Candler Hills East Community Development District ANNUAL FINANCIAL REPORT September 30, 2023 Candler Hills East Community Development District ANNUAL FINANCIAL REPORT September 30, 2023 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 17-31 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 32-33 MANAGEMENT LETTER 34-36 INDEPENDENT ACCOUNTANTS’ REPORT/COMPLIANCE WITH SECTION 218.415, FLORIDA STATUTES 37 REPORT OF INDEPENDENT AUDITORS To the Board of Supervisors Candler Hills East Community Development District Marion 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 Candler Hills East Community Development District (the “District”), as of and for the year ended September 30, 2023, 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 Candler Hills East Community Development District as of September 30, 2023, 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 Candler Hills East 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 would influence the judgment made by a reasonable user based on the 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 Candler Hills East 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 March 25, 2024 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 the effectiveness of the District’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Candler Hills East Community Development District’s internal control over financial reporting and compliance. Berger, Toombs, Elam, Gaines & Frank Certified Public Accountants PL Fort Pierce, Florida March 25, 2024 Management’s discussion and analysis of Candler Hills East Community Development District (the “District”) financial performance provides an objective and easily readable analysis of the District’s financial activities. The analysis provides summary financial information for the District and should be read in conjunction with the District’s financial statements. OVERVIEW OF THE FINANCIAL STATEMENTS The District’s basic financial statements comprise three components; 1) Government-wide financial statements, 2) Fund financial statements, and 3) Notes to financial statements. The Government-wide financial statements present an overall picture of the District’s financial position and results of operations. The Fund financial statements present financial information for the District’s major funds. The Notes to financial statements provide additional information concerning the District’s finances. The Government-wide financial statements are the statement of net position and the statement of activities. These statements use accounting methods similar to those used by private-sector companies. Emphasis is placed on the net position of governmental activities and the change in net position. Governmental activities are primarily supported by special assessments. The statement of net position presents information on all assets and liabilities of the District, with the difference between assets and liabilities reported as net position. Net position 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 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, improvements, and infrastructure 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, 2023. . The District’s total assets and deferred outflows of resources exceeded total liabilities by $1,411,677 (net position). Unrestricted net position for Governmental Activities was $58,321. Net investment in capital assets was $990,530. Restricted net position was $362,826. . Governmental activities revenues totaled $312,406 while governmental activities expenses totaled $314,322. OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED) Financial Analysis of the District The following schedule provides a summary of the assets, deferred outflows of resources, liabilities and net position of the District and is presented by category for comparison purposes. Net Position The increase in restricted assets is related to revenues exceeding expenditures in the Debt Service Fund in the current year. 20232022Current assets63,836$ 59,461$ Restricted assets497,381 482,318 Capital assets3,067,682 3,245,653 Total Assets 3,628,899 3,787,432 Deferred outflows of resources17,819 19,131 Current liabilities160,242 193,186 Non-current liabilities2,074,799 2,199,784 Total Liabilities2,235,041 2,392,970 Net investment in capital assets990,530 1,024,000 Restricted debt service194,311 177,578 Restricted capital projects168,515 160,619 Net position - unrestricted58,321 51,396 Total Net Position1,411,677$ 1,413,593$ Governmental Activities The decrease in capital assets is primarily related to current year depreciation. The decrease in total liabilities is primarily related to principal payments made during 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 The decrease in charges for services is related to a decrease in special assessment prepayments in the current year. 20232022Program Revenues Charges for services295,337$ 310,634$ General Revenues Investment earnings17,069 1,594 Total Revenues312,406 312,228 Expenses General government45,776 47,408 Physical environment181,993 187,516 Interest and other charges86,553 90,750 Total Expenses314,322 325,674 Change in Net Position(1,916) (13,446) Net Position - Beginning of Year1,413,593 1,427,039 Net Position - End of Year1,411,677$ 1,413,593$ Governmental Activities OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED) Capital Assets Activity The following schedule provides a summary of the District’s capital assets as of September 30, 2023 and 2022. The activity for the year consisted of $177,971 in depreciation. General Fund Budgetary Highlights Description20232022Land1,373,401$ 1,373,401$ Improvements3,986,633 3,986,633 