WYLD PALMS COMMUNITY DEVELOPMENT DISTRICT

TABLE  OF CONTENTS

Year  Ended  September  30, 2016

   Page 

Financial Section:
Independent Auditor's Report	1
Management Discussion and Analysis	3
Financial Statements:
Government-Wide Financial Statements:
Statement of Net Position	7
Statement of Activities	8
Fund Financial Statements:
Balance Sheet - Governmental Funds	9
Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds	10
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds
to the Statement of Activities	11
Statement of Revenues, Expenditures and Changes in Fund Balance -
Budget and Actual - General Fund	12
Notes to Financial Statements	13
Compliance Section:
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	24
Management Comments and Responses	26
Independent Auditor's Report on Compliance with the Requirements
of Section 218.415, Florida Statutes	30

INDEPENDENT AUDITOR'S REPORT

To the Board of Supervisors
Wyld Palms Community Development District

We have audited the accompanying financial statements of the governmental activities and each major fund of the Wyld Palms Community Development District (the “District”), as of and for the year ended September 30, 2016, and the related notes to the financial statements, which collectively comprise the District’s basic financial statements as listed in the table of contents.

Management’s Responsibility for the Financial Statements

The District's 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 and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

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

MCDIRMIT DAVIS & COMPANY, LLC
934 NORTH MAGNOLIA AVENUE, SUITE 100 ORLANDO, FLORIDA 32803
TELEPHONE: 407-843-5406 FAX: 407-649-9339 EMAIL: INFO@MCDIRMITDAVIS.COM

MEMBERS: PRIVATE COMPANIES PRACTICE SECTION AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS

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 Wyld Palms Community Development District as of September 30, 2016, and the respective changes in financial position thereof and the respective 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

Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis starting on page 3, 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.

Emphasis of Matter

As disclosed in Notes 4 and 5 to the financial statements, the infrastructure under construction is temporarily on hold due to the District’s financial issues. In addition, the District has not made any scheduled debt service payments since 2009.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued a report dated June 28, 2017, on our consideration of the District’s internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the District’s internal control over financial reporting and compliance.

Orlando, Florida June 28, 2017

MANAGEMENT’S DISCUSSION AND ANALYSIS

Our discussion and analysis of the Wyld Palms Community Development District (the “District”) financial accomplishments provide an overview of the District’s financial activities for the year ended September 30, 2016. Please read it in conjunction with the District’s Independent Auditor’s Report, financial statements and accompanying notes.

This information is being presented to provide additional information regarding the activities of the District and to meet the disclosure requirements of Government Accounting Standards Board Statement (GASB) No. 34, Basic Financial Statements - and Management’s Discussion and Analysis - for State and Local Governments issued June 1999.

Financial Highlights

The liabilities  of the District  exceeded its assets  at September  30, 2016 by
$(9,825,963), a decrease in the net position of $1,124,896 in comparison with the prior year.
At September 30, 2016, the District’s governmental funds reported deficit fund balances of $(12,751,215), a decrease of $1,024,476 in comparison with the prior year.
The District has entered into an agreement with the Trustee of the bonds and a special purpose entity, Wyld Palms Holdings, LLC (the “SPE”). In accordance with the agreement, the SPE now owns the property securing the Series 2007 bonds but is not required to remit debt service assessments to the District. The balance of the bonds is not forgiven, and the original trust indenture has not been modified. As of the date of this report, the District has not made any scheduled debt service payments since May 2009.

Overview of the Financial Statements

This discussion and analysis are intended to serve as an introduction to the Wyld Palms Community Development District’s financial statements. The District’s financial statements are comprised of three components: 1) government-wide financial statements, 2) fund financial statements and 3) notes to the financial statements.

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 of the District’s assets and liabilities, with the difference between the two 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 result in cash flows in future fiscal periods.

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

Fund Financial Statements

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

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 government’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.

The District maintains four 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, special revenue fund, debt service fund, and capital projects fund, all of which are considered to be major funds.

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

Notes to 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

Statement of Net Position - The District’s net position was $(9,825,963) at September 30, 2016. The analysis that follows focuses on the net position of the District’s governmental activities.

