HIGH RIDGE/QUANTUM COMMUNITY DEVELOPMENT DISTRICT
CITY OF BOYNTON BEACH, FLORIDA

FINANCIAL STATEMENTS WITH INDEPENDENT AUDITOR’S REPORT THEREON

ANNUAL AUDIT FOR THE YEAR ENDED SEPTEMBER 30, 2018

HIGH RIDGE/QUANTUM COMMUNITY DEVELOPMENT DISTRICT CITY OF BOYNTON BEACH, FLORIDA
SEPTEMBER 30, 2018

TABLE OF CONTENTS

Pages

Independent Auditor's Report	1- 2
Management’s Discussion and Analysis (required supplementary information)	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 the Balance Sheet – Governmental Funds to
the Statement of Net Position – 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 the Governmental Funds to the Statement of Activities	13
Notes to the Financial Statements	14-26
Required Supplemental Information Other Than Management’s Discussion and Analysis Schedule of Revenues, Expenditures, and Changes in Fund Balance –
Budget and Actual – General Fund	27
Notes to the Budgetary Required Supplementary Information	28
Other Reports
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 in Accordance with the Rules of the Auditor General
of the State of Florida	31-33
Independent Accountant’s Report on Compliance with
Section 218.415, Florida Statutes	34

INDEPENDENT AUDITOR'S REPORT

To the Board of Supervisors
High Ridge/Quantum Community Development District City of Boynton Beach, Florida

Report on the Financial Statements

We have audited the accompanying financial statements of the governmental activities and each major fund of the High Ridge/Quantum Community Development District (the “District”), as of and for the year ended September 30, 2018, 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 of 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 High Ridge/Quantum Community Development District as of September 30, 2018, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis on pages 3 through 7 and the budgetary comparison information on pages 27 and 28 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we  have  also  issued  our  report  dated June 17, 2019, on our consideration of the District’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the District’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the District’s internal control over financial reporting and compliance.

West Palm Beach, Florida June 17, 2019

MANAGEMENT’S DISCUSSION AND ANALYSIS

Our discussion and analysis of High Ridge/Quantum Community Development District, City of Boynton Beach, Florida’s (“District”) provides a narrative overview of the District’s financial activities for the fiscal year ended September 30, 2018. 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 liabilities of the District exceeded its assets at the close of the most recent fiscal year resulting in a net position deficit balance of $512,692. When the District was formed, assets exceeded liabilities and subsequently infrastructure was deeded to the City of Boynton Beach creating the negative net position. The reason for the transfer of infrastructure was that the City is better able to maintain the infrastructure than the District. The debt related to the assets transferred to the City will be paid by future assessments and as demonstrated by the fund financial statements the District has sufficient resources for current operations.

The change in the District’s total net position in comparison with the prior fiscal year was an increase of $64,892. 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, 2018, the District’s governmental funds reported combined ending fund balances of $124,344, an increase of $10,728 in comparison with the prior year. Of the total fund balance, $53,017 is restricted for debt service, $2,000 is assigned to subsequent year’s expenditures, and $69,327 is unassigned fund balance which is available for spending at the District’s discretion.

OVERVIEW OF FINANCIAL STATEMENTS

The 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 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 and liabilities, with the residual amount being reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the District is improving or deteriorating.

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

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.

Governmental Funds

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

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

The District maintains two 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 and debt service fund. The general and debt service funds are considered to be major funds.

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

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, due to the transfer of infrastructure to the City of Boynton Beach, liabilities exceeded assets at the close of the most recent fiscal year.

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

NET POSITION SEPTEMBER 30,

	 	2018 		 	2017 		
Current and other assets	$   130,527	$   119,889	
Capital assets, net of depreciation	 	898,924 		 	925,600 		
Total assets	 	1,029,451 		 	1,045,489 		
Current liabilities	22,143	23,073	
Long-term liabilities	 	1,520,000 		 	1,600,000 		
Total liabilities	 	1,542,143 		 	1,623,073 		

Net position
Net investment in capital assets	

(3,365)	

(24,178)	
Restricted	37,057	33,823	
Unrestricted	 	(546,384)	 	(587,229)	
Total net position (deficit)	  $ (512,692)	  $ (577,584)	

The District’s net position reflects its investment in capital assets (e.g., land, land improvements, and infrastructure); less any related debt used to acquire those assets that is still outstanding. These assets are used to provide services to residents; consequently, these assets are not available for future spending. Although the District’s investment in capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.

