Coral Springs Improvement District
Basic Financial Statements
For the Year Ended September 30, 2017

Independent Auditor's Report	1‐3
Management's Discussion and Analysis (Not Covered by
Independent Auditor's Report)	4‐8

Basic Financial Statements
Government‐wide Financial Statements:
Statement of Net Position	9
Statement of Activities	10
Fund Financial Statements:
Balance Sheet ‐ Governmental Fund	11
Reconciliation of the Balance Sheet of the Governmental
Fund to the Statement of Net Position	12
Statement of Revenues, Expenditures and Change in
Fund Balance ‐ Governmental Fund	13
Reconciliation of the Statement of Revenues, Expenditures and Change in Fund Balance of the Governmental Fund to
the Statement of Activities	14
Statement of Revenues, Expenditures and Change in
Fund Balance ‐ Budget and Actual ‐ General Fund	15
Statement of Net Position ‐ Proprietary Fund	16
Statement of Revenues, Expenses and Change in
Net Position ‐ Proprietary Fund	17
Statement of Cash Flows ‐ Proprietary Fund	18‐19
Notes to Basic Financial Statements	20‐31

Required Supplemental Information
Schedule of Funding Progress ‐ Other Post‐Employment Benefits	32

Other Financial Information
Schedule of Operating Expenses by Department ‐ Proprietary Fund	33

(continued)	

Other Reports of Independent Auditor’s

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 Governmental Auditing Standards	34‐35
Independent Auditor's Report to District Management	36‐38 Independent Auditors Report on Compliance with Section 218.415, Florida Statutes		39

INDEPENDENT AUDITOR'S REPORT

To the Board of Supervisors
Coral Springs Improvement District Coral Springs, Florida
Report on the Financial Statements

We have audited the accompanying financial statements of the governmental activities, the business‐ type activities, and each major fund of Coral Springs Improvement District (the “District”) as of and for the year ended September 30, 2017, 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

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 standard 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 policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

KMCcpa.com | 6550 N Federal Hwy, 4th Floor  Fort Lauderdale, FL 33308 Phone: 954.771.0896 Fax: 954.938.9353

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, the business‐type activities, and  each major fund of the District, as of September 30, 2017, and the respective changes in financial position and, where applicable, cash flows thereof and budgetary comparison of 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 on pages 4 through 8 and schedule of funding progress ‐ other post‐employment benefits on page 32 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 Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the District’s financial statements as a whole. The schedule of operating  expenses by department on page 33 as listed in the table of contents is presented for purposes of additional analysis and is not a required part of the basic financial statements of the District. The schedule of operating expenses by department is the responsibility of management and was derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated December 27, 2017, on our consideration of the District’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and 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 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.

KEEFE McCULLOUGH

Fort Lauderdale, Florida December 27, 2017

MANAGEMENT’S DISCUSSION AND ANALYSIS

Our discussion and analysis of Coral Springs Improvement District’s (the “District”) financial performance provides an objective and easily readable analysis of the District’s financial activities. The analysis provides summary financial information for the District and should be read in conjunction with the District’s financial statements.

Financial Highlights

The following are the highlights of financial activity for the year ended September 30, 2017:

The District’s total assets exceeded total liabilities by $ 53,338,496 (net position). Unrestricted net position for governmental activities was
$ 5,351,908.

Governmental activities revenues totaled $ 1,868,439, including interest income of $ 20,838, while governmental activities expenses totaled
$ 1,407,395. Business‐type revenues totaled $ 13,038,066, including interest	income	of	$ 98,817.	Business‐type	expenses	totaled
$ 12,952,218.

Overview of the Financial Statements

The District’s basic financial statements comprise three components: 1) government‐wide financial statements, 2) fund financial statements, and 3) notes to basic financial statements. The government‐wide financial statements present an overall picture of the District’s financial position and results of operations. The fund financial statements present financial information for the District’s major fund. The notes to basic financial statements provide additional information concerning the District’s finances that are not disclosed in the government‐wide or fund financial statements.

Government‐Wide Financial Statements: The Government‐wide financial statements are the statement of net position and the statement of activities. These statements use accounting methods similar to those used by private‐sector companies. Emphasis is placed on the net position of governmental activities and business‐type activities and the change in net position. Governmental activities are primarily supported by property tax assessments. Business‐type activities are supported by charges to the users of those activities, such as water and sewer services.

The statement of net position presents information on all assets and liabilities of the District, with the difference between assets, deferred inflow/outflows of resources and liabilities reported as net position. Net position is reported in three categories: 1) net investment in capital assets; 2) restricted and; 3) unrestricted. Assets, liabilities, and net position are reported for all  governmental activities separate from the assets, liabilities, and net position of business‐type activities.

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

Fund Financial Statements: Fund financial statements present financial information for governmental funds and proprietary funds. These statements provide financial information for the major funds of the District. Governmental fund financial statements provide information on the current assets and liabilities of the fund, changes in current financial resources (revenues and expenditures), and current available resources. The enterprise fund financial statements provide information on all assets and liabilities of the fund, changes in the economic resources (revenues and expenses), and total economic resources.

Fund financial statements include a balance sheet and a statement of revenues, expenditures and change in fund balance for the governmental fund. A statement of revenues, expenditures, and change in fund balance ‐ budget and actual, is provided for the District’s General Fund. For enterprise funds, a statement of net position, a statement of revenues, expenses and change in net position, and a statement of cash flows are presented. Fund financial statements provide more detailed information about the District’s activities. Individual funds are established by the District to track revenues that are restricted to certain uses and to comply with legal requirements.

The government‐wide financial statements and the fund financial statements provide different pictures of the District.  The government‐wide financial statements provide an overall picture of  the District’s financial standing, split between governmental activities and business‐type activities. These statements are comparable to private‐sector companies and give a good understanding of the District’s overall financial health and how the District paid for the various activities, or functions, provided by the District. All assets of the District, including buildings, land, machinery and equipment, construction‐in‐progress and infrastructure are reported in the statement of net position. All liabilities, including principal outstanding on bonds, and future employee benefits, obligated but not paid by the District, are included. The statement of activities includes a provision for depreciation of all long‐lived assets of the District, but transactions between the different functions of the District have been eliminated in order to avoid “doubling up” the revenues and expenses. The fund financial statements provide a picture of the major funds of the District. In the case of governmental activities, outlays for long‐lived assets are reported as expenditures and long‐ term liabilities, such as general obligations bonds, are not included in the fund financial statements. To provide a link from the fund financial statements to the government‐wide financial statements, reconciliations are provided from the fund financial statements to the government‐wide financial statements.

Notes to the Basic Financial Statements: The notes provide additional information that is necessary to acquire a full understanding of the data provided in the government‐wide and fund financial statements. The notes to the financial statement can be on pages 20 through 31 of this report.

