Falcon Trace Community Development District

Agenda March 21, 2018

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March 14, 2018

Falcon Trace
Community Development District
135 W. Central Blvd., Suite 320, Orlando, FL 32801
Phone: 407-841-5524 - Fax: 407-839-1526

Board of Supervisors Falcon Trace Community Development District

Dear Board Members:

The regular meeting of the Board of Supervisors of Falcon Trace Community Development District will be held Wednesday, March 21, 2018 at 6:00 PM at the Big Hawk Lake Recreation Center, 13600 Big Hawk Lake Drive, Orlando, Florida. Following is the advance agenda for the meeting:

Roll Call
Public Comment Period
Approval of the Minutes of the January 17, 2018 Meeting
Review and Acceptance of Fiscal Year 2017 Audit Report
Staff Reports
Attorney
District Manager's Report
Approval of Check Register
Balance Sheet and Income Statement
Field Manager's Report
Supervisor's Requests
Adjournment

The second order of business of the Board of Supervisors meeting is the Public Comment Period where the public has an opportunity to be heard on propositions coming before the Board as reflected on the agenda, and any other items.

The third order of business is the approval of the minutes from the January 17, 2018 meeting. The minutes are enclosed for your review.

The fourth order of business is the review and acceptance of the Fiscal Year 2017 audit report. A copy of the report is enclosed your review.

Section B of the fifth order of business is the District Manager's Report. Section 1 includes the check register being submitted for approval and Section 2 includes the balance sheet and income statement for your review. Section 3 is the Field Manager's Report, which will be presented at the meeting.

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The balance of the agenda will be discussed at the meeting. In the meantime, if you should have any questions, please do not hesitate to contact me.

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Sincerely,

��-Showe District Manager

CC:		Mike Eckert, District Counsel Lindsay Whelan, District Counsel Darrin Mossing, GMS

Enclosures

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MINUTES OF MEETING FALCON TRACE
COMMUNITY DEVELOPMENT DISTRICT

The regular meeting of the Board of Supervisors of the Falcon Trace Community Development District was held Wednesday, January 17, 2018 at 6:00 p.m. at the Big Hawk Lake Recreational Center, 13600 Hawk Lake Drive, Orlando, Florida.

Present and constituting a quorum were: Sara Hurst
Carole Miller
Kathy Stark
Sue Marchesi Baron Felix Kutlik

Also Present were:
Jason Showe Mike Eckert Alan Scheerer David Tuel

FIRST ORDER OF BUSINESS

Chairperson
Vice Chairperson Assistant Secretary Assistant Secretary Assistant Secretary

District Manager
District Counsel (by phone) Field Operations
Head Pool Attendant

Roll Call

Mr. Showe called the meeting to order at 6:00 p.m. and called the roll.

SECOND ORDER OF BUSINESS	Public Comment Period
There being none, the next item followed.

THIRD ORDER OF BUSINESS	Approval of the Minutes of the October 18,
2017 meeting

On MOTION by Ms. Stark seconded by Ms. Miller with all in favor the minutes of the October 18, 2017 meeting were approved as presented.

January 17,2018

FOURTH ORDER OF BUSINESS

Falcon Trace CDD

Ratification of Agreement with Grau & Associates to Perform Auditing Services for Fiscal Year 2017

Mr. Showe stated next is ratification of agreement with Grau & Associates to perform auditing services for Fiscal Year 2017. At your October meeting, you selected Grau & Associates as the number one ranked firm and we executed an agreement in accordance with their bid and we would like the board to ratify that action.

On MOTION by Ms. Hurst seconded by Ms. Miller with all in favor the engagement letter with Grau & Associates to perform the Fiscal Year 2017 audit was ratified.

FIFTH ORDER OF BUSINESS	Consideration	of  Second	Amendment	to
Sharks & Minnows Contract
Mr. Showe stated next is consideration of the second amendment to the Sharks & Minnows contract. District Counsel drafted this amendment to their contract and this is the last extension under our current agreement. We have the same discounts for residents as we had in the past.

On MOTION by Ms. Stark seconded by Ms. Miller with all in favor the second amendment to the agreement with Sharks & Minnows was approved.

SIXTH ORDER OF BUSINESS	Staff Reports
Attorney
There being none, the next item followed.

Manager
Approval of Check Register
Mr. Showe stated the first item is approval of the check register for checks 3636 through 3662 in the amount of $353,655.98. The large checks are for transfers from the General Fund to the Debt Service Fund.

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January 17, 2018	Falcon Trace CDD

On MOTION by Ms. Miller seconded by Ms. Hurst with all in favor the check register from October 11, 2017 through January 9, 2018 in the total amount of $353,655.98 was approved.

Balance Sheet and Income Statement
A copy of the balance sheet and income statement was included in the agenda package.

Field Manager's Report
Mr. Scheerer stated we have had some issues with the pool contractor. I touched based with him and he missed two days last week so we asked him to adjust his invoice for the month accordingly. Staff is monitoring through the key card system whether he is coming or not. We are going to continue to do that and in the interim I have contacted Robert's Pool Service and asked them to provide a quote. In the event we need to make a change we can do that as long as it doesn't exceed the current contract price. We combined the two SafeTouch systems, we had one by itself here and one by the waterslide and we should see about a $40 savings. We are also starting our winter maintenance projects.

SEVENTH  ORDER OF BUSINESS	Supervisor's Requests
There being none, the next item followed.

EIGHTH  ORDER OF BUSINESS	Next Meeting Date
Mr. Showe stated the next meeting is scheduled for March 31, 2018 at 6:00 p.m. in the same location.

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January 17, 2018	Falcon Trace CDD

On MOTION by Ms. Hurst seconded by Ms. Miller with all in favor the meeting adjourned at 6:05 p.m.

Secretary/Assistant Secretary	Chairman/Vice Chairman

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FALCON TRACE COMMUNITY DEVELOPMENT DISTRICT
ORANGE COUNTY, FLORIDA FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017

FALCON TRACE COMMUNITY DEVELOPMENT DISTRICT ORANGE COUNTY, FLORIDA

TABLE OF CONTENTS

	    Page		
INDEPENDENT AUDITOR’S REPORT	1-2	
MANAGEMENT’S DISCUSSION AND ANALYSIS	3-6	
BASIC FINANCIAL STATEMENTS		
Government-Wide Financial Statements:		
Statement of Net Position	7	
Statement of Activities	8	
Fund Financial Statements:		
Balance Sheet – Governmental Funds	9	
Reconciliation of the Balance Sheet – Governmental Funds
to the Statement of Net Position	
10	
Statement of Revenues, Expenditures and Changes in Fund Balances –
Governmental Funds	
11	
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balances of Governmental Funds to the Statement of Activities	
12	
Notes to the Financial Statements	13-20	
REQUIRED SUPPLEMENTARY INFORMATION		
Schedule of Revenues, Expenditures and Changes in Fund Balances –
Budget and Actual – General Fund	
21	
Notes to Required Supplementary Information	22	
INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS		
	23-24	
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		
	25	
MANAGEMENT LETTER REQUIRED BY CHAPTER 10.550 OF THE RULES
OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA	
26-27	

INDEPENDENT AUDITOR’S REPORT

To the Board of Supervisors
Falcon Trace Community Development District Orange County, Florida

2700 North Military Trail ▪ Suite 350
Boca Raton, Florida  33431 (561) 994-9299 ▪ (800) 299-4728
Fax (561) 994-5823
www.graucpa.com

Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities and each major fund of Falcon Trace Community Development District, Orange County, Florida (“District”) as of and for the fiscal year ended September 30, 2017, and the related notes to the financial statements, which collectively comprise the District’s basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the 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 procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit 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, 2017, 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.

