CORDOBA RANCH COMMUNITY DEVELOPMENT DISTRICT

TABLE  OF CONTENTS

Year Ended September 30, 2014

    Page	

Financial Section:
Independent Auditor's Report	1
Management's Discussion and Analysis	3
Financial Statements:
Government-Wide Financial Statements:
Statement of Net Position	7
Statement of Activities	8
Fund Financial Statements:
Balance Sheet - Governmental Funds	9
Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds	10
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds
to the Statement of Activities	11
Statement of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual - General Fund	12
Notes to Financial Statements	13
Compliance Section:
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	22
Management Comments	24
Independent Auditor's Report on Compliance with the Requirements
of Section 218.451, Florida Statutes	26

INDEPENDENT AUDITOR'S REPORT

To the Board of Supervisors
Cordoba Ranch Community Development District

Report on the Financial Statements

We have audited the accompanying financial statements of the governmental activities, and each major fund of the Cordoba Ranch Community Development District (the “District”), as of and for the year ended September 30, 2014, 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 Responsibility for the Financial Statements

The District's 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 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 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 principles 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.

MCDIRMIT DAVIS & COMPANY, LLC
934 NORTH MAGNOLIA AVENUE, SUITE 100 ORLANDO, FLORIDA 32803
TELEPHONE: 407-843-5406 FAX: 407-649-9339 EMAIL: INFO@MCDIRMITDAVIS.COM

MEMBERS: PRIVATE COMPANIES PRACTICE SECTION AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS

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, 2014, and the respective changes in financial position thereof and the respective budgetary comparison for the General Fund for the year then ended in  accordance 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’s discussion and analysis starting on page 3, 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 May 7, 2015, 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, grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the 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.

Orlando, Florida May 7, 2015

MANAGEMENT’S DISCUSSION AND ANALYSIS

Our discussion and analysis of the Cordoba Ranch Community Development District’s, (the “District”) financial accomplishments provide an overview of the District’s financial activities for the year ended September 30, 2014. Please read it in conjunction with the District’s Independent Auditor’s Report, financial statements and accompanying notes.

This information is being presented to provide additional information regarding the activities of the District and to meet the disclosure requirements of Government Accounting Standards Board Statement (GASB) No. 34, Basic Financial Statements - and Management’s Discussion and Analysis - for State and Local Governments issued June 1999.

Financial Highlights

The assets of the District exceeded its liabilities at September 30, 2014 by $6,626,122, an increase of $230,683 in comparison with the prior year.
At September 30, 2014, the District’s governmental funds reported a combined fund balance of $693,743, an increase in the fund balance of $65,830 in comparison with the prior year.

Overview of the Financial Statements

This discussion and analysis is intended to serve as an introduction to the Cordoba Ranch Community Development District’s financial statements. The District’s financial statements are comprised of three components: 1) government-wide financial statements, 2) fund financial statements and 3) notes to financial statements.

Government-Wide Financial Statements

The government-wide financial statements are designed to provide readers with a broad overview of the District’s finances, in a manner similar to a private-sector business.

The statement of net position presents information on all of the District’s assets, liabilities, and deferred inflows/outflows of resources, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the District is improving or deteriorating.

The statement of activities presents information showing how the government’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items  that will only result in cash flows in future fiscal periods.

The government-wide financial statements include all governmental activities that are principally supported by special assessment revenues. The District does not have any business-type activities. The governmental activities of the District include general government, physical environment, culture and recreation, and public safety related functions.

Fund Financial Statements

A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The District, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. The District has one fund category: Governmental Funds.

Governmental Funds - Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a District’s near-term financing requirements.

Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government- wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.

The District maintains three individual governmental funds. Information is presented separately in the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances for the general fund, debt service fund and capital projects fund. The general fund and debt service fund are considered to be major funds.

The District adopts an annual appropriated budget for its general fund. A budgetary comparison schedule has been provided for the general fund to demonstrate compliance with the budget.

Notes to Financial Statements

The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements.