The restricted portion 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 the 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 ENDED SEPTEMBER 30,

Revenues: Program revenues

 	2018 		 	2017 	

Charges for services	$	181,106	$	189,882	
Operating grants and contributions	137	94	
General revenues	 	151 		 	151 		
Total revenues	 	181,394 		 	190,127 		

Expenses:

General government	50,346	203,636	
Maintenance and operations	26,676	26,676	
Interest	 	39,480 		 	63,207 		
Total expenses	 	116,502 		 	293,519 		
Change in net position	 	64,892 		 	(103,392)	

Net position (deficit) – beginning	 	(577,584)	 	(474,192)	
Net position (deficit) – ending	   $    (512,692)	  $    (577,584)	

As in the prior fiscal year, program revenues are comprised primarily of assessments. As noted above and in the statement of activities, the cost of all governmental activities during the fiscal year ended September 30, 2018 was $116,502. The costs of the District’s activities were primarily funded by program revenues. Program revenues, comprised primarily of assessments, decreased slightly during the fiscal year.

GENERAL BUDGETING HIGHLIGHTS

An operating budget was adopted and maintained by the government 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 at the aggregate fund level. Any budget amendments that increase the aggregate budgeted appropriations must be approved by the Board of Supervisors. The 2018 general fund budget was amended to increase revenues by $295 and decrease appropriations by $4,738. The increase in revenues is primarily the result of greater than anticipated assessments being collected due to fewer people taking advantage of the discount for early payment than budgeted. The actual general fund expenditures for the 2018 fiscal year were lower than budgeted amounts due primarily to anticipated costs which were not incurred in the current fiscal year.

CAPITAL ASSETS AND DEBT ADMINISTRATION

Capital Assets

At September 30, 2018, the District had $1,259,050 invested in land and land improvements, and the stormwater system, for its governmental activities. In the government-wide financial statements depreciation of $360,126 has been taken, which resulted in a net book value of
$898,924. More detailed information about the District’s capital assets is presented in the notes to the financial statements.

The following is a summary of capital assets as of September 30:
 	2018		2017 	

Land and land improvements	$	192,000	$	192,000	
Stormwater system	 	1,067,050 		 	1,067,050 		
	1,259,050	1,259,050	
Less accumulated depreciation	 	360,126 		 	333,450 		
Totals	  $	898,924 		  $	925,600 		
Long-Term Liabilities

At September 30, 2018, the District had $1,520,000 in Bonds outstanding for its governmental activities. More detailed information about the District’s long-term liabilities is presented in the notes of the financial statements.

The following is a summary of long-term liabilities as of September 30:

	 	2018 		 	2017 		
Bonds payable, Series 2017	  $ 1,520,000 		  $ 1,600,000 		
Totals	  $  1,520,000 		  $  1,600,000 		
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, landowners, customers, 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 High Ridge/Quantum Community Development District’s management services at Special District Services, Inc., 2501A Burns Road, Palm Beach Gardens, Florida 33410.

HIGH RIDGE/QUANTUM COMMUNITY DEVELOPMENT DISTRICT CITY OF BOYNTON BEACH, FLORIDA
Statement of Net Position September 30, 2018

Total Governmental Activities

Assets
Current assets:
Cash

$	76,140

Investments	53,017
Accounts receivable	1,370

Total current assets	130,527

Noncurrent assets:
Capital assets

Non-depreciable	192,000	
Depreciable (net of depreciation)	706,924	
Total noncurrent assets	898,924	
Total assets	1,029,451	
Liabilities		
Current liabilities:
Accounts payable	
6,183	
Accrued interest payable	15,960	
Total current liabilities	22,143	
Noncurrent liabilities
Due within one year	
80,000	
Due in more than one year	1,440,000	
Total noncurrent liabilities	1,520,000	
Total liabilities	1,542,143	
Net position		
Net investment in capital assets	(3,365)	
Restricted for debt service	37,057	
Unrestricted	(546,384)	
Total net position	$	(512,692)	
See notes to the financial statements

HIGH RIDGE/QUANTUM COMMUNITY DEVELOPMENT DISTRICT CITY OF BOYNTON BEACH, FLORIDA
Statement of Activities
For the Year Ended September 30, 2018

