ST. LUCIE WEST SERVICES DISTRICT ST. LUCIE COUNTY, FLORIDA FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023

ST. LUCIE WEST SERVICES DISTRICT ST. LUCIE COUNTY, FLORIDA
TABLE OF CONTENTS

	Page	
INDEPENDENT AUDITOR’S REPORT	1-2	
MANAGEMENT’S DISCUSSION AND ANALYSIS	3-7	
BASIC FINANCIAL STATEMENTS		
Government-wide Financial Statements:		
Statement of Net Position	8	
Statement of Activities	9	
Fund Financial Statements:		
Balance Sheet – Governmental Fund	10	
Reconciliation of the Balance Sheet – Governmental Funds to the Statement of Net Position	11	
Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Fund	12	
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities	13	
Statement of Net Position – Proprietary Funds	14	
Statement of Revenues, Expenses and Changes in Net Position – Proprietary Funds	15	
Statement of Cash Flows – Proprietary Funds	16-17	
Notes to the Financial Statements	18-30	
REQUIRED SUPPLEMENTARY INFORMATION		
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual – General Fund	31	
Notes to Required Supplementary Information	32	
OTHER INFORMATION		
Data Elements required by FL Statute 218.39 (3) (c)	33	
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	

34-35	
INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE WITH THE REQUIREMENTS OF SECTION 218.415, FLORIDA STATUTES, REQUIRED BY RULE 10.556(10)
OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA	

36	
MANAGEMENT LETTER PURSUANT TO THE RULES OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA	
37-38	

INDEPENDENT AUDITOR’S REPORT
To the Board of Supervisors St. Lucie West Services District St. Lucie County, Florida

951 Yamato Road ▪ Suite 280 Boca Raton, Florida 33431
(561) 994-9299 ▪ (800) 299-4728
Fax (561) 994-5823
www.graucpa.com

Report on the Audit of the Financial Statements Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type
activities, and each major fund of St. Lucie West Services District, St. Lucie County, Florida (the “District”) as of and for the fiscal year ended September 30, 2023, and the related notes to the financial statements, which collectively comprise the District’s basic financial statements as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities and each major fund of the District as of September 30, 2023, and the respective changes in financial position thereof for the fiscal year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit 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 audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements
The District’s management is responsible for the preparation and fair presentation of the 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.
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 twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
Auditor’s Responsibilities 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 opinions. 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 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, we:
Exercise professional judgment 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 judgment, 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.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and budgetary comparison information 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 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 Information Included in the Financial Report
Management is responsible for the other information included in the financial report. The other information comprises the information for compliance with FL Statute 218.39 (3) (c) but does not include the financial statements and our auditor's report thereon. Our opinions on the financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated June 26, 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, contracts, grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the District’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the District’s internal control over financial reporting and compliance.

June 26, 2024

MANAGEMENT’S DISCUSSION AND ANALYSIS

Our discussion and analysis of St. Lucie West Services District, St. Lucie County, Florida’s (“District”) provides a narrative overview of the District’s financial activities for the fiscal year ended September 30, 2023. Please read it in conjunction with the District’s Independent Auditor’s Report, basic financial statements, accompanying notes and supplementary information to the basic financial statements themselves.

FINANCIAL HIGHLIGHTS

The assets plus deferred outflows of resources of the District exceeded its liabilities at the close of the most recent fiscal year resulting in a net position balance of $67,389,944.

The change in the District’s total net position in comparison with the prior fiscal year was $2,893,614, an increase. The key components of the District’s net position and change in net position are reflected in the table in the government-wide financial analysis section.

At September 30, 2023, the District’s governmental funds reported combined ending fund balances of
$4,341,183, a decrease of ($1,084,808) in comparison with the prior year. The total fund balance is restricted for debt service and capital projects, assigned for renewal and replacement and subsequent year’s expenditures, and the remainder is unassigned fund balance which is available for spending at the District’s discretion.
OVERVIEW OF FINANCIAL STATEMENTS

This discussion and analysis are intended to serve as the introduction to the District’s basic financial statements. The District’s basic financial statements are comprised of three components: 1) government- wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves.

Government-Wide Financial Statements

The government-wide financial statements are designed to provide readers with a broad overview of the District’s finances in a manner similar to a private-sector business.
The statement of net position presents information on all the District’s assets, deferred outflows of resources and liabilities, with the residual amount being reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the District is improving or deteriorating.

The statement of activities presents information showing how the government’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods.

Both of the government-wide financial statements distinguish functions of the District that are principally supported by assessments and stormwater fees (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the District include general (management), and maintenance and operations. The business-type activities of the District include the Utility (water and sewer) operation.
Fund Financial Statements

A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The District, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. The District has two fund categories: governmental and proprietary funds.

Governmental Funds
Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a District’s near-term financing requirements.

Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the District’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balance provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.

The District maintains three governmental funds for external reporting. Information is presented separately in the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances for the general, water management debt service, and water management capital projects funds, all of which are considered to be major funds.

The District adopts an annual appropriated budget for its general fund. A budgetary comparison schedule has been provided for the general fund to demonstrate compliance with the budget.

The District also adopts an annual operating budget for the utility fund. Proprietary Fund
The District maintains one type of proprietary fund, an enterprise fund. An enterprise fund is used to report the same function presented as business-type activities in the government-wide financial statements. The District uses an enterprise fund to account for the operations of the water and sewer utility services within the District.

Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail.
Notes to the Financial Statements

The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements.

As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. In the case of the District, assets plus deferred outflows of resources exceeded liabilities at the close of the most recent fiscal year.
Key components of the District’s net position are reflected in the following table:

NET POSITION SEPTEMBER 30,
Governmental activities

Business-type activities

Total

	2023	2022	2023	2022	2023	2022	

Current and other assets	
$	2,309,430	
$	3,478,277	
$	2,498,636	
$	3,468,094	
$	4,808,066	
$	6,946,371	
Restricted assets	2,531,624	2,397,023	15,379,058	13,586,721	17,910,682	15,983,744	
Capital assets, net of depreciation	39,022,970	39,288,713	40,481,456	40,951,670	79,504,426	80,240,383	
Total assets	43,864,024	45,164,013	58,359,150	58,006,485	102,223,174	103,170,498	
Deferred outflows of resources	80,036	120,054	245,612	274,879	325,648	394,933	
Current liabilities	559,070	528,334	908,967	1,051,016	1,468,037	1,579,350	
Long-term liabilities	7,642,051	9,783,421	26,048,790	27,706,330	33,690,841	37,489,751	
Total liabilities	8,201,121	10,311,755	26,957,757	28,757,346	35,158,878	39,069,101	
Net position
Net investment in capital assets	
31,699,904	
31,142,337	
14,722,068	
13,556,549	
46,421,972	
44,698,886	
Restricted	796,086	696,272	14,764,194	12,921,927	15,560,280	13,618,199	
Unrestricted	3,246,949	3,133,703	2,160,743	3,045,542	5,407,692	6,179,245	
Total net position	$  35,742,939	$  34,972,312	$  31,647,005	$  29,524,018	$  67,389,944	$  64,496,330	
The District’s net position reflects its investment in capital assets (e.g. land, land improvements, and infrastructure); less any related debt used to acquire those assets that is still outstanding. These assets are used to provide services to residents; consequently, these assets are not available for future spending. Although the District’s investment in capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.

The restricted portion represents funds set aside for bond covenants related to debt service, capital projects and other, renewal and replacement and surplus and rate stabilization.

The results of this year’s operations for the District as a whole are reported in the statement of activities. The net position of the District’s governmental activities increased $770,627 and the net position of the business- type activities increased $2,122,987 in comparison with the prior year.
The District’s net position increased during the most recent fiscal year. The majority of the increase represents the extent to which ongoing program revenues exceeded the cost of operations and depreciation expense.

