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Villages of Westport Community Development District
FINANCIAL STATEMENTS
September 30, 2018

CRI

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INGRAM
CPAs and Advisors
CRlcpa.com

REPORT
Independent Auditors' Report

FINANCIAL STATEMENTS

Villages of Westport Community Development District
Table of Contents September 30, 2018

1

Management's Discussion And Analysis (required supplemental information)	3
Basic Financial Statements
Government-Wide Financial Statements
Statement of Net Position	8
Statement of Activities	9
Fund Financial Statements
Balance Sheet - Governmental Funds	10
Reconciliation of the Balance Sheet of Governmental Funds to the Statement
of Net Position	11
Statement of Revenues, Expenditures and Changes in Fund Balances -
Governmental Funds	12
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balances of Governmental Funds to the Statement of Activities	13
Notes to Financial Statements	14
Required Supplemental Information (other than MD&A)
Budget to Actual Comparison Schedule - General Fund	24
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	25
Management Letter	27
Independent Accountants' Report on Compliance with Section 218.415 Florida Statutes	29

CRI

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INGRAM

Carr, Riggs & Ingram, LLC
500 Grand Boulevard
Suite 210
Miramar Beach, Florida 32550

CPAs and Advisors

INDEPENDENT AUDITORS' REPORT

To the Board of Supervisors
Villages of WestportCommunity Development District DuvalCount½Florida

Report on the Financial Statements

(850) 837-3141
(850) 654-4619 (fax)
CRlcpa.com

We have audited the accompanying financial statements of the governmental activities and each major fund of Villages of Westport Community Development District (hereinafter referred to as "District"), as of and for the year ended September 30, 2018, and the related notes to the financial statements, which collectively comprise the District's basic financial statements as listed in the table of contents.

Management's Responsibilityfor 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.

Auditors' Responsibility

Our responsibility is to express opinions 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 Auditing
Standards, issued by theComptroller 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 auditors' 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 opinions.

Opinions

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 the District as of September 30, 2018, and the respective changes in financial position for the year ·then ended in accordance with accounting principles generally accepted in the United States of America.

Other Matters

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Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the management's discussion and analysis and budgetary comparison information, as listed in the table of contents, 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 our report dated May 28, 2019, on our consideration of the District's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the District's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the District's internal control over financial reporting and compliance.

CARR, RIGGS & INGRAM, LLC
Miramar Beach, Florida May 28, 2019

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Management's Discussion And Analysis

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Villages of Westport Community Development District
]	Management's Discussion and Analysis
Our discussion and analysis of the Villages of Westport Community Development District's financial performance provides an overview of the District's financial activities for the fiscal year ended September 30, 2018. Please read it in conjunction with the District's financial statements, which begin on page 8.

FINANCIAL HIGHLIGHTS
At September 30, 2018, the liabilities of the District exceed its assets by approximately $3.8 million (deficit).
During the fiscal year ended September 30, 2018, the District incurred interest expenditures of approximately $654,000 and repaid $330,000 of outstanding long-term bond principal.
During the fiscal year ended September 30, 2018, the District conveyed approximately $2.5 million of capital assets to other governmental entities.

USING THE ANNUAL REPORT

This annual report consists of a series of financial statements. The Statement of Net Position and the Statement of Activities on pages 8 - 9 provide information about the activities of the District as a whole and present a longer-term view of the District's finances. Fund financial statements start on page 10. For governmental activities, these statements tell how these services were financed in the short-term as well as what remains for future spending. Fund financial statements also report the District's operations in more detail than the government-wide statements by providing information about the District's most significant funds.

Reportingthe District as a Whole

Our analysis of the District as a whole begins on page 4. One of the most important questions asked about the District's finances is, "Is the District as a whole better off or worse off as a result of the year's activities?" The Statement of Net Position and the Statement of Activities report information about the District as a whole and about its activities in a way that helps answer this question. These statements include all assets and liabilities using the accrual basis of accounting, which is similar to the accounting used by most private-sector companies. All of the current year's revenues and expenses are taken into account regardless of when cash is received or paid.

These two statements report the District's net position and related changes during the current year. You can think of the District's net position - the difference between assets and liabilities - as one way to measure the District's financial health, or financial position. Over time, increases or decreases in the District's net position is one indicator of whether its financial health is improving or deteriorating. You will need to consider other nonfinancial factors; however, such as changes in the District's assessment base and the condition of the District's infrastructure, to assess the overall health of the District.