Government-Wide Financial Analysis (Continued):

Wyld Palms Community Development District Statement of Net Position

	September 30,
2016		September 30,
2015	
Assets, excluding capital assets	$	3,508,512		$	3,578,640	
Capital Assets Net of Depreciation	 	8,297,817		 	8,510,159	
Total assets	 	11,806,329		 	12,088,799	
Liabilities, excluding long-term liabilities	16,609,875		15,655,527	
Long-term Liabilities	 	5,022,417		 	5,134,339	
Total liabilities	 	21,632,292		 	20,789,866	

Net Position:				
Net Investment in capital assets	(6,979,119)	(6,696,903)	
Restricted for capital projects	352,673	385,663	
Restricted for contractual agreement	2,969,403	2,970,020	
Unrestricted	 	(6,168,920)	 	(5,359,847)	
Total net position	  $	(9,825,963)	  $	(8,701,067)	

The following is a summary of the District’s governmental activities for the fiscal years ended September 30, 2016 and 2015.

Revenues:

Changes in Net Position Year ended September 30,

2016	2015

Program revenues

$	271	$	98

General revenues	 	206,648	 	206,071	
Total revenues	 	206,919	 	206,169	
Expenses:
General government	
216,982	
221,743	
Maintenance and operations	271,400	277,318	
Interest on long-term debt	 	843,433	 	843,432	
Total expenses	 	1,331,815	 	1,342,493	
Change in net position	(1,124,896)	(1,136,324)	
Net position - beginning	 	(8,701,067)	 	(7,564,743)	
Net position - ending	  $	(9,825,963)	  $	(8,701,067)	

As noted above and in the statement of activities, the cost of all governmental activities during the year ended September 30, 2016 was $1,331,815. The majority of these costs are interest on long term debt.

Financial Analysis of the Government’s Funds

The District uses fund accounting to ensure and demonstrate compliance with finance related legal requirements. The focus of the District’s governmental funds is to provide information on near-term inflows, outflows and balances of spendable resources. Such information is useful in assessing the District’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year. At September 30, 2016, the District’s governmental funds reported combined ending fund balances of $(12,751,215). Of this total, $3,322,076 is restricted, $4,329 is nonspendable and the remainder of $(16,077,620) is unassigned.

The fund balances of the general, special revenue and capital projects funds did not change significantly from the prior year. The debt service fund balance deficit continues to increase  due to the nonpayment of the Series 2007 bonds.

General Fund Budgetary Highlights

An operating budget was adopted and maintained by the governing board for the District pursuant to the requirements of Florida Statutes. The budget is adopted using the same basis of accounting that is used in preparation of the fund financial statements. There were no budget amendments to the September 30, 2016 general fund budget. The legal level of budgetary control is at the fund level.

Capital Asset and Debt Administration

Capital Assets - At September 30, 2016, the District had $8,297,817 invested in capital  assets, net of accumulated depreciation. More detailed information about the District’s capital  assets is presented in the notes to the financial statements.

Capital Debt - At September 30, 2016, the District had $15,392,417 in bonds outstanding, which includes matured bonds payable of $10,370,000. More detailed information about the District’s capital debt is presented in the notes to the financial statements.

Requests for Information

If you have questions about this report or need additional financial information, contact the  Wyld Palms Community Development District’s Finance Department at Fishkind & Associates, Inc., 12051 Corporate Boulevard, Orlando, FL 32817.

FINANCIAL  STATEMENTS

STATEMENT  OF  NET POSITION

September  30, 2016

	Governmental
Activities	
Assets:		
Cash	$	64,765	
Prepaid costs	4,329	
Property held for sale	2,971,250	
Restricted assets:		
Temporarily restricted investments	468,168	
Capital assets not being depreciated	5,514,660	
Capital assets being depreciated, net	 	2,783,157	
Total assets	 	11,806,329

Liabilities:

Accounts payable and accrued expenses	7,239	
Matured bonds payable	10,370,000	
Matured interest payable	5,882,488	
Accrued interest payable	350,148	
Noncurrent liabilities:
Due within one year	
120,000	
Due in more than one year	 	4,902,417	

Total liabilities	 	21,632,292

Net Position:
Net Investment in capital assets	(6,979,119)	
Restricted for capital projects	352,673	
Restricted for contractual agreement	2,969,403	
Unrestricted	 	(6,168,920)	

Total net position	$	(9,825,963)

STATEMENT  OF ACTIVITIES

Year  Ended  September  30, 2016

Program Revenue Operating Grants	Capital Grants

Net (Expense) Revenue and Changes in Net Position

and		and	Governmental Functions/Programs	 Expenses		Contributions	Contributions		Activities
Governmental activities:
General government	$	216,982		$	-	$	-	$	(216,982)	
Maintenance and operations	271,400		-	-	(271,400)	
Interest on long-term debt	 	843,433		74	197	(843,162)	
Total governmental activities	$ 1,331,815		$	74	$	197	(1,331,544)	

