Florida Green Finance Authority ANNUAL FINANCIAL REPORT
September 30, 2019

Florida Green Finance Authority ANNUAL FINANCIAL REPORT
September 30, 2019

 TABLE OF CONTENTS

Page
 Number
REPORT OF INDEPENDENT AUDITORS	1-2
MANAGEMENT’S DISCUSSION AND ANALYSIS	3-7
BASIC FINANCIAL STATEMENTS
Government-wide Financial Statements
Statement of Net Position	8
Statement of Activities	9
Fund Financial Statements
Balance Sheet – Governmental Funds	10
Reconciliation of Total Governmental Fund Balances
to Net Position of Governmental Activities	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
Statement of Revenues, Expenditures and Changes in Fund
Balances – Budget and Actual – General Fund	14
Notes to Financial Statements	15-28
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	29-30
MANAGEMENT LETTER	31-32
INDEPENDENT ACCOUNTANT’S REPORT/COMPLIANCE WITH
SECTION 218.415, FLORIDA STATUTES	33

REPORT OF INDEPENDENT AUDITORS

To the Board of Directors Florida Green Finance Authority Florida

Report on the Financial Statements

We have audited the accompanying financial statements of Florida Green Finance Authority as of and for the year ended September 30, 2019, and the related notes to financial statements, which collectively comprise the Authority’s basic financial statements as listed in the table of contents.

Management’s Responsibility for the Financial Statements

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

Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit.  We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
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To the Board of Directors Florida Green Finance Authority

Opinion

In our opinion, the financial statements referred to previously present fairly, in all material respects, the respective financial position of the governmental activities and each major fund of the Authority, as of September 30, 2019, and the respective changes in financial position and the budgetary comparison for the General Fund for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Other Matters

Required Supplementary Information

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

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued a report dated June 30, 2020 on our consideration of the Authority’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations and contracts.

The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on 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 Florida Green Finance Authority’s internal control over financial reporting and compliance.

Berger, Toombs, Elam, Gaines & Frank Certified Public Accountants PL
Fort Pierce, Florida June 30, 2020
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Management’s discussion and analysis of Florida Green Finance Authority (the “Authority”) financial performance provides an objective and easily readable analysis of the Authority’s financial activities. The analysis provides summary financial information for the Authority and should be read in conjunction with the Authority’s financial statements.

OVERVIEW OF THE FINANCIAL STATEMENTS

The Authority’s basic financial statements comprise three components; 1) Government-wide financial statements, 2) Fund financial statements, and 3) Notes to financial statements. The Government-wide financial statements present an overall picture of the Authority’s financial position and results of operations. The Fund financial statements present financial information for the Authority’s major funds. The Notes to financial statements provide additional information concerning the Authority’s finances.

The Government-wide financial statements are the statement of net position and the statement of activities. These statements use accounting methods similar to those used by private-sector companies. Emphasis is placed on the net position of governmental activities  and the change in net position. Governmental activities are primarily supported by special assessments.

The statement of net position presents information on all assets and liabilities of the Authority, with the difference between assets and liabilities reported as net position. Net position is reported in three categories; net investment in capital assets, restricted, and unrestricted. Assets, liabilities, and net position are reported for all Governmental activities.

The statement of activities presents information on all revenues and expenses of the Authority and the change in net position. Expenses are reported by major function and program revenues relating to those functions are reported, providing the net cost of all functions provided by the Authority. To assist in understanding the Authority’s operations, expenses have been reported as governmental activities. Governmental activities financed by the Authority include general government, physical environment and debt service.

Fund financial statements present financial information for governmental funds. These statements provide financial information for the major funds of the Authority. Governmental  fund financial statements provide information on the current assets and liabilities of the funds, changes in current financial resources (revenues and expenditures), and current available resources.

OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)

Fund financial statements include a balance sheet and a statement of revenues, expenditures and changes in fund balances for all governmental funds. A statement of revenues, expenditures, and changes in fund balances – budget and actual is provided for the Authority’s General Fund. Fund financial statements provide more detailed information about the Authority’s activities. Individual funds are established by the Authority to track revenues that are restricted to certain uses or to comply with legal requirements.

The government-wide financial statement is designed to provide the reader with a broad overview of the Authority’s finances, in a manner similar to a private sector business. In the government-wide statement of net position, the governmental activities column is presented on a consolidated basis and is reported on a full-accrual economic resource basis, which recognizes all non-current assets and receivables as well as all non-current debt and obligations. The effect of interfund activity has been eliminated from the government-wide financial statements. In contrast, the governmental fund financial statements are grouped into funds to account for and to maintain control over resources that have been segregated for specific activities or objectives. The fund financial statements are presented using the current financial resources measurement focus and the modified accrual basis where as revenues are recorded when collected in the current period or within 60 days of year-end and expenditures are recorded when a liability is incurred. The difference between the two statements arises primarily from the long-term economic focus of the Statement of Activities versus the current financial resources focus of the governmental funds. A reconciliation of the government-wide and the fund financial statement is provided to illustrate these differences.