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 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 February 23, 2018, 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 to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the District’s internal control over financial reporting and compliance.
Report on Other Legal and Regulatory Requirements
We have also issued our report dated February 23, 2018, on our consideration of the District’s compliance with the requirements of Section 218.415, Florida Statutes, as required by Rule 10.556(10) of the Auditor General of the State of Florida. The purpose of that report is to provide an opinion based on our examination conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants.

February 23, 2018

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MANAGEMENT’S DISCUSSION AND ANALYSIS

Our discussion and analysis of Falcon Trace Community Development District, Orange County, Florida (“District”) provides a narrative overview of the District’s financial activities for the fiscal year ended September 30, 2017. 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.

FINANCIAL HIGHLIGHTS

The assets plus deferred outflows of resources of the District exceeded its liabilities at the close of the fiscal year ended September 30, 2017 resulting in a net position balance of $191,852.

The change in the District’s total net position in comparison with the prior fiscal year was
$349,860, 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, 2017, the District’s governmental funds reported combined ending fund balances of $700,963, an increase of $68,009 in comparison with the prior fiscal year. A portion of fund balance is restricted for debt service and capital projects, non-spendable for prepaid items, assigned to capital reserves, 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, liabilities, and deferred inflows of resources 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.

The government-wide financial statements include all governmental activities that are principally supported by special assessment revenues. The District does not have any business-type activities. The governmental activities of the District include the general government (management) and maintenance functions.

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 one fund category: governmental funds.

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OVERVIEW OF FINANCIAL STATEMENTS (Continued)

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 balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.

The District maintains three individual governmental funds. 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 fund, debt service fund and capital projects fund all of which are considered 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.

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.

GOVERNMENT-WIDE FINANCIAL ANALYSIS

As noted earlier, net position may serve over time as a useful indicator of an entity’s financial position. In the case of the District, assets plus deferred outflows exceeded liabilities at the close of the fiscal year.

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

NET POSITION SEPTEMBER 30,
2017	2016
Current and other assets	$	707,160	$	640,152	
Capital assets, net of depreciation	 	623,896	682,552 	
Total assets	 	1,331,056	1,322,704 	
Deferred outflows of resources	 	43,650	59,522 	
Current liabilities	27,854	35,234	
Long-term liabilities	 	1,155,000	1,505,000 	
Total liabilities	 	1,182,854	1,540,234 	
Net position		
Net investment in capital assets	(461,035)	(736,507)	
Restricted	215,639	201,774	
Unrestricted	 	437,248	376,725 	
Total net position	  $	191,852	$	(158,008)	

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.

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GOVERNMENT-WIDE FINANCIAL ANALYSIS (Continued)

The restricted portion of the District’s net position represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position may be used to meet the District’s other obligations.

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 net position are reflected in the following table:

CHANGES IN NET POSITION
FOR THE FISCAL YEAR END SEPTEMBER 30,
2017	2016

Revenues:

Program revenues Charges for services

$	789,128	$

787,932

Operating grants and contributions	530	774
Capital grants and contributions	166	153
General revenues	 	2,713	3,752 
Total revenues	 	792,537	792,611 Expenses:
General government	97,164	101,834
Maintenance and operations	268,732	295,322
Interest	 	76,781	91,709 
Total expenses	 	442,677	488,865 
Change in net position	 	349,860	303,746 
Net position - beginning	 	(158,008)	(461,754)
Net position - ending	 $	191,852	$	(158,008)

As noted above and in the statement of activities, the cost of all governmental activities during the fiscal year ended September 30, 2017 was $442,677.  The costs of the District’s activities were primarily  funded by program revenues. The District also received funds from investment earnings and miscellaneous revenues which are also included in program revenues. The majority of the change in expenses results from the decrease in maintenance costs.

GENERAL 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 amendment that increases the aggregate budgeted appropriations must be approved by the Board of Supervisors. Any budget amendments Actual general fund expenditures did not exceed appropriations for the fiscal year ended September 30, 2017.

CAPITAL ASSETS AND DEBT ADMINISTRATION

Capital Assets

At September 30, 2017, the District had $1,747,669 invested in capital assets for its governmental activities. In the government-wide financial statements, depreciation of $1,123,773 has been taken,  which resulted in a net book value of $623,896. More detailed information about the District’s capital assets is presented in the notes of the financial statements.

Capital Debt

At September 30, 2017, the District had $1,155,000 in Bonds outstanding for its governmental activities. More detailed information about the District’s capital debt is presented in the notes of the financial statements.

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ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND OTHER EVENTS

The District does not anticipate any major projects or significant changes to its infrastructure maintenance program for the subsequent fiscal year. In addition, it is anticipated that the general operations of the District will remain fairly constant.

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 Falcon Trace Community Development District’s Finance Department at 135 West Central Blvd., Suite 320, Orlando, Florida 32801.

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FALCON TRACE COMMUNITY DEVELOPMENT DISTRICT ORANGE COUNTY, FLORIDA
STATEMENT OF NET POSITION SEPTEMBER 30, 2017

	Governmental
Activities	
ASSETS		
Cash	$	363,827	
Investments	57,638	
Prepaids and other assets	21,980	
Restricted assets:		
Investments	263,715	
Capital assets:		
Depreciable, net	 	623,896 	
Total assets	 	1,331,056 	

DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding (debit)	 	43,650 
Total deferred outflows of resources	 	43,650 

LIABILITIES		
Accounts payable	6,197	
Accrued interest payable	21,657	
Non-current liabilities:
Due within  one year	
370,000	
Due in more than one year	 	785,000 	
Total liabilities	 	1,182,854 	
NET POSITION
Net investment in capital assets	
(461,035)	
Restricted for debt service	215,639	
Unrestricted	 	437,248 	
Total net position	  $	191,852 	

See notes to the financial statements

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FALCON TRACE COMMUNITY DEVELOPMENT DISTRICT ORANGE COUNTY, FLORIDA
STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017

Program Revenues
Charges	Operating	Capital

Net (Expense) Revenue and Changes in Net Position

for		Grants and		Grants and	Governmental Functions/Programs	 Expenses	Services	Contributions	Contributions		Activities	 Primary government:
Governmental activities:
General government	$	97,164	$	97,164	$	-	$	-	$	-	
Maintenance and operations	268,732	267,761	-	166	(805)	
Interest on long-term debt	 	76,781	424,203	530	-	347,952 	
Total governmental activities	 	442,677	789,128	530	166	347,147 	

General revenues:
Unrestricted investment earnings	88
Miscellaneous	 	2,625 
Total general revenues	 		2,713 Change in net position		349,860
Net position - beginning	 	(158,008) 
Net position - ending	 $	191,852 

See notes to the financial statements

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FALCON TRACE COMMUNITY DEVELOPMENT DISTRICT ORANGE COUNTY, FLORIDA
BALANCE SHEET GOVERNMENTAL FUNDS SEPTEMBER 30, 2017

ASSETS

 	Major Funds	
Debt	Capital
General	Service	Projects

Total Governmental Funds

Cash

$	113,747	$

-	$	250,080	$

363,827

Investments	57,638	237,296	26,419	321,353
Prepaids and other assets	 	21,980	-	-	21,980 
Total assets	 $	193,365	$	237,296	$	276,499	$	707,160 

LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable

  $	6,197	$	-	$	-	$	6,197 

Total liabilities	 	6,197	-	-	6,197 

Fund balances: Nonspendable:
Prepaid items
Restricted for:	21,980	-	-	21,980	
Debt service	-	237,296	-	237,296	
Capital projects	-	-	26,419	26,419	
Assigned:		
Captal reserves	-	-	250,080	250,080	
Unassigned	 	165,188	-	-	165,188 	
Total fund balances	 	187,168	237,296	276,499	700,963 	

Total liabilities and fund balances	 $	193,365	$	237,296	$	276,499	$	707,160 

See notes to the financial statements

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FALCON TRACE COMMUNITY DEVELOPMENT DISTRICT ORANGE COUNTY, FLORIDA
RECONCILIATION OF THE BALANCE SHEET - GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION
SEPTEMBER 30, 2017

Fund balance - governmental funds
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	1,747,669

$	700,963

Accumulated depreciation	 (1,123,773)	623,896 Liabilities not due and payable from current available
resources  are  not  reported  as  liabilities  in  the  governmental
fund financial statements. All liabilities, both current and long- term, are reported in  the  government-wide  financial statements.
Deferred amount on refunding	206,338	
Amortization of deferred amount	(162,688)	
Accrued interest payable	(21,657)	
Bonds payable	    (1,155,000)	(1,133,007) 	
Net position of governmental activities	  $	191,852 	

See notes to the financial statements

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FALCON TRACE COMMUNITY DEVELOPMENT DISTRICT ORANGE COUNTY, FLORIDA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017

REVENUES

 	Major Funds	
Debt	Capital
General	Service	Projects

Total Governmental Funds

Assessments

$	364,925	$

424,203	$

-	$	789,128

Interest	88	530	166	784
Miscellaneous revenue	 	2,625		2,625 
Total revenues	 	367,638	424,733	166	792,537 

EXPENDITURES
Current:
General government	97,164	-	-	97,164	
Maintenance and operations	199,869	-	-	199,869	
Debt service:			
Principal	-	350,000	-	350,000	
Interest	-	67,288	-	67,288	
Capital outlay	10,207	10,207 
Total expenditures	 	297,033	417,288	10,207	724,528 

Excess (deficiency) of revenues
over (under) expenditures	70,605	7,445	(10,041)	68,009

OTHER FINANCING SOURCES (USES)
Transfers in (out)	 	(14,382)	41	14,341	-	 Total other  financing sources (uses)	 	(14,382)	41	14,341	-	

Net change in fund balances	56,223	7,486	4,300	68,009

Fund balances - beginning	 	130,945	229,810	272,199	632,954 

Fund balances - ending	 $	187,168	$	237,296	$	276,499	$	700,963 

See notes to the financial statements

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FALCON TRACE COMMUNITY DEVELOPMENT DISTRICT ORANGE COUNTY, FLORIDA
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017

Net change in fund balances -  total governmental funds	$ Amounts reported for governmental activities in the statement of activities
are different because:
Depreciation on capital assets is not recognized in the governmental fund financial statements but is reported as an expense in the

68,009

statement of activities.	(58,656)
Repayment of long-term liabilities are reported as expenditures in the governmental fund financial statement but such repayments reduce liabilities in the statement of net position and are eliminated in the
statement of activities.	350,000
Amortization of deferred charges is not recognized in the governmental fund financial statements, but is reported as an
expenses  in the statement of activities.	(15,872)

The change in accrued interest on long-term liabilities between the		
current and prior fiscal year is recorded in the statement of activities		
but not in the fund financial statements.	 	6,379 	
Change in net position of governmental activities	  $	349,860 	

See notes to the financial statements

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FALCON TRACE COMMUNITY DEVELOPMENT DISTRICT ORANGE COUNTY, FLORIDA
NOTES TO FINANCIAL STATEMENTS

NOTE 1 – NATURE OF ORGANIZATION AND REPORTING ENTITY

Falcon Trace Community Development District ("District") was established on April 8, 1998 by the Orange County Board of County Commissioners, Ordinance 98-10 as amended by Ordinance 98-30, pursuant to the Uniform Community Development District Act of 1980, otherwise known as Chapter 190, Florida Statutes. The Act provides, among other things, the power to manage basic services for community development and to levy and assess non-ad valorem assessments for the financing and maintenance of improvements.

The District is governed by the Board of Supervisors ("Board") which is composed of five members. The Supervisors are elected on an at large basis by the qualified electors residing within the District. The Board of Supervisors of the District exercise all powers granted to the District pursuant to Chapter 190, Florida Statutes.

The Board has the responsibility for:
Allocating and levying assessments.
Approving budgets.
Exercising control over facilities and properties.
Controlling the use of funds generated by the District.
Approving the hiring and firing of key personnel.
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 Board of Supervisors 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 primary government. For the most part, the effect of interfund activity has been removed from these statements.

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.

13

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Measurement Focus, Basis of Accounting and Financial Statement Presentation (Continued) 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 benefited property within the District. Operations and maintenance assessments are based upon the adopted budget and levied annually at a public hearing of the District. Debt service assessments are levied when Bonds are issued and assessed and collected on an annual basis. The District may collect assessments directly or utilize the uniform method of collection under Florida Statutes. Direct collected assessments are due as determined by annual assessment resolution adopted by the Board of Supervisors. Assessments collected under the uniform method are mailed by the County  Tax  Collector  on  November  1  and  due  on  or  before  March  31  of  each  year. Property owners may prepay a portion or all of the debt service assessments on their property subject to various provisions in the Bond documents.

Assessments and interest associated with the current fiscal period are considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. The portion of assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of 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.

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
This fund accounts for the financial resources to be used for the acquisition or construction of major infrastructure within the District and for the accumulation of funds for capital reserves.

As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements.

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
These assets represent cash and investments set aside pursuant to 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).

14

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Assets, Liabilities and Net Position or Equity (Continued)

Deposits and Investments (Continued)
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.

Prepaid Items
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.

Capital Assets
Capital assets which include property, plant and equipment, and infrastructure assets (e.g., roads, sidewalks and similar items) are reported in the government activities columns in the government-wide financial statements. Capital assets are defined by the government as assets with an initial, individual cost of more than $5,000 (amount not rounded) 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 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 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 – recreational facilities	30	
Equipment – recreational facilities	10	
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 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, $15,872 was recognized as a component of interest expense in the current fiscal year.

15

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Assets, Liabilities and Net Position or Equity (Continued)

Unearned Revenue
Governmental funds report unearned revenue in connection with resources that have been received, but not yet earned.

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. 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 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
Deferred outflows of resources represent a consumption of net position that applies to future reporting period(s). For example, the District would record deferred outflows of resources on the statement of net position related to debit amounts resulting from current and advance refundings resulting in the defeasance of debt (i.e. when there are differences between the reacquisition price and the net carrying amount of the old debt).

Deferred inflows of resources represent an acquisition of net position that applies to future reporting period(s). For example, when an asset is recorded in the governmental fund financial statements, but the revenue is unavailable, the District reports a deferred inflow of resources on the balance sheet until such times as the revenue becomes available.

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.

16

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Assets, Liabilities and Net Position or Equity (Continued)

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 all governmental funds. 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 District 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 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.

NOTE 4 – DEPOSITS

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.

17

NOTE 4 – DEPOSITS (Continued)

Investments
The District’s investments were held as follows at September 30, 2017:

  Amortized Cost	Credit Risk	Maturities	 US Bank Mmkt 5 - Ct	$	321,353		N/A		N/A
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 – INTERFUND TRANSFERS

Interfund transfers for the fiscal year ended September 30, 2017 were as follows:

Fund	Transfer in	Transfer Out

General	$	-	$	14,382
Debt service			41	- Capital projects	 	14,341	-	
Total	 $	14,382	$	14,382 

Transfers are used to move revenues from the fund where collection occurs to the fund where funds have been reallocated for use. In the case of the District, transfers from the general fund to a capital reserve account were made to fund future capital projects within the District.

18

NOTE 6 – CAPITAL ASSETS

Capital asset activity for the fiscal year ended September 30, 2017 was as follows:

	Beginning	Ending
Balance	Additions	Reductions	Balance	
Governmental activities
Capital assets, being depreciated Infrastructure - recreational facilities	

$	1,741,669	$	-	$	-	$ 1,741,669	
Equipment - recreational facilities	 	6,000	-	-	6,000 	
Total capital assets, being depreciated	 	1,747,669	-	-	1,747,669 	
Less accumulated depreciation for: Infrastructure - recreational facilities	
1,060,317	58,056	-	1,118,373	
Equipment - recreational facilities	 	4,800	600	-	5,400 	
Total accumulated depreciation	 	1,065,117	58,656	-	1,123,773 	
Total capital assets, being depreciated, net	 	682,552	(58,656)	-	623,896 	
Governmental activities capital assets, net	   $	682,552	$	(58,656)   $	-	$	623,896 	

In the current fiscal year, depreciation was charged to the maintenance and operations function/program.

NOTE 7 – LONG-TERM LIABILITIES

On July 1, 2007, the District issued $4,085,000 of Special Assessment Refunding Bonds. The Series 2007 Bonds were applied together with other legally available funds to refund the Series 1999 Special Assessment Bonds. The Series 2007 Bonds bear interest at rates from 4.00% to 4.50%. Interest is paid semiannually on each May 1 and November 1, commencing November 1, 2007. Principal on the 2007 Bonds is paid serially and commences on May 1, 2008. The Bonds mature at various dates through May 1, 2020.

The Series 2007 Bonds are subject to redemption prior to maturity at the option of the District, in whole or in part at any time on or after May 1, 2017 at a redemption price as set forth in the Bond Indenture. In addition, the Bonds are subject to extraordinary mandatory redemption prior to maturity in the manner determined by the Bond Registrar if certain events occurred as outlined in the Bond Indenture.

The Bond Indenture established a debt service reserve requirement which was satisfied through the purchase of a surety bond and has certain other restrictions and requirements relating principally to the use of proceeds to redeem the Series 2007 Bonds and the procedures to be followed by the District on assessments to property owners. In addition, 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 is in compliance with the requirements of the Bond Indenture as of September 30, 2017.

Changes in long-term liability activity for the fiscal year ended September 30, 2017 were as follows:

Governmental activities Bonds payable:

Beginning
Balance	Additions	Reductions

Ending Balance

Due Within One Year

Series 2007

  $    1,505,000	$	-	$	350,000	$	1,155,000	$	370,000 
  $    1,505,000	$	-	$	350,000	$	1,155,000	$	370,000 

19

NOTE 7 – LONG-TERM LIABILITIES (Continued)

At September 30, 2017, the scheduled debt service requirements on the long-term debt were as follows:

Governmental Activities
Year ending
September 30:	
Principal	
Interest	
Total	
2018	$	370,000	$	51,975	$	421,975	
2019	385,000	35,325	420,325	
2020	 	400,000	18,000	418,000 
Total	 $	1,155,000	$	105,300	$   1,260,300 

NOTE 8 – 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 9 – 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.

20

FALCON TRACE COMMUNITY DEVELOPMENT DISTRICT ORANGE COUNTY, FLORIDA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL – GENERAL FUND FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017

	
Budgeted Amounts Original & Final	

Actual Amounts	Variance with Final Budget - Positive
(Negative)	
REVENUES
Assessments	
$	355,855	
$	364,925	
$	9,070	
Interest	-	88	88	
Miscellaneous revenue	 	1,000	2,625	1,625 
Total revenues	 	356,855	367,638	10,783 

EXPENDITURES
Current:
General government	113,726	97,164	16,562
Maintenance and operations	 	228,747	199,869	28,878 
Total expenditures	 	342,473	297,033	45,440 

Excess (deficiency) of revenues
over (under) expenditures	14,382	70,605	56,223

OTHER FINANCING SOURCES (USES)
Transfers in (out)	 	(14,382)	(14,382)	-	 Total other  financing sources (uses)	 	(14,382)	(14,382)	-	

Net change in fund balances	  $	-		56,223	$	56,223	

Fund balance - beginning		
 	130,945 		
Fund balance - ending		  $	187,168 		

See notes to required supplementary information

21

FALCON TRACE COMMUNITY DEVELOPMENT DISTRICT ORANGE COUNTY, FLORIDA
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).

The legal level of budgetary control, the level at which expenditures may not exceed appropriations, is in the aggregate. Any budget amendment that increases the aggregate budgeted appropriations must be approved by the Board of Supervisors. Actual general fund expenditures did not exceed appropriations  for the fiscal year ended September 30, 2017.

22

2700 North Military Trail ▪ Suite 350
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
Falcon Trace Community Development District Orange 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 and each major fund of Falcon Trace Community Development District, Orange County, Florida (“District”) as of and for the fiscal year ended September 30, 2017, and the related notes to the financial statements, which collectively comprise the District’s basic financial statements, and have issued our opinion thereon dated February 23, 2018.

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 may exist that have not been identified.
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.

23

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.

February 23, 2018

24

2700 North Military Trail ▪ Suite 350
Boca Raton, Florida  33431 (561) 994-9299 ▪ (800) 299-4728
Fax (561) 994-5823
www.graucpa.com

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
Falcon Trace Community Development District Orange County, Florida

We have examined Falcon Trace Community Development District, Orange County, Florida’s (“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, 2017. 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. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether the District complied, in all material respects, with the specified requirements referenced in Section 218.415, Florida Statutes. An examination involves performing procedures to obtain evidence about whether the District complied with the specified requirements. The nature, timing, and extent of the procedures selected depend on our judgment, including an assessment of the risks of material noncompliance, whether due to fraud or error. We  believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion. Our examination does not provide a legal determination on the District’s compliance with specified requirements.

In our opinion, the District complied, in all material respects, with the aforementioned requirements for the fiscal year ended September 30, 2017.

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 Falcon Trace Community Development District, Orange County, Florida and is not intended to be and should not be used by anyone other than these specified parties.

February 23, 2018

25

2700 North Military Trail ▪ Suite 350
Boca Raton, Florida  33431 (561) 994-9299 ▪ (800) 299-4728
Fax (561) 994-5823
www.graucpa.com

MANAGEMENT LETTER PURSUANT TO THE RULES OF THE AUDITOR GENERAL FOR THE STATE OF FLORIDA

To the Board of Supervisors
Falcon Trace Community Development District Orange County, Florida

Report on the Financial Statements

We have audited the accompanying basic financial statements of Falcon Trace Community Development District, Orange County, Florida ("District") as of and for the fiscal year ended September 30, 2017, and have issued our report thereon dated February 23, 2018.

Auditor’s 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 Florida Auditor General.

Other Reporting Requirements

We have issued our Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance with Government Auditing Standards; and Independent Auditor’s Report on an examination conducted in accordance with AICPA Professional Standards, AT-C Section 315, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports, which are dated February 23, 2018, 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 Falcon Trace Community Development District, Orange County, Florida and is not intended to be and should not be used by anyone other than these specified parties.

We wish to thank Falcon Trace Community Development District, Orange 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.

February 23, 2018

26

REPORT TO MANAGEMENT

CURRENT YEAR FINDINGS AND RECOMMENDATIONS

None

PRIOR YEAR FINDINGS AND RECOMMENDATIONS

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, 2016.

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, 2017.

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, 2017.

The name or official title and legal authority of the District are disclosed in the notes to the financial statements.

The financial report filed with the Florida Department of Financial Services pursuant to Section 218.32(1)(a), Florida Statutes agrees with the September 30, 2017 financial audit report.

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 and no deteriorating financial conditions were noted as of September 30, 2017. 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.

27

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2018

Falcon Trace
Community Development District
Check Register Summary
January 04, 2018 to March 13, 2018

Fund	Date	CheckNo.'s	Amount	
General Fund	1/4/18	3663-3665	$	470.50	
	1/10/18	3666	$	6,006.16	
	1/11/18	3667	$	2,255.60	
	1/16/18	3668	$	18,761.62	
	1/25/18	3669	$	130.80	
	1/26/18	3670	$	2,100.66	
	2/2/18	3671-3675	$	725.35	
	2/6/18	3676	$	6,054.55	
	2/16/18	3677-3679	$	3,271.70	
	2/21/18	3680	$	44,413.89	
	3/2/18	3681-3685	$	6,546.45	
	3/5/18	3686	$	6,358.26	
	3/7/18	3687	$	2,116.40	
	3/8/18	3688-3689	$	3,850.00	
			$	103,061.94	
Payroll	Tanuacy			
Carole Miller	50284	$	184.70	
Felix Kutlik	50285	$	183.87	
Kathy Stark	50286	$	184.70	
Sara Hurst	50287	$	184.70	
Susan Baron	50288	$	184.70	
		$	922.67	

 	$		103,984.61 I

***

AP300R
CHECK NOS. 003663-003689

YEAR-TO-DATE ACCOUNTS PAYABLE PREPAID/COMPUTER CHECK REGISTER	RUN	3/13/18 FALCON TRACE COD -GENERAL FUND
BANK A FALCON TRACE COD

PAGE	1

CHECK	VEND#	....• INVOICE.••.•  ...EXPENSED  TO...		VENDOR  NAME DATE			DATE	INVOICE	YRMO	DPT ACCT# SUB	SUBCLASS
1/04/18  00079	12/20/17  9351	201712 320-53800-47000

STATUS
*

AMOUNT

300.00

•..•CHECK.....
AMOUNT	#

- - - - - - - - - - - -

M-TH-LY-

L-AK-E-MA-IN-T---DE-C1-7-  -AQ-UATIC  WEED  MANAGEMENT,   INC.

-  -  -  -  -  -  -  -  -  -  -  -30-0.-00-

003663

1/04/18  00015	12/20/17  97537	201711 310-51300-31500

*	140.50

- - - - - - - -

- - - - - - - - - - - -

M-ON-.PROPLEGIS/RULES

P-RO-CO-  -HO-PPING   GREEN   &   SAMS

- - -

- - - - - - - - -

140.50 003664

*

1/04/18  00022	12/18/17  315296	201801 320-53800-47400	30.00

TANK RENTAL FEE - JAN18

SPIES POOL, LLC

- - - - - - - - - -

30.00 003665

1/10/18 00027

1/02/18  443	201801 310-51300-34000
MANAGEMENT FEES JAN18
1/02/18  443	201801 310-51300-35100
INFO TECHNOLOGY JAN18
1/02/18  443	201801 310-51300-31400
DISSEMINATION FEES JAN18 1/02/18   443	201801    310-51300-51000
OFFICE SUPPLIES
1/02/18  443	201801 310-51300-42000
POSTAGE
1/02/18  443	201801 310-51300-42500

*	4,176.00
*	120.83
*	83.33
*	.15
*	2.35
*	3.00

COPIES 1/02/18 443
EMAIL 1/02/18 444

201801  310-51300-49100

- - - - - - - -

201801  320-53800-12000

*	55.50
*	1,565.00

- - - -

F-IE-LD-

M-AN-AG-EM-ENT  JAN18	GOVERNMENTAL  MANAGEMENT  SERVICES

-  -  -  -  -  -  -  -  -  -  -6,-00-6.-16-  003666

1/11/18 00071

1/16/18 00054

1/02/18  723461	201801 320-53800-47500
MTHLY  POOL LANDSCP JAN18	REW LANDSCAPE CORP
1/12/18 01122018 201801 300-20700-10000

*	2,255.60
-  -  -  -  -  -  -  -  -  -  -2,-25-5.-60-
*	18,761.62

003667

1/25/18 00090

FY18 DEBT ASSESSMENTS	FALCON TRACE COD C/0 US BANK 1/15/18   8443225	201801 320-53800-34500
PLATINUM MONITORING PCKGE

- - -

1/15/18  8443225	201801 300-13100-10100

-  -  -  -  -  -  -  -  -   -
*	49.95
*	80.85

1-8,-76-1.-62-

003668

1/26/18 00027

-  -  -  -  -SEC-U-RIT-Y-MONITORI-NG--F-E-B18-  -SA-FE  TOUCH  SECURITY  SYSTEMS 1/25/18   445	201801 320-53800-12200
POOL  ATTENDANTS - JAN18	GOVERNMENTAL MANAGEMENT SERVICES
FALC FALCON TRACE	BPEREGRINO

-  -  -  -  -  -  -  -  -
*	2,100.66

-  -  -13-0.-80- 003669
2,100.66 003670

***

AP300R
CHECK NOS. 003663-003689

YEAR-TO-DATEFALCCONUNTRSACPEAYACBDLDE-GPERNEEPRAAILD/FCUONMDPUTER  CHECK  REGISTER	RUN	3/13/18 BANK A FALCON TRACE CDD

PAGE	2

CHECK	VEND#	.....INVOICE•.•..  .•.EXPENSED  TO...		VENDOR  NAME DATE			DATE	INVOICE	YRMO	DPT ACCT# SUB	SUBCLASS

#

2/02/18  00079	1/31/18  94M5TH2LY  LA2KE01M8A0I1N3T20--5J3A8N0108-47000

STATUS
*

AMOUNT	A•M.O•U.CNHTECK...•. 300.00

-  -  -  -  -  -  -  -  -  -  -  -  -  -  -  -  -  -AQ-UATIC  WEED  MANAGEMENT,   INC.
2/02/18  00089	1/24/18  2B1A3C9K1FLOW2T0E1S8T0S1  320-53800-47600
AARON'S BACKFLOW SERVICES, INC.
2/02/18  00071	1/29/18 723640	201801 320-53800-47500
IRRIGATION  RPRS  1/22/18	REW LANDSCAPE CORP

-  -  -  -  -  -  -  -  -  -   -  -30-0.-00-

*

150.00

*

-  -  -  -  -  -  -  -  -  -  -  -15-0.-00-
135.85
-  -  -  -  -  -  -  -  -  -  -  -13-5.-85-

003671

003672

003673

- -

- - - - -

2/02/18 00015	1/25/18  98205	201712 310-51300-31500

*	109.50

- - - -

M-ON-IT-OR-

L-EG-IS-LA-TION

DEC17	HOPPING GREEN & SAMS

*	-  -  -   -  -  -  -  -  -  -  -  -10-9.-50-

003674

2/02/18 00022

1/18/18 316308	201802 320-53800-47400

30.00

- - - -

T-AN-K-RE-NT-AL-

F-EE-

-  FEB18-  -  -SP-IES  POOL,  LLC

- - - - - - - - - -

30.00 003675

2/06/18 00027

2/01/18 446

-  - -
201802 310-51300-34000

*	4,176.00

MANAGEMENT FEES FEB18
2/01/18  446	201802 310-51300-35100
INFO TECHNOLOGY FEB18
2/01/18  44D6ISSEMIN2AT0I1O8N02FE3E10F-E5B113800-31400
2/01/18  446	201802 310-51300-51000
OFFICE SUPPLIES
2/01/18  446	201802 310-51300-42000

*	120.83
*	83.33
*	19.15
*	30.69

POSTAGE 2/01/18 446
2/01/18  44C7OPIES

201802  310-51300-42500
201802  320-53800-12000

*	59.55
*	1,565.00

- - - -

F-IE-LD-

M-AN-AG-EM-EN-T-FE-B1-8-  -  -GO-VERNMENTAL  MANAGEMENT  SERVICES

-  -  -  -  -  -  -  -  -  -  -6,-05-4.-55-

003676

2/16/18 00019

2/06/18 3494392	201801 310-51300-48000

*	207.50

- - - -

N-OT-IC-E-OF-

M-EE-TI-NG-

1-/17/18	ORLANDO  SENTINEL

-  -  -  -  -  -  -  -  -  -  -  -20-7.-50-

003677

2/16/18 00071

2/01/18 723659

- - - - -
201802 320-53800-47500

*	2,255.60

MTHLY  POOL LANDSCAP FEB18	REW LANDSCAPE CORP 2/16/18  00022	12/26/17  3155S7U4F8URIC2/021B7I1C2AR3B2/0S-T5K3S8/0YE0L-47400
FALC FALCON TRACE	BPEREGRINO

-  -  -  -  -  -  -  -  -  -  -2,-25-5.-60-

*

569.60

003678

A*P*3*00R

YEAR-TO-DATE ACCOUNTS PAYABLE PREPAID/COMPUTER CHECK REGISTER	RUN	3/13/18

PAGE	3

VENDOR NAME

CHECK NOS. 003663-003689

BFAALNCKOAN  FTARLACOENCDTRDAC-EGECNDEDRAL  FUND

CHECK	VEND#	•••••INVOICE••••• •••EXPENSED TO...
DATE	DATE	INVOICE	YRMO	DPT ACCT# SUB	SUBCLASS
12/28/17  31145806B9ULK20B1L7E1AC2H320-53800-47400

STATUS
*

AMOUNT
239.00

•AM••O•UCNHTECK•.•#••

2/21/18 00054

SPIES POOL, LLC
2/15/18  0F2Y115820D1E8BT20A1S8M0N2T3-00-DS207200-710000

-  -  -  -  -  -  -  -  -  -  -  -80-8.-60-
*	44, 413.89

003679

3/02/18 00079

-  -  -  -  -  -  -  -  -  -  -  -  -  -  -  -  -  -FA-LCON  TRACE  CDD  C/0  US  BANK
2/28/18  9530	201802 320-53800-47000

-  -  -  -  -  -  -  -  -  -
*	300.00

4-4,-41-3.-89-

003680

- - - -

M-TH-LY-

L-AK-E-MA-IN-T---FE-B1-8-  -AQ-UATIC  WEED  MANAGEMENT,   INC.

-  -  -  -  -  -  -  -  -  -  -  -30-0.-00-

003681

3/02/18 00015

2/21/18 98635	201801 310-51300-31500
MONTHLY MEETING JAN18

- - - - - - -

2/21/18  98636	201801 310-51300-31500

*	1,515.00
*	311.00

- - - -

S-WI-M-SC-HO-OL-

L-IC-/MON  LEGIS	HOPPING  GREEN   &  SAMS

*	-  -  -  -  -  -  -  -  -  -  -1,-82-6.-00- 003682

3/02/18 00022

2/18/18 317390	201803  320-53800-47400
TANK RENTAL FEE - MAR18 2/19/18  3517S3U8L0FURI2C01A8C0I2D320-53800-47400
2/21/18 317596	201802 320-53800-47400
CYAN/STICKS/BICARB/YELLOW

- - - - - - - - - - - - -

2/21/18 317617	201802 320-53800-47400

30.00
*	274.75
*	483.80
*	503.00

3/02/18 00090

- - - -

3-00-

BULK BLEACH	SPIES POOL, LLC

-  -  -  -  -  -  -  -  -   -
*	83.90

1, 291.55 003683

2/12/18  84S6E6CU3R03ITY2M01O8N0I3TO3R2I0N-G53M8AR0108-34500

- - - - - - - - - - - - - - - - - - - - - - - - - -

SAFE TOUCH SECURITY SYSTEMS

*	- - - - - - - - - -

83.90 003684

MTHLY POOL SERVICE-NOV17

3/02/18  00094	11/25/17  70159	201711 320-53800-47400
12/25/17 70160	201712  320-53800-47400
MTHLY POOL SERVICE-DEC17 1/25/18  70M1T6H1LY  POO2018S0E1RV3I2C0E-5JA3N8I0S0-47400
-  -  -  -  -  -  -  -  -  -  -  -  -  -  -  -  -  -  -  -  -  -  -  -  -  -  -TH-REE  GUYS 3/05/18   00027	3/01/18   449	201803 310-51300-34000
MANAGEMENT FEES MAR18
3/01/18  449	201803 310-51300-35100
INFO TECHNOLOGY MAR18
3/01/18  449	201803 310-51300-31400
DISSEMINATION FEE MAR18

POOL SERVICE & REPAIR

1, 015.00
*	1, 015.00
*	1, 015.00
-  -  -  -  -  -  -  -  -  -  -3,-04-5.-00-
*	4,176.00
*	120.83
*	83.33

003685

FALC FALCON TRACE	BPEREGRINO

***

AP300R
CHECK NOS. 003663-003689

YEAR-TO-DATE ACCOUNTS PAYABLE PREPAID/COMPUTER CHECK REGISTER	RUN	3/13/18 FBANCKONA  FTARLACOENCTDDRAC-EGENCEDDRAL  FUND

PAGE	4

CHECK	VEND#	•••••INVOICE .•.••  •.•EXPENSED  TO...	VENDOR  NAME	STATUS

AMOUNT

••••CHECK•••••

DATE	DATE	INVOICE	YRMO	DPT ACCT# SUB	SUBCLASS

*	AMOUNT	#

3/01/18
3/01/18
3/01/18

449
44O9FFICE
4P4O9STAGE
COPIES

201803 310-51300-51000
SU2P0P1L8I0E3S310-51300-42000 201803 310-51300-42500

.24
*	3.76
*	.15

FIELD MANAGEMENT MAR18

*

3/01/18
3/01/18

450	201803 320-53800-12000
450A	201802  320-53800-34500	*
SAFETOUCH ORLANDO	GOVERNMENTAL MANAGEMENT SERVICES

1, 565.00
408.95

6, 358.26 003686

3/07/18 00027

2/27/18  448	201802 320-53800-12200

*	2, 116.40

- - - -

P-OO-L-AT-TE-ND-AN-TS--F-EB-18-  -  -  -GO-VERNMENTAL  MANAGEMENT  SERVICES

2,116.40 003687

3/08/18 00078

3/07/18  0R3E0N72W0L18PRE2V018MN0T3

D3A2T0A-5P3R8I0N0-T47600

*	750.00

3/08/18 00012

-  -  -  -  -  -  -  -   -  -  -  -  -  -  -  -  -  -DA-TA  EQUIPMENT,   INC. 3/01/18   100160	201802 310-51300-32200

*

FY17 AUDIT-FINAL PAYMENT	GRAU AND ASSOCIATES
TOTAL FOR BANK A TOTAL FOR REGISTER

3,100.00

103,061.94
103, 061.94

750.00 003688

3,100.00 003689

FALC FALCON TRACE	BPEREGRINO

•	•	•	•	•	•

Falcon Trace
Community Development District

Unaudited Financial Reporting February 28, 2018

•	•	•	•	•

Governmental ManagementServices

Table of Contents

1	 	Balance Sheet	

2	
 	General Fund	

3	
 	Debt Service Fund	

4	
 	Capital Projects Fund	

5-6	
 	Month to Month	

7	
 	Long-Term Debt	

8	
 	Assessment Receipt Schedule	

FALCON TRACE
COMMUNITY DEVELOPMENT DISTRICT
COMBINED BALANCE SHEET
February 28, 2018

Governmental Fund	Totals
(memorandum only)
Assets	General	Debt Service	Capital Projects	2018