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Villages of Westport Community Development District
Management's Discussion and Analysis

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Reporting the District's Most Significant Funds

Our analysis of the District's major funds begins on page 5. The fund financial statements begin on page 10 and provide detailed information about the most significant funds - not the District as a whole. Some funds are required to be established by State law and by bond covenants. All of the District's funds are governmental fund-types.
Governmental funds - All of the District's basic services are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at year­ end that are available for spending. The governmental fund statements provide a detailed short-term view of the District's general government operations and the basic services it provides. Governmental fund information helps you determine whether there are more or fewer financial resources that can be spent in the near future to finance the District's programs. We describe the relationship (or differences) between governmental activities and governmental funds in a reconciliation with the fund financial statements.

THE DISTRICT AS A WHOLE

The following table reflects the condensed Statement of Net Position and is compared to the prior year.

September 30,	2018	2017	Change	
Assets				
Current and other assets	$	1,524,912	$	1,491,855	$	33,057	
Capital assets, net	6,155,614	8,687,230	(2,531,616)	
Total assets	$	7,680,526	$	10,179,085	$	{2,498,559)	
Liabilities				
Current liabilities	$	611,153	$	615,416	$	(4,263)	
Other liabilities	10,855,000	11,195,000	(340,000)	
Total liabilities	 	11,466,153	11,810,416	(344,263)
Net position	
Net investment in capital assets	2,318,050	2,148,435	169,615	
Restricted for:				
Debt service	221,263	160,351	60,912	
Capital projects	203,263	115,892	87,371	
Unrestricted	(6,528,203)	(4,056,009)	(2,472,194)	
Total net position (deficit)	(3,785,627)	(1,631,331)	(2,154,296)
 Total liabilities and net position		$	7,680,526	$   10,179,085	$	{2,498,559) For more detailed information, see the accompanying Statement of Net Position.

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Villages of Westport Community Development District
]	Management's Discussion and Analysis
During the fiscal year ended September 30, 2018, total assets and liabilities decreased from the prior year approximately $2.5 million and $344,000, respectively. The decrease in assets is primarily a result of capital asset conveyances. The decrease in liabilities is largely the result of a principal payment on outstanding bonds.
The following schedule compares the Statement of Activities for the current and previous fiscal year.

Year ended September 30,	2018	2017	Change Revenues:
Program revenues:
Charges for services	$	1,360,352	$	1,456,559	$	(96,207) General revenues:
Interest and other revenues	1,029	8,433	(7,404)	
Total revenues	1,361,381	1,464,992	{103,611)	
Expenses:				
General government	113,494	108,694	4,800	
Maintenance and operations	203,906	150,954	52,952	
Asset conveyance	2,470,354		2,470,354	
Unallocated depreciation	81,655	68,404	13,251	
Interest	646,268	668,301	(22,033)	
Total expenses	3,515,677	996,353	2,519,324	
Change in net position	(2,154,296)	468,639	(2,622,935)	
Net position (deficit), beginning	(1,631,331)	(2,099,970)	468,639	
Net position (deficit), ending	$	(3,785,627)	$	(1,631,331)	$	(2,154,296}	

For more detailed information, see the accompanying Statement of Activities.
Revenues decreased from the prior year by approximately $104,000, while expenses increased by approximately $2.5 million. Revenues decreased based on a decrease in prepayment assessments related to lots in Phase 2 of the District. Expenses increased primarily due to the conveyance of capital infrastructure to other entities and an increase in maintenance and operations, specifically the amenity center maintenance. The overall result was a $2.2 million decrease in net position for the fiscal year 2018.
THE DISTRICT'S FUNDS
As the District completed the year, its governmental funds (as presented in the balance sheet on page 10) reported a combined fund balance of approximately $1.51 million, which is an increase from prior year's balance that totaled approximately $1.47. Significant transactions are discussed below.

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Villages of Westport Community Development District
]	Management's Discussion and Analysis
The District incurred approximately $654,000 of interest expenditures and repaid $330,000 of outstanding long-term bond principal.

The overall increase in fund balance for the year ended September 30, 2018 totaled approximately
$40,000.

CAPITAL ASSET AND DEBT ADMINISTRATION

Capital Assets

At September 30, 2018, the District had approximately $6.2 million invested in capital assets (net of accumulated depreciation). This amount represents a net decrease of approximately $2.5 million from the fiscal year 2017 total.