Notes to financial statements provide additional detail concerning the financial activities and financial balances of the Authority. Additional information about the accounting practices of the Authority, investments of the Authority, capital assets and long-term debt are some of the items included in the notes to financial statements.

 Financial Highlights

The following are the highlights of financial activity for the year ended September 30, 2019.

The Authority’s total assets exceeded total liabilities by $413,043 (net position). Unrestricted net position for Governmental Activities was $119,605. Restricted net position was $293,438.

Governmental activities revenues totaled $3,989,596 while governmental activities expenses totaled $3,836,376.

OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)

 Financial Analysis of the Authority

The following schedule provides a summary of the assets, liabilities and net position of the Authority and is presented by category for comparison purposes.

Net Position	

Current assets	

$	Governmental Activities 2019		2018

10,362,967	$	7,574,557	
Restricted assets	 		551,519 	 		189,615 	
Total Assets	10,914,486		7,764,172	

Current liabilities	

1,093,136		
402,220	
Non-current liabilities	 		9,408,307 	 		7,102,129 	
Total Liabilities	10,501,443		7,504,349	

Net position - restricted		

293,438		

21,720	
Net position - unrestricted	 		119,605 	 		238,103 	
Total Net Position	 	$		413,043 	 $		259,823 	

The increase in current assets is mainly related to an increase in assessments receivable.

The increase in total liabilities is the result of the issuance of additional long-term debt in the current year.

OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)

 Financial Analysis of the Authority (Continued)

The following schedule provides a summary of the changes in net position of the Authority and is presented by category for comparison purposes.

Change in Net Position	
	   	Governmen 2019	tal Activities	 2018	
Program Revenues			
Charges for services	$	3,979,703	$	5,818,754	
General Revenues			
Investment earnings	675	312	
Miscellaneous	 			9,218 	 			9,422 	
Total Revenues	 			3,989,596 	 			5,828,488 	
Expenses			
General government	516,430	179,684	
Physical environment	2,325,603	4,958,970	
Interest and other charges	994,343	515,645	
Total Expenses	3,836,376	
5,654,299	

Change in Net Position	
153,220	

174,189	
Net Position - Beginning of Year	 			259,823 	 			85,634 	
Net Position - End of Year	 	$	413,043 	 $	259,823 	

The decrease in charges for services is mostly attributable to reduced assessments levied for clean energy projects in the current year.

The increase in general government is related to the program reinvestment expenditure in the current year.

The decrease in physical environment is related to funding of fewer qualifying energy improvements in the current year.

OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)

 General Fund Budgetary Highlights

The budget exceeded actual expenditures for the year primarily because actual expenditures for miscellaneous expenditures and legal fees were less than anticipated.

The budget was amended primarily for the program reinvestment expenditure not anticipated in the original budget.

 Debt Management

Governmental Activities debt includes the following:

In June 2015, the Authority issued $2,225,700 Series 2015-1 (BrandsMart) Special Assessment Revenue Bonds. The Bonds were issued to finance certain allowable energy improvements. The balance outstanding at September 30, 2019 was $1,687,120.

In April 2014, the Authority issued a $49,556 PACE Financing Agreement to finance solar improvements. The initial funding was $5,020. The balance outstanding at September 30, 2019 was $4,551.

In February 2018, the Authority issued $2,595,469 Series 2018 (Dadeland Mall) Special Assessment Revenue Bonds. The Bonds were issued to finance certain qualifying energy improvements. The balance outstanding at September 30, 2019 was $2,595,469.

In June 2018, the Authority issued $2,814,989 Series 2018 (Orlando International Premium Outlets) Special Assessment Revenue Bonds. In November 2018, the Authority amended and restated Special Assessment Revenue Bonds, Series 2018 (Orlando International Premium Outlets Project) for additional funding of $2,747,301. The amended bond is represented as Special Assessment Revenue Bonds, Series 2018A (Orlando International Premium Outlets Project) for a total issuance amount of
$5,562,290. The Bonds were issued to finance certain qualifying energy improvements. The balance outstanding at September 30, 2019 was $5,562,290.

 Economic Factors and Next Year’s Budget

The Authority anticipates continuing to work with the third-party administrator to issue additional bonds and loans for Enhanced Energy Products.

 Request for Information

The financial report is designed to provide a general overview of Florida Green Finance Authority’s finances for all those with an interest. Questions concerning any of the information provided in this report or requests for additional information should be addressed to the Florida Green Finance Authority, Special District Services, 2501A Burns Rd, Palm Beach Gardens, Florida 33410.