Program Revenues

Charges	Operating Grants	Capital Grants		Total For		and		and	Governmental
Function / Program Activities	Expenses	Services	Contributions	Contributions	Activities

Governmental activities General government

$	50,346

$	58,529	$	$

$	8,183

Maintenance and operations	26,676	(26,676)
Interest on long term debt	39,480	122,577	137	83,234
 	 	 	 	
Total governmental activities	116,502	181,106	137	64,741

General revenues

Investment earnings - unrestricted	151	
Total general revenues	151	

Change in net position	
64,892	
Net position, beginning of year	(577,584)	

Net position, end of year	
$	(512,692)	

See notes to the financial statements

HIGH RIDGE/QUANTUM COMMUNITY DEVELOPMENT DISTRICT CITY OF BOYNTON BEACH, FLORIDA
Balance Sheet Governmental  Funds September 30, 2018

Major Funds

	Debt		Total	
General		Service		Governmental	
Fund		Fund		Funds	
Assets

Cash	$	76,140		$		$	76,140	
Investments			53,017		53,017	
Accounts receivable	1,370				1,370	

Total assets

$	77,510

$	53,017

$	130,527

Accounts payable	$	6,183		$	$	6,183	

Total liabilities	
6,183		
6,183	

Liabilities and fund balances Liabilities

Fund balances Restricted
Debt service	53,017	53,017
Assigned

Subsequent year's expenditures	2,000				2,000	
Unassigned	69,327				69,327	

Total fund balances	
71,327		
53,017		
124,344	

Total liabilities and fund balances	
$	77,510		
$	53,017		
$	130,527	

See notes to the financial statements

HIGH RIDGE/QUANTUM COMMUNITY DEVELOPMENT DISTRICT CITY OF BOYNTON BEACH, FLORIDA
Reconciliation of the Balance Sheet - Governmental Funds to the Statement of Net Position - Governmental Activities September 30, 2018

Fund balances total governmental funds

$	124,344

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 in the governmental funds.

Governmental capital assets

$	1,259,050

Less accumulated depreciation	(360,126)

898,924

Long-term liabilities, including notes and bonds payable, are not due and payable in the current period and therefore are not reported in the funds. Long-term liabilities at year-end consists of:

Accrued interest payable	(15,960)
Bonds payable	(1,520,000)

(1,535,960)

Net position of governmental activities

$	(512,692)

See notes to the financial statements

HIGH RIDGE/QUANTUM COMMUNITY DEVELOPMENT DISTRICT CITY OF BOYNTON BEACH, FLORIDA
Combined Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental  Funds
For the Year Ended September 30, 2018

Major Funds

Debt	Total

Revenues

General	Service	Governmental
Fund	Fund	Funds

Assessments	$	58,529		$	122,577		$	181,106	
Investment earnings	151		137		288	

Total revenues	
58,680		
122,714		
181,394	

Expenditures						
Current
General government Debt service Principal	
50,346		

80,000		
50,346

80,000	
Interest			40,320		40,320	

Total expenditures	
50,346		
120,320		
170,666	

Excess of revenues over (under) expenditures	
8,334		
2,394		
10,728	

Fund balances - beginning of year	
62,993		
50,623		
113,616	

Fund balances - end of year	
$	71,327		
$	53,017		
$	124,344	

See notes to the financial statements

HIGH RIDGE/QUANTUM COMMUNITY DEVELOPMENT DISTRICT CITY OF BOYNTON BEACH, FLORIDA
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of the Governmental Funds to the Statement of Activities For the Year Ended September 30, 2018

Net change in fund balances

$	10,728

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 statement but is reported as an expense in the statement
of activities:	(26,676)

Repayment of debt principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the
statement of net position:	80,000

Some expenses reported in the statement of activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds.
Change in accrued interest	840

Change in net position

$	64,892

See notes to the financial statements

HIGH RIDGE/QUANTUM COMMUNITY DEVELOPMENT DISTRICT CITY OF BOYNTON BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2018

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The financial statements of the High Ridge/Quantum Community Development District (“District”) have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The District’s significant accounting policies are described below.