Infrastructure555,184 555,184 Accumulated depreciation(2,847,536) (2,669,565) Total Capital Assets (Net)3,067,682$ 3,245,653$ Governmental Activities Actual governmental expenditures were less than final budgeted amounts primarily due to lower mulch and stormwater expenditures than were anticipated in the approved budget. The 2023 budget was not amended. Debt Management Governmental Activities debt includes the following: . In November 2016, Bay Laurel Community Development District issued conduit debt of $3,380,000 Series 2016 Special Assessment Revenue Refunding Bonds for Candler Hills East Community Development District. These bonds were issued to refund the Series 2006 Special Assessment Bonds. The Bonds are special limited obligations of Bay Laurel Community Development District, payable solely from and secured by pledge revenues to be collected by Candler Hills East Community Development District. The balance outstanding at September 30, 2023 was $2,200,000. OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED) Economic Factors and Next Year’s Budget The District is not aware of any circumstances that would have a significant effect on the financial position or results of operations of the District in fiscal year 2024. Request for Information The financial report is designed to provide a general overview of Candler Hills East Community Development District 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 Candler Hills East Community Development District, Governmental Management Services, 219 East Livingston Street, Orlando, Florida 32801. Candler Hills East Community Development DistrictSTATEMENT OF NET POSITIONSeptember 30, 2023GovernmentalActivitiesASSETSCurrent Assets Cash $ 49,586Accounts receivable255Due from other governments6,173 Prepaid items7,822 Total Current Assets63,836Non-current Assets Restricted assets Investments497,381 Capital assets,not being depreciatedLand1,373,401Capital assets, being depreciated Improvements3,986,633 Infrastructure555,184 Less: accumulated depreciation(2,847,536) Total Non-current Assets3,565,063 Total Assets3,628,899DEFERRED OUTFLOWS OF RESOURCES Deferred amount on refunding, net17,819LIABILITIESCurrent Liabilities Accounts payable and accrued expenses523 Accrued interest34,719 Bonds payable - current portion125,000 Total Current Liabilities160,242Non-current Liabilities Bonds payable, net2,074,799 Total Liabilities2,235,041NET POSITIONNet investment in capital assets990,530Restricted debt service194,311Restricted capital projects168,515Unrestricted 58,321 Total Net Position$ 1,411,677 See accompanying notes. - 10 - Candler Hills East Community Development DistrictSTATEMENT OF ACTIVITIESFor the Year Ended September 30, 2023 Net (Expense) Revenues andProgramChanges inRevenuesNet PositionCharges forGovernmentalFunctions/ProgramsExpensesServicesActivities Governmental Activities General government$ (45,776)$ 52,133$ 6,357 Physical environment(181,993)4,581(177,412) Interest and other charges(86,553)238,623152,070Total Governmental Activities$ (314,322)$ 295,337(18,985) General revenues: Investment earnings17,069Change in Net Position(1,916) Net Position - October 1,20221,413,593Net Position - September 30, 2023$ 1,411,677 See accompanying notes. - 11 - Candler Hills East Community Development DistrictBALANCE SHEET – GOVERNMENTAL FUNDSSeptember 30, 2023TotalDebt CapitalGovernmentalASSETSGeneralServiceProjectsFundsCash $ 49,586$ --$ 49,586$ Accounts receivable255--255Due from other governments1,1814,992-6,173Prepaid items7,822--7,822Restricted assets Investments, at fair value-328,866168,515497,381 Total Assets58,844$ 333,858$ 168,515$ 561,217$ LIABILITIES AND FUND BALANCESLIABILITIESAccounts payable and accrued expenses$ 523$ --$ 523$ FUND BALANCESNonspendable Prepaid items7,822--7,822Restricted Debt service-333,858-333,858 Capital projects--168,515168,515Unassigned50,499--50,499 Total Fund Balances58,321333,858168,515560,694 Total Liabilities and Fund Balances58,844$ 333,858$ 168,515$ 561,217$ See accompanying notes. - 12 - Candler Hills East Community Development DistrictRECONCILIATION OF TOTAL GOVERNMENTAL FUND BALANCESTO NET POSITION OF GOVERNMENTAL ACTIVITIESSeptember 30, 2023 Total Governmental Fund Balances$ 560,694Amounts reported for governmental activities in the Statement of Net Positionare different because: Capital assets, consisting of land, $1,373,401, improvements, $3,986,633, and infrastructure, $555,184, net of accumulated depreciation, $(2,847,536), used in governmental activities are not current financial resourcesand, therefore, are not reported at the fund level.3,067,682Long-term liabilities, bonds payable, $(2,200,000) net of bond discount, net, $201, are not due and payable in the current period and, therefore, are not reported at the fund level.(2,199,799) Deferred amounts on refunding are recognized as other debt service costsin the funds, however, at the government-wide level these costs are amortizedover the life of the bond. This is the net deferred amount on refunding.17,819Accrued interest expense for long-term debt is not a current financial useand, therefore, is not reported at the fund level.