Wynnmere East Community Development District

FINANCIAL STATEMENTS

September 30, 2016

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Wynnmere East Community Development District
Table of Contents September 30, 2016
REPORT
Independent Auditors' Report	1
FINANCIAL STATEMENTS
Management's Discussion And Analysis (required supplemental information)	3
Basic Financial Statements
Government-Wide Financial Statements
Statement of Net Position	8
Statement of Activities	9
Fund Financial Statements
Balance Sheet - Governmental Fund s	10
Reconciliation of the Balance Sheet of Governmental Funds to the Statement
of Net Position	11
Statement of Revenues, Expenditures and Changes in Fund Balances -
Governmental Funds	12
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balances of Governmental Funds to the  Statement of Activities	13
Notes to Financial Statements	14
Required Supplemental Information (other than MD&A)
Budget to Actual Comparison Schedule - General Fund	23
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	24
Management Letter	27
Attestation  Report on Compliance  with Section 218.415 Florida Statutes	29

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C A R R RIGGS & INGRAM
CPAs and Advisors

Carr, Riggs & Ingram, LLC CertifiedPublic Accountants 500 Grand Boulevard
Suite 210
MiramarBeach, Florida32550

INDEPENDENT AUDITORS' REPORT

To the Board of Supervisors
Wynnmere East Community Development District Hillsborough County, Florida

Report on the Financial Statements

(850) 837-3141
(850) 654- 4619 (fax)
CRlcpac. om

We have audited the accompanying financial statements of the governmental activities and each major fund of Wynnmere East Community Development District (hereinaft er referred to as "District"), as of and for the year ended September 30, 2016, and the related notes to the financial statements, which collectively comprise the District's basic financial statements as li sted in the table of contents.

Management's Responsibility for the Financial Statements

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

Auditors' Responsibility

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

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The pro cedures select ed depend on the auditors' judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation ofthe financial statement s 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 ent ity's internal control. Accord ingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is suff icient and appropriate to provide a basis for ou r audit opinions

Opinions

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, 2016, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Other Matters

Required Supplementary Information

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

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated June 22, 2017, on our consideration of the District's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. 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 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.
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CARR, RIGGS & INGRAM, LLC

Miramar Beach, Florida June 22, 2017

Management's Discussion And Analysis

Our discussion and analysis of the Wynnmere East Community Development District's financial performance provides an overview of the District's financial activities for the fiscal year ended September 30, 2016. Please read it in conjunction with the District's financial statements, which begin on page 8.

FINANCIAL HIGHLIGHTS

At September 30, 2016, the assets of the District exceeded its liabilities by approximately
$808,000.

On March 9, 2016, the District issued $6,140,000 of Special Assessment Bonds, Series 2016 to finance construction of the Series 2016 project.

USING THE ANNUAL REPORT

This annual report consists of a series of financial statements. The St at ement of Net Position and the Statement of Activities on pages 8- 9 provide information about the activities of the District as a whole and present a longer-term view of the District's finances. Fund financial statements start on page 10. For governmental activities, these statements tell howthese services were financed in the short-term as well as what remains for future spending. Fund financial statements also report the District's operations in more detail than the government-widestatements by providing information about the District's most significant funds.

Reporting the District as a Whole

Our analysis of the District as a whole begins on page 4. One of the most important questions asked about the District' s finances is, "Is the District as a whole better off or worse off as a result of the year's activities?" The Statement of Net Position and the Statement of Activities report information about the District as a whole and about its activities in a way that helps answer this question. These statements include all assets and liabilities using the accrual basis of accounting, which is similar to the accounting used by most private-sector companies. All of the current year's revenues and expensesare taken into account regardless of when cash is received or paid.

These two statements report the District's net position and related changesduring the current year. You can think of the Districts' net position - the difference between assets and liabilit ies - as one way to measure the Dist rict' s financial health, or financial position. Over t ime , increases or decreasesin the District's net position is one indicator of whether its financial health is improving or deteriorat ing. You will need to consider other nonfinancial factors; however, such as changes in the District 's assessment base and the condition of the District' s infr astruct ure, to assess the overall healt h of the District.

Reporting the District's Most Significant Funds

Our analysis of the District' s major funds begins on page 5. The fund financial statements begin on page 10 and provide detailed informat ion about the most significant funds - not the District as a who le. Some funds are required to be established by State law and by bond covenants. All of the District's funds are governmental fund-types.

Governmental  funds -All oftheDsi t rict ' s basic services are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at year- end that are available for sp ending. The governmental fund statements provide a detailed short­ term view of the District ' s general government operations and the basic services it provides. Governmental fund information helps you determine whether there are more or fewer financial resources that can be spent in the near fut ure to finance the Distric t' s programs.