General Revenues:	
Bondholder contributions	206,490	
Miscellaneous revenue	 	158	
Total general revenues	 	206,648	
Change in net position	(1,124,896)	
Net Position - beginning	 	(8,701,067)	
Net Position - ending	$	(9,825,963)	

BALANCE SHEET GOVERNMENTAL FUNDS

September  30, 2016

Assets:

 	General	

Special
Revenue	Debt Service

Capital Projects

Total Governmental Funds

Cash

$	62,292	$

2,473	$

-	$	-	$

64,765

Investments	-	-	115,495	352,673	468,168
Prepaid costs	2,503	-	1,826	-	4,329
Property held for sale	 	-		2,971,250		-	-	2,971,250	
Total assets	$	64,795		$	2,973,723		$	117,321	$	352,673	$	3,508,512	

Liabilities and Fund Balances:

Accounts payable and
accrued expenses	
$	2,919	
$	4,320	
$	-	
$	-	$	7,239	
Matured bonds payable	-	-	10,370,000	-	10,370,000	
Matured interest payable	 	-		-		5,882,488		-		5,882,488	
Total liabilities	 	2,919		4,320		16,252,488		-		16,259,727	

Fund balances:
Nonspendable-prepaid costs	2,503		

-		

1,826		

-		

4,329	
Capital projects	-		-		-		352,673		352,673	
Contractual agreement	-		2,969,403		-		-		2,969,403	
Unassigned	 	59,373		-		(16,136,993)		-		(16,077,620)	
Total fund balances	 	61,876		2,969,403		(16,135,167)		352,673		(12,751,215)	
Total liabilities and fund balances	$	64,795		$	2,973,723		$	117,321		$	352,673			

Liabilities:

Restricted:

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		
funds.	8,297,817	
Liabilities not due and payable from current available resources are not reported in the governmental fund statements. All liabilities, both current and long-term, are reported in the government-wide statements.		
Accrued interest payable	(350,148)		
Bonds payable	 	(5,022,417)	(5,372,565)	

Net Position of Governmental Activities	$	(9,825,963)	

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS

Year  Ended  September  30, 2016

 	General	

Special
Revenue	Debt Service

Capital Projects

Total Governmental Funds

Revenues:		
Bondholder contributions	$	-	$	206,490		$	-		$	-		$	206,490	
Investment income	-	-		74		197		271	
Miscellaneous revenue	 	158	-		-		-		158	
Total revenues	 	158	206,490		74		197		206,919	
Expenditures:
Current:								
General government	31,563		120,373		65,046		-		216,982	
Maintenance and operations
Debt Service:	54,786		4,272		-		-		59,058	
Interest	-		-		840,355		-		840,355	
Principal	 	-		-		115,000		-		115,000	
Total expenditures	 	86,349		124,645		1,020,401		-		1,231,395	

Excess (Deficit) of Revenues Over										
Expenditures	(86,191)		81,845		(1,020,327)		197		(1,024,476)	
Other Financing Sources (Uses) :										
Transfers in	115,649		33,187		-		-		148,836	
Transfers out	 	-		(115,649)		-		(33,187)		(148,836)	
Total other financing sources (uses)	 	115,649		(82,462)		-		(33,187)		-	
Net change in fund balances	29,458		(617)		(1,020,327)		(32,990)		(1,024,476)	
Fund Balance - beginning of year	 	32,418		2,970,020		(15,114,840)		385,663		(11,726,739)	
Fund Balance - end of year	  $	61,876		  $	2,969,403		  $ (16,135,167)		  $	352,673		  $ (12,751,215)	

RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES

Year  Ended  September  30, 2016

Amounts reported for Governmental Activities in the Statement of Activities are different because:		
Net Change in Fund Balances - total governmental funds (page 10)	$	(1,024,476)	
Depreciation on capital assets is not recognized in the governmental fund statement, however it is reported as an expense in the statement of activities.	
(212,342)	
Repayments of long-term liabilities are reported as expenditures in governmental funds, while		
repayments reduce long-term liabilities in the statement of net position.	115,000	
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.		
Amortization of bond discount	 	(3,078)	

Change in Net Position of Governmental Activities (page 8)	
$	(1,124,896)	

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL - GENERAL FUND

Year  Ended  September  30, 2016

Revenues:

Budgeted Amounts
 	Original		Final

Actual Amounts

Variance with Final Budget Positive (Negative)

Bondholder contributions

$	113,027

$	113,027	$

-	$	(113,027)

Miscellaneous revenue	 	-	 	-	158		158	
Total revenues	 	113,027	113,027	158		(112,869)	