STATEMENT OF NET POSITION
September 30, 2019

ASSETS
Current Assets

Governmental Activities

Cash	$	504,596	
Assessments receivable	9,849,906	
Due from other governments	8,465	
Restricted Assets		
Cash	 	551,519 	
Total Current Assets	 	10,914,486 	

LIABILITIES
Current Liabilities
Accounts payable and accrued expenses	402,932
Accrued interest	249,081
Bonds and loans payable	 	441,123 
Total Current Liabilities	 	1,093,136 Non-Current Liabilities
Bonds and loans payable	 	9,408,307 

Total Liabilities

NET POSITION

 	10,501,443 

Restricted for debt service	282,059	
Restricted for capital projects	11,379	
Unrestricted	 	119,605 	
Total Net Position	  $	413,043 	

STATEMENT OF ACTIVITIES
For the Year Ended September 30, 2019

Net (Expenses)	
Revenues and	
				Program		Changes in	
				Revenues		Net Position	
				Charges for		Governmental	
Functions/Programs		Expenses		Services		Activities	
Primary government								
Governmental Activities								
General government	$	(516,430)	$	392,115	$	(124,315)	
Physical environment	(2,325,603)	2,325,603		-	
Interest and other charges	(994,343)	1,261,985		267,642	
Total Governmental Activities	 $	(3,836,376)   $	3,979,703 		143,327	
		
General revenue	
s:					
	Investment earnings		675	
		Miscellaneous				 		9,218 	
	Total General Revenues	9,893	
	
Change in Net Position		
153,220	
	Net Position - October 1, 2018
Net Position - September 30, 2019  	 		259,823 	
		$		413,043 	

BALANCE SHEET GOVERNMENTAL FUNDS
September 30, 2019

Governmental Funds	
									Total	
				Debt	Capital		Governmental	
ASSETS	         General			         Service		        Projects			 	    Funds		
Cash	$	504,596		$	-		$	-		$	504,596	
Assessments receivable		5,027		9,844,879			-		9,849,906	
Due from other governments		8,465		-			-		8,465	
Restricted Assets										
Cash	 	    - 		 	    540,140 	 	    11,379 		 	    551,519 	
Total Assets	 	$		518,088 	 	$ 10,385,019 	 	$		11,379 	 	$ 10,914,486 	

LIABILITIES, DEFERRED INFLOWS										
OF RESOURCES AND FUND BALANCES										
LIABILITIES										
Accounts payable and accrued expenses	 	$		402,932 	 	$	- 	 	$		- 	 	$	402,932 	
DEFERRED INFLOWS OF RESOURCES										
Unavailable revenues	 	    5,027 		 	    9,844,879 	 	    - 		 	    9,849,906 	
FUND BALANCES										
Restricted for debt service		-		540,140			-		540,140	
Restricted for capital projects		-		-			11,379		11,379	
Unassigned	 	    110,129 		 	    - 	 	    - 		 	    110,129 	
Total Fund Balances	 	    110,129 		 	    540,140 	 	    11,379 		 	    661,648 	
Total Liabilities and Fund Balances	 	$		518,088 	 	$ 10,385,019 	 	$		11,379 	 	$ 10,914,486 	

See accompanying notes to financial statements.

RECONCILIATION OF TOTAL GOVERNMENTAL FUND BALANCES TO NET POSITION OF GOVERNMENTAL ACTIVITIES
September 30, 2019

Total Governmental Fund Balances	$	661,648	
Amounts reported for governmental activities in the Statement of Net Position are different because:			
Assessments receivable in future years are recognized as deferred inflows at the
fund level, however, these receivables were recognized as revenues in a prior year.		
9,849,906	
Long-term liabilities, including bonds and loans payable are not due and payable in the current period, and therefore, are not reported at the fund level.		
(9,849,430)	
Accrued interest expense for long-term debt is not a current financial use and; therefore, is not reported at the fund level.		
(249,081)	

Net Position of Governmental Activities	 	
$		
413,043 	

See accompanying notes to financial statements.

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

		Governmental Funds			
				Total	
		Debt	Capital	Governmental	
   	General	 	Service	     	Projects		 			Funds		
Revenues			
Special assessments	$	392,115	$ 1,030,450	$	-	$	1,422,565	
Investment earnings		675	-	-	675	
Miscellaneous	 		9,218 		-      		- 	 			9,218 
 			1,432,458 	
Total Revenues	 		402,008 	1,030,450      		- 		
Expenditures					
Current					
General government		516,430	-	-	516,430	
Physical environment		-	-	2,325,603	2,325,603	
Debt service					
Principal		166	189,997	-	190,163	
Interest		319	490,849	-	491,168	
Other debt service	 		3,591 		3,000      		406,398 	 			412,989 
 			3,936,353 

(2,503,895)	
Total Expenditures	 		520,506 		683,846       	2,732,001 		
Excess revenues over/(under) expenditures		(118,498)	346,604	(2,732,001)		
Other financing sources/(uses)					
Issuance of long-term debt	 		- 		15,300       	2,732,001 	 			2,747,301 

243,406	
Net change in fund balances		(118,498)	361,904	-		
Fund Balances - October 1, 2018

Fund Balances - September 30, 2019	 	 	

$		228,627 		178,236      	

110,129       $	540,140      $		11,379 

11,379 	 			418,242 

    $	661,648 	

See accompanying notes to financial statements.

RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE
STATEMENT OF ACTIVITIES
For the Year Ended September 30, 2019

Net Change in Fund Balances - Total Governmental Funds	$	243,406	
Amounts reported for governmental activities in the Statement of Activities are different because:			
Current payments on assessments receivable are recognized as revenues at the fund level. These payments were recognized as revenues in a prior year at the government-wide level.		

(190,163)	
Revenues in the Statement of Activities that do not provide current financial resources are unavailable at the fund level. This is the increase in unavailable revenues in the current period.		

2,747,301	
The issuance of long-term debt is reflected as an other financing source at the fund level; however, it is an increase in non-current liabilities at the government-wide level.	

(2,747,301)	
Principal payments on long-term debt are expenditures at the fund level; however, these payments reduce liabilities at the government-wide level.		
190,163	
In the Statement of Activities, interest is accrued on outstanding and matured bonds; whereas in governmental funds, interest expenditures are reported when due. This is the change in accrued interest from the prior year.		

(90,186)	

Change in Net Position of Governmental Activities	
$	
153,220	

See accompanying notes to financial statements.

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

							Variance with	
							Final Budget	
	Original		Final				Positive	
	Budget		Budget		Actual		(Negative)	
Revenues								
Special assessments	$	268,576		$	391,316		$	392,115		$	799	
Investment earnings	240		700		675		(25)	
Miscellaneous	-		4,985		9,218		4,233	
Total Revenues	 			268,816 		 		397,001 		 		402,008 		 		5,007 	
Expenditures								
Current								
General government	175,652		526,584		516,430		10,154	
Debt Service								
Principal	-		-		166		(166)	
Interest	-		-		319		(319)	
Other debt service	 			13,164 		 		10,450 		 		3,591 		 		6,859 	
Total Expenditures	 			188,816 		 		537,034 		 		520,506 		 		16,528 	
Net change in fund balances	 			80,000 		 		(140,033) 		 		(118,498) 		 		21,535 	
Fund Balances - October 1, 2018	 			100,000 		 		228,627 		 		228,627 		 		- 	
Fund Balances - September 30, 2019	$	180,000		$	88,594		$	110,129		$	21,535	

See accompanying notes to financial statements.

Florida Green Finance Authority NOTES TO FINANCIAL STATEMENTS
September 30, 2019

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements of the Authority have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The Authority's more significant accounting policies are described below.

Reporting Entity
Florida Green Finance Authority was established on June 11, 2012 pursuant to an Interlocal Agreement between the Town of Lantana and the Town of Mangonia Park (the “Originating Parties”) and subsequent parties who have since become members of the Authority (“Parties”) and the Florida Interlocal Cooperation Act of 1969, Chapter 163, Florida Statutes. The Authority was established for the purpose of issuing revenue bonds and other debt obligations to provide financing for the cost of certain improvements as defined by Section 163.08, Florida Statutes (“PACE ACT”), including energy efficiency improvements, renewable energy improvements and wind resistance improvements (“Qualifying Improvements”). The Authority shall exercise any or all powers granted under Sections
163.01 and 163.08, Florida Statutes as well as powers, privileges and authorities which the Originating Parties and Parties might exercise separately. The Authority is governed by an up to seven-member Board of Directors appointed by the governing bodies of each of the Originating Parties and five additional Directors. The authority plans to appoint one Director from each of the five geographic regions that make up the water management districts in Florida. These five Directors will be appointed by the first governing body that joins the Authority within each water management district.
As required by GAAP, these financial statements present the Florida Green Finance Authority (the primary government) as a stand-alone government. The reporting entity for the Authority includes all functions of government in which the Authority’s Board exercises oversight responsibility including, but not limited to, financial interdependency, selection of governing authority, designation of management, significant ability to influence operations and accountability for fiscal matters.
Based upon the application of the above-mentioned criteria as set forth in Governmental Accounting Standards Board, the Authority has not identified a discretely-presented component unit.

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Measurement Focus and Basis of Accounting

The basic financial statements of the Authority are composed of the following:

Government-wide financial statements

Fund financial statements

Notes to financial statements

Government-wide Financial Statements

Government-wide financial statements report all non-fiduciary information about the reporting government as a whole. These statements include all the governmental activities of the primary government. The effect of interfund activity has been removed from these statements.

Governmental activities are supported by developer contributions and interest. Program revenues include charges for services and payments made by parties outside of the reporting government’s citizenry if that money is restricted to a particular program. Program revenues are netted with program expenses in the Statement of Activities to present the net cost of each program

Amounts paid to acquire capital assets are capitalized as assets, rather than reported as an expenditure. Proceeds of long-term debt are recorded as liabilities in the government-wide financial statements, rather than as another financing source.

Amounts paid to reduce long-term indebtedness of the reporting government are reported as a reduction of the related liability, rather than as an expenditure.

Fund Financial Statements

The underlying accounting system of the Authority is organized and operated on the basis of separate funds, each of which is considered to be a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate. Governmental resources are allocated to and accounted for  in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled.

Fund financial statements for the primary government’s governmental funds are presented after the government-wide financial statements. These statements display information about major funds individually.