Reporting Entity

The District was created on August 17, 2004, pursuant to the Uniform Community Development District Act of 1980, otherwise known as Chapter 190, Florida Statutes, by City of Boynton Beach Ordinance 04-062. The Act provides among other things, the power to manage basic services for community development, power to borrow money and issue bonds, and to levy and assess non-ad valorem assessments for the financing and delivery of capital infrastructure.

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

The District is governed by the Board of Supervisors (“Board”) which is composed of five members. The Supervisors are elected by the owners of the property 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 final responsibility for:

Assessing and levying assessments.
Approving budgets.
Exercising control over facilities and properties.
Controlling the use of funds generated by the District.
Approving the hiring and firing of key personnel.
Financing improvements.

HIGH RIDGE/QUANTUM COMMUNITY DEVELOPMENT DISTRICT CITY OF BOYNTON BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2018

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Reporting Entity (Continued)

As required by generally accepted accounting principles, these financial statements include the District (the primary government) and its component units. Component units are legally separate entities for which the District is financially accountable. The District is financially accountable if:

the District appoints a voting majority of the organization’s governing board and (1) the District is able to impose its will on the organization or (2) there is a potential for the organization to provide specific financial benefits to or impose specific financial burdens on the District, or

the organization is fiscally dependent on the District and (1) there is a potential for the organization to provide specific financial benefits to the District or (2) impose specific financial burdens on the District.

Organizations for which the District is not financially accountable are also included when doing so is necessary in order to prevent the District’s financial statements from being misleading.

Based upon application of the above criteria, management of the District has determined that no component units exist which would require inclusion in this report. Further, the District is not aware of any entity that would consider the District to be a component unit.

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.

HIGH RIDGE/QUANTUM COMMUNITY DEVELOPMENT DISTRICT CITY OF BOYNTON BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2018

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

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 recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.

Governmental Funds

Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period.  Expenditures are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures are recorded only when payment is due.
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.

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

HIGH RIDGE/QUANTUM COMMUNITY DEVELOPMENT DISTRICT CITY OF BOYNTON BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2018

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Deposits and Investments

The District’s cash and cash equivalents are considered to be cash on hand and demand deposits (interest and non-interest bearing).

The District has elected to proceed under the Alternative Investment Guidelines as set forth in Section 218.415 (17) Florida Statutes. The District may invest any surplus public funds in the following:

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

Securities listed in paragraph c and d shall be invested to provide sufficient liquidity to pay obligations as they come due. Unspent Bond proceeds or Bond reserve accounts are required to be held in investments as specified in the Bond Indenture.

Investments are stated at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is a market-based measurement, not an entity-specific measurement. For some assets and liabilities, observable market transactions or market information might be available; for others, it might not be available. However, the objective of fair value measurement in both cases is the same, that is, to determine the price at which an orderly transaction to sell the asset or to transfer the liability would take place between market participants at the measurement date under current market conditions. Fair value is an exit price at the measurement date from the perspective of a market participant that controls the asset or is obligated for the liability. The District categorizes investments reported at fair value in accordance with the fair value hierarchy established by GASB Statement No. 72, Fair Value Measurement and Application. The District records all interest revenue to investment activities in the respective funds.

Restricted Assets

These assets represent cash and investments set aside pursuant to Bond covenants or other contractual restrictions.

HIGH RIDGE/QUANTUM COMMUNITY DEVELOPMENT DISTRICT CITY OF BOYNTON BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2018

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

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. In the governmental funds, prepaid items are recorded using the consumption method and are offset by the nonspendable fund balance component which indicates they do not constitute available spendable resources, even though they are a component of current assets.
Capital Assets

Capital assets, which include property, plant and equipment, and infrastructure assets (e.g., roads, stormwater system and similar items) are reported in the governmental 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 costs or estimated historical cost if purchased or constructed. Donated capital assets, donated works of art and similar items, and capital assets received in a service concession arrangement are reported at acquisition cost..
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 – Stormwater system	40
In the governmental fund financial statements, amounts incurred for the acquisition of capital assets are reported as fund expenditures. Depreciation expense is not reported in the governmental fund financial statements.
Deferred Outflow of Resources
In addition to assets, the statement of net position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position or fund balance that applies to a future period(s) and thus, will not be recognized as an outflow of resources (expense/expenditure) until then. Currently, the District does not report any deferred outflows of resources.