Expenditures:
Current:
General government	59,605	59,605	31,563	28,042	
Maintenance and operations	 	53,422	53,422	54,786	(1,364)	

Total expenditures	 	113,027	113,027	86,349	26,678

Excess (Deficit) of Revenues Over
Expenditures	-	-	(86,191)	(86,191)

Other Financing Sources (Uses):
Transfers in	 	-		-	115,649		115,649	
Total other financing sources (uses)	 	-		-	115,649		115,649	

Net change in fund balance	
-		
-	29,458		
29,458	
Fund Balance - beginning of year	 	32,418		32,418	32,418		-	
Fund Balance - end of year	$	32,418		$	32,418	$	61,876		$	29,458	

NOTES TO FINANCIAL STATEMENTS

NOTES TO FINANCIAL STATEMENTS

Year  Ended  September  30, 2016

Note 1 - Summary of Significant Accounting Policies:

Reporting Entity

The Wyld Palms Community  Development  District, (the “District”)  was established  on November 8, 2006 by City of Inverness Ordinance 2006-644, pursuant to the Uniform Community Development District Act of 1980, otherwise known as Chapter 190, Florida Statutes. The Act provides, among other things, the power to manage basic services for community development, the power to borrow money and issue bonds, and the power to levy and assess non-ad valorem assessments for the financing and delivery of capital infrastructure. The District was established for the purpose 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 (the “Board”), which is composed of five members. The Supervisors are elected on an at large basis by the owners of the property within the District. The Board of Supervisors of the District exercises all powers granted to the District pursuant to Chapter 190, Florida Statutes.

The Board has 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.

The financial statements  were prepared in accordance  with Governmental  Accounting Standards Board (“GASB”)  Statements  14, 39 and 61. Under the provisions of those standards, the financial reporting entity consists of the primary government, organizations for which the District Board of Supervisors is considered to be financially accountable, and other organizations for which the nature and significance of their relationship with the District are such that, if excluded, the financial statements of the District would be considered incomplete or misleading. Based on this criteria, the special purpose entity Wyld Palm Holdings, LLC (“SPE”) is considered a blended component unit.

The SPE was formed for the purpose of taking ownership of all foreclosed property for the benefit of the bondholders. The property was formerly owned by the developer associated with the District. The SPE is wholly managed by the District pursuant to an operating agreement dated October 19, 2010. Certain officers of the District are also key members of management within the SPE organization. Although it is a separate legal entity from the District, the SPE is reported as if it was a part of the primary government. Separate financial statements for the SPE are not published.

Note 1 - Summary of Significant Accounting Policies (Continued): Government-Wide and Fund Financial Statements
The 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, 2) grants, contributions and investment earnings that are restricted to meeting the operational or capital requirements of a particular function or segment and 3) operating-type special assessments that are treated as charges for services (including assessments for maintenance and debt service). Other items not included among program revenues are reported instead as general revenues.

Measurement Focus, Basis of Accounting and Financial Statement Presentation

The government-wide  financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Assessments are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenues as soon as all eligibility requirements imposed by the provider have been met.

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

Assessments, including  debt service assessments and operation  and maintenance assessments, are non-ad valorem assessments imposed on all lands located within the District and benefited by the District’s activities. Operation and maintenance special assessments are levied by the District prior to the start of the fiscal year which begins October 1st and ends on September 30th. These assessments are imposed upon all benefited lands located in the District. Debt service special assessments are imposed upon certain lots and lands as described in each resolution imposing the special assessment for each series of bonds issued by the District. Certain debt service assessments are collected upon the closing of those lots subject to short term debt and are used to prepay a portion of the bonds outstanding.

Note 1 - Summary of Significant Accounting Policies (Continued):

Measurement Focus, Basis of Accounting and Financial  Statement  Presentation (Continued):

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

The District reports the following major governmental funds:

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

Special Revenue Fund - accounts for the operations of the SPE.

Debt Service Fund - accounts for the accumulation of resources for the annual payment of principal and interest on long-term debt.

Capital Projects Fund - accounts for the financial resources to be used in the acquisition or construction of major infrastructure within the District financed with the Series 2007 Bonds.

As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. When both restricted and unrestricted resources are available for use, it  is the District’s policy to use restricted resources first, then unrestricted resources as they are needed.

Assets, Liabilities,  Deferred Outflows/Inflows  of Resources  and Net Position/Fund Balance

Restricted Assets - These assets represent cash and investments set aside pursuant to bond covenants.

Deposits and Investments - The District’s cash and cash equivalents are considered to be cash on hand and demand deposits.