Key elements of the change in the District’s net position are reflected in the following table:

CHANGES IN NET POSITION
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,
Governmental activities	Business-type activities

Total

2023	2022	2023	2022	2023	2022	
Revenues:
Program revenues:
Charges for services	$	5,676,089	

$	5,332,276	

$  10,549,480	

$	9,843,275	

$  16,225,569	

$  15,175,551	
General revenues: Investment earnings	
112,581	
185	
438,082	
594	
550,663	
779	
Other	154,787	184,982	169,929	55,413	324,716	240,395	
Gain/(loss) on disposal of capital assets	(78,723)		30,742	(24,317)	(47,981)	(24,317)	
Total revenues	5,864,734	5,517,443	11,188,233	9,874,965	17,052,967	15,392,408	
Expenses:							
Governmental activities: General government	
666,507	
711,417	
-	-	
666,507	
711,417	
Physical environment	4,141,582	3,888,394	-	-	4,141,582	3,888,394	
Bond issue costs	-	146,775	-	-	-	146,775	
Interest	286,018	328,887	-	-	286,018	328,887	
Business - type activities: Water and sewer utilities	
-	
-	
8,213,899	
7,348,350	
8,213,899	
7,348,350	
Interest	-	-	851,347	905,866	851,347	905,866	
Total expenses	5,094,107	5,075,473	9,065,246	8,254,216	14,159,353	13,329,689	
Change in net position	770,627	441,970	2,122,987	1,620,749	2,893,614	2,062,719	
Net position - beginning	34,972,312	34,530,342	29,524,018	27,903,269	64,496,330	62,433,611	
Net position - ending	$	35,742,939	$  34,972,312	$  31,647,005	$	29,524,018	$  67,389,944	$  64,496,330	
Governmental activities							

As noted above, and in the statement of activities, the cost of all governmental activities during the fiscal year ended September 30, 2023 was $5,094,582. As in the prior year, the majority of the costs of the Districts governmental activities were paid by program revenues. Program revenues consisted primarily of assessments and stormwater fees for the current and prior year.

Business-type activities

Business-type activities reflect the operations of the water and sewer facilities within the District. The cost of operations is covered primarily by charges to customers. Expenses increased primarily due to an increase in water and sewer operating and contracting costs.
GENERAL FUND BUDGETING HIGHLIGHTS

An operating budget was adopted and maintained by the governing board for the District pursuant to the requirements of Florida Statutes. The budget is adopted using the same basis of accounting that is used in preparation of the fund financial statements. The legal level of budgetary control, the level at which expenditures may not exceed budget, is in the aggregate. Any budget amendments that increase the aggregate budgeted appropriations must be approved by the Board of Supervisors. The general fund budget for the fiscal year ended September 30, 2023 was amended to increase revenues by $353,076 and decrease appropriations by ($849,502). Actual general fund expenditures did not exceed appropriations during the current fiscal year.

Capital Assets
At September 30, 2023, the District had $75,992,629 invested in capital assets for its governmental activities. In the government-wide financial statements depreciation of $36,969,659 has been taken, which resulted in a net book value of $39,022,970. The District’s business-type activities reported net capital assets of
$40,481,456. More detailed information about the District’s capital assets is presented in the notes of the financial statements.
Capital Debt

At September 30, 2023, the District had $7,575,000 in Bonds outstanding for its governmental activities. For business-type activities, the District had Bonds outstanding of $26,005,000. More detailed information about the District’s capital debt is presented in the notes of the financial statements.
ECONOMIC FACTORS AND NEXT YEARS BUDGETS AND OTHER EVENTS

The District anticipates positive account activity trends and the recent reissuance of Bonds have placed the District in a better financial position. The District staff through efficient budgeting and innovative cost saving measures have enabled the District to keep rates the same for the past twelve fiscal years. The budget for fiscal year 2024 continues with the five-year forecasting of the District’s financial needs. The District anticipates that the general operations will remain fairly constant, but that cost may increase due to the current high inflation environment. For the utility operations, the number of ERC’s is expected to increase in the fiscal year 2024. The District is anticipating a utility rate increase in 2024, along with an increase in the Maintenance Non-Ad Valorem Assessment. The increase in revenues will help to offset expenses expected to rise with the current inflationary environment. For the utility operations, it is anticipated that any future growth would come primarily from commercial development with some multifamily growth. The District is continuing to work with the engineer to consider future anticipated capacity requirements for available commercial property and to serve the Reserve CDD. In connection with the District’s future infrastructure maintenance and replacement plan, the District Board has included in the budget an estimate of those anticipated future costs and has assigned a portion of current and future available resources for that purpose. At this time there is an additional utility debt funding of up to $36,000,000 anticipated in the next few years.
CONTACTING THE DISTRICT’S FINANCIAL MANAGEMENT

This financial report is designed to provide our citizens, land owners, customers, investors and creditors with a general overview of the District’s finances and to demonstrate the District’s accountability for the financial resources it manages and the stewardship of the facilities it maintains. If you have questions about this report or need additional financial information, contact the St. Lucie West Services District’s management services at Special District Services, Inc., 2501A Burns Road, Palm Beach Gardens, Florida 33410.

ST. LUCIE WEST SERVICES DISTRICT ST. LUCIE COUNTY, FLORIDA STATEMENT OF NET POSITION SEPTEMBER 30, 2023

	Governmental
Activities	Business-type
Activities	
Total	
ASSETS				
Cash and cash equivalents	$	1,013,713	$	2,507,331	$	3,521,044	
Investments	6,958	-	6,958	
Restricted assets:				
Cash and cash equivalents	218,351	188,650	407,001	
Investments	2,313,273	15,190,408	17,503,681	
Accounts receivable, net	-	1,250,690	1,250,690	
Internal balances	1,288,759	(1,288,759)	-	
Prepaid items	-	24,639	24,639	
Other current assets	-	4,735	4,735	
Capital assets:				
Nondepreciable	4,594,571	6,089,636	10,684,207	
Depreciable, net	34,428,399	34,391,820	68,820,219	
Total assets	43,864,024	58,359,150	102,223,174	

DEFERRED OUTFLOWS OF RESOURCES				
Deferred charge on refunding (debit)	80,036	245,612	325,648	
Total deferred outflows of resources	80,036	245,612	325,648	

LIABILITIES				
Accounts payable and accrued expenses	403,592	294,103	697,695	
Accrued interest payable	59,199	426,214	485,413	
Customer deposits	96,279	188,650	284,929	
Noncurrent liabilities:				
Due within one year	2,205,000	1,715,000	3,920,000	
Due in more than one year	5,437,051	24,333,790	29,770,841	
Total liabilities	8,201,121	26,957,757	35,158,878	

NET POSITION				
Net investment in capital assets	31,699,904	14,722,068	46,421,972	
Restricted for:				
Debt service	796,086	4,658,703	5,454,789	
Capital projects and other	-	1,935,800	1,935,800	
Renewal and replacement	-	5,124,575	5,124,575	
Surplus and rate stabilization	-	3,045,116	3,045,116	
Unrestricted	3,246,949	2,160,743	5,407,692	
Total net position	$  35,742,939	$ 31,647,005	$  67,389,944	

See notes to the financial statements

ST. LUCIE WEST SERVICES DISTRICT ST. LUCIE COUNTY, FLORIDA STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023

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

Functions/Programs	Expenses Primary government:
Governmental activities:

Charges for Services

Governmental Activities

Business-type
Activities	Total

General government
Maintenance and operations	$	666,507	$
4,141,582	666,507
2,509,706	$	-
(1,631,876)	$	-
-	$	-
(1,631,876)	
Interest on long-term debt	286,018	2,499,876	2,213,858	-	2,213,858	
Total governmental activities	5,094,107	5,676,089	581,982	-	581,982	