HIGH RIDGE/QUANTUM COMMUNITY DEVELOPMENT DISTRICT CITY OF BOYNTON BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2018
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Deferred Inflow of Resources
In addition to liabilities, the statement of net position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position or fund balance that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. Currently, the District does not report any Deferred Inflows of Resources.
Unearned Revenue
The District reports unearned revenue on its government wide Statement of Net Position and governmental funds balance sheet. Unearned revenue arises when resources are obtained prior to revenue recognition. In subsequent periods, when revenue recognition criteria are met the unearned revenue is removed and revenue is recognized.
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.

Fund Balance

In the fund financial statements, governmental funds report fund balance classifications that comprise a hierarchy based primarily on the extent to which the District is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. Fund balance is reported under the following categories:
Nonspendable fund balance represents amounts that are not in spendable form or are legally or contractually required to be maintained intact.

HIGH RIDGE/QUANTUM COMMUNITY DEVELOPMENT DISTRICT CITY OF BOYNTON BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2018

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Fund Balance (Continued)

Restricted fund balance represents amounts that can be spent only for specific purposes stipulated by external providers (e.g. creditors, grantors, contributor, or laws or regulations of other governments) or imposed by law through constitutional provisions or enabling legislation.

Committed fund balance represents amounts that can be used only for the specific purposes determined by 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).

Assigned fund balance includes spendable fund balance amounts that are intended to be used for specific purposes, as expressed by the Board of Supervisors, that are neither considered restricted or 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.

Unassigned fund balance is the residual fund balance classification for the general fund. It is also used to report negative fund balances in other governmental funds.

When an expenditure is incurred for purposes for which both restricted and unrestricted (committed, assigned, or unassigned) amounts are available, it is the District’s policy to reduce restricted amounts first. When an expenditure is incurred for purposes for which amounts in any of the unrestricted fund balance classifications could be used, it is the District’s policy to reduce committed amounts first, followed by assigned amounts, and then unassigned amounts.

Net Position

Net position is the residual of all other elements presented in a statement of financial position. It is the difference between (a) assets plus deferred outflows of resources and (b) liabilities and deferred inflows of resources. Net position is displayed in the following three components:

Net investment in capital assets – Consists of capital assets including restricted capital assets, net of accumulated depreciation and reduced by the outstanding balances of any bonds, notes or other borrowings that are attributable to the acquisition, construction or improvement of those assets.

HIGH RIDGE/QUANTUM COMMUNITY DEVELOPMENT DISTRICT CITY OF BOYNTON BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2018

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Net Position (Continued)

Restricted net position – Consists of net position with constraints placed on the use either by: (1) external groups such as creditors, grantors, contributors, or laws or regulations of other governments; or (2) law through constitutional provisions of enabling legislation.

Unrestricted net position – All other net position that does not meet the definition of “restricted” or “net investment in capital assets.”

Assessments

Assessments are non-ad valorem assessments on certain land and all platted lots within the District. Assessments are levied each November 1 on property of record as of the previous January. The fiscal year for which annual assessments are levied on October 1 with discounts available for payments through February 28 and become delinquent on April 1. For debt service assessments, amounts collected as advance payments are used to prepay a portion of the Bonds outstanding. Otherwise, assessments are collected annually to provide funds for the debt service on the portion of the Bonds which are not paid with prepaid assessments.

Assessments 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.

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 2 – BUDGETARY INFORMATION

The District is required to establish a budgetary system and an approved Annual Budget. Annual Budgets are adopted on a basis consistent with generally accepted accounting principles for the general fund. All annual appropriations lapse at fiscal year end.

HIGH RIDGE/QUANTUM COMMUNITY DEVELOPMENT DISTRICT CITY OF BOYNTON BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2018

NOTE 2 – BUDGETARY INFORMATION (Continued)

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 public comments.
Prior to October 1, the budget is legally adopted by the District Board.
Any budget amendments that increase the aggregate budgeted appropriations must be approved by the District Board. The legal level of control is at the Fund Level.
Unused appropriation for annually budget funds lapse at the end of the year.

NOTE 3 – DEPOSTS AND INVESTMENTS

Deposits

In addition to insurance provided by the Federal Depository Insurance Corporation, deposits are held in banking institutions approved by the Treasurer of the State of Florida. Under Florida Statutes, Chapter 280, Florida Security for Public Deposits Act, the State Treasurer requires all Florida qualified public depositories to deposit with the Treasurer or other banking institution eligible collateral. In the event of failure of a qualified public depository, the remaining public depositories would be responsible for covering any resulting losses. The District’s deposits at year end are considered insured for custodial credit risk purposes. As of September 30, 2018, the bank balance of the District’s deposits totaled $76,140 and the carrying amount was $76,140.

