Silverleaf Community Development District
FINANCIAL STATEMENTS

September 30, 2018

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Silverleaf Community Development  District
Table of Contents September 30, 2018

REPORT
Independent Auditors' Report
FINANCIAL STATEMENTS
Management's Discussion And Analysis (required supplemental information)	3
Basic Financial Statements
Government-Wide Financial Statements
Statement of Net Position	8
Statement of Activities	9
Fund Financial Statements
Balance Sheet - Governmental Funds	10
Reconciliation of the Balance Sheet of Governmental Funds to the Statement
of Net Position	11

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Statement of Revenues, Expenditures and Changes in Fund Balances­
Governmental Funds	12

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Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balances of Governmental Funds to the Statement of Activities	13
Notes to Financial Statements	14
Required Supplemental Information (other than MD&A)
Budget to Actual Comparison Schedule - General Fund	23
Independent Auditors' Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed
in Accordance With Government Auditing Standards	24
Management Letter	26
Independent Accountants' Report on Compliance with Section 218.415 Florida Statutes	28
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INGRAM

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

CPAs and Advisors

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

INDEPENDENT AUDITORS' REPORT

To the Board of Supervisors
Silverleaf Community Development District Manatee County, Florida

Report on Financial Statements

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

Management's Responsibilityfor the Financial Statements

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

Auditors' Responsibility

Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by 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 auditors' judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

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

Opinions

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities and each major fund of the District as of September 30, 2018, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Other Matters

Required Supplementary Information

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Accounting principles generally accepted in the United States of America require that the management's discussion and analysis and budgetary comparison information, as listed in the table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued a report dated September 18, 2019, on our consideration of the District's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the District's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the District's internal control over financial reporting and compliance.

CARR, RIGGS & INGRAM, LLC
Miramar Beach, Florida September 18, 2019

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Management's Discussion And Analysis

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Silverleaf Community Development District Management's Discussion and Analysis

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

FINANCIAL HIGHLIGHTS

At September 30, 2018, the assets of the District exceeded its liabilities by approximately
$1.7 million.
During the fiscal year ended September 30, 2018, the District issued Special Assessment Revenue Bonds, Series 2018 totaling approximately $6.1 million, and incurred approximately $266,000 of bond issuance costs.
During the fiscal year ended September 30, 2018, the District incurred approximately $2.5 million of capital outlay expenditures and conveyed capital assets totaling approximately
$1.8 million to Manatee County.

USING THE ANNUAL REPORT

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

Reporting the District as a Whole

Our analysis of the District as a whole begins on page 4. One of the most important questions asked about the District's finances is, "Is the District as a whole better off or worse off as a result of the year's activities?" The Statement of Net Position and the Statement of Activities report information about the District as a whole and about its activities in a way that helps answer this question. These statements include all assets and liabilities using the accrual basis of accounting, which is similar to the accounting used by most private-sector companies. All of the current year's revenues and expenses are taken into account regardless of when cash is received or paid.
These two statements report the District's net position and related changes during the current year. You can think of the District's net position - the difference between assets and liabilities and deferred inflows of resources - as one way to measure the District's financial health, or financial position. Over time, increases or decreases in the District's net position are one indicator of

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Silverleaf Community Development District Management's Discussion and Analysis

whether its financial health is improving or deteriorating. You will need to consider other nonfinancial factors, however, such as changes in the District's assessment base and the condition of the District's infrastructure, to assess the overall health of the District.

Reporting the District's Most Significant Funds

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

THE DISTRICT AS A WHOLE

September 30,
Assets	2018	2017	Change	
Current and other assets	$	4,308,851	$	1,274,349	$	3,034,502	
Capital assets, net	7,742,119	6,954,855	787,264	
TotaI assets	$	12,050,970	$	8,229,204	$	3,821,766	
Liabilities				
Current liabilities	$	739,153	$	737,632	$	1,521	
Other liabilities	9,645,597	5,340,255	4,305,342	
 	Total liabilities	10,384,750	6,077,887	4,306,863	
Net position			
Net investment in capital assets	2,778,324	1,808,602	969,722	

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

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Restricted for:
Debt service	456,536	308,953	147,583

    Unrestricted		(1,614,774)	33,762	(1,648,536)	
Total net position	1,666,220	2,151,317	(485,097)	
Total liabilities and net position	$	12,050,970	$	8,229,204	$	3,821,766	

Capital projects	46,134	46,134

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Silverleaf Community Development District Management's Discussion and Analysis
For more detailed information, see the accompanying Statement of Net Position.
During the fiscal year ended September 30, 2018, total assets and liabilities increased over the prior year by approximately $3.8 million and $4.3 million, respectively. The increase in assets and liabilities is primarily due to the issuance of the Series 2018 Bonds and the related capital project which was ongoing at fiscal year-end.

The following schedule compares the Statement of Activities for the current and previous fiscal year.

Revenues:				
Charges for services	$	2,142,438	$	1,936,894	$	205,544	
Grants and contributions	7,551	1,501	6,050	
Total revenues	2,149,989	1,938,395	211,594	
Expenses:
General government	
84,905	
80,968	
3,937	
Maintenance and operations	30,675	32,794	(2,119)	
Bond issue costs
Capital asset conveyance
    Interest		265,625
1,757,082
496,799	
390,562	265,625
1,757,082
 	106,237 	
   Total expenses	2,635,086	504,324	2,130,762	
Change in net position	(485,097)	1,434,071	(1,919,168)	
Net position, beginning of year	2,151,317	717,246	1,434,071	
Net position, end of year	$	1,666,220	$	2,151,317	$	(485,097)	

For more detailed information, see the accompanying Statement of Activities.	

Year ended September 30,		2018	2017	Change Program revenues:

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Revenues and expenses increased over the prior year by approximately $212,000 and $2.1 million, respectively. The increase in revenues is primarily due to prepayments associated with the sale of individual lots. The increase in expenses is primarily due to the cost of issuance on the Series 2018 Bonds and conveyance of capital assets to the County during the year. The overall result was a
$485,097 decrease in net position for fiscal year 2018.

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I	THE DISTRICT'S FUNDS
As the District completed the year, its governmental funds (as presented in the balance sheet on page 10) reported a combined fund balance of $3,937,077, which is an increase over last year's balance that totaled $755,926. Significant transactions are discussed below.
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Silverleaf Community Development District Management's Discussion and Analysis

During the fiscal year ended September 30, 2018, the District issued Special Assessment Revenue Bonds, Series 2018 totaling approximately $6.1 million, and incurred approximately $266,000 of bond issuance costs.
During the fiscal year ended September 30, 2018, the District incurred approximately $2.S million of capital outlay expenditures.
During the fiscal year ended September 30, 2018, the District received advances from the Developer totaling approximately $917,000 and repaid the Developer approximately $1.4 million for funds advanced to the District for construction.
The overall increase in fund balance for the year ended September 30, 2018 totaled approximately
$3.2 million.

Capital Assets

CAPITAL ASSET AND DEBT ADMINISTRATION

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At September 30, 2018, the District had approximately $7.7 million invested in capital assets. This amount represents an increase of approximately $870,000 over the fiscal year 2017 total.
A listing of capital assets by major category for the current and prior year follows:

September30,	2018	2017	Change	
Capital assets not being depreciated	$	7,742,119	$	6,954,855	$	787,264	
Net capital assets	$	7,742,119	$	6,954,855	$	787,264	
More information about the District's statements.	capital assets is presented in Note 3	to the financial	
Debt			

At September 30, 2018, the District had approximately $9.8 million of outstanding debt. This amount represents a net increase of approximately $4.3 million over the fiscal year 2017 total.

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Silverleaf Community Development District Management's Discussion and Analysis
A listing of debt amounts outstanding for the current and prior year is as follows:
September 30,	2018	2017	Change
Capital Improvement Revenue Bonds:
Series 2014 A-1	$	900,000	$	2,035,000	$ {1,135,000)	
Series 2014 A-2	2,790,000	2,990,000	{200,000)	
Series 2018 A-1
Series 2018 A-2	2,275,000
3,855,000		2,275,000
3,855,000	
Due to developer		451,807	(451,807)	
	$	9,820,000	$	5,476,807	$ 4,343,193 	
More information about the District's long-term debt is presented in Note 4 to the financial statements.

GOVERNMENTAL FUNDS BUDGETARY HIGHLIGHTS

An Operating budget was established by the governing board for the District pursuant to the requirements of Florida Statutes. The budget to actual comparison for the General Fund, including the original budget and final adopted budget, is shown at page 23.

The District experienced favorable variances in revenues and expenses as compared to the budget in the amount of $5,839 and $32,648, respectively. The variance in expenses occurred primarily due to anticipated operating expenditures, such as landscape maintenance, that were not incurred during the year.
I	FUTURE FINANCIAL FACTORS

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

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I	CONTACTING THE DISTRICT'S FINANCIAL MANAGEMENT

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

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Basic Financial Statements

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Silverleaf Community Development District
Statement of Net Position
September 30,	2018
Governmental
Activities
Assets

Accounts receiveable	1,288	
Interest receivable	1,027	
Prepaid expenses	1,595	
Capital assets:
Not being depreciated	
7,742,119	
Total assets	
12,050,970	

Liabilities		
Accounts payable	84,921	
Retainage payable	286,853	
Accrued interest payable	247,379	
Non-current liabilities:
Due within one year	
120,000	
Due in more than one year	9,645,597	
Total liabilities	10,384,750	

Net position		
Net investment in capital assets	2,778,324	
Restricted for:
Debt service	
456,536	
Capital projects	46,134	

Cash and cash equivalents	$	4,304,941

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Unrestricted	{1,614,774)
Total net position	$	1,666,220

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The accompanying notes are an integral part of these financial statements.
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Silverleaf Community Development District
Statement of Activities

Functions/Programs Primary government:
Governmental activities:

Program Revenues Operating	Capital
Charges for		Grants and	Grants and Expenses	Services	ContributionsContributions

Net (Expense) Revenue and Changes in Net Position

Governmental Activities

General government Maintenance

$	(84,905)  $	113,178	$	-   $	-	$

28,273

and operations	(30,675)	40,889			10,214	
Bond issue costs	{265,625)				(265,625)	
Capital asset conveyance	(1,757,082)				(1,757,082)	
Interest	(496,799)	1,988,371	1,695	5,856	1,499,123	

Total governmental activities

$   (2,635,086)    $ 2,142,438     $	1,695   $	5,856

(485,097)

Change in net position	(485,097)	
Net position - beginning of year	2,151,317	
Net position - end of year	$ 1,666,220	

The accompanying notes are an integral part of these financial statements.
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Silverleaf Community Development District Balance Sheet - Governmental Funds

September 30,	2018

Tota Capital	Governmental

General	Debt Service	Projects	Funds
Assets
Cash and cash equivalents	$	95,741	$	984,964	$   3,224,236	$	4,304,941
Accounts receivable	1,288	1,288
Interest receivable	232	795	1,027

Due from other funds		1,959		1,959	
Total assets	$	98,624	$	987,155	$ 3,225,031	$	4,310,810	
Liabilities and fund balances					
Liabilities
Accounts payable Retainage payable Due to other funds
Total liabilities	$	7,950
1,959
9,909	-	$	76,971
286,853

363,824	$	84,921
286,853
1,959
373,733	
i I I I	Fund balances Nonspendable
Restricted for debt service Restricted for capital projects Unassigned
Total fund balances
Total liabilities and fund balances	

$	
1,595

87,120
88,715

98,624	

$	

987,155

987,155

987,155	

$	

2,861,207

2,861,207

3,225,031	

$	
1,595
987,155
2,861,207
87,120
3,937,077

4,310,810	

Prepaid expenditures	1,595	1,595

$

The accompanying notes ore an integral part of these financial statements.
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Silverleaf Community Development District Reconciliation of the Balance Sheet to the Statement of Net Position

September 30,	2018	
Total fund balances, governmental funds	$	3,937,077	
Capital assets used in governmental activities are not financial resources and therefore are not reported in the fund financial statements.	
7,742,119	

Liabilities not due and payable from current resources, including accrued interest, are not reported in the fund financial statements.
Total net position - governmental activities	$

(10,012,976)

1,666,220

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The accompanying notes are on integral port of these financial statements.
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Silverleaf Community Development District Statement of Revenues, Expenditures and Changes in Fund Balances -
Governmental Funds

Year ended September 30,	2018

Tota

Revenues

Debt		capital	Governmental General	Service	Projects		Funds

Assessments	$  149,179	$  611,176	$	-	$	760,355

4,435
453

4,435

Prepayment revenue	1,377,195	1,377,195
Developer contributions
Interest  and other revenues	1,695	5,856	8,004
Total revenues	154,067	1,990,066	5,856	2,149,989

Expenditures

General government	84,905		84,905	
Maintenance and operations	30,675		30,675	
Debt service:				
Principal
Interest		1,335,000
386,480	1,335,000
386,480	
Bond issue costs	265,625	265,625	
Capital outlay	2,544,346	2,544,346	
Developer advance repayment	1,368,393	1,368,393	
Total expenditures	115,580	1,721,480	4,178,364	6,015,424	

Excess {deficit) of revenues					
over expenditures	38,487	268,586	{4,172,508)	(3,865,435)	

Other financing sources (uses)					
Transfers in	(1,198)		(40,700)	(41,898)	
Transfers out		41,898		41,898	
Developer advances			916,586	916,586	
Bond issuance proceeds			6,130,000	6,130,000	
Total other financing sources (uses)	(1,198)	41,898	7,005,886	7,046,586	
Net change in fund balances	37,289	310,484	2,833,378	3,181,151	
Fund balances, beginning of year	51,426	676,671	27,829	755,926	
Fund balances, end of year	$	88,715	$ 987,155	$ 2,861,207	$	3,937,077	

Current:

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The accompanying notes are an integral part of these financial statements.
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Silverleaf Community Development District Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Fund to the Statement of Activities

Year ended September 30;

Net change in fund balances - governmental fund	$

Capital outlay, reported as expenditures in the governmental funds, is shown as capital assets on the Statement of Net Position.
Governmental funds report principal payments on bonds when debt is paid, whereas these payments are eliminated in the Statement of Activities and recognized as a decrease in bonds payable in the Statement of Net Position.
Amortization of original issue discount is not recognized in the governmental fund statements but is reported as an expense in the Statement of Activities.

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

repayments in the current year.
Bond proceeds which are reported as other financing sources in the governmental funds are recognized as long-term liabilities in the Statement of	451,807		
Net Position.	(6,130,000)		
The conveyance of capital assets has no impact on the fund level financial statements but is treated as an expense in the government-wide Statement of Activities.	

(1,757,082)		
Change in net position of governmental activities	$	(485,097)		

Developer advances and repayments are recorded as other financing sources and uses on the fund level financial statements but are treated as a liability on the Statement of Activities. This is the amount that advances exceed

2018

3,181,151

2,544,346

1,335,000

(2,149}

(108,170)

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

NOTE 1: NATURE OF ORGANIZATION

The Silverleaf Community Development District (the "District") was established on December 7, 2007 pursuant to the Uniform Community Development Act of 1980, otherwise known as Chapter 190, Florida Statues, by Manatee County Ordinance No. 06-32. The District has among other things, the power to manage basic services for community development, power to borrow money and issue bonds, and to levy and assess non-ad valorem assessments for the financing and delivery of capital infrastructure.

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

The District is governed by a Board of Supervisors ("Board"), which is comprised of five members. The Supervisors are elected on an at large basis by the owners of the property within the District. All of the Supervisors are currently affiliated with the Developer of the District, Resource Conservation of Manatee, LLC. The Board of Supervisors of the District exercise all powers granted to the District pursuant to Chapter 190, Florida Statutes.
The Board has the final responsibility for:
Allocating and levying special 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.

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

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NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accounting policies of the District conform to GAAP as applicable to governments in accordance with those promulgated by GASS. The following is a summary of the more significant policies:
I	Government-wide and Fund Financial Statements

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I	The basic financial statements include both government-wide and fund financial statements.
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Silverleaf Community Development District
Notes to Financial Statements

NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

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

The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of the related cash flows. Assessments are recognized as revenues in the year for which they are levied. Grants and other similar items are to be recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.
Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the District considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures are recorded only when payment is due.
Assessments, including debt service assessments along with operation and maintenance assessments, are non-ad valorem special assessments imposed on all lands located within the District and benefited by the District's activities, operation and maintenance. Assessments are levied and certified for collection by the District 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 are imposed upon certain lots and lands as described in each resolution imposing the special assessment for each series of bonds issued by the District.

Silverleaf Community Development District
N otes to Financial Statements

NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Assessments and interest associated with the current fiscal period are all considered to be susceptible to accrual and have been recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable and available only when cash is received by the District.
The District reports the following major governmental funds:
General Fund - The General Fund is the primary operating fund of the District. It is used to account for all financial resources except those required to be accounted for in other funds.
Debt Service Fund - The Debt Service Fund is used to account for the accumulation of resources for the annual payment of principal and interest on long-term debt.
Capital Projects Fund - The Capital Projects Fund accounts for the financial resources to be used in the acquisition or construction of major infrastructure within the District to be financed with the bonds that were issued in fiscal year 2014 and 2018.
When both restricted and unrestricted resources are available for use, it is the District's policy to use restricted resources first, then unrestricted resources as they are needed. When committed, assigned, or unassigned resources are available for use in the governmental fund financial statements, it is the government's policy to use committed resources first, followed by assigned resources, then unassigned resources as needed.
For the year ended September 30, 2018, the District does not report any proprietary funds. As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements.

Cash, Deposits and Investments

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

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Under this method, all the District's deposits are fully insured or collateralized at the highest level of security as defined by GASB, Statement Number 40, Deposits and Investment Disclosures (An Amendment of GASB, Statement Number 3).
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NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

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

Capital Assets

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

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

Property, plant and equipment of the primary government will be depreciated using the straight­ line method over the estimated useful lives. Estimated lives for financial reporting purposes once will be determined with items are placed into service.

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

Deferred  Outflows/In/lows  of Resources

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

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

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NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Long-Term Obligations

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

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

Net position in the government-wide financial statements represents the difference between assets and deferred outflows of resources and liabilities and deferred inflows of resources and is categorized as net investment in capital assets, restricted or unrestricted. Net investment in capital assets represents assets related to infrastructure and property, plant and equipment, net of any related debt. Restricted net position represents the net position restricted by creditors or laws and regulations of other governments.
Governmental fund equity is classified as fund balance. Fund balance is further classified as nonspendable, restricted, committed, assigned, or unassigned. Nonspendable fund balance cannot be spent because of its form. Restricted fund balance has limitations imposed by creditors, grantors, or contributors or by enabling legislation or constitutional provisions. Committed fund balance is a limitation imposed by the District board through approval of resolutions. Assigned fund balance is a limitation imposed by a designee of the District board. Unassigned fund balance in the General Fund is the net resources in excess of what can be properly classified in one of the above four categories. Negative unassigned fund balance in other governmental funds represents excess expenditures incurred over the amounts restricted, committed, or assigned to those purposes.

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0	NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Budgets

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The District is required to establish a budgetary system and an approved annual budget. Annual budgets are legally adopted on a basis consistent with GAAP for the General Fund. Any revision to the budget must be approved by the District Board. The budgets are compared to actual expenditures. In instances where budget appropriations and estimated revenues have been revised during the year, budget data presented in the financial statements represent final authorization amounts.
The District follows these procedures in establishing the budgetary data reflected in the financial statements:

Each year the District Manager submits to the District Board a proposed operating budget for the fiscal year commencing the following October 1.
A public hearing is conducted to obtain comments.
Prior to October 1, the budget is legally adopted by the District Board.
All significant changes must be approved by the District Board.
Budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America.

Prepaid Expenses

Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid expenses and prepaid expenditures on the Statement of Net Position and Balance Sheet
- Governmental Funds, respectively. These items will be expensed over the applicable usage period.

NOTE 3: CAPITAL ASSETS

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The following is a summary of changes in the capital assets for the year ended September 30, 2018:

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Beginning	Ending
Balance	Additions	Reductions	Balance
Governmental Activities:

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Capital assets not being depreciated
Infrastructure under construction	$ 6,954,855	$ 2,544,346	$  1,757,082	$ 7,742,119
Governmental activities capital assets, net	$ 6,954,855	$ 2,544,346	$  1,757,082	$ 7,742,119

The total projected cost of the infrastructure improvements has been estimated at approximately
$17.2 million. These amounts were to be funded with proceeds from Series 2014 and Series 2018

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NOTE 3: CAPITAL ASSETS (Continued)

bonds with the remainder funded by the Developer. The project is to be completed in phases with expected completion date of March 2019. During the year ended September 30, 2018, the District conveyed completed infrastructure totaling $1,757,082.

NOTE 4: BONDS PAYABLE

On January 24, 2014, the District issued $7,570,000 of Capital Improvement Revenue Bonds, Series 2014 consisting of $4,195,000 Series 2014A-1 Bonds and $3,375,000 of Series 2014A-2 Bonds with interest rates from 6.50% to 7% and 6.75%, respectively. These bonds were issued to finance the acquisition and construction of certain improvements for the benefit of the District. Interest is paid semiannually on each May 1 and November 1. Principal payments on the Series 2014A-1 Bonds are made serially commencing on May 1, 2015 through May 1, 2044. Principal payments on the Series 2014A-2 Bonds are made serially commencing on May 1, 2017 through May 1, 2044.

On March 2, 2018, the District issued $6,130,000 of Capital Improvement Revenue Bonds, Series 2018 consisting of $2,275,000 Series 2018A-1 Bonds and $3,855,000 of Series 2018A-2 Bonds with interest rates from 5.25% to 5.90% and 5.90%, respectively. These bonds were issued to finance the acquisition and construction of certain improvements for the benefit of the District. Interest is paid semiannually on each May 1 and November 1. Principal payments on the Series 2018A-1 Bonds are made serially commencing on May 1, 2019 through May 1, 2048. Principal payments on the Series 2018A-2 Bonds are made serially commencing on May 1, 2021 through May 1, 2048.

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The Bond Indentures have 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 levy special assessments in annual amounts adequate to provide payment of debt service and to meet the reserve requirements. The District is in compliance with the requirements of the bond indentures.

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The Bond Indentures require that the District maintain adequate funds in the reserve accounts to meet the debt service reserve requirements as defined in the Indentures. The District was in compliance with the requirements at September 30, 2018.
The balance of the long-term bonds at September 30, 2018 is summarized as follows:

September 30,	2018	
S2014 Bond principal balance	$	3,690,000	
S2018 Bond principal balance	6,130,000	
less S2014 unamortized bond discount	(54,403)	
Net balance	$	9,765,597	

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NOTE 4: BONDS PAYABLE (Continued)

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

Governmental Activities
Bonds Payable:
Series 2014 A-1	$

2,035,000 $

-	$ 1,135,000	$	900,000	$	45,000

Series 2014 A-2	2,990,000	200,000	2,790,000	45,000
Series 2018 A-1	2,275,000	2,275,000	30,000
Series 2018 A-2	3,855,000	3,855,000
Due to developer	451,807	916,586	1,368,393		
	$ 5,476,807	$ 7,046,586	$ 2,703,393	$ 9,820,000	$	120,000	

Year Ending September 30,	
Principal	
Interest	Total Debt
Service	
2019
2020	$	120,000
120,000	$	658,020
586,171	$	778,020
706,171	
2021
2022	190,000
205,000	578,633
566,925	768,633
771,925	
2023	215,000	554,261	769,261	
2024 - 2028	1,300,000	2,562,125	3,862,125	
2029 - 2033	1,625,000	2,143,338	3,768,338	
2034 - 2038	1,770,000	1,635,145	3,405,145	
2039 - 2043	2,360,000	1,016,603	3,376,603	
2044 - 2048	1,915,000	351,935	2,266,935	
	$	9,820,000	$	10,653,156	$	20,473,156	

NOTE 5: RISK MANAGEMENT				

At September 30, 2018, the scheduled debt service requirements on long-term debt were as follows:

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The District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; and natural disasters. The District maintains commercial insurance coverage to mitigate the risk of loss. Coverage may not extend to all situations. Management believes such coverage is sufficient to preclude any significant uninsured losses to the District. As of the date of this report, the District has not filed any claims against this commercial coverage.

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0	NOTE 6: MANAGEMENT COMPANY
The District has contracted with a management company to perform management advisory services, which include financial and accounting advisory services. Certain employees of the management company also serve as officers (Board appointed non-voting positions) of the District. Under the agreement, the District compensates the management company for management, accounting, financial reporting, and other administrative costs.

NOTE 7: CONCENTRATION

A significant portion of the District's future activity is dependent upon the continued involvement of the Developer, Resource Conservation of Manatee, LLC., the loss of which could have a material adverse effect on the District's operations.
The District directly assessed the Developer approximately $70,000 for operations and maintenance as well as approximately $496,000 for debt service costs on property owned within the District's boundaries. In addition, the Developer committed to advance approximately $917,000 to help fund the construction of infrastructure. Prior to year-end, the District repaid the Developer approximately $1.4 million for funds advanced to the District in the current and prior year.

NOTE 8: SUBSEQUENT EVENT

On February 20, 2019, the District issued $7,980,000 of Capital Improvement Revenue Bonds, Series 2019 consisting of $2,890,000 Series 2019A-1 Bonds and $5,090,000 of Series 2019A-2 Bonds with interest rates from 4.75% to 5.60% and 5.60%, respectively. These bonds were issued to finance the acquisition and construction of certain improvements for the benefit of the District. Interest is paid semiannually on each May 1 and November 1.

Principal on the Series 2019 Bonds is to be paid serially commencing May 1, 2020 through May 1, 2049. The Series 2019 Bonds are subject to optional redemption beginning May 1, 2020 and to extraordinary mandatory redemption prior to maturity in the manner determined by the Bond Registrar if certain events occur as outlined in the Bond Indenture.
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Required Supplemental Information (Other Than MD&A)

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D C
Year ended September 30,

Revenues
Assessments
Developer contributions Interest and other revenues

Silverleaf Community Development District Budget to Actual Comparison Schedule - General Fund

2018

Original and Final	Variance with
Budget	Actual Amounts	Final Budget

4,435

4,435
453

$	148,228   $	149,179	$	951

Total revenues	148,228	154,067	5,839	

Expenditures
General government	
88,650	
84,905	
3,745	
Maintenance and operations	59,578	30,675	28,903	
Total expenditures	148,228	115,580	32,648	
Excess of revenues over expenditures	$	-	$	38,487	$	38,487

I I

CRI

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INGRAM

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

CPAs and Advisors

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

. INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE ANO OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENTAUDITING STANDARDS
To the Board of Supervisors
Silverleaf Community Development District Manatee County, Florida
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities and each major fund of Silverleaf Community Development District (hereinafter referred to as the "District"), as of and for the year ended September 30, 2018, and the related notes to the financial statements, which collectively comprise the District's basic financial statements, and have issued our report dated September 18, 2019.
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.

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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 possib!Uty 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. We did identify a deficiency in internal control described below as item IC2018-001 that we consider to be a material weakness.
IC2018-001: Bond discount
Condition: As part of our audit procedures, we identified approximately $123,000 of

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0		underwriter's discount that was not recorded on the District's fund level financial statements as of September 30, 2018.

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Criteria: Internal controls relating to the accounting process related to bond issuances should be in place to provide reasonable assurance that bond issuance related costs are properly recorded.
Cause: The District only recorded the cash activity ofthe bond issuance.
Effect: Bond issuance costs and long-term debt on the financial statements were understated by approximately $123,000.
Recommendation: We recommend the District record the face amount of bond proceeds and related issuance costs.
Management Response: The District has already taken further steps to ensure that this oversight is avoided in the future.
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

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The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the result 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.

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I	CARR, RIGGS & INGRAM, LLC
Miramar Beach, Florida September 18, 2019

CRI

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IN GRAM
CPAs and Advisors

Carr, Riggs& Ingram, LLC 500 Grand Boulevard
Suite 210
Miramar Beach, Florida 32550
(8501837-3141
(850) 654-4619 (laid
CRlcpa.com

MANAGEMENT LETTER
To the Board of Supervisors
Silverleaf Community Development District Manatee County, Florida
Report on the Financial Statements
We have audited the financial statements of the Silverleaf Community Development District ("District") as of and for the fiscal year ended September 30, 2018, and have issued our report thereon dated September 18, 2019.
Auditors' Responsibility

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

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We have issued our Independent Auditors' Report on Internal Control over Financial Reporting and Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance with Government Auditing Standards and Independent Accountants' Report on an examination conducted in accordance with 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 September 18, 2019, should be considered in conjunction with this management letter.

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Prior Audit Findings

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Section 10.S54(1)(i)l., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. There were no findings or recommendations made in the preceding annual audit report.

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

Financial Condition and Management

Section 10.554(1)(i)S.a. and 10.556(7), Rules of the Auditor General, require that we 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)S.b. 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.

J

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

Section 10.554(1)(i)3., Rules of the Auditor General, requires 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, the Board of Supervisors, and applicable management, and is not intended to be and should not be used by anyone other than these specified parties.

CARR, RIGGS & tNGRAM, LLC
Miramar Beach, Florida September 18, 2019

1
CRI

�l:G::
INGRAM

Carr, Riggs & Ingram, LLC 500 Grand Boulevard
Suite 210

CPAs and Advisors

Miramar Beach, Florida 32550

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

INDEPENDENT ACCOUNTANTS' REPORT

To the Board of Supervisors
Silverleaf Community Development District Manatee County, Florida
We have examined Silverleaf Community Development District's compliance with the requirements of Section 218.415, Florida Statutes, Local Government Investment Policies, during the year ended September 30, 2018. Management is responsible for the District's compliance with those requirements. ·· Our responsibility is to express an opinion on the District's compliance based on our examination.
Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether the District complied, in all material respects, with the specified requirements referenced above. An examination involves performing procedures to obtain evidence about whether the District complied with the specified requirements. The nature, timing, and extent of the procedures depend on our judgment, including an assessment of the risks of material noncompliance, whether due to fraud or error. We believe the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion.
Our examination does not provide a legal determination on the District's compliance with specified requirements.
In our opinion, the District complied, in all material respects, with the aforementioned requirements for the year ended September 30, 2018.
This report is intended solely for the information and use of Board of Supervisors, management and the State of Florida Auditor General and is not intended to be and should not be used by anyone other than these specified parties.

CARR, RIGGS & INGRAM, LLC
Miramar Beach, Florida September 18, 2019

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