Westside Community Development District ANNUAL FINANCIAL REPORT
September 30, 2016

Westside Community Development District ANNUAL FINANCIAL REPORT
September 30, 2016 TABLE OF CONTENTS

Page Number

REPORT OF INDEPENDENT AUDITORS	1-3
MANAGEMENT’S DISCUSSION AND ANALYSIS	4-9
BASIC FINANCIAL STATEMENTS
Government-wide Financial Statements
Statement of Net Position	10
Statement of Activities	11
Fund Financial Statements
Balance Sheet – Governmental Funds	12
Reconciliation of Total Governmental Fund Balances
to Net Position of Governmental Activities	13
Statement of Revenues, Expenditures and Changes in
Fund Balances – Governmental Funds	14
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds
to the Statement of Activities	15
Statement of Revenues, Expenditures and Changes in Fund
Balances – Budget and Actual – General Fund	16
Notes to Financial Statements	17-29
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	30-31
MANAGEMENT LETTER	32-34
INDEPENDENT ACCOUNTANT’S REPORT / COMPLIANCE WITH
SECTION 218.415, FLORIDA STATUTES	35

��ii Berger, Toombs, Elam,
.....o,,  Gaines &  Frank
Certified Public AccountanlS	PL
600 Citrus Avenue
Suite 200
Fort Pierce, Florida 34950
772/461-6120 // 461-1155
FAX: 772/468-9278

REPORT OF INDEPENDENT AUDITORS

To the Board of Supervisors
Westside Community Development District Osceola County, Florida

Report on the Financial Statements
We have audited the accompanying basic financial statements of Westside Community Development District as of and for the year ended September 30, 2016, as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a

basis for our audit opinion.

Member AICPA

Fort !t�e I Stuart
Member AICPA Division For CPA Firms Private Companies Practice Section

Member FICPA

� Berger, Toombs, Elam,

� Gaines & Frank

To the Board of Supervisors
Westside Community Development District

Basis for Adverse Opinion on the Discretely Presented Component Units
The financial statements do not include financial data for one of the District's legally separate component units. Accounting principles generally accepted in the United States of America require the financial data for the component unit to be reported with the financial data of the District's primary government unless the District also issues financial statements for the financial reporting entity that include the financial data for its component unit. The District has not issued such reporting entity financial statements. Because of this departure from accounting principles generally accepted in the United States of America, the assets, liabilities, net position, revenues, and expenses of the aggregate discretely presented component units should have been presented.
Adverse Opinion
In our opinion, because of the significance of the matter discussed in the "Basis for Adverse Opinion on the Discretely Presented Component Units", the financial statements referred to above do not present fairly, the financial position of the discretely presented component units of the District as of September 30, 2016, or the changes in financial position thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Qualified Opinion
In our opinion, except for the effects of the matter described in the "Basis for Adverse Opinion on the Discretely Presented Component Unit" paragraph, the financial statements referred to above present fairly, in all material respects, the financial position of the aggregate remaining fund information of the District as of September 30, 2016, and the respective changes in financial position thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Unmodified Opinions
In our opinion, the financial statements referred to previously present fairly, in all material respects, the respective financial position of the governmental activities and each major fund of the District, as of September 30, 2016, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America.

'-QI

00 Berger, Toombs, Elam, Gaines & Frank

To the Board of Supervisors
Westside Community Development District

ORethqeurireMdattSeurpsplementary Information

financial statements, is required by Governmental Accounting Standards Board

Governmental accounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis and budgetary comparison be presented to supplement the basic financial statements. Such information, although not a part of the basic

Government Auditing Standards,

who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures in accordance with governmental auditing standards generally accepted in the United States of America, which consisted principally of inquires of management regarding the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Other Reporting Required by Government Auditing Standards

In accordance with	we have also issued a report dated June 28, 2017 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 and contracts.

Government Auditing Standards

The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with	in considering Westside Community Development District's internal control over financial reporting and compliance.

Jm.u-- -Mt2U. JUJJ�� \1-A[!t114it�
Berger, Toombs, Elam, Gaines & Frank Certified Public Accountants PL
Fort Pierce, Florida June 28, 2017

Management’s discussion and analysis of Westside Community Development District (the “District”) financial performance provides an objective and easily readable analysis of the District’s financial activities. The analysis provides summary financial information for the District and should be read in conjunction with the District’s financial statements.

OVERVIEW OF THE FINANCIAL STATEMENTS

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

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

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

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

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

OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)

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

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

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

Financial Highlights

The following are the highlights of financial activity for the year ended September 30, 2016.

The District’s total liabilities exceeded total assets by $(4,086,832), (net position). Unrestricted net position for Governmental Activities was $(6,257,003). Net investment in capital assets was $2,142,383. Restricted net position was $27,788.

Governmental activities revenues totaled $9,596,301 while governmental activities expenses totaled $4,670,759.

OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)

Financial Analysis of the District

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

Net Position

Governmental Activities

 	2016		 	2015	

Current assets	$	707,718	$	587,656	
Restricted assets	6,283,519	5,488,808	
Capital assets	 	30,390,708 	 	31,359,115 	
Total Assets	 	37,381,945 	 	37,435,579 	
Current liabilities	11,477,045	15,721,416	
Non-current liabilities	 	29,991,732 	 	30,726,537 	
Total Liabilities	 	41,468,777 	 	46,447,953 	

Net investment in capital assets	2,142,383	2,488,778	
Net position - restricted	27,788	28,065	
Net position - unrestricted	 	(6,257,003) 	 	(11,529,217) 	
Total Net Position	$	(4,086,832)	$	(9,012,374)	

The increase in current assets and restricted assets is mostly the result of the contribution received from the SPE in the current year.

The decrease in capital assets and net investment in capital assets is primarily the result of current year depreciation.

The decrease in current liabilities and increase in unrestricted net position is mostly the result of payments made on matured debt service in the current year.

OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)

Financial Analysis of the District (Continued)

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

Change in Net Position
Governmental Activities
	 	2016			2015	
Program Revenues Charges for services	
$ 1,330,215		
$ 1,032,892	
Operating grants and contributions General Revenues
Investment earnings	8,261,520

2,734		4,147,885

820	
Miscellaneous revenues	 	1,832 		-	
Total Revenues	 	9,596,301 		5,181,597	

Expenses
General government	

705,764		

132,015	
Physical environment	1,212,815		1,212,595	
Interest on long term debt	 	2,752,180 		3,145,387	
Total Expenses	 	4,670,759 		4,489,997	

Change in Net Position	
4,925,542		
691,600	
Net Position - Beginning of Year	 	(9,012,374)		(9,703,974)	

Net Position - End of Year	
$ (4,086,832)		
$ (9,012,374)	

The increase in operating grants and contributions is mostly attributable to contributions received from landholders as a result of land sale proceeds.

The increase in general government expenses was primarily due to the reclassification of expenses recorded as other debt service costs in the prior year.

OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)

Capital Assets Activity

The following schedule provides a summary of the District’s capital assets as of 2016 and 2015.

Governmental Activities

 	Description		 	2016		 	2015	

Land improvements	$	11,525,151	$	11,525,151	
Construction in progress	-	727,346	
Improvements other than buildings	726,955	726,955	
Infrastructure	26,986,750	26,259,404	
Accumulated depreciation	 	(8,848,148)	 	(7,879,741)	
Total Capital Assets (Net)	  $	30,390,708 	  $	31,359,115 	

During the year, $727,346 was transferred from construction in progress to infrastructure and
$968,407 in depreciation was recorded.

General Fund Budgetary Highlights

The budget exceeded actual expenditures for the year primarily because the budgeted operating reserve was not used.

There were no amendments to the September 30, 2016 budget.

Debt Management

Governmental Activities debt includes the following:

In December 2005, the District issued $17,525,000 Series 2005 Special Assessment Revenue Bonds. The Bonds are the second of a series of debt to be issued by the District and were issued to retire the $4,000,000 Bond Anticipation Notes in 2006, and finance the costs of acquisition, construction, installation and equipping of certain assessable improvements within the District. During the year, the District failed to meet the scheduled debt service requirements and the Series 2005 Bonds remain in default. Matured bonds payable totaled $1,880,000 at September 30, 2016. The unmatured balance outstanding at September 30, 2016 was $14,915,000.

OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)

Debt Management (Continued)

In December 2007, the District issued $17,510,000 Series 2007 Special Assessment Revenue Bonds. The bonds were issued to finance the construction of certain improvements and infrastructure within certain areas of the District. During the year, the District failed to meet the scheduled debt service requirements and the Series 2007 Bonds remain in default. Matured bonds payable totaled $440,000 at September 30, 2016. The unmatured balance outstanding at September 30, 2016 was $15,735,000.

In September 2014, the District reached an agreement with a contractor of the prior developer to pay them $290,000 over five years. The balance remaining on September 30, 2016 was $161,250.

Economic Factors and Next Year’s Budget

The District's overall financial condition improved in the current year. The District received legal settlements relating to past due assessments and the District made unscheduled interest and principal payments on the Series 2005 and Series 2007 bonds.

Additionally, the District received proceeds in the current year resulting from sales of property held by Westside SPE, LLC and Westside CDD Holdings, LLC (SPEs) and also expects to receive assessments from the new developers allowing the District to fully fund operations and capital improvements deemed necessary.

Request for Information

The financial report is designed to provide a general overview of Westside Community Development District’s finances for all those with an interest. Questions concerning any of the information provided in this report or requests for additional information should be addressed to the Westside Community Development District, Governmental Management Services, 135 W. Central Blvd, Suite 320, Orlando, FL 32801.

