Armstrong Community Development District ANNUAL FINANCIAL REPORT
September 30, 2020

Armstrong Community Development District ANNUAL FINANCIAL REPORT
September 30, 2020 TABLE OF CONTENTS

Page Number

REPORT OF INDEPENDENT AUDITORS	1-2
MANAGEMENT’S DISCUSSION AND ANALYSIS	3-8
BASIC FINANCIAL STATEMENTS
Government-wide Financial Statements
Statement of Net Position	9
Statement of Activities	10
Fund Financial Statements
Balance Sheet – Governmental Funds	11
Reconciliation of Total Governmental Fund Balances
to Net Position of Governmental Activities	12
Statement of Revenues, Expenditures and Changes in
Fund Balances – Governmental Funds	13
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds
to the Statement of Activities	14
Statement of Revenues, Expenditures and Changes in Fund
Balances – Budget and Actual – General Fund	15
Notes to Financial Statements	16-30
INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS	31-32
MANAGEMENT LETTER	33-34
INDEPENDENT ACCOUNTANTS’ REPORT/COMPLIANCE WITH
SECTION 218.415, FLORIDA STATUTES	35

REPORT OF INDEPENDENT AUDITORS

To the Board of Supervisors
Armstrong Community Development District Clay County, Florida

Report on the Financial Statements

We have audited the accompanying financial statements of Armstrong Community Development District (the “District”) as of and for the year ended September 30, 2020, and the related notes to financial statements, which collectively comprise the District’s basic financial statements as listed in the table of contents.

Management’s Responsibility for the Financial Statements

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

Auditor’s Responsibility

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

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

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

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To the Board of Supervisors
Armstrong Community Development District

Opinion

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities and each major fund of Armstrong Community Development District, as of September 30, 2020, and the respective changes in financial position and the budgetary comparison for the General Fund for the year then ended in conformity with accounting principles generally accepted in the United States of America.

Other Matters

Required Supplementary Information

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

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued a report dated July 12, 2021 on our consideration of the District’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations and contracts. The purpose  of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering South Fork Community Development District’s internal control over financial reporting and compliance.

Berger, Toombs, Elam, Gaines & Frank Certified Public Accountants PL
Fort Pierce, Florida July 12, 2021

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Management’s discussion and analysis of Armstrong Community Development District (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.

OVERVIEW OF THE FINANCIAL STATEMENTS

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

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

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

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

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

OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)

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

The government-wide financial statement is designed to provide the reader with a broad overview of the District’s finances, in a manner similar to a private sector business. In the government-wide statement of net position, the governmental activities column is presented on a consolidated basis and is reported on a full-accrual economic resource basis, which recognizes all non-current assets and receivables as well as all non-current debt and obligations. The effect of interfund activity has been eliminated from the government-wide financial statements. In contrast, the governmental fund financial statements are grouped into funds to account for and to maintain control over resources that have been segregated for specific activities or objectives. The fund financial statements are presented using the current financial resources measurement focus and the modified accrual basis where as revenues are recorded when collected in the current period or within 60 days of year-end and expenditures are recorded when a liability is incurred. The difference between the two statements arises primarily from the long-term economic focus of the Statement of Activities versus the current financial resources focus of the governmental funds. A reconciliation of the government-wide and the fund financial statement is provided to illustrate these differences.

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

Financial Highlights

The following are the highlights of financial activity for the year ended September 30, 2020.

The District’s total assets exceeded total liabilities by $11,806,176, (net position). Unrestricted net position for Governmental Activities was $38,726. Net investment in capital assets was $11,596,235. Restricted net position was $171,215.

Governmental activities revenues totaled $2,509,519 while governmental activities expenses totaled $1,191,194.

OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)

Financial Analysis of the District

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

Net Position

Governmental Activities
	 	2020			2019	
Current assets	$	80,272		$	403,682	
Restricted assets	1,208,379		1,312,495	
Capital assets	 	22,290,021 		 	17,235,509 	
Total Assets	 	23,578,672 		 	18,951,686 	
Current liabilities	463,221		1,205,719	
Non-current liabilities	 	11,309,275 		 	7,258,116 	
Total Liabilities	 	11,772,496 		 	8,463,835 	
Net position - net investment in capital assets	11,596,235		9,308,761	
Net position - restricted	171,215		1,145,459	
Net position - unrestricted	 	38,726 		 	33,631 	
Total Net Position	  $	11,806,176 		  $	10,487,851 	

The decrease in current assets is mainly the result of the decrease in due from developer in the current year.

The increase in capital assets is primarily the result of the capital project activity in the current year.

The increase in non-current liabilities is the result of the issuance of long-term debt in the current year.

OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)

Financial Analysis of the District (Continued)

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

Change in Net Position

Governmental Activities
	2020		2019	
Program Revenues
Charges for services	
$	452,593		
$	2,713,922	
Operating grants and contributions	250,508		774,344	
Capital grants and contributions
General Revenues	1,640,299		2,102,718	
Investment earnings	2,381	-	
Miscellaneous revenues	 	163,738 	 	34,814 	
Total Revenues	 	2,509,519 	 	5,625,798 	

Expenses				
General government	111,294	118,724	
Physical environment	150,383	57,368	
Culture/recreation	117,012	12,028	
Interest and other costs	 	812,505 	 	297,613 	
Total Expenses	 	1,191,194 	 	485,733 	
Change in Net Position	1,318,325	5,140,065	
Net Position - Beginning of Year	 	10,487,851 	 	5,347,784 	
Net Position - End of Year	  $ 11,806,176 	  $ 10,487,849 	

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

The increase in culture/recreation is related to the construction of the amenity center in the current year.

The increase in interest and other costs is related to the cost of issuance of long-term debt in the current year.

OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)

Capital Assets Activity

The following schedule provides a summary of the District’s capital assets as of 2020 and 2019.

Governmental Activities
 	Description		 	2020		 	2019		
Construction in progress	$	22,216,930	$	17,154,297	
Equipment	81,212	81,212	
Accumulated depreciation	 	(8,121)	 	- 	
Total Capital Assets (Net)	  $	22,290,021 	$	17,235,509	

During the year, $5,062,633 was added to construction in progress and depreciation was
$8,121.

General Fund Budgetary Highlights

The budget exceeded actual expenditures for the year primarily because utility and landscape costs were less than anticipated.

The budget was not amended for the year ended September 30, 2020.

Debt Management

Governmental Activities debt includes the following:

In September 2017, the District issued $4,035,000 Series 2017A Special Assessment Revenue Bonds. These bonds were issued to finance the cost of acquiring, constructing, and equipping certain assessable improvements. The balance outstanding at September 30, 2020 was $3,970,000.

In September 2017, the District issued $2,890,000 Series 2017B Special Assessment Revenue Bonds. These bonds were issued to finance the cost of acquiring, constructing, and equipping certain assessable improvements. The balance outstanding was paid off during the year.

In October 2019, the District issued $7,500,000 Series 2019A Special Assessment Revenue Bonds. These bonds were issued to finance a portion of the cost of acquisition, construction, installation and equipping of the Series 2019A Project. The balance outstanding at September 30, 2020 was $7,500,000.

OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)

Economic Factors and Next Year’s Budget

Armstrong Community Development District does not expect any economic factors to have any significant effect on the financial position or results of operations of the District in fiscal year 2021.

Request for Information

The financial report is designed to provide a general overview of Armstrong Community Development District’s finances for all those with an interest. Questions concerning any of the information provided in this report or requests for additional information should be addressed to the Armstrong Community Development District, Governmental Management Services LLC, 475 W Town Place, Suite 114, St. Augustine, Florida 32092.

Armstrong Community Development District	
STATEMENT OF NET POSITION	
September 30, 2020	

Governmental	
Activities	

LIABILITIES	
Current Liabilities	
Accounts payable and accrued expenses	
Due to others	
Contracts/retainage payable	
Accrued interest	
Leases payable-current	
Bonds payable-current	
Total Current Liabilities	
Non-Current Liabilities	
Bonds payable, net	
Leases payable	
Total Non-Current Liabilities	
Total Liabilities	

17,299	
24,247	
135,576	
202,169	
13,930	
 	70,000 	
 	463,221 	

11,283,086	
 	26,189 	
 	11,309,275 	
 	11,772,496 	

ASSETS		
Current Assets		
Cash	$	43,151	
Due from developer	26,688	
Prepaid expenses	 	10,433 	
Total Current Assets	 	80,272 	
Non-Current Assets		
Restricted:		
Investments	1,208,379	
Capital Assets Not Being Depreciated		
Construction in progress	22,216,930	
Capital Assets Being Depreciated:		
Equipment	81,212	
Less: accumulated depreciation	 	(8,121)	
Total Non-Current Assets	 	23,498,400 	
Total Assets	 	23,578,672 	

NET POSITION	
Net investment in capital assets	
Restricted for debt service	
Restricted for capital projects	
Unrestricted	
Total Net Position	

11,596,235	
131,829	
39,386	
 	38,726 	
  $ 11,806,176 	

See accompanying notes to financial statements.

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Armstrong Community Development District	
STATEMENT OF ACTIVITIES	
For the Year Ended September 30, 2020	

Net (Expenses)	
Revenues and	
Changes in	
Net Position	

Governmental Activities	

Functions/Programs	
Primary government	
Governmental Activities	
General government	
Physical environment	
Culture/recreation	
Interest and other costs	
Total Governmental Activities	

Program Revenues	

Charges for Services	Operating Grants and Contributions	Capital Grants and Contributions	

Expenses

$	(111,294)	
(150,383)	
(117,012)	
 	(812,505)	
  $	(1,191,194)	

$	52,557	
67,746	
55,722	
 	276,568 	
  $	452,593 	

$	74,796	
96,412	
79,300	
 	- 	
  $	250,508 	

$	-	
1,640,299	
-	
 	- 	
  $	1,640,299 	

$	16,059	
1,654,074	
18,010	
 	(535,937)	
1,152,206	

General Revenues:	
Investment earnings	
Miscellaneous revenues	
Total General Revenues	

2,381	
 	163,738 	
 	166,119 	

Change in Net Position	1,318,325

Net Position - October 1, 2019	
Net Position - September 30, 2020	

 	10,487,851 	
  $	11,806,176 	

See accompanying notes to financial statements.

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Armstrong Community Development District	
BALANCE SHEET –	
GOVERNMENTAL FUNDS	
September 30, 2020	

Total	
Governmental	
Funds	

Debt	
Service	

Governmental Funds

Capital	
Projects	

ASSETS	General

Cash	
Due from developer	
Prepaid expenses	
Restricted assets:	
Investments, at fair value	
Total Assets	

 	

$	43,151	
26,688	
10,433	

 
$	-	
-	
-	

 
$	-	
-	
-	

 
$	43,151	
26,688	
10,433	

 	- 	 	1,033,417 	
  $		80,272 	  $ 	1,033,417 	

 	174,962 	
  $	174,962 	

 	1,208,379 	
  $	1,288,651 	

$	17,299	
24,247	
 	- 	
 	41,546 	

LIABILITIES AND FUND BALANCES

LIABILITIES	
Accounts payable and accrued expenses	
Due to others	
Contracts/retainage payable	
Total Liabilities	

$	-	
-	
 	- 	
 	- 	

$	-	
-	
 	135,576 	
 	135,576 	

$	17,299	
24,247	
 	135,576 	
 	177,122 	

FUND BALANCES	
Nonspendable - prepaid expenses	
Restricted for debt service	
Restricted for capital projects	
Unassigned	
Total Fund Balances	

10,433	
-	
-	
 	28,293 	
 	38,726 	

-	
1,033,417	
-	
 	- 	
 	1,033,417 	

-	
-	
39,386	
 	- 	
 	39,386 	

10,433	
1,033,417	
39,386	
 	28,293 	
 	1,111,529 	

Total Liabilities and Fund Balances

  $	80,272 

  $ 1,033,417 

  $	174,962 

  $	1,288,651 

   

Armstrong Community Development District	
RECONCILIATION OF TOTAL GOVERNMENTAL FUND BALANCES	
TO NET POSITION OF GOVERNMENTAL ACTIVITIES	
September 30, 2020	

Total Governmental Fund Balances	$	1,111,529

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

Capital assets, construction in progress, $22,216,930, equipment, $81,212, and		
net of accumulated depreciation, $(8,121), used in governmental activities are not		
current financial resources and therefore, are not reported at the fund level.	22,290,021	

Long-term liabilities, including bonds payable, $(11,470,000), net of bond discounts,	
$116,914, and leases payables, $(40,119), are not due and payable in the current	
period, and therefore, are not reported at the fund level.	(11,393,205)	

Accrued interest expense for long-term debt is not a current financial use and	
therefore, is not reported at the fund level.	

 	(202,169)

Net Position of Governmental Activities	 $	11,806,176 

Armstrong Community Development District	
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES –	
GOVERNMENTAL FUNDS	
For the Year Ended September 30, 2020	

Total	
Governmental	
Funds	

Debt	Capital	
Service	Projects	

Governmental Funds

General

Revenues	
Special assessments	
Developer contributions	
Miscellaneous revenues	
Investment earnings	
Total Revenues	

$	276,568	
-	
-	
 	956 	
 	277,524 	

$	-	
1,640,299	
163,738	
 	1,425 	
 	1,805,462 	

$	452,593	
1,890,807	
163,738	
 	2,381 	
 	2,509,519 	

$	176,025
250,508
-

 	- 
 	426,533 

Expenditures		
Current		
General government	110,367	
Physical environment	142,262	
Culture/recreation	117,012	
Capital outlay	-	
Debt service		
Principal	12,733	
Interest	4,250	
Other debt service	 	- 	
Total Expenditures	 	386,624 	

Revenues over/(under) expenditures	39,909	

Other Financing Sources/(Uses)		
Issuance of long-term debt	-	
Bond discount	-	
Transfers in	-	
Transfers out	 		(34,814)	
Total Other Financing Sources/(Uses)	 		(34,814)	

Net change in fund balances	5,095	

-	
-	
-	
-	

111,294	
142,262	
117,012	
5,062,633	

927
-
- 5,062,633

3,368,111	
370,229	
 	- 	
 	3,738,340 	

 	
-	
-	
 	331,384 	
 	5,394,944 	

 	
3,380,844	
374,479	
 	331,384 	
 	9,519,908 	

(3,460,816)	(3,589,482)	(7,010,389)

3,249,368	
-	
-	
 	(245)	
 	3,249,123 	

 	
4,250,632	
(65,924)	
35,059	
 	- 	
 	4,219,767 	

 	
7,500,000	
(65,924)	
35,059	
 	(35,059)	
 	7,434,076 	

(211,693)	630,285	423,687

Fund Balances - October 1, 2019	 	33,631 	

 	1,245,110 	(590,899)	 	687,842 

Fund Balances - September 30, 2020	   $	38,726        $ 1,033,417       $	3	

9,386 

See accompanying notes to financial statements.

  $	1,111,529 

Armstrong Community Development District	
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND	
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE	
STATEMENT OF ACTIVITIES	
For the Year Ended September 30, 2020	

Net Change in Fund Balances - Total Governmental Funds

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

Repayments of bond principal are expenditures in the governmental funds	
funds and reduce long-term liabilities in the Statement of Net Position.	

The issuance of long-term debt, $(7,500,000) net of bond discount, $65,924,	
is recognized as an other financing source/(use) at the fund level. At the	
government-wide level it is reflected as an increase in long-term liabilities.	

Amortization of bond discount reported in the Statement of Activities does	
not require the use of current financial resources and therefore, is not	
reported as an expenditure at the fund level.	

$	423,687

Governmental funds report capital outlays as expenditures. However, in the		
Statement of Activities, the cost of those assets is allocated over their		
estimated useful lives as depreciation. This is the amount that depreciation,		
$(8,121), was exceeded by capital outlay, $5,062,633, in the current year.	5,054,512	

3,380,844

(7,434,076)

(4,124)

In the Statement of Activities, interest is accrued on outstanding and matured		
bonds; whereas in governmental funds, interest expenditures are reported		
when due. This is the increase in accrued interest from the prior year.	 	(102,518)	

Change in Net Position of Governmental Activities	 $ 1,318,325 

See accompanying notes to financial statements.

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

Variance with	
Final Budget	
Positive	
(Negative)	

$	175,800	
 	263,553 	
 	439,353 	

$	175,800	
 	263,553 	
 	439,353 	

$	176,025	
 	250,508 	
 	426,533 	

Original	Final	
Budget	Budget	Actual	

Revenues	
Special assessments	
Developer contributions	
Total Revenues	

 	
$	225	
 	(13,045)	
 	(12,820)	

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

127,527	
144,365	
167,461	

127,527	
144,365	
167,461	

110,367	
142,262	
117,012	

17,160	
2,103	
50,449	

-	
 	- 	
 	439,353 	

-	
 	- 	
 	439,353 	

12,733	
 	4,250 	
 	386,624 	

(12,733)	
 	(4,250)	
 	52,729 	

Revenues over/(under) expenditures	 	- 	- 	39,909 	39,909 

Other Financing Sources/(Uses)	
Transfers out	

 	- 	- 	(34,814)	 	(34,814)

 	- 	33,631 	33,631 	
  $		- 	   $		38,726 	   $		38,726 	

Net change in fund balances	 	- 	- 	5,095 	5,095 Fund Balances - October 1, 2019	 	- 
Fund Balances - September 30, 2020	 $	- 

See accompanying notes to financial statements.

Armstrong Community Development District NOTES TO FINANCIAL STATEMENTS
September 30, 2020

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements of the District have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The District's more significant accounting policies are described below.

Reporting Entity
The District was established on July 12, 2016 pursuant to Clay County, Florida Ordinance 2016-03 and amended by Clay County, Florida Ordinance 2018-40 and Chapter 190, Florida Statutes. The District was established for the purposes of financing and managing the acquisition, construction, maintenance and operation of the infrastructure necessary for community development within its jurisdiction. The District is authorized to issue bonds for the purpose, among others, of financing, funding, planning, establishing, acquiring, constructing or re-constructing, enlarging or extending, equipping, operating and maintaining water management, bridges or culverts, district roads, landscaping, street lights and other basic infrastructure projects within or outside the boundaries of the Armstrong Community Development District. The District is governed by a five-member Board of Supervisors. The District operates within the criteria established by Chapter 190, Florida Statutes.
As required by GAAP, these financial statements present the Armstrong Community Development District (the primary government) as a stand-alone government. The reporting entity for the District includes all functions of government in which the District’s Board exercises oversight responsibility including, but not limited to, financial interdependency, selection of governing authority, designation of management, significant ability to influence operations and accountability for fiscal matters.
Based upon the application of the above-mentioned criteria as set forth in Governmental Accounting Standards Board, the District has no component units.

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Measurement Focus and Basis of Accounting

The basic financial statements of the District are composed of the following:

Government-wide financial statements

Fund financial statements

Notes to financial statements

Government-wide Financial Statements

The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Government-wide financial statements report all non-fiduciary information about the reporting government as a whole. These statements include all the governmental activities of the primary government. The effect of interfund activity has been removed from these statements.

Governmental activities are supported by developer contributions and interest. Program revenues include charges for services and payments made by parties outside of the reporting government’s citizenry if that money is restricted to a particular program. Program revenues are netted with program expenses in the Statement of Activities to present the net cost of each program.

Amounts paid to acquire capital assets are capitalized as assets, rather than reported as an expenditure. Proceeds of long-term debt are recorded as liabilities in the government-wide financial statements, rather than as another financing source.

Amounts paid to reduce long-term indebtedness of the reporting government are reported as a reduction of the related liability, rather than as an expenditure.

Fund Financial Statements

The underlying accounting system of the District is organized and operated on the basis of separate funds, each of which is considered to be a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled.

Fund financial statements for the primary government’s governmental funds are presented after the government-wide financial statements. These statements display information about major funds individually.

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

2.	Measurement Focus and Basis of Accounting (Continued)

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

The District has various policies governing the fund balance classifications.

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

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

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

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

Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are considered to be available when they are collected within the current period or soon thereafter to pay liabilities of the current period. For this purpose, the District considers revenues to be available if they are collected within 60 days of the end of the current fiscal period.

Expenditures generally are recorded when a liability is incurred, as under accrual accounting. Interest associated with the current fiscal period is considered to be an accrual item and so has been recognized as revenue of the current fiscal period.

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Measurement Focus and Basis of Accounting (Continued)

b. Fund Financial Statements (Continued) Governmental Funds (Continued)
Under the current financial resources measurement focus, only current assets and current liabilities are generally included on the balance sheet. The reported  fund balance is considered to be a measure of “available spendable resources”. Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they are said to present a summary of sources and uses of “available spendable resources” during a period.

Because of their spending measurement focus, expenditure recognition for governmental fund types excludes amounts represented by non-current liabilities. Since they do not affect net current assets, such long-term amounts are not recognized as governmental fund type expenditures or fund liabilities.

Amounts expended to acquire capital assets are recorded as expenditures in the year that resources are expended, rather than as fund assets. The proceeds of long-term debt are recorded as other financing source rather than as a fund liability.

Debt service expenditures are recorded only when payment is due.

Basis of Presentation

Governmental Major Funds

General Fund – The General Fund is the District’s primary operating fund. It accounts  for all financial resources of the general government, except those required to be accounted for in another fund.

Debt Service Fund – Accounts for debt service requirements to retire the special assessment revenue bonds which were used, among other things, to retire the debt of the bond anticipation notes and to finance the acquisition and construction of certain master infrastructure improvements within the District.

Capital Projects Fund – The Capital Projects Fund accounts for construction of certain infrastructure improvements within the boundaries of the District.

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Basis of Presentation (Continued)

Non-current Governmental Assets/Liabilities

GASB Statement 34 requires that non-current governmental assets, such as land and buildings, and non-current governmental liabilities, such as general obligation bonds, be reported in the governmental activities column in the government-wide Statement of Net Position.

Assets, Liabilities, and Net Position or Equity

Cash and Investments

Chapter 280, Florida Statutes require state and local governmental units to deposit monies with financial institutions classified as "Qualified Public Depositories," a multiple financial institution pool whereby groups of securities pledged by the various financial institutions provide common collateral from their deposits of public funds. This pool is provided as additional insurance to the federal depository insurance and allows for additional assessments against the member institutions, providing full insurance for public deposits.

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

Direct obligations of the United States Treasury;

The Local Government Surplus Funds Trust or any intergovernmental investment pool authorized pursuant to the Florida Interlocal Cooperative Act of 1969;

Interest-bearing time deposits or savings accounts in authorized qualified public depositories;

Securities and Exchange Commission, registered money market funds with the highest credit quality rating from a nationally recognized rating agency.

Restricted Assets

Certain net position of the District will be classified as restricted assets on the statement of net position because their use is limited either by law through constitutional provisions or enabling legislation; or by restrictions imposed externally by creditors.

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

4.	Assets, Liabilities, and Net Position or Equity (Continued)

Capital Assets

Capital assets, which include equipment and construction in progress, are reported in governmental activities.

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

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

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

Equipment	5-10 years

Budgets

Budgets are prepared and adopted after public hearings for the governmental funds, pursuant to Chapter 190, Florida Statutes. The District utilizes the same basis of accounting for budgets as it does for revenues and expenditures in its various funds. Formal budgets are adopted for the general fund. The legal level of budgetary control is at the fund level. As a result, deficits in the budget variance columns of the accompanying financial statements may occur. All budgeted appropriations lapse at  year end.

Unamortized Bond Discount
Bond discounts are presented on the government-wide financial statements. The costs are amortized over the life of the bonds. For financial reporting, the unamortized bond discount is netted against the applicable long-term debt.

NOTE	B	–		RECONCILIATION	OF	GOVERNMENT-WIDE	AND	FUND	FINANCIAL STATEMENTS

Explanation of Differences Between the Governmental Fund Balance Sheet and the Government-wide Statement of Net Position

“Total fund balances” of the District’s governmental funds, $1,111,529, differs from “net position” of governmental activities, $11,806,176, reported in the Statement of Net Position. This difference primarily results from the long-term economic focus of the Statement of Net Position versus the current financial resources focus of the Governmental Fund Balance Sheet. The effect of the differences is illustrated below.

Capital related items

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

Construction in progress		$	22,216,930	
Equipment		81,212	
Accumulated depreciation		 	(8,121)	
Total

Long-term debt transactions

Long-term liabilities applicable to the	

District’s governmental	$	22,290,021

activities are not due and	
payable in the current period and accordingly are not reported as fund liabilities.  All liabilities are reported in the Statement of Net Position. Balances at September 30, 2020 were:

Bonds payable		$	(11,470,000)	
Leases payable		(40,119)	
Bond discount		 	116,914	
Total

Accrued interest

Accrued liabilities in the	

Statement	$	(11,393,205)

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

Accrued interest	$	(202,169)

NOTE	B	–		RECONCILIATION	OF	GOVERNMENT-WIDE	AND	FUND	FINANCIAL STATEMENTS (CONTINUED)

Explanation of Differences Between the Governmental Fund Operating Statements and the Statement of Activities

The “net change in fund balances” for government funds, $423,687, differs from the “change in net position” for governmental activities, $1,318,325, reported in the Statement of Activities. The differences arise primarily from the long-term economic focus of the Statement of Activities versus the current financial resources focus of the governmental funds. The effect of the differences is illustrated below.

Capital related items

When capital assets that are to be used in governmental activities are purchased or constructed, the resources expended for those assets are reported as expenditures in governmental funds. However, in the Statement of Activities, the costs of those assets is allocated over their estimated useful lives and reported as depreciation expense. As a  result, fund balances decrease by the amount of financial resources expended, whereas net position decrease by the amount of depreciation expense charged for the year.

Capital outlay	$	5,062,633
Depreciation	 	(8,121)
Total	$	5,054,512

Long-term debt transactions

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

Bond principal payments	$	3,380,844	
Issuance of long-term debt	(7,500,000)	
Bond discount	 	65,924	
Total	$	4,053,232	

Amortization of bond discount	$	(4,124)

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

Net change in accrued interest payable	$	(102,518)

NOTE C – CASH AND INVESTMENTS

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

Custodial Credit Risk – Deposits

Custodial credit risk is the risk that in the event of a bank failure, the District's deposits may not be returned to it. The District follows the provisions of Chapter 280, Florida Statutes regarding deposits and investments. As of September 30, 2020, the District's bank balance was $45,813 and the carrying value was $43,151. Exposure to custodial credit risk was as follows. The District maintains all deposits in a qualified public depository in accordance with the provisions of Chapter 280, Florida Statutes, which means that all deposits are fully insured by Federal Depositors Insurance or collateralized under Chapter 280, Florida Statutes.

As of September 30, 2020, the District had the following investments and maturities:

 	Investment	 Maturities        Fair Value	
U S Bank Money Market Account	N/A	 $ 1,208,379 

*Maturity is a weighted average maturity.

The District categorizes its fair value measurements within the fair value hierarchy recently established by generally accepted accounting principles. The fair value is the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. The District uses a market approach in measuring fair value that uses prices and other relevant information generated by market transactions involving identical or similar assets, liabilities, or groups of assets and liabilities.

Assets or liabilities are classified into one of three levels. Level 1 is the most reliable and is based on quoted price for identical assets, or liabilities, in an active market. Level 2 uses significant other observable inputs when obtaining quoted prices for identical or similar assets, or liabilities, in markets that are not active. Level 3 is the least reliable and uses significant unobservable inputs that use the best information available under the circumstances, which includes the District’s own data in measuring unobservable inputs.

Based on the criteria in the preceding paragraph, the investment listed above is a Level 1 investment.

NOTE C – CASH AND INVESTMENTS (CONTINUED)

Interest Rate Risk

The formal investment policy of the District conforms with State statutory requirements and  bond indentures for investment maturities as a means of managing its exposure to increasing interest rates.

Credit Risk

The District's investments in treasury funds, money markets, and government loans are limited by state statutory requirements and bond compliance.  The District has no investment policy  that would further limit its investment choices. The District's investments government loans are limited by state statutory requirements and bond compliance.

Concentration of Credit Risk

The District places no limit on the amount it may invest in any one fund. The investments in the managed money market represent 100% of the district’s total investments.

The types of deposits and investments and their level of risk exposure as of September 30, 2020 were typical of these items during the fiscal year then ended. The District considers any decline in fair value for certain investments to be temporary.

NOTE D – CAPITAL ASSETS
Capital Asset activity for the year ended September 30, 2020 was as follows:

Balance	Balance
October 1,	September 30,
 	2019	 	Additions	 Deletions	 	2020	
Governmental Activities:
Capital Assets, Not Depreciated
Construction in progress	 $ 17,154,297     $	5,062,633     $	- $ 22,216,930 

Capital Assets, Depreciated:
Equipment	 	81,212	 	81,212 
Less Accumulated Depreciation for:
Equipment	 	- 	 	(8,121) 	 	- 	 	(8,121)	
Total Capital Assets Depreciated, Net	 	81,212 	 	(8,121) 	 	- 	 	73,091 	
total Capital Assets, net	  $ 17,235,509 	  $	5,054,512 	  $	- 	  $ 22,290,021 	

Depreciation of $8,121 was charged to physical environment.

NOTE E – LONG-TERM DEBT

The following is a summary of debt activity for the District for the year ended September 30, 2020:

Bonds payable at October 1, 2019	$	4,820,000	
Issuance of long-term debt	7,500,000	
Principal payments	 	(850,000)	
Bonds payable at September 30, 2020	$	11,470,000	
Less: bond discount	 	(116,914)	
Bonds payable, net	$	11,353,086	

NOTE E – LONG-TERM DEBT (CONTINUED)		
Long-term debt is comprised of the following at September 30, 2020:		
Special Assessment Debt		
$4,035,000 Special Assessment Revenue Bonds, Series 2017A due in annual principal installments, beginning November 1, 2017. Interest is due annually on November 1, beginning November 1, 2017 at rates between 3.625% and 5.125% with a maturity date of November 1, 2048.	

$	3,970,000	
$7,500,000 Special Assessment Revenue Bonds, Series 2019A due in annual principal installments, beginning November 1, 2020. Interest is due annually on November 1, beginning November 1, 2020 at rates between 3.125% and 4% with a final maturity date of November 1, 2050.	

 	7,500,000	

Bonds Payable at September 30, 2020	$ 11,470,000

The annual requirements to amortize the principal and interest of long term debt as of September 30, 2020 are as follows:

Year Ending
    September 30,		
 	Principal		
 	Interest		
 	Total		
2021	$	70,000	$	483,938	$	553,938	
2022	210,000	479,213	689,213	
2023	220,000	472,131	692,131	
2024	225,000	462,381	687,381	
2025	235,000	454,456	689,456	
2026-2030	1,305,000	2,121,994	3,426,994	
2031-2035	1,590,000	1,859,681	3,449,681	
2036-2040	1,975,000	1,458,103	3,433,103	
2041-2045	2,445,000	971,181	3,416,181	
2046-2050	2,780,000	372,400	3,152,400	
2051	 	415,000 	 	8,300 	 	423,300 	
Totals	  $	11,470,000 	  $	9,143,778 	  $	20,613,778 	

NOTE E – LONG-TERM DEBT (CONTINUED)

Summary of Significant Resolution Terms and Covenants Significant Bond Provisions
The Series 2017A Bonds may, at the option of the District, be called for redemption prior to maturity in whole or in part on any date on or after November 1, 2027. The Series 2017A Bonds are subject to mandatory redemption prior to maturity in the manner determined by the Bond Registrar if certain events occurred as outlined in the Trust Indenture.

The Series 2019A Bonds may, at the option of the District, be called for redemption prior to maturity in whole or in part on any date on or after November 1, 2029. The Series 2019A Bonds are subject to extraordinary mandatory redemption prior to maturity in the manner determined by the Bond Registrar if certain events occurred as outlined in the Trust Indenture.

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

Depository Funds

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

Reserve Funds – The Series 2017A and 2019A Reserve Accounts were funded from the proceeds of the Series 2017A and 2019A Bonds in amounts equal to the maximum annual debt service of the Series 2017A and 2019A Bonds.

The following is a schedule of required reserve balances as of September 30, 2020:

Reserve	Reserve
 	Balance	 Requirement 
Special Assessment Bonds, Series 2017A	$	265,819	$	265,819	
Special Assessment Bonds, Series 2019A	$	433,600	$	433,600	

NOTE F – CAPITAL LEASE

The District entered into a lease agreement for fitness equipment during the year ended September 30, 2019. The total acquisition cost of the equipment was $81,212. The District  paid
$24,364 initially and recognized the remaining $56,848 as a capital lease obligation. The term of the lease is from May 20, 2019 to May 20, 2023 and is payable in monthly installments of
$1,415.

The future minimum lease payments and net present value of minimum lease payments at September 30, 2020 were as follows:

Year Ending
 	September 30,		
 	Amount		
2021	$	16,983	
2022	16,983	
2023	 	11,322 	
Total minimum lease payments	45,288	
Less: amount representing interest	 	(5,169) 	
Present value of minimum lease payments	  $	40,119 	

NOTE G – DEVELOPER ADVANCE

The Developer advanced the District a total of $2,518,111	

in order to fund the construction	
project deficit in the prior fiscal year. On October 31, 2019, the District repaid the Developer with proceeds from Series 2019 bonds.
NOTE H – RISK MANAGEMENT

The District is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; and natural disasters for which the government carries commercial insurance. There were no claims or settled claims during the past three years.

NOTE I – ECONOMIC DEPENDENCY

The Developer owns a significant portion of land within the District. The District’s activity is dependent upon the continued involvement of the Developer, the loss of which could have a material adverse effect on the District’s operations. At September 30, 2020, four of five board members are affiliated with the Developer.

NOTE J – RELATED PARTY TRANSACTIONS

All of the voting members of the Board of Supervisors are employed by the Developer or a related entity. The District received $250,508 in operating contributions and $1,640,299 in capital contributions from the Developer for the year ended September 30, 2020.

NOTE K – INTERLOCAL AGREEMENTS

In July 2016, the District entered into an interlocal agreement with Clay County for funding, design, and construction of the Tyles Boulevard Extension. The County has agreed to pay the District up to $7,000,000 on a reimbursement basis towards the project costs. Under the agreement, the District was required to provide a letter of credit covering any project construction costs, in excess of $7,000,000. During a prior fiscal year, the District initially advanced $600,000 to provide working capital.

In November 2017, the District entered into an interlocal agreement with Clay County Utility Authority (CCUA) relating to its utility systems. Under the agreement, CCUA agreed to reimburse the District for $140,000 in construction costs of completing the off-site water and reclaimed water systems once accepted by CCUA.

NOTE L – SUBSEQUENT EVENT

On February 1, 2021, the District made prepayments totaling $140,000 on the Series 2019A bond. On May 1, 2021, the District made prepayments totaling $10,000 on the Series 2019A bond.

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

To the Board of Supervisors
Armstrong Community Development District Clay 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 Armstrong Community Development District, as of and for the year ended September 30, 2020, and the related notes to the financial statements, and have issued our report thereon dated July 12, 2021.

Internal Control Over Financial Reporting

In planning and performing our audit, we considered Armstrong Community Development District's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of Armstrong Community Development District’s internal control. Accordingly, we do not express an opinion on the effectiveness of Armstrong Community Development District's internal control.

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

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

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Board of Supervisors
Armstrong Community Development District

Compliance and Other Matters
As part of obtaining reasonable assurance about whether Armstrong Community Development District's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Berger, Toombs, Elam, Gaines & Frank Certified Public Accountants PL
Fort Pierce, Florida July 12, 2021

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MANAGEMENT LETTER

To the Board of Supervisors
Armstrong Community Development District Clay County, Florida

Report on the Financial Statements

We have audited the financial statements of the Armstrong Community Development District as of and for the year ended September 30, 2020, and have issued our report thereon dated July 12, 2021.

Auditor’s Responsibility

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

Other Reporting Requirements

We have issued our Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards and Independent Accountant’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 July 12, 2021, should be considered in conjunction with this management letter.

Prior Audit Findings

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

Financial Condition and Management

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

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To the Board of Supervisors
Armstrong Community Development District

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

Section 10.554(1)(i)2., Rules of the Auditor General, requires that we address in the Management Letter 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 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.

Berger, Toombs, Elam, Gaines & Frank Certified Public Accountants PL
Fort Pierce, Florida July 12, 2021

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

To the Board of Supervisors
Armstrong Community Development District Clay County, Florida

We have examined Armstrong Community Development District’s compliance with Section 218.415, Florida Statutes during the year ended September 30, 2020. Management is responsible for Armstrong Community Development District’s compliance with those requirements. Our responsibility is to express an opinion on Armstrong Community Development District’s compliance based on our examination.

Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about Armstrong Community Development District’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on Armstrong Community Development District’s compliance with the specified requirements.

In our opinion, Armstrong Community Development District complied, in all material respects, with the aforementioned requirements during the year ended September 30, 2020.

Berger, Toombs, Elam, Gaines & Frank Certified Public Accountants PL
Fort Pierce, Florida July 12, 2021

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