THE DISTRICT AS A WHOLE

The following table reflects the condensed Statement of Net Position and is compa red to the prior year.

Se ptember 30,	2016	2015	Change	
Assets				
Cur ren t and other assets	$ 2,279,364	$	30,926	$ 2,248,438	
Const ruct ion in progress	5,195,339	2,894,431	2,300,908	
Total assets	$ 7,474,703	$ 2,925,357	$ 4,549,346	

Liabilities				
Cur ren t liabilities	$	630,518	$	40,682	$	589,836	
Other liabiliti es	6,036,089		6,036,089	

Total liabiliti es	6,666,607	40,682	6,625,925	

Net position				
Net investment in capital assets	541,880	2,894,431	(2,352,551 )	
Restricted for:				
Debt service	38,012		38,012	
Unr estr icted	228,204	(9,756)	237,960	
Total net position	808,096	2,884,675	(2,076,579)	

Total liabilities and net position 	$ 7,474,703 $ 2,925,357 $ 4,549,346

For more detailed info rmat ion, see the accompanying Statement of Net Posit ion.

During the fiscal year ended September 30, 2016, t ot al assets and liabilit ies increased by $4.5 mill ion and $6.6 million, respectively. The increase in both is due to proceeds from the issuance of bonds in the current year, a port ion of which were used to construct infrastructure and repay developer advances from prior years.

The fo llow ing schedule compares the Statement of Activities for the current and previous fiscal year.

Year ended September 30,	2016	2015	Change	
Revenues:				
Program revenues:				
Grants and contributions	$	351,623	$ 2,949,531	$ (2,597,908)	
General revenues:				
Interest and other revenues	4	-	4	

Tot al revenues	
351,627	
2,949,531	
(2,597,904)	

Expenses:				
General government	84,777	59,206	25,571	
Maintenance and operations	32,748	5,650	27,098	
Developer contribut ion repayment	1,854,753		1,854,753	
Bond issue costs	292,514		292,514	
Interest	163,414		163,414	

Total expenses	
2,428,206	
64,856	
2,363,350	
Change in net assets	(2,076,579)	2,884,675	(4,961,254)	
Net position, beginning	2,884,675		2,884,675	

Net position, ending	$	808,096	
$ 2,884,675	
$ (2,076,579)	

For more detailed information, see the accompanying Statement of Activit ies.

Revenues decreased from the prior year by appro ximately $2.6 million and expenses increased from the prior year by appro ximately $2.4 million. The decreasein revenues is primarily due to a decrease in developer contributions due to the issuance of bonds in the current year. The increase in expenses is prima rily due to the bond cost of issuance, bond interest costs, and developer contribut ion repayment. The overa ll result was a $2,076,579 decrease in net position for fiscal year 2016.

THE DISTRICT'S FUNDS

As th e District comp leted t he year, its govern ment al funds (as presented in the balance sheet on page
reported a combined fund balance of appro ximately $1.9 million; which is an increa se from last year's deficit balance that totaled appro ximat ely $10,000 (deficit). Significant transactions are disclosed below .

On March 9, 2016, the District issued $6,140,000 of Special Assessment Bonds, Series 2016 to finance construction of the Series 2016 project .

The District repaid the original developer appro ximat ely $1.9 million for prior year contributions out of the bond proceeds related to the project costs.

The overall increase in fund balance for the year ended September 30, 2016 totaled approximately $1.9 million.

Capital Assets

CAPITAL ASSET AND DEBT ADMINISTRATION

At September 30, 2016, the District had approximately $5.2 million invested in capital assets. This amount represents a net increase of approximately $2.3 million from fiscal year 2015.

A listing of capita l assets by major category for the current and prior year follows:
September 30,	2016	2015	Change	

Capital assets not being depreciate--9_	
$	5,195,339	
$   2,894,431	$ 2,300,908	

Net capital assets	
$ 5,195,339	
$   2,894,431	$ 2,300,908_	

More information about the District's capital assets is presented in Note 4 to the financial statements.

Debt

At September 30, 2016, the District had approximately $6.1million of bonds outstanding. This amount represe nt s an increase of $6.1 million from the fiscal year 2015 total.

A listing of debt amounts outstanding for the current and prior year follows:

September 30,	2016	2015	Change	

Series 2016	
$ 6,140,000	
$	-	$ 6,140,000	
	
$ 6,140,000	
$	-	$ 6,140,000	

More information about the District's long-term debt is presented in Note 5 to the financial st at em ent s.