Westside Community Development District	
STATEMENT OF NET POSITION	
September 30, 2016	
	Governmental		Component	
	Activities		Unit	
ASSETS				
Current Assets				
Cash	$	689,457		$	22,404	
Due from other govenments	4,602		-	
Prepaid expenses	 	13,659 		 	- 	
Total Current Assets	 	707,718 		 	22,404 	
Non-Current Assets				
Restricted:				
Investments	6,256,121		-	
Cash	27,398		-	
Capital Assets Not Being Depreciated:				
Land and improvements	11,525,151		-	
Capital Assets Being Depreciated:				
Improvements other than buildings	726,955		-	
Infrastructure	26,986,750		-	
Less: accumulated depreciation	 	(8,848,148)		 	- 	
Total Non-Current Assets	 	36,674,227 		 	- 	
Total Assets	 	37,381,945 		 	22,404 	
LIABILITIES				
Current Liabilities				
Accounts payable and accrued expenses	94,913		-	
Matured interest payable	5,240,700		-	
Matured bonds payable	2,320,000		-	
Accrued interest	3,082,682		-	
Bonds payable-current	685,000		-	
Note payable - current	 	53,750 		 	- 	
Total Current Liabilities	 	11,477,045 		 	- 	
Non-Current Liabilities				
Bonds payable	29,884,232		-	
Note payable	 	107,500 		 	- 	
Total Non-Current Liabilities	 	29,991,732 		 	- 	
Total Liabilities	 	41,468,777 		 	- 	
NET POSITION				
Net investment in capital assets	2,142,383		-	
Restricted for capital projects	27,788		-	
Restricted component unit	-		22,404	
Unrestricted	(6,257,003)		-	
Total Net Position	  $	(4,086,832)		  $	22,404 	

See accompanying notes to financial statements.

- 10 -

Westside Community Development District	
STATEMENT OF ACTIVITIES	
For the Year Ended September 30, 2016	
								
Net (Expenses)			
								Revenues and			
				Program		Changes in			
				Revenues		Net Position			
						Operating					
				Charges for		Grants and		Governmental		Component	
Functions/Programs		Expenses		Services		Contributions		Activities		Unit	
Primary government											
Governmental Activities											
General government		$	(705,764)		$	511,841		$	125,871		$	(68,052)		$	-	
Physical environment		(1,212,815)		177,252		-		(1,035,563)		-	
Interest and other costs		 	(2,752,180)		 	641,122 		 	8,135,649 		 	6,024,591 		 	- 	
Total Governmental Activities		  $	(4,670,759)		  $	1,330,215 		  $	8,261,520 		4,920,976		-	

Component unit											
Westside SPE, LLC		  $	(4,067,069)		  $	- 		  $	88,832 		-		(3,978,237)	
	
General revenues:						
	Investment earnings			2,734		-	
	Miscellaneous revenues			1,832		400,000	
	Land sale proceeds			 	- 		 	3,600,425 	
	Total General Revenues			 	4,566 		 	4,000,425 	
	Change in Net Position			4,925,542		22,188	
	Net Position - October 1, 2015			 	(9,012,374)		 	216 	
	Net Position - September 30, 2016			  $	(4,086,832)		  $	22,404 	

See accompanying notes to financial statements.

Westside Community Development District	
BALANCE SHEET	
GOVERNMENTAL FUNDS	
September 30, 2016	
Governmental Funds	
			Debt		Debt						Total	
			Service		Service		Capital		Capital		Governmental	
ASSETS	     General			    2005 Bonds 		  2007 Bonds 		 Projects 2005		 Projects 2007		 	Funds		
Cash	$ 689,457		$	-		$	-		$	-		$	-		$	689,457	
Due from other governments	1,198		1,510		1,894		-		-		4,602	
Prepaid expenses	13,659		-		-		-		-		13,659	
Restricted assets:												
Investments, at fair value	-		1,106,930		5,148,801		390		-		6,256,121	
Cash	 	- 		 	- 		 	- 		 	- 		 	27,398 		 	27,398 	
Total Assets	$ 704,314		$	1,108,440		$ 5,150,695		$	390		$	27,398		$	6,991,237	

LIABILITIES AND FUND BALANCES												
LIABILITIES												
Accounts payable and accrued expenses	$	45,437		$	40,313		$	9,163		$	-		$	-		$	94,913	
Matured interest payable	-		-		5,240,700		-		-		5,240,700	
Matured principal payable	 	- 		 	1,880,000 		 	440,000 		 	- 		 	- 		 	2,320,000 	
Total Liabilities	 	45,437 		 	1,920,313 		 	5,689,863 		 	- 		 	- 		 	7,655,613 	
FUND BALANCES												
Nonspendable - prepaid expenses	13,659		-		-		-		-		13,659	
Restricted for capital projects	-		-		-		390		27,398		27,788	
Unassigned	 	645,218 		 	(811,873)		 	(539,168)		 	- 		 	- 		 	(705,823)	
Total Fund Balances	 	658,877 		 	(811,873)		 	(539,168)		 	390 		 	27,398 		 	(664,376)	

Total Liabilities and Fund Balances	
$ 704,314		
$	1,108,440		
$ 5,150,695		
$	390		
$	27,398		
$	6,991,237	

See accompanying notes to financial statments.