Government‐Wide Financial Analysis

As noted earlier, net position may serve over time as a useful indicator of financial position. The following table reflects the condensed government‐wide statements of net position as of September 30, 2017 and 2016:

Coral Springs Improvement District Statements of Net Position

Governmental Activities	Business‐Type Activities	Total Primary Government
 	2017		 	2016			 	2017		 	2016			 	2017		 	2016		

Current and other assets	
$	5,499,714	
$	4,846,636	
$	21,269,976	
$	20,599,398	
$	26,769,690	
$	25,446,034	
Restricted assets	‐	‐	5,074,425	4,383,191	5,074,425	4,383,191	
Capital assets (net)	 	7,242,218 	 	7,418,912 	 	56,452,303 	     58,231,009 	 	63,694,521 	     65,649,921 	
Total assets	     12,741,932 	     12,265,548 	 	82,796,704 	     83,213,598 	 	95,538,636 	     95,479,146 	
Total deferred outflows
of resources	
 	‐		
 	‐		
 	1,715,296 	
 	1,837,817 	
 	1,715,296 	
 	1,837,817 	

Other liabilities	
81,335	
73,890	
3,181,603	
2,292,941	
3,262,938	
2,366,831	
Noncurrent liabilities	 	66,471 	 	58,576 	 	40,586,027 	     42,099,952 	 	40,652,498 	     42,158,528 	
Total liabilities	 	147,806 	 	132,466 	 	43,767,630 	     44,392,893 	 	43,915,436 	     44,525,359 	

Net position:										
Net investments in capital							
assets	7,242,218	7,418,912	14,697,303	15,401,009	21,939,521	22,819,921	
Restricted	‐	‐	5,074,425	4,383,191	5,074,425	4,383,191	
Unrestricted	 	5,351,908 	 	4,714,170 	 	20,972,642 	     20,874,322 	 	26,324,550 	     25,588,492 	
Total net position	$ 12,594,126 	$ 12,133,082 	$ 	40,744,370 	$ 40,658,522 	$ 	53,338,496 	$ 52,791,604 	

Governmental and Business‐Type Activities: Governmental activities increased the District’s net position by $ 461,044, while business‐type activities increased the District’s net position by $ 85,848, as reflected in the table below:

Coral Springs Improvement District Statements of Activities

Governmental Activities	Business‐Type Activities	Total Primary Government

	 	2017		 	2016		 	2017		 	2016		 	2017		 	2016		
Revenues:							
Charges for services	$	3,700	$	5,850	$	12,845,231	$	12,643,221	$	12,848,931	$	12,649,071	
Taxes:							
Assessments	1,811,926	1,813,837	‐	‐	1,811,926	1,813,837	
Other	 	31,975 	 	80,193 	 	94,018 	 	95,190 	 	125,993 	 	175,383 	
Total revenues	 	1,847,601 	 	1,899,880 	 	12,939,249 	     12,738,411 	 	14,786,850 	     14,638,291 	
Expenses:							
General government	490,379	408,718	‐	‐	490,379	408,718	
Physical environment	595,536	752,664	‐	‐	595,536	752,664	
Water and sewer	‐	‐	7,178,196	7,068,223	7,178,196	7,068,223	
Bond issuance costs	‐	‐	‐	890,434	‐	890,434	
Interest expense	‐	‐	1,421,535	1,922,735	1,421,535	1,922,735	
Provision for depreciation	 	321,480 	 	215,167 	 	4,352,487 	 	4,304,880 	 	4,673,967 	 	4,520,047 	
Total expenses	 	1,407,395 	 	1,376,549 	 	12,952,218 	     14,186,272 	 	14,359,613 	     15,562,821 	
Change in net position							
before other income							
(expense)	 	440,206 	 	523,331 	 	(12,969)	 	(1,447,861)	 	427,237 	 	(924,530)	

Coral Springs Improvement District Statements of Activities (continued)

Governmental Activities	Business‐Type Activities	Total Primary Government
 	2017		 	2016			 	2017		 	2016			 	2017		 	2016		
Other income (expense):
Interest income	 	20,838 	
 	19,205 		
 	98,817 	
 	58,419 		
 	119,655 	
 	77,624 	
Total other income
(expense)	 	20,838 	
 	19,205 		
 	98,817 	
 	58,419 		
 	119,655 	
 	77,624 	

Change in net position	
461,044	
542,536	
85,848	
(1,389,442)	
546,892	
(846,906)	
Net position, beginning of the year	
     12,133,082 	
     11,590,546 	
 	40,658,522 	
     42,047,964 	
 	52,791,604 	
     53,638,510 	
Net position, end of the year	
$ 12,594,126 	
$ 12,133,082 	
$ 	40,744,370 	
$ 40,658,522 	
$ 	53,338,496 	
$ 52,791,604 	

Analysis of the Governmental Funds

As noted earlier, the District uses fund accounting to ensure and demonstrate compliance with finance‐related legal requirements. The focus of the District’s governmental fund 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 District’s net resources available for spending at the end of the fiscal year. The General Fund is the only governmental fund.

As of the end of the current fiscal year, the District’s governmental fund reported an ending fund balance of $ 5,436,909.
Capital Assets and Debt Administration

The District’s capital assets less accumulated depreciation for its governmental activities and business‐type activities as of September 30, 2017 amounts to $ 7,242,218 and $ 56,452,303, respectively, and consists of land, buildings, infrastructure, machinery and equipment, easements and construction‐in‐progress.

At the end of the year, the District’s business activities had general obligation bond debt outstanding of $ 41,755,000.

Additional information on the District’s debt can be found in Note 6 beginning on page 26 of this report.

General Fund Budgetary Highlights: An operating budget for the General Fund was adopted and maintained by the governing board for the District pursuant to the requirements of Florida Statutes. The General Fund budget is adopted using the same basis of accounting that is used in preparation of the fund financial statements. The budget to actual comparisons for the General Fund, including the original and final adopted budget, is shown on page 15.

The District experienced a favorable variance in revenues compared to the General Fund budget in the amount of $ 51,341. The District also experienced an unfavorable variance in expenditures compared to the General Fund budget in the amount of $ 5,438.

Economic Factors and Next Year’s Budgets

The 2018 General Fund’s budgeted expenditures increased by approximately $ 198,000. The increase in expenditures reflects capital improvements budgeted for canal bank restoration assessment and pump station improvements. The 2018 Water and Sewer Fund’s budgeted expenses increased by approximately $ 4,952,000. The increase in due mainly to the budgeting of capital projects in 2018. Those projects include the construction of a new injection well, water pipe replacement in District subdivisions, and the rehabilitation of a lift station. The District’s utility rates will not change for fiscal year ended September 30, 2018.

In September 2017 Hurricane Irma passed through South Florida. While the District suffered no structural damage to its buildings or other utility properties, it did incur fallen trees and other damages to its drainage waterways. The General Fund has contracted to have the waterways cleared of this debris. It is anticipated that the total clean up charges will approximate $ 2,300,000. The District has already initiated filing claims with FEMA for reimbursement of 75% of the costs. There are sufficient funds on hand to cover the balance of the costs not reimbursed by FEMA.
Requests for Information

This financial report is designed to provide a general overview of Coral Springs Improvement District’s finances for all those with an interest. Questions concerning any of the information provided in this report or requests for additional information should be addressed to the Coral Springs Improvement District, 10300 N.W. 11th Manor, Coral Springs, Florida 33071.