Government-Wide Financial Analysis

Statement of Net Position - The District’s net position was $6,626,122 at September 30, 2014. The following analysis focuses on the net position of the District’s governmental activities.

Government-Wide Financial Analysis (Continued):
Cordoba Ranch Community Development District Statement of Net Position

	September 30,
2014		September 30,
2013	
Assets, excluding capital assets	$	714,526		$	674,825	
Capital assets net of depreciation	 	13,876,945 		 	13,880,907 	
Total assets	 	14,591,471 		 	14,555,732 	

Liabilities, excluding long-term liabilities	200,349	230,293	
Long-term liabilities	 	7,765,000 	 	7,930,000 	
Total liabilities	 	7,965,349 	 	8,160,293 	

Net Position:
Net investment in capital assets	6,496,988	6,335,881	
Restricted for debt service	56,638	57,339	
Restricted for capital projects	2,220	2,219	
Unrestricted	 	70,276 	- 	
Total net position	  $	6,626,122       $	6,395,439 	

The following is a summary of	

the District’s governmental activities for the fiscal years ended	
September 30, 2014 and 2013.		
	Changes in Net Position	
	Year Ended September 30,	
	
2014	2013	
Revenues:		
Program revenues	$	990,454	$	1,024,405	
General revenues	 	280 	425 	
Total revenues	 	990,734 	1,024,830 	

Expenses:		
General government	74,661	78,802	
Physical environment	220,375	104,873	
Culture and recreation	17,193	624,228	
Public safety	11,522	3,263	
Interest on long-term debt	 	436,300 	 	445,133 	
Total expenses	 	760,051 	 	1,256,299 	
Change in net position	230,683	(231,469)	
Net Position - beginning, previously stated	6,395,439	6,890,687	
Effect of Implementation of GASB No. 65	 	- 	 	(263,779)	
Net Position - beginning as restated	 	6,395,439 	 	6,626,908 	
Net Position - ending	  $	6,626,122 	  $	6,395,439 	

Government-Wide Financial Analysis (Continued):

The decrease in current year expenses from the prior year is because in fiscal year 2013, the District expensed refurbishing costs due to the extended period of time the construction of the District sat idle. These costs did not recur in fiscal year 2014.

Financial Analysis of the Government’s Funds

The District uses fund accounting to ensure and demonstrate compliance with finance related legal requirements. The focus of the District’s governmental funds is to provide information on near-term inflows, outflows and balances of spendable resources. Such information is useful in assessing the District’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year. At September 30, 2014, the District’s governmental funds reported a combined ending fund balance of $693,743. Of this total, $19,279 is nonspendable, $623,467 is restricted and the remainder is an unassigned fund balance of $50,997.

The fund balance of the general fund increased by $70,276 due to assessments exceeding expenditures. There was no significant change to the debt service fund or the capital projects fund balances.

General Fund Budgetary Highlights

An operating budget was adopted and maintained by the governing board for the District pursuant to the requirements of Florida Statutes. The budget is adopted using the same basis of accounting that is used in preparation of the fund financial statements. There were no amendments to the September 30, 2014 general fund budget.

Capital Asset and Debt Administration

Capital Assets - At September 30, 2014, the District had $13,876,945 invested in capital assets, net of depreciation. More detailed information about the District’s capital assets is presented in the notes to the financial statements.

Capital Debt - At September 30, 2014, the District had $7,765,000 in bonds outstanding. More detailed information about the District’s capital debt is presented in the notes to the financial statements.

Requests for Information

If you have questions about this report or need additional financial information, contact the District’s Finance Department at 3434 Colwell Avenue, Suite 200, Tampa, Florida 33614.