Investments of the District are reported at fair value and are categorized within the fair value hierarchy established in accordance with GASB Statement No. 72, Fair Value Measurement and Application. The District’s investments consist of investments authorized in accordance with Section 218.415, Florida Statutes.

Receivables - All receivables are shown net of allowance for uncollectible accounts.

Note 1 - Summary of Significant Accounting Policies (Continued):

Assets, Liabilities,  Deferred Outflows/Inflows  of Resources  and Net Position/Fund Balance (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.

Capital Assets - Capital assets, which include property, plant, equipment and infrastructure assets (e.g., roads, sidewalks and similar items), are reported in the applicable governmental activities column 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 and an estimated useful life in excess of two years. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation.

The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized.

Major outlays for capital assets and improvements are capitalized as projects are constructed. Property, plant and equipment of the District are depreciated using the straight-line method over the following estimated useful lives:

 	Assets		 	Years		
Roadways, Parks, Courts & Fields	20	
Stormwater Management System	25	
Buildings	30	

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

In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond 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 expenditures.

Deferred Outflows/Inflows of Resources - In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial  statement element,  deferred  outflows of resources, represents  a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The District does not have any item that qualifies for reporting in this category for the year ended September 30, 2016.

Note 1 - Summary of Significant Accounting Policies (Continued):

Assets, Liabilities,  Deferred Outflows/Inflows  of Resources  and Net Position/Fund Balance (Continued):

Deferred Outflows/Inflows of Resources (Continued)  - In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The District does not have any item that qualifies for reporting in this category for the year ended September 30, 2016.

Net Position Flow Assumption - Sometimes the District will fund outlays for a particular purpose from both restricted and unrestricted resources. In order to calculate the amounts to report as restricted net position and unrestricted net position in the government-wide financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the District’s policy to consider restricted net position to have been depleted before unrestricted net position is applied.

Fund Balance Flow Assumptions - Sometimes the District will fund outlays for a particular purpose from both restricted and unrestricted resources (total of committed, assigned, and unassigned fund balance). In order to calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements a flow assumption must be made about the order in which the resources are considered to be  applied. It is the District’s policy to consider restricted fund balance to have been depleted before using any of the components of unrestricted fund balance. Further, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last.

Fund Balance Policies - Fund balance of governmental funds is reported in various categories based on the nature of any limitations requiring the use of resources for specific purposes. The District itself can establish limitations on the use of resources through either commitment (committed fund balance) or an assignment (assigned fund balance).

The committed fund balance classification includes fund balance amounts that can be used only for the specific purposes determined by a formal action of the government’s highest level of decision-making authority. The Board of Supervisors is the highest level of decision-making authority for the government that can, by adoption of an ordinance or resolution prior to the end of the fiscal year, commit fund balance. Once adopted, the limitation imposed by the ordinance or resolution remains in place until a similar action is taken to remove or revise the limitation.

Note 1 - Summary of Significant Accounting Policies (Continued):

Assets, Liabilities,  Deferred Outflows/Inflows  of Resources  and Net Position/Fund Balance (Continued):

Fund Balance Policies (Continued) - Amounts in the assigned fund balance classification are intended to be used by the government for specific purposes but do not meet the criteria to be classified as committed. The Board of Supervisors has authorized the District Manager to assign amounts for specific purposes. The Board of Supervisors may also assign fund balance as it does when appropriating fund balance to cover a gap between estimated revenue and appropriations in the subsequent  year’s appropriated  budget.  Unlike commitments, assignments generally only exist temporarily. In other words, an additional action does not normally have to be taken for the removal of an assignment. Conversely, as discussed above and additional action is essential to either remove or revise a commitment.

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 - Stewardship, Compliance and Accountability:

Budgetary Information

The District is required to establish a budgetary system and an approved annual budget for the General Fund. Annual budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America. All annual appropriations lapse  at the fiscal year end. The legal level of budgetary control is at the fund level. Any budget amendments that increase the aggregate budgeted appropriations, at the fund level, must be approved by the Board of Supervisors.

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 taxpayer comments.
Prior to October 1, the budget is legally adopted by the District Board.
All budget changes must be approved by the District Board.
The budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America.

Deficit Fund Balance

The Debt Service Fund has a deficit fund balance at September 30, 2016, causing a total net fund balance deficit.

Note 3 - Deposits and Investments:

Deposits

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

Investments

The District categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The fair value is 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. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. The District adopted GASB 72 during the fiscal year.