BASIC FINANCIAL STATEMENTS

Coral Springs Improvement District Statement of Net Position
September 30, 2017	

Governmental	Business‐Type
    Activities		 Activities		 	Total	

Assets:
Current assets:		
Cash and cash equivalents	$	4,496,446	$	17,470,804	$	21,967,250	
Investments	1,003,016	2,263,517	3,266,533	
Accounts receivable	‐	1,376,313	1,376,313	
Due from other governments	252	143,572	143,824	
Accrued interest receivable	‐	7,441	7,441	
Prepaid items	‐	8,329	8,329	
Restricted cash and cash equivalents	‐	5,074,425	5,074,425	
Noncurrent assets:				
Capital assets:				
Depreciable (net)	6,626,478	54,875,464	61,501,942	
Nondepreciable	 	615,740	 	1,576,839	 	2,192,579	
Total assets	   12,741,932	   82,796,704	   95,538,636	
Deferred Outflows of Resources:				
Deferred charge on refunding	 	‐		 	1,715,296 	 	1,715,296	
Liabilities:				
Current liabilities:				
Accounts payable	33,210	258,779	291,989	
Accrued expenses	13,511	105,437	118,948	
Contracts payable	‐	155,045	155,045	
Compensated absences payable	18,530	125,337	143,867	
Customer deposits	17,500	566,080	583,580	
Internal balances	(1,416)	1,416	‐	
Payable from restricted assets:				
Accrued interest payable	‐	424,509	424,509	
Current portion of bonds payable	‐	1,545,000	1,545,000	
Noncurrent liabilities:				
Net OPEB obligation	40,933	255,067	296,000	
Compensated absences payable	25,538	120,960	146,498	
Bonds payable	 	‐		   40,210,000 	   40,210,000	
Total liabilities	 	147,806 	   43,767,630	   43,915,436 	
Net Position:				
Net investment in capital assets	7,242,218	14,697,303	21,939,521	
Restricted for renewal and replacement	‐	4,000,757	4,000,757	
Restricted for debt service	‐	1,073,668	1,073,668	
Unrestricted	 	5,351,908	   20,972,642	   26,324,550	
Total net position	$ 12,594,126	$ 40,744,370 	$ 53,338,496	

The accompanying notes to basic financial statements are an integral part of these statements.

Coral Springs Improvement District Statement of Activities
For the Year Ended September 30, 2017	

Net (Expense) Revenue and
 		Program Revenues			Changes in Net Position Charges		Operating	Capital
for	Grants and	Grants and	Governmental	Business‐Type
    Expenses		Services	Contributions	Contributions	Activities	Activities	Total
 	  	 	 	 	
Functions/Programs:
Governmental activities:		
General government	$	490,379	$	‐	$	‐	$	‐	$	(490,379)	$	‐	$	(490,379)	
Physical environment	595,536	3,700	‐		‐	(591,836)	‐	(591,836)	
Provision for depreciation	 	321,480	‐	‐		‐	(321,480)	‐	(321,480)	
Total governmental									
activities	 	1,407,395 	 	3,700 	 	‐			 	‐		    (1,403,695)	 	‐		    (1,403,695)	
Business‐type activities:									
Personal services	4,301,361	70,548	‐		‐	‐	(4,230,813)	(4,230,813)	
Materials, supplies and services	2,876,835	12,774,683	‐		‐	‐	9,897,848	9,897,848	
Provision for depreciation	4,352,487	‐	‐		‐	‐	(4,352,487)	(4,352,487)	
Interest expense	 	1,421,535 	 	‐		 	‐			 	‐		 	‐		    (1,421,535)	    (1,421,535)	
Total business‐type											
activities	   12,952,218 	12,845,231	‐	‐		‐		(106,987)		(106,987)	
Total primary											
government	$ 14,359,613 	$ 12,848,931 	$ 	‐		$ 	‐			(1,403,695)		(106,987)		(1,510,682)	
General revenues:				
Assessments	1,811,926	‐	1,811,926	
Interest income	20,838	98,817	119,655	
Miscellaneous income	 	31,975 	 	94,018 	 	125,993 	
Total general revenues	 	1,864,739 	192,835	2,057,574	
Change in net position	461,044	85,848	546,892	
Net position, October 1, 2016	   12,133,082 	40,658,522	52,791,604	
Net position, September 30, 2017	$ 12,594,126 	$ 40,744,370 	$ 53,338,496 	
The accompanying notes to basic financial statements are an integral part of these statements.
10

Balance Sheet ‐ Governmental Fund
September 30, 2017	

Assets:

General Fund

Cash and cash equivalents	$	4,496,446
Investments	1,003,016
Due from proprietary fund	1,416
Due from other governments	 	252

Total assets	$ 	5,501,130
Liabilities:
Accounts payable	$	33,210
Accrued expenditures	13,511
Deposits	 	17,500

Total liabilities	 	64,221 
Fund Balance:
Assigned to:		
Capital projects	1,650,000	
First quarter operating reserves	350,000	
Emergency	2,750,000	
Unassigned	 	686,909	

Total fund balance	 	5,436,909
Total liabilities and fund balance	$ 	5,501,130 

Reconciliation of the Balance Sheet of the Governmental Fund to the Statement of Net Position
September 30, 2017	

Total Fund Balance ‐ Governmental Fund	$	5,436,909

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 governmental fund.

Cost of capital assets	$	14,262,000
Less accumulated depreciation	 (7,019,782)	7,242,218

Certain liabilities are not due and payable in the current period and, therefore, are not reported in the governmental fund.

Net OPEB obligation	(40,933)
Compensated absences payable	 	(44,068)	 	(85,001)

Net Position of Governmental Activities	$ 12,594,126

Statement of Revenues, Expenditures and Change in Fund Balance ‐ Governmental Fund
For the Year Ended September 30, 2017	

	General
Fund	
Revenues:		
Assessments	$	1,811,926	
Miscellaneous income	31,975	
Interest income	20,838	
Permit fees	 	3,700	
Total revenues	 	1,868,439	

Expenditures:
Current:		
General government:		
Personal services	211,226	
Operating	 	270,988	
Total general government	 	482,214	
Flood control:		
Personal services	383,295	
Operating	 	212,241	
Total flood control	 	595,536 	
Capital outlay	 	144,786	
Total expenditures	 	1,222,536	
Net change in fund balance	645,903	
Fund Balance, October 1, 2016	 	4,791,006	
Fund Balance, September 30, 2017	$ 	5,436,909	

Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balance of the Governmental Fund to the Statement of Activities
For the Year Ended September 30, 2017	

Net Change in Fund Balance ‐ Governmental Fund	$	645,903

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

Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of those assets is depreciated over their estimated useful lives.

Expenditures for capital assets	$	144,786
Current year provision for depreciation	 	(321,480)	(176,694)

Some expenses reported in the statement of activities are not reported in the governmental funds because they have no effect on current financial resources.

Change in net OPEB obligation	(4,191)
Change in compensated absences	 	(3,974)	 	(8,165)

Change in Net Position of Governmental Activities	$ 	461,044

Statement of Revenues, Expenditures and Change in Fund Balance ‐ Budget and Actual ‐ General Fund
For the Year Ended September 30, 2017	

Revenues:	Original
 	Budget		Amended &
 Final Budget	 	Actual		    Variance		
Assessments	$	1,781,748	$	1,781,748	$	1,811,926	$	30,178	
Miscellaneous income	31,950	31,950	31,975	25	
Interest income	2,400	2,400	20,838	18,438	
Permit fees	 	1,000	 	1,000	 	3,700 	 	2,700	
Total revenues	   1,817,098	   1,817,098	   1,868,439	 	51,341	

Expenditures:

General government:		
Personal services	193,003	193,003	211,226	(18,223)	
Operating	 	256,806	 	265,306	 	270,988	 	(5,682)	
Total general government	 	449,809	 	458,309	 	482,214	 	(23,905)	
Flood control:					
Personal services	379,696	379,696	383,295	(3,599)	
Operating	 	393,491	 	274,493	 	212,241	 	62,252	
Total flood control	 	773,187 	 	654,189 	 	595,536	 	58,653	
Capital outlay	 	119,600 	 	104,600	 	144,786	 	(40,186)	
Total expenditures	   1,342,596	   1,217,098	   1,222,536	 	(5,438)	
Excess (deficiency) of revenues over expenditures	
 	474,502 	
 	600,000 	
 	645,903	
 	45,903	
ther Financing Sources (Uses):
Appropriation of prior years'	
fund balance	125,498	‐	‐	‐	
Assigned for first quarter operating					
reserves	(350,000)	(350,000)	‐	350,000	
Assigned for capital projects and					
emergency	 	(250,000)	 	(250,000)	 	‐		 	250,000	
Total other financing
sources (uses)	 	(474,502)	 	(600,000)	 	‐		 	600,000	
Net change in fund balance	‐	‐	645,903	645,903	
und Balance, October 1, 2016	 4,791,006	 4,791,006	 4,791,006	 	‐		
und Balance, September 30, 2017	$    4,791,006	$    4,791,006	$    5,436,909	$ 	645,903	

Current:

O

F F

Statement of Net Position ‐ Proprietary Fund
September 30, 2017	

	Water and
  Sewer Fund	
Assets:		
Current assets:		
Cash and cash equivalents	$	17,470,804	
Investments	2,263,517	
Accounts receivable	1,376,313	
Due from other governments	143,572	
Accrued interest receivable	7,441	
Prepaid items	8,329	
Restricted cash and cash equivalents	5,074,425	
Noncurrent assets:		
Depreciable (net)	54,875,464	
Nondepreciable	 	1,576,839	
Total assets	   82,796,704	

Deferred Outflows of Resources:
Deferred charge on refunding	 	1,715,296 
Liabilities:
Current liabilities:
Accounts payable	258,779	
Accrued expenses	105,437	
Due to general fund	1,416	
Contracts payable	155,045	
Compensated absences payable	125,337	
Customer deposits	566,080	
Payable from restricted assets:		
Accrued interest payable	424,509	
Current portion of bonds payable	1,545,000	
Noncurrent liabilities:		
Net OPEB obligation	255,067	
Compensated absences payable	120,960	
Bonds payable	   40,210,000 	
Total liabilities	 43,767,630 
Net Position:
Net investment in capital assets	14,697,303	
Restricted for renewal and replacement	4,000,757	
Restricted for debt service	1,073,668	
Unrestricted	   20,972,642	
Total net position	$ 40,744,370

Statement of Revenues, Expenses and Change in Net Position ‐ Proprietary Fund
For the Year Ended September 30, 2017	

Operating Revenues:
Charges for services:	Water and
  Sewer Fund	
Water	$	6,608,374	
Sewer	5,913,198	
Contract personnel fees	70,548	
Miscellaneous utility fees	151,132	
Technology sharing fees	15,000	
Rentals	 	86,979	
Total operating revenues	   12,845,231 	
Operating Expenses:		
Personal services	4,301,361	
Materials, supplies and services	2,876,835	
Provision for depreciation	 	4,352,487	
Total operating expenses	   11,530,683 	
Operating income	 	1,314,548	

Nonoperating Revenues (Expenses):		
Interest income	98,817	
Miscellaneous revenue	94,018	
Interest expense	    (1,421,535)	
Total nonoperating revenues (expenses)	    (1,228,700)	
Change in net position	85,848	
Net Position, October 1, 2016	   40,658,522	
Net Position, September 30, 2017	$ 40,744,370	

Cash Flows from Operating Activities:

Water and
  Sewer Fund

Cash received from customers and users	$	12,665,592 Cash paid to employees for services			(4,250,344)
Cash paid to suppliers for goods and services	 (2,624,182)
Net cash provided by (used in) operating activities	 	5,791,066

Cash Flows from Noncapital Financing Activities:
Cash received for miscellaneous activities	 	94,018

Net cash provided by (used in) noncapital
financing activities	 	94,018

Cash Flows from Capital and Related Financing Activities:
Interest paid and other fiscal charges	(928,935)	
Bond principal payments	(1,075,000)	
Purchase of investments	(2,006,031)	
Purchase of capital assets	    (2,573,781)	

Net cash provided by (used in) capital
and related financing activities	 (6,583,747)

Cash Flows from Investing Activities:
Interest received	 	96,843	
Net cash provided by (used in) investing activities	 	96,843 	
Net increase (decrease) in cash and cash equivalents	(601,820)	
Cash and Cash Equivalents, October 1, 2016	   23,147,049	
Cash and Cash Equivalents, September 30, 2017	$ 22,545,229	

Reconciliation of Operating Income to Net Cash Provided by Operating Activities:	Water and
  Sewer Fund	
Operating income	$ 	1,314,548	
Adjustments to reconcile operating income to net cash		
provided by operating activities:		
Provision for depreciation	4,352,487	
Changes in assets and liabilities:		
(Increase) decrease in accounts receivable	(173,324)	
(Increase) decrease in due from other governments	(73,452)	
(Increase) decrease in prepaid items	291,149	
(Increase) decrease in due from general fund	1,045	
Increase (decrease) in accounts payable	65,207	
Increase (decrease) in accrued expenses	10,460	
Increase (decrease) in contracts payable	(31,296)	
Increase (decrease) in compensated absences payable	19,748	
Increase (decrease) in customer deposits	(6,315)	
Increase (decrease) in net OPEB obligation	 	20,809 	
Total adjustments	 	4,476,518	
Net cash provided by (used in) operating activities	$ 	5,791,066 	

Note 1 ‐ Organization and Operations

The Coral Springs Improvement District (the "District") was incorporated under the provisions of Chapter 70‐617, Laws of Florida, for the purpose of constructing and maintaining systems of drainage, flood control and water and sewer utilities within the boundaries of the District. Its utilities currently service approximately 9,500 customers.

Note 2 ‐ Summary of Significant Accounting Policies

The basic financial statements of the District have been prepared in conformity with generally accepted accounting principles as applied to governmental units. The District's more significant accounting policies are described below.

Reporting entity: The criteria used for including component units consists of identification of legally separate organizations for which the Board of Supervisors of the District are financially accountable. This criteria also includes identification of organizations for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity's basic financial statements to be misleading or incomplete. Based upon this review, there were no potential component units of the District.

The District's basic financial statements include both government‐wide (reporting the District as a whole) and fund financial statements (reporting the District's major funds). Both the government‐ wide and fund financial statements categorize primary activities as either governmental or business‐type. The District has both governmental and business‐type activities.

In the government‐wide statement of net position, the governmental activities column is presented on a consolidated basis, if applicable, and is reported on a full‐accrual, economic resource basis, which recognizes all noncurrent assets and receivables as well as all noncurrent debt and obligations. The effect of inter‐fund activity has been eliminated from the government‐wide financial statements.

The government‐wide statement of activities reports both the gross and net cost of each of the District's functions. The net costs, by function, are also supported by general revenues, other revenue, etc. The statement of activities reduces gross expenses by related program revenues, operating and capital grants. Program revenues must be directly associated with the function. Operating grants include operating‐specific and discretionary (either operating or capital) grants while the capital grants column reflect capital‐specific grants.

This government‐wide focus is more on the ability to sustain the District as an entity and the change in the District's net position resulting from the current year's activities.

The accounts of the District are organized on the basis of funds, each of which is considered to be a separate accounting entity. The operations of each fund are accounted for with a separate set of self‐balancing accounts that comprise its assets, liabilities, fund balance/net position, revenues and expenditures (expenses). The various funds are summarized by type in the basic financial statements. The following fund types are used by the District:

General Fund ‐ The General Fund is established to account for all financial transactions not properly accounted for in another fund.

Water and Sewer Fund ‐ The Water and Sewer Fund is a proprietary fund established to account for operations that are to be financed and operated in a manner similar to private business enterprises. The costs of providing services to customers are to be recovered primarily through user charges.

Note 2 ‐ Summary of Significant Accounting Policies (continued)

Measurement focus, basis of accounting, and presentation: Basis of accounting refers to the point at which revenues or expenditures/expenses are recognized in the accounts and reported in the basic financial statements. It relates to the timing of the measurements made regardless of the measurement focus applied. Governmental funds use the current financial resources measurement focus and the government‐wide statements use the economic resources measurement focus.

Governmental activity in the government‐wide financial statements is presented on the accrual basis of accounting. Revenues are recognized when earned and expenses are recognized when incurred.

The governmental fund is accounted for using the modified accrual basis of accounting. Revenues are recognized when they become measurable and available for use. "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. The District considers revenues available if they are collected within sixty days after year end. Expenditures are generally recognized when the liability is incurred, except that interest payable on debt is recognized only when due.

The Proprietary Fund uses the accrual basis of accounting. Revenue is recognized when earned and expenses are recognized when incurred.

Budgets and budgetary accounting: The District's annual budgets are adopted for the General Fund and Water and Sewer Fund and approved by the Board of Supervisors. The budget amounts presented in the accompanying basic financial statements are as originally adopted by the District's Board of Supervisors. Any amendments to the budget are reflected in the amended budget.

The General Fund budget is prepared on a basis consistent with generally accepted accounting principles (GAAP). This budget is a financial plan approved in the manner authorized by law, but  not subject to appropriation. The General Fund expenditures exceeded appropriations by $ 5,438. These over‐expenditures were funded by other categories and/or appropriate fund balance, where applicable.
Encumbrances: The District does not utilize encumbrance accounting.

Cash equivalents: For purposes of the statement of cash flows, the Water and Sewer Fund considers all highly liquid investments (including restricted assets) with a maturity of three months or less when purchased to be cash equivalents.

Investments: Investments are stated at their fair value, which is based on quoted market prices. Unrealized gains and losses in fair value are recognized. Certain investments are stated at amortized cost if they have a remaining maturity of one year or less when purchased.

Accounts receivable: Accounts receivable reflected in the Water and Sewer Fund consist  of charges to customers for service including sewer revenues on services which have been rendered whether billed or not. No allowance for doubtful accounts is considered necessary.

Prepaid items: Certain payments reflect costs applicable to a future accounting period and are recorded as prepaid items in both the government‐wide and fund financial statements.

Note 2 ‐ Summary of Significant Accounting Policies (continued)
Capital assets: Capital assets, which include land, buildings, infrastructure, machinery and equipment and construction‐in‐progress, are reported in the governmental or business‐type activities columns in the government‐wide financial statements. All capital assets are valued at historical cost or estimated cost when actual historical cost is not available. Donated capital assets are valued at their estimated fair value on the date donated. The District defines capital assets as assets with an initial individual cost of more than $ 1,000 and an estimated useful life in excess of one year. Depreciation on all capital assets is charged to operations using the straight‐line method over the assets’ estimated service lives, ranging from 5 to 40 years.

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

Due to/from other funds: Short‐term inter‐fund advances, when applicable, are recorded by the advancing fund as a receivable with a corresponding payable recorded by the receiving fund. Repayments reduce the corresponding receivable and payable. Inter‐fund balances are eliminated in the government‐wide financial statements.

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 has one item that qualifies for reporting in this category. It is a deferred charge on refunding reporting in the proprietary fund and government wide statement of net position. A deferred charge on refunding results from the difference in carrying value of refunded debt and its reacquisition price. The amount is deferred and amortized over the shorter of the life of the refunded or refunding debt.

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 items that qualify for reporting in this category.

Net position: Net position is classified in three categories. The general meaning of each is as follows:

Net investment in capital assets ‐ consists of capital assets including restricted capital assets, net of accumulated depreciation and reduced by the outstanding balances of any bonds or other borrowings that are attributable to the acquisition, construction or improvement of those assets.

Restricted ‐ consists of net position with constraints placed on their use either by 1) external groups such as creditors, grantors, contributors, or laws or regulations of other governments, or 2) law through constitutional provisions or enabling legislation.

Unrestricted ‐ all other net position that do not meet the definition of "restricted" or "net investment in capital assets."

Fund balance: The District previously adopted GASB Statement No. 54, Fund Balance Reporting  and Governmental Fund Type Definitions. This statement requires that governmental fund financial statements present fund balances based on classifications that comprise a hierarchy that is based primarily on the extent to which the District is bound to honor constraints on the specific purposes for which amounts in the respective governmental funds can be spent. The classifications used in the governmental fund financial statements are as follows:

Note 2 ‐ Summary of Significant Accounting Policies (continued)

Nonspendable: This classification includes amounts that cannot be spent because they are either (a) not in spendable form or (b) are legally or contractually required to be maintained intact.

Restricted: This classification includes amounts for which constraints have been placed on the use of the resources either (a) externally imposed by creditors (such as through a debt covenant), grantors, contributors, or laws or regulations of other governments, or (b) imposed by law through constitutional provisions or enabling legislation. Debt service resources are to be used for future servicing of the revenue note and are restricted through debt covenants.

Committed: This classification includes amounts that can be used only for specific purposes pursuant to constraints imposed by formal action of the District Board of Supervisors (the “Board”). These amounts cannot be used for any other purpose unless the Board removes or changes the specified use by taking the same type of action (ordinance or resolution) that was employed when the funds were initially committed. This classification also includes contractual obligations to the extent that existing resources have been specifically committed for use in satisfying those contractual requirements.

Assigned: This classification includes amounts that are constrained by the District’s intent to be used for a specific purpose but are neither restricted nor committed. This intent can be expressed by the Board or through the Board delegating this responsibility to the District manager through the budgetary process. This classification also includes the remaining positive fund balance for all governmental funds except for the General Fund.

Unassigned: This classification includes the residual fund balance for the General Fund.

When the District has expenditures for which committed, assigned or unassigned fund balance is available, the District would consider committed funds to be spent first, then assigned funds and lastly unassigned funds.

Property tax calendar (assessments): Property tax assessments are validated with the Broward County Property Appraiser and collected by the Broward County Tax Collector. The key dates in the property tax cycle are as follows:
Preceding Fiscal Year:

Enforceable lien date	January 1 Tax roll validated		July 1
Taxes levied	July 15
Current Fiscal Year:
Beginning of fiscal year for which
taxes have been levied		October 1 Tax bills rendered	November 1 Tax due date			March 31
Delinquent tax lien	April 30
Tax certificates sold	June 1

Note 2 ‐ Summary of Significant Accounting Policies (continued)

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

Date of management review: Subsequent events were evaluated by management through December 27, 2017, which is the date the financial statements were available for issuance.

Note 3 ‐ Deposits and Investments

Deposits: The District’s deposits must be placed with banks and savings and loans which are qualified as public depositories prior to receipt of public monies under Chapter 280, Florida Statutes. These deposits are insured by the FDIC up to $ 250,000. Monies deposited in amounts greater than the insurance coverage are secured by the banks pledging securities with the State Treasurer in the collateral pool. At year end, the carrying amount of the District’s bank deposits was $ 12,682,235 and the bank balance was $ 13,043,864. In addition, the District had $ 500 in petty cash.

Investments: The investment of funds is authorized by  Florida Statutes, which allows the District  to invest in the Local Government Surplus Funds Trust or any intergovernmental investment pool authorized pursuant to the Florida Interlocal Cooperation Act, SEC registered money market funds with the highest credit quality rating, interest‐bearing time deposits or savings accounts in qualified public depositories and direct obligations of the United States Treasury. Certain investments of the enterprise fund are governed by Bond Indentures.
Investments as of September 30, 2017 were as follows:
Investments Measured at Amortized
        Cost	 Maturity     

Money Market mutual funds
State Board of Administration:	$	15,361,956	N/A	
Florida Prime	1,003,121	51 days	
Florida Class	1,002,910	56 days	
Certificates of Deposit	 	257,486 	10/1/2018	
$     17,625,473

These deposits and investments are reflected in the accompanying statement of net position as cash and cash equivalents of $ 27,041,675 and investments of $ 3,266,533.

Credit risk: Florida Statutes require the money market mutual funds held by the District to have  the highest credit quality rating from a nationally recognized rating agency. The money market mutual funds held by the District are rated AAAm by Standard and Poor's and Aaa by Moody's Investors Service.

Interest rate risk: Florida Statutes state that the investment portfolio be structured in such a manner as to provide sufficient liquidity to pay obligations as they come due. The District’s investments are not subject to interest rate risk.

Note 3 ‐ Deposits and Investments (continued)

Custodial credit risk: For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty, the District will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. None of the District’s investments are subject to custodial credit risk.

Restricted cash and cash equivalents: The proprietary fund maintains cash and cash equivalents restricted for the following purposes:

Future debt service	$	1,073,668 Renewal and replacement of
capital assets	 	4,000,757

Total restricted cash
and cash equivalents	$ 	5,074,425

Note 4 ‐ Capital Assets
The following is a schedule of changes in capital assets during the year ended September 30, 2017:

	Balance,				Balance,	
	October 1,
 	2016		
 	Additions		
     Deletions		
     Transfers		September 30,
 	2017		
Governmental Activities:						
Capital assets, not being depreciated:						
Construction in progress	$	‐	$	101,740	$	‐	$	(39,200)	$	62,540	
Land	 	553,200 	 	‐		 	‐		 	‐		 	553,200 	
Total capital assets,						
not being depreciated	 	553,200 	 	101,740 	 	‐		 	(39,200)	 	615,740 	
Capital assets, being depreciated:						
Infrastructure	12,890,273	‐	‐		12,890,273	
Machinery and equipment	 	673,741 	 	43,046 	 	‐		 	39,200 	 	755,987 	
Total capital assets, being depreciated	     13,564,014 	 	43,046 	 	‐		 	39,200 	     13,646,260 	
Less accumulated depreciation for:						
Infrastructure	6,039,021	306,912	‐	‐	6,345,933	
Machinery and equipment	 	659,281 	 	14,568 	 	‐		 	‐		 	673,849 	
Total accumulated depreciation	 	6,698,302 	 	321,480 	 	‐		 	‐		 	7,019,782 	
Total capital assets, being						
depreciated, net	 	6,865,712 	 	(278,434)	 	‐		 	39,200 	 	6,626,478 	
Governmental activities						
capital assets, net	$ 	7,418,912 	$ 	(176,694)	$ 	‐		$ 	‐		$ 	7,242,218 	

Note 4 ‐ Capital Assets (continued)		
	Balance,				Balance,	
	October 1,
 	2016		
      Additions		
     Deletions		
     Transfers		September 30,
 	2017		
Business‐Type Activities:						
Capital assets, not being depreciated:						
Construction in progress	$	1,204,075	$	2,268,256	$	‐	$	(2,652,229)	$	820,102	
Easement	394,998	‐	‐	‐	394,998	
Land	 	361,739 	 	‐		 	‐		 	‐		 	361,739 	
Total capital assets,						
not being depreciated	 	1,960,812 	 	2,268,256 	 	‐		 	(2,652,229)	 	1,576,839 	
Capital assets, being depreciated:						
Infrastructure	125,322,219	255,235	‐	2,646,274	128,223,728	
Buildings	1,615,917	‐	‐	‐	1,615,917	
Machinery and equipment	 	3,816,509 	 	50,290 	 	‐		 	5,955 	 	3,872,754 	
Total capital assets, being depreciated	   130,754,645 	 	305,525 	 	‐		 	2,652,229 	   133,712,399 	
Less accumulated depreciation for:						
Infrastructure	71,055,939	4,009,401	‐	‐	75,065,340	
Buildings	1,427,818	20,691	‐	‐	1,448,509	
Machinery and equipment	 	2,000,691 	 	322,395 	 	‐		 	‐		 	2,323,086 	
Total accumulated depreciation	     74,484,448 	 	4,352,487 	 	‐		 	‐		     78,836,935 	
Total capital assets, being						
depreciated, net	     56,270,197 	 	(4,046,962)	 	‐		 	2,652,229 	     54,875,464 	
Business‐type activities						
capital assets, net	$ 58,231,009 	$ 	(1,778,706)	$ 	‐		$ 	‐		$ 56,452,303 	

Provision for depreciation was charged to functions as follows:

Total provision for depreciation ‐
governmental activities	$ 	321,480	
Total provision for depreciation ‐ business‐type activities	
$ 	4,352,487 	

Note 5 ‐ Commitments

The District has various ongoing construction contracts. As of September 30, 2017, commitments on uncompleted construction contracts totaled $ 865,706.

Note 6 ‐ Debt
Summary of debt of business‐type activities:
Debt at September 30, 2017 included the following:

$ 42,830,000 Series 2016 Water and Sewer Refunding Revenue Bonds, due in annual installments through June 2031, at which time a balloon payment of $ 17,530,000 plus interest will be due;
interest is payable semi‐annually at a fixed rate of 3.05%.	$ 41,755,000

Note 6 ‐ Debt (continued)

The following is a summary of the changes that occurred in the Water and Sewer Fund debt during the year ended September 30, 2017:

Balance,	Balance,	Due
October 1,	Provision for	September 30,	Within
 	2016		 Additions	 Deletions	 Amortization	 	2017		 One Year  Series 2016 Bond	$     42,830,000     $ 	‐	$ 	1,075,000     $ 	122,521      $    41,755,000     $ 	1,545,000 
$     42,830,000     $ 	‐	$ 	1,075,000     $ 	122,521      $    41,755,000     $ 	1,545,000 

Summary of significant bond terms of business‐type activities:

The Bonds are payable from the net revenues of the water and sewer system of the District. The District covenants to maintain utility rates which will be sufficient to pay its operating expenses and 110% of the annual required principal and interest on the Bonds. The Bondholder requires the District to maintain deposits with a minimum required balance of
$ 3,000,000. The Series 2016 Bonds maturing after June 1, 2026 are subject to redemption prior to maturity at the option of the District. The Series 2016 Bonds maturing on June 1, 2017 through June 1, 2031 are subject to mandatory sinking fund redemption as outlined in the Bond Indenture. In addition, the Bonds established a Renewal and Replacement Fund  as discussed in Note 7.
The annual debt service requirements are as follows:

Year Ending
   September 30, 	 	Principal		 	Interest		 	Total		
2018	$	1,545,000	$	1,273,528	$	2,818,528	
2019	1,595,000	1,226,406	2,821,406	
2020	1,640,000	1,177,756	2,817,756	
2021	1,695,000	1,127,736	2,822,736	
2022	1,745,000	1,076,040	2,821,040	
2023‐2027	9,545,000	4,549,382	14,094,382	
2028‐2031	 	23,990,000	 	2,536,682	 	26,526,682	
	$ 	41,755,000	$ 	12,967,530	$ 	54,722,530	
Note 7 ‐ Restricted Net Position				

Proprietary Fund: The 2016 Series Bonds established a Renewal and Replacement Account to be used for the purpose of paying the costs of nonrecurring maintenance expenditures, extensions, improvements or additions to, or the replacement of the water and sewer system. The minimum required balance for the Renewal and Replacement Account is $ 1,000,000. The balance in the Renewal and Replacement Account at September 30, 2017 was $ 4,000,757 which is reflected as restricted net position in the accompanying statement of net position for the proprietary fund.

Note 8 ‐ Compensated Absences Payable

Employees of the District accumulate unused vacation time up to a specified number of hours depending on the employee's length of employment. Accumulated vacation time can be redeemed in cash at retirement. The accumulated liability for the unused compensated absences at September 30, 2017 of the General Fund is considered to be payable from future resources and, accordingly, is only recorded in the governmental activities column of the statement of net position.
The following is a schedule of the changes in compensated absences of the governmental activities:

	Balance,
October 1,	Net
increase	Balance,
September 30,	Due
within	
	 	2016		  (decrease) 	 	2017		    one year 	
Vacation time	$ 	40,094 	$ 	3,974 	$ 	44,068 	$ 	18,530 	
Total	$ 	40,094 	$ 	3,974 	$ 	44,068 	$ 	18,530 	
 	 	 	
The following is a schedule of the changes in compensated absences of the Proprietary Fund:

	Balance,
October 1,	Net
increase	Balance,
September 30,	Due
within	
	 	2016		  (decrease) 	 	2017		    one year 	
Vacation time	$ 	226,549 	$ 	19,748 	$ 	246,297 	$ 	125,337 	
Total	$ 	226,549 	$ 	19,748 	$ 	246,297 	$ 	125,337 	

Note 9 ‐ Retirement Plan

The District has a defined contribution pension plan qualified under Sections 401(a), 403(a), and 501(a) of the Internal Revenue Code. The Plan is administered by independent trustees. All employees who meet the three consecutive months of employment are qualified to participate. All contributions to the plan are fully funded through employer contributions. Total salaries for the year were $ 3,438,220. Total salaries of qualified participants were $ 3,260,780. Each participant’s non‐forfeitable percentage of his employer’s contribution account relating to contributions up to 6% of compensation increases (vests) at 20% for each year of plan participation. The remainder of the employer’s contribution account for contributions in excess of 6% of compensation, increases (vests) immediately.

The District has a deferred compensation plan qualified under Section 457(b) of the Internal Revenue code. The Plan is administered by an independent trustee. All full time employees who meet the three consecutive months of employment and are of 18 years of age are qualified to participate. All contributions to the plan are fully funded through employee payroll deduction. Total salaries for the year were $ 3,438,220. Total salaries of qualified participants were
$ 3,235,754.

Employer contributions for the year, less forfeitures from terminated employees, totaled $ 361,249 and are included in personal services of the General and Water and Sewer Funds.

Note 10 ‐ Post‐Employment Benefits
Funding Policy

The District provides no post‐retirement benefits to retired employees but is required by state law to provide the availability for retirees to enroll in the health plan offered to its employees on a cost reimbursement basis.

The District does not directly make a contribution to provide retired employees with health care benefits. Retirees and their beneficiaries pay the same group rates as are charged to the District  for active employees by its healthcare provider. However, the District’s actuaries, in their actuarial valuation, calculate an offset to the cost of these benefits as an employer contribution, based upon an implicit rate subsidy. This offset equals the total age‐adjusted costs paid by the District or its active employees for coverage of the retirees and their dependents for the year net of the retiree’s own payments for the year.

The District’s annual other post‐employment benefit (OPEB) cost is calculated based on the annual required contribution (ARC) of the employer, an amount actuarially determined in accordance with GASB Statement No. 45 Accounting and Financial Reporting by Employers Benefits Other Than Pensions. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and to amortize any unfunded actuarial liabilities over a period not to exceed 30 years.
The annual OPEB cost for the District for the current year and the related information is as follows:
Required contribution rates:
Employer	Pay‐as‐you‐go	
Plan members	$	‐	
Annual required contribution	48,000	
Interest on net OPEB obligation	11,000	
Adjustment to annual required contribution	 	(23,000)	
Annual OPEB cost	36,000	
Contributions made (credit for implied subsidy)	 	(11,000)	
Increase in net OPEB obligation	25,000	
Net OPEB obligation ‐ beginning of year	 	271,000	
Net OPEB obligation ‐ end of year	$ 	296,000	

The annual OPEB cost, the percentage of annual OPEB cost contributed to the plan and the net OPEB obligation for the fiscal year ended September 30, 2017 was:
Annual OPEB cost	$	36,000
Percentage of OPEB cost contributed			31% Net OPEB obligation	$ 	296,000

Note 10 ‐ Post‐Employment Benefits (continued)
Funded Status and Funding Progress
The funded status of the plan as of April 1, 2016 was as follows:

Actuarial accrued liability
Actuarial value of plan assets

Unfunded actuarial accrued liability (UAAL)	$	243,000
 	‐	
$ 	243,000 	
Funded ratio	‐	
Covered payroll	$ 	3,297,000 	
UAAL as a percentage of covered payroll	7.4%	

The actuarial valuation for the calculation of OPEB involves estimates of the value of reported amounts and assumptions about the probability of events in the future. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared to past expectations and new estimates are made about the future. The required schedule of funding progress presented as required supplementary information is designed to provide multi‐year trend information to show whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits. However, the District has not contributed assets to the plan at this time.
Actuarial Methods and Assumptions

Projections of benefits are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits in force at the valuation date and the pattern of sharing benefit costs between the District and the plan members to that point. Actuarial calculations reflect a long‐term perspective and employ methods and assumptions that are designed to reduce short‐term volatility in actuarial accrued liabilities and the actuarial value of assets. Significant methods and assumptions were as follows:
Actuarial valuation date	April 1, 2016
Actuarial cost method	Projected unit credit
Amortization method	15‐year open period; level dollar payment
Actuarial assumptions:
Investment rate of return	4.00% per annum *

Healthcare cost trend rates:
Select rates	8.00% for 2016/2017 graded to 5.50% for 2021/2022

Ultimate rate	5.00% per annum

* Includes inflation at 2.75% per annum

Note 11 ‐ Risk Management

The District is exposed to various risks of losses related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees, and natural disasters. The District carries commercial insurance to handle these various risks of losses.

Claims, expenditures, and liabilities would have been reported if it were probable that a loss in excess of policy limits had occurred and the amount of that loss could be reasonably estimated.

REQUIRED SUPPLEMENTAL INFORMATION

Coral Springs Improvement District Schedule of Funding Progress
Other Post‐Employment Benefits Plan
September 30, 2017	

	Actuarial		
	Accrued				UAAL as a	
	Actuarial	Liability	Unfunded			Percentage	
Actuarial	Value of	(AAL)	AAL	Funded	Covered	of Covered	
Valuation	Assets	Entry Age	(UAAL)	Ratio	Payroll	Payroll	
 	Date		 	(a)		 	(b)		 	(b‐a)		 	(a/b)		 	(c)*		   ((b‐a)/c) 	
10/1/2012	$	‐	$	295,000	$	295,000	0%	$ 2,742,000	10.8%	
10/1/2014	$	‐	$	249,000	$	249,000	0%	$ 2,906,000	8.6%	
4/1/2016	$	‐	$	243,000	$	243,000	0%	$ 3,297,000	7.4%	

* Covered payroll is for the calendar year period used for the actuarial valuation.

OTHER FINANCIAL INFORMATION

Coral Springs Improvement District
Schedule of Operating Expenses by Department ‐ Proprietary Fund
For the Year Ended September 30, 2017	

Water and
  Sewer Fund

Administrative Operations:
Personal services	$	1,245,909
Materials, supplies and services	468,806
Provision for depreciation	 	20,127 

Total administrative operations	 	1,734,842

Plant Operations:
Personal services	1,998,442
Materials, supplies and services	1,883,067
Provision for depreciation	 	3,451,152

Total plant operations	 	7,332,661 

Field Operations:
Personal services	1,057,010
Materials, supplies and services	524,962
Provision for depreciation	 	881,208

Total field operations	 	2,463,180 

Total operating expenses	$      11,530,683 

OTHER REPORTS OF INDEPENDENT AUDITORS

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

The Board of Supervisors
Coral Springs Improvement District Coral Springs, Florida

We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business‐type activities, and each major fund of Coral Springs Improvement District (the “District”), as of and for the year ended September 30, 2017, and the related notes to the financial statements, which collectively comprise the District’s basic financial statements, and have issued our report thereon dated December 27, 2017.
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 our 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 was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

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Coral Springs Improvement District

Compliance and Other Matters

As part of obtaining reasonable assurance about whether the District's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.
Purpose of this Report

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

KEEFE McCULLOUGH

Fort Lauderdale, Florida December 27, 2017

INDEPENDENT AUDITOR’S REPORT TO DISTRICT MANAGEMENT

The Board of Supervisors
Coral Springs Improvement District Coral Springs, Florida
Report on the Financial Statements

We have audited the financial statements of Coral Springs Improvement District (the "District"), as of and for the year ended September 30, 2017, and have issued our report thereon dated December 27, 2017.
Auditor’s Responsibility

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

We have issued our Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of the Financial Statements Performed in accordance with Government Auditing Standards and Independent Auditor’s Report on an examination conducted in accordance with AICPA 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 December 27, 2017, 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 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. Coral Springs Improvement District was established under the laws of the State of Florida in Chapter 70‐617, as amended. The District does not have any component units.

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Financial Condition and Management

Section 10.554(1)(i)5.a. and 10.556(7), Rules of the Auditor General, require us to apply appropriate procedures and communicate the results of our determination as to whether or not 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.
Annual Financial Report

Section 10.554(1)(i)5.b. and 10.556(7), Rules of the Auditor General, requires us to apply appropriate procedures and communicate the results of our determination as to whether the annual financial report for the District for the fiscal year ended September 30, 2017 filed with the Florida Department of Financial Services pursuant to Section 218.32(1)(a), Florida Statutes, is in agreement with the annual financial audit report for the fiscal year ended September 30, 2017. In connection with our audit, we determined that these two reports were in agreement.
Monthly Financial Statements

Section 10.554(1)(i)6.a and 10.556(9), 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 provided monthly financial statement(s) to its governing board and made such monthly statement(s) available for public access on its Web site. In connection with our audit, we determined that the District provided monthly financial statement(s) to its governing board and made such monthly statement(s) available for public access on its Web site.
Transparency

Section 10.554(1)(i)6.b. and 10.556(9), Rules of the Auditor General, require us to apply appropriate procedures and communicate the results of our determination as to whether the District provided a link on its Web site to the Florida Department of Financial Service’s Web site to view the District’s annual financial report submitted to the Department. In connection with our audit, we determined that the District provided a link on its Web site to the Florida Department of Financial Service’s Web site.

Section 10.554(1)(i)6.c. and 10.556(9), Rules of the Auditor General, require us to apply appropriate procedures and communicate the results of our determination as to whether the District posted its tentative and final budgets on its Web site. In connection with our audit, we determined that the District posted its tentative and final budgets on its Web site.

Additional Matters

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

KEEFE McCULLOUGH

Fort Lauderdale, Florida December 27, 2017

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

To the Board of Supervisors,
Coral Springs Improvement District Coral Springs, Florida

We have examined Coral Springs Improvement District (the “District”) compliance with the requirements of Section 218.415, Florida Statutes, Local Government Investment Policies, during the year ended September 30, 2017. 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, 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, the District complied, in all material respects, with the aforementioned requirements for the year ended September 30, 2017.

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.

KEEFE McCULLOUGH

Fort Lauderdale, Florida December 27, 2017

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