Investments

GASB Statement No. 72, Fair Value Measurement and Application, requires governments to disclose the fair value hierarchy for each type of asset or liability measured at fair value in the notes to the financial statements. The standard also requires governments to disclose a description of the valuation techniques used in the fair value measurement and any significant changes in valuation techniques. GASB 72 establishes a three-tier fair value hierarchy. The hierarchy is based on valuation inputs used to measure the fair value as follows:

Level 1: Inputs are directly observable, quoted prices in active markets for identical assets or liabilities.

Level 2:   Inputs are other than quoted prices included within Level 1 that are for the asset or liability, either directly or indirectly. These inputs are derived from or corroborated by observable market data through correlation or by other means.

HIGH RIDGE/QUANTUM COMMUNITY DEVELOPMENT DISTRICT CITY OF BOYNTON BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2018

NOTE 3 – DEPOSTS AND INVESTMENTS (Continued)

Investments (Continued)

Level 3:	Inputs are unobservable inputs used only when relevant Level 1 and Level 2 inputs are unavailable.

The level in which an asset is assigned is not indicative of its quality but an indication of the source of valuation inputs.

The money market mutual funds consist of investments with financial institutions in open end, institutional, money market funds complying with Securities and Exchange Commission (SEC) Rule 2a7. Rule 2a7 allows SEC registered mutual funds to use amortized cost rather than fair value to report net assets used to compute share prices if certain conditions are met. Those conditions include restrictions on the types of investments held, restrictions on the term-to maturity of individual investments and the dollar-weighted average of the portfolio, requirements for portfolio diversification, and requirements for divestiture considerations in the event of security downgrades and defaults, and required actions if the fair value of the portfolio deviates from amortized cost by a specified amount. Money market mutual funds are exempt from the GASB 72 fair value hierarchy disclosures.

The District’s investments were as follows at September 30, 2018:

	Fair Value	Credit Rating	Maturities	
US Bank Money Market Mutual Fund	$	38,017	Not Rated	Not Applicable	
FCB Money Market Mutual Fund	 	15,000	Not Rated	Not Applicable	
Total	$    53,017			

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.

HIGH RIDGE/QUANTUM COMMUNITY DEVELOPMENT DISTRICT CITY OF BOYNTON BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2018

NOTE 4 – CAPITAL ASSETS

Capital asset activity for the fiscal year ended September 30, 2018 was as follows:
Beginning

Ending

Governmental activities
Capital assets, not being depreciated

   Balance 	     Additions           Reductions 	

     Balance 	

Land and land improvements	  $  192,000 		  $ 		  $ 		  $  192,000 		
Total capital assets, not being depreciated	 	192,000 		 		 	192,000 		
Capital assets, being depreciated			
Stormwater system	    1,067,050 		 		    1,067,050 		
Total capital assets, being depreciated	    1,067,050 		 		    1,067,050 		
Less accumulated depreciation for:			
Stormwater system	 	(333,450) 		 	(26,676) 		 		 	(360,126) 		
Total accumulated depreciation	 	(333,450) 		 	(26,676) 		 		 	(360,126) 		
Total capital assets, being depreciated, net	 	733,600 		 	(26,676) 		 		 	706,924 		
Governmental activities capital assets, net	  $  925,600 		  $  (26,676) 		  $ 		  $  898,924 		
Depreciation expense was charged to the maintenance and operations function.

NOTE 5 – LONG-TERM LIABILITIES

Special Assessment Refunding Bonds, Series 2017

On January 17, 2017, the District issued $1,680,00 of Special Assessment Refunding Bonds, Series 2017, with an initial fixed interest rate of 2.52%. On May 1, 2027, the interest rate will be adjusted to a fixed interest rate per annum indexed at 65.0001 percent of the ten (10) year Treasury Constant Maturity plus 111 basis points with a minimum rate of 2.32% and a maximum rate of 5.75%. The bonds were used to refinance all of the outstanding Special Assessment Improvement Bonds, Series 2005A. Principal and interest are payable semiannually on May 1 and November 1, commencing May 1, 2017. The bonds mature on May 1, 2035.

The Series 2017 bonds are subject to optional redemption, in whole or in part, on any date, at the Redemption Price equal to 100% of the Outstanding principal amount of Bonds to be redeemed, plus accrued interest to the redemption date, upon receipt by the Trustee no less than fifteen (15) or more than twenty (20) days prior to such redemption date of a written direction from the Issuer stating that it intends to effect redemption of such Bonds on a date certain.

HIGH RIDGE/QUANTUM COMMUNITY DEVELOPMENT DISTRICT CITY OF BOYNTON BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2018

NOTE 5 – LONG-TERM LIABILITIES (Continued)

Special Assessment Refunding Bonds, Series 2017 (Continued)

The Bond Indenture established a debt service reserve requirement as well as other restrictions and requirements relating principally for the procedures to be followed by the District on assessments to property owners and to meet the required annual debt service. 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 those requirements of the Bond Indenture at September 30, 2018.

Changes in the District’s long-term liabilities for the fiscal year ended September 30, 2018 were as follows:

Beginning
     Balance		Additions	Reductions 	

Ending
     Balance 	

Due Within
    One Year 	

Governmental activities Bonds payable;
Series 2017	$1,600,000        $	$	(80,000)        $1,520,000        $	80,000 	 Total	$1,600,000         $	$	(80,000)        $1,520,000        $	80,000 	

At September 30, 2018, the scheduled debt service requirements on the long-term debt were as follows:

Year Ending

Governmental Activities

  September 30:         Principal		Interest		Total 	

2019	$	80,000	$	38,304	$	118,304	
2020	80,000	36,288	116,288	
2021	85,000	34,272	119,272	
2022	90,000	32,130	122,130	
2023	85,000	29,862	114,862	
2024-2028	430,000	152,975	582,975	
2029-2033	450,000	143,750	593,750	
2034-2035	 	220,000 		 	19,262 		 	239,262 		

Total	$ 1,520,000         $ 486,843       $ 2,006,843 	

On May 1, 2027, the interest rate resets to between 2.32% and 5.75%. The interest rate of 5.75% was used for the schedule above.

HIGH RIDGE/QUANTUM COMMUNITY DEVELOPMENT DISTRICT CITY OF BOYNTON BEACH, FLORIDA
NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2018

NOTE 6 – TRANSACTIONS WITH OTHER DISTRICTS

During the fiscal year ended September 30, 2018, the District collected assessments of $44,659 on behalf of Quantum Park Overlay Dependent District (“Quantum Park Overlay”). The District is related to Quantum Park Overlay due to overlapped units and therefore, the District collects assessments from those units on behalf of Quantum Park Overlay.

NOTE 7 – DEFICIT NET POSITION

The District has a government-wide net position financial deficit of $512,692 as of September 30, 2018. The deficit in the government-wide statement of net position primarily relates to the excess of the amount of long-term debt outstanding over the amount of capital assets, net of accumulated depreciation. During prior years, various infrastructure improvements necessary to complete the District were financed through the issuance of long-term debt but were conveyed to other entities for maintenance. Those capital assets are not included in the assets of the District; however, the long-term debt associated with those assets remains a liability of the District.

NOTE 8 – MANAGEMENT COMPANY

The District has contracted with a management company to perform management advisory services, which include financial and accounting advisory services. Certain employees of the management company also serve as officers 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. Settled claims from these risks have not exceeded commercial insurance coverage over the past three years.

Florida Statues limit the District’s maximum loss for most liability claims to $200,000 per person and $300,000 per occurrence under the Doctrine of Sovereign Immunity. However, under certain circumstances, a plaintiff can seek to recover damages in excess of statutory limits by introducing a claims bill to the Florida Legislature. The limits addressed in Florida Statutes do not apply to claims filed in Federal courts.