Business-type activities: Water and sewer utilities	

8,213,899	

9,668,866	

-	

1,454,967	

1,454,967	
Interest on long-term debt	851,347	880,614	-	29,267	29,267	
Total business-type activities	9,065,246	10,549,480	-	1,484,234	1,484,234	

Total	
14,159,353	
16,225,569	
581,982	
1,484,234	
2,066,216	
	
General revenues:					
Investment earnings	112,581	438,082	550,663	
Miscellaneous	154,787	169,929	324,716	
Gain/loss on disposal of capital assets	(78,723)	30,742	(47,981)	
Total general revenues	188,645	638,753	827,398	
Change in net position	770,627	2,122,987	2,893,614	
Net position - beginning	34,972,312	29,524,018	64,496,330	
Net position - ending	$	35,742,939	$	31,647,005	$	67,389,944	

See notes to the financial statements

9

BALANCE SHEET GOVERNMENTAL FUNDS SEPTEMBER 30, 2023

	Major Funds	

Water Management

Water Management

Total Governmental

	General	Debt Service	Capital Projects	Funds	
ASSETS
Cash and cash equivalents	
$  1,013,713	
$	218,351	
$	-	
$  1,232,064	
Investments	6,958	754,039	1,559,234	2,320,231	
Due from other funds	2,793,200	-	-	2,793,200	
Total assets	 $ 3,813,871	$	972,390	$	1,559,234	$  6,345,495 	

LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable and accrued expenses	

$	403,592	

$	-	

$	-	

$	403,592	
Due to other funds	-	117,105	1,387,336	1,504,441	
Customer deposits	96,279	-	-	96,279	
Total liabilities	499,871	117,105	1,387,336	2,004,312	

Fund balances: Restricted for:
Debt service	

-	

855,285	

-	

855,285	
Capital projects	-	-	171,898	171,898	
Assigned:
Renewal and replacement	
365,591	
-	
-	
365,591	
Subsequent years expenditures	309,962	-		309,962	
Unassigned	2,638,447	-	-	2,638,447	
Total fund balances	3,314,000	855,285	171,898	4,341,183	

Total liabilities and fund balances	
$  3,813,871	
$	972,390	
$	1,559,234	
$  6,345,495	

See notes to the financial statements

RECONCILIATION OF BALANCE SHEET - GOVERNMENTAL FUNDS TO STATEMENT OF NET POSITION
SEPTEMBER 30, 2023

Fund balance - governmental funds	$	4,341,183

Amounts reported for governmental activities in the statement of net position are different because:

Capital assets used in governmental activities are not financial resources and, therefore, are not reported as assets in the governmental funds. The statement of net position includes those capital assets, net of any accumulated depreciation, in the net position of the government as a whole.
Cost of capital assets	75,992,629
Accumulated depreciation	 (36,969,659) 	39,022,970

Deferred charges on refunding of long-term debt are shown as deferred outflows/inflows of resources in the government-wide financial statements; however, this amount is expensed in the governmental fund financial statements.	

80,036	
Liabilities not due and payable from current available resources		
are not reported as liabilities in the governmental fund		
statements.	All liabilities, both current and long-term, are		
reported in the government-wide financial statements. Accrued interest payable	
(59,199)	
Bonds payable	(7,575,000)	
Compensated absences		(67,051)	(7,701,250) 	
Net position of governmental activities	 $	35,742,939 	

See notes to the financial statements

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023

REVENUES

General

Major Funds Water Management Debt Service

Water Management Capital Projects

Total Governmental Funds

Special assessments	$	1,270,349	$	2,107,213	$	-	$ 3,377,562	
Stormwater fees	1,905,864	392,663	-	2,298,527	
Investment earnings	16,598	48,533	47,450	112,581	
Miscellaneous	154,787	-	-	154,787	
Total revenues	3,347,598	2,548,409	47,450	5,943,457	

EXPENDITURES
Current:
General government	429,341	52,595		481,936	
Maintenance and operations Debt service:
Interest expense	2,659,683

-	-

265,826	-

-	2,659,683

265,826	
Principal expense	-	2,150,000	-	2,150,000	
Capital outlay	136,698	-	1,334,122	1,470,820	
Total expenditures	3,225,722	2,468,421	1,334,122	7,028,265	

Excess (deficiency) of revenues over (under) expenditures	

121,876	

79,988	

(1,286,672)	

(1,084,808)	
Fund balances - beginning	3,192,124	775,297	1,458,570	5,425,991	

Fund balances - ending	
$	3,314,000	
$	855,285	
$	171,898	
$ 4,341,183	

See notes to the financial statements

RECONCILIATION OF STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023

Net change in fund balances - total governmental funds	$  (1,084,808)	
Amounts reported for governmental activities in the statement of activities are different because:		
Governmental funds report capital outlays as expenditures, however, the cost of capital assets is eliminated in the statement of activities and capitalized in the statement of net position.	

1,470,820	
Depreciation of capital assets is not recognized in the governmental fund statements but is reported as an expense in the statement of activities.	
(1,657,840)	
Amortization of deferred outflows/inflows of resources is not recognized in the governmental fund financial statements, but is reported as an expense in the statement of activities.	

(40,018)	
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.	

2,150,000	
Some expenses reported in the statement of activities do not require the		
use of current financial resources, and, therefore, are not reported as expenditures in governmental funds.
Loss on disposal of capital assets	(78,723)
Change in compensated absences	(8,630)	
Change in accrued interest		19,826 	
Change in net position of governmental activities	 $	770,627 	

See notes to the financial statements

STATEMENT OF NET POSITION - PROPRIETARY FUND SEPTEMBER 30, 2023
	Water and
  Sewer Utility		
ASSETS		
Current assets:		
Unrestricted:		
Cash and cash equivalents	$	2,507,331	
Accounts receivable, net of allowance for uncollectibles	1,250,690	
Prepaid expenses	24,639	
Other	4,735	
Restricted:		
Cash and cash equivalents	188,650	
Investments		15,190,408 	
Total current assets		19,166,453 	
Noncurrent assets:
Capital assets:
Land	1,200,000	
Building	1,719,817	
Construction in progress	4,889,636	
Infrastructure	63,875,476	
Equipment and furniture	2,830,354	
Less accumulated depreciation		(34,033,827) 	
Total capital assets, net of accumulated depreciation		40,481,456 	
Total noncurrent assets		40,481,456 	
Total assets		59,647,909 	
DEFERRED OUTFLOWS OF RESOURCES
Deferred charges on refunding	
	245,612 	
Total deferred outflows of resources		245,612 	
LIABILITIES
Current liabilities:
Accounts payable and accrued expenses	294,103	
Due to other funds	1,288,759	
Liabilities payable from restricted assets:		
Customer deposits	188,650	
Current portion of long-term debt	1,715,000	
Interest payable		426,214 	
Total current liabilities		3,912,726 	
Noncurrent liabilities:		
Long-term debt		24,333,790 	
Total noncurrent liabilities		24,333,790 	
Total liabilities		28,246,516 	
NET POSITION		
Net investment in capital assets	14,722,068	
Restricted for:		
Debt service	4,658,703	
Capital projects and other	1,935,800	
Renewal and replacement	5,124,575	
Surplus and rate stabilization	3,045,116	
Unrestricted		2,160,743 	
Total net position		31,647,005 	
Total net position and liabilities	 $  59,893,521 	
See notes to the financial statements

STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION - PROPRIETARY FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023

Water and Sewer
	Utility	

OPERATING REVENUES
Charges for sales and services:
Charges for water and sewer services	$	9,555,448	
Late fees	71,344	
Bulk water sales	811,540	
Other		111,148 	
Total operating revenues		10,549,480 	