(34,719) Net Position of Governmental Activities$ 1,411,677 See accompanying notes. - 13 - Candler Hills East Community Development DistrictSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES – GOVERNMENTAL FUNDSFor the Year Ended September 30, 2023 Total Revenues Special assessments Investment earnings Total RevenuesG$ eneral56,714956,723 DebtService$ 238,6239,164247,787 CapitalProjects$ - 7,8967,896GovernmentalFunds$ 295,33717,069312,406Expenditures Current General government Physical environment Debt service Principal Interest Total Expenditures45,7764,022- - 49,798- - 150,00086,913236,913- - - - - 45,7764,022150,00086,913286,711Net change in fund balances6,92510,8747,89625,695Fund Balances - October 1, 202251,396322,984160,619534,999Fund Balances - September 30, 2023$ 58,321$ 333,858$ 168,515$ 560,694 See accompanying notes. - 14 - Candler Hills East Community Development DistrictRECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES ANDCHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THESTATEMENT OF ACTIVITIESFor the Year Ended September 30, 2023 Net Change in Fund Balances - Total Governmental Funds$ 25,695Amounts reported for governmental activities in the Statement of Activities aredifferent because: the current period. estimated useful lives as depreciation. This is the amount of depreciation inGovernmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of those assets is allocated over their(177,971) Bond discount and the deferred amount on refunding are amortized over thelife of the bond at the government-wide level. This is the amount of current-yearamortization.(1,327) In the Statement of Activities, interest is accrued on outstanding bonds; whereasin governmental funds, interest expenditures are reported when due. This isthe net amount between the prior year and the current year accruals.1,687Repayment of bond principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the Statement of Net Position.150,000Change in Net Position of Governmental Activities$ (1,916) See accompanying notes.- 15 - CandlerHills EastCommunityDevelopmentDistrictSTATEMENT OF REVENUES, EXPENDITURES ANDCHANGES IN FUND BALANCES – BUDGET AND ACTUAL – GENERAL FUNDFor the Year Ended September 30, 2023 Variance withFinal BudgetOriginalFinalPositiveBudgetBudgetActual(Negative) Revenues Special assessments55,051$55,051$$56,714$1,663 Investment earnings25259(16) Total Revenues55,07655,07656,7231,647Expenditures CurrentGeneral government44,81244,81245,776(964) Physical environment17,24717,2474,02213,225Total Expenditures62,05962,05949,79812,261Net change in fund balances(6,983)(6,983)6,92513,908Fund Balances - October 1, 20226,9836,98351,39644,413Fund Balances - September 30, 2023$-$-$58,321$58,321 See accompanying notes. - 16 - NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements of Candler Hills East Community Development District (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 November 19, 2002 by an ordinance of Marion County, Florida, under the Uniform Community Development District Act of 1980, Chapter 190, Florida Statutes, as amended (the "Act"), as a Community Development District. 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 governed by a five-member Board of Supervisors, who are elected for terms of four years. The District operates within the criteria established by Chapter 190, Florida Statutes. The Board has the responsibility for assessing and levying assessments, approving budgets, exercising control over facilities and properties, controlling the use of funds generated by the District, approving the hiring and firing of key personnel, and financing improvements. The reporting entity for the District includes all functions of government in which the District’s Board exercises oversight responsibility. Oversight responsibility includes, but is not limited to, financial interdependency, designation of management, significant ability to influence operations and accountability for fiscal matters. As required by GAAP, these financial statements present the Candler Hills East Community Development District (the primary government) as a stand-alone government. 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 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, miscellaneous revenues and interest. Program revenues include charges for services, and payments made by parties outside of the reporting government’s citizenry if that money is restricted to a particular program. Program revenues are netted with program expenses in the statement of activities to present the net cost of each program. Amounts paid to acquire capital assets are capitalized as assets, rather than reported as an expenditure. Proceeds of long-term debt are recorded as liabilities in the government-wide financial statements, rather than as 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 has 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 the state constitution, external resource providers, or through enabling legislation. Assigned Fund Balance – This classification consists of the Board of Supervisors’ intent to be used for specific purposes but are neither restricted nor committed. The assigned fund balances can also be assigned by the District’s management company. Unassigned Fund Balance – This classification is the residual classification for the government’s general fund and includes all spendable amounts not contained in the other classifications. Unassigned fund balance is considered to be utilized first when 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. NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 2. Measurement Focus and Basis of Accounting (Continued) b. Fund Financial Statements (Continued) Governmental Funds (Continued) 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 were 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. NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 3. Basis of Presentation (Continued) a. Governmental Major Funds (Continued) Debt Service Fund – Accounts for debt service requirements to retire certain capital improvement revenue bonds which were used to finance the construction of District infrastructure improvements and finance certain additional improvements. The bond series is secured by a pledge of debt service special assessment revenues in any fiscal year related to the improvements. A lien is placed on all benefited land in relationship to the debt outstanding. Capital Projects Fund – The Capital Project Fund accounts for construction of infrastructure improvements within the boundaries of the District. 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 special assessment bonds, be reported in the governmental activities column in the government-wide statement of net position. 4. Assets, Deferred Outflows of Resources, Liabilities and Net Position 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. NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 4. Assets, Deferred Outflows of Resources, Liabilities and Net Position (Continued) a. Cash and Investments (Continued) 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. Cash equivalents include time deposits and certificates of deposit with original maturities of three months or less and held in a qualified public depository as defined by Florida Statute 280.02. b. Restricted Net Position Certain net position of the District are 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. c. Capital Assets Capital assets, which include land, infrastructure, and improvements, are reported in the applicable governmental activities column. 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. NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 4. Assets, Deferred Outflows of Resources, Liabilities and Net Position (Continued) c. Capital Assets (Continued) Depreciation of capital assets is computed and recorded by utilizing the straight-line method. Estimated useful lives of the various classes of depreciable capital assets are as follows: Improvements: 25 years Infrastructure: 30 years d. Deferred Outflows of Resources Deferred amounts on refunding are presented on the government-wide financial statements. The deferred resources are amortized over the life of the bonds using the straight-line method. e. Unamortized Bond Discount Bond discounts are presented on the government-wide financial statements. The costs are amortized over the life of the bonds using the straight-line method of accounting. For financial reporting, the unamortized bond discount is netted against the applicable long-term debt. f. 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 variance 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, $560,694, differs from “net position” of governmental activities, $1,411,677, 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. NOTE B – RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS (CONTINUED) 1. Explanation of Differences Between the Governmental Fund Balance Sheet and the Government-wide Statement of Net Position (Continued) Capital related items When capital assets (property, plant 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. Land $ 1,373,401 Improvements 3,986,633 Infrastructure 555,184 Accumulated depreciation (2,847,536) Total $ 3,067,682 Deferred outflows of resources Deferred amounts on refunding are deferred outflows of resources that are amortized over the life of the loan. Deferred amount on refunding, net $ 17,819 Long-term debt transactions Long-term liabilities and bond discount 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. Bonds payable $ (2,200,000) Bond discount, net 201 Bonds payable, net $ (2,199,799) Accrued interest Accrued liabilities in the Statement of Net Position differ from the amount reported in governmental funds due to accrued interest on bonds. Accrued interest on bonds payable $ (34,719) 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, $25,695, differs from the “change in net position” for governmental activities, $(1,916), 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 cost 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 decrease by the amount of depreciation charged for the year. Depreciation $ (177,971) Long-term debt transactions Repayments of bond principal are reported as an expenditure in the governmental funds and, thus, have the effect of reducing fund balance because current financial resources have been used. Debt principal payments $ 150,000 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 $ 1,687 Amortization of bond discount and deferred amount on refunding $ (1,327) 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, 2023, the District's bank balance was $60,477 and the carrying value was $49,586. Exposure to custodial credit risk was as follows. The District maintains all deposits in a qualified public depository in accordance with the provisions of Chapter 280, Florida Statutes, which means that all deposits are fully insured by Federal Depositors Insurance or collateralized under Chapter 280, Florida Statutes. Investments As of September 30, 2023, the District had the following investments and maturities: The District categorizes its fair value measurement within the fair value hierarchy established by generally accepted accounting principles. The fair value is the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. The District uses a market approach in measuring fair value that uses prices and other relevant information generated by market transactions involving identical or similar assets, liabilities, or groups of assets and liabilities. Assets or liabilities are classified into one of three levels. Level 1 is the most realizable and is based on quoted price for identical assets, or liabilities, in an active market. Level 2 uses significant other observable inputs when obtained quoted prices for identical or similar assets, or liabilities, in markets that are not active. Level 3 is the least reliable and uses significant unobservable inputs that uses the best information available under the circumstances which includes the District's own data in measuring unobservable inputs. Based on the criteria in the preceding paragraph, the investment in Managed Money Market is a Level 1 asset. InvestmentMaturitiesFair ValueFlorida PRIME35 days*168,515$ Managed Money MarketN/A328,866 Total497,381$ * Weighted Average Maturity NOTE C – CASH AND INVESTMENTS (CONTINUED) 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, 2023, there were no redemption fees, maximum transaction amounts, or any other requirements 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, 2023, the District's investment in Florida PRIME is rated AAAm by Standards & Poor’s. The District’s investments in Managed Money Market is not rated. 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 is 66% and the investments in the Florida PRIME is 34% of the District’s total investments. The types of deposits and investments and their level of risk exposure as of September 30, 2023 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 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. NOTE E – CAPITAL ASSETS Capital Asset activity for the year ended September 30, 2023 was as follows: Depreciation in the amount of $177,971 was charged to physical environment. BeginningEndingBalanceAdditionsDeletionsBalanceGovernmental Activities: Capital assets, not being depreciated: Land $ 1,373,401 $ - $ - 1,373,401$ Capital assets, being depreciated: Improvements3,986,633 - - 3,986,633 Infrastructure555,184 - - 555,184 Total Capital Assets, Being Depreciated4,541,817 - - 4,541,817 Less accumulated depreciation (2,669,565) (177,971) - (2,847,536) Total Capital Assets Depreciated, Net1,872,252 (177,971) - 1,694,281 Governmental Activities Capital Assets3,245,653$ (177,971)$ -$ 3,067,682$ NOTE F – LONG-TERM DEBT In November 2016, Bay Laurel Community Development District issued conduit debt of $3,380,000 of Special Assessment Revenue Refunding Bonds, Series 2016 ("Series 2016 Bonds"). In connection with the issuance of the Series Bonds, an agreement was established whereby Bay Laurel Community Development District loaned the Series 2016 Bonds funds to the District. The Series 2016 Bonds were issued to refund the Series 2006 Bonds. The Series 2016 Bonds are special limited obligation of Bay Laurel Community Development District, payable solely from and secured by pledge revenues to be collected by the District. The following is a summary of activity for long-term debt of the District for the year ended September 30, 2023: Long-term debt at October 1, 2022 $ 2,350,000 Principal payments (150,000) Long-term debt at September 30, 2023 2,200,000 Bond discount, net (201) Bonds Payable, Net $ 2,199,799 Special Assessment Revenue Refunding Bonds Long-term debt is comprised of the following: $3,380,000 Series 2016 Special Assessment Revenue Refunding Bonds due in annual installments beginning May 2017 and maturing May 2037. Interest at various interest rates between 2% and 4% due in May and November and starting in May 2017. Current portion is $125,000. $ 2,200,000 Bond discount, net (201) Bonds Payable, Net $ 2,199,799 NOTE F – LONG-TERM DEBT (CONTINUED) The annual requirements to amortize the principal and interest of bonded debt outstanding as of September 30, 2023 are as follows: Summary of Significant Bonds Resolution Terms and Covenants Special Assessment Revenue Refunding Bonds, Series 2016 The District levies special assessments pursuant to Section 190.022, Florida Statutes and the assessment rolls are approved by resolutions of the District Board. The collections are to be strictly accounted for and applied to the debt service of the bond series for which they were levied. The District covenants to levy special assessments in annual amounts adequate to provide for payment of principal and interest on the bonds. Payment of principal and interest is dependent on the money available in the debt service fund and the District’s ability to collect special assessments levied. The Bonds are subject to redemption at the option of the District and are also subject to extraordinary mandatory redemption prior to maturity as outlined in the Trust Indenture. Year EndingSeptember 30,PrincipalInterestTotal2024125,000$ 83,325$ 208,325$ 202590,000 79,888 169,888 2026135,000 77,188 212,188 2027140,000 72,125 212,125 2028145,000 66,875 211,875 2029-2033805,000 248,650 1,053,650 2034-2037760,000 77,399 837,399 Totals2,200,000$ 705,450$ 2,905,450$ 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: 1. Reserve Fund – The Series 2016 Reserve Account is funded from the proceeds of the Bonds in an amount equal to fifty percent of the Maximum Annual Debt Service Requirement for all Outstanding Series 2016 Bonds. Monies held in the reserve accounts will be used only for the purposes established in the Trust Indenture. ReserveReserveBalanceRequirementSeries 2016 $ 106,200 $ 104,828 NOTE G – RISK MANAGEMENT The government 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 have been no claims or settled claims from these risks exceeding commercial coverage over the past three years. NOTE H – SUBSEQUENT EVENT On November 1, 2023, the District prepaid $25,000 of the Series 2016 Special Assessment Revenue Refunding Bonds. 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 Candler Hills East Community Development District Marion 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 Candler Hills East Community Development District, as of and for the year ended September 30, 2023, and the related notes to the financial statements, which collectively comprise the basic financial statements and have issued our report thereon dated March 25, 2024. Report on Internal Control Over Financial Reporting In planning and performing our audit, we considered Candler Hills East 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 Candler Hills East Community Development District’s internal control. Accordingly, we do not express an opinion on the effectiveness of Candler Hills East 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 Candler Hills East Community Development District Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether Candler Hills East 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 March 25, 2024 MANAGEMENT LETTER To the Board of Supervisors Candler Hills East Community Development District Marion County, Florida Report on the Financial Statements We have audited the financial statements of the Candler Hills East Community Development District as of and for the year ended September 30, 2023, and have issued our report thereon dated March 25, 2024. 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 that report, which is dated March 25, 2024, 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 made to address findings and recommendations made in the preceding financial audit report. There were no findings or recommendations made in the preceding financial audit report. Financial Condition and Management Section 10.554(1)(i)5.a. and 10.556(7), Rules of the Auditor General, requires us to apply appropriate procedures and communicate the results of our determination as to whether or not Candler Hills East 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 the Candler Hills East Community Development District did not meet any of the conditions described in Section 218.503(1), Florida Statutes. To the Board of Supervisors Candler Hills East Community Development District Pursuant to Sections 10.554(1)(i)5.b. and 10.556(8), Rules of the Auditor General, we applied financial conditions assessment procedures as of September 30, 2023 for the Candler Hills East Community Development District. It is management’s responsibility to monitor the Candler Hills East Community Development District’s financial condition; our financial condition assessment was based in part on the representations made by management and the review of the financial information provided by the same. Section 10.554(1)(i)2., Rules of the Auditor General, requires that we communicate any recommendations to improve financial management. In connection with our audit, we did not have any such recommendations. Specific Information The information below was provided by management and has not been audited by us; 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, Candler Hills East Community Development District reported: 1)The total number of district employees compensated in the last pay period of theDistrict’s fiscal year: 0 2)The total number of independent contractors to whom nonemployee compensation waspaid in the last month of the District’s fiscal year: 4 3)All compensation earned by or awarded to employees, whether paid or accrued, regardless of contingency: $4,000 4)All compensation earned by or awarded to nonemployee independent contractors, whether paid or accrued, regardless of contingency: $44,371 5)Each construction project with a total cost of at least $65,000 approved by the Districtthat is scheduled to begin on or after October 1, 2022, together with the totalexpenditures for such project: N/A. 6)A budget variance based on the budget adopted under Section 189.016(4), FloridaStatutes, before the beginning of the fiscal year being reported if the District amends afinal adopted budget under Section 189.016(6), Florida Statutes: The District did notamend the original budget. As required by Section 218.39(3)(c), Florida Statutes, and Section 10.554(1)(i)8, Rules of the Auditor General, the Candler Hills East Community Development District reported: 1)The rate or rates of non-ad valorem special assessments imposed by the District. TheGeneral Fund assessment was $93 and the Debt Service assessment was $550. 2)Total Special Assessments collected was $295,337. 3)The total amount of outstanding bonds issued by the District and the terms of suchbonds. The District had outstanding bonds at September 30, 2023 of $2,200,000 Series2016 Bonds maturing May 2037. To the Board of Supervisors Candler Hills East 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 which 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 March 25, 2024 INDEPENDENT ACCOUNTANTS’ REPORT/COMPLIANCE WITH SECTION 218.415, FLORIDA STATUTES To the Board of Supervisors Candler Hills East Community Development District Marion County, Florida We have examined Candler Hills East Community Development District's compliance with Section 218.415, Florida Statutes during the year ended September 30, 2023. Management is responsible for Candler Hills East Community Development District’s compliance with those requirements. Our responsibility is to express an opinion on Candler Hills East 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 Candler Hills East 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 Candler Hills East Community Development District’s compliance with the specified requirements. In our opinion, Candler Hills East Community Development District complied, in all material respects, with the aforementioned requirements during the year ended September 30, 2023. Berger, Toombs, Elam, Gaines & Frank Certified Public Accountants PL Fort Pierce, Florida March 25, 2024