FINANCIAL  STATEMENTS

September  30, 2014

	Governmental
Activities	
Assets:
Cash	
$	71,780	
Prepaid costs	7,949	
Deposits	11,330	
Restricted assets:		
Temporarily restricted investments	623,467	
Capital assets not being depreciated	13,862,420	
Capital assets being depreciated, net	 	14,525 	
Total assets	14,591,471

Liabilities:

Accounts payable and accrued expenses	20,783	
Accrued interest payable	179,566	
Noncurrent liabilities:		
Due within one year	170,000	
Due in more than one year	 	7,595,000 	

Total liabilities	 	7,965,349 

Net Position:

Net investment in capital assets	6,496,988	
Restricted for debt service	56,638	
Restricted for capital projects	2,220	
Unrestricted	 	70,276 	

Total net position	$	6,626,122

Year Ended September 30, 2014

 	Program Revenue	

Operating Grants

Net (Expense) Revenue and Changes in Net Assets

Charges for		and	Governmental Functions/Programs	 Expenses	Services	Contributions		Activities
Governmental activities:
General government	$	74,661	$	89,889	$	-	$	15,228	
Physical environment	220,375	265,324	-	44,949	
Culture and recreation	17,193	20,700	-	3,507	
Public safety	11,522	13,872	-	2,350	
Interest on long-term debt	 	436,300 	600,537	132	164,369	

Total governmental activities $

760,051

$	990,322	$

132

230,403

General Revenues:
Investment income	 		280 Change in net position		230,683

Net Position - beginning	 	6,395,439 

Net Position - ending	$	6,626,122

 	General	

Assets:	
Debt Service	
Capital Projects	Governmental Funds	
Cash	$	71,780	$	-	$	-	$	71,780	
Investments	-	621,247	2,220	623,467	
Deposits	11,330	-	-	11,330	
Prepaid costs	 	7,949 		-	-	7,949	
Total assets	$	91,059		$	621,247	$	2,220	$	714,526	

Liabilities and Fund Balances:
Liabilities:
Accounts payable and accrued expenses

  $	20,783	$	-	$

-	$	20,783

Nonspendable	19,279	-	-	19,279	
Debt service	-	621,247	-	621,247	
Capital projects	-	-	2,220	2,220	
Unassigned	 	50,997	-	-	50,997	
Total fund balances	 	70,276	621,247	2,220	693,743	
Total liabilities and fund balances	$	91,059	$	621,247	$	2,220		

Amounts reported for governmental activities in the statement of net position are different because:		
Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds.	
13,876,945	

Liabilities not due and payable from current available resources are not reported in governmental fund statements. All liabilities, both current and long-term, are reported in the government-wide statements.		
Accrued interest payable	(179,566)		
Bonds payable	 	(7,765,000)	(7,944,566)	

Net Position of Governmental Activities (page 7)	
$	6,626,122	

Fund Balances: Restricted for:

Revenues:

General	Debt Service

Capital Projects

Governmental Funds

Special assessments	$	389,785		$	600,537		$	-	$	990,322	
Investment income	 	280 		132		-	412	
Total revenues	 	390,065 		600,669		-	990,734	

Expenditures:
Current:
General government	74,661	-	-	74,661	
Physical environment	216,413	-	-	216,413	
Culture and recreation	17,193	-	-	17,193	
Public safety
Debt Service:	11,522	-	-	11,522	
Interest	-	440,115	-	440,115	
Principal	 	-	165,000	-	165,000	
   
Total expenditures	 	319,789	605,115	-	924,904

Net change in fund balances	70,276	(4,446)	-	65,830

Fund Balances - beginning of year	 	- 		625,693		2,220		627,913	
Fund Balances - end of year	$	70,276		$	621,247		$	2,220		$	693,743	

TO THE STATEMENT OF ACTIVITIES

Year Ended September 30, 2014

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

Net Change in Fund Balances - total governmental funds (page 10)	$	65,830	
Depreciation on capital assets is not recognized in the governmental fund statement, however it is reported as an expense in the statement of activities.	
(3,962)	

Repayments of long-term liabilities are reported as expenditures in governmental funds, while repayments reduce long-term liabilities in the statement of net position.	