OPERATING EXPENSES
Personnel services	3,057,395	
Contractual services	705,808	
Water and sewer operations	2,324,020	
Repairs and maintenance	235,515	
Depreciation	1,861,894	
Amortization		29,267 	
Total operating expense		8,213,899 	
Operating income (loss)		2,335,581 	

NON OPERATING REVENUES (EXPENSES)
Gain (loss) on disposal of capital asets	30,742	
Impact fees	169,929	
Interest revenue	438,082	
Interest expense		(851,347) 	
Total non operating revenue (expenses)		(212,594) 	

Change in net position	2,122,987

Total net position - beginning		29,524,018 
Total net position - ending	 $	31,647,005 

See notes to the financial statements

STATEMENT OF CASH FLOWS - PROPRIETARY FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023

CASH FLOWS FROM OPERATING ACTIVITIES:
Receipts from customers and users

Water and
  Sewer Utility 

$ 10,424,322

Payments to suppliers of goods and services		(6,203,279)  Net cash provided (used) by operating activities			4,221,043 

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Due to/from other funds		(1,049,741) 
Net cash provided (used) by noncapital financing activities		(1,049,741) 

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
Impact fees	169,929
Purchases of capital assets	(1,360,938)
Principal paid on debt	(1,665,000)
Interest paid on debt		(878,606) 
Net cash provided (used) by capital and related
financing activities		(3,734,615) 

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of investments	(1,815,008)	
Interest earnings		438,082 	
Net cash provided (used) by investing activities		(1,376,926) 	
Net increase (decrease) in cash and cash equivalents	(1,940,239)	
Cash and cash equivalents - October 1		4,636,220 	
Cash and cash equivalents - September 30	 $	2,695,981 	
Reported as:		
Cash	$	2,507,331	
Restricted cash		188,650 	
	 $	2,695,981 	

(Continued)

See notes to the financial statements

(Continued)		
	Water and	
	  Sewer Utility 	
Reconciliation of operating income (loss) to net cash		
provided (used) by operating activities		
Operating income (loss)	$	2,335,581	
Adjustments to reconcile operating income (loss)		
to net cash provided (used) by Operating Activities:		
Depreciation and amortization	1,891,161	
(Increase)/Decrease in:		
Accounts receivables	(102,487)	
Prepaids and deposits	204,118	
Increase/(Decrease) in:		
Accounts payable and accrued expenses	(92,119)	
Customer deposits	(22,671)	
Compensated absences		7,460 	
Total adjustments		1,885,462 	
Net cash provided (used) by operating activities	 $	4,221,043 	

See notes to the financial statements

NOTE 1 – NATURE OF ORGANIZATION AND REPORTING ENTITY

St. Lucie West Services District (the “District”) was created on November 21, 1989, pursuant to Chapter 190.005, Florida Statutes by which Florida Land and Water Adjudicatory Commission granted the petition of the original development corporation and adopted Rules 42-I.001, I.002, and I.003, establishing the St. Lucie West Services District. The District was established for the purpose of, among other things, construction of and/or acquiring water management and control, water supply, sewer, wastewater management, bridges or culverts, District roads, parks and recreational facilities, security facilities, control and elimination of mosquitoes and other arthropods and landscaping related to recreational amenities, roads, and surface water management, and related improvements located within and/or without the boundaries of St. Lucie West Services District.

The District is governed by the Board of Supervisors ("Board"), which is composed of five members. The Supervisors are elected by the landowners and qualified electors residing within the District, and are elected on a rotating basis for terms of four years. The District was created under Chapter 190 of the Florida Statutes and operates within the criteria established by Chapter 190.The Board of Supervisors of the District exercise all powers granted to the District pursuant to Florida Statutes.

The Board has the final 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 employment of the general manger.
Financing improvements.

The financial statements were prepared in accordance with Governmental Accounting Standards Board (“GASB”) Statements. Under the provisions of those standards, the financial reporting entity consists of the primary government, organizations for which the District is considered to be financially accountable and other organizations for which the nature and significance of their relationship with the District are such that, if excluded, the financial statements of the District would be considered incomplete or misleading. There are no entities considered to be component units of the District; therefore, the financial statements include only the operations of the District.
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Government-Wide and Fund Financial Statements
The basic financial statements include both government-wide and fund financial statements.

The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the non-fiduciary activities of the District. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by assessments and general revenues, are reported separately from business- type activities, which rely to a significant extent on fees and charges for support.

Government-Wide and Fund Financial Statements (Continued)
The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers who purchase, use or directly benefit from goods, services or privileges provided by a given function or segment (Operating- type special assessments for maintenance and debt service are treated as charges for services.); and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Other items not included among program revenues are reported instead as general revenues.

Measurement Focus, Basis of Accounting and Financial Statement Presentation
The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Assessments are recognized as revenues in the year for which they are levied. Grants and similar items are to be recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Unbilled service revenue is accrued in the enterprise funds.
Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures are recorded only when payment is due.

Assessments
Assessments are non-ad valorem assessments on certain land and all platted lots within the District. Assessments are levied each November 1 on property of record as of the previous January. The fiscal year for which annual assessments are levied begins on October 1 with discounts available for payments through February 28 and become delinquent on April 1. For debt service assessments, amounts collected as advance payments are used to prepay a portion of the Bonds outstanding. Otherwise, assessments are collected annually to provide funds for the debt service on the portion of the Bonds which are not paid with prepaid assessments.
Assessments, stormwater fees, licenses and permits, grant revenues and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized in revenues for the current period.

The District reports the following major governmental funds:
General Fund
The general fund is the general operating fund of the District. It is used to account for all financial resources except those required to be accounted for in another fund.

Water Management Debt Service Fund
The debt service fund is used to account for the accumulation of resources for the annual payment of principal and interest on long-term debt.

Water Management Capital Projects Fund
This fund accounts for the financial resources to be used for the acquisition or construction of major infrastructure within the District.
The District reports the following major proprietary fund:

Water and Sewer Fund
The water and sewer fund accounts for the water and sewer operations of the District that are financed and supported primarily by user charges.
Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the District’s enterprise fund are charges to customers for sales and services. Operating expenses of the enterprise fund include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses.

Measurement Focus, Basis of Accounting and Financial Statement Presentation (Continued)
As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are internal receivable and payable balances between governmental and business-type activities.

When both restricted and unrestricted resources are available for use, it is the government’s policy to use restricted resources first for qualifying expenditures, then unrestricted resources as they are needed.
Assets, Liabilities and Net Position or Equity

Restricted Assets
Restricted assets in the enterprise funds consists primarily of amounts restricted for debt service, capital projects, surplus and rate stabilization, renewal and replacement which have been restricted by the bond covenants or other contractual restrictions. Restricted assets in the governmental funds consist of funds set aside to comply with bond covenants or other contractual restrictions.
Deposits and Investments
The District’s cash and cash equivalents are considered to be cash on hand and demand deposits (interest and non-interest bearing).
The District has elected to proceed under the Alternative Investment Guidelines as set forth in Section
218.415 (17) Florida Statutes. The District may invest any surplus public funds in the following:

The Local Government Surplus Trust Funds, or any intergovernmental investment pool authorized pursuant to the Florida Interlocal Cooperation Act;
Securities and Exchange Commission registered money market funds with the highest credit quality rating from a nationally recognized rating agency;
Interest bearing time deposits or savings accounts in qualified public depositories;
Direct obligations of the U.S. Treasury.

Securities listed in paragraph c and d shall be invested to provide sufficient liquidity to pay obligations as they come due.
The District records all interest revenue related to investment activities in the respective funds. Investments are measured at amortized cost or reported at fair value as required by generally accepted accounting principles.
Inventories and Prepaid Items
Inventories of governmental funds are recorded as expenditures when consumed rather than when purchased.

Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements.
Interfund Receivables and Payables
Activities between funds that are representative of lending/borrowing arrangements outstanding at the end of fiscal year are referred to as either “interfund receivables/payables” or “advances to/from other funds”. All other outstanding balances between funds are reported as “due to/from other funds.” Any residual balances outstanding between governmental activities and business-type activities for internal borrowing are reported in the government-wide statements as “internal balances”.

Receivables
Accounts receivable and assessments receivable are shown net of an allowance for uncollectible amounts. These receivables will be recognized as revenue as they are collected. The Water and Sewer Utility Fund receivables are due from commercial and residential customers within the District. The District’s policy for collections is limited to collecting security deposits, the right to discontinue service and to place liens on property. For the Water and Sewer Fund, accounts receivable outstanding in excess of 120 days comprise the allowance.

Capital Assets
Capital assets, which include property, water and sewer improvements, machinery and equipment and infrastructure (roads, sidewalks, etc.) are reported in the applicable governmental or business-type activities. Capital assets are defined by the government as assets with an initial, individual cost of more than $5,000 and an estimated useful life in excess of two years. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at acquisition value at the date of donation.

The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed.
Property, plant and equipment of the District are depreciated using the straight-line method over the following estimated useful lives:
Assets	Years	
Infrastructure and buildings	10 – 50	
Equipment	5 – 30	

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

Refundings of Debt
For current refundings and advance refundings resulting in the defeasance of debt, the difference between the reacquisition price and the net carrying amount of the old debt is reported as a deferred outflow of resources/deferred inflow of resources and recognized ratably as a component of interest expense over the remaining life of the old debt or the life of the new debt, whichever is shorter. In connection with the refunding, $40,018 and $28,807 was recognized as a component of interest expense in the current fiscal year for the governmental and business-type activities, respectively.

Unearned Revenue
Governmental funds report unearned revenue in connection with resources that have been received, but not yet earned.
Compensated Absences
It is the District’s policy to permit employees to accumulate earned but unused sick leave and vacation leave benefits. All sick and vacation leave is accrued when earned in the government-wide and proprietary fund financial statements. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements. Liability for accrued compensated absences of the governmental activities is not reported in the balance sheet of the governmental funds and, accordingly, represents a reconciling item between the fund and government- wide presentations. Payments are generally paid out of the general fund.

Long-Term Obligations
In the government-wide financial statements long-term debt and other long-term obligations are reported as liabilities in the statement of net position. Bond premiums and discounts are deferred and amortized over the life of the Bonds using the straight-line method. Bonds payable are reported net of applicable premiums or discounts. Bond issuance costs are expensed when incurred.

In the fund financial statements, governmental fund types recognize Bond premiums and discounts, as well as issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.

Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then.

In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time.
Fund Equity/Net Position
In the fund financial statements, governmental funds report non spendable and restricted fund balance for amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose. Assignments of fund balance represent tentative management plans that are subject to change.

The District can establish limitations on the use of fund balance as follows:
Committed fund balance – Amounts that can be used only for the specific purposes determined by a formal action (resolution) of the Board of Supervisors. Commitments may be changed or lifted only by the Board of Supervisors taking the same formal action (resolution) that imposed the constraint originally. Resources accumulated pursuant to stabilization arrangements sometimes are reported in this category.

Assigned fund balance – Includes spendable fund balance amounts established by the Board of Supervisors that are intended to be used for specific purposes that are neither considered restricted nor committed. The Board may also assign fund balance as it does when appropriating fund balance to cover differences in estimated revenue and appropriations in the subsequent year’s appropriated budget. Assignments are generally temporary and normally the same formal action need not be taken to remove the assignment.

The District first uses committed fund balance, followed by assigned fund balance and then unassigned fund balance when expenditures are incurred for purposes for which amounts in any of the unrestricted fund balance classifications could be used.

Fund Equity/Net Position (Continued)
Net position is the difference between assets and deferred outflows of resources less liabilities and deferred inflows of resources. Net position in the government-wide financial statements are categorized as net investment in capital assets, restricted or unrestricted. Net investment in capital assets represents net position related to infrastructure and property, plant and equipment. Restricted net position represents the assets restricted by the District’s Bond covenants or other contractual restrictions. Unrestricted net position consists of the net position not meeting the definition of either of the other two components.

Other Disclosures
Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenditures during the reporting period. Actual results could differ from those estimates.

NOTE 3 – BUDGETARY INFORMATION

The District is required to establish a budgetary system and an approved Annual Budget. Annual Budgets are adopted on a basis consistent with generally accepted accounting principles for the general fund. All annual appropriations lapse at fiscal year-end.
The District follows these procedures in establishing the budgetary data reflected in the financial statements.

Each year the General Manager submits to the District Board a proposed operating budget for the fiscal year commencing the following October 1.
Public hearings are conducted to obtain public comments.
Prior to October 1, the budget is legally adopted by the District Board.
All budget changes must be approved by the District Board.
The budgets are adopted on a basis consistent with generally accepted accounting principles.
Unused appropriation for annually budgeted funds lapse at the end of the year.
The District also prepares annual operating budgets for the water and sewer utility fund.

NOTE 4 – DEPOSITS AND INVESTMENTS
Deposits
The District’s cash balances were entirely covered by federal depository insurance or by a collateral pool pledged to the State Treasurer. Florida Statutes Chapter 280, "Florida Security for Public Deposits Act", requires all qualified depositories to deposit with the Treasurer or another banking institution eligible collateral equal to various percentages of the average daily balance for each month of all public deposits in excess of any applicable deposit insurance held. The percentage of eligible collateral (generally, U.S. Governmental and agency securities, state or local government debt, or corporate bonds) to public deposits is dependent upon the depository's financial history and its compliance with Chapter 280. In the event of a failure of a qualified public depository, the remaining public depositories would be responsible for covering any resulting losses.

The District’s investments were held as follows at September 30, 2023:

Investment	Amortized cost	Credit Risk	Maturities	
US Bank Commercial Paper Manual Sweep	$	754,039	A-1	N/A	
US Bank Mmkt 5 - Ct		16,756,600 	Not Available	Not Available	
Total Investments	 $	17,510,639 			

Credit risk – For investments, credit risk is generally the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Investment ratings by investment type are included in the preceding summary of investments.

Concentration risk – The District places no limit on the amount the District may invest in any one issuer.

Interest rate risk – The District does not have a formal policy that limits investment maturities as a means of managing exposure to fair value losses arising from increasing interest rates.

However, the Bond Indenture limits the type of investments held using unspent proceeds.
Fair Value Measurement – When applicable, the District measures and records its investments using fair value measurement guidelines established in accordance with GASB Statements. The framework for measuring fair value provides a fair value hierarchy that prioritizes the inputs to valuation techniques.

These guidelines recognize a three-tiered fair value hierarchy, in order of highest priority, as follows:

Level 1:	Investments whose values are based on unadjusted quoted prices for identical investments in active markets that the District has the ability to access;
Level 2: Investments whose inputs - other than quoted market prices - are observable either directly or indirectly; and,
Level 3: Investments whose inputs are unobservable.
The fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the entire fair value measurement. Valuation techniques used should maximize the use of observable inputs and minimize the use of unobservable inputs.
Money market investments that have a maturity at the time of purchase of one year or less and are held by governments other than external investment pools should be measured at amortized cost. Accordingly, the District’s investments have been reported at amortized cost above.