Under GASB 72, assets or liabilities are classified into one of three levels. Level 1 is the most reliable and is based on quoted price for identical assets, or liabilities, in an active market. Level 2 uses significant other observable inputs when obtaining quoted prices for identical or similar assets, or liabilities, in markets that are not active. Level 3 is the least reliable, and uses significant unobservable inputs that uses the best information available under the circumstances, which includes the District’s own data in measuring unobservable inputs.

The District has the following recurring fair value measurements as of September 30, 2016:

Money market mutual funds of $468,168 are valued using Level 2 inputs.

Note 3 - Deposits and Investments (Continued):

Investments (Continued)

Instead of establishing a written investment policy, the District elected to limit investments to those approved by Florida Statutes and the District Trust Indentures. This policy allows investments in any financial institution that is a qualified public depository of the State of Florida as identified by the State Treasurer, in accordance with Chapter 280 of the Florida Statutes. Authorized District investments include:

The Local Government Surplus Funds Trust Fund (SBA);

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.

Investments made by the District at September 30, 2016 are summarized below. In accordance with GASB 31, investments are reported at fair value.

 	Investment Type		Fair Value

Credit Rating

Weighted Average Maturity

US Bank Money Market Account

$	468,168

A-1+	N/A

Note 4 - Capital Assets:

Capital asset activity for the year ended September 30, 2016 was as follows:

	Beginning
Balance		Ending
Additions	Reductions	Balance	
Governmental Activities:
Capital Assets Not Being Depreciated: Land	

$ 3,050,000		

$	-	$	-	$	3,050,000	
Construction in progress	2,464,660		-	-	2,464,660	
Total capital assets not being depreciated	5,514,660		-	-	5,514,660	

Capital Assets Being Depreciated: Roadways, parks, courts & fields	

2,786,938		

-	-	2,786,938	
Stormwater management system	703,719		-	-	703,719	
Buildings	1,345,373		-	-	1,345,373	
Total capital assets being depreciated	4,836,030		-	-	4,836,030	

Less Accumulated Depreciation for:				
Roadways, parks, courts & fields	(1,178,906)		(139,347)	-	(1,318,253)	
Stormwater management system	(302,784)		(28,149)	-	(330,933)	
Buildings	(358,841)		(44,846)	-	(403,687)	
Total Accumulated Depreciation	(1,840,531)		(212,342)	-	(2,052,873)	

Total capital assets being depreciated, net	
2,995,499		
(212,342)	-	2,783,157	
Governmental activities capital assets, net	$ 8,510,159		$	(212,342)	$	-	$	8,297,817	

Depreciation expense in the amount of $212,342 was allocated to maintenance and operations on the Statement of Activities. The infrastructure under construction is on hold due to the District’s financial issues.

Note 5 - Long-Term Liabilities:

In February 2007, the District issued $15,535,000 of Capital Improvement Revenue Bonds, Series 2007, consisting of $5,865,000 Series 2007A Bonds and $9,670,000 of Series 2007B Bonds with fixed interest rates of 5.50% and 5.40%, respectively. Interest is paid semiannually on each May 1 and November 1. Principal on the Series 2007A Bonds are made serially commencing on May 1, 2009 through May 1, 2038. Principal on the Series 2007B Bonds is due on May 1, 2015.

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 District on assessments to property owners. Property owners have not paid the District’s levied assessments and the District’s existing resources were not sufficient to make the debt service payments. With the consent of bondholders, the District has used debt service funds and capital projects funds to pay for certain operating expenditures due to lack of  developer funding. As described below, the District is not in compliance with its Bond Indenture.

Note 5 - Long-Term Liabilities (Continued):
The Bond Indenture requires that the District maintain adequate funds in reserve accounts to meet the debt service reserve requirement as defined in the Indenture. This requirement has  not been met for the Series 2007 Bonds for the fiscal year ended September 30, 2016. In addition, the District has not made any scheduled debt service payments since May 2009. Accordingly, the District has recorded on its fund-level statements a debt service obligation totaling $16,252,488, which represents the unpaid principal and interest payments.
Total principal and interest remaining on the Series 2007 Bonds at September 30, 2016 is
$25,870,313.  Of  this  amount,  $10,370,000   is  recorded  as  matured   bonds  payable, and
$5,882,488 is recorded as matured interest payable. For the year ended September 30, 2016, no principal or interest was paid. Interest due of $840,355 and principal due of $115,000 was accrued to matured interest payable and matured bonds payable. There was no pledged revenue in the current year.
Long-term debt activity for the year ended September 30, 2016 was as follows:

	Beginning
Balance		
Additions		
Reductions		Ending
Balance		Due Within
One Year	
Governmental activities:
Bonds Payable:										
Series 2007A	$	5,200,000		$	-		$ (115,000)		$	5,085,000		$	120,000	
Unamortized discount	 	(65,661)		-		3,078		(62,583)		-	

Governmental activity long- term liabilities

$	5,134,339	$

-	$ (111,922)

$	5,022,417

$	120,000

The above schedule shows a principal reduction of $115,000 that was due but was not paid. The beginning balance is reduced by $10,255,000, which was also not paid, but accrued to matured bonds payable in prior years.
At September 30, 2016, the scheduled debt service requirements on the bonds payable were as follows:

Governmental Activities
Year Ending
September 30,		
Principal		
Interest	
2017		$	120,000		$	311,850	
2018		130,000		305,250	
2019		135,000		298,100	
2020		145,000		290,675	
2021		150,000		282,700	
2022 - 2026		900,000		1,278,750	
2027 - 2031		1,185,000		1,001,825	
2032 - 2036		1,565,000		636,350	
2037 - 2038		 	755,000		127,325	
		  $	5,085,000		  $	4,532,825	

Note 6 - Interfund Transfers:

The SPE transferred $115,649 to the general fund under the terms of the funding agreement (Note 9). In addition, at the direction of the Bondholders, the District transferred $33,187 from the capital projects fund to the SPE. The transfers and funding provided for the operation and maintenance of the District.

Note 7 - Net Deficit:

The District has a government wide net deficit of $9,825,963 at September 30, 2016. The deficit results from uncollected debt assessments.

Note 8 - 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. These risks are covered by commercial insurance from independent third parties. The District has not filed any claims  under this commercial coverage during the last three years.

Note 9 - Concentration:

In a prior year, the District initiated foreclosure proceedings on all assessed property in the District. Upon successful completion of the foreclosure in 2010, with the consent of the bondholders, the District entered into an agreement with the Trustee and the SPE. In accordance with the agreement, the SPE now owns all developable property within the District and will market the land available for purchase.

The SPE is not required to remit debt service assessments to the District. The outstanding balance on the Bonds is not forgiven, and the original trust indenture has not been modified. Scheduled principal and interest payments are reflected in the accompanying financial statements and notes in accordance with the terms of the original indenture. The ultimate resolution of issues surrounding the foreclosed property may significantly affect these amounts in future financial statements.

In connection with the foreclosure, the SPE acquired title to all developable property within the District. The fair value is based on the assessed taxable value provided by the County Property Appraiser, at the time of foreclosure. At September 30, 2016, the District still reports property  held for sale totaling $2,971,250.

Note 10 - Subsequent Event:

The District was unable to make its scheduled November 1, 2016 and May 1, 2017 debt service payment on the Series 2007 Bonds.

COMPLIANCE SECTION

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
Wyld Palms Community Development District

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 of the Wyld Palms Community Development District (the “District”) as of and for the year ended September 30, 2016, and the related notes to the financial statements, which collectively comprise the District’s financial statements and have issued our report thereon dated June 28, 2017.

Internal Control Over Financial Reporting

In planning and performing our audit of the financial statements, we considered the District’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the District’s internal control. Accordingly, we do not express an opinion on the effectiveness of the District’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal 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 over financial reporting that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

MCDIRMIT DAVIS & COMPANY, LLC
934 NORTH MAGNOLIA AVENUE, SUITE 100 ORLANDO, FLORIDA 32803
TELEPHONE: 407-843-5406 FAX: 407-649-9339 EMAIL: INFO@MCDIRMITDAVIS.COM

MEMBERS: PRIVATE COMPANIES PRACTICE SECTION AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS

Compliance and Other Matters

As part of obtaining reasonable assurance about whether the District’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations and contracts, 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 certain instances of noncompliance. See Appendix A of the accompanying report to management dated June 28, 2017.

The District’s response to our findings identified in our audit is included in this report. We did  not audit the District’s response, and accordingly, we express no opinion on it.

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 District’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 District’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Orlando, Florida June 28, 2017

MANAGEMENT COMMENTS

Board of Supervisors
Wyld Palms Community Development District

We have audited the financial statements of the Wyld Palms Community Development District (the “District”), as of and for the fiscal year ended September 30, 2016, and have issued our report thereon dated June 28, 2017.

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 Reports

We have issued our Independent Auditor’s Report on Internal Control over Financial Reporting and Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards and Independent Auditor’s Report on an examination conducted in accordance with AICPA Professional Standards, Section 601, regarding compliance requirements in accordance with Chapter 10.550, Rules of the Auditor General. Disclosures in those reports, which are dated June 28, 2017, should be considered in conjunction with this management letter.

