Rolling Hills Community Development District

ANNUAL FINANCIAL REPORT

September 30, 2019

Rolling Hills Community Development District ANNUAL FINANCIAL REPORT
September 30, 2019

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 Balance
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 the Financial Statements	16-30
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	31-32
MANAGEMENT LETTER	33-34
INDEPENDENT ACCOUNTANT’S REPORT/COMPLIANCE WITH
SECTION 218.415, FLORIDA STATUTES	35

REPORT OF INDEPENDENT AUDITORS

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

Report on the Financial Statements

We have audited the accompanying financial statements of Rolling Hills Community Development District as of and for the year ended September 30, 2019, 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. 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
Rolling Hills Community Development District

Opinion

In our opinion, the basic financial statements referred to above present fairly, in all material respects, the financial position of the governmental activities and each major fund of Rolling Hills Community Development District as of September 30, 2019, 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

Governmental accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis and budgetary comparison be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by 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 in accordance with governmental auditing standards generally accepted in the  United States of America, which consisted principally of inquires of management regarding 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 January 30, 2020 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.

Community Development Distr

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 Rolling Hills
ict’s internal control over financial reporting and compliance.

Berger, Toombs, Elam, Gaines & Frank Certified Public Accountants PL
Fort Pierce, Florida January 30, 2020

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Management’s discussion and analysis of Rolling Hills 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, culture recreation, 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 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 land, infrastructure, buildings and improvements other than buildings 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 government-wide 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 financial activity for the year ended September 30, 2019.

   The District’s total assets and deferred  outflows  of  resources exceeded total liabilities by
$4,439,556  (net  position).	The    District’s   net   investment   in   capital   assets   was
$4,354,085. Unrestricted net position was $85,471.

 Governmental activities revenues totaled $1,279,773 while governmental activities expenses totaled $1,472,329.

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	

Current assets	  

$	Governmental   Activities	 2019	2018

261,296	$	180,029	
Restricted assets		367,506	386,451	
Capital assets		11,187,976	 11,651,536	
Total Assets		11,816,778	 12,218,016	

Deferred outflows of resources	 		36,565	 		38,654 518,787		499,558	
Current liabilities		
Non-current liabilities	     6,895,000	 7,125,000
     7,413,787	 7,624,558

4,354,085	4,605,576	
Total Liabilities		
Net investment in capital assets		
Net position - unrestricted
Total Net Position	
$ 	85,471	 	26,536
4,439,556	$   4,632,112	

The increase in current assets is related to the increase in cash and prepaid expenses in the current year.
The decrease in restricted assets is primarily the result of the decrease in the 2015A3 revenue investment the current year.
The decrease in capital assets is due to current year depreciation.

The increase in current liabilities is primarily due to the increase  in  accounts  payable  in  the  current year.
The decrease in net investment in capital assets is the result of principal payments being less than depreciation 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

 	2019		 	2018		
Program Revenues	
Charges for services	$	1,274,042	$	1,392,347	
General Revenues		
Investment earnings	1,408	1,115	
Miscellanous revenues	 		4,323	3,493

 	1,279,773	 	1,396,955	
Total Revenues		
Expenses		
General government	114,542	91,544	
Physical environment	478,366	473,318	
Culture and recreation	440,249	412,263	
Interest on long-term debt	 		439,172	456,231

 	1,472,329	 	1,433,356
(192,556)	(36,401)	
Total Expenses		
Change in Net Position		
Net Position - Beginning of Year	 	
Net Position - End of Year	 $		4,632,112	 	4,668,513
4,439,556	 $	4,632,112	

The decrease in charges for services is due to a budgeted decrease in debt service special assessments in the current year for Debt Service Fund 2015A-2.
The increase in general government is related to an increase in insurance  expense  in  the  current year.
The decrease in interest on long-term debt is the result of current year principal payments.

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, 2019 and 2018:

Description			Governmental Activities
2019	2018	
Improvements other than buildings		$	1,269,084		$	1,269,084	
Infrastructure			9,650,172		9,650,172	
Building			4,898,886		4,898,886	
Less: accumulated depreciation
Total Capital Assets, Net		
 $		(4,630,166)
11,187,976		(4,166,606)

 $ 11,651,536	

Capital asset activity consisted of $463,560 in depreciation in the current year.

General Fund Budgetary Highlights

Budgeted expenditures exceeded actual expenditures primarily due to less capital reserve and professional services expenditures than were anticipated.

The   budget  was  amended	for the year ended September 30, 2019 to provide for lower revenues than were anticipated and a corresponding reduction in expenditures.

Debt Management

Governmental Activities debt includes the following:

 In November 2015, the District issued $2,500,000 Series 2015A-1 Capital Improvement Revenue Refunding Bonds to refund and exchange a portion of the  Series  2006A  Capital Improvement Bonds. The balance outstanding on the Series 2015A-1 Capital Improvement Revenue Refunding Bonds at September 30, 2019 was $1,980,000.

 In November 2015, the District issued $1,930,000 Series 2015A-2 Capital Improvement Revenue Refunding Bonds to refund and exchange a portion of the Series 2006A Capital Improvement Bonds. The balance outstanding on the Series 2015A-2 Capital Improvement Revenue Refunding Bonds at September 30, 2019 was $1,560,000.

OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)

Debt Management (Continued)

 In November 2015, the District issued $3,850,000 Series 2015A-3 Capital Improvement Revenue Refunding Bonds to refund and exchange a portion of the  Series  2006A  Capital Improvement Bonds. The balance outstanding on the Series 2015A-3 Capital Improvement Revenue Refunding Bonds at September 30, 2019 was $3,575,000.

Economic Factors and Next Year’s Budget

Rolling Hills 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 2020.

Request for Information

The financial report is designed to provide a general overview of Rolling Hills 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 Rolling Hills Community Development District, Governmental Management Services, LLC, 475 West Town Place, Suite 114, St. Augustine, FL 32092.

STATEMENT OF NET POSITION
September 30, 2019

	Governmental
Activities	
ASSETS
Current Assets		
Cash and equivalents	$	103,565	
Assessments receivables	121,376	
Prepaid expenses	35,908	
Due from developer	 	447	
Total Current Assets	 	261,296	
Non-current Assets Restricted
Investments, at fair value	367,506
Capital assets, being depreciated
Improvements other than building	1,269,084	
Infrastructure	9,650,172	
Building	4,898,886	
Less: accumulated depreciation	 	(4,630,166)	
Total Non-Current Assets	 	11,555,482	
Total Assets	 	11,816,778	

DEFERRED OUTFLOWS OF RESOURCES
Deferred amount on refunding, net	 	36,565

LIABILITIES
Current Liabilities
Accounts payable and accrued expenses	41,110	
Accrued interest	257,677	
Bonds payable	 	220,000	
Total Current Liabilities	 	518,787	
Non-current Liabilities
Bonds payable	 	6,895,000
Total Liabilities	 	7,413,787

NET POSITION		
Net investment in capital assets	4,354,085	
Unrestricted	 	85,471	
Total Net Position	 $	4,439,556	

See accompanying notes.

STATEMENT OF ACTIVITIES
For the Year Ended September 30, 2019

		Net (Expense)	
		Revenue and	
	Program	Changes in	
	Revenues	Net Position	

Charges for	
Governmental	
Functions/Programs	 Expenses	Services	Activities	
Primary Government			
Governmental Activities			
General government	$	(114,542)	$	124,479	$	9,937	
Physical environment	(478,366)	221,558	(256,808)	
Culture and recreation	(440,249)	272,971	(167,278)	
Interest on long-term debt	(439,172)	655,034	215,862	
Total Governmental Activities	
 $(1,472,329)	 $	1,274,042	(198,287)	
	
General Revenues		
	Investment earnings	1,408	
	Miscellaneous revenues	4,323	
	Total General Revenues	5,731	
	
Change in Net Position	
(192,556)	
	Net Position - October 1, 2018
Net Position - September 30, 2019	4,632,112	
		$	4,439,556	

See accompanying notes.

Rolling Hills Community Development District BALANCE SHEET – GOVERNMENTAL FUNDS
September 30, 2019

									Total	
			Debt Service		Debt Service		Debt Service		Governmental	
	    General			Series 2015A-1		Series 2015A-2		Series 2015A-3		 	Funds		
ASSETS										
Cash and cash equivalents	$	103,565		$	-		$	-		$	-		$	103,565	
Assessments receivables	-		-		-		121,376		121,376	
Prepaid expenses	35,908		-		-		-		35,908	
Due from developer	447		-		-		-		447	
Restricted										
Investments, at fair value	 	-		 	156,885		 	149,874		 	60,747		 	367,506	
Total Assets	 $	139,920		 $	156,885		 $	149,874		 $	182,123		 $	628,802	

LIABILITIES AND FUND BALANCES										
Liabilities										
Accounts payable and accrued expenses	 $	41,110		 $	-		 $	-		 $	-		 $	41,110	
Fund Balances										
Nonspendable-prepaid expenses	35,908		-		-		-		35,908	
Restricted										
Debt service	-		156,885		149,874		182,123		488,882	
Unassigned	 	62,902		 	-		 	-		 	-		 	62,902	
Total Fund Balances	 	98,810		 	156,885		 	149,874		 	182,123		 	587,692	
Total Liabilities and Fund Balances	 $	139,920		 $	156,885		 $	149,874		 $	182,123		 $	628,802	

See accompanying notes.

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Rolling Hills Community Development District      RECONCILIATION OF TOTAL GOVERNMENTAL FUND BALANCE TO NET POSITION OF GOVERNMENTAL ACTIVITIES
September 30, 2019

Total Governmental Fund Balances	$	587,692	
Amounts reported for governmental activities in the Statement of Net Position are different because:			
Capital assets being depreciated, improvements other than building ($1,269,084), infrastructure ($9,650,172), building ($4,898,886), net of accumulated depreciation ($(4,630,166)), used in governmental activities are not current financial resources and therefore, are not reported at the governmental fund level.	

11,187,976	
Long-term liabilities, including bonds payable, are not due and payable in the current period and therefore, are not reported at the governmental fund level.	
(7,115,000)	
Deferred outflows of resources are not current financial resources and therefore, are not reported at the governmental fund level.		
36,565	
Accrued interest expense is not a current financial use and; therefore, is not reported at the governmental fund level.	
 	(257,677)	
Net Position of Governmental Activities	 $ 4,439,556	

See accompanying notes.

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Rolling Hills Community Development District STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES – GOVERNMENTAL FUNDS
For the Year Ended September 30, 2019

										Total	
				Debt Service		Debt Service		Debt Service		Governmental	
	 	General		Series 2015A-1		Series 2015A-2		Series 2015A-3		Funds	
Revenues											
Special assessments	$	619,008		$	174,314		$	137,047		$	343,673		$	1,274,042	
Investment earnings		-		640		469		299		1,408	
Miscellaneous	 	4,323	 	-		 	-		 	-		 	4,323	
Total Revenues	623,331	174,954		137,516		343,972		1,279,773	

Expenditures											
Current											
General government		114,542		-		-		-		114,542	
Physical environment		203,873		-		-		-		203,873	
Culture and recreation		251,182		-		-		-		251,182	
Debt service											
Principal		-		70,000		45,000		100,000		215,000	
Interest	 	-	 	109,260		 	86,606		 	246,225		 	442,091	
Total Expenditures	569,597	179,260		131,606		346,225		1,226,688

53,085	

Net change in fund balances		
53,734		
(4,306)		
5,910		
(2,253)			
Fund Balances - October 1, 2018

Fund Balances - September 30, 2019	

   $		45,076

98,810		161,191

   $	156,885		143,964

   $	149,874		184,376

   $	182,123		534,607

   $	587,692	

See accompanying notes.

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Rolling Hills 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, 2019

Net Change in Fund Balances - Total Governmental Funds	$	53,085	
Amounts reported for governmental activities in the Statement of Activities are different because:			
Governmental funds report capital outlays as expenditures.  However, in the Statement of Activities, the cost of those assets is allocated over their estimated useful lives as depreciation. This is the amount of depreciation in the current period.		

(463,560)	
Repayments of bond principal are expenditures in the governmental funds, but the repayment reduces long-term liabilities in the Statement of Net Position.		

215,000	
Deferred amount on refunding is recognized as a component of interest on long-term debt in the Statement of Activities, but in the governmental funds. This is the amount of interest in the current period.		

(2,089)	
In the Statement of Activities, interest is accrued on outstanding bonds; whereas in governmental funds, interest expenditures are reported when due. This is the net amount between the prior year and current year accruals.		

5,008	

Change in Net Position of Governmental Activities	
 $		
(192,556)	

See accompanying notes.

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES – BUDGET AND ACTUAL – GENERAL FUND
For the Year Ended September 30, 2019

										Variance with	
										Final Budget	
	Original			Final					Positive	
	  		 (Negative)	
Revenues											
Special assessments	$	635,580		$	618,384		$	619,008		$	624	
Miscellaneous revenues		6,280			6,280			4,323		(1,957)
(1,333)	
Total Revenues		641,860			624,664			623,331			

Expenditures											
Current											
General government		114,562			114,562			114,542		20	
Physical environment		195,210			195,210			203,873		(8,663)	
Culture and recreation		331,948			313,948			251,182		62,766	
Total Expenditures		641,720			623,720			569,597		54,123	

Net change in fund balances		
140			
944			
53,734		
52,790	
Fund Balances - October 1, 2018		-			-			45,076			45,076	
Fund Balances - September 30, 2019	 $		140		 $		944		 $		98,810		 $		97,866	

See accompanying notes.

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 March 14, 2006, pursuant to the Uniform Community Development District Act of 1980, 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 without the boundaries of the Rolling Hills Community Development District. The District is governed by a five-member Board of Supervisors who were elected by landowners of the District for two and four year terms. The District operates within the criteria established by Chapter 190, Florida Statutes.

As required by GAAP, these financial statements present the Rolling Hills 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, the District has identified no component units.

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

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 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.

Governmental Funds

When both restricted and unrestricted resources are combined in a fund, qualified expenses are considered to be paid first from restricted resources, and then from unrestricted resources. 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.

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 another financing source rather than as a fund  liability.  Debt service expenditures are recorded only when payment is due.

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 classifications include non-spendable, restricted, committed, assigned and unassigned.

Governmental Funds (Continued)

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. 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.

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.

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 Series 2015A-1 – Accounts for debt service requirements to retire the Series 2015A-1 Capital Improvement Revenue Refunding Bonds. The Series 2015A-1 Bonds were issued to refund and exchange a portion of the Series 2006A Capital Improvement Bonds.

Basis of Presentation (Continued)

Governmental Major Funds (Continued)

Debt Service Fund Series 2015A-2 – Accounts for debt service requirements to retire the Series 2015A-2 Capital Improvement Revenue Refunding Bonds. The Series 2015A-2 Bonds were issued to refund and exchange a portion of the Series 2006A Capital Improvement Bonds.

Debt Service Fund Series 2015A-3 – Accounts for debt service requirements to retire the Series 2015A-3 Capital Improvement Revenue Refunding Bonds. The Series 2015A-3 Bonds were issued to refund and exchange a portion of the Series 2006A Capital Improvement Bonds.

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 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 net position, qualified expenses are considered to be  paid first from restricted net position and then from unrestricted net position.

Capital Assets

Capital assets, which include buildings, improvements other than buildings, and infrastructure 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.

Depreciation of capital assets is computed and recorded by utilizing the straight-line method over the assets’ estimated useful lives ranging from 5 to 40 years.

Deferred Outflows of Resources

Deferred outflows of resources represent a consumption of net position/fund balance  that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The District only has one item that qualifies for reporting in this category. It is the deferred amount on refunding reported on the Statement of Net Position. A deferred amount on refunding results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt.

Net Position

Net position represents the difference between assets and liabilities and is reported in three categories. Net investment in capital assets, represent 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.

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.  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.

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, $587,692, differs from “net position” of governmental activities, $4,439,556, 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, infrastructure, and buildings 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.

Improvements other than buildings	$ 1,269,084	
Infrastructure	9,650,172	
Building	4,898,886	
Accumulated depreciation	 (4,630,166)	
Total	$ 11,187,976	

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

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

Long-term debt transactions

Long-term liabilities applicable to the District’s governmental activities are not due and payable in the current period and accordingly are not reported as fund liabilities. All liabilities (both current and long-term) are reported in the Statement of Net Position. Balances at September 30, 2019 were:

Bonds payable	$ (7,115,000)

Deferred outflows of resources

Deferred outflows of resources applicable to the District’s governmental activities are not financial resources, and therefore, are not recognized at the governmental fund level.

Deferred amount on refunding, net	$	36,565

Accrued interest
Accrued liabilities in the Statement of Net Position differ from the accrued interest on bonds, which are not reported at the fund level because they do not use current resources.

Accrued interest	$	(257,677)

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

The “net change in fund balances” for government funds, $53,085, differs from the “change in net position” for governmental activities, $(192,556), 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.

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 (Continued)

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. As a result, fund balances decrease by the amount of financial resources expended, whereas net position decreases by the amount that depreciation exceeds capital outlay.
Depreciation	$	(463,560)

Long-term debt transactions

Repayment of long-term liabilities are reported as expenditures in the governmental fund statement but such repayments reduce liabilities in the Statement of Net Position and are eliminated in the Statement of Activities.

Debt principal payments	$	215,000

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	$	5,008	
Decrease in deferred amount on refunding	 	(2,089)	
Total	$	2,919	

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 does not have a formal deposit policy for custodial credit risk; however, they follow the provisions of Chapter 280, Florida Statutes regarding deposits and investments. As of September 30, 2019, the District's bank balance was $114,626 and the carrying value were $103,565. 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, 2019, the District had the following investments and maturities:

 	Investment		Maturities		Fair Value Managed  Money Market Accounts			N/A	$		367,506
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 Managed Money Market Account is a Level 1 asset.

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. Direct obligations of the United States Treasury are held in a money market fund that allows daily demand withdrawals at par in the event of a decrease in interest rates.

Credit Risk

The District's investments in treasury funds, commercial paper, 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.

Concentration of Credit Risk

The District places no limit on the amount it may invest in any one fund. The investments in Managed Money Market Accounts are 100% of the District’s total investments.

The types of deposits and investments and their level of risk exposure as of  September  30, 2019 were typical of these items during the fiscal year then ended. The District considers any decline in fair value 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 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 County Tax Collector on November 1 and due on or before March 31 of each year. Property owners may prepay a portion or all of the Debt Service Assessments on their property subject to various provisions in the bond documents.

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, 2019 was as follows:

		Balance			Balance	
		October 1,			September 30,	
	 	2018		 Additions		 Deletions		 	2019		
Governmental Activities:					
Capital Assets, Being Depreciated:						
Improvements other than buildings	$	1,269,084	$	-	$	-	$ 1,269,084	
Infrastructure		9,650,172	-	-	9,650,172	
Building	 	4,898,886	 	-	 	-	 	4,898,886
   15,818,142	
Total Capital Assets, Being Depreciated	   15,818,142	 	-	 	-		
Less accumulated depreciation for:						
Improvements other than buildings		(565,666)	(63,455)	-	(629,121)	
Infrastructure		(2,470,427)	(274,492)	-	(2,744,919)	
Building		(1,130,513)	    (125,613)	-	    (1,256,126)
    (4,630,166)
   11,187,976
 $ 11,187,976	
Total Accumulated Depreciation	    (4,166,606)	    (463,560)	 	-		
Total Capital Assets Depreciated, Net
Governmental Activities Capital Assets	  
 $ 	11,651,536
11,651,536	    (463,560)
 $  (463,560)	 	-
 $	-		

Depreciation of $463,560 was allocated to the physical environment, $274,493, and culture and recreation, $189,067.

NOTE F – LONG-TERM DEBT

The following is a summary of debt activity for the District for the year ended September 30, 2019:
	Balance					Balance		
	October 1,					September 30,	Due Within	
	 	2018		  Additions			  Deletions		 	2019		 One Year	
Bonds Payable								
Capital Improvement Revenue								
Refunding Bonds, Series 2015A-1	$ 2,050,000	$	-	$	70,000	$ 1,980,000	$	65,000	
Capital Improvement Revenue								
Refunding Bonds, Series 2015A-2	1,605,000		-		45,000	1,560,000	50,000	
Capital Improvement Revenue								
Refunding Bonds, Series 2015A-3
Bonds Payable	    3,675,000
 $  7,330,000	 	
 $		-
-	 	
 $		100,000
215,000	    3,575,000
 $  7,115,000	 	105,000
 $	220,000	

District debt is comprised of the following at September 30, 2019:

Capital Improvement Revenue Refunding Bonds		
$2,500,000 Series 2015A-1 Capital Improvement Revenue Refunding Bonds due in annual principal installments through May 1, 2037 at various interest rates between 3.3% and  5.6%, payable May 1 and November 1.	

$	1,980,000	
$1,930,000 Series 2015A-2 Capital Improvement Revenue Refunding Bonds due in annual principal installments through May 1, 2037 at various interest rates between 5.125% and 5.5%, payable May 1 and November 1.	

1,560,000	
$3,850,000 Series 2015A-3 Capital Improvement Revenue Refunding Bonds due in annual principal installments through May 1, 2037 at an interest rate of 6.7%, payable May 1 and
November 1.	

 	3,575,000	
Bonds Payable	$	7,115,000	

The annual requirements to amortize the principal and interest of bonded debt outstanding as of September 30, 2019 are as follows:

Year Ending							
 September 30,	    Principal		 		Interest		 	Total		
2020	$	220,000	$	430,209	$	650,209	
2021		235,000		417,816		652,816	
2022		250,000		404,329		654,329	
2023		265,000		389,626		654,626	
2024		285,000		373,998		658,998	
2025-2029		1,770,000		1,589,648		3,359,648	
2030-2034		2,330,000		984,568		3,314,568	
2034-2037
Totals	 	1,760,000	 	221,154	 	1,981,154	
	 $		7,115,000	 $		4,811,348	 $		11,926,348	

Significant Bond Provisions

The Series 2015A-1, 2015A-2, and 2015A-3 Bonds are subject to redemption at the option of the District prior to their maturity, in whole or in part, at a redemption price and date set in the Trust Indenture. The 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 Bond Indenture has certain restrictions, requirements, and procedures to be followed by the District on assessments to property owners. The  District  agrees to levy special  assessments  and collect  such 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 Fund – The Series 2015 Reserve Accounts were funded from the proceeds of the Series 2015 Bonds in an amount established in the Trust Indenture. Monies held in the reserve and prepayment accounts will be used only for the purposes established in the Trust Indenture.

Reserve		Reserve	
	Balance		Requirement
$	91,544	
Series 2015A-1 Capital Improvement Revenue Refunding Bonds	$	91,544			
Series 2015A-2 Capital Improvement Revenue Refunding Bonds	$	100,000		$	100,000	
Series 2015A-3 Capital Improvement Revenue Refunding Bonds	$	53,000		$	53,000	

NOTE G – 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 District carries commercial insurance.

NOTE H – ECONOMIC DEPENDENCY AND RELATED PARTIES

A substantial portion of the District’s activity is dependent upon the continued involvement of the developer, the loss of which could have a materially adverse effect on the District. At September 30, 2019, the developer held the majority of the assessable property located within District boundaries. The developer pays special assessments on land it owns.

One member of the Board of Supervisors was employed by the developer or its affiliates at September 30, 2019.

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

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

We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States the financial statements of Rolling Hills Community Development District (the “District”) as of and for the year ended September 30, 2019, and the related notes to the financial statements, which collectively comprise Rolling Hills Community Development District’s basic financial statements, and have issued our report thereon dated January 30, 2020.

Internal Control over Financial Reporting

In planning and performing our audit, we considered Rolling Hills Community Development District's internal control over financial reporting (internal control) as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of Rolling Hills Community Development District's internal control. Accordingly, we do not express an opinion on the effectiveness of Rolling Hills 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 over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be deficiencies, significant deficiencies or material weaknesses. 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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To the Board of Supervisors
Rolling Hills Community Development District

Compliance and Other Matters

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

Purpose of this report

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

Berger, Toombs, Elam, Gaines & Frank Certified Public Accountants, PL
Fort Pierce, Florida January 30, 2020

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MANAGEMENT LETTER

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

Report on the Financial Statements

We have audited the financial statements of the Rolling Hills Community Development District as of and for the year ended September 30, 2019, and have issued our report thereon dated January 30, 2020.

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 January 30, 2020, 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 Rolling Hills 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 Rolling Hills Community Development District did not meet any of the conditions described in Section 218.503(1) Florida Statutes.

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To the Board of Supervisors
Rolling Hills Community Development District

Pursuant to Sections 10.554(1)(i)5.c. and 10.556(8), Rules of the Auditor General, we applied financial condition assessment procedures for Rolling Hills Community Development District. It is management’s responsibility to monitor the Rolling Hills 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, 2019.

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

Additional Matters

Section 10.554(1)(i)3., Rules of the Auditor General, requires 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 January 30, 2020

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INDEPENDENT ACCOUNTANT’S REPORT/COMPLIANCE WITH SECTION 218.415, FLORIDA STATUTES

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

We have examined Rolling Hills Community Development District's compliance with Section 218.415, Florida Statutes during the year ended September 30, 2019. Management is responsible for Rolling Hills Community Development District’s compliance with those requirements. Our responsibility is to express an opinion on Rolling Hills 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 Rolling Hills 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 Rolling Hills Community Development District’s compliance with the specified requirements.

In our opinion, Rolling Hills Community Development District complied, in all material respects, with the aforementioned requirements during the year ended September 30, 2019.

Berger, Toombs, Elam, Gaines & Frank Certified Public Accountants PL
Fort Pierce, Florida January 30, 2020

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