GOVERNMENTAL FUNDS BUDGETARY HIGHLIGHTS

An Operating budget was established by the governing board for the District pursuant to the requirements of Florida Statutes. The budget to actual comparison for the general fund, including the original budget and final adopted budget, is shown at page 23.

The District experienced favorable variances in revenues and expenditures as compared to the budget in the amount of $2,408 and $29,895, respectively. The variance in expenditures is primarily due to anticipated budgeted operating expenditures, such engineering, legal advertising, and landscape and pond maintenance, that were not incurred during the year.

FUTURE FINANCIAL FACTORS

Wynnmere East Community Development District is an independent special district that operates under the provisions of Chapter 190, Florida Statutes. The District operates under an elected Board of Supervisors, which establishes policy and sets contribution rates. Developer contribution rates for fiscal year 2017 have been established to provide for the operations of the District.

CONTACTING THE DISTRICT'S FINANCIAL MANAGEMENT

This financial report is designed to provide a general overview of the District's finances. If you have questions about this report or need additional financial information, contact the Wynnmere East Community Development District's management company at 12051Corporat e Blvd, Orlando, Florida 32817.

Basic Financial Statements

 September 30,	2016
Governmental
 	Activities	

Assets
Cash and cash equivalents Investments
Accounts receivable Deposits receivable Interest receivable Prepaid expenses Capital Assets:
Construction in progress Total assets

$	7,209
2,248,618
15,447
2,825
12
5,253

5,195,339

7,474,703

Liabilities		
Accounts payable	237,964	
Accrued expenses	163,237	
Retainage payable	134,317	
Non-current liabilities:		
Due within one year	95,000	
Due in more than one year	6,036,089	

Total liabilities	
6,666,607	

Net position		
Net investment in capital assets	541 ,880	
Restricted for:		
Debt service	38,012	
Unrestricted	228, 204	

Total net position	$	808 ,09 6_

Program Revenues

Changes in Net Position

Functions/Programs	

Expenses	Operating Grants and
Contributions	Capital Grants and
Contributions	
Governmental Activities	
Primary government:					
Governmental activities:
General government	
$	(84,777)	
$	187,731	
$	163,787	
$	266,741	
Maintenance and operations	(32,748)			{32,748 )	
Developer contribution repayment	(1,854,753)			{1,854 ,753 )	
Bond issuance costs	(292,514)			(292,514)	
Interest	(163,414)	7	98	(163,309)	

Total governmental activities	$ (2,428,206)   $	187,738	$	163,885	(2,076,583)

General revenues
 	Interest and other revenues	4 

 	Total general revenues	4 

Change in net position

 Net position - beginning ofyear

(2,076,579  )

2,884,675 

 Net position - end of year	$	808,096 

September 30,	2016
Total Capital	Governmental
 		General	Debt Service	Projects	Funds                                                                Assets
Cash and cash equiva lent s	$	7,209	$	-	$	-	$	7,209
Investments	241,18 2	2,007,436	2,248,618
Accounts receivable	10,647	2,700	2,100	15,447
Deposits receivable	2,825	\	2,825
Interest receivable		1	11	12	
Prepaid expenditure s	5,253	-		5,253	
Total assets	 	$	25,934 	$ 243,883	$ 2,009,547	$ 2,279,364	

Liabilities and Fund Balances
Liabilities
Accounts payable	$	3,387	$	-	$   234,577	$	237,964	
Retainage payable	134,317	134,317	
 	Total liabilities	3,387 	368,894 		372,281	

Fund balance
Nonspendable	5,253	
5,253	
Reserved for debt service	243,883	243,883	
Reserved for capital pr ojects	1,640 ,653	1,640,653	
Unassigned	17,294	17,294	
Total fund balance	 	22,547	243,883	1,640,653	1,907,083

Total liabilities and fund balance	$	25,934	$   243,8 83	$ 2,009 ,547 $ 2,279,364 

Net Position

September 30,	2016	

Total fund balances (defi cit), governmental fund s	
$	1,9 07 ,08 3	
Capital assets used in government al activiti es are not financial resources and therefore are not reported in the fund financial statement s.	
5,1 95,33 9	
Liabilitie s not due and payable fr om current resources are not reported in the fund level statements.	
(6, 294,326)	

Total net positi on - governmental activities	$	808,096

Governmental Funds

Year ended September 30,	2016

Total

Capital	Governmental
 	General	Debt Service	Projects		Funds Revenues
Assessments	$   149,824	$	37,907	$	-	$	187,731
Interest and other revenues	4	7	98	109
Developer contributions	163,787	163,787
 	Total revenues	149,828	37,914	163,885 	351,627 

Expenditures
Current:
General government	81,944	81,944
Maintenance	35,581	-	35,581
Debt Service:
Bond issuance costs	292,514	292,514
Developer contribution repayment	1,854,753	1,854,753
Capital outlay	2,300,908	2,300,908

Total expenditures	 	117,525	4,448,175	4,565,700 

Net change in fund balances	32,303	37,914	(4,284,290)	(4,214 ,073 )

Other Financing Sources (Uses)
Bond proceeds	215,057	5,924,943	6,140,000
Original issue discount	(9,088)	(9,088)
Transfer in	(26,322)	-	{26,3 22)
Transfer out	26,322	26,322
Total other financing sources (uses)	 	(26,322)	205,969	5,951,265	6,130,912 

Net change in fund balances			5,981		243,883		1,666,975		1,916,839 Fund balance (deficit), beginning of year		16,566			-			(26,322)			{9,756) Fund balance, end of year	$	22,547	$   243,883	$1, 640,653	$ 1,907,083

Balances of Governmental Funds to the Statement of Activities
Year ended September 30,	2016
Net change in fund balances - governmental funds	$	1,916,839

Capital outlay is an expenditure in the governmental funds but the amounts are treated as an increase in capital assets in the Statement of Net Position.

Amortization of original issue discount is not recognized in the governmental fund statements but is reported as an expense in the Statement of Activities

The change in accrued interest between the current and prior year is recorded on the Statement of Activities but not on the fund financial statements.

Bond proceeds and original issue discount which are reported as other financing sources (uses) in the governmental funds are recognized as components of long-term liabilities in the Statement of Net Assets

2,300,908

(177)

(163,237)

(6,130,912)

Change in net position of governmental activities	$	(2,076,579)

NOTE 1: NATURE OF ORGANIZATION

The Wynnmere East Community Development District (the "District") was established on January 13, 2015 pursuant to Chapter 190, Florida Statutes, by Ordinance No. 14-21, Law s of Flor ida.The District has among other things, the power to manage basic services for community development, power to borrow money and issue bonds, and the power to levy ad valorem taxes and assess n on-ad valorem assessments for the financin g and delivery of capital infrastructure.

The District was established for the purpos es of financing and managing the acquisition, construction, maintenance and operation of a portion of the infrastructure necessary for community development within the District.

The District is governed by a Board of Supervisors ("Board"), which is comprised offive members. The Supervisors are elected on an at large basis by the owners of the property within the Distric t. At September 30, 2016, certain supervisors were affiliated with the original developer of the District, Wyn Group, LLC ("Original Developer"). During 2016, a significant portion of the land located within the District was purchased by Lennar Homes, LLC, which effectively made them the new developer of the project (the "Developer"). The Board of Supervisors of the District exercises all powers granted to the District pursuant to Chapter 190, 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 fund s generated by the District.
Approving the hiring and firing of key personnel.
Financing improvements.

In evaluating how to define the government, for financial reporting purposes, management has considered all potential component units. The decision to include or exclude a potential component unit in the reporting entity was made by applying t he criteria set forth by Generally Accepted Accounting Princi ples (GAAP) as defined by the Governmental Accounting Standards Board (GASB) in statements No. 14 and No. 61. Based on the foregoing criteria, no potential component units were found.

NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accounting poli cies of the District conform to GAAP as applicable to governments in accordance with those promulgated by GASB. The following is a summary of the more significant policies:

Government-wide and Fund Financial Statements

The basic financial statements include both government-wide and fund financial statements.

NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

The government-wide financial statements (i.e., the Statement of Net Position and the Statement of Activities) report information on all the non-fiduciary activities of the primary government. Governmental activities, which normally are supported by assessments, are reported separately from business-type activities, which rely to asignificant extent on fees and charges for support. The business­ type activities are reported separately in government-wide financial statements; however, at September 30, 2016, the District did not have any significant business-type activities. Therefore, no business-type activities are reported. Assessments and other items not properly included as program revenues (i.e., charges to customers or applicants who purchase, use, or directly benefit from goods or services) are reported as general revenues.

Separate financial statements are provided for governmental funds. Major individual governmental funds are reported as separate columns in the fund financial statements.

Measurement Focus, Basis of Accounting and Basis of 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 the related cash flows. Assessments are recognized as revenues in the year for which they are levied. Grants and other similar items are to be recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.

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  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. However, debt service expenditures are recorded only when payment is due.

Assessments, including debt service assessments along with operation and maintenance assessments,
are non-ad valorem special assessments imposed on all lands located within the District and benefited by the District's activities . Assessments are levied and certified for collection by the District prior to the

.

start of the fiscal year which begins on October 1st and ends on September 30th

Operation and

maintenance special assessments are imposed upon all benefited lands located in the District . Debt service special assessments are imposed upon certain lots and lands as described in each resolution imposing the special assessment for each series on bonds issued by the District.

Assessments and interest associated with the current fiscal period are all considered to be susceptible to accrual and have been recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable and available only when cash is received by the District.

NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

The District reports the following major governmental funds:

General Fund -The General Fund is the primary operating fund of the District. It is used to account for all financial resources except those required to be accounted for in other funds.

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.

Capital Projects Fund -The Capital Projects Fund accounts for the financial resources to be used in the acquisition or construction of major infrastructure within the District financed with thebonds previously issued or other means.

For the year ended September 30, 2016, the District does not report any proprietary funds.

As a general rule, the effect of interfund act ivity has been eliminat ed from the government-wide financial st at ement s.

When both restricted and unrestricted resources are available for use, it is the District's policy to use restricted resources first, then unrestricted resources as they are needed. When committed, assigned, or unassigned resources are availab le for use in the governmental fund financial statements, it is the government's policy to use committed resources first, followed by assigned resources, then unassigned resources as needed.

Cash, Deposits and Investments

The District maintains deposits with "Qualified Public Depositories" as defined in Chapter 280, Florida Statutes. All Qualified Public Depositories must place with the Treasurer of the State of Florida securities in accordance with col lat eral requirements determined by the State's Chief Financial Off icer. In t he event of default by a Qualified Public Depository, the State Treasurer will pay public depositors all losses. Losses in excess of in surance and collat eral will be paid through assessments bet ween all Qualified Public Deposit ories.

Under this method, all the District's deposits are fully insured or collateralized at the highest level of security as defined by GASB, Statement Number 40, Deposits and Investment Disclosures {An Amendment of GASB, Statement Number 3}.

The District is authorized to invest in fi nancial instruments as established by Section 218.415, Florida Statutes. The authorized investments include among othe rs direct obligations of the U.S. Treasury; the Local Government Surp lu s Trust Funds as created by Section 218.405, Florida Statutes; SEC registered money market funds with the highest credit quality rating from a nat ionally recognized rating agency; and int erest-bearing tim e deposits or savi ngs accounts in authorized financial institutions.

NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES {Continued)

Capital Assets

Capital assets, which include primarily infrastructure assets (e.g., roads, sidewalks, water management systems and similar items), are reported in the governmental activities column in the government-wide financial statements. Capital assets are defined by the District 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 and estimated historical cost if purchased or constructed. Donated assets are recorded at estimated fair market 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 asset lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed.

Property, plant and equipment of the primary government will be depreciated using the straight-line method over the estimated useful lives at the time the assets are completed and placed in service.

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.

Deferred Outflows/Inflows of Resources

In addition to assets, the statement of net position will sometimes include 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. The District does not have any of this type of item at September 30, 2016.

In addition to liabilities, the accomp anying statements will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, de fe rred 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 resour ces(revenue) until that time. The District does not have any of this type of item at September 30, 2016.

Fund Equity

Net position in the government-wide financial statements represents the diff erencebetween assets and deferred outflows of resources and liabilities and deferred inflows of resources and is categorized as net investment in capital assets, restricted or unrestricted. Net invest ment in capital assets represents assets related to infrast ructur e and property, plant and equipment, net of any related debt. Restricted net posit ion represents the assets restricted by the Dist rict ' s bond covenants.

NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Governmental fund equity is classified as fund balance. Fund balance is further classified as nonspendable, restricted, committed, assigned or unassigned. Nonspendable fund balance cannot be spent because of its form. Restricted fund balance has limitations imposed by creditors, grantors, or contributors or by enabling legislation or constitutional provisions. Committed fund balance is a limitation imposed by the District board through approval of resolutions. Assigned fund balance is a limitation imposed by a designee of the District board. Unassigned fund balance in the General Fund is the net resources in excess of what can be properly classified in one of the above four categories. Negative unassigned fund balance in other governmental funds represents excess expenditures incurred over the amounts restricted, committed, or assigned to those purposes.

Estimates

The preparation offinancial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimat es.

Budgets

The District is required to establish a budgetary system and an approved annual budget. Annual budgets are legally adopted on a basis consistent with GAAP for the General Fund. Any revision to the budget must be approved by the District Board. The budgets are compared to actual expenditures. In instances where budget appropriations and estimated revenues have been revised during the year, budget data presented in the financial statements represent final authorization amounts.

The District follows these procedures in establishing the budgetary data reflected in the financial statements:

Each year the District Manager submits to the District Board a proposed operating budget for the fiscal year commencing the following October 1.
A public hearing is conducted to obtain comments.
Prior to October 1, the budget is legally adopted by the Distri ct Board.
All budget changes must be approved by the District Board .
Budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America.

NOTE 3: INVESTMENTS

As shown below, the District's investment s held at September 30, 2016 consist of sho r t -t erm money market funds. In accordance with GASB 72, Fair Value Measurement and Application, the money market amount s are reported in the financial stat ement s at amortized cost.

NOTE 3: INVESTM ENTS (Continued)

The following is a summary of the District's investments:

September 30,	2016	Credit Risk	Maturities

Short-term Money Market Funds	$	2,248,618	S&P AAAm

 	$	2,248,618 

25 days

Custodial credit risk-For an investment, custodial credit risk is the risk that the District will not beable to recover the value of the investments or collateral secur ities that are in the possession of an outside party. The District has no fo rm al policy for custodia l risk. At September 30, 2016, the money market funds are not exposed to custodia l credit risk because their existence is not evidenced by securities that exist in physical or book entry form.

Concentration risk - The District's investment policy requires diversification, but does not specify limits on types of investments.

Interest rate risk-The Dist rict does not have a formal po licy for addressing interest rate risk; however, investments are made with discret ion, to seek reasonable returns, preserve capital, and in general, avoid speculat ive investments. The District manages its exposure to declines in fair values from interest rate changes by reviewing the portfolio on an ongoing basis for changes in effective yield amounts.

NOTE 4: CAPITAL ASSETS

The following is a summary of changes in the capital assets for the year ended September 30, 2016:

Beginning		Transfers and		Ending Balance	Additions	Conveyances	Balance
Governm ental Activities :
Capital assets not being depreciated
	I nfra s t ru ct ure under construction	$ 2,894,431	$ 2,300,908	$	-	$ 5,195,339	
	Total ca pit al assets, not being depreciated	2,894,431	2,300,908	5,195,339	
	
Gove rnme nta l a ct ivit ies capital assets, net	
$ 2,894,431	
$ 2,300,908	
$	-	$ 5,195,339	

NOTE 4: CAPITAL ASSETS (Co ntinued )

The total projected cost ofthe infrastructure improvementshas been estimated at $8 mi lli on and will be comp leted in phases. A portion of the proceeds from the Series 2016 Bonds will be used to purchase the project from the Developer and finance a portion of the project.

NOTE 5: BONDS PAYABLE

On March 9, 2016, the Distri ct issued $6,140,000of Special Assessment Bonds, Ser i es2016 consisting of
$620,000 Term Bonds due on May 1, 2022 with a fixed interest rate of 4.00%,$975,000 Term Bonds due on May 1, 2029 with a fixed interest rate of 5%, $1,395,000Term Bonds due on May 1, 2036 with a fixed interest rate of 5.125%, and $3,150,000 Term Bond due on May 1, 2046 with a fi xed interest rate of 5.5%. The Bonds were issued to provide funding to pay all or a port ion of the costs of the planning, financing, acquisition, constru ction, equipping and installat ion of the Series 2016 project. Interest is to be paid semiannually on each May 1 and November 1, commencing November 1, 2016. Principal is to be paid annually on each May 1, commencing May 1, 2017. The Series 2016 Bonds are subject to redempt ion at the option of the District prior to their matur ity.

The Bond Indent ure requires that the District maintain adequate funds in the reserve account to meet the debt service reserve requirement as defined in the Indent ure. The reserve requ irement has been met for the fiscal year ended Sept ember 30, 2016.

The Bond Indenture has established a debt service reserve requirement as well as other restrictions and requirements relating principally to the use of proceeds to pay for the infr astruct ure improvements and the procedures to be followed by the District on assessment s to property owners. The District agrees to levy special assessments in annual amounts adequate to provide payment of debt service and to meet the reserve requir ement s. The District is in compliancewit h those requirement s of the Bond Indenture at Sept ember 30, 2016

Long-t er m liability activity for the year ended September 30, 2016, was as fo llows :

Beginning		Endin g	Due Within	
 	Balance 
Governmental Activities	Additions	Reductions	Balance	One Year	
Bonds Payab le:				
Series 2016	$ 	-	$6,140,000	$	-	$6,140,000	$	95,000

$	-	$6,140,000	$	-	$6,140,000	$	95,000

NOTE 5: BONDS PAYABLE {Continued)

The balance of the long-term bonds at September 30, 2016 is summarized as follows:

Septembe[_}O,	2016

Bond principal balance	$	6,140,000	
Less unamortized bond discount	(8,911)	

Net balance	
$	6,131,089	

At September 30, 2016, the scheduled debt service requirements on long-term debt were as follows:
Total Debt
Year Ending September 30,	Principal	Interest	Service

2017	$	95,000	$	345,702	$	440,702	
2018	95,000	314,494	409,494	
2019	100,000	310,694	410,694	
2020	105,000	306,694	411,694	
2021	110,000	302,494	412,494	
2022-2026	630,000	1,435,069	2,065,069	
2027-2031	810,000	1,261,756	2,071,756	
2032-2036	1,045,000	1,032,300	2,077,300	
2037-2041	1,360,000	724,900	2,084,900	
2042-2046	 	1,790,000	306,075		2,096,07

 	$ 6,140,000 $ 6,340,178 $ 12,480,178   

NOTE 6: INTERFUND TRANSFERS

The transfer s between the General and Capital Projects funds were related to funding requests received in the Capital Pro jec ts fund related to General fund expenses.

NOTE 7: 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 disast er s. The Dist ri ct maintains commercial insurance coverage to mit igate the risk of loss. Coverage may not extend to all situations. Management believes such coverage is sufficient to preclude any significant uninsured losses to the District. Settled claims have not exceeded this commercial coverage since inception.

NOTE 8: MANAGEMENT COMPANY

The District has contracted with a management company to perform management advisory services, which include financial and accounting advisory services. Certain employees of the management company also serve as officers (Board appointed non-voting positions) of the District. Under the agreement, the District compensates the management company for management, accounting, financial reporting, and other administrative costs.

NOTE 9: CONCENTRATION

At September 30, 2016, the Developer owned a majority of the property within the District. As such, a significant portion of the District's future activity is dependent upon the continued involvement of the Developer, the loss of which could have a materially adverse effect on the District's operations.

During the year, the Original Developer contributed $163,787 to the Capital Projects Fund to fund capital outlay expendituresin the current year, of which $2,100 was receivable at year-end.

In the previous year, the Original Developer contributed approximately $2.4 million to the District to fund certain infrastructure construction. At that time the District did not anticipate repaying those amounts, and accordingly, they were reported as revenues on the fund-level and government wide financial stat ements. In the current year, the District's Board decided to repay a portion of these contributions from bond proceeds. These repayments, totaling $1.9 million, are reflected as expense/ expenditures on the fund-level and government wide financial statements.

NOTE 10 : COMMITMENTS

As of September 30, 2016, the District had open contract commitments of approximately $1.4 for ongoing construction projects.

NOTE 11: SUBSEQUENT EVENT

Subsequent to year end, the Original Developer conveyed 3.43 acres of detention ponds and parks to the District.

Required Supplemental Information (Other Than MD&A)

Wynnmere East Community Development District Budget to Actual Comparison Schedule - General Fund
Year ended September 30,	2016
Original and	Actual	Variance with
 		Final Budget	Amounts	Final                                         Budget Revenues
Developer contribution s	$	147,420	$	149,824	$	2,404
Interest and other revenues	4	4
Total revenues	147 ,420	149,828	2,408

Expenditures
General government	98,000	81,944	16,056
Maintenance and operations	49,420	35,581	13,839

Total expenditures	147,420	117,525	29,895

Excess of revenues over expenditures	$	-	$	32,303	$	32,303

\

11..	CRI

C A R R RIGGS & INGRAM
CPAs and Advisors

Carr, Riggs & Ingram, LLC Certified Public Accountants 500 Grand Boulevard
Suite 210
Miramar Beach, Florida 32550

(850) 837-3141
(850) 654-4619 (fax)
CRlcpa.com

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
Wynnmere East Community Development District Hillsborough County, Florida

We have audited, in accordance with the auditing standards generall y accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller Genera l of the United States, the financial statements of the governmental activities and each major fund of Wynnmere East Community Development District (hereinafter referred to as the "District"), as of and for the year ended September 30, 2016, and the related notes to the financial statements, which collective ly comprisethe District's basic financial statements, and have issued our report thereon dated June 22, 2017.

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 cont rol, 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 de ficiencyis a deficiency, or a combinationof deficiencies, in internal control that is lesssevere 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 inthe first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknessesor significant defi ciencies, and therefore, material weaknesses or significant deficiencies may exist that were not identified. We did identify certa in defi ciencies in internal control described below as items IC2016 -001 and IC2016-002that we consider to be material weaknesses.

IC2016-001: Bond discount and underwriters costs

Condition: As part of our audit procedures, we identified approximately $10,000 of bond discount and $138,000 of underwriter's discount that was not recorded on the District's financial statements as of September 30, 2016.

Criteria: Internal controls relating to the annual financial close process should be in place to provide reasonable assurance that bond issuance related costs are properly recorded.

Cause: The underwriter's discount is not a direct expense paid through the District's financial accounting system.

Effect: Bond issuance costs and long-term debt on the financial statements were understated by approximately $147,000.

Recommendation: We recommend the District record the full bond proceeds and related issuance costs.

Management Response: The District has already taken further steps to ensure that this oversight is avoided in the future.

IC2016-002: Capital expenditures and retainage payable

Condition: As part of our audit procedures, we identified approximately $125,000 of capital expenditures payable and $14,000 of construction retainage payable that was not accrued on the District's financial statements as of September 30, 2016 even though the work was performed prior to year-end.

Criteria: Internal controls relating to the annual financial close process should be in place to provide reasonable assurance that payables and the related expenditures are appropriate and properly accrued.

Cause: The retainage payable was from one specific payment application and appears to have been overlooked when District staff was preparing its annual financial report.

Effect: Capital expenditures and Construction retainage payable on the financial statements were understated by approximately $139,000.

Recommendation: We recommend the District review construction vendor activity within a reasonable timeframe from year-end to ensure that all applicable contract liabilities are identified and recorded. This is particularly important when an active infrastructure construction project is in process.

Management Response: The District has already taken further steps to ensure that this oversight is avoided in the future.

Compliance and Other Matters

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

Purpose of this Report

The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the result 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.
c	1<	.1	J 1..1..c..
CARR, RIGGS & INGRAM, LLC

Miramar Beach, Florida June 22, 2017

1 CRI

C A R R RI GG S & INGRAM
CPAs and Advisors

Carr, Riggs & Ingram, LLC Cert ified Public Accountants 500 Grand Boulevard
Suite 210
Miramar Beach, Florida 32550

To the Board of Supervisors

MANAGEMENT LETTER

(850) 837-3141
(850) 654-4619(fax)
CRlcpa.com

Wynnmere East Community Development District Hillsborough County, Florida

Report on the Financial Statements

We have audited the financial statements of the Wynnmere East Community Development District ("District") as of and for the fiscal year ended September 30, 2016, and have issuedour report thereon dated June 22, 2017.

Auditors' Responsibility

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

Other Reports

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 A/CPA Professional Standards, Section 601, regarding compliance requirement s in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in these reports, which are dated June 22, 2017, should be considered in conjunction with this management lett er.

Prior Audit Findings

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

Official Title and Legal Authority

Section 10.554(1)(i)4., Rules of the Auditor General, requir es t hat the name or official title and legal authority for the primary government and each component unit of the reportingentity be disclosed in this management letter, unless disclosed in the notes to the financial statements. The information required is disclosed in the notes to the financial statements.

Financial Condition

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

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

Annual Financial Report

Section 10.554(1)(i)5.b. and 10.556(7), Rules of the Auditor General, require that we apply appropriate procedures and report the results of our determination as to whether the annual financial report for the District for the fiscal year ended September 30, 2016, filed with the Florida Department of Financial Services pursuant to Section 218.32(1)(a), Florida Statutes, is in agreement with the annual financial audit report for the fiscal year ended September 30, 2016. In connection with our audit, we determined that these two reports were in agreement.

Other Matters

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

Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but which warrants the attention of those charged with governance. In connection with our audit, we did not have any 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.
Ca«.-, I?   .i J	1..1..c.
CARR, RIGGS & INGRAM, LLC

Miramar Beach, Florida June 22, 2017

1 CRI

C A R R RIGGS & INGRAM
CPAs and Advisors

Carr, Riggs & Ingram, LLC CertifiedPublic Accountants 500 Grand Boulevard
Suite 210
Miramar Beach, Florida 32550

INDEPENDENT ACCOUNTANTS' REPORT

(850) 837-3141
(850) 654- 4619(fax)
CRlcpa.com

To the Board of Supervisors
Wynnmere East Community Development District Hillsborough County, Florida

We have examined Wynnmere East Community Development District's compliance wit h the requirement s of Section 218.415, Florid a Statutes, Local Government Investment Policies, during the year ended September 30, 2016. Management is responsibl e for the District's compliance with those requirements. Our responsibility is to express an opinion on the District' s compliance based on our examination.

Our examinat ion was conducted in accordance with attestation standards established by the Amer ican Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about the District's compliance w it h 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 the Dist rict ' s compliance with specifi ed requirements.

In our opinion, the District complied, in all material respects, with the aforementioned requirements for the year ended September 30, 2016.

This report is intended solely for the information and use of managem ent and the State of Florida Auditor General and is not intended to be and should not be used by anyone other than these specified parties.
c	i	J i..1..c..
CARR, RIGGS & INGR AM, LLC

Miramar Beach, Florida June 22, 2017