NOTE 5 – RESTRICTED CASH
Restricted cash in the water and sewer fund at September 30, 2023 were held as follows:

Restricted investments:		
Debt service reserve	$	2,524,602	
Debt service	2,560,315	
Renewal and replacement	5,124,575	
Rate stabalization	603,839	
Water and sewer connection	1,935,800	
Surplus		2,441,277 	
	 $	15,190,408 	

Interfund receivables and payables at September 30, 2023 were as follows:

Governmental Funds	  Receivable	Payable		
General	$	2,793,200	$	-	
Debt service	-	117,105	
Capital projects	-	1,387,336	
Proprietary Funds		
Water and sewer		-	1,288,759 	
Total	 $	2,793,200	$	2,793,200 	

The outstanding balances between funds result primarily from the time lag between the dates that transactions are recorded in the accounting system and payments between funds are made.
NOTE 7 – RECEIVABLES

Accounts receivable in the water and sewer fund are reported net of uncollectible amounts. Total accounts receivable and uncollectible amounts at September 30, 2023 are as follows:

Water and Sewer
	Utility Fund	
Gross billed accounts receivable	$	535,457	
Gross unbilled accounts receivable	770,233	
Uncollectibles		(55,000)	
Net receivable	 $	1,250,690 	

NOTE 8 – CAPITAL ASSETS

Capital asset activity for governmental activities for the fiscal year ended September 30, 2023 was as follows:

Beginning Balance

Additions	Reductions

Ending Balance

Governmental activities
Capital assets, not being depreciated		
Land	$	4,594,569	$	-	$	-	$	4,594,569	
Construction in progress	117,884	1,334,122	(1,452,004)	2	
Total capital assets, not being depreciated	4,712,453	1,334,122	(1,452,004)	4,594,571	

Capital assets, being depreciated Buildings	

869,963	

64,668	

-	

934,631	
Infrastructure	66,880,193	1,387,336	-	68,267,529	
Equipment and furniture	2,170,604	136,698	(111,404)	2,195,898	
Total capital assets, being depreciated	69,920,760	1,588,702	(111,404)	71,398,058	

Less accumulated depreciation for: Buildings	

65,963	

31,154	

-	

97,117	
Infrastructure	33,913,355	1,481,899	-	35,395,254	
Equipment and furniture	1,365,182	144,787	(32,681)	1,477,288	
Total accumulated depreciation	35,344,500	1,657,840	(32,681)	36,969,659	

Total capital assets, being depreciated, net	
34,576,260	
(69,138)	
(78,723)	
34,428,399	

Governmental activities capital assets, net	
$  39,288,713	
$  1,264,984	
$  (1,530,727)	
$	39,022,970	

Depreciation expense was charged to function/programs as follows:

General government	$	175,941	
Maintenance and operations		1,481,899 	
	 $	1,657,840 	

Capital asset activity for business-type activities for the fiscal year ended September 30, 2023 was as follows:

Beginning Balance

Additions	Reductions

Ending Balance

Business-type Activities
Capital assets, not being depreciated		
Land	$	1,200,000	$	-	$	-	$	1,200,000	
Construction in progress	6,017,250	1,285,438	(2,413,052)	4,889,636	
Total capital assets, not being depreciated	7,217,250	1,285,438	(2,413,052)	6,089,636	

Capital assets, being depreciated Buildings	

1,613,980	

105,837	

-	

1,719,817	
Infrastructure/Improvements	61,564,266	2,311,210	-	63,875,476	
Equipment and furniture	2,758,849	116,053	(44,548)	2,830,354	
Total capital assets, being depreciated	65,937,095	2,533,100	(44,548)	68,425,647	

Less accumulated depreciation for: Buildings	

88,548	

56,529	

-	

145,077	
Infrastructure/Improvements	30,220,191	1,695,868	-	31,916,059	
Equipment and furniture	1,893,936	154,045	(75,290)	1,972,691	
Total accumulated depreciation	32,202,675	1,906,442	(75,290)	34,033,827	

Total capital assets, being depreciated, net	
33,734,420	
626,658	
30,742	
34,391,820	

Business-type activities capital assets, net	
$  40,951,670	
$	1,912,096	
$	(2,382,310)	
$  40,481,456	

NOTE 9 – LONG-TERM LIABILITIES					
Utility Revenue Refunding, Series 2011
On October 25, 2011, the District issued $24,000,000 of Utility Revenue Refunding Bonds, Series 2011 due on October 1, 2031 with a fixed interest rate of 2.85%. Interest is to be paid semiannually on each April 1 and October 1. Principal on the Bonds is to be paid serially commencing October 1, 2012 through October 1, 2031. The source of repayment or security for the Series 2011 Bonds is a pledge of certain utility revenues collected by the District.

The Series 2011 Bonds are subject to redemption as defined in the Bond Indenture. The Bond Indenture also established a debt service reserve requirement as well as other restrictions. The District was in compliance with the requirements at September 30, 2023. See bond rate adjustment below.

Special Assessment Refunding, Series 2013
On April 24, 2013, the District issued $19,025,000 of Water Management Benefit Special Assessment Refunding Bonds, Series 2013 due on May 1, 2025 with a fixed interest rate of 2.44%. Interest is to be paid semiannually on each May 1 and November 1. Principal on the Bonds is to be paid serially commencing May 1, 2014 through May 1, 2025.

The Series 2013 Bonds are subject to redemption at the option of the District prior to their maturity. The Bonds are subject to extraordinary mandatory redemption prior to their selected maturity in the manner determined by the Bond Registrar if certain events occurred as outlined in the Bond Indenture.

The Bond Indenture established a debt service reserve requirement as well as other restrictions. The District agrees to levy special assessments in annual amounts adequate to provide payment of debt service and to meet the reserve requirements. The District was in compliance with the requirements at September 30, 2023.
Utility Revenue Refunding, Series 2013
On April 24, 2013, the District issued $5,470,000 of Utility Revenue Refunding Bonds, Series 2013, due on October 1, 2032 with a fixed interest rate of 2.43%. Interest is to be paid semiannually on each April 1 and October 1. Principal on the Bonds is to be paid serially commencing October 1, 2013 through October 1, 2032. The source of repayment or security for the Series 2013 Bonds is a pledge of certain utility revenues collected by the District.

The Series 2013 Bonds are subject to redemption as defined in the Bond Indenture. The Bond Indenture also established a debt service reserve requirement as well as other restrictions. The District was in compliance with the requirements at September 30, 2023. See bond rate adjustment below.
Utility Revenue Refunding, Series 2014
In August 2014, the District issued $12,025,000 of Utility Revenue Refunding Bonds, Series 2014, due on October 1, 2035 with a fixed interest rate of 3.6%. Interest is to be paid semiannually on each April 1 and October 1. Principal on the Bonds is to be paid serially commencing October 1, 2014 through October 1, 2035. The source of repayment or security for the Series 2014 Bonds is a pledge of certain utility revenues collected by the District.

The Series 2014 Bonds are subject to redemption as defined in the Bond Indenture. The Bond Indenture also established a debt service reserve requirement as well as other restrictions. The District was in compliance with the requirements at September 30, 2023. See bond rate adjustment below.
Stormwater Utility Revenue Bonds, Series 2014
On December 22, 2014, the District issued $4,810,000 of Stormwater Utility Revenue Bonds, Series 2014 due on February 1, 2030 with a fixed interest rate of 3.05%. The Bonds were issued to for the purpose of acquiring land from Martin Memorial. The land was purchased with the intent to put a retainage pond on the land for excess storm water storage. Interest is to be paid semiannually on each February 1 and August 1. Principal on the Bonds is to be paid serially commencing February 1, 2015 through February 1, 2030.

The Series 2014 Bonds are subject to redemption at the option of the District prior to their maturity. The Bond Indenture established a debt service reserve requirement as well as other restrictions. The District and the City of Port St. Lucie have entered into an agreement whereby the City will transfer approximately
$400,000 of Stormwater utility fees to the District to cover the debt service on the Bonds. The District was in compliance with the requirements at September 30, 2023.
Capital Improvement Bonds, Series 2021
In October 2021, the District issued $1,685,000 of Capital Improvement Bonds, Series 2021, due on May 1, 2026 with a fixed interest rate of 1.56%. Interest is to be paid semiannually on each November 1 and May 1. Principal on the Bonds is to be paid serially commencing May 1, 2023 through May 1, 2026.