165,000	
Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds.		
Change in accrued interest	 	3,815 	
Change in Net Position of Governmental Activities (page 8)	$	230,683	

Year Ended September 30, 2014

	

 	Budgeted Amounts			

Actual Amounts		Variance with Final Budget Positive
(Negative)	
	 	Original		Final					
Revenues:
Special assessments	

$	388,600	$	388,600		
$	389,785		
$	1,185	
Investment income and other	 	-	-		280		280	
Total revenues	
 	388,600	388,600		390,065		1,465	

Expenditures:
Current:
General government	90,750	90,750	74,661	16,089	
Culture and recreation	25,000	25,000	17,193	7,807	
Physical environment	256,750	256,750	216,413	40,337	
Public safety	 	16,100 	16,100	11,522	4,578	
   
Total expenditures	 	388,600	388,600	319,789	68,811 Net change in fund balance			-		-		70,276	70,276
Fund Balance - beginning	 	-	-	-	-

Fund Balance - ending

$	-	$

-	$	70,276	$

70,276

NOTES TO FINANCIAL STATEMENTS

Note 1 - Summary of Significant Accounting Policies:

Reporting Entity

The Cordoba Ranch Community Development District, (the “District”) was established on April 19, 2006 by Hillsborough County Ordinance 05-23 pursuant to the Uniform Community Development District Act of 1980, otherwise known as Chapter 190, Florida Statutes. The Act provides among other things, the power to manage basic services for community development, the power to borrow money and issue bonds, and the power to levy and assess non-ad valorem assessments for the financing and delivery of capital infrastructure. The District was established for the purpose  of financing  and managing  the acquisition,  construction, maintenance and operation of a portion of the infrastructure necessary for community development within the District.

In the prior fiscal year, Standard Pacific of Florida (the “Developer”) purchased the previous developer’s land within the District and took over development of the District. The District is economically dependent on Standard Pacific of Florida.

The District is governed by the Board of Supervisors (the “Board”), which is composed of five members elected on an at large basis by landowners of the District. The Board of Supervisors of the District exercises all powers granted to the District pursuant to Chapter 190, Florida Statutes. All 5 Board members are associated with the Developer.

The Board has the final 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.
Financing improvements.

The financial statements  were prepared  in accordance  with Governmental  Accounting Standards Board (“GASB”) Statement 14, and Statement  61, an amendment  of GASB Statement 14. Under the provisions of those standards, the financial reporting  entity consists  of the primary government, organizations for which the District Board of Supervisors is considered to be financially accountable, and other organizations for which the nature and significance of their relationship with the District are such that, if excluded, the financial statements of the District would be considered incomplete or misleading. There are no entities considered to be component units of the District; therefore, the financial statements  include only the operations of the District.

Note 1 - Summary of Significant Accounting Policies (Continued): Government-Wide and Fund Financial Statements
The financial statements include both government-wide and fund financial statements.

The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the non-fiduciary activities of the primary government. For the most part, the effect of interfund activity has been removed from these statements.

The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers who purchase, use, or directly benefit from goods, services or privileges provided by a given function or segment and 2) grants, contributions and investment income that are restricted to meeting the operational or capital requirements of a particular function or segment and 3) operating-type special assessments that are treated as charges for services (including assessments for maintenance and debt service). Other items not included among program revenues are reported instead as general revenues.

Measurement Focus, Basis of Accounting and Financial Statement 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 related cash flows. Assessments are recognized as revenues in the year for which they are levied.  Grants and similar items are recognized as revenues 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 collected 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 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 and operation  and maintenance assessments, are non-ad valorem assessments imposed on assessable lands located within the District benefited by the District’s activities. Debt service assessments were imposed pursuant to the District’s assessment resolution at the time of issuance of the Bonds. Operations and maintenance assessments are levied by the District annually prior to the start of the fiscal year which begins October 1st and ends on September 30th. Operation and maintenance special assessments are imposed upon all benefited lands located in the District. Debt service special assessments were imposed upon certain lots and lands as described in each resolution imposing the special assessment for each series of bonds issued by the District and are collected in accordance with the District’s annual assessment resolution.