Westside Community Development District		
RECONCILIATION OF TOTAL GOVERNMENTAL FUND BALANCES	
TO NET POSITION OF GOVERNMENTAL ACTIVITIES		
September 30, 2016		

Total Governmental Fund Balances	

$	(664,376)	
Amounts reported for governmental activities in the Statement of Net Position		
are different because:		
Capital assets not being depreciated (land and improvements ($11,525,151)		
used in governmental activities are not current financial resources and therefore,		
are not reported at the fund level.	11,525,151	
Capital assets being depreciated (improvements other than buildings ($726,955),		
infrastructure ($26,986,750) net of accumulated depreciation ($(8,848,148))		
used in governmental activities are not current financial resources and therefore,		
are not reported at the fund level.	18,865,557	
Bond discount costs ($109,438), net of accumulated amortization ($(28,670)) used in		
governmental activities are not current financial resourses and therefore, are not		
reported at the fund level.	80,768	
Long-term liabilities, including bonds payable and notes payable are not due and		
payable in the current period, and therefore are not reported at the fund level.	(30,811,250)	
Accrued interest expense for long-term debt is not a current financial use and; therefore	
is not reported at the fund level.	(3,082,682)	

Net Position of Governmental Activities	
  $	(4,086,832)	

Westside Community Development District	
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -	
GOVERNMENTAL FUNDS	
For the Year Ended September 30, 2016	
Governmental Funds	
											Totals	
			Debt Service		Debt Service		Capital		Capital		Governmental	
	    General 		  2005 Bonds 		  2007 Bonds 		 	Projects 2005			  Projects 2007		 	Funds		
Revenues												
Special assessments	$ 689,093		$	284,460		$	356,662		$	-		$	-		$	1,330,215	
Developer contributions	125,871		-		-		-		-		125,871	
Landholder contributions	-		3,945,863		3,923,451		-		-		7,869,314	
Legal settlements	42,919		299,936		151,052		-		-		493,907	
Investment earnings	235		916		1,572		-		11		2,734	
Miscellaneous revenues	 	1,832 		 	- 		 	- 		 	- 		 	- 		 	1,832 	
Total Revenues	859,950		4,531,175		4,432,737		-		11		9,823,873	
Expenditures												
Current												
General government	120,456		292,510		292,510		-		288		705,764	
Physical environment	244,408		-		-		-		-		244,408	
Debt service												
Principal	53,750		360,000		280,000		-		-		693,750	
Interest	-		962,124		1,363,590		-		-		2,325,714	
Other debt service	 	- 		 	43,539 		 	35,563 		 	- 		 	- 		 	79,102 	
Total Expenditures	 	418,614 		 	1,658,173 		 	1,971,663 		 	- 		 	288 		 	4,048,738 	
Excess/(deficiency) of revenues												
over/(under) expenditures	 	441,336 		 	2,873,002 		 	2,461,074 		 	- 		 	(277)		 	5,775,135 	
Other financing sources (uses)												
Transfers in	-		-		825,562		-		-		825,562	
Transfers out	 	- 		 	(825,562)		 	- 		 	- 		 	- 		 	(825,562)	
Total Expenditures	-		(825,562)		825,562		-		-		-	

Net change in fund balances	
441,336		
2,047,440		
3,286,636		
-		
(277)		
5,775,135	
Fund Balances - October 1, 2015	217,541		(2,859,313)		(3,825,804)		390		27,675		(6,439,511)	

Fund Balances - September 30, 2016	
  $ 658,877 		
$ (811,873)		
$ (539,168)		
$	390		
$	27,398		
$	(664,376)	

Westside Community Development District		
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND	
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE	
STATEMENT OF ACTIVITIES		
For the Year Ended September 30, 2016		

Net Change in Fund Balances - Total Governmental Funds	
$ 5,775,135	
Amounts reported for governmental activities in the Statement of Activities are		
different because:		
Governmental funds report capital outlays as expenditures. However, in the		
Statement of Activities, the cost of those assets is allocated over their		
estimated useful lives as depreciation. This is the amount of		
depreciation in the current year.	(968,407)	
Repayments of bond principal are expenditures in the governmental funds		
funds and reduce long-term liabilities in the Statement of Net Position.	693,750	
Governmental funds report bond discounts as an expenditure. However,		
in the Statement of Activities, this cost is allocated over the bond repayment		
as amortization. This is the amount of amortization period in the		
current period.	(3,945)	
Revenues deferred in the prior period in the governmental funds statements		
were recognized in the current period. However, these amounts were		
recognized in the Statement of Activities in the prior period. This is the		
amount of revenues previously recognized in the Statement of Activities.	(227,572)	
In the Statement of Activities, interest is accrued on outstanding and matured		
bonds; whereas in governmental funds, interest expenditures are reported		
when due. This is the increase in accrued interest from the prior year.	(343,419)	

Change in Net Position of Governmental Activities	
$ 4,925,542	

Westside Community Development District	
STATEMENT OF REVENUES, EXPENDITURES AND	
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL -	
GENERAL FUND	
For the Year Ended September 30, 2016	
							
Variance with	
							Final Budget	
	Original		Final				Positive	
	Budget		Budget		Actual		(Negative)	
Revenues								
Special assessments	$ 681,730		$ 681,730		$ 689,093		$	7,363	
Developer contributions	-		-		125,871		125,871	
Legal settlements	42,919		42,919		42,919		-	
Investment earnings	180		180		235		55	
Miscellaneous revenues	-		-		1,832		1,832	
Total Revenues	724,829		724,829		859,950		135,121	

Expenditures								
Current								
General government	210,603		210,603		120,456		90,147	
Physical environment	514,226		514,226		244,408		269,818	
Debt Service								
Principal	-		-		53,750		(53,750)	
Total Expenditures	724,829		724,829		418,614		306,215	

Net change in fund balances	
-		
-		
441,336		
441,336	

Fund Balances - October 1, 2015	
-		
-		
217,541		
217,541	

Fund Balances - September 30, 2016	
$	-		
$	-		
$ 658,877		
$	658,877	

   
See accompanying notes to financial statements.