Capital Improvement Bonds, Series 2021 (Continued)
The Series 2021 Bonds are subject to redemption as defined in the Bond Indenture. The Bond Indenture also established restrictions. The District was in compliance with the requirements at September 30, 2023.
Bond Rate Adjustment
During fiscal year 2018 the federal government reduced the corporate tax rate from 35% to 21%. This triggered a clause in the Series 2011 Utility Bond, the Series 2013 WMB Bond, and the Series 2014 Utility Bond whereas the interest rate became adjusted upwards. This resulted in the following rate increases: the Utility Bond Series 2011 went from 2.85% to 3.46%, the WMB Bond Series 2013 went from 2.44% to 2.97%, and the Utility Bond Series 2014 went from 3.61% to 4.17%. All of these Bonds are held as private placements with SunTrust (STING). Due to the Utility Series 2014 rate change being higher than current market rates, the District negotiated a rate modification that resulted in a reissuance of the Utility Bond Series 2014, now the Utility Bond Series 2014 R-1. The reissuance, dated October 12, 2018, lowered the rate from 4.17% to 3.30%. The other Bonds remained at their adjusted rates.
Long-term debt activity
Changes in long-term liability activity for the fiscal year ended September 30, 2023 were as follows:

	Beginning
Balance	
Additions	Reductions	Ending
Balance	Due Within
One Year	
Governmental activities Bonds payable:
Series 2013	

$	5,290,000	

$	-	$	(1,720,000)	

$	3,570,000	

$	1,765,000	
Series 2014	2,750,000	-	(310,000)	2,440,000	315,000	
Series 2021	1,685,000	-	(120,000)	1,565,000	125,000	
Total bonds payable	9,725,000	-	(2,150,000)	7,575,000	2,205,000	
Compensated absences	58,421	8,630	-	67,051	-	
Total	$	9,783,421	$	8,630	$	(2,150,000)	$	7,642,051	$  2,205,000	

	Beginning
Balance	
Additions	Reductions	Ending
Balance	Due Within
One Year	
Business-type activities Bonds payable:
Series 2011	

$	13,660,000	

$	-	$	(1,200,000)	

$	12,460,000	

$	1,235,000	
Series 2013	3,405,000	-	(275,000)	3,130,000	280,000	
Series 2014	10,605,000	-	(190,000)	10,415,000	200,000	
Total bonds payable	27,670,000	-	(1,665,000)	26,005,000	1,715,000	
Compensated absences	36,330	7,460	43,790	-	
Total	$  27,706,330	$	7,460	$	(1,665,000)	$  26,048,790	$  1,715,000	

At September 30, 2023, the scheduled debt service requirements on the long-term debt were as follows:

Year ending

	Governmental Activities	

	September 30:	Principal	Interest	Total	
2024	$	2,205,000	$	203,554	$	2,408,554	
2025	2,255,000	139,251	2,394,251	
2026	1,645,000	73,646	1,718,646	
2027	350,000	42,620	392,620	
2028	360,000	31,799	391,799	
2029-2030		760,000	26,587	786,587 	
Total	 $	7,575,000	$	517,458	$	8,092,457 	

Long-term debt activity (Continued)

Year ending

	Business-type Activities	

	September 30:	Principal	Interest	Total	
2024	$	1,715,000	$	651,420	$	2,366,420	
2025	1,765,000	766,242	2,531,242	
2026	1,815,000	707,586	2,522,586	
2027	1,865,000	647,283	2,512,283	
2028	1,920,000	585,252	2,505,252	
2029-2033	10,465,000	1,931,807	12,396,807	
2034-2036		6,460,000	303,599	6,763,599 	
Total	 $	26,005,000	$	5,593,189	$	31,598,189 	

NOTE 10 – INTERLOCAL AGREEMENTS
The District entered an interconnect agreement with the Reserve Community Development District (“the Reserve”) for the bulk sale of water from the District to the Reserve in 1993. In the agreement, the Reserve shall pay a connection charge of $1,000 per water ERC, which equals 250 gallons per day, for each unit served through the interconnect. The District later amended the agreement, on November 12, 2003, to provide an additional 500,000 gallons per day, representing 2,000 ERC’s of potable water and 400,000 gallons per day, representing 2,000 ERC’s of sanitary sewer services to be phased in over a period not beyond October 1, 2015. During a prior fiscal year, on May 1, 2013, the District signed an amendment to the prior agreement, which revised the water and sewer service capacity to be purchased by the Reserve and also revised the monthly “take or pay” gallonage charges to be paid to the Utility for the potable water and sanitary sewer services received by the Reserve. Pursuant to the amended agreement, the Reserve purchased an additional 700 sewer ERC’s in May 2013, and shall now pay a connection charge of $900 per sewer ERC. During the current fiscal year the District collected $169,929 of connection fees which are shown as impact fees on the financial statements. The District also collected
$811,540 in wholesale water and sewer fees from the Reserve during the current fiscal year.

The District entered an interlocal agreement with the City of Port St. Lucie (the City) for maintenance of the stormwater management system in 1996. The City levies stormwater fees and then charges the District a 25% fee for administrative charges and maintaining main lines for storm runoff and remits the remaining 75% of stormwater fees collected from the District’s residents to the District for maintenance of the stormwater facilities owned by the District. For the year ended September 30, 2023, the City remitted approximately $1,905,864 in fees to the District.

In 2014 the District entered in another interlocal agreement with the City of Port St. Lucie (the City) for the payment of the debt service on the Series 2014 Bonds used to purchase land for the purpose of stormwater drainage. The City will pay the District approximately $400,000 annually to cover the entire debt service payment for the life of the bond.

The District has established a Simplified Employee Pension Plan (SEP), which is classified as a defined contribution plan. The District contributed 9% of eligible employees’ salaries during the fiscal year ended September 30, 2023. In order to be eligible, an employee must be at least 21 years of age and employed for at least one year.

The District also has a 457 deferred compensation plan for which employees are eligible for upon hiring. This plan allows the employee to make tax deferred contribution direct to an investment account. Contributions are limited based on statutory limitations. There are no District contributions to this plan.
Pension expense was approximately $123,796 in the general fund and $172,910 in the water and sewer fund for the fiscal year ended September 30, 2023. The District, at its sole discretion, has the authority to terminate these pension plans; however, the District does not have the intention to do so.
NOTE 12 – MANAGEMENT COMPANY

The District has contracted with a management company to perform management advisory services, which include financial and accounting services. Certain employees of the management company also serve as officers of the District. Under the agreement, the District compensates the management company for management, accounting, financial reporting, computer and other administrative costs.

NOTE 13 – 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. The District has obtained commercial insurance from independent third parties to mitigate the costs of these risks; coverage may not extend to all situations. There were no settled claims during the past three years.

NOTE 14 - SUBSEQUENT EVENTS

In fiscal year 2024, the District began the process to validate additional Utility Revenue Bonds for the Water & Sewer Fund for the purpose of issuing new bonds to fund a utility plant capacity expansion. Additionally, the District plans to refinance the current Utility Revenue Bonds in conjunction with the new bond issuance.