Note 1 - Summary of Significant Accounting Policies (Continued):

Measurement Focus, Basis of Accounting  and Financial Statement  Presentation (Continued):

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. All other revenue items are considered to be measurable and available only when cash is received by the District.

The District reports the following governmental funds. The general fund and debt service fund are considered to be major funds.

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.

Debt Service Fund - accounts for the accumulation of resources for the annual payment of principal and interest on long-term general obligation debt.

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

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.

Assets, Liabilities,  Deferred  Outflows/Inflows  of Resources,  and Net Position/Fund Balance

Restricted Assets - These assets represent cash and investments set aside pursuant to bond covenants.

Deposits and Investments - The District’s cash and cash equivalents are considered to be cash on hand and demand deposits.

Investments of the District are reported at fair value. The District’s investments consist of investments authorized  per their investment  policy adopted in accordance  with Section 218.415, Florida Statutes.

Prepaid Items - Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements.

Note 1 - Summary of Significant Accounting Policies (Continued):

Assets, Liabilities,  Deferred  Outflows/Inflows  of Resources,  and Net Position/Fund Balance (Continued):

Capital Assets - Capital assets, which include property, plant, equipment and infrastructure assets (e.g., roads, sidewalks and similar items), are reported in the applicable governmental activities column in the government-wide financial statements. Capital assets are defined by the government 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 or estimated historical cost if purchased or constructed. Donated capital 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 assets lives are not capitalized.  Major  outlays for capital assets  and improvements are capitalized as projects are constructed. Property, plant and equipment of  the District are depreciated using the straight-line method over the following estimated useful lives:

 	Assets	 	Years	
Equipment	5

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, as well as issuance costs, are deferred and amortized over the life of the bonds using the straight-line method. Bonds payable are reported net of premiums or discounts.

In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of 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 expenditures.

Deferred Outflows/Inflows of Resources- In addition to assets, the statement of financial position 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 item that qualifies for reporting in this category for the year ended September 30, 2014

In addition to liabilities, the statement of financial position 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 item that qualifies for reporting in this category for the year ended September 30, 2014.

Note 1 - Summary of Significant Accounting Policies (Continued):

Assets, Liabilities,  Deferred  Outflows/Inflows  of Resources,  and Net Position/Fund Balance (Continued):

Net Position Flow Assumption - Sometimes the District will fund outlays for a particular purpose from both restricted and unrestricted resources. In order to calculate the amounts to report as restricted-net position and unrestricted-net position in the government-wide financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the District’s policy to consider restricted-net position to have been depleted before unrestricted-net position is applied.

Fund Balance Flow Assumptions - Sometime the District will fund outlays for a particular purpose from both restricted and unrestricted resources (total of committed, assigned, and unassigned fund balance). In order to calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements a flow assumption must be made about the order in which the resources are considered to  be applied. It is the District’s policy to consider restricted fund balance to have been depleted  before using any of the components  of unrestricted fund balance. Further,  when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last.

Fund Balance Policies  - Fund balance  of governmental funds is reported  in various categories based on the nature of any limitations requiring the use of resources for specific purposes. The District itself can establish limitations on the use of resources through either  commitment (committed fund balance) or an assignment (assigned fund balance).

The committed fund balance classification includes fund balance amounts that can be used  only for the specific purposes determined by a formal action of the government’s highest level of decision-making authority. The Board of Supervisors is the highest level of decision-making authority for the government that can, by adoption of an ordinance or resolution prior to the end of the fiscal year, commit fund balance. Once adopted, the limitation imposed by the ordinance or resolution remains in place until a similar action is taken to remove or revise the limitation.

Amounts in the assigned  fund balance  classification  are intended  to be used by the government for specific purposes but do not meet the criteria to be classified as committed. The Board of Supervisors has authorized the District Manager to assign amounts for specific purposes. The Board of Supervisors may also assign fund balance as it does when appropriating fund balance to cover a gap between estimated revenue and appropriations in the subsequent year’s appropriated budget. Unlike commitments, assignments generally only exist temporarily. In other words, an additional action does not normally have to be taken for the removal of an assignment. Conversely, as discussed above an additional action is essential to either remove or revise a commitment.

Note 1 - Summary of Significant Accounting Policies (Continued): Other Disclosures
Use of Estimates - The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenditures during the reporting period. Actual results could differ from those estimates.

Note 2 - Stewardship, Compliance and Accountability:

Budgetary Information

The District is required to establish a budgetary system and an approved annual budget for the General Fund. Annual budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America. All annual appropriations lapse at the  fiscal year end. The legal level of budgetary control is at the fund level. Any budget amendments that increase the aggregate budgeted appropriations, at the fund level, must be approved by the Board of Supervisors.

Note 3 - Investments:

Investments are stated at fair value, which is the amount for which an investment could be exchanged in a current transaction between willing parties, other than in a forced liquidation sale. Fair value is based on quoted market prices.  Changes in the fair value of investments  are recognized as revenue and included in investment revenue. Investment revenue is recognized as earned and is recorded in the respective fund related to the investment activity.

The District’s investment policy is governed by State Statutes and the District Trust Indenture. This policy allows investments in any financial institution that is a qualified public depository of the State of Florida as identified by the State Treasurer, in accordance with Chapter 280 of the Florida Statutes. Authorized investments are:

The State Board of Administration Local Government Investment Pool (SBA);

Securities and Exchange Commission Registered Money Market Funds with the highest credit quality rating from a nationally recognized rating agency;

Interest-bearing savings accounts and certificates of deposit in state-certified qualified public depositories;

Direct obligations of the U.S. Treasury.

Note 3 - Investments (Continued):

Investments  made  by  the  District  at  September  30,  2014  are  summarized  below.	In accordance with GASB 31, investments are reported at fair value.

 	Investment Type		Fair Value

Credit Rating

Weighted Average Maturity

US Bank Managed Money Market

$	623,467

NA	NA

Credit Risk:

The District’s investment policy limits credit risk by restricting authorized investments to those described. Investments in U.S. Government securities and agencies must be backed by the full faith and credit of the United States Government. Short term bond funds shall be rated by nationally recognized ratings agency and maintain the highest credit quality rating.

Custodial Credit Risk:

In the case of deposits, this is the risk that, in the event of a bank failure, the District’s deposits may not be returned to it. The District’s investment policy requires that bank deposits be secured as provided by Chapter 280, Florida Statutes. This law requires local governments to deposit funds only in financial institutions designated as qualified public depositories by the Chief Financial Officer of the State of Florida, and creates the Public Deposits Trust Fund, a multiple financial institution pool with the ability to assess its member financial institutions for collateral shortfalls if a default or insolvency has occurred. At September 30, 2014, all of the District’s bank deposits were in qualified public depositories.

For an investment, this is the risk that, in the event of the failure of the counterparty, the government will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. At September 30, 2014, none of the investments listed are exposed to custodial credit risk because their existence is not evidenced by securities that exist in physical or book entry form.

Concentration of Credit Risk:

The District’s investment policy does not specify limits on the amount the District may invest in any one issuer.

Interest Rate Risk:

The District’s investment policy does not specifically address interest rate risk; however, the general investment policy is to apply the prudent-person rule: Investments are made as a prudent person would be expected to act, with discretion and intelligence, to seek reasonable income, preserve capital, and in general, avoid speculative investments. The District manages its exposure to declines in fair values by investing primarily in pooled investments that have a weighted average maturity of less than three months.

Note 5 - Capital Assets:

Capital asset activity for the year ended September 30, 2014 was as follows:

Governmental Activities:
Capital assets not being depreciated:

Beginning
Balance	Additions	Disposals

Ending Balance

Infrastructure under construction

$ 13,862,420	$

-	$	-

$ 13,862,420

Total capital assets, not being depreciated	13,862,420	-	-	13,862,420 Capital assets, being depreciated:
Security equipment	19,808	-	-	19,808
-
Less accumulated depreciation for:	-
Security equipment		(1,321)	(3,962)	-		(5,283) Total capital assets, being depreciated, net	18,487	(3,962)	-	14,525

Governmental activities capital assets, net

$  13,880,907	$

(3,962)	$

-	$ 13,876,945

District construction is complete.

Note 6 - Long-Term Liabilities:

On July 13, 2006, the District issued $10,220,000 of Capital Improvement Revenue Bonds, Series 2006 due on May 1, 2037 with a fixed interest rate of 5.55%. The Bonds were issued to finance the acquisition and construction of certain improvements for the benefit of the property within the District. Interest is payable semiannually on each May 1 and November 1, commencing November 1, 2006. Principal is payable annually commencing May 1, 2008
through May 1, 2037.

The Series 2006 Bonds are subject to redemption at the option of the District, in whole or in part at anytime on or after May 1, 2016 at a redemption price set forth in the Bond Indenture. The Series 2006 Bonds are subject to extraordinary mandatory redemption prior to maturity in the manner determined by the Bond Indenture.

The Bond Indenture requires that the District maintain adequate funds in a reserve account to meet the debt service reserve requirement as defined in the Indenture. The requirement was not met at September 30, 2014 as the reserve was underfunded. Pursuant to a January 7, 2015 Notice to Bondholders, the Trustee states that it does not plan to take any action relative to the deficiency of the amounts on deposit in the 2006 Reserve Account.

The Bond 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 agreed to collect special assessments in annual installments adequate to provide payment of debt service. Payment of principal and interest on the Series 2006 Bonds is secured by a pledge of and first lien upon the pledged special assessment revenue. The District is in compliance with the Bond Indenture.

Note 6 - Long-Term Liabilities (Continued):

Total principal and interest  remaining  on the Series 2006 Bonds as of  September  30, 2014 is
$13,959,913.	In the current year, the District paid $165,000 of principal and $440,115 of interest.  In the current year, the Developer paid $600,537 of debt service special assessments.

Long-term debt activity for the year ended September 30, 2014 was as follows:

	Beginning
Balance		
Additions		
Reductions		Ending
Balance		Due Within
One Year	
Governmental Activities:
Bonds Payable:										
Series 2006	$ 7,930,000		$	-		$	(165,000)		$ 7,765,000		$	170,000	
Governmental activity long-										
term liabilities	$ 7,930,000		$	-		$	(165,000)		$ 7,765,000		$	170,000	

At September 30, 2014, the scheduled debt service requirements on the bonds payable were as follows.

Governmental Activities
Year Ending
September 30,		
Principal		
Interest	
2015		$	170,000		$	430,958	
2016		180,000		421,523	
2017		190,000		411,533	
2018		205,000		400,988	
2019		215,000		389,610	
2020 - 2024		1,270,000		1,755,465	
2025 - 2029		1,680,000		1,360,028	
2030 - 2034		2,205,000		838,328	
2035 - 2037		1,650,000		186,480	
		$	7,765,000		$	6,194,913	

Note 7 - Developer Transactions:

In the current year, the Developer, Standard Pacific of Florida paid 100% of the District’s special assessment revenue.

Note 8 - 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. These risks are covered by commercial insurance from independent third parties. The District has filed one claim of approximately $5,000, which does not exceed coverage during the last three years.

COMPLIANCE  SECTION

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

To the Board of Supervisors
Cordoba Ranch Community Development District

We have audited, 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 the Comptroller General of the United States, the financial statements of the governmental activities, and each major fund of the Cordoba Ranch Community Development District (the “District”) as of and for the year ended September 30, 2014, and the related notes to the financial statements, which collectively comprise the District’s basic financial statements, and have issued our report thereon dated May 7, 2015.