HIGH RIDGE/QUANTUM COMMUNITY DEVELOPMENT DISTRICT CITY OF BOYNTON BEACH, FLORIDA
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget and Actual - General Fund For the Year Ended September 30, 2018

	Variance -	
Budgeted Amounts		Actual		Positive	
Original	Final		Amounts		(Negative)	

Revenues

Assessments	$	56,879		$	57,159		$	58,529		$	1,370	
Interest	120		135		151		16	

Total revenues	56,999		57,294		58,680		1,386	
General government								
Current								
General government	58,999		54,261		50,346		3,915	
Total general expenditures	58,999		54,261		50,346		3,915	

Excess of revenues over (under)								
expenditures	(2,000)		3,033		8,334		5,301	

Other financing sources (uses):								
Carry over from prior year	2,000		2,000				(2,000)	

Excess of revenues and other								
financing sources (uses) over expenditures	$	$	5,033		8,334		$	3,301	
Fund balance, beginning of the year			62,993			

Fund balance, end of the year			$	71,327			

HIGH RIDGE/QUANTUM COMMUNITY DEVELOPMENT DISTRICT CITY OF BOYNTON BEACH, FLORIDA
Notes to the Budgetary
Required Supplementary Information (RSI) September 30, 2018

Note 1 - Basis of Accounting

Generally Accepted Accounting Principles (GAAP) serve as the budgetary basis of accounting.

Note 2 - Excess of expenditures over appropriations

Actual general fund expenditures did not exceed appropriations for the fiscal year.

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
High Ridge/Quantum Community Development District City of Boynton Beach, Florida

We have audited, 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, the financial statements of the governmental activities and each major fund information of the High Ridge/Quantum Community Development District (the “District”), as of and for the year ended September 30, 2018, and the related notes to the financial statements, which collectively comprise the District’s basic financial statements, and have issued our report thereon dated June 17, 2019.

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 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.

West Palm Beach, Florida June 17, 2019

MANAGEMENT LETTER IN ACCORDANCE WITH THE RULES OF THE AUDITOR GENERAL
OF THE STATE OF FLORIDA

To the Board of Supervisors
High Ridge/Quantum Community Development District City of Boynton Beach, Florida

Report on the Financial Statements

We have audited the basic financial statements of the High Ridge/Quantum Community Development District (the “District”), as of and for the fiscal year ended September 30, 2018, and have issued our report thereon dated June 17, 2019.

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 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 Accountant’s Report on an examination conducted in accordance with AICPA Processional 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 17, 2019, 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 prior year that required corrective actions.

Official Title and Legal Authority

Section 10.554(1)(i)4., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this Management Letter, unless disclosed in the notes to the financial statements. This information is disclosed in Note 1 to the financial statements.

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 the District has met one or more of the conditions described in Section 218.503(1), Florida Statutes, and to identify of the specific condition(s) met. In connection with our audit, we determined that the District did not meet any of the conditions described in Section 218.503(1), Florida Statutes, during the fiscal year ended September 30, 2018.

Pursuant to Sections 10.554(1)(i)5.b. and 10.556(8), Rules of the Auditor General, we applied financial condition assessment procedures for the District. It is management’s responsibility to monitor the District’s financial condition, and our financial condition assessment was based in part on representations made by management and review of financial information provided by same. Our assessment was done as of the fiscal year end. The results of our procedures did not disclose any matters that are required to be reported.

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.

Special District Component Units

Section 10.554(1)(i)5.c., Rules of the Auditor General, requires, if appropriate, that we communicate the failure of a special district that is a component unit of a county, municipality, or special district, to provide the financial information necessary for proper reporting of the component unit, within the audited financial statements of the county, municipality, or special district in accordance with Section 218.39(3)(b), Florida Statutes.

Based on the application of criteria in publications cited in Section 10.553, Rules of the Auditor General, there are no special district component units of the District and the District is not a component to any other entity.

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, 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.

West Palm Beach, Florida June 17, 2019

INDEPENDENT ACCOUNTANT’S REPORT

To the Board of Supervisors
High Ridge/Quantum Community Development District City of Boynton Beach, Florida

We have examined the High Ridge/Quantum Community Development District’s (the “District”) compliance with Section 218.415, Florida Statutes during the year ended September 30, 2018. Management of the District is responsible for the District’s compliance with the specified requirements. Our responsibility is to express an opinion on the District’s compliance with the specified requirements 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 above. 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 judgement, including an assessment of the risk 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 the specified requirements.

In our opinion, the District complied, in all material respects, with Section 218.415, Florida Statutes for the year ended September 30, 2018.

This report is intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate and Florida House of Representatives, the Florida Auditor General, applicable management, and the District Board, and is not intended to be and should not be used by anyone other than these specified parties.

West Palm Beach, Florida June 17, 2019