A listing of capital assets by major category for the current and prior year follows:

September 30,	2018	2017	Change	
Capital assets not being depreciated	$	4,844,717	$	7,957,182	$	(3,112,465)	
Capital assets being depreciated	2,144,996	1,482,492	662,504	
Total, prior to depreciation	6,989,713	9,439,674	(2,449,961)	
Accumulated depreciation	(834,099)	(752,444)	(81,655)	
Net capital assets	$	6,155,614	$	8,687,230	$	(2,531,616)	
More information about the District's statements.	capital assets is presented in Note 4	to the financial	
Debt			

At September 30, 2018, the District had approximately $11.2 million of bonds outstanding. This amount represents a decrease of $330,000 from the fiscal year 2017 total.
A listing of debt amounts outstanding for the current and prior year is as follows:

September 30,	2018	2017	Change	
Series 2005A bonds	$	11,190,000	$ 11,520,000	$	(330,000)	
	$	11,190,000	$	11,520,000	$	(330,000)	
More information about the District's long-term debt is presented in Note 6 to the financial statements.

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Villages of Westport Community Development District Management's Discussion and Analysis

GOVERNMENTAL FUNDS BUDGETARY HIGHLIGHTS

An Operating budget was established by the governing board for the District pursuant to the requirements of Florida Statutes. The budget to actual comparison for the general fund, including the original budget and final adopted budget, is shown at page 24.

The District experienced a favorable variance in revenues and expenses in the amount of $1,222 and $3,125, respectively. The variance in revenues occurred primarily due to timing of receipt of assessments in the prior year. The variance in expenditures occurred primarily due to anticipated budgeted operating expenditures that were not incurred during the year.

FUTURE FINANCIAL FACTORS

Villages of Westport Community Development District is an independent special district that operates under the provisions of Chapter 190, Florida Statutes. The District operates under an elected Board of Supervisors, which establishes policy and sets assessment rates. Assessment rates for fiscal year 2019 were established to provide for the operations of the District as well as the necessary debt service requirements.

CONTACTING THE DISTRICT'S FINANCIAL MANAGEMENT

This financial report is designed to provide a general overview of the District's finances. If you have questions about this report or need additional financial information, contact the Villages of Westport Community Development District's management company at 12051 Corporate Blvd., Orlando, Florida 32817.

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Basic Financial Statements

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Villages of Westport Community Development District
]	Statement of Net Position
September 30,	2018	
	Governmental	
	Activities	
Assets		
Cash and cash equivalents	$	113,488	
Investments	1,206,943	
Accounts receivable	186,478	
Interest receivable	2,952	
Prepaid expenses	15,051	
Capital assets:		
Not being depreciated	4,844,717	
Depreciable, net	1,310,897	
Total assets	7,680,526	

Due within one year	335,000	
Due in more than one year	10,855,000	
Total liabilities	11,466,153	

Net position
Net investment in capital assets Restricted for:

2,318,050

Debt service	221,263	
Capital projects	203,263	
Unrestricted	(6,528,203)	

Total net position (deficit)	$

The accompanying notes are an integral part of these financial statements.
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(3,785,627)

Villages of Westport Community Development District
Statement of Activities

Year ended September 30,

2018

Net (Expense) Revenue and Changes in

Program Revenues	Net Position

Functions/Programs	
Expenses	Charges for
Services	Governmental
Activities	
Primary government:				
Governmental activities:				
General government	$	{113,494)	$	112,893	$	(601)	
Maintenance and operations	{203,906)	202,825	{1,081)	
Asset conveyance	(2,470,354)		{2,470,354)	
Unallocated depreciation	(81,655)		(81,655)	
Interest	{646,268)	1,044,634	398,366	

Total governmental				
activities	$	(3,515,677)	$	1,360,352	(2,155,325)	

General revenues
    Interest and other revenues	1,029 

Change in net position	(2,154,296)

 Net position (deficit) - beginning of year		(1,631,331) Net position (deficit) - end of year	$ (3,785,627)

The accompanying notes are an integral part of these financial statements.
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Villages of Westport Community Development District
Balance Sheet - Governmental Funds
September 30,		2018
Total Capital	Governmental
General	Debt Service	Projects	Funds
Assets

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Cash and cash equivalents	$   41,663	$		71,825	$		-	$		113,488 Investments		4,852		997,878		204,213		1,206,943
Accounts receivable	186,478	186,478
Interest receivable	2,456	496	2,952
Prepaid expenditures	15,051	15,051
Total assets	$   61,566	$   1,258,637	$	204,709	$	1,524,912