Internal Control Over Financial Reporting

In planning and performing our audit of the financial statements, we considered the District’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the District’s internal control. Accordingly, we do not express an opinion on the effectiveness of the 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 a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

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

MCDIRMIT DAVIS & COMPANY, LLC
934 NORTH MAGNOLIA AVENUE, SUITE 100 ORLANDO, FLORIDA 32803
TELEPHONE: 407-843-5406 FAX: 407-649-9339 EMAIL: INFO@MCDIRMITDAVIS.COM

MEMBERS: PRIVATE COMPANIES PRACTICE SECTION AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS

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 and contracts, 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.

Orlando, FL May 7, 2015

MANAGEMENT COMMENTS

Board of Supervisors
Cordoba Ranch Community Development District

Report on the Financial Statements

We have audited the financial statements of the Cordoba Ranch Community Development District, (the “District”) as of and for the fiscal year ended September 30, 2014, and have issued our report thereon dated May 7, 2015.

Auditor’s Responsibility

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

Other Reports

We have issued our Independent Auditor’s Report on Internal Control over Financial Reporting and Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards and Independent Auditor’s Report on an examination conducted in accordance with AICPA Professional Standards, Section 601, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports, which are dated May 7, 2015 should be considered in conjunction with this management letter.

Prior Audit Findings

Section 10.554(1)(i.)1., Rules of the Auditor General, require that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. Corrective actions have been taken to address findings  and recommendations made in the preceding annual financial 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. This information has been disclosed in the noted to the financial statements.

MCDIRMIT DAVIS & COMPANY, LLC
934 NORTH MAGNOLIA AVENUE, SUITE 100 ORLANDO, FLORIDA 32803
TELEPHONE: 407-843-5406 FAX: 407-649-9339 EMAIL: INFO@MCDIRMITDAVIS.COM

MEMBERS: PRIVATE COMPANIES PRACTICE SECTION AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS

Financial Condition

Section 10.554(1)(i)5.a., Rules of the Auditor General, requires that we report the results of our determination as to whether or not the Cordoba Ranch Community Development District has met one or more of the conditions described in Section 218.503(1), Florida Statues, and identification of the specific condition(s) met. In connection with our audit, we determined that the Cordoba Ranch Community Development District did not meet any of the conditions described in Section 218.503(1), Florida Statues.

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

Annual Financial Report

Section 10.554(1)(i)5.b., Rules of the Auditor General, requires that we report the results of our determination as to whether the annual financial report for the Cordoba Ranch Community Development District for the fiscal year ended September 30, 2014, filed with the Florida Department of Financial Services pursuant to Section 218.32(1)(a), Florida Statues, is in agreement with the annual financial audit report for the fiscal year ended September 30, 2014. In connection with our audit, we determined that these two reports were in agreement.

Other Matters

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

Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address 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 have any such findings.

Purpose of this Letter

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

Orlando, Florida May 7, 2015

INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE WITH THE REQUIREMENTS OF SECTION 218.415, FLORIDA STATUTES

Board of Supervisors
Cordoba Ranch Community Development District

We have examined Cordoba Ranch Community Development District’s (the District) compliance with the requirements of Section 218.415, Florida Statutes, during the year ended September 30, 2014. 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 and the standards applicable to attestation engagements contained in Government Auditing Standards issued by the Comptroller General of the United States and, accordingly, included examining, on a test basis, evidence about the 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 the District’s compliance with specified requirements.

In our opinion, Cordoba Ranch Community Development District complied, in all material respects, with the aforementioned requirements for the year ended September 30, 2014.

Orlando, Florida May 7, 2015

MCDIRMIT DAVIS & COMPANY, LLC
934 NORTH MAGNOLIA AVENUE, SUITE 100 ORLANDO, FLORIDA 32803
TELEPHONE: 407-843-5406 FAX: 407-649-9339 EMAIL: INFO@MCDIRMITDAVIS.COM

MEMBERS: PRIVATE COMPANIES PRACTICE SECTION AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS