Ridgewood Trails Community Development District ANNUAL FINANCIAL REPORT September 30, 2022 Ridgewood Trails Community Development District ANNUAL FINANCIAL REPORT September 30, 2022 TABLE OF CONTENTS Page Number REPORT OF INDEPENDENT AUDITORS 1-3 MANAGEMENT’S DISCUSSION AND ANALYSIS 4-9 BASIC FINANCIAL STATEMENTS Government-wide Financial Statements Statement of Net Position 10 Statement of Activities 11 Fund Financial Statements Balance Sheet – Governmental Funds 12 Reconciliation of Total Governmental Fund Balances to Net Position of Governmental Activities 13 Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds 14 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 15 Statement of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual – General Fund 16 Notes to Financial Statements 17-30 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 33-35 INDEPENDENT ACCOUNTANTS’ REPORT/COMPLIANCE WITH SECTION 218.415, FLORIDA STATUTES 36 REPORT OF INDEPENDENT AUDITORS To the Board of Supervisors Ridgewood Trails Community Development District Clay County, Florida Report on Audit of the Financial Statements Opinion We have audited the financial statements of the governmental activities and each major fund of Ridgewood Trails Community Development District (the “District”), as of and for the year ended September 30, 2022, and the related notes to financial statements, which collectively comprise the District’s basic financial statements as listed in the table of contents. In our opinion, the accompanying financial statements present fairly, in all material respects, the respective financial position of the governmental activities and each major fund of Ridgewood Trails Community Development District as of September 30, 2022, and the respective changes in financial position and the budgetary comparison for the General Fund for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinion We conducted our audits in accordance with auditing standards generally accepted in the United States of America (GAAS), and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the District and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Responsibilities of Management 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; and for 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. To the Board of Supervisors Ridgewood Trails Community Development District In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the District’s ability to continue as a going concern for one year beyond the financial statement date, including currently known information that may raise substantial doubt thereafter. Auditor’s Responsibility for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore, is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users made on the basis of these financial statements. In performing an audit in accordance with GAAS and Government Auditing Standards, we: • Exercise professional judgement and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit 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 District’s internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • Conclude whether, in our judgement, there are conditions or events, considered in the aggregate, that raise substantial doubt about the District’s ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit. To the Board of Supervisors Ridgewood Trails Community Development District Required Supplementary Information Accounting principles generally accepted in the United States of America require that Management’s Discussion and Analysis be presented to supplement the basic financial statements. Such information is the responsibility of management and, 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 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 14, 2023 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 Ridgewood Trails Community Development District’s internal control over financial reporting and compliance. Berger, Toombs, Elam, Gaines & Frank Certified Public Accountants PL Fort Pierce, Florida September 14, 2023 Management’s discussion and analysis of Ridgewood Trails Community Development District’s (the “District”) financial performance provides an objective and easily readable analysis of the District’s financial activities. The analysis provides summary financial information for the District and should be read in conjunction with the District’s financial statements. 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 is reported in three categories; 1) net investment in capital assets, 2) restricted, and 3) unrestricted. Assets, liabilities, and net position are reported for all Governmental activities. 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, culture/recreation 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 statements and the fund financial statements provide different pictures of the District. The government-wide financial statements provide an overall picture of the District’s financial standing. These statements are comparable to private-sector companies and give a good understanding of the District’s overall financial health and how the District paid for the various activities, or functions, provided by the District. All assets of the District, including capital assets are reported in the statement of net position. All liabilities, including principal outstanding on bonds are included. The statement of activities includes depreciation on all long lived assets of the District, but transactions between the different functions of the District have been eliminated in order to avoid “doubling up” the revenues and expenses. The fund financial statements provide a picture of the major funds of the District. In the case of governmental activities, outlays for long lived assets are reported as expenditures and long-term liabilities, such as general obligation bonds, are not included in the fund financial statements. To provide a link from the fund financial statements to the government-wide financial statements, a reconciliation is provided from the fund financial statements to the governmentwide financial statements. 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 the financial activity for the year ended September 30, 2022. . The District’s total assets exceeded total liabilities by $2,624,732 (net position). Unrestricted net position for Governmental Activities was $335,479. Restricted net position-debt service was $1,730. Net investment in capital assets was $2,287,523. . Governmental activities revenues totaled $444,312 while governmental activities expenses totaled $592,399. 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. 2022 2021 Current assets $ 353,165 $ 437,717 Restricted assets 14,557 14,024 Capital assets 2,429,879 2,488,955 Total Assets 2,797,601 2,940,696 Current liabilities 29,690 33,175 Non-current liabilities 143,179 134,702 Total Liabilities 172,869 167,877 Net position - net in capital assets 2,287,523 2,358,870 Net position - restricted 1,730 1 ,111 Net position - unrestricted 335,479 412,838 Total Net Position $ 2,624,732 $ 2,772,819 Net Position Governmental Activities The decrease in current assets is primarily related to expenditures exceeding revenues at the fund level in the current year. The decrease in capital assets is mainly related to current year depreciation. The decrease in net position is related to expenses exceeding revenues. 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. The increase in physical environment is related to the increase in landscape maintenance and security system expenses in the current year. 2022 2021 Program Revenues Charges for services $ 434,497 $ 434,292 General Revenues Miscellaneous revenues 8,314 2,200 Investment earnings 1,501 448 Total Revenues 444,312 436,940 Expenses General government 89,927 83,534 Physical environment 272,568 261,815 Culture/recreation 221,501 218,206 Interest and other charges 8,403 8,094 Total Expenses 592,399 571,649 Change in Net Position (148,087) (134,709) Net Position - Beginning of Year 2,772,819 2,907,528 Net Position - End of Year $ 2,624,732 $ 2,772,819 Governmental Activities Change in Net Position OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED) Capital Assets Activity The following schedule provides a summary of the District’s capital assets activity as of September 30, 2022 and 2021: Depreciation was $108,945 in the current year. Additions to equipment was $89,661 and construction in progress was $13,318 and transfers from construction in progress were $53,110. General Fund Budgetary Highlights 2022 2021 Construction in progress $ - $ 39,792 Buildings and improvements 571,641 571,641 Infrastructure 2,690,994 2,690,994 Equipment 124,011 34,350 Accumulated depreciation (956,767) ( 847,822) Capital assets, net $ 2,429,879 $ 2,488,955 Description Governmental Activities Budgeted expenditures exceeded actual expenditures primarily due to lower engineering fees, lifeguard, and landscape maintenance expenditures than were anticipated. The September 30, 2022 budget was not amended. Debt Management Governmental Activities debt includes the following: • In June 2007, the District issued $8,305,000 Series 2007A Capital Improvement Revenue Bonds. These bonds were issued to fund certain infrastructure facilities for the benefit of the District. As of September 30, 2022, the balance outstanding was $135,000. • In December 2021, the District entered into a financed purchase agreement of $19,419, for security equipment. The balance outstanding at September 30, 2022 was $17,092. Economic Factors and Next Year’s Budget Ridgewood Trails 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 2023. OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED) Request for Information The financial report is designed to provide a general overview of Ridgewood Trails 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 Ridgewood Trails Community Development District, Governmental Management Services, 475 West Town Place, Suite 114, St. Augustine, Florida 32092. Ridgewood Trails Community Development District STATEMENT OF NET POSITION September 30, 2022 Governmental Activities ASSETS Current Assets: Cash and cash equivalents $ 170,142 Investment 143,144 Due from others 9,205 Prepaid expenses 27,871 Deposits 2,803 Total Current Assets 353,165 Non-current Assets: Restricted assets: Investments 14,557 Capital assets being depreciated Buildings and improvements 571,641 Infrastructure 2,690,994 Equipment 124,011 Accumulated depreciation (956,767) Total Non-current Assets 2,444,436 Total Assets 2,797,601 LIABILITIES Current Liabilities: Accounts payable 17,879 Accrued interest payable 3,178 Financed purchase payable 3,633 Bonds payable 5,000 Total Current Liabilities 29,690 Non-current Liabilities: Financed purchase payable 13,459 Bonds payable, net 129,720 Total Non-current liabilities 143,179 Total Liabilities 172,869 NET POSITION Net investment in capital assets 2,287,523 Restricted-debt service 1,730 Unrestricted 335,479 Total Net Position $ 2,624,732 See accompanying notes to financial statements. -10 Ridgewood Trails Community Development District STATEMENT OF ACTIVITIES For the Year Ended September 30, 2022 Net (Expense) Revenues and Program Changes in Revenues Net Position Charges for Governmental Functions/Programs Expenses Services Activities Primary government Governmental Activities General government $ (89,927) $ 79,715 $ (10,212) Physical environment (272,568) 162,293 (110,275) Culture/recreation (221,501) 179,095 (42,406) Interest and other charges (8,403) 13,394 4,991 Total Governmental Activities $ (592,399) $ 434,497 (157,902) General revenues: Miscellaneous revenues 8,314 Investment earnings 1,501 Total General Revenues 9,815 Change in Net Position (148,087) Net Position - October 1, 2021 2,772,819 Net Position - September 30, 2022 $ 2,624,732 See accompanying notes to financial statements. - 11 Ridgewood Trails Community Development District BALANCE SHEET – GOVERNMENTAL FUNDS September 30, 2022 Total Debt Governmental ASSETS General Service Funds Cash and cash equivalents 170,142 $ -$ 170,142 $ Investments 143,144 -143,144 Due from other 9,205 -9,205 Prepaid expenses 27,871 -27,871 Deposits 2,803 -2,803 Restricted assets: Restricted investments -14,557 14,557 Total Assets 353,165 $ 14,557 $ 367,722 $ LIABILITIES AND FUND BALANCES LIABILITIES Accounts payable 17,879 $ -$ 17,879 $ FUND BALANCES Nonspendable-prepaids/deposits 30,674 -30,674 Restricted for: Debt service -14,557 14,557 Assigned for capital reserves 180,411 -180,411 Unassigned 124,201 -124,201 Total Fund Balances 335,286 14,557 349,843 Total Liabilities and Fund Balances 353,165 $ 14,557 $ 367,722 $ See accompanying notes to financial statements. - 12 Ridgewood Trails Community Development District RECONCILIATION OF TOTAL GOVERNMENTAL FUND BALANCES TO NET POSITION OF GOVERNMENTAL ACTIVITIES September 30, 2022 Total Governmental Fund Balances $ 349,843 Amounts reported for governmental activities in the Statement of Net Position are different because: $571,641, and equipment, $124,011, net of accumulated depreciation, ($(956,767)) used in governmental activities are not current financial resources; and therefore, are not reported at the fund level. Capital assets, infrastructure, $2,690,994, buildings and improvements, 2,429,879 discount, net, $280, and financed purchase payable, $(17,092) are not due and payable in the current period; therefore, are not reported at the fund level. Long-term liabilities, including bonds payable, $(135,000), net of net bond (151,812) Accrued interest expense for long-term debt is not a current financial use; therefore, it is not reported at the governmental fund level. (3,178) Net Position of Governmental Activities $ 2,624,732 See accompanying notes to financial statements. - 13 Ridgewood Trails Community Development District STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES – GOVERNMENTAL FUNDS For the Year Ended September 30, 2022 Total Debt Governmental General Service Funds Revenues Special assessments $ 421,103 13,394 $ 434,497 $ Miscellaneous revenues 8,314 -8,314 Investment earnings 1,452 49 1,501 Total Revenues 430,869 13,443 444,312 Expenditures Current General government 89,927 -89,927 Physical environment 183,084 -183,084 Culture/recreation 202,040 -202,040 Capital outlay 30,450 -30,450 Debt service Principal 2,327 5,000 7,327 Interest 593 7,910 8,503 Total Expenditures 508,421 12,910 521,331 Net Change in Fund Balances (77,552) 533 (77,019) Fund Balances - October 1, 2021 412,838 14,024 426,862 Fund Balances - September 30, 2022 $ 335,286 14,557 $ 349,843 $ See accompanying notes to financial statements. - 14 Ridgewood Trails 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, 2022 Net Change in Fund Balances - Total Governmental Funds $ (77,019) Amounts reported for governmental activities in the Statement of Activities are different because: Governmental funds report capital outlays as expenditures. However, at the government-wide level, the cost of those assets is allocated over their estimated useful lives as depreciation. This is the amount that depreciation, $(108,945), exceeded capital outlay, $30,450, in the current year. (78,495) Payment of long-term liabilities are reported as expenditures in the governmental fund statements but such repayments reduce long-term liabilities in the Statement of Net Position. 7,327 Amortization expense of bond discounts does not require the use of current resources and therefore, is not reported at the governmental funds level. This is the amount of amortization in the current period. (18) In the Statement of Activities, interest is accrued on outstanding bonds; due. This is the change in accrued interest from the prior year. whereas at the governmental funds level, interest expenditures are reported when 118 Change in Net Position of Governmental Activities $ (148,087) See accompanying notes to financial statements. - 15 Ridgewood Trails Community Development District STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES – BUDGET AND ACTUAL – GENERAL FUND For the Year Ended September 30, 2022 Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Revenues Special assessments $ 419,989 $ 419,989 $ 421,103 $ 1,114 Miscellaneous revenues 500 500 8,314 7,814 Interest earnings 450 450 1,452 1,002 Total Revenues 420,939 420,939 430,869 9,930 Expenditures Current General government 107,401 107,401 89,927 17,474 Physical environment 226,312 226,312 183,084 43,228 Culture/recreation 214,913 214,913 202,040 12,873 Capital outlay 20,000 20,000 30,450 (10,450) Debt Service Principal --2,327 (2,327) Interest --593 (593) Total Expenditures 568,626 568,626 508,421 60,205 Net Change in Fund Balances (147,687) (147,687) (77,552) 70,135 Fund Balances - October 1, 2021 285,616 285,616 412,838 127,222 Fund Balances - September 30, 2022 $ 137,929 $ 137,929 $ 335,286 $ 197,357 See accompanying notes to financial statements. - 16 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. 1. Reporting Entity The District was established on October 11, 2005, pursuant to the Uniform Community Development District Act of 1980, Chapter 190, Florida Statutes and Clay County, Florida Ordinance 2005-47. 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 without the boundaries of the Ridgewood Trails Community Development District. The District is governed by a five-member Board of Supervisors who are elected on an at-large basis by landowners within the District. The District operates within the criteria established by Chapter 190, Florida Statutes. As required by GAAP, these financial statements present the Ridgewood Trails 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 by the Governmental Accounting Standards Board, the District has identified no component units. 2. 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 NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 2. Measurement Focus and Basis of Accounting (Continued) a. 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 special assessments. 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 an other 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. b. 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 implemented 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 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. Fund Balance Spending Hierarchy – For all governmental funds except special revenue funds, when restricted, committed, assigned, and unassigned fund balances are combined in a fund, qualified expenditures are paid first from restricted or committed fund balance, as appropriate, then assigned and finally unassigned fund balances. 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. 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. NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 2. 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 an other financing source rather than as a fund liability. Debt service expenditures are recorded only when payment is due. 3. Basis of Presentation a. 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 capital improvement bonds which were used to finance the construction of District infrastructure improvements. NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 3. Basis of Presentation (Continued) b. 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. 4. Assets, Liabilities, and Net Position or Equity a. Cash and Investments 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: 1. Direct obligations of the United States Treasury; 2. The Local Government Surplus Funds Trust or any intergovernmental investment pool authorized pursuant to the Florida Interlocal Cooperative Act of 1969; 3. Interest-bearing time deposits or savings accounts in authorized qualified public depositories; 4. Securities and Exchange Commission registered money market funds with the highest credit quality rating from a nationally recognized rating agency. b. 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. In a fund with both restricted and unrestricted assets, qualified expenses are considered to be paid first from restricted net position and then from unrestricted net position. NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 4. Assets, Liabilities, and Net Position or Equity (Continued) c. Capital Assets Capital assets, which include buildings and improvements, construction in progress, infrastructure and equipment, 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 one year. 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. Capital assets are depreciated using the straight-line method over the following estimated useful lives: Infrastructure 30 years Buildings and improvements 39 years Equipment 3-10 years d. Bond Discounts Bond discounts are amortized over the life of the bonds. e. 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. All budgeted appropriations lapse at year end. Formal budgets are adopted for the general and debt service funds. As a result, deficits in the budget columns of the accompanying financial statements may occur. f. Net Position Net position represents the difference between assets and liabilities and is reported in three categories. Net investment in capital assets, represents capital assets, net of accumulated depreciation and any outstanding debt related to those assets. Net position is reported as restricted when there are legal limitations imposed on their use by legislation, or external restrictions imposed by other governments, creditors, or grantors. Unrestricted net position is assets that do not meet definitions of the classifications previously described. NOTE B – RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS 1. 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, $349,843, differs from “net position” of governmental activities, $2,624,732, 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 (construction in progress, infrastructure, buildings and improvements, and equipment 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. Building and improvements $ 571,641 Infrastructure 2,690,994 Equipment 124,011 Accumulated depreciation (956,767) Net Capital Assets $ 2,429,879 Long-term debt transactions Long-term liabilities and the deferred amount on refunding applicable to the District’s governmental activities are not current uses or resources and accordingly are not reported at the fund level. All uses and resources (both current and long-term) are reported in the Statement of Net Position. Balances at September 30, 2022 were: Bonds payable $ (135,000) Bond discount, net 280 Financed purchase payable (17,092) Total $ (151,812) Accrued interest Accrued liabilities in the Statement of Net Position differ from the amount reported in governmental funds due to the accrued interest on bonds. Accrued interest $ (3,178) NOTE B – RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS (CONTINUED) 2. Explanation of Differences Between the Governmental Fund Operating Statements and the Statement of Activities The “net change in fund balances” for government funds, $(77,019), differs from the “change in net position” for governmental activities, $(148,087), 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 are allocated over their estimated useful lives as depreciation. The loss on disposal of capital assets is recognized at the government-wide level. The following is the amount of depreciation in the current year. Depreciation $ (108,945) Capital outlay 30,450 Total $ (78,495) Long-term debt transactions Repayment of long-term liabilities are reported as expenditures at the fund level but such repayments reduce liabilities at the government-wide level. Debt principal payments $ 7,327 Amortization of the bond discount does not require the use of current resources and therefore, is not reported at the fund level. Bond discount amortization $ (18) 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. Change in accrued interest payable $ 118 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 to manage custodial credit risk. The District maintains all deposits in a qualified public depository, so that all deposits are fully insured by Federal Depositors Insurance or collateralized under Chapter 280, Florida Statutes. As of September 30, 2022, the District's bank balance was $174,097 and the carrying value was $170,142. As of September 30, 2022, the District had the following investments and maturities: 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. Investment Maturities Fair Value Florida PRIME 21 Days* $ 139,180 First American Treasury Obligation Fund 9 Days* 14,557 U.S. Bank Money Market N/A 3,964 Total $ 157,701 * Weighted Average Maturity Based on the criteria in the preceding paragraph, the District’s investments in the U.S. Bank Money Market and First American Treasury Obligation Fund are Level 1 assets. NOTE C – CASH AND INVESTMENTS (CONTINUED) Investments The District’s investment policy allows management to invest funds in investments permitted under Section 218.415, Florida Statutes. The investment in Florida PRIME is measured at amortized cost. Florida PRIME has established policies and guidelines regarding participant transactions and the authority to limit or restrict withdrawals or impose a penalty for an early withdrawal. As of September 30, 2022, there were no redemption fees, maximum transaction amounts, or any other requirement that would limit daily access to 100 percent of the account value. Interest Rate Risk The District does not have a formal investment policy that limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. Credit Risk The District's investments are limited by state statutory requirements and bond compliance. The District has no investment policy that would further limit its investment choices. As of September 30, 2022, the District's investments in First American Treasury Obligation Fund and Florida PRIME were rated AAAm by Standard & Poor's. The District’s investment in U.S. Bank Money Market is not rated. Concentration of Credit Risk The District places no limit on the amount it may invest. The investments in U.S. Bank Money Market represent 3%, the investments in First American Treasury Obligation Fund represents 9% and the investments in Florida PRIME represents 88% of the District’s total investments. The types of deposits and investments and their level of risk exposure as of September 30, 2022 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 – SPECIAL ASSESSMENT REVENUES Assessments are non-ad valorem assessments on benefitted property within the District. Operating and Maintenance Assessments are based upon adopted general fund budget and levied annually. Debt Service Assessments are levied when bonds are issued and collected annually. The District may collect assessments directly or utilize the uniform method of collection (Chapter 197.3632, Florida Statutes). Direct collected assessments are due as determined by annual assessment resolution adopted by the Board of Supervisors. Assessments collected under the uniform method are mailed by the Clay County Tax Collector on November 1 and due on or before March 31 of each year. Assessments and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received by the government. NOTE E – CAPITAL ASSETS Capital Asset activity for the year ended September 30, 2022 was as follows: Balance Balance October 1, September 30, 2021 Additions Deletions 2022 Governmental Activities: Capital assets, not depreciated Construction in progress $ 39,792 $ 13,318 $ (53,110) $ - Capital assets, being depreciated: Infrastructure 2,690,994 - - 2,690,994 Buildings and improvements 571,641 - - 571,641 Equipment 34,350 89,661 - 124,011 Total Capital assets Depreciated 3,296,985 89,661 - 3,386,646 Less accumulated depreciation for: Infrastructure (707,203) (89,484) - (796,687) Buildings and improvements (106,269) (14,658) - (120,927) Equipment (34,350) (4,803) - (39,153) Total Accumulated Depreciation (847,822) (108,945) - (956,767) Total Capital Assets Depreciated, Net 2,449,163 (19,284) - 2,429,879 Governmental Activities Capital Assets $ 2,488,955 $ (5,966) $ (53,110) $ 2,429,879 Depreciation of $89,484 was charged to physical environment and $19,461 was charged to culture/recreation. NOTE F – LONG-TERM DEBT The following is a summary of debt activity for the District for the year ended September 30, 2022: Long-term debt at October 1, 2021 $ 140,000 Principal payments (5,000) Long-term debt at September 30, 2022 $ 135,000 Less: bond discount, net (280) Bonds Payable, Net at September 30, 2022 $ 134,720 Long-term debt for Governmental Activities is comprised of the following: Capital Improvement Revenue Bonds $8,305,000 Series 2007A Capital Improvement Revenue Bonds are due in annual principal installments beginning May 2009 maturing May 2038. Interest at a rate of 5.65% is due May and November. Current portion is $5,000. $ 135,000 The annual requirements to amortize the principal and interest of bonded debt outstanding as of September 30, 2022 are as follows: Year Ending September 30, Principal Interest Total 2023 $ 5,000 $ 7,628 $ 12,628 2024 5,000 7,345 12,345 2025 5,000 7,063 12,063 2026 5,000 6,780 11,780 2027 5,000 6,498 11,498 2028-2032 45,000 26,555 71,555 2033-2037 50,000 12,712 62,712 2038 15,000 847 15,847 Totals $ 135,000 $ 75,428 $ 210,428 NOTE F – LONG-TERM DEBT (CONTINUED) Summary of Significant Bond Resolution Terms and Covenants Capital Improvement Revenue Bonds Significant Bond Provisions The Series 2007A Bonds are subject to redemption at the option of the District prior to their maturity, in whole or in part, at a redemption price set forth in the Trust Indenture. The Series 2007A 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 2007A Reserve Account was funded from the proceeds of the Series 2007A Bonds. Monies held in the reserve accounts will be used only for the purposes established in the Trust Indenture. The following is a schedule of required reserve balances as of September 30, 2022: Reserve Reserve Balance Requirement Capital Improvement Revenue Bonds, Series 2007A $ 9,649 $ 15,000 NOTE G – FINANCED PURCHASE During the year ended September 30, 2022, the District entered into a 60-month financed purchase agreement for security equipment in the amount of $19,419. The agreement has an end of finance purchase option which qualifies it as a financed purchase; therefore, the asset has been recorded at the present value of future minimum payments. The annual requirements to amortize principal and interest of the financed purchase as of September 30, 2022, were as follows: 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 from these risks that exceeded commercial insurance coverage in the last three years. Year Ending September 30, Amount 2023 $ 4 ,380 2024 4 ,380 2025 4 ,380 2026 4 ,380 2027 1 ,460 Total minimum lease payments 18,980 Less: amount representing interest (1,888) Present value of minimum lease payments $ 17,092 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 Ridgewood Trails 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, as listed in the table of contents, of Ridgewood Trails Community Development District, as of and for the year ended September 30, 2022, and the related notes to the financial statements, which collectively comprise the basic financial statements and have issued our report thereon dated September 14, 2023. Report on Internal Control Over Financial Reporting In planning and performing our audit, we considered Ridgewood Trails 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 Ridgewood Trails Community Development District’s internal control. Accordingly, we do not express an opinion on the effectiveness of Ridgewood Trails 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 or significant deficiencies may exist that have not been identified. To the Board of Supervisors Ridgewood Trails Community Development District Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether Ridgewood Trails 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 no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Berger, Toombs, Elam, Gaines & Frank Certified Public Accountants PL Fort Pierce, Florida September 14, 2023 MANAGEMENT LETTER To the Board of Supervisors Ridgewood Trails Community Development District Clay County, Florida Report on the Financial Statements We have audited the financial statements of the Ridgewood Trails Community Development District as of and for the year ended September 30, 2022, and have issued our report thereon dated September 14, 2023. 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 Florida 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 our Independent Auditor’s Report on an examination conducted in accordance with AICPA Professionals 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 14, 2023, 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 in the preceding audit. 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 Ridgewood Trails Community Development District has met one or more of the conditions described in Section 218.503(1), Florida Statutes, and to identify the specific conditions met. In connection with our audit, we determined that Ridgewood Trails Community Development District did not meet any of the conditions described in Section 218.503(1) Florida Statutes. To the Board of Supervisors Ridgewood Trails Community Development District Pursuant to Sections 10.554(1)(i)5.b. and 10.556(8), Rules of the Auditor General, we applied financial condition assessment procedures for Ridgewood Trails Community Development District. It is management’s responsibility to monitor the Ridgewood Trails 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 as of September 30, 2022. 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. Specific Information The information provided below was provided by management and has not been audited; therefore, we do not express an opinion or provide any assurance on the information. As required by Section 218.39(3)(c), Florida Statutes, and Section 10.554(1)(i)6, Rules of the Auditor General, the Ridgewood Trails Community Development District reported: 1) The total number of district employees compensated in the last pay period of the District’s fiscal year: 4 2) The total number of independent contractors to whom nonemployee compensation was paid in the last month of the District’s fiscal year: 15 3) All compensation earned by or awarded to employees, whether paid or accrued, regardless of contingency: $5,356. 4) All compensation earned by or awarded to nonemployee independent contractors, whether paid or accrued, regardless of contingency: $450,610. 5) Each construction project with a total cost of at least $65,000 approved by the District that is scheduled to begin on or after October 1, 2021, together with the total expenditures for such project: The District did not have any construction projects. 6) A budget variance based on the budget adopted under Section 189.016(4), Florida Statutes, before the beginning of the fiscal year being reported if the District amends a final adopted budget under Section 189.016(6), Florida Statutes: The budget was not amended. As required by Section 218.39(3)(c), Florida Statutes, and Section 10.554(1)(i)8, Rules of the Auditor General, the Ridgewood Trails Community Development District reported: 7) The rate or rates of non-ad valorem special assessments imposed by the District: The General Fund, $605.65 - $733.61, and Debt Service Fund, $761.14 - $920.15. 8) The amount of special assessments collected by or on behalf of the District: Total special assessments collected was $434,497. 9) The total amount of outstanding bonds issued by the District and the terms of such bonds: Series 2007A Bonds, $135,000, maturing May 2038. To the Board of Supervisors Ridgewood Trails Community Development District Additional Matters Section 10.554(1)(i)3., Rules of the Auditor General, requires us to communicate noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but warrants the attention of those charged with governance. In connection with our audit, we did not note 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. Berger, Toombs, Elam, Gaines & Frank Certified Public Accountants PL Fort Pierce, Florida September 14, 2023 INDEPENDENT ACCOUNTANTS’ REPORT/COMPLIANCE WITH SECTION 218.415, FLORIDA STATUTES To the Board of Supervisors Ridgewood Trails Community Development District Clay County, Florida We have examined Ridgewood Trails Community Development District's compliance with Section 218.415, Florida Statutes during the year ended September 30, 2022. Management is responsible for Ridgewood Trails Community Development District’s compliance with those requirements. Our responsibility is to express an opinion on Ridgewood Trails 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 Ridgewood Trails 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 Ridgewood Trails Community Development District’s compliance with the specified requirements. In our opinion, Ridgewood Trails Community Development District complied, in all material respects, with the aforementioned requirements during the year ended September 30, 2022. Berger, Toombs, Elam, Gaines & Frank Certified Public Accountants PL Fort Pierce, Florida September 14, 2023