Liabilities and Fund Balances

Accounts payable	$	9,694	$	-	$	1,446	$	11,140	
Total liabilities	9,694	1,446	11,140	

Liabilities

Fund balances
Nonspendable	15,051	15,051
Restricted for debt service	1,258,637	1,258,637
Restircted for capital projects	203,263	203,263
Unassigned	 36,821	36,821 
Total fund balances	51,872	1,258,637	203,263	1,513,772
Total liabilities and fund balances	$   61,566	$   1,258,637	$	204,709	$	1,524,912

The accompanying notes are an integral part of these financial statements.
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Villages of Westport Community Development District Reconciliation of the Balance Sheet of Governmental Funds to the Statement of
Net Position

Total fund balances, governmental funds	$	1,513,772	
Capital assets used in governmental activities are not financial resources and therefore are not reported in the fund financial statements.	
6,155,614	
Liabilities not due and payable from current resources, including accrued interest, are not reported in the fund level statements.	
(11,455,013)	
Total net position (deficit) - governmental activities	$	(3,785,627)	

]	September 30,	2018
]

The accompanying notes are an integral part of these financial statements.
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Villages of Westport Community Development District Statement of Revenues, Expenditures and Changes in Fund Balances -
Governmental Funds

Year ended September 30,	2018

Total Capital	Governmental

 	General	Debt Service	Projects	Funds

Assessment revenue	$ 315,718	$ 1,025,870	$	-	$	1,341,588	
Prepayment revenue		4,831	4,831	
Interest and other revenues	1,029	11,107	 	2,826	14,962	

Revenues

Total revenues	316,747 	1,041,808		2,826	1,361,381

Expenditures
Current:
General government	113,494			113,494	
Maintenance and operations	203,906			203,906	
Debt service:					
Principal		330,000		330,000	
Interest		653,580		653,580	
Capital outlay	 			20,393	20,393	
Total expenditures	317,400	983,580	20,393	1,321,373

Excess (deficit} of revenues over
expenditures	(653}	58,228	(17,567)	40,008

Other financing sources (uses)
Transfers in		104,938	104,938	
Transfers out
Total other financing sources (use	(104,938)
s}	(104,938}	(104,938)
104,938 		

Net change in fund balances	
(653)	
(46,710}	
87,371	
40,008	
Fund balances, beginning of year	52,525	1,305,347	115,892	1,473,764	
Fund balances, end of year	$ 51,872	$	1,258,637	$ 203,263	$	1,513,772	

The accompanying notes are an integralpartof these financial statements.
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Year endedSeptember 30,	2018	
Net change in fund balances - governmental funds	$	40,008	
Capital outlay, reported as expenditures in the governmental funds, is shown as capital assets on the Statement of Net Assets.	
20,393	
Depreciation on capital assets is not recognized in the fund financial statements but is reported as an expense in the Statement of Activities.	
(81,655)	
The conveyance of capital assets has no impact on the fund level financial statements but is treated as an expense in the government-wide Statement of Activities.	

(2,470,354)	
Governmental funds report principal payments on bonds when debt is paid, whereas these payments are eliminated in the Statement of Activities and recognized as a decrease in bonds payable in the Statement	

330,000	
The change in accrued interest between the current and prior year is recorded on the Statement of Activities but not on the fund level statements.	

7,312	
Change in net position of governmental activities	$	(2,154,296)	

Villages of Westport Community Development District Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities

]

The accompanying notes are an integral part of these financial statements.
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Villages of Westport Community Development District
Notes to Financial Statements

NOTE 1: NATURE OF ORGANIZATION

The Villages of Westport Community Development District (the "District") was established on June 14, 2004 pursuant to the Uniform Community Development District Act of 1980, otherwise known as Chapter 190, Florida Statutes, by Rule 42QQ-l. The Act provides among other things, the power to manage basic services for community development, power to borrow money and issue bonds, and to levy and assess non-ad valorem assessments for the financing and delivery of capital infrastructure.

The District was established for the purposes of financing and managing the acquisition, construction, maintenance and operation of a portion of the infrastructure necessary for community development within the District.

The District is governed by a Board of Supervisors ("Board"), which is comprised of five members. The Supervisors are elected on an at large basis by the owners of the property within the District. The Board of Supervisors of the District exercises all powers granted to the District pursuant to Chapter 190, Florida Statutes. At September 30, 2018 certain Board members were affiliated with ICI Homes ("the Developer").

The Board has the final responsibility for:
l. Assessing and levying assessments.
Approving budgets.
Exercising control over facilities and properties.
Controlling the use of funds generated by the District.
Approving the hiring and firing of key personnel.
Financing improvements.

In evaluating how to define the government, for financial reporting purposes, management has considered all potential component units. The decision to include or exclude a potential component unit in the reporting entity was made by applying the criteria set forth by Generally Accepted Accounting Principles (GAAP) as defined by the Governmental Accounting Standards Board (GASB). Based on the foregoing criteria, no potential component units were found.

NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accounting policies of the District conform to GAAP as applicable to governments in accordance with those promulgated by GASB. The following is a summary of the more significant policies:

Government-wide and Fund Financial Statements

The basic financial statements include both government-wide and fund financial statements.

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Villages of Westport Community Development District
]	Notes to Financial Statements
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

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The government-wide financial statements (i.e., the Statement of Net Position and the Statement of Activities) report information on all the non-fiduciary activities of the primary government. Governmental activities, which normally are supported by assessments, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The business-type activities are reported separately in government-wide financial statements; however, at September 30, 2018, the District did not have any significant business-type activities. Therefore, no business-type activities are reported. Assessments and other items not properly included as program revenues (i.e., charges to customers or applicants who purchase, use, or directly benefit from goods or services) are reported as general revenues.

Separate financial statements are provided for governmental funds. Major individual governmental funds are reported as separate columns in the fund financial statements.

Measurement Focus, Basis of Accounting and Basis of Presentation

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

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

Assessments, including debt service assessments along with operation and maintenance assessments, are non-ad valorem special assessments imposed on all lands located within the District and benefited by the District's activities. Assessments are levied and certified for collection
by the District prior to the start of the fiscal year which begins October ist and ends on September 30th. Operation and maintenance special assessments are imposed upon all benefited lands located
in the District. Debt service special assessments are imposed upon certain lots and lands as described in each resolution imposing the special assessment for each series of bonds issued by the District.

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Villages of Westport Community Development District
Notes to Financial Statements

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NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

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

The District reports the following major governmental funds:

General Fund - The General Fund is the primary operating fund of the District. It is used to account for all financial resources except those required to be accounted for in other funds.

Debt Service Fund - The Debt Service Fund is used to account for the accumulation of resources for the annual payment of principal and interest on long-term debt.

Capital Projects Fund - The Capital Projects Fund is used to account for the financial resources to be used for the acquisition or construction of major infrastructure within the District.

For the year ended September 30, 2018, the District does not report any proprietary funds. As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements.

When both restricted and unrestricted resources are available for use, it is the District's policy to use restricted resources first, then unrestricted resources as they are needed. When committed, assigned, or unassigned resources are available for use in the governmental fund financial statements, it is the government's policy to use committed resources first, followed by assigned resources, then unassigned resources as needed.

Cash, Deposits and Investments

The District maintains deposits with "Qualified Public Depositories" as defined in Chapter 280, Florida Statutes. All Qualified Public Depositories must place with the Treasurer of the State of Florida securities in accordance with collateral requirements determined by the State's Chief Financial Officer. In the event of default by a Qualified Public Depository, the State Treasurer will pay public depositors all losses. Losses in excess of insurance and collateral will be paid through assessments between all Qualified Public Depositories.

Under this method, all the District's deposits are fully insured or collateralized at the highest level of security as defined by GASB, Statement Number 40, Deposits and Investment Disclosures (An Amendment of GASB, Statement Number 3).

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Villages of Westport Community Development District
Notes to Financial Statements

NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

The District is authorized to invest in financial instruments as established by Section 218.415, Florida Statutes. The authorized investments include among others direct obligations of the United States Treasury; the Local Government Surplus Trust Funds as created by Section 218.405, Florida Statutes; SEC registered money market funds with the highest credit quality rating from a nationally recognized rating agency; and interest-bearing time deposits or savings accounts in authorized financial institutions.

Capital Assets

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

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

Property, plant and equipment of the primary government are depreciated using the straight-line method over the estimated useful lives. Estimated useful lives for financial reporting purposes are as follows: roadways and other: 20 years; storm water system: 25 years.

In the governmental fund financial statements, amounts incurred for the acquisition of capital assets are reported as fund expenditures. Depreciation expense is not reported in the governmental fund financial statements.

Long-Term Obligations
In the government-wide financial statements, long-term debt and other long-term obligations are reported as liabilities in the Statement of Net Position. Bond premiums and discounts are deferred and amortized over the life of the bonds using the straight-line or effective interest method. Bonds payable are reported net of these premiums or discounts. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as current period expenses.
In the fund financial statements, governmental fund types recognize bond premiums and discounts during the current period. The face amount of the debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.

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]
Villages of Westport Community Development District
]	Notes to Financial Statements
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Deferred Outflows/Inflows of Resources
In addition to assets, the Statement of Net Position and Balance Sheet - Governmental Funds will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period{s) and so will not be recognized as an outflow of resources
{expense/expenditure) until then. The District does not have any of this type of item at September 30, 2018.

In addition to liabilities, the Statement of Net Position and Balance Sheet - Governmental Funds will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period{s) and so will not be recognized as an inflow of resources {revenue) until that time. The District does not have any of this type of item at September 30, 2018.

Fund Equity

Net position in the government-wide financial statements represents the difference between assets and deferred outflows of resources and liabilities and deferred inflows of resources and is categorized as net investment in capital assets, restricted or unrestricted. Net investment in capital assets represents assets related to infrastructure and property, plant and equipment, net of any related debt. Restricted net position represents the assets restricted by the District's bond covenants.

Governmental fund equity is classified as fund balance. Fund balance is further classified as nonspendable, restricted, committed, assigned, or unassigned. Nonspendable fund balance cannot be spent because of its form. Restricted fund balance has limitations imposed by creditors, grantors, or contributors or by enabling legislation or constitutional provisions. Committed fund balance is a limitation imposed by the District board through approval of resolutions. Assigned fund balance is a limitation imposed by a designee of the District board. Unassigned fund balance in the General Fund is the net resources in excess of what can be properly classified in one of the above four categories. Negative unassigned fund balance in other governmental funds represents excess expenditures incurred over the amounts restricted, committed, or assigned to those purposes.

Estimates

The preparation of financial statements in accordance with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

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]
Villages of Westport Community Development District
Notes to Financial Statements

NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued}

Prepaid Expenses
]		Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid expenditures on the Statement of Net Position. These items will be expensed over the
]	applicable usage period.
Budgets

]

The District is required to establish a budgetary system and an approved annual budget. Annual budgets are legally adopted on a basis consistent with GAAP for the General Fund. Any revision to the budget must be approved by the District Board. The budgets are compared to actual expenditures. In instances where budget appropriations and estimated revenues have been revised during the year, budget data presented in the financial statements represent final authorization amounts.
The District follows these procedures in establishing the budgetary data reflected in the financial statements:
Each year the District Manager submits to the District Board a proposed operating budget for the fiscal year commencing the following October 1.
A public hearing is conducted to obtain comments.
Prior to October 1, the budget is legally adopted by the District Board.
All budget changes must be approved by the District Board.
Budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America.

NOTE 3: INVESTMENTS
The District's investments consist of money market funds in which shares are owned in the fund rather than the underlying investments. In accordance with GAAP, these amounts are reported at amortized cost. At the close of the fiscal year, the District held investments in the Local Government Surplus Funds Trust Fund ("Florida PRIME") external investment pool. The Florida PRIME is administered by the Florida State Board of Administration ("SBA"), who provides regulatory oversight. Florida PRIME currently meets all of the necessary criteria set forth in GASB 79 to measure its investments at amortized cost; therefore, the District's account balance in the SBA is also reported at amortized cost. There are no limitations or restrictions on withdrawals from Florida PRIME, although on the occurrence of an event that has a material impact on liquidity or operations of the fund, the fund's executive director may limit contributions or withdrawals from the trust fund for a period of 48 hours.

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]
Villages of Westport Community Development District
]	Notes to Financial Statements
NOTE 3: INVESTMENTS (Continued)
The following is a summary of the District's investments:
]	September 30,	2018	Credit Risk	Maturities
State Board of Administration Investment Florida PRIME $ 1,206,943 S&P AAAm 33 days    
]	$ 1,206,943
Custodial credit risk - For an investment, custodial credit risk is the risk that the District will not be able to recover the value of the investments or collateral securities that are in the possession of an outside party. The District has no formal policy for custodial risk. At September 30, 2018, the money market funds are not exposed to custodial credit risk because their existence is not evidenced by securities that exist in physical or book entry form.
Concentration risk - The District's investment policy requires diversification, but does not specify limits on types of investments.
Interest rate risk - The District does not have a formal policy for addressing interest rate risk; however, investments are made with discretion, to seek reasonable returns, preserve capital, and in general, avoid speculative investments. The District manages its exposure to declines in fair values from interest rate changes by reviewing the portfolio on an ongoing basis for changes in effective yield amounts.

NOTE 4: CAPITAL ASSETS
The following is a summary of changes in the capital assets for the year ended September 30, 2018:
Beginning	Transfers and
Balance	Additions	Conveyances	Ending Balance

Governmental Activities:
Capital assets not being depreciated
Land improvements	$

2,020,928	$	- $

-   $	2,020,928

Infrastructure under construction	5,936,254	20,393	(3,132,858)	2,823,789
Total capital assets, not being depreciated	7,957,182 	20,393	(3,132,858)	4,844,717
Capital assets being depreciated
Infrastructure - roadways and other				910,456					910,456 Infrastructure - stormwater system	 	572,036	662,504	1,234,540 Total capital assets, being depreciated			1,482,492 		662,504		2,144,996
Less accumulated depreciation
Infrastructure - roadways and other	(500,752)	(45,523)	(546,275)
Infrastructure - stormwater system	(251,692)	(36,132)	(287,824)
Total accumulated depreciation	(752,444)	(81,655)	(834,099)
Total capital assets, being depreciated, net	730,048	(81,655)	662,504	1,310,897
Governmental activities capital assets, net	$	8,687,230   $	(61,262)  $	(2,470,354)  $	6,155,614

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]
Villages of Westport Community Development District
Notes to Financial Statements

NOTE 4: CAPITAL ASSETS (Continued)

]

Depreciation expense of $81,655 was unallocated on the accompanying Statement of Activities.
The total expected cost of the District's infrastructure improvements was estimated at approximately $47 million. A portion of the Series 2005A Bonds discussed in Note 6 were for the acquisition and construction of certain infrastructure improvements. The balance of the District's improvements was to be funded either by the Developer or by the issuance of additional bonds. During the year ended September 30, 2018, the District conveyed approximately $2.5 million of constructed infrastructure to another governmental entity.

NOTE 5: RISK MANAGEMENT
The District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; and natural disasters. The District maintains commercial insurance coverage to mitigate the risk of loss. Coverage may not extend to all situations. Management believes such coverage is sufficient to preclude any significant uninsured losses to the District. The District has not filed any insurance claims in any of the previous three fiscal years.

NOTE 6: BONDS PAYABLE
On February 1, 2005 the District issued $24,345,000 of Capital Improvement Revenue Bonds, Series 2005A consisting of $4,265,000 Term Bonds, $3,130,000 Term Bonds and $16,950,000 Term Bonds with interest rates of 5.125%, 5.4% and 5.7%, respectively. The Bonds were issued to finance the acquisition and construction of certain improvements for the benefit of the District. Interest is to be paid semiannually on each May 1 and November 1. Principal on the $4,265,000 Term Bonds is to be paid serially commencing May 1, 2005 through May 1, 2015. Principal on the $3,130,000 Term Bonds is to be paid serially commencing May 1, 2016 through May 1, 2020. Principal on the
$16,950,000 Term Bonds is to be paid serially commencing May 1, 2021 through May 1, 2035. The Series 2005A Bonds are subject to optional redemption beginning May 1, 2015 and to extraordinary mandatory redemption prior to maturity in the manner determined by the Bond Registrar if certain events occur as outlined in the Bond Indenture.

Long-term liability activity for the year ended September 30, 2018, was as follows:
Beginning	Ending	Due Within
Balance	Additions	Reductions	Balance	One Year

Bonds Payable:		
Series 2005A	$ 11,520,000	$	
	$ 11,520,000	$	

Governmental Activities

$	(330,000)	$11,190,000	$	335,000	
$	(330,000)	$ 11,190,000	$	335,000	

-
-

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]
Villages of Westport Community Development District
]	Notes to Financial Statements
NOTE 6: BONDS PAYABLE (Continued)
At September 30, 2018, the scheduled debt service requirements on long-term debt were as
]	follows:
Total Debt

2019	$	335,000	$	636,030	$	971,030	
2020	360,000	617,940	977,940	
2021	460,000	598,500	1,058,500	
2022	485,000	572,280	1,057,280	
2023	515,000	544,635	1,059,635	
2024 - 2028	3,040,000	2,249,220	5,289,220	
2029 - 2033	4,035,000	1,275,660	5,310,660	
2034 - 2035	1,960,000	169,575	2,129,575	
	$	11,190,000	$	6,663,840	$	17,853,840	

]	Year Ending September 30,	Principal	 Interest	Service	
]

The Bond Indenture has certain restrictions and requirements relating principally to the use of proceeds to pay for the infrastructure improvements and the procedure to be followed by the District on assessments to property owners. The District agreed to levy special assessments in annual amounts adequate to provide payment of debt service and to meet the reserve requirements. The District is in compliance with the requirements of the Bond Indenture.

The Bond Indenture requires that the District maintain adequate funds in reserve accounts to meet the debt service reserve requirements as defined in the Indenture. The requirements have been met for the fiscal year ended September 30, 2018

NOTE 7: MANAGEMENT COMPANY
The District has contracted with a management company to perform management advisory services, which include financial and accounting advisory services. Certain employees of the management company also serve as officers (Board appointed non-voting positions) of the District. Under the agreement, the District compensates the management company for management, accounting, financial reporting, and other administrative costs.

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V illages of Westport Community Development District
Notes to Financial Statements

NOTE 8: CONCENTRATION

J

A significant portion of the District's activity is dependent upon the continued involvement of the Developer, ICI Homes, the loss of which could have a material adverse effect on the District's operations.

l

The Developer funds a significant portion of the general fund operations of the District through the payment of Operations and Maintenance assessments. The Developer paid $246,840 of General Fund assessments for the year ended September 30, 2018. In addition, the Developer also paid
$613,085 of Debt Service Fund assessments for the year ended September 30, 2018.

I

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Compliance and Other Matters
As part of obtaining reasonable assurance about whether the District's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the 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 District's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the District's internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

CARR, RIGGS & INGRAM, LLC

Miramar Beach, Florida May 28, 2019

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�le: :

CRI

INGRAM 
CPAs and Advisors

MANAGEMENT LETTER

Carr, Riggs & Ingram, LLC
500 Grand Boulevard
Suite 210
Miramar Beach, Florida 32550

(850) 837-3141
(850) 654-4619 (fax)
CRlcpa.com

To the Board of Supervisors
Villages of Westport Community Development District Duval County, Florida
Report on the Financial Statements

We have audited the financial statements of the Villages of Westport Community Development District ("District") as of and for the fiscal year ended September 30, 2018, and have issued our report thereon dated May 28, 2019.

Auditors' Responsibility

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

We have issued our Independent Auditors' Report on Internal Control over Financial Reporting and Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance with Government Auditing Standards and Independent Accountants' Report on an examination conducted in accordance with A/CPA Professional Standards, AT-C Section 315, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports, which are dated May 28, 2019, should be considered in conjunction with this management letter.
Prior Audit Findings

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

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

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

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

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

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

Purpose of this Letter

Our management letter is intended solely for the information and use of 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.

CARR, RIGGS & INGRAM, LLC
Miramar Beach, Florida May 28, 2019

- 28 -

CRI

�l :G: :
INGRAM

Carr, Riggs & Ingram, LLC
500 Grand Boulevard
Suite 210
Miramar Beach, Florida 32550

CPAs and Advisors

(850) 837-3141
(850) 654-4619 (fax)
CRlcpa.com

INDEPENDENT ACCOUNTANTS' REPORT
To the Board of Supervisors
Villages of Westport Community Development District Duval County, Florida

We have examined Villages of Westport Community Development District's compliance with the requirements of Section 218.415, Florida Statutes, Local Government Investment Policies, during the year ended September 30, 2018. Management is responsible for the District's compliance with those requirements. Our responsibility is to express an opinion on the 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. Those standards require that we plan and performed the examination to obtain reasonable assurance about whether the District complied, in all material respects, with the specified requirements referenced above. An examination involves performing procedures to obtain evidence about whether the District complied with the specified requirements. The nature, timing, and extent of the procedures selected depend on our judgement, including an assessment of the risks of material noncompliance, whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion.

Our examination does not provide a legal determination on the District's compliance with specified requirements.

In our opinion, the District complied, in all material respects, with the aforementioned requirements for the year ended September 30, 2018.

This report is intended solely for the information and use of management and the State of Florida Auditor General and is not intended to be and should not be used by anyone other than these specified parties.

CARR, RIGGS & INGRAM, LLC

Miramar Beach, Florida May 28, 2019

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