
Series 2017A-2 (Subordinate Bond) Bond 1	$	132,425	$	131,313	
Series 2017A-2 (Subordinate Bond) Bond 2	$	40,000	$	40,000	

NOTE F – SPECIAL ASSESSMENT REVENUES

Assessments are non-ad valorem assessments on benefitted property within the District. Operating and Maintenance Assessments are based upon adopted budget and levied annually. Debt Service Assessments are levied when bonds are issued and collected annually. The District may collect assessments directly or utilize the uniform method of collection (Chapter 197.3632, Florida Statutes). Direct collected assessments are due as determined by annual assessment resolution adopted by the Board of Supervisors. Assessments collected under the uniform method are mailed by County Tax Collector on November 1 and due on or before March 31 of each year. Property owners may prepay a portion or all of the Debt Service Assessments on their property subject to various provisions in the bond documents.

Assessments and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period.

NOTE G – 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. These risks are covered by commercial insurance from independent third parties. There were no claims or settled claims from these risks for each of the past three years.

NOTE H – INTERFUND TRANSFERS
Interfund transfers for the year-ended September 30, 2020, consisted of the following:

Transfers Out
General
Transfers In	Fund
Capital Projects Fund	 $	80,333 

Interfund transfers between the General Fund and the Capital Projects Fund relates to budgeted capital reserve funding for the fiscal year.

NOTE I – SUBSEQUENT EVENT
In November 2021, the District made prepayments of $15,000, $5,000, and $195,000 on the Series 2017A-2 Term 1, Series 2017A-2 Term 2, and Series 2017A-1 Special Assessment Refunding Bonds, respectively.

In May 2022, the District made a prepayment of $95,000 on the Series 2017A-2 Term 2 Special Assessment Refunding Bonds.

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
Durbin Crossing Community Development District St. Johns 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 Durbin Crossing Community Development District, as of and for the year ended September 30, 2021, and the related notes to the financial statements, and have issued our report thereon dated June 30, 2022.

Internal Control Over Financial Reporting

In planning and performing our audit, we considered Durbin Crossing 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 Durbin Crossing Community Development District’s internal control. Accordingly, we do not express an opinion on the effectiveness of Durbin Crossing Community Development District's internal control.

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

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

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To the Board of Supervisors
Durbin Crossing Community Development District St. Johns County, Florida

Compliance and Other Matters

As part of obtaining reasonable assurance about whether Durbin Crossing 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 30, 2022

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MANAGEMENT LETTER

To the Board of Supervisors
Durbin Crossing Community Development District St. Johns County, Florida
Report on the Financial Statements

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

We conducted our audit in accordance with auditing standards generally accepted in the United States; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States and Chapter 10.550, Rules of the Florida Auditor General.
Other Reporting Requirements
We have issued our Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards and our Independent Auditor’s Report on an examination conducted in accordance with AICPA Professionals Standards, AT-C Section 315 regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in that report, which is dated June 30, 2022, should be considered in conjunction with this management letter.
Prior Audit Findings

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

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

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

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

Specific Information

The information provided below was provided by management and has not been audited; therefore, we do not express an opinion or provide any assurance on the information.
As required by Section 218.39(3)(c), Florida Statutes, and Section 10.554(1)(i)6, Rules of the Auditor General, the Durbin Crossing Community Development District reported:
The total number of district employees compensated in the last pay period of the District’s fiscal year: 5
The total number of independent contractors to whom nonemployee compensation was paid in the last month of the District’s fiscal year: 16
All compensation earned by or awarded to employees, whether paid or accrued, regardless of contingency: $9,604
All compensation earned by or awarded to nonemployee independent contractors, whether paid or accrued, regardless of contingency: $1,559,430
Each construction project with a total cost of at least $65,000 approved by the District that is scheduled to begin on or after October 1, 2020, together with the total expenditures for such project: The District did not have any construction projects.
A budget variance based on the budget adopted under Section 189.016(4), Florida Statutes, before the beginning of the fiscal year being reported if the District amends a final adopted budget under Section 189.016(6), Florida Statutes: The budget was amended, see below.
As required by Section 218.39(3)(c), Florida Statutes, and Section 10.554(1)(i)8, Rules of the Auditor General, the Durbin Crossing Community Development District reported:
The rate or rates of non-ad valorem special assessments imposed by the District: The General Fund, $446.26 - $1,226.98 and Debt Service, $564.27 - $2,164.34.
The amount of special assessments collected by or on behalf of the District: Total Special Assessments collected was $5,293,106.
The total amount of outstanding bonds issued by the District and the terms of such bonds: Series 2017 Bonds, $35,425,000. Maturing May 2037.

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To the Board of Supervisors
Durbin Crossing Community Development District

Original Budget	

Actual	Variance Positive
(Negative)	
Revenues
Special assessments	

$ 1,934,606		

$ 1,960,336		

$	25,730	
Charges for services	-		5,676		5,676	
Miscellaneous	22,500		11,896		(10,604)	
Investment earnings	1,300		36		(1,264)	
Total Revenues	1,958,406		1,977,944		19,538	

Expenditures						
Current						
General government	181,722		163,873		17,849	
Physical environment	998,312		1,081,462		(83,150)	
Culture/recreation	698,039		730,778		(32,739)	
Total Expenditures	1,878,073		1,976,113		(98,040)	

Revenues over/(under) expenditures	
80,333		
1,831		
78,502	

Other Financing Sources/(Uses) Transfers out	

(80,333)		

(80,333)		

-	

Net change in fund balances	
-	(78,502)	
(78,502)	
Fund Balances - October 1, 2020	-	340,030	340,030	

Fund Balances - September 30, 2021	 

$	-	$	261,528	

$	261,528	

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

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To the Board of Supervisors
Durbin Crossing Community Development District

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 30, 2022

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

To the Board of Supervisors
Durbin Crossing Community Development District St. Johns County, Florida

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

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

Berger, Toombs, Elam, Gaines & Frank Certified Public Accountants PL
Fort Pierce, Florida June 30, 2022

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