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

2.	Measurement Focus and Basis of Accounting (Continued)

b. Fund Financial Statements (Continued) Governmental Funds
The Authority classifies fund balance according to the Governmental Accounting Standards Board Statement 54 – Fund Balance Reporting and Governmental Fund Type Definitions. The Statement requires the fund balance for governmental funds to be reported in classifications that comprise a hierarchy based primarily on the extent to which the government is bound to honor constraints on the specific purposes for which amounts in those funds can be spent.

The Authority has various policies governing the fund balance classifications.

Nonspendable Fund Balance – This classification consists of amounts that cannot be spent because they are either not in spendable form or are legally or contractually required to be maintained intact.

Restricted Fund Balance – This classification includes amounts that can be spent only for specific purposes stipulated by the state constitution, external resource providers, or through enabling legislation.

Assigned Fund Balance – This classification consists of the Board of Supervisors’ intent to be used for specific purposes, but are neither restricted nor committed. The assigned fund balances can also be assigned by the Authority’s management company.

Unassigned Fund Balance – This classification is the residual classification for the government’s general fund and includes all spendable amounts not contained in the other classifications. Unassigned fund balance is considered to be utilized first when an expenditure is incurred for purposes for which amounts in any of those unrestricted fund balance classifications could be used.

Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are considered to be available when they are collected within the current period or soon thereafter to pay liabilities of the current period. For this purpose, the Authority  considers revenues to be available if they are collected within 60 days of the end of the current fiscal period.

Expenditures generally are recorded when a liability is incurred, as under accrual accounting. Interest associated with the current fiscal period is considered to be an accrual item and so has been recognized as revenue of the current fiscal period.

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Measurement Focus and Basis of Accounting (Continued)

b. Fund Financial Statements (Continued) Governmental Funds (Continued)
Under the current financial resources measurement focus, only current assets and current liabilities are generally included on the balance sheet. The reported  fund balance is considered to be a measure of “available spendable resources”. Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they are said to present a summary of sources and uses of “available spendable resources” during a period.

Because of their spending measurement focus, expenditure recognition for governmental fund types excludes amounts represented by non-current liabilities. Since they do not affect net current assets, such long-term amounts are not recognized as governmental fund type expenditures or fund liabilities.

Amounts expended to acquire capital assets are recorded as expenditures in the year that resources are expended, rather than as fund assets. The proceeds of long-term debt are recorded as other financing source rather than as a fund liability.

Debt service expenditures are recorded only when payment is due.

Basis of Presentation

Governmental Major Funds

 General Fund – The General Fund is the Authority’s  primary  operating  fund.  It  accounts for all financial resources of the general government, except those required to be accounted for in another fund.

 Debt Service Fund – Accounts for debt service requirements  to  retire  the  revenue bonds and loans issued by the Authority.

 Capital Projects Fund – The Capital Projects Fund accounts for construction of certain qualifying improvements to properties within the boundaries of the Authority.

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Basis of Presentation (Continued)

Non-current Governmental Assets/Liabilities

GASB Statement 34 requires that non-current governmental assets and non-current governmental liabilities, such as long-term debt, be reported in the governmental activities column in the government-wide Statement of Net Position.

Assets, Liabilities, Deferred Inflows of Resources, and Net Position

Cash and Investments

Chapter 280, Florida Statutes require state and local governmental units to deposit monies with financial institutions classified as "Qualified Public Depositories," a multiple financial institution pool whereby groups of securities pledged by the various financial institutions provide common collateral from their deposits of public funds. This pool is provided as additional insurance to the federal depository insurance and allows for additional assessments against the member institutions, providing full insurance for public deposits.

The Authority is authorized to invest in those financial instruments as established by Section 218.415, Florida Statutes. The authorized investments consist of:

Direct obligations of the United States Treasury;

The Local Government Surplus Funds Trust or any intergovernmental investment pool authorized pursuant to the Florida Interlocal Cooperative Act of 1969;

Interest-bearing time deposits or savings accounts in authorized qualified public depositories;

Securities and Exchange Commission, registered money market funds with the highest credit quality rating from a nationally recognized rating agency.

Restricted Assets

Certain net position of the Authority will be classified as restricted assets on the statement of net position because their use is limited either by law through constitutional provisions or enabling legislation; or by restrictions imposed externally by creditors.

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

4.	Assets, Liabilities, Deferred Inflows of Resources, and Net Position (Continued)

Budgets

Budgets are prepared and adopted after public hearings for the governmental funds, pursuant to Chapter 190, Florida Statutes. The Authority utilizes the same basis of accounting for budgets as it does for revenues and expenditures in its various funds. Formal budgets are adopted for the general fund. The legal level of budgetary control is at the fund level. As a result, deficits in the budget variance columns of the accompanying financial statements may occur. All budgeted appropriations lapse at  year end.

Deferred Inflows of Resources

Deferred inflows of resources represent the acquisition of net position/fund that is applicable to a future reporting period. The unavailable revenues are reported only at the fund level. The source of the unavailable revenues is assessments receivable on qualifying improvements to properties within the Authority. The revenues will be recognized in the period the amounts become available.

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

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

“Total fund balances” of the Authority’s governmental funds, $661,648, differs from “net position” of governmental activities, $413,043, reported in the Statement of Net Position. This difference primarily results from the long-term economic focus of the Statement of Net Position versus the current financial resources focus of the Governmental Fund Balance Sheet. The effect of the differences is illustrated below.

 Special Assessments Receivable

The assessments receivable in future years are recognized as deferred inflows at the fund level, however these amounts were recognized as revenues at the government-wide level in a prior year.

Deferred inflows of resources	$	9,849,906

 Long-term debt transactions

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

Bonds and loans payable	$	(9,849,430)

 Accrued interest

Accrued liabilities in the Statement of Net Position differ from the amount reported in governmental funds due to the accrued interest on bonds.

Accrued interest	$	(249,081)

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

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

The “net change in fund balances” for government funds, $243,406, differs from the “change in net position” for governmental activities, $153,220, reported in the Statement of Activities. The differences arise primarily from the long-term economic focus of the Statement of Activities versus the current financial resources focus of the governmental funds. The effect of the differences is illustrated below.

 Assessments receivable

Revenues in the current period associated with the current year payments on assessments receivable were recognized as revenues at the government-wide level in a prior year.

Assessment revenues	$	(190,163)

 Deferred inflows of resources

Unavailable revenues reported in the governmental funds have been recognized as revenues in the Statement of Activities. This is the increase in unavailable revenues.

Increase in unavailable revenues	$	2,747,301

 Long-term debt transactions

Repayments of loan principal are reported as expenditures in the governmental funds and, thus, have the effect of reducing fund balance because current financial resources have been used.

Principal payments	$	190,163	
Issuance of long-term debt	 			(2,747,301)	
Total	 $	(2,557,138)	

Some expenses reported in the Statement of Activities do not require the use of current financial resources, therefore, are not reported as expenditures in governmental funds.

Net change in accrued interest payable	$	(90,186)

NOTE C – CASH AND INVESTMENTS

All deposits are held in qualified public depositories and are included on the accompanying balance sheet as cash and investments.

 Custodial Credit Risk – Deposits

Custodial credit risk is the risk that in the event of a bank failure, the Authority's deposits may not be returned to it. The Authority follows the provisions of Chapter 280, Florida Statutes regarding deposits and investments. As of September 30, 2019, the Authority's bank balance was $1,056,115 and the carrying value was $1,056,115. Exposure to custodial credit risk was as follows. The Authority maintains all deposits in a qualified public depository in accordance with the provisions of Chapter 280, Florida Statutes, which means that all deposits are fully insured by Federal Depositors Insurance or collateralized under Chapter 280, Florida Statutes.

As of September 30, 2019, the Authority held no investments.

 Interest Rate Risk

The formal investment policy of the Authority conforms with State statutory requirements and bond indentures for investment maturities as a means of managing its exposure to increasing interest rates.

 Credit Risk

The Authority's investments are limited by state statutory requirements and bond compliance. The Authority has no investment policy that would further limit its investment choices.

 Concentration of Credit Risk

The Authority places no limit on the amount it may invest in any one investment.

The types of deposits and investments and their level of risk exposure as of September 30, 2019 were typical of these items during the fiscal year then ended. The Authority considers any decline in fair value for certain investments to be temporary.

NOTE D – LONG-TERM DEBT

The following is a summary of debt activity for the Authority for the year ended September 30, 2019:
Long-term Debt at October 1, 2018	$	7,292,292 Issuance of long-term debt		2,747,301
Principal payments	 		(190,163)

Long-term Debt at September 30, 2019	$	9,849,430 Authority debt is comprised of the following at September 30, 2019:
Special Assessment Revenue Bonds, Series 2015-1 (BrandsMart Project)

$2,255,700 Series 2015-1 Bonds, interest at 5.95%, maturing May 1, 2026, payable annually on May 1; collateralized by the pledged revenues of special assessments levied against the
benefited property owners.	$ 1,687,120

Special Assessment Revenue Bonds, Series 2018 (Dadeland Mall Project)

$2,595,469 Series 2018 Bonds (Dadeland Mall), interest at 5.6%, maturing November 1, 2028, payable semi-annually on May 1 and November 1; collateralized by the pledged revenues of special assessments levied against the benefited
property owners.	2,595,469

Special Assessment Revenue Bonds, Series 2018A (Orlando International Premium Outlet Project)

$5,562,290 Series 2018A Bonds (Orlando Outlets), interest at 6.18%, maturing November 1, 2039, payable semi-annually on May 1 and November 1; collateralized by the pledged revenues of special assessments levied against the benefited
property owners.	5,562,290

Loan Payable Due to Funding Group

$5,020 for the initial funding related to the financing agreement to be repaid by the property owner over 20 year
beginning May 1, 2017 at an interest rate of 6.16%.	 			4,551 Total Bonds and Loans Payable at September 30, 2019	$	9,849,430

NOTE D – LONG-TERM DEBT (CONTINUED)

Master Bond Resolution

On June 26, 2014, the Authority adopted Resolution 2014-03 which authorized the issuance of not to exceed $2,500,000,000 Florida Green Finance Authority Revenue Bonds in various series for the purpose of providing funds to finance the cost of qualifying renewable energy, energy efficiency and conversation and wind resistance improvements for use by property owners within the jurisdiction of the Authority. The proceeds of the Bonds may be used only for purposes of funding Qualifying Improvements and expenses incidental thereto, as authorized by and in the manner set forth in the PACE Act. As of September 30, 2019, the Authority issued
$10,413,459.

Special Assessment Revenue Bonds, Series 2015-1 (BrandsMart Project)

In June 2015, the Authority issued $2,225,700 Special Assessment Revenue Bonds, Series 2015-1 (BrandsMart Project). These bonds were issued to finance the cost of certain qualifying improvements for use by BrandsMart USA of West Palm Beach, Florida. In addition, the Authority has entered into a financing agreement with BrandsMart USA to provide up to
$2,032,508 to BrandsMart USA for the sole purpose of paying the cost of Qualified Improvement on a certain property. In connection with the agreement, the Authority has levied a non-ad valorem assessment on the property. Principal and interest on the Bonds are to be paid annually commencing May 1, 2017 through May 1, 2026.

Special Assessment Revenue Bonds, Series 2018 (Dadeland Mall Project)

In February 2018, the Authority issued $2,595,469 Special Assessment Revenue Bonds, Series 2018 (Dadeland Mall Project). These bonds were issued to finance the cost of certain qualifying improvements for use by SDG Dadeland Associate, Inc. In addition, the Authority has entered into a financing agreement with SDG Dadeland Associate, Inc to provide up to $2,351,080 to SDG Dadeland Associate, Inc. for the sole purpose of paying the cost of Qualified Improvement on a certain property. In connection with the agreement, the Authority has levied a non-ad valorem assessment on the property. Principal and interest on the Bonds are to be paid annually commencing May 1, 2018 through November 1, 2028.

NOTE D – LONG-TERM DEBT (CONTINUED)

Special Assessment Revenue Bonds, Series 2018A (Orlando International Premium Outlets Project)

In June 2018, the Authority issued $2,814,989 Special Assessment Revenue Bonds, Series 2018 (Orlando International Premium Outlets Project). These bonds were issued to finance the cost of certain qualifying improvements for use by Orlando Outlet Owner LLC. In addition, the Authority has entered into a financing agreement with Orlando Outlet Owner LLC to provide up to $2,607,890 to Orlando Outlet Owner LLC for the sole purpose of paying the cost of Qualified Improvement on a certain property. In November 2018, the Authority amended and restated Special Assessment Revenue Bonds, Series 2018 (Orlando International Premium Outlets Project) for additional funding of $2,747,301. The amended bond is represented as Special Assessment Revenue Bonds, Series 2018A (Orlando International Premium Outlets Project) for a total issuance amount of $5,562,290. In addition, the Authority entered into a financing agreement with Orlando Outlet Owner LLC to provide an addition $2,747,301 to Orlando Outlet Owner LLC for the sole purpose of paying the cost of Qualified Improvement on a certain property. In connection with the agreement, the Authority has levied a non-ad valorem assessment on the property. Principal and interest on the Bonds are to be paid annually commencing November 1, 2019 through November 1, 2039.

Loan Payable Due to Funding Group

In September 2015, the Authority received $5,020 for the initial funding related to the financing agreement. The amount will be repaid by the property owner over 20 years. The total assessment amount of $5,496 includes capitalized interest and other costs.

PACE Financing Agreements – Conduit Debt

In April 2014, the Authority entered into a PACE financing agreement with a property owner in West Palm Beach, Florida, to facilitate the financing of qualifying improvements and to collect the repayment obligation through a non-ad valorem assessment on the property owner’s property tax bill. The Authority is not obligated in any manner for the repayment of the debt.  The agreement provides for a maximum disbursement amount of $49,556. The loan was finalized in a prior year directly between the property owner and the bank and amounts were paid directly to the vendors, including closing costs and capitalized interest. The Authority began collection  of  assessments  during the fiscal year ended September 30, 2017  of  approximately
$9,000 per year over a seven-year period. The balance outstanding at September 30, 2019 is
$30,883. During the year, the Authority collected and disbursed $8,365 related to this debt as the agent for the property owner.

NOTE D – LONG-TERM DEBT (CONTINUED)

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

Year Ending										
September 30,			Principal			Interest			Total	

2020		
$	
441,123		
$	
590,081		
$	
1,031,204	
2021			570,322			560,244			1,130,566	
2022			604,516			525,788			1,130,304	
2023			640,366			489,276			1,129,642	
2024			678,348			450,824			1,129,172	
2025-2029			3,084,953			1,642,421			4,727,374	
2030-2034			1,430,244			987,073			2,417,317	
2035-2039			1,936,633			463,336			2,399,969	
2040

Totals	 		462,925 	 		14,503 	 		477,428 	
	 	$		9,849,430 	 	$		5,723,546 	 	$		15,572,976 	

 Significant Bond Resolution Terms and Covenants

The Bond Indenture established certain amounts be maintained in a reserve account. In addition, the Bond Indenture has certain restrictions and requirements relating principally to the use of proceeds to pay for the infrastructure improvements and the procedures to be followed by the Authority on assessments to property owners. The Authority agrees to levy special assessments in annual amounts adequate to provide payment of debt service and to meet the reserve requirements.