Cash - Wells Fargo Cash - SunTrust Investments
Custody Account Series 2007
Revenue Account Redemption Account Cost of Issuance
Due from General Fund Prepaid Expense
TotaI Assets

Liabilities

Accounts Payable Due to Debt Service

Fund Equity
Fund Balances
Unassigned
Restricted for Debt Service Restricted for Capital Projects

!Total Liabilities and Fund Equity

$350,956

$57,686

$408,642

$12,058

$396,584

$408,642

$585,806
$2,091

$587,897

$587,897

$587,897

$250,132

$26,419

$276,550

$276,550

$276,550

$350,956
$250,132
$57,686
$585,806
$2,091
$26,419
$0
$0

$1,273,089

$12,058
$0

$396,584
$587,897
$276,550

$1,273,0891

FALCON TRACE
COMMUNITY DEVELOPMENT DISTRICT
GENERAL FUND
Statement of Revenues and Expenditures For Period Ending February 28, 2018
General Fund	Prorated Budget	Actual
Budget	Thru 2/28/18	Thru 2/28/18	Variance
Revenues:
Maintenance Assessments	$355,855	$323,747	$323,747	$0
Miscellaneous Income	$1,000	$417
Interest		$0		$0		$48		$48 Total Revenues	$356,855	$324,163	$324,400	$2371 Expenditures:
Administrative:

$153

Supervisors Fees	$8,000	$3,333	$2,000	$1,333
FICA Expense	$612	$255

Engineer	$5,000	$2,083
Dissemination	$1,000	$417	$417

$2,083

Assessment Roll	$5,000	$5,000	$S,000	$0
Arbitrage Rebate	$600	$0	$0	$0
Attorney Fees	$15,000	$6,2S0	$3,762	$2,488
Annual Audit	$3,400	$3,100	$3,100	$0
Trustee Fees	$4,400	$0	$0	$0
Management Fees	$50,112	$20,880	$20,880	$0
Information Technology	$1,450	$604	$604	$0

Telephone	$100

$58

Postage	$1,000	$417

$42
$358

Printing and Binding	$1,500	$625	$113	$512
Insurance	$11,200	$11,200	$10,654	$546

$385
$41

Legal Advertising	$2,500	$1,042	$208	$834
Contingency	$1,200	$500	$115
Property Appraiser	$1,000	$1,000	$902	$98
Office Supplies	$800	$333
Dues, Licenses, Subscriptions		$175		$175		$175	$0 Total Administrative	$114,049	$57,256	$48,452
Maintenance:
Field Management	$18,780	$7,825	$7,825	$0
Property Insurance	$6,870	$6,870	$6,245	$625

$446

Pool Staff Payroll	$76,000	$31,667	$14,253	$17,414
Security	$1,070	$863	($417)
Telephone Expense	$2,000	$833	$753	$80
Electric	$18,900	$7,875	$6,601	$1,274
Irrigation/Water	$13,500	$5,625	$3,406	$2,219
Lake Maintenance	$8,600	$3,583	$2,100	$1,483
Pest Control	$650	$271	$0
Pool Maintenance	$32,000	$13,333	$8,789	$4,545
Grounds Maintenance	$33,000	$13,750	$11,721	$2,029
General Facility Maintenance	$10,000	$4,167	$2,027	$2,140
Refuse Service	$4,080	$1,700	$1,598	$102
Field Contingency	$5,000	$2,083	$350	$1,733
Transfer Out			$12,356		$0		$0		$0 Total Maintenance	 	$242,806	$100,028	$66,532	$33,497 I
Total Expenditures	 	$356,855	$157,284		$114,984	$42,300 I Excess Revenues (Expenditures)	 		$0			$209,416		1

Fund Balance - Beginning	 	

$187,168	···-·····1

Fund Balance - Ending	$0	$396,584	1
2

FALCON TRACE
COMMUNITY DEVELOPMENT DISTRICT
DEBT SERVICE 2007
Statement of Revenues & Expenditures For Period Ending February 28, 2018

 	Budget	Thru 2/28/18	Thru 2/28/18	Variance		
Revenues:					
Assessments - On Roll	$413,660	$376,336	$376,336	$0	
Interest	$300	$125	$231	$106	
Total Revenues	 	$413,960	$376,461	$376,567	$106 I	

Ex enditures:			
Interest Expense 11/01	$25,988	$25,988	
Interest Expense 05/01	$25,988	$0	
Total Expenditures	 	$421,975	$25,988	$25,988	so I	
Other Sources (Uses)		
Transfer In (Out)	$0	$0	$22	$22	
Excess Revenues (Expenditures)	 	($8,015)	$350,601		
Fund Balance • Beginning	 	$237,261	$237,296		
Fund Balance - Ending	 	$229,247	$587,897		

Adopted

Prorated Budget

Actual

$0

$0

Principal Expense 05/01	$370,000	$0

3

FALCON TRACE
COMMUNITY DEVELOPMENT DISTRICT
CAPITAL PROJECTS FUND
Statement of Revenues & Expenditures For Period Ending February 28, 2018

Adopted	Prorated	Actual

$63

($22))

 	Budget	Thru 2/28/18	Thru 2/28/18	Variance	

Revenues:		
Transfer In	$12,356	$0	$0	$0	
Interest	$150	$74	$11	
Total Revenues	 	$12,506		s11 I	
Expendill r es:		
Pool Furniture	$10,000	$4,167	$0	$4,167	
Building Renovations	$25,000	$10,417	$0	$10,417	
Total Expendil.lr es	 	$35,000	$14,583	$0	$14,583 )	
Oft er Sou rces Uses		
Transfer In (Out)	$0	($22)	($22)	
Total Oft er	 	$0	$0	($22)	
Excess Revenues (Expendillres)	 	($22,494)	$52		
Fund Balance - Beginning	 	$261,504	$276,499	 		
Fund Balance - Ending	 	$239,010	$276,550		

4

FALCON TRACE
COMMUNITY DEVELOPMENT DISTRICT
Oct	Nov	Dec	Jan	Feb	March	April	May	June	July	Aug	Sept	Total

Revenues:

Maintenance Assessments	$0	$32,801	$236,599	$16,140	$38,207

$0	$0	$0	$0	$0	$323,747

Miscellaneous Income	$340	$0	$50	$215	$0	$0	$0	$0	$0	$0	$0	$0	$605

Interest	$9	$10

$10	$10	$0	$0	$0	$0

$0	$0	$48

Total Revenues	I	$349	$32,811	$23��  $16,365	$38,217	$0
Ex1!_endlt11res:

Administrative

__$0	$0	$0	$0	$0	$0	sm,!oo1

Supervisors Fees	$1,000	$0	$0	$1,000	$0	$0	$0	$0	$0	$0	$0	$2,000

FICA Expense

$0	$0	$0	$0	$0	$0	$0	$0	$0	$153

Engineer	$0	$0

$0	$0	$0	$0	$0	$0	$0

$0	$0

Dissemination Agreement

$0	$0

$0	$0	$0

$83

Assessment Roll	$5,000	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0

$5,000

$417

Arbitrage Rebate	$0	$0	$0

$0	$0	$0	$0	$0	$0	$0

Attorney	$1,686	$141	$110	$1,826	$0

$Q	$0	$0

$0	$3,762

Annual Audit	$0

$0	$0	$3,100	$0	$0

$0	$0	$0	$3,100

Trustee Fees

$0	$0	$0

$0	$0

$0	$0	$0

Management Fees	$4,176	$4,176	$4,176	$4,176	$4,176	$0	$0	$0	$0	$0	$0

$20,880

Information Technology	$121	$121	$121	$121	$121	$0	$0	$0

$0	$0	$0

Telephone	$0	$0	$0

$17

Postage	$11	$11

$0	$0	$0	$0	$0	$0	$0	$0	$0
$2	$0	so	$0	$0	$0	$0	$0	$58

Printing and Binding

$34	$0	$3	$60	$0

$0	$0	$0	$0	$0	$113

Insurance	$10,654	$0	$0	$0	$0	$0	$0	$0	$0	$0

$0	$10,654

Legal Advertising	$0	$0	$0	$208	$0	$0

$0	$0	$0

$208

$78

Contingency	$48	$101	$46	$112
Property Taxes	$0	$0	$0	$0

$0	$0	$0	$0	$0	$0	$0

$385

$0	$0	$0	$0	$0	$0	$0	$0

Property Appraiser	$902	$0	so	$0	$0	$0	$0	$0	$0	$0	$0	$0	$902

Office Supplies	$1	$21	$0	$0

$0	$0	$0	$0	$0	$0	$0

$4,539

Dues, Licenses, Subscriptions	$175	$0	$0

$0	$0	$0	$0

$0	$0	$0

Toto/ Administrative	I	$23,950	$4,688

$175

$7,608	$7,667	$0	$0	$0	$0	$0	$0	$0

5

FALCON TRACE
COMMUNITY DEVELOPMENT DISTRICT

Oct 	Nov		Dec	Jan	Feb	 	March		April	 	May		June	July	Aug	Sept	Total	
Maintenance														
Field Management	$1,565	$1,565	$1,565	$1,565	$1,565	$0	$0	$0	$0	$0		$0	$7,825	
Property Insurance	$6,245	$0	$0	$0	$0	$0		$0	$0	$0	$0	$0	$6,245	
Pool Staff Payroll	$6,339	$3,697	$0	$2,101	$2,116	$0		$0		$0	$0	$0	$14,253	
Security	$81	$81	$81	$131	$0	$0	$0	$0	$0	$863	
Telephone Expense	$148		$152	$152	$152	$0	$0		$0	$0	$0	$0	$753	
Electric	$1,422	$1,307	$1,241	$1,205	$1,427	$0	$0	$0	$0	$0	$6,601	
Irrigation/Water	$688	$588	$506	$1,180	$444	$0			$0	$0	$0		$3,406	

Lake Maintenance	$900	$300	$300	$300	$300	$0	$0	$0	$0	$0	$0	$2,100
Pest Control	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0
Pool Maintenance	$2,721	$1,878	$1,854	$1,045	$1,292	$0	$0	$0	$0	$0	$0	$8,789

$370

Grounds Maintenance	$4,818	$2,256	$2,391	$2,256	$0	$0	$0	$0	$0	$0	$0	$11,721

$341

General Facility Maintenance	$263	$1,085	$160	$150

$0	$0	so

so	$0	$0	$2,027

Refuse Service	S232	$0	$0	$0	$0	$0	$0	$0	$1,598

Reid Contingency	$0	$0

$0	$0	$0	$0

$0	$0	$350

Transfer Out

$0	$0	$0

$0	$0	$0	$0	$0	$0	$0	$0

Total Maintenance	I	$25,423	$10,988	$8,805	$10,561	$10,755	$0

$0	$0	$0	$0	$0

$209,416 1

Total Expenditures	I		$49.372	$15,677		$13,344	$18,169	$18,422	$0	$0	$0	$0	$0	$0	$0 Excess Revenues (Expenditures)	I	($49,023)	S17,134	$223,314	($1,804)	$19,795	$0	$0	$0	$0	$0	$0	so

6

FALCON TRACE
COMMUNI TY DEVELOPMENT DISTRICT
LONG TERM  DEBT REPORT

SERIES 2007, SPECIAL ASSESSMENT REFUNDING BONDS

MATURITY DATE:
RESERVE FUND DEFINITION RESERVE FUND REQUIREMENT RESERVE FUND BALANCE

5/1/2020
MAXIMUM ANNUAL DEBT SERVICE
COVERED BY FINANCIAL GUARANTY INSURANCE POLICY
$0

BONDS OUTSTANDING - 9/30/13	$2,475,000	
LESS: PRINCIPAL PAYMENT 5/1/14	($310,000)	
LESS: PRINCIPAL PAYMENT 5/1/15	($325,000)	
LESS: PRINCIPAL PAYMENT 5/1/16	($335,000)	
LESS: PRINCIPAL PAYMENT 5/1/17	($350,000)	
CURRENT BONDS OUTSTANDING	$1,155,000	

7

FALCON TRACE
COMMUNITY DEVELOPMENT DISTRICT SPECIAL ASSESSMENT RECEIPTS · FY2018 TAX COLLECTOR
Gross Assessments $	818,633  $	378,569  $	440,064
Net Assessments $	769,515  $	355,855  $	413,660
2007
Date		Gross Assessments  Discounts/	Commissions	Interest	Net Amount	General Fund	Debt Svc Fund		Total Received	Dist.#		Received	Penalties 		Paid	Income		Received		46.24%		 53.76%	100%

11 /3/16	1	$	7,682.66	$	365.05	$	$	$	7,31 7.61	$	3,383.96	$	3,933.65	$	7,317.61	
11 /9/17	2	$	9,995.26	$	399.85	$	$	$	9,595.41	$	4,437.31	$	5,158.10 	$	9,595.41	
11 /20/1 7	3	$	56,267.66	$ 2,250.93	$	$	$ 54,016.73	$	24,979.53	$ 29,037.20	$ 54,016.73	
1 2/11/17	4	$	169,919.42    $   6,797.45    $	$	$  163,121 .97   $	75,434.24     $    87,687.73    $  163,121 .97
1 2/18/17	5	$	20,899.18   $	836.05    $	$	53.60    $    20,11 6.73    $	9,302.79   $    10,81 3.94    $    20,11 6.73
12/26/1 7	6	$	342,075.86      $ 13,684.39    $	$	$  328,391.47     $     151 ,861.58    $  1 76,529.89     $  328,391 .47
1/1 6/18	7	$	36,346.40    $   1 ,444.91    $	$	$    34,901.49   $	16,139.87   $    18,761 .62    $    34,901 .49
2/20/1 8	8	$	86,561 .41    $  3,405.87   $	534.16   $	$    82,621 .38   $	38,207.49   $   44,413.89   $    82,621 .38
$	$	$	$	$	$	$	$
$	$	$	$	$	$	$	$
$	$	$	$	$	$	$	$
$	$	$	$	$	$	$	$
$	$	$	$	$	$	$	$
$	$	$	$	$	$	$	$
$	$	$	$
Totals	$	729,747.85     $ 29,184.50    $	534.16    $	53.60 $ 700,082.79 $ 323,746.77 $ 376,336.02 $ 700,082.79

8