Westside Community Development District NOTES TO FINANCIAL STATEMENTS
September 30, 2016

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

Reporting Entity
The District was established on August 30, 2004, pursuant to Osceola County Ordinance Number 04-34, subsequently amended by Ordinance Number 07-19, and Chapter 190, Florida Statutes. The District was established for the purposes of financing and managing the acquisition, construction, maintenance and operation of the infrastructure necessary for community development within its jurisdiction. The District is authorized to issue bonds for the purpose, among others, of financing, funding, planning, establishing, acquiring, constructing or re-constructing, enlarging or extending, equipping, operating and maintaining water management, bridges or culverts, district roads, landscaping, street lights and other basic infrastructure projects within or outside the boundaries of the Westside Community Development District. The District is governed by a five-member Board of Supervisors who are elected for two and four year terms. The District operates within the criteria established by Chapter 190, Florida Statutes.
As required by GAAP, these financial statements present the Westside Community Development District (the primary government) as a stand-alone government. The reporting entity for the District includes all functions of government in which the District’s Board exercises oversight responsibility including, but not limited to, financial interdependency, selection of governing authority, designation of management, significant ability to influence operations and accountability for fiscal matters.
Based upon the application of the above-mentioned criteria as set forth in Governmental Accounting Standards Board, the District has identified two discretely-presented component units.
The Discretely-presented component units are legally separate entities which did not meet the criteria for blending. One of the component units is reported in separate columns to emphasize that it is legally separate from the District. The component units of the District is as follows:
Westside SPE, LLC – The Company is a special purpose entity (SPE) created by certain provisions in the Trust Indentures of the Series 2005 and Series 2007 Special Assessment Revenue Bonds. The Company and its operations, pursuant to an agreement between the Company, the District and the U.S. Bank National Association (the Trustee), are funded from amounts on deposit in the Trust estate. Funds received by the Company are to be remitted to the Trustee and applied in accordance with the Trust Indenture. This entity is included in the accompanying financial statements.
Westside CDD Holdings, LLC - The Company is a special purpose entity (SPE) created by certain provisions in the Trust Indentures of the Series 2005 and Series 2007 Special Assessment Revenue Bonds. The Trustee of this component unit has elected not to provide the District with its financial information.

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Measurement Focus and Basis of Accounting

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

Government-wide financial statements

Fund financial statements

Notes to financial statements

Government-wide Financial Statements

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

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

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

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

Fund Financial Statements

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

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

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

2.	Measurement Focus and Basis of Accounting (Continued)

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

The District has various policies governing the fund balance classifications.

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

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

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

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

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

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

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Measurement Focus and Basis of Accounting (Continued)

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

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

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

Debt service expenditures are recorded only when payment is due.

Basis of Presentation

Governmental Major Funds

General Fund - The General Fund is the 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.

Debt Service Fund 2005 and 2007 Bonds - Accounts for debt service requirements to retire the special assessment revenue bonds which were used, among other things, to retire the debt of the bond anticipation notes and to finance the acquisition and construction of certain master infrastructure improvements within the District.

Capital Projects Fund 2005 and 2007 – The Capital Projects Fund accounts for construction of certain infrastructure improvements within the boundaries of the District.

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Basis of Presentation (Continued)

Non-current Governmental Assets/Liabilities

GASB Statement 34 requires that non-current governmental assets, such as land and buildings, and non-current governmental liabilities, such as general obligation bonds, be reported in the governmental activities column in the government-wide Statement of Net Position.

Assets, Liabilities, and Net Position or Equity

Cash and Investments

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

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

Direct obligations of the United States Treasury;

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

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

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

Restricted Assets

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

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

4.	Assets, Liabilities, and Net Position or Equity (Continued)

Capital Assets

Capital assets, which include infrastructure and construction in progress, are reported in governmental activities.

The District defines capital assets as assets with an initial, individual cost of $1,000 or more and an estimated useful life in excess of one year. The valuation basis for all assets is historical cost.

The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend its useful life are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed.

Depreciation of capital assets is computed and recorded by utilizing the straight-line method. Estimated useful lives of the various classes of depreciable capital assets are as follows:

Improvements other than buildings	10 years
Infrastructure	30 years

Budgets

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

Unamortized Bond Discounts

Bond discounts associated with the issuance of revenue bonds are amortized according to the straight line method of accounting. For financial reporting, unamortized bond discounts are netted against the applicable long-term debt.

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

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

“Total fund balances” of the District’s governmental funds ($(664,376)) differs from “net position” of governmental activities ($(4,086,832)) reported in the Statement of Net Position. This difference primarily results from the long-term economic focus of the Statement of Net Position versus the current financial resources focus of the Governmental Fund Balance Sheet. The effect of the differences is illustrated below.

Capital related items

When capital assets (improvements and infrastructure that are to be used in governmental activities) are purchased or constructed, the cost of those assets is reported as expenditures in governmental funds. However, the Statement of Net Position included those capital assets among the assets of the District as a whole.

Land and improvements	$	11,525,151	
Improvements other than buildings	726,955	
Infrastructure	26,986,750	
Accumulated depreciation	 	(8,848,148)	
Total	$	30,390,708	
Long-term debt transactions		
Long-term liabilities applicable to the District’s	governmental activities are not due and	
payable in the current period and accordingly	are  not  reported  as fund  liabilities.	All	
liabilities are reported in the Statement of Net Position. Balances at September 30, 2016 were:

Bonds payable	$ (30,650,000)	
Note payable	(161,250)	
Bond discount costs	109,438	
Accumulated amortization	 	(28,670)	
Total	$ (30,730,482)	
Accrued interest

Accrued liabilities in the Statement	

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

Accrued interest	$	(3,082,682)

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

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

The “net change in fund balances” for government funds ($5,775,135) differs from the “change in net position” for governmental activities ($4,925,542) reported in the Statement  of Activities. The differences arise primarily from the long-term economic focus of the Statement of Activities versus the current financial resources focus of the governmental funds. The effect of the differences is illustrated below.

Capital related items

When capital assets that are to be used in governmental activities are purchased or constructed, the resources expended for those assets are reported as expenditures in governmental funds. However, in the Statement of Activities, the costs of those assets is allocated over their estimated useful lives and reported as depreciation expense. As a  result, fund balances decrease by the amount of financial resources expended, whereas net position decrease by the amount of depreciation expense charged for the year.

Depreciation	$	(968,407)

Long-term debt transactions

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

Note payable payments	$	53,750	
Bond principal payments	640,000	
Amortization of bond discounts	 	(3,945)	
Total	$	689,805 	

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

Net change in accrued interest payable	$	(343,419)

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

2. Explanation of Differences Between the Governmental Fund Operating Statements  and the Statement of Activities (Continued)

Deferred inflows of resources

Deferred inflows of resources reported in the governmental funds in the prior year were recognized as revenues in the prior fiscal year in the Statement of Activities.  These amounts were recognized as revenues in the governmental funds in the current year but should not be recognized as revenues in the Statement of Activities as they were  recognized in the prior year.

Revenues previously recognized	$	(227,572)

NOTE C – CASH AND DEPOSITS

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

Custodial Credit Risk - Deposits

Custodial credit risk is the risk that in the event of a bank failure, the District's deposits may not be returned to it. The District follows the provisions of Chapter 280, Florida Statutes regarding deposits and investments. As of September 30, 2016, the District's bank balance and carrying value were $716,855. Exposure to custodial credit risk was as follows. The District maintains all deposits in a qualified public depository in accordance with the provisions of Chapter 280, Florida Statutes, which means that all deposits are fully insured by Federal Depositors Insurance or collateralized under Chapter 280, Florida Statutes.

As of September 30, 2016, the District had the following investments and maturities:

 	Investment			Maturities		Fair Value	
Managed Money Market Accounts		N/A		$ 6,256,121	

The District categorizes its fair value measurements within the fair value hierarchy recently 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 uses a market approach in measuring fair value that uses prices and other relevant information generated by market transactions involving identical or similar assets, liabilities, or groups of assets and liabilities.

NOTE C – CASH AND DEPOSITS (CONTINUED)

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.

Based on the criteria in the preceding paragraph, the investment listed above is a Level 1 asset. Interest Rate Risk
The formal investment policy of the District conforms with State statutory requirements and bond indentures for investment maturities as a means of managing its exposure to increasing interest rates.

Credit Risk

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

Concentration of Credit Risk

The District places no limit on the amount it may invest in any one investment. The investments in Managed Money Markets are 100% of the District’s total investments.

The types of deposits and investments and their level of risk exposure as of September 30, 2016 were typical of these items during the fiscal year then ended. The District considers any decline in fair value for certain investments to be temporary.

NOTE D – CAPITAL ASSETS

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

	Balance
October 1,	Balance
September 30,	
	 	2015		    Additions	 Deletions	 	2016		
Governmental Activities:			
Capital Assets, Not Being Depreciated:			
Land and improvements	$ 11,525,151	$	-	$	-	$ 11,525,151	
Construction in progress	 	727,346 	 	- 	727,346 	- 	
Total Capital Assets, Not Depreciated	 	12,252,497 	 	- 	727,346 	11,525,151 	
Capital Assets, Being Depreciated:			
Infrastructure	26,259,404	727,346	-	26,986,750	
Improvements other than buildings	 	726,955 	 	- 	- 	726,955 	
Total Capital Assets, Being Depreciated	 	26,986,359 	 	727,346 	- 	27,713,705 	
Less Accumulated Depreciation For: Infrastructure	
(7,260,495)	
(899,558)	-	(8,160,053)	
Improvements other than buildings	 	(619,246) 	 	(68,849) 	- 	(688,095)	
Total Accumulated Depreciation	 	(7,879,741) 	 	(968,407) 	- 	(8,848,148) 	
Total Capital Assets Depreciated, Net	 	19,106,618 	 	(241,061) 	- 	18,865,557 	
Governmental Activities Capital Assets	  $ 31,359,115 	  $ (241,061)     $	727,346 $ 30,390,708 	

Depreciation of $968,407 was charged to physical environment.

NOTE E– LONG-TERM DEBT

The following is a summary of debt activity for the District for the year ended September 30, 2016:

Bonds payable at October 1, 2015	$	31,290,000	
Notes payable at October 1, 2015	215,000	
Principal payments	 	(693,750)	
Long-Term Debt at September 30, 2016	$	30,811.250 	

During the year, the scheduled debt service payments Series 2007 Bond, $1,485,190 were not paid by the District. This amount is reflected in the balance of matured bonds payable and matured interest payable in the accompanying financial statements. In addition, the District did not make the scheduled principal payment of $360,000 for the Series 2005 Bond and it is reflected in the matured principal balance at September 30, 2016.

The District did make unscheduled debt service payments on Series 2005 Bond totaling
$5,552,087 and on Series 2007 Bond totaling $2,019,450 which were applied to previously matured principal and interest.

NOTE E– LONG-TERM DEBT (CONTINUED)		
District debt is comprised of the following at September 30, 2016:		
Special Assessment Revenue Bonds, Series 2005		
$17,525,000 Series 2005 Bonds, interest at 5.65%, maturing thru May 1, 2041, payable on May 1 and November 1; collateralized by the pledged revenues of special assessments levied against the benefited property owners.	

$	14,915,000	
Special Assessment Revenue Bonds, Series 2007		
$17,510,000 Series 2007 Bonds, interest at 7.20%, maturing thru May 1, 2038, payable on May 1 and November 1; collateralized by the pledged revenues of special assessments levied against the benefited property owners.	

15,735,000	
Less bond discount, net	 	(80,768)	
Net Bonds Outstanding	$	30,569,232 	
Note Payable		
$290,000 note payable to contractor per agreement for work		
performed for the District, payable over five years with no interest.	$	161,250	

The annual requirements to amortize the principal and interest of long term debt as of September 30, 2016 are as follows:

Year Ending
 	September 30,		Principal	Interest	Total	
2017	$	738,750	$	1,975,618	$	2,714,368	
2018	783,750	1,932,188	2,715,938	
2019	828,750	1,885,905	2,714,655	
2020	825,000	1,836,693	2,661,693	
2021	880,000	1,784,268	2,664,268	
2022-2026	5,360,000	8,002,193	13,362,193	
2027-2031	7,380,000	6,047,658	13,427,658	
2032-2036	10,180,000	3,340,965	13,520,965	
2037-2038	 	3,835,000 	356,830	4,191,830	
Totals	$	30,811,250	$	27,162,318	$	57,973,568	

NOTE E– LONG-TERM DEBT (CONTINUED)

Summary of Significant Bonds Resolution Terms and Covenants

SPECIAL ASSESSMENT REVENUE BONDS, SERIES 2005 AND SERIES 2007

Depository Funds - The bond resolution establishes certain funds and determines the order in which revenues are to be deposited into these funds. A description of the significant funds, including their purposes, is as follows:

1.  Reserve Funds - The 2005 and 2007 Reserve Accounts are funded from the proceeds of  the Series 2005 Bonds and the Series 2007 Bonds in an amount equal to the highest remaining debt service payment. Monies held in the reserve accounts will be used only for the purposes established in the Trust Indenture.

Reserve Balance

Reserve Requirement

Special Assessment Revenue Bonds, Series 2005

$	564,669

$ 1,163,894

Special Assessment Revenue Bonds, Series 2007	710,939	1,318,263

The District did not make the scheduled principal and interest payments in the current year and the Special Assessment Bonds, Series 2005 and 2007 remain in default.

NOTE F – RISK MANAGEMENT

The government is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; and natural disasters for which the government carries commercial insurance.

NOTE G – SUBSEQUENT EVENTS

Subsequent to year end the District made unscheduled debt service payments in an effort to bring its Bonds current. The District's unscheduled debt service payments totaled $4,076,100 against matured interest.

Additionally, in December 2016, the District reached a settlement in mediation with Osceola County and the contractor to pay an additional sum of $75,000 in full and final settlement of any and all claims payable as follows:

 	Date		 	Amount		
November 15, 2019	$	50,000	
November 15, 2020	 	25,000 	
Total	  $	75,000 	

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Berger, Toombs, Elam, Gaines & Frank
Ceriified Public Accountants	Pl
600 Citrus Avenue
Suite 200
Fort Pierce, Florida 349S0
772/461-6120 // 461-1155
FAX: 772/468-9278

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
Westside Community Development District Osceola County, Florida

We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of Westside Community Development District, as of and for the year ended September 30, 2016, and the related notes to the financial statements, and have issued our report thereon dated June 28, 2017.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered Westside Community Development District's internal control over financial reporting to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of Westside Community Development District's internal control. Accordingly, we do not express an opinion on the effectiveness of Westside Community Development District's internal control over financial reporting.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

Member AICPA

Fort Pi:r':j() �IUart
Member AICPA Division For CPA Firms Private Companies Practice Section

Member FICPA

£8( Berger, Toombs, Elam, 'O' Gaines & Frank

Board of Supervisors
Westside Community Development District

Compliance and Other Matters

Government Auditing Standards.

As part of obtaining reasonable assurance about whether Westside Community Development 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 instances of noncompliance or other matters that are required to be reported under
We noted certain matters that we reported to management of Westside Community Development District in a separate letter dated June 28, 2017.
Purpose of this Report

Government Auditing

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	Standards in considering the entity's
internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
�/J	£dt.J(J(lfl-'i&Y:. J!d�at1ink
Certified Public Accountants Fort Pierce, Florida
June 28, 2017

- 31 -

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Berger, Toombs, Elam, Gaines & Frank
Certified Public Accountants	PL
600 Citrus Avenue
Suite 200
Fort Pierce, Florida 34950
772/461-6120 II 461-1155 FAX: 772/468-9278

MANAGEMENT LETTER

To the Board of Supervisors
Westside Community Development District Osceola County, Florida
Report on the Financial Statements
We have audited the financial statements of the Westside Community Development District as of and for the year ended September 30, 2016, and have issued our report thereon dated June 28, 2017.
Auditor's Responsibility

Government Auditing

Standards,

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

Government Auditing Standards.

We have issued our Independent Auditor's Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with	Disclosures in that report, which is 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, requires that we address in the Management Letter, if not already addressed in the auditor's report on compliance and internal controls, whether or not recommendations made in the preceding annual financial report have been followed. The current status of the prior comments is as follows:.
Finding 2011-01

The District continues to be unable to make certain scheduled debt service payments and meet debt service reserve requirements on the Series 2005 Special Assessment Revenue Bonds and Series 2007 Special Assessment Revenue Bonds.
Management Response
In the current year, the District received settlements from a developer who was in default on special assessments levied and made unscheduled interest and principal payments on outstanding bonds. Additionally, subsequent to year end, the District made additional unscheduled interest and principal payments on outstanding bonds. Litigation with another developer resulted in a summary judgment in lieu of foreclosure and created an SPE in accordance with bond covenants. During the current year, property held by the SPE was sold and a portion of the proceeds was provided to the District as landholder contributions. The District continues to work with landowners and bondholders to remedy the default.

-

Fort Pierce / Stuart
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Berger, Toombs, Elam, Gaines & Frank

To the Board of Supervisors
Westside Community Development District
Current Status
The District is still not current with the debt service amortization schedule after factoring in the payments made in the current year and subsequent to year end.
Finding 2012-01
The District reported a fund balance deficit in the Series 2005 Debt Service Fund and Series 2007 Debt Service Fund for which sufficient resources were not available to cover the deficit.
Management Response
Per finding 2012-1 from the District's Fiscal Year 2014 Annual Audit Report, the District has various major landowners who have failed to pay their annual debt service assessments which has caused deficits in both Series 2005 and Series 2007 Debt Service Funds. The District has completed a foreclosure lawsuit on one of the major landowners which resulted in ownership of the property being transferred to a Special Purpose Entity. The property was sold in the current year and a portion of the proceeds was provided to the District as contributions reducing the deficits significantly. The District has entered into Settlement Agreements with two other major landowners which resulted in the collection of past due assessments and/or deed of property to the SPE in lieu of foreclosure lawsuit. Once collection of assessments and/or sale of property by the SPE per the settlement agreement is complete, the deficits and auditors finding for both Debt Service Funds will be eliminated.
Current Status
Both the 2005 and 2007 Debt Service Funds had a significant decrease in their deficit balances as of September 30, 2016.
Financial Condition

Section 10.554(1)(i)5.a., Rules of the Auditor General, requires that we report the results of our determination as to whether or not Westside Community Development District has met one or more of the conditions described in Section 218.503(1), Florida Statutes, and identification of the specific conditions met. In connection with our audit, we determined that the Westside Community Development District did meet one of the conditions described in Section 218.503(1), Florida Statutes in that the District did not make certain scheduled debt service payments and did not meet debt service reserve requirements.
Pursuant to Sections 10.554(1)(i)5.c. and 10.556(8), Rules of the Auditor General, we applied financial conditions assessment procedures. It is management's responsibility to monitor the Westside Community Development District's financial condition; our financial condition assessment was based in part on the representations made by management and the review of the financial information provided by the same.

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� Berger, Toombs, Elam, Gaines & Frank

To the Board of Supervisors
Westside Community Development District

Annual Financial Report
Section 10.554(1)(i)5. b., Rules of the Auditor General, requires that we report the results of our determination as to whether the annual financial report for the Westside Community Development 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 findings in addition to the current status of prior audit findings noted above.
Purpose of this Letter

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Our Management Letter is intended solely for the information and use of the LegislativeAuditing 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 th_i;�J�

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Berger, Toombs, Elam, Gaines & Frank Certified Public Accountants PL
Fort Pierce, Florida
June 28, 2017

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Berger, Toombs, Elam, Gaines & Frank
Certified Public Accountants	Pl
600 Citrus Avenue
Suite 200
Fort Pierce, Florida 34950
772/461-6120 // 461-1155
FAX: 772/468-9278

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

To the Board of Supervisors
Westside Community Development District Osceola County, Florida

We have examined Westside Community Development District's compliance with Section 218.415, Florida Statutes during the year ended September 30, 2016. Management is responsible for Westside Community Development District's compliance with those requirements. Our responsibility is to express an opinion on Westside Community Development 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, accordingly, included examining, on a test basis, evidence about Westside Community Development 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 Westside Community Development District's compliance with the specified requirements.

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

Berger,

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Certified Public Accountants PL Fort Pierce, Florida
June 28, 2017

Member AICPA

Fort Pierce / Stuart

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Member AICPA Division For CPA Firms Private Companies Practice Section

Member FICPA