 Summary of Significant Bonds Resolution Terms and Covenants SPECIAL ASSESSMENT REVENUE BONDS, SERIES 2015-1
 Depository Funds – The bond resolution establishes certain funds and determines the order in which revenues are to be deposited into these funds. A description of the significant funds, including their purposes, is as follows:

1. Reserve Funds – The 2015-1 Reserve Account is funded from the proceeds of the Series 2015-1 Bonds in the amount of $9,000. Monies held in the reserve accounts will be used only for the purposes established in the Trust Indenture.

NOTE E – RISK MANAGEMENT

The government is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; and natural disasters for which the government carries commercial insurance. There were no settled claims within the last three years,

NOTE F – THIRD PARTY ADMINISTRATOR

The Renew Financial Group, LLC is the Third Party Administrator for the Authority and is responsible for providing certain services for the design, implementation and administration of the Florida Green Energy Works Program.

NOTE G – AUTHORITY MEMBERS

At September 30, 2019, the Members of the Authority are as follows:

Town of Lantana	City of Stuart
Town of Mangonia Park	City of Sebastian
City of West Palm Beach	Martin County
City of Boynton Beach	Pasco County
Village of Tequesta	Escambia County
City of Lake Worth	City of Hollywood
City of Gulfport	City of Margate
City of Fellsmere	Alachua County
Broward County	Charlotte County
Hillsborough County	Levy County
Orange County	Palm Beach County
Brevard County	Citrus County
Lee County	Manatee County
Marion County	Miami-Dade County
Osceola County	Sarasota County
Seminole County

NOTE H – SUBSEQUENT EVENTS

In April 2020, the Authority issued Special Assessment Revenue Bonds, Series 2020-A (Avid Viera) for $3,471,908.

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 Directors Florida Green Finance Authority 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 Florida Green Finance Authority, as of and for the year ended September 30, 2019, and the related notes to the financial statements, and have issued our report thereon dated June 30, 2020.

Internal Control Over Financial Reporting

In planning and performing our audit, we considered Florida Green Finance Authority's internal control over financial reporting 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 Florida Green Finance Authority’s internal control. Accordingly, we do not express an opinion on the effectiveness of Florida Green Finance Authority's internal control over financial reporting.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be 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.

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Board of Directors
Florida Green Finance Authority

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

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

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

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MANAGEMENT LETTER

To the Board of Directors Florida Green Finance Authority Florida

Report on the Financial Statements

We have audited the financial statements of the Florida Green Finance Authority as of and for the year ended September 30, 2019, and have issued our report thereon dated June 30, 2020.

Auditor’s Responsibility

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

Other Reporting Requirements

We have issued our Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards and our Independent Auditor’s Report on an examination conducted in accordance with AICPA Professionals Standards, AT-C Section 315, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports, which are dated June 30, 2020, should be considered in conjunction with this Management Letter.

Prior Audit Findings

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

Financial Condition and Management

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

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To the Board of Directors Florida Green Finance Authority

Pursuant to Sections 10.554(1)(i)5.c. and 10.556(8), Rules of the Auditor General, we applied financial condition assessment procedures for Florida Green Finance Authority. It is management’s responsibility to monitor the Florida Green Finance Authority’s financial condition; our financial condition assessment was based in part on the representations made by management and the review of the financial information provided by the same as of September 30, 2019.

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

Additional Matters

Section 10.554(1)(i)3., Rules of the Auditor General, requires us to communicate noncompliance with provisions of contracts or grant agreements, or abuse, that have occurred, or are likely to have occurred, that have an effect on the financial statements that is less than material but warrants the attention of those charged with governance. In connection with our audit, we did not note any such findings.

Purpose of this Letter

Our Management Letter is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and the Florida House of Representatives, the Florida Auditor General, Federal and other granting agencies, the Board of Supervisors, and applicable management, and is not intended to be and should not be used by anyone other than these specified parties.

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

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

To the Board of Directors Florida Green Finance Authority Florida

We have examined Florida Green Finance Authority’s compliance with Section 218.415, Florida Statutes during the year ended September 30, 2019. Management is responsible for Florida Green Finance Authority’s compliance with those requirements. Our responsibility is to express an opinion on Florida Green Finance Authority’s compliance based on our examination.

Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about Florida Green Finance Authority’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on Florida Green Finance Authority’s compliance with the specified requirements.

In our opinion, Florida Green Finance Authority complied, in all material respects, with the aforementioned requirements during the year ended September 30, 2019.

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

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