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – GENERAL FUND FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023

		Budgeted Amounts	 Original	Final

Actual Amounts

Variance with Final Budget - Positive (Negative)

REVENUES		
Assessments	$ 1,286,389	$  1,270,349	$ 1,270,349	$	-	
Stormwater fees	2,000,000	2,298,524	1,905,864	(392,660)	
Miscellaneous and interest revenue	496,987	567,579	171,385	(396,194)	
Total revenues	3,783,376	4,136,452	3,347,598	(788,854)	

EXPENDITURES
Current:
General government	320,602	285,740	429,341	(143,601)	
Maintenance and operations	3,723,341	2,949,800	2,659,683	290,117	
Capital outlay	256,099	215,000	136,698	78,302	
Total expenditures	4,300,042	3,450,540	3,225,722	224,818	

Excess (deficiency) of revenues					
over (under) expenditures	 $	(516,666)	$	685,912 	121,876	 $	(564,036) 	

Fund balance - beginning		3,192,124 

Fund balance - ending	 $ 3,314,000 

See notes to required supplementary information

NOTES TO REQUIRED SUPPLEMENTARY INFORMATION

The District is required to establish a budgetary system and an approved Annual Budget for the general fund. The District’s budgeting process is based on estimates of cash receipts and cash expenditures which are approved by the Board. The budget approximates a basis consistent with accounting principles generally accepted in the United States of America (generally accepted accounting principles).

An operating budget was adopted and maintained by the governing board for the District pursuant to the requirements of Florida Statutes. The budget is adopted using the same basis of accounting that is used in preparation of the fund financial statements. The legal level of budgetary control, the level at which expenditures may not exceed budget, is in the aggregate. Any budget amendments that increase the aggregate budgeted appropriations must be approved by the Board of Supervisors. The general fund budget for the fiscal year ended September 30, 2023 was amended to increase revenues by $353,076 and decrease appropriations by ($849,502). Actual general fund expenditures did not exceed appropriations during the current fiscal year.

OTHER INFORMATION – DATA ELEMENTS REQUIRED BY FL STATUTE 218.39(3)(C)
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 UNAUDITED

Element	
Comments	
Number of district employees compensated at 9/30/2023	62	
Number of independent contractors compensated in September 2023	17	
Employee compensation for FYE 9/30/2023 (paid/accrued)	$5,127,639	
Independent contractor compensation for FYE 9/30/2023	$257,946	
Construction projects to begin on or after October 1; (>$65K)	Ongoing Construction Budgeted for FY 24 of $5,316,916	
Budget variance report	See Variance Report in report for details	
Ad Valorem taxes;	Not applicable	
		
Non ad valorem special assessments;		

Special assessment rate FYE 9/30/2023	

Operation & Maintenance = $126 per ERU Debt = $208.84 per ERU	
Special assessments collected FYE 9/30/2023	$3,377,562	
Outstanding Bonds:		
Series 2013 (WMB), due May 1, 2025	$6,970,000 - See Long Term Liabilities Note in report for details	
Series 2014 (Land Aquisition), due February 1, 2030	$3,050,000 - See Long Term Liabilities Note in report for details	
Series 2011 (Utility Revenue), due October 1, 2031	$14,825,000- See Long Term Liabilities Note in report for details	
Series 2013 (Utility Revenue), due Ocotber 1, 2032	$3,670,000 - See Long Term Liabilities Note in report for details	
Series 2014 (Utility Revenue), due October 1, 2035	$10,795,000 - See Long Term Liabilities Note in report for details	
Series 2021 (Capital Improvement Revenue), due May 1, 2026	$1,685,000 - See Long Term Liabilities Note in report for details	

951 Yamato Road ▪ Suite 280 Boca Raton, Florida 33431
(561) 994-9299 ▪ (800) 299-4728
Fax (561) 994-5823
www.graucpa.com

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 St. Lucie West Services District St. Lucie County, Florida
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities and each major fund of St. Lucie West Services District, St. Lucie County, Florida (“District”) as of and for the fiscal year ended September 30, 2023, and the related notes to the financial statements, which collectively comprise the District’s basic financial statements, and have issued our opinion thereon dated June 26, 2024.
Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the District’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the District’s internal control. Accordingly, we do not express an opinion on the effectiveness of the District’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable 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 were not identified.
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the District’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and 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.

June 26, 2024

INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE WITH THE REQUIREMENTS OF SECTION 218.415, FLORIDA STATUTES, REQUIRED BY RULE 10.556(10) OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA
To the Board of Supervisors St. Lucie West Services District St. Lucie County, Florida

We have examined St. Lucie West Services District, St. Lucie County, Florida (“District”) compliance with the requirements of Section 218.415, Florida Statutes, in accordance with Rule 10.556(10) of the Auditor General of the State of Florida during the fiscal year ended September 30, 2023. Management is responsible for District’s compliance with those requirements. Our responsibility is to express an opinion on 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 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 District’s compliance with specified requirements.

We are required to be independent and to meet our other ethical responsibilities in accordance with relevant ethical requirements relating to the examination engagement.
In our opinion, the District complied, in all material respects, with the aforementioned requirements for the fiscal year ended September 30, 2023.
This report 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, management, and the Board of Supervisors of St. Lucie West Services District, St. Lucie County, Florida and is not intended to be and should not be used by anyone other than these specified parties.

June 26, 2024

MANAGEMENT LETTER PURSUANT TO THE RULES OF THE AUDITOR GENERAL FOR THE STATE OF FLORIDA
To the Board of Supervisors St. Lucie West Services District St. Lucie County, Florida
Report on the Financial Statements

We have audited the accompanying basic financial statements of St. Lucie West Services District, St. Lucie County, Florida (the "District") as of and for the fiscal year ended September 30, 2023, and have issued our report thereon dated June 26, 2024.
Auditor’s Responsibility

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

We have issued our Independent Auditor’s Report on Internal Control over Financial Reporting and Compliance and Other Matters based on an audit of the financial statements performed in accordance with Government Auditing Standards; and Independent Accountant’s Report on an examination conducted in accordance with AICPA Professional Standards, Section 601, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports, which are dated June 26, 2024, should be considered in conjunction with this management letter.

Purpose of this Letter
The purpose of this letter is to comment on those matters required by Chapter 10.550 of the Rules of the Auditor General for the State of Florida. Accordingly, in connection with our audit of the financial statements of the District, as described in the first paragraph, we report the following:

Current year findings and recommendations.
Status of prior year findings and recommendations.
Compliance with the Provisions of the Auditor General of the State of Florida.

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, as applicable, management, and the Board of Supervisors of St. Lucie West Services District, St. Lucie County, Florida and is not intended to be and should not be used by anyone other than these specified parties.

We wish to thank St. Lucie West Services District, St. Lucie County, Florida and the personnel associated with it, for the opportunity to be of service to them in this endeavor as well as future engagements, and the courtesies extended to us.

June 26, 2024

REPORT TO MANAGEMENT

CURRENT YEAR FINDINGS AND RECOMMENDATIONS

None

PRIOR YEAR FINDINGS AND RECOMMENDATIONS AND CURRENT YEAR STATUS

None
COMPLIANCE WITH THE PROVISIONS OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA

Unless otherwise required to be reported in the auditor’s report on compliance and internal controls, the management letter shall include, but not be limited to the following:

A statement as to whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report.
There were no significant findings and recommendations made in the preceding annual financial audit report for the fiscal year ended September 30, 2022.
Any recommendations to improve the local governmental entity's financial management.
There were no such matters discovered by, or that came to the attention of, the auditor, to be reported for the fiscal year ended September 30, 2023.
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.
There were no such matters discovered by, or that came to the attention of, the auditor, to be reported, for the fiscal year ended September 30, 2023.
The name or official title and legal authority of the District are disclosed in the notes to the financial statements.

The District has not met one or more of the financial emergency conditions described in Section 218.503(1), Florida Statutes.
We applied financial condition assessment procedures pursuant to Rule 10.556(7) and no deteriorating financial conditions were noted as of September 30, 2023. It is management’s responsibility to monitor financial condition, and our financial condition assessment was based in part on representations made by management and the review of financial information provided by same.

Management has provided the specific information required by Section 218.39(3)(c) in the Other Information section of the financial statements on page 33.