Prior Audit Findings

Section 10.554(1)(i.)1., Rules of the Auditor General, require that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. Corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report, except as noted  below.

Tabulation of Uncorrected Audit Findings	
Current Year Finding #	2014-15 FY Finding #	2013-2014 FY Finding #	
ML 14-01	ML 14-01	ML 14-01	

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 has been disclosed in the notes to the financial statements.
MCDIRMIT DAVIS & COMPANY, LLC
934 NORTH MAGNOLIA AVENUE, SUITE 100 ORLANDO, FLORIDA 32803
TELEPHONE: 407-843-5406 FAX: 407-649-9339 EMAIL: INFO@MCDIRMITDAVIS.COM

MEMBERS: PRIVATE COMPANIES PRACTICE SECTION AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS

Financial Condition

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

Pursuant to Sections 10.554(1)(i)5.c. and 10.556(8), Rules of the Auditor General, we applied financial condition assessment procedures. It is management’s responsibility to monitor the District financial condition, and our financial condition assessment was based in part on representations made by management and the review of financial information provided by same. Deteriorating financial conditions were noted, as indicated above under section 10.554(1)(i)5.a.

Annual Financial Report

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

Other Matters

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

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

Purpose of this Letter

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

Orlando, Florida June 28, 2017

APPENDIX A - COMPLIANCE VIOLATIONS OF LAWS, REGULATIONS AND CONTRACTUAL PROVISIONS

Year  Ended  September  30, 2016

14-01 - Compliance with Bond Indenture Covenants

Criteria
The Special Assessment Revenue Bond Series 2007 requires the District 1) make semi- annual debt service principal and interest payments and 2) maintain adequate funds in a reserve account to meet the reserve requirement as defined in the Indenture.

Condition
The District has not made the required payments since May 2009. At September 30, 2016, the District did not meet the reserve requirement on the Series 2007 Bonds.

Cause
The District foreclosed on all property within the District in a prior year due to nonpayment of assessments.

Effect
The District is not in compliance with the requirements of the Bond Indenture.

Recommendation
We recommend the District use all available efforts to sell the foreclosed property and redeem the Series 2007 Bonds.

Management Response
The District successfully foreclosed on all property within the District that was assessed to secure the District’s Series 2007A and 2007B Bonds, in compliance with the terms of the applicable Bond Trust Indentures. The foreclosed property is being held for the benefit of  the bondholders. When this property is sold, the proceeds from the sale will be used to redeem bonds. All District actions related to the Series 2007A and 2007B Bonds are made in coordination with the bond trustee and bondholders.

APPENDIX B - CONDITION OF FINANCIAL EMERGENCY

Year  Ended  September  30, 2016

14-01 - Compliance with Bond Indenture Covenants

The District did not pay the principal and interest due on the Series 2007 Bonds due to lack of funds; therefore the District meets Section 218.503(1)(a) as a financial emergency condition.

Management Response
The District successfully foreclosed on all property within the District that was assessed to secure the District’s Series 2007A and 2007B Bonds, in compliance with the terms of the applicable Bond Trust Indentures. The foreclosed property is being held for the benefit of  the bondholders. When this property is sold, the proceeds from the sale will be used to redeem bonds. All District actions related to the Series 2007A and 2007B Bonds are made in coordination with the bond trustee and bondholders.

INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE WITH THE REQUIREMENTS OF SECTION 218.415, FLORIDA STATUTES

Board of Supervisors
Wyld Palms Community Development District

We have examined Wyld Palms Community Development District’s (the “District”) compliance with the requirements of Section 218.415, Florida Statutes, during the year ended September 30, 2016. Management is responsible for the District’s  compliance  with those requirements.  Our responsibility is to express an opinion on the District’s compliance based on our examination.

Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and the standards applicable to attestation engagements contained in Government Auditing Standards issued by the Comptroller General of the United States and, accordingly, included examining, on a test basis, evidence about the District’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a  reasonable basis for our opinion. Our examination does not provide a legal determination on the District’s compliance with specified requirements.

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

Orlando, Florida June 28, 2017

MCDIRMIT DAVIS & COMPANY, LLC
934 NORTH MAGNOLIA AVENUE, SUITE 100 ORLANDO, FLORIDA 32803
TELEPHONE: 407-843-5406 FAX: 407-649-9339 EMAIL: INFO@MCDIRMITDAVIS.COM

MEMBERS: PRIVATE COMPANIES PRACTICE SECTION AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS