Canopy 
Community 
Development 
District 
FINANCIAL 
STATEMENTS 
September 
30, 
2022 



TableofContentsTableofContents
REPORT 


Independent 
Auditors’ 
Report........................................................................................ 


1 


FINANCIAL 
STATEMENTS 


Management’s 
Discussion 
And 
Analysis 
(required 
supplemental 
information)............. 


4 
Basic 
Financial 
Statements 
Government-Wide 
Financial 
Statements 
Statement 
of 
Net 
Position 
....................................................................................... 
9 
Statement 
of 
Activities 
............................................................................................. 
10 
Fund 
Financial 
Statements 
BalanceSheet–GovernmentalFunds...................................................................... 
11 
Reconciliation 
of 
the 
Balance 
Sheet 
of 
Governmental 
Funds 
to 
the 
Statement 
of 
Net 
Position 
.......................................................................................................... 
12 
Statement 
of 
Revenue, 
Expenditures 
and 
Changes 
in 
Fund 
Balances 
– 
Governmental 
Funds 
................................................................................................ 
13 
Reconciliation 
of 
the 
Statement 
of 
Revenue, 
Expenditures 
and 
Changes 
in 
FundBalancesofGovernmentalFundsto 
theStatementofActivities.................... 
14 
NotestoFinancialStatements........................................................................................ 
15 
Required 
Supplemental 
Information 
(other 
than 
MD&A) 
Budget 
to 
Actual 
Comparison 
Schedule -General 
Fund.............................................. 
24 
Independent 
Auditors’ 
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.................................. 
25 
Management 
Letter 
........................................................................................................ 


28 


Independent 
Accountants’ 
Report 
on 
Compliance 
with 
Section 
218.415, 
Florida 
Statutes 
........................................................................................................................... 


31 



INDEPENDENTAUDITORS’REPORTTotheBoardofSupervisorsCanopyCommunityDevelopmentDistrictLeonCounty,FloridaINDEPENDENTAUDITORS’REPORTTotheBoardofSupervisorsCanopyCommunityDevelopmentDistrictLeonCounty,Florida
Opinions 


We 
have 
audited 
the 
accompanying 
financial 
statements 
of 
the 
governmental 
activities 
and 
each 
major 
fund 
of 
Canopy 
Community 
Development 
District 
(hereinafter 
referred 
to 
as 
“District”), 
as 
of 
and 
for 
the 
year 
ended 
September 
30, 
2022, 
and 
the 
related 
notes 
to 
the 
financial 
statements, 
which 
collectively 
comprise 
the 
District’s 
basic 
financial 
statements 
as 
listed 
in 
the 
table 
of 
contents. 


In 
our 
opinion, 
the 
financial 
statements 
referred 
to 
above 
present 
fairly, 
in 
all 
material 
respects, 
the 
respective 
financial 
position 
of 
the 
governmental 
activities 
and 
each 
major 
fund 
of 
the 
District 
as 
of 
September 
30, 
2022, 
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. 


Basis 
for 
Opinions 


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. 
Our 
responsibilities 
under 
those 
standards 
are 
further 
described 
in 
the 
Auditors’ 
Responsibilities 
for 
the 
Audit 
of 
the 
Financial 
Statements 
section 
of 
our 
report. 
We 
are 
required 
to 
be 
independent 
of 
the 
District, 
and 
to 
meet 
our 
other 
ethical 
responsibilities, 
in 
accordance 
with 
the 
relevant 
ethical 
requirements 
relating 
to 
our 
audit. 
We 
believe 
that 
the 
audit 
evidence 
we 
have 
obtained 
is 
sufficient 
and 
appropriate 
to 
provide 
a 
basis 
for 
our 
audit 
opinions. 


Responsibilities 
of 
Management 
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, 
and 
for 
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. 


In 
preparing 
the 
financial 
statements, 
management 
is 
required 
to 
evaluate 
whether 
there 
are 
conditions 
or 
events, 
considered 
in 
the 
aggregate, 
that 
raise 
substantial 
doubt 
about 
the 
District’s 
ability 
to 
continue 
as 
a 
going 
concern 
for 
twelve 
months 
beyond 
the 
financial 
statement 
date, 
including 
any 
currently 
known 
information 
that 
may 
raise 
substantial 
doubt 
shortly 
thereafter. 



Auditors’ 
Responsibilities 
for 
the 
Audit 
of 
the 
Financial 
Statements 


Our 
objectives 
are 
to 
obtain 
reasonable 
assurance 
about 
whether 
the 
financial 
statements 
as 
a 
whole 
are 
free 
from 
material 
misstatement, 
whether 
due 
to 
fraud 
or 
error, 
and 
to 
issue 
an 
auditor’s 
report 
that 
includes 
our 
opinions. 
Reasonable 
assurance 
is 
a 
high 
level 
of 
assurance 
but 
is 
not 
absolute 
assurance 
and 
therefore 
is 
not 
a 
guarantee 
that 
an 
audit 
conducted 
in 
accordance 
with 
generally 
accepted 
auditing 
standards 
and 
Government 
Auditing 
Standards 
will 
always 
detect 
a 
material 
misstatement 
when 
it 
exists. 
The 
risk 
of 
not 
detecting 
a 
material 
misstatement 
resulting 
from 
fraud 
is 
higher 
than 
for 
one 
resulting 
from 
error, 
as 
fraud 
may 
involve 
collusion, 
forgery, 
intentional 
omissions, 
misrepresentations, 
or 
the 
override 
of 
internal 
control. 
Misstatements 
are 
considered 
material 
if 
there 
is 
a 
substantial 
likelihood 
that, 
individually 
or 
in 
the 
aggregate, 
they 
would 
influence 
the 
judgment 
made 
by 
a 
reasonable 
user 
based 
on 
the 
financial 
statements. 


In 
performing 
an 
audit 
in 
accordance 
with 
generally 
accepted 
auditing 
standards 
and 
Government 
Auditing 
Standards, 
we: 


. 
Exercise 
professional 
judgment 
and 
maintain 
professional 
skepticism 
throughout 
the 
audit. 


. 
Identify 
and 
assess 
the 
risks 
of 
material 
misstatement 
of 
the 
financial 
statements, 
whether 
due 
to 
fraud 
or 
error, 
and 
design 
and 
perform 
audit 
procedures 
responsive 
to 
those 
risks. 
Such 
procedures 
include 
examining, 
on 
a 
test 
basis, 
evidence 
regarding 
the 
amounts 
and 
disclosures 
in 
the 
financial 
statements. 


. 
Obtain 
an 
understanding 
of 
internal 
control 
relevant 
to 
the 
audit 
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 
District’s 
internal 
control. 
Accordingly, 
no 
such 
opinion 
is 
expressed. 


. 
Evaluate 
the 
appropriateness 
of 
accounting 
policies 
used 
and 
the 
reasonableness 
of 
significant 
accounting 
estimates 
made 
by 
management, 
as 
well 
as 
evaluate 
the 
overall 
presentation 
of 
the 
financial 
statements. 


. 
Conclude 
whether, 
in 
our 
judgment, 
there 
are 
conditions 
or 
events, 
considered 
in 
the 
aggregate, 
that 
raise 
substantial 
doubt 
about 
the 
District’s 
ability 
to 
continue 
as 
a 
going 
concern 
for 
a 
reasonable 
period 
of 
time. 


We 
are 
required 
to 
communicate 
with 
those 
charged 
with 
governance 
regarding, 
among 
other 
matters, 
the 
planned 
scope 
and 
timing 
of 
the 
audit, 
significant 
audit 
findings, 
and 
certain 
internal 
control-related 
matters 
that 
we 
identified 
during 
the 
audit. 


Required 
Supplementary 
Information 


Accounting 
principles 
generally 
accepted 
in 
the 
United 
States 
of 
America 
require 
that 
the 
management’s 
discussion 
and 
analysis 
and 
budgetary 
comparison 
information 
on 
pages 
4 -8 
and 
24 
be 
presented 
to 
supplement 
the 
basic 
financial 
statements. 
Such 
information 
is 
the 
responsibility 
of 
management 
and, 
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 


-2 -



financial 
statements, 
and 
other 
knowledge 
we 
obtained 
during 
our 
audit 
of 
the 
basic 
financial 
statements. 
We 
do 
not 
express 
an 
opinion 
or 
provide 
any 
assurance 
on 
the 
information 
because 
the 
limited 
procedures 
do 
not 
provide 
us 
with 
sufficient 
evidence 
to 
express 
an 
opinion 
or 
provide 
any 
assurance. 


Other 
Reporting 
Required 
by 
Government 
Auditing 
Standards 


In 
accordance 
with 
Government 
Auditing 
Standards, 
we 
have 
also 
issued 
our 
report 
dated 
June 
27, 
2023, 
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 
and 
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 


controloverfinancialreportingandcompliance.
CARR,RIGGS&INGRAM,LLC
Miramar 
Beach, 
Florida 
June 
27, 
2023 


-3 



Management’s 
Discussion 
and 
Analysis 



Canopy 
Community 
Development 
District 
Management’s 
Discussion 
and 
Analysis 


Our 
discussion 
and 
analysis 
of 
the 
Canopy 
Community 
Development 
District’s 
financial 
performance 
provides 
an 
overview 
of 
the 
District’s 
financial 
activities 
for 
the 
fiscal 
year 
ended 
September 
30, 
2022. 
Please 
read 
it 
in 
conjunction 
with 
the 
District’s 
financial 
statements, 
which 
begin 
on 
page 
9. 


FINANCIAL 
HIGHLIGHTS 


. 
At 
September 
30, 
2022, 
the 
assets 
of 
the 
District 
exceeded 
its 
liabilities 
by 
approximately 
$13.5 
million. 


. 
During 
the 
fiscal 
year 
ended 
September 
30, 
2022, 
the 
District 
constructed 
additional 
infrastructure 
of 
approximately 
$3.1 
million, 
incurred 
approximately 
$608,000 
of 
interest 
costs, 
and 
repaid 
principal 
of 
$785,000. 


USING 
THE 
ANNUAL 
REPORT 


This 
annual 
report 
consists 
of 
a 
series 
of 
financial 
statements. 
The 
Statement 
of 
Net 
Position 
and 
the 
Statement 
of 
Activities 
on 
pages 
9 
– 
10 
provide 
information 
about 
the 
activities 
of 
the 
District 
as 
a 
whole 
and 
present 
a 
longer-term 
view 
of 
the 
District’s 
finances. 
Fund 
financial 
statements 
start 
on 
page 


11. 
For 
governmental 
activities, 
these 
statements 
tell 
how 
these 
services 
were 
financed 
in 
the 
short-
term 
as 
well 
as 
what 
remains 
for 
future 
spending. 
Fund 
financial 
statements 
also 
report 
the 
District’s 
operations 
in 
more 
detail 
than 
the 
government-wide 
statements 
by 
providing 
information 
about 
the 
District’s 
most 
significant 
funds. 
Reporting 
the 
District 
as 
a 
Whole 


Our 
analysis 
of 
the 
District 
as 
a 
whole 
begins 
on 
page 
5. 
One 
of 
the 
most 
important 
questions 
asked 
about 
the 
District’s 
finances 
is, 
“Is 
the 
District 
as 
a 
whole 
better 
off 
or 
worse 
off 
as 
a 
result 
of 
the 
year’s 
activities?” 
The 
Statement 
of 
Net 
Position 
and 
the 
Statement 
of 
Activities 
report 
information 
about 
the 
District 
as 
a 
whole 
and 
about 
its 
activities 
in 
a 
way 
that 
helps 
answer 
this 
question. 
These 
statements 
include 
all 
assets 
and 
liabilities 
using 
the 
accrual 
basis 
of 
accounting, 
which 
is 
similar 
to 
the 
accounting 
used 
by 
most 
private-sector 
companies. 
All 
of 
the 
current 
year’s 
revenues 
and 
expenses 
are 
taken 
into 
account 
regardless 
of 
when 
cash 
is 
received 
or 
paid. 


These 
two 
statements 
report 
the 
District’s 
net 
position 
and 
related 
changes 
during 
the 
current 
year. 
You 
can 
think 
of 
the 
Districts’ 
net 
position 
– 
the 
difference 
between 
assets 
and 
liabilities 
– 
as 
one 
way 
to 
measure 
the 
District’s 
financial 
health, 
or 
financial 
position. 
Over 
time, 
increases 
or 
decreases 
in 
the 
District’s 
net 
position 
is 
one 
indicator 
of 
whether 
its 
financial 
health 
is 
improving 
or 
deteriorating. 
You 
will 
need 
to 
consider 
other 
nonfinancial 
factors; 
however, 
such 
as 
changes 
in 
the 
District’s 
assessment 
base 
and 
the 
condition 
of 
the 
District’s 
infrastructure, 
to 
assess 
the 
overall 
health 
of 
the 
District. 


-4 



Canopy 
Community 
Development 
District 
Management’s 
Discussion 
and 
Analysis 


Reporting 
the 
District’s 
Most 
Significant 
Funds 


Our 
analysis 
of 
the 
District’s 
major 
funds 
begins 
on 
page 
7. 
The 
fund 
financial 
statements 
begin 
on 
page 
11 
and 
provide 
detailed 
information 
about 
the 
most 
significant 
funds 
– 
not 
the 
District 
as 
a 
whole. 
Some 
funds 
are 
required 
to 
be 
established 
by 
State 
law 
and 
by 
bond 
covenants. 
All 
of 
the 
District’s 
funds 
are 
governmental 
fund-types. 


. 
Governmental 
funds 
– 
All 
of 
the 
District’s 
basic 
services 
are 
reported 
in 
governmental 
funds, 
which 
focus 
on 
how 
money 
flows 
into 
and 
out 
of 
those 
funds 
and 
the 
balances 
left 
at 
year-end 
that 
are 
available 
for 
spending. 
These 
funds 
are 
reported 
using 
an 
accounting 
method 
called 
modified 
accrual 
accounting, 
which 
measures 
cash 
and 
all 
other 
financial 
assets 
that 
can 
be 
readily 
converted 
to 
cash. 
The 
governmental 
fund 
statements 
provide 
a 
detailed 
short-term 
view 
of 
the 
District’s 
general 
government 
operations 
and 
the 
basic 
services 
it 
provides. 
Governmental 
fund 
information 
helps 
you 
determine 
whether 
there 
are 
more 
or 
fewer 
financial 
resources 
that 
can 
be 
spent 
in 
the 
near 
future 
to 
finance 
the 
District’s 
programs. 


THE 
DISTRICT 
AS 
A 
WHOLE 


The 
following 
table 
reflects 
the 
condensed 
Statement 
of 
Net 
Position 
and 
is 
compared 
to 
the 
prior 
year. 


September 
30, 
Assets 
Current 
and 
other 
assets 
Capital 
assets, 
net 
2022 
1,085,936$ 
22,337,017 
2021 
697,190$ 
19,221,893 
$ 
Change 
388,746 
3,115,124 
Total 
assets 
$ 
23,422,953 
$ 
19,919,083 
$ 
3,503,870 


Liabilities 
Current 
liabilities 
Other 
liabilities 
Total 
liabilities 
856,946$ 
9,105,000 
9,961,946 
7,045,981$ 
9,885,000 
16,930,981 
$ 
(6,189,035) 
(780,000) 
(6,969,035) 
Net 
position 
Net 
investment 
in 
capital 
assets 
Restricted 
for: 
Debt 
service 
Unrestricted 
Total 
net 
position 
12,853,026 
353,617 
254,364 
13,461,007 
2,783,325 
138,974 
65,803 
2,988,102 
10,069,701 
214,643 
188,561 
10,472,905 
Total 
liabilities 
and 
net 
position 
$ 
23,422,953 
$ 
19,919,083 
$ 
3,503,870 


For 
more 
detailed 
information, 
see 
the 
accompanying 
Statement 
of 
Net 
Position. 


-5 



Canopy 
Community 
Development 
District 
Management’s 
Discussion 
and 
Analysis 


During 
the 
fiscal 
year 
ended 
September 
30, 
2022, 
total 
assets 
increased 
by 
approximately 
$3.5 
million 
over 
while 
liabilities 
decreased 
by 
approximately 
$7 
million 
from 
over 
the 
prior 
fiscal 
year. 
The 
increase 
in 
total 
assets 
is 
due 
to 
a 
significant 
amount 
of 
Intergovernmental 
revenue 
related 
to 
infrastructure 
construction. 
The 
decrease 
in 
liabilities 
is 
due 
to 
decrease 
in 
amounts 
due 
to 
Developer. 


The 
following 
schedule 
compares 
the 
Statement 
of 
Activities 
for 
the 
current 
and 
previous 
fiscal 
year. 


For 
the 
year 
ended 
September 
30, 
2022 
2021 
Change 
Revenue: 
Program 
revenue: 
Charges 
for 
services 
1,839,795 
$ 
1,194,868 
$ 
644,927 
$ 
Grants 
and 
contributions 
285 
217 
68 
General 
revenue: 
Developer 
contributions 
53,505 
88,097 
(34,592) 
Intergovernmental 
revenue 
9,490,204 
-9,490,204 
Total 
revenue 
11,383,789 
1,283,182 
10,100,607 


Expenses: 
General 
government 
Maintenance 
and 
operations 
Amenity 
center 
Interest 
143,723 
119,200 
58,895 
589,066 
177,453 
74,700 
-
626,608 
(33,730) 
44,500 
58,895 
(37,542) 
Total 
expenses 
910,884 
878,761 
32,123 
Change 
in 
net 
assets 
10,472,905 
404,421 
10,068,484 
Net 
position, 
beginning 
of 
year 
2,988,102 
2,583,681 
404,421 
Net 
position, 
ending 
of 
year 
$ 
13,461,007 
$ 
2,988,102 
$ 
10,472,905 


For 
more 
detailed 
information, 
see 
the 
accompanying 
Statement 
of 
Activities. 


Revenue 
and 
expenses 
increased 
approximately 
$10.1 
million 
and 
$32,000, 
respectively, 
over 
the 
prior 
fiscal 
year. 
The 
increase 
in 
revenue 
is 
primarily 
due 
to 
Intergovernmental 
revenue 
and 
an 
increase 
in 
prepayments 
related 
to 
lot 
closures. 
The 
increase 
in 
expenses 
is 
primarily 
due 
to 
the 
opening 
of 
the 
amenity 
center. 
The 
overall 
result 
was 
a 
$10,472,905 
increase 
in 
net 
position 
for 
fiscal 
year 
2022. 


-6 



Canopy 
Community 
Development 
District 
Management’s 
Discussion 
and 
Analysis 


THE 
DISTRICT’S 
FUNDS 


As 
the 
District 
completed 
the 
year, 
its 
governmental 
funds 
(as 
presented 
in 
the 
balance 
sheet 
on 
page 
11) 
reported 
a 
combined 
fund 
balance 
of 
approximately 
$604,000, 
which 
is 
an 
increase 
from 
last 
year’s 
fund 
balance 
deficit 
that 
totaled 
approximately 
$6 
million. 
Significant 
transactions 
are 
discussed 
below. 


. 
During 
the 
year 
ended 
September 
30, 
2022, 
the 
District 
received 
approximately 
$9.5 
million 
of 
Intergovernmental 
revenue. 


. 
During 
the 
year 
ended 
September 
30, 
2022, 
the 
District 
established 
additional 
infrastructure 
of 
approximately 
$3.1 
million, 
incurred 
approximately 
$608,000 
of 
interest 
expenditures, 
and 
repaid 
principal 
of 
$785,000. 


The 
overall 
increase 
in 
fund 
balance 
for 
the 
year 
ended 
September 
30, 
2022 
totaled 
$6,554,151. 


GOVERNMENTAL 
FUNDS 
BUDGETARY 
HIGHLIGHTS 


An 
Operating 
budget 
was 
established 
by 
the 
governing 
board 
for 
the 
District 
pursuant 
to 
the 
requirements 
of 
Florida 
Statutes. 
The 
budget 
to 
actual 
comparison 
for 
the 
general 
fund, 
including 
the 
original 
budget 
and 
final 
adopted 
budget, 
is 
shown 
at 
page 
24. 


The 
District 
experienced 
an 
unfavorable 
variance 
in 
revenue 
as 
compared 
to 
the 
budget 
in 
the 
amount 
of 
approximately 
$289,000. 
Conversely, 
the 
District 
has 
a 
favorable 
variance 
in 
expenditures 
as 
compared 
to 
the 
budget 
in 
the 
amount 
of 
approximately 
$284,000. 
The 
variance 
in 
revenue 
occurred 
primarily 
due 
to 
a 
reduction 
of 
anticipated 
developer 
contributions. 
The 
variance 
in 
expenditures 
occurred 
primarily 
due 
to 
anticipated 
maintenance 
and 
operations 
and 
amenity 
center 
expenditures 
that 
were 
not 
incurred 
in 
the 
current 
year. 


CAPITAL 
ASSET 
AND 
DEBT 
ADMINISTRATION 


Capital 
Assets 


At 
September 
30, 
2022, 
the 
District 
had 
approximately 
$22.3 
million 
invested 
in 
capital 
assets. 
This 
amount 
represents 
an 
increase 
of 
approximately 
$9.8 
million 
over 
the 
fiscal 
year 
2021 
total. 


A 
listing 
of 
capital 
assets 
by 
major 
category 
for 
the 
current 
and 
prior 
year 
follows: 


September 
30, 
2022 
2021 
Change 


Capital 
assets 
not 
being 
depreciated 
$ 
22,337,017 
$ 
12,571,627 
$ 
9,765,390 


More 
information 
about 
the 
District’s 
capital 
assets 
is 
presented 
in 
Note 
3 
to 
the 
financial 
statements. 


-7 



Canopy 
Community 
Development 
District 
Management’s 
Discussion 
and 
Analysis 


Debt 


At 
September 
30, 
2022, 
the 
District 
had 
approximately 
$9.2 
million 
of 
bonds 
outstanding. 
This 
amount 
represents 
a 
net 
decrease 
of 
$785,000 
from 
the 
fiscal 
year 
2021 
total. 


A 
listing 
of 
debt 
amounts 
outstanding 
for 
the 
current 
and 
prior 
year 
is 
as 
follows: 


September 
30, 
2022 
2021 
Change 
Series 
2018 
A-1 
2,085,000 
$ 
2,170,000 
$ 
(85,000) 
$ 
Series 
2018 
A-2 
3,540,000 
4,190,000 
(650,000) 
Series 
2018 
A-3 
2,700,000 
2,735,000 
(35,000) 
Series 
2018 
A-4 
920,000 
935,000 
(15,000) 
Total 
bonds 
payable 
9,245,000 
$ 
$ 
10,030,000 
(785,000) 
$ 


More 
information 
about 
the 
District’s 
long-term 
debt 
is 
presented 
in 
Note 
4 
to 
the 
financial 
statements. 


FUTURE 
FINANCIAL 
FACTORS 


Canopy 
Community 
Development 
District 
is 
an 
independent 
special 
district 
that 
operates 
under 
the 
provisions 
of 
Chapter 
190, 
Florida 
Statutes. 
The 
District 
operates 
under 
an 
elected 
Board 
of 
Supervisors, 
which 
establishes 
policy 
and 
sets 
assessment 
rates. 
Assessment 
rates 
for 
fiscal 
year 
2023 
were 
established 
to 
provide 
for 
the 
operations 
of 
the 
District 
as 
well 
as 
the 
necessary 
debt 
service 
requirements. 


CONTACTING 
THE 
DISTRICT’S 
FINANCIAL 
MANAGEMENT 


This 
financial 
report 
is 
designed 
to 
provide 
a 
general 
overview 
of 
the 
District’s 
finances. 
If 
you 
have 
questions 
about 
this 
report 
or 
need 
additional 
financial 
information, 
contact 
the 
Canopy 
Community 
Development 
District’s 
management 
company 
at 
393 
Palm 
Coast 
Parkway 
SW, 
#4, 
Palm 
Coast, 
FL, 
32137. 


-8 



Basic 
Financial 
Statements 



Canopy 
Community 
Development 
District 
Statement 
of 
Net 
Position 
September 
30, 
2022 
Governmental 
Activities 
Assets 
Cash 
and 
cash 
equivalents 
772,499 
$ 
Accounts 
receivable 
297,585 
Prepaid 
expenses 
15,852 
Capital 
assets: 
Not 
being 
depreciated 
22,337,017 
Total 
assets 
23,422,953 
Liabilities 
Accounts 
payable 
23,574 
Contracts 
payable 
380,372 
Retainage 
payable 
78,167 
Accrued 
interest 
payable 
234,833 
Non-current 
liabilities: 
Due 
within 
one 
year 
140,000 
Due 
in 
more 
than 
one 
year 
9,105,000 
Total 
liabilities 
9,961,946 
Net 
position 
Net 
investment 
in 
capital 
assets 
12,853,026 
Restricted 
for: 
Debt 
service 
353,617 
Unrestricted 
254,364 
Total 
net 
position 
13,461,007 
$ 


The 
accompanying 
notes 
are 
an 
integral 
part 
of 
these 
financial 
statements. 


-9 



Canopy 
Community 
Development 
District 
Statement 
of 
Activities 


For 
the 
year 
ended 
September 
30, 
2022 


Net 
(Expense) 
Revenue 
and 
Changes 
in 


Program 
Revenue 
Net 
Position 
Capital 


Charges 
for 
Grants 
and 
Grants 
and 
Governmental 
Functions/Programs 
Expenses 
Services 
Contributions 
Contributions 
Activities 
Primary 
government: 


Governmental 
activities: 
General 
government 
$ 
(143,723) 
$ 
112,186 
$ 
-$ 
-$ 
(31,537) 
Maintenance 
and 
operations 
(119,200) 
93,044 
--(26,156) 
Amenity 
center 
(58,895) 
45,971 
--(12,924) 
Interest 
(589,066) 
1,588,594 
281 
4 
999,813 


Total 
governmental 
activities 
$ 
(910,884) 
$ 
1,839,795 
$ 
281 
$ 
4 
929,196 


General 
Revenue 


Developer 
contributions 
53,505 
Intergovernmental 
revenue 
9,490,204 
Total 
general 
revenue 
9,543,709 


Change 
in 
net 
position 
10,472,905 


Net 
position -beginning 
of 
year 
2,988,102 


Net 
position -end 
of 
year 
$ 
13,461,007 


The 
accompanying 
notes 
are 
an 
integral 
part 
of 
these 
financial 
statements. 


-10 



Canopy 
Community 
Development 
District 
Balance 
Sheet 
– 
Governmental 
Funds 
September 
30, 
2022 
Total 
Capital 
Project 
Governmental 
General 
Fund 
Debt 
Service 
Fund 
Funds 
Assets 
Cash 
and 
cash 
equivalents 
1,637 
$ 
510,413$ 
260,449$ 
772,499$ 
Accounts 
receivable 
-297,585 
-297,585 
Prepaid 
expenditures 
15,852 
--15,852 
Total 
assets 
17,489$ 
807,998$ 
260,449$ 
1,085,936$ 
Liabilities 
and 
Fund 
Balances 
Liabilities 
Accounts 
payable 
$ 
23,574 
$ 
--$ 
23,574$ 
Contracts 
payable 
--380,372 
380,372 
Retainage 
payable 
--78,167 
78,167 
Total 
liabilities 
23,574 
-458,539 
482,113 
Fund 
balances 
Nonspendable 
15,852 
--15,852 
Restricted 
for 
debt 
service 
-807,998 
-807,998 
Unassigned 
(21,937) 
-(198,090) 
(220,027) 
Total 
fund 
balances 
(deficit) 
(6,085) 
807,998 
(198,090) 
603,823 
Total 
liabilities 
and 
fund 
balances 
17,489$ 
807,998$ 
260,449$ 
1,085,936$ 


The 
accompanying 
notes 
are 
an 
integral 
part 
of 
these 
financial 
statements. 


-11 



Canopy 
Community 
Development 
District 
Reconciliation 
of 
the 
Balance 
Sheet 
of 
Governmental 
Funds 
to 
the 
Statement 
of 
Net 
Position 


September 
30, 
2022 
Total 
fund 
balances, 
governmental 
funds 
$ 
603,823 
Capital 
assets 
used 
in 
governmental 
activities 
are 
not 
financial 
resources 
and 
therefore 
are 
not 
reported 
in 
the 
fund 
financial 
statements. 
22,337,017 
Liabilities 
not 
due 
and 
payable 
from 
current 
resources, 
including 
accrued 
interest, 
are 
not 
reported 
in 
the 
fund 
financial 
statements. 
(9,479,833) 
Total 
net 
position -governmental 
activities 
$ 
13,461,007 


The 
accompanying 
notes 
are 
an 
integral 
part 
of 
these 
financial 
statements. 


-12 



Canopy 
Community 
Development 
District 
Statement 
of 
Revenue, 
Expenditures 
and 
Changes 
in 
Fund 
Balances 
– 
Governmental 
Funds 


For 
the 
year 
ended 
September 
30, 
2022 
Total 
General 
Capital 
Project 
Governmental 
Fund 
Debt 
Service 
Fund 
Funds 
Revenue 
Assessments 
251,201 
$ 
767,102 
$ 
-$ 
1,018,303 
$ 
Developer 
contributions 
53,505 
--53,505 
Intergovernmental 
revenue 
--9,490,204 
9,490,204 
Prepayment 
revenue 
-821,492 
-821,492 
Interest 
-281 
4 
285 
Total 
revenue 
304,706 
1,588,875 
9,490,208 
11,383,789 
Expenditures 
Current: 
General 
government 
132,235 
-11,488 
143,723 
Maintenance 
and 
operations 
119,200 
--119,200 
Amenity 
center 
58,895 
--58,895 
Debt 
service: 
Principal 
-785,000 
-785,000 
Interest 
-607,696 
-607,696 
Capital 
outlay 
--3,115,124 
3,115,124 
Total 
expenditures 
310,330 
1,392,696 
3,126,612 
4,829,638 
Excess 
(deficit) 
of 
revenue 
over 
expenditures 
(5,624) 
196,179 
6,363,596 
6,554,151 
Other 
Financing 
Sources 
(Uses) 
Transfers 
in 
--166 
166 
Transfers 
out 
-(166) 
-(166) 
Total 
other 
financing 
sources 
(uses) 
-(166) 
166 
-
Net 
change 
in 
fund 
balances 
(5,624) 
196,013 
6,363,762 
6,554,151 
Fund 
balances 
(deficit), 
beginning 
of 
year 
(461) 
611,985 
(6,561,852) 
(5,950,328) 
Fund 
balances 
(deficit), 
end 
of 
year 
(6,085)$ 
807,998 
$ 
(198,090) 
$ 
603,823 
$ 


The 
accompanying 
notes 
are 
an 
integral 
part 
of 
these 
financial 
statements. 


-13 



Canopy 
Community 
Development 
District 
Reconciliation 
of 
the 
Statement 
of 
Revenue, 
Expenditures 
and 
Changes 
in 
Fund 
Balances 
of 
Governmental 
Funds 
to 
the 
Statement 
of 
Activities 


For 
the 
year 
ended 
September 
30, 
2022 
Net 
change 
in 
fund 
balances -governmental 
fund 
$ 
6,554,151 
Capital 
outlay, 
reported 
as 
expenditures 
in 
the 
governmental 
funds, 
is 
shown 
as 
capital 
assets 
on 
the 
Statement 
of 
Net 
Position. 
3,115,124 
Governmental 
funds 
report 
principal 
payments 
on 
bonds 
when 
debt 
is 
paid, 
whereas 
these 
payments 
are 
eliminated 
in 
the 
Statement 
of 
Activities 
and 
recognized 
as 
a 
decrease 
in 
bonds 
payable 
in 
the 
Statement 
of 
Net 
Position. 
785,000 
The 
change 
in 
accrued 
interest 
between 
the 
current 
and 
prior 
year 
is 
recorded 
on 
the 
Statement 
of 
Activities 
but 
not 
on 
the 
fund 
financial 
statements. 
18,630 
Change 
in 
net 
position 
of 
governmental 
activities 
$ 
10,472,905 


The 
accompanying 
notes 
are 
an 
integral 
part 
of 
these 
financial 
statements. 


-14 



Canopy 
Community 
Development 
District 
Notes 
to 
the 
Financial 
Statements 


NOTE 
1: 
NATURE 
OF 
ORGANIZATION 


The 
Canopy 
Community 
Development 
District 
(the 
“District”) 
was 
established 
on 
May 
24, 
2017 
pursuant 
to 
the 
Uniform 
Community 
Development 
District 
Act 
of 
1980, 
otherwise 
known 
as 
Chapter 
190, 
Florida 
Statutes, 
by 
the 
City 
of 
Tallahassee 
Ordinance 
No. 
17-O-08, 
and 
by 
the 
Boundary 
Amendment: 
Ordinance 
No. 
21-O-05. 
The 
Act 
provides, 
among 
other 
things, 
the 
power 
to 
manage 
basic 
services 
for 
community 
development, 
power 
to 
borrow 
money 
and 
issue 
bonds, 
and 
to 
levy 
and 
assess 
non-ad 
valorem 
assessments 
for 
the 
financing 
and 
delivery 
of 
capital 
infrastructure. 


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


The 
District 
is 
governed 
by 
a 
Board 
of 
Supervisors 
(“Board”), 
which 
is 
comprised 
of 
five 
members. 
The 
Supervisors 
are 
elected 
by 
the 
owners 
of 
property 
within 
the 
District. 
At 
September 
30, 
2022, 
one 
Board 
member 
is 
affiliated 
with 
the 
Developer, 
Ox 
Bottom 
Mortgage 
Holdings, 
LLC. 
The 
Board 
of 
Supervisors 
of 
the 
District 
exercises 
all 
powers 
granted 
to 
the 
District 
pursuant 
to 
Chapter 
190, 
Florida 
Statutes. 


The 
Board 
has 
the 
final 
responsibility 
for: 


1. 
Assessing 
and 
levying 
assessments. 
2. 
Approving 
budgets. 
3. 
Exercising 
control 
over 
facilities 
and 
properties. 
4. 
Controlling 
the 
use 
of 
funds 
generated 
by 
the 
District. 
5. 
Approving 
the 
hiring 
and 
firing 
of 
key 
personnel. 
6. 
Financing 
improvements. 
In 
evaluating 
how 
to 
define 
the 
government, 
for 
financial 
reporting 
purposes, 
management 
has 
considered 
all 
potential 
component 
units. 
The 
decision 
to 
include 
or 
exclude 
a 
potential 
component 
unit 
in 
the 
reporting 
entity 
was 
made 
by 
applying 
the 
criteria 
set 
forth 
by 
Generally 
Accepted 
Accounting 
Principles 
(GAAP) 
as 
defined 
by 
the 
Governmental 
Accounting 
Standards 
Board 
(GASB). 
Based 
on 
the 
foregoing 
criteria, 
no 
potential 
component 
units 
were 
found. 


NOTE 
2: 
SUMMARY 
OF 
SIGNIFICANT 
ACCOUNTING 
POLICIES 


The 
accounting 
policies 
of 
the 
District 
conform 
to 
GAAP 
as 
applicable 
to 
governments 
in 
accordance 
with 
those 
promulgated 
by 
GASB. 
The 
following 
is 
a 
summary 
of 
the 
more 
significant 
policies: 


Government-wide 
and 
Fund 
Financial 
Statements 


The 
basic 
financial 
statements 
include 
both 
government-wide 
and 
fund 
financial 
statements. 


The 
government-wide 
financial 
statements 
(i.e., 
the 
Statement 
of 
Net 
Position 
and 
the 
Statement 
of 
Activities) 
report 
information 
on 
all 
the 
non-fiduciary 
activities 
of 
the 
primary 
government. 


-15 



Canopy 
Community 
Development 
District 
Notes 
to 
Financial 
Statements 


NOTE 
2: 
SUMMARY 
OF 
SIGNIFICANT 
ACCOUNTING 
POLICIES 
(Continued) 


Governmental 
activities, 
which 
normally 
are 
supported 
by 
assessments, 
are 
reported 
separately 
from 
business-type 
activities, 
which 
rely 
to 
a 
significant 
extent 
on 
fees 
and 
charges 
for 
support. 
The 
business-
type 
activities 
are 
reported 
separately 
in 
government-wide 
financial 
statements; 
however, 
at 
September 
30, 
2022, 
the 
District 
did 
not 
have 
any 
significant 
business-type 
activities. 
Therefore, 
no 
business-type 
activities 
are 
reported. 
Assessments 
and 
other 
items 
not 
properly 
included 
as 
program 
revenues 
(i.e., 
charges 
to 
customers 
or 
applicants 
who 
purchase, 
use, 
or 
directly 
benefit 
from 
goods 
or 
services) 
are 
reported 
as 
general 
revenues. 


Separate 
financial 
statements 
are 
provided 
for 
governmental 
funds. 
Major 
individual 
governmental 
funds 
are 
reported 
as 
separate 
columns 
in 
the 
fund 
financial 
statements. 


Measurement 
Focus, 
Basis 
of 
Accounting 
and 
Basis 
of 
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 
the 
related 
cash 
flows. 
Assessments 
are 
recognized 
as 
revenues 
in 
the 
year 
for 
which 
they 
are 
levied. 
Grants 
and 
other 
similar 
items 
are 
to 
be 
recognized 
as 
revenue 
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 
generally 
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 
along 
with 
operation 
and 
maintenance 
assessments, 
are 
non-ad 
valorem 
special 
assessments 
imposed 
on 
lands 
located 
within 
the 
District 
and 
benefited 
by 
the 
District’s 
activities, 
operation 
and 
maintenance. 
Assessments 
are 
levied 
and 
certified 
for 
collection 
by 
the 
District 
prior 
to 
the 
start 
of 
the 
fiscal 
year 
which 
begins 
October 
1st 
and 
ends 
on 
September 
30th. 
Operation 
and 
maintenance 
special 
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. 


Assessments, 
developer 
contributions, 
intergovernmental 
revenue 
and 
interest 
associated 
with 
the 
current 
fiscal 
period 
are 
all 
considered 
to 
be 
susceptible 
to 
accrual 
and 
have 
been 
recognized 
as 
revenues 
in 
the 
current 
fiscal 
period. 
All 
other 
revenue 
items 
are 
considered 
to 
be 
measurable 
and 
available 
only 
when 
cash 
is 
received 
by 
the 
District. 


-16 



Canopy 
Community 
Development 
District 
Notes 
to 
Financial 
Statements 


NOTE 
2: 
SUMMARY 
OF 
SIGNIFICANT 
ACCOUNTING 
POLICIES 
(Continued) 


The 
District 
reports 
the 
following 
major 
governmental 
funds: 


General 
Fund 
– 
The 
General 
Fund 
is 
the 
primary 
operating 
fund 
of 
the 
District. 
It 
is 
used 
to 
account 
for 
all 
financial 
resources 
except 
those 
required 
to 
be 
accounted 
for 
in 
other 
funds. 


Debt 
Service 
Fund 
– 
The 
Debt 
Service 
Fund 
is 
used 
to 
account 
for 
the 
accumulation 
of 
resources 
for 
the 
annual 
payment 
of 
principal 
and 
interest 
on 
long-term 
debt. 


Capital 
Projects 
Fund 
– 
The 
Capital 
Projects 
Fund 
is 
used 
to 
account 
for 
the 
financial 
resources 
to 
be 
used 
in 
the 
acquisition 
or 
construction 
of 
major 
infrastructure 
within 
the 
District. 


For 
the 
year 
ended 
September 
30, 
2022, 
the 
District 
does 
not 
report 
any 
proprietary 
funds. 


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. 
When 
committed, 
assigned, 
or 
unassigned 
resources 
are 
available 
for 
use 
in 
the 
governmental 
fund 
financial 
statements, 
it 
is 
the 
government’s 
policy 
to 
use 
committed 
resources 
first, 
followed 
by 
assigned 
resources, 
then 
unassigned 
resources 
as 
needed. 


Cash, 
Deposits 
and 
Investments 


The 
District 
maintains 
deposits 
with 
"Qualified 
Public 
Depositories" 
as 
defined 
in 
Chapter 
280, 
Florida 
Statutes. 
All 
Qualified 
Public 
Depositories 
must 
place 
with 
the 
Treasurer 
of 
the 
State 
of 
Florida 
securities 
in 
accordance 
with 
collateral 
requirements 
determined 
by 
the 
State’s 
Chief 
Financial 
Officer. 
In 
the 
event 
of 
default 
by 
a 
Qualified 
Public 
Depository, 
the 
State 
Treasurer 
will 
pay 
public 
depositors 
all 
losses. 
Losses 
in 
excess 
of 
insurance 
and 
collateral 
will 
be 
paid 
through 
assessments 
between 
all 
Qualified 
Public 
Depositories. 


Under 
this 
method, 
all 
the 
District's 
deposits 
are 
fully 
insured 
or 
collateralized 
at 
the 
highest 
level 
of 
security 
as 
defined 
by 
GASB, 
Statement 
Number 
40, 
Deposits 
and 
Investment 
Disclosures 
(An 
Amendment 
of 
GASB, 
Statement 
Number 
3). 


The 
District 
is 
authorized 
to 
invest 
in 
financial 
instruments 
as 
established 
by 
Section 
218.415, 
Florida 
Statutes. 
The 
authorized 
investments 
include 
among 
others 
direct 
obligations 
of 
the 
U.S. 
Treasury; 
the 
Local 
Government 
Surplus 
Trust 
Funds 
as 
created 
by 
Section 
218.405, 
Florida 
Statutes; 
SEC 
registered 
money 
market 
funds 
with 
the 
highest 
credit 
quality 
rating 
from 
a 
nationally 
recognized 
rating 
agency; 
and 
interest-bearing 
time 
deposits 
or 
savings 
accounts 
in 
authorized 
financial 
institutions. 


-17 



Canopy 
Community 
Development 
District 
Notes 
to 
Financial 
Statements 


NOTE 
2: 
SUMMARY 
OF 
SIGNIFICANT 
ACCOUNTING 
POLICIES 
(Continued) 


Capital 
Assets 


Capital 
assets, 
which 
include 
primarily 
infrastructure 
assets 
(e.g., 
roads, 
sidewalks, 
water 
management 
systems 
and 
similar 
items), 
are 
reported 
in 
the 
governmental 
activities 
column 
in 
the 
government-wide 
financial 
statements. 
Capital 
assets 
are 
defined 
by 
the 
District 
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 
and 
estimated 
historical 
cost 
if 
purchased 
or 
constructed. 
Donated 
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 
asset 
lives 
are 
not 
capitalized. 
Major 
outlays 
for 
capital 
assets 
and 
improvements 
are 
capitalized 
as 
projects 
are 
constructed. 


Property, 
plant 
and 
equipment 
of 
the 
primary 
government 
will 
be 
depreciated 
using 
the 
straight-line 
method 
over 
the 
estimated 
useful 
lives. 
Estimated 
useful 
lives 
for 
financial 
reporting 
purposes 
are 
as 
follows: 


Asset 
Years 


Infrastructure 
25 


In 
the 
governmental 
fund 
financial 
statements, 
amounts 
incurred 
for 
the 
acquisition 
of 
capital 
assets 
are 
reported 
as 
fund 
expenditures. 
Depreciation 
expense 
is 
not 
reported 
in 
the 
governmental 
fund 
financial 
statements. 


Estimates 


The 
preparation 
of 
financial 
statements 
in 
conformity 
with 
accounting 
principles 
generally 
accepted 
in 
the 
U.S. 
requires 
management 
to 
make 
estimates 
and 
assumptions 
that 
affect 
certain 
reported 
amounts 
and 
disclosures. 
Accordingly, 
actual 
results 
could 
differ 
from 
those 
estimates. 


Deferred 
Outflows/Inflows 
of 
Resources 


In 
addition 
to 
assets, 
the 
statement 
of 
financial 
position 
and 
balance 
sheet 
– 
governmental 
funds 
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 
of 
this 
type 
of 
item 
at 
September 
30, 
2022. 


In 
addition 
to 
liabilities, 
the 
statement 
of 
financial 
position 
and 
balance 
sheet 
– 
governmental 
funds 
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 
of 
this 
type 
of 
item 
at 
September 
30, 
2022. 


-18 



Canopy 
Community 
Development 
District 
Notes 
to 
Financial 
Statements 


NOTE 
2: 
SUMMARY 
OF 
SIGNIFICANT 
ACCOUNTING 
POLICIES 
(Continued) 


Fund 
Equity 


Net 
position 
in 
the 
government-wide 
financial 
statements 
represents 
the 
difference 
between 
assets 
and 
deferred 
outflows 
of 
resources 
and 
liabilities 
and 
deferred 
inflows 
of 
resources 
and 
is 
categorized 
as 
net 
investment 
in 
capital 
assets, 
restricted 
or 
unrestricted. 
Net 
investment 
in 
capital 
assets 
represents 
assets 
related 
to 
infrastructure 
and 
property, 
plant 
and 
equipment, 
net 
of 
any 
related 
debt. 
Restricted 
net 
position 
represents 
the 
assets 
restricted 
by 
the 
District’s 
bond 
covenants. 


Governmental 
fund 
equity 
is 
classified 
as 
fund 
balance. 
Fund 
balance 
is 
further 
classified 
as 
nonspendable, 
restricted, 
committed, 
assigned, 
or 
unassigned. 
Nonspendable 
fund 
balance 
cannot 
be 
spent 
because 
of 
its 
form. 
Restricted 
fund 
balance 
has 
limitations 
imposed 
by 
creditors, 
grantors, 
or 
contributors 
or 
by 
enabling 
legislation 
or 
constitutional 
provisions. 
Committed 
fund 
balance 
is 
a 
limitation 
imposed 
by 
the 
District 
board 
through 
approval 
of 
resolutions. 
Assigned 
fund 
balance 
is 
a 
limitation 
imposed 
by 
a 
designee 
of 
the 
District 
board. 
Unassigned 
fund 
balance 
in 
the 
General 
Fund 
is 
the 
net 
resources 
in 
excess 
of 
what 
can 
be 
properly 
classified 
in 
one 
of 
the 
above 
four 
categories. 
Negative 
unassigned 
fund 
balance 
in 
other 
governmental 
funds 
represents 
excess 
expenditures 
incurred 
over 
the 
amounts 
restricted, 
committed, 
or 
assigned 
to 
those 
purposes. 


Budgets 


The 
District 
is 
required 
to 
establish 
a 
budgetary 
system 
and 
an 
approved 
annual 
budget. 
Annual 
budgets 
are 
legally 
adopted 
on 
a 
basis 
consistent 
with 
GAAP 
for 
the 
General 
Fund. 
Any 
revision 
to 
the 
budget 
must 
be 
approved 
by 
the 
District 
Board. 
The 
budgets 
are 
compared 
to 
actual 
expenditures. 
In 
instances 
where 
budget 
appropriations 
and 
estimated 
revenues 
have 
been 
revised 
during 
the 
year, 
budget 
data 
presented 
in 
the 
financial 
statements 
represent 
final 
authorization 
amounts. 


The 
District 
follows 
these 
procedures 
in 
establishing 
the 
budgetary 
data 
reflected 
in 
the 
financial 
statements: 


A. 
Each 
year 
the 
District 
Manager 
submits 
to 
the 
District 
Board 
a 
proposed 
operating 
budget 
for 
the 
fiscal 
year 
commencing 
the 
following 
October 
1. 
B. 
A 
public 
hearing 
is 
conducted 
to 
obtain 
comments. 
C. 
Prior 
to 
October 
1, 
the 
budget 
is 
legally 
adopted 
by 
the 
District 
Board. 
D. 
All 
budget 
changes 
must 
be 
approved 
by 
the 
District 
Board. 
E. 
Budgets 
are 
adopted 
on 
a 
basis 
consistent 
with 
accounting 
principles 
generally 
accepted 
in 
the 
United 
States 
of 
America. 
Subsequent 
Events 


Management 
has 
evaluated 
subsequent 
events 
through 
the 
date 
that 
the 
financial 
statements 
were 
available 
to 
be 
issued, 
June 
27, 
2023, 
and 
determined 
there 
were 
no 
events 
that 
occurred 
that 
required 
disclosure. 
No 
subsequent 
events 
occurring 
after 
this 
date 
have 
been 
evaluated 
for 
inclusion 
in 
these 
financial 
statements. 


-19 



Canopy 
Community 
Development 
District 
Notes 
to 
Financial 
Statements 


NOTE 
3: 
CAPITAL 
ASSETS 


The 
District 
encompasses 
approximately 
414 
acres. 
The 
Development 
plan 
for 
the 
proposed 
lands 
within 
the 
District 
includes 
approximately 
900 
single 
family 
residential 
units 
to 
be 
constructed 
in 
approximately 
seven 
phases. 
In 
addition 
to 
the 
single 
family 
residential 
units, 
the 
project 
plans 
to 
include 
parks 
and 
a 
central 
amenity 
center 
in 
the 
form 
of 
a 
clubhouse. 
The 
estimated 
cost 
of 
the 
project 
is 
$90.9 
million. 


The 
following 
is 
a 
summary 
of 
changes 
in 
the 
capital 
assets 
for 
the 
year 
ended 
September 
30, 
2022: 


Beginning 
Transfers 
and 
Ending 
Balance 
Additions 
Conveyances 
Balance 
Governmental 
Activities: 
Capital 
assets 
not 
being 
depreciated 
Infrastructure 
under 
construction 
$ 
19,221,893 
$ 
3,115,124 
$ 
-$ 
22,337,017 


Total 
capital 
assets, 
not 
being 
depreciated 
19,221,893 
3,115,124 
-22,337,017 
Governmental 
activities 
capital 
assets, 
net 
$ 
19,221,893 
$ 
3,115,124 
$ 
-$ 
22,337,017 


NOTE 
4: 
BONDS 
PAYABLE 


In 
October 
2018, 
the 
District 
issued 
$11,405,000 
of 
Special 
Assessment 
Bonds, 
Series 
2018, 
consisting 
of 
$2,225,000 
of 
Series 
2018 
A-1 
Bonds, 
$5,480,000 
of 
Series 
2018 
A-2 
Bonds, 
$2,735,000 
of 
Series 
2018 
A3 
Bonds, 
and 
$965,000 
of 
Series 
2018 
A-4 
Bonds 
with 
interest 
rates 
ranging 
from 
5.00% 
to 
6.25%. 
The 
Bonds 
were 
issued 
to 
finance 
the 
acquisition 
and 
construction 
of 
the 
2019 
project. 
Interest 
is 
paid 
semiannually 
on 
each 
May 
1 
and 
November 
1. 
Principal 
payments 
on 
the 
Series 
2018 
A-1 
and 
Series 
2018 
A-4 
Bonds 
are 
made 
serially 
commencing 
on 
May 
1, 
2020 
through 
May 
1, 
2049. 
Principal 
payments 
on 
the 
Series 
2018 
A-2 
and 
Series 
2018 
A-3 
Bonds 
are 
made 
serially 
commencing 
on 
May 
1, 
2022 
through 
May 
1, 
2049. 


-20 



Canopy 
Community 
Development 
District 
Notes 
to 
Financial 
Statements 


NOTE 
4: 
BONDS 
PAYABLE 
(Continued) 


Long-term 
liability 
activity 
for 
the 
year 
ended 
September 
30, 
2022 
was 
as 
follows: 


Governmental 
Activities 
Bonds 
Payable: 
Series 
2018 
A-1 
Series 
2018 
A-2 
Series 
2018 
A-3 
Series 
2018 
A-4 
Beginning 
Balance 
2,170,000 
$ 
4,190,000 
2,735,000 
935,000 
$ 
Additions 
-
-
-
-
Reductions 
(85,000) 
$ 
(650,000) 
(35,000) 
(15,000) 
Ending 
Balance 
2,085,000 
$ 
3,540,000 
2,700,000 
920,000 
Due 
Within 
One 
Year 
35,000 
$ 
50,000 
40,000 
15,000 
$ 
10,030,000 
$ 
-(785,000) 
$ 
9,245,000 
$ 
$ 
140,000 


The 
Bond 
Indenture 
requires 
that 
the 
District 
maintain 
adequate 
funds 
in 
reserve 
accounts 
to 
meet 
the 
debt 
service 
reserve 
requirements 
as 
defined 
in 
the 
Indenture. 
The 
requirements 
have 
been 
met 
for 
the 
fiscal 
year 
ended 
September 
30, 
2022. 


The 
Bond 
Indenture 
has 
certain 
restrictions 
and 
requirements 
relating 
principally 
to 
the 
use 
of 
proceeds 
to 
pay 
for 
the 
infrastructure 
improvements 
and 
the 
procedure 
to 
be 
followed 
by 
the 
District 
on 
assessments 
to 
property 
owners. 
The 
District 
agreed 
to 
levy 
special 
assessments 
in 
annual 
amounts 
adequate 
to 
provide 
payment 
of 
debt 
service 
and 
to 
meet 
the 
reserve 
requirements. 
The 
District 
is 
in 
compliance 
with 
the 
requirements 
of 
the 
Bond 
Indenture. 


At 
September 
30, 
2022, 
the 
scheduled 
debt 
service 
requirements 
on 
bonds 
payable 
were 
as 
follows: 


Total 
Debt 
For 
the 
Year 
Ending 
September 
30, 
Principal 
Interest 
Service 


2023 
$ 
140,000 
$ 
560,216 
$ 
700,216 


2024 
145,000 
551,791 
696,791 
2025 
160,000 
543,058 
703,058 
2026 
175,000 
533,456 
708,456 
2027 
175,000 
522,933 
697,933 
2028 -2032 
1,065,000 
2,441,652 
3,506,652 
2033 -2037 
1,455,000 
2,076,971 
3,531,971 
2038 -2042 
1,960,000 
1,579,413 
3,539,413 
2043 -2047 
2,435,000 
858,964 
3,293,964 
2048 -2049 
1,535,000 
164,841 
1,699,841 


$ 
9,245,000 
$ 
9,833,295 
$ 
19,078,295 


-21 



Canopy 
Community 
Development 
District 
Notes 
to 
Financial 
Statements 


NOTE 
5: 
RISK 
MANAGEMENT 


The 
District 
is 
exposed 
to 
various 
risks 
of 
loss 
related 
to 
torts; 
theft 
of, 
damage 
to, 
and 
destruction 
of 
assets; 
errors 
and 
omissions; 
and 
natural 
disasters. 
The 
District 
maintains 
commercial 
insurance 
coverage 
to 
mitigate 
the 
risk 
of 
loss. 
Coverage 
may 
not 
extend 
to 
all 
situations. 
Management 
believes 
such 
coverage 
is 
sufficient 
to 
preclude 
any 
significant 
uninsured 
losses 
to 
the 
District. 
There 
have 
not 
been 
any 
claims 
filed 
on 
this 
commercial 
coverage 
since 
inception. 


NOTE 
6: 
MANAGEMENT 
COMPANY 


The 
District 
has 
contracted 
with 
a 
management 
company, 
Governmental 
Management 
Services, 
to 
perform 
management 
advisory 
services, 
which 
include 
financial 
and 
accounting 
advisory 
services. 
Certain 
employees 
of 
the 
management 
company 
also 
serve 
as 
officers 
(Board 
appointed 
non-voting 
positions) 
of 
the 
District. 
Under 
the 
agreement, 
the 
District 
compensates 
the 
management 
company 
for 
management, 
accounting, 
financial 
reporting, 
and 
other 
administrative 
costs. 


NOTE 
7: 
RELATED 
PARTY 
TRANSACTIONS 


A 
significant 
portion 
of 
the 
District’s 
activity 
is 
dependent 
upon 
the 
continued 
involvement 
of 
the 
Developer, 
Ox 
Bottom 
Mortgage 
Holdings, 
LLC, 
the 
loss 
of 
which 
could 
have 
amaterial 
adverse 
effect 
on 
the 
District’s 
operations. 


For 
the 
fiscal 
year 
ended 
September 
30, 
2022, 
the 
Developer 
was 
directly 
assessed 
$136,292 
and 
$651,511 
for 
operations 
and 
maintenance 
and 
debt 
service 
costs, 
respectively. 
As 
of 
September 
30, 
2022, 
the 
Developer 
owed 
$297,585 
to 
the 
District 
in 
debt 
service 
direct 
assessments, 
which 
is 
recorded 
as 
Accounts 
receivable 
on 
the 
accompanying 
Statement 
of 
Net 
Position 
and 
Balance 
Sheet 
– 
Governmental 
Funds. 


During 
the 
year 
ended 
September 
30, 
2022, 
the 
Developer 
paid 
for 
certain 
infrastructure 
costs 
and 
professional 
fees 
as 
they 
have 
in 
the 
years 
since 
inception. 
Per 
the 
terms 
of 
the 
agreement 
outlined 
in 
Note 
9 
below, 
upon 
receiving 
funding 
from 
the 
City 
of 
Tallahassee, 
the 
Developer 
was 
reimbursed 
directly, 
and 
as 
such, 
the 
amounts 
previously 
recorded 
as 
Due 
from 
Developer 
are 
reported 
as 
Intergovernmental 
revenue 
in 
the 
current 
year 
in 
the 
accompanying 
Statement 
of 
Activities 
and 
Statement 
of 
Revenue, 
Expenses 
and 
Changes 
in 
Fund 
Balances 
– 
Governmental 
Funds. 


NOTE 
8: 
COMMITMENTS 


At 
September 
30, 
2022, 
the 
District 
had 
approximately 
$326,000 
remaining 
on 
a 
construction 
contract 
for 
Welaunee 
Boulevard 
Segment 
3B. 
The 
project 
is 
expected 
to 
be 
completed 
during 
fiscal 
year 
2023. 


-22 



Canopy 
Community 
Development 
District 
Notes 
to 
Financial 
Statements 


NOTE 
9: 
INTERGOVERNMENTAL 
REVENUE 


In 
March 
2019, 
the 
District 
entered 
into 
an 
interlocal 
agreement 
with 
the 
City 
of 
Tallahassee 
and 
Leon 
County-City 
of 
Tallahassee 
Blueprint 
Intergovernmental 
Agency. 
This 
agreement 
was 
amended 
and 
restated 
in 
September 
2020. 
The 
District 
has 
agreed 
to 
construct 
part 
of 
segment 
3 
of 
Welaunee 
Boulevard 
and 
the 
accompanying 
sidewalks 
and 
multipurpose 
trails, 
along 
with 
the 
turn 
lane 
portion 
of 
segment 
2 
(the 
“Project”). 
The 
Agency 
has 
included 
Welaunee 
Boulevard 
as 
part 
of 
the 
Blueprint 
2020 
Infrastructure 
project 
25, 
Northeast 
Gateway: 
Welaunee 
Critical 
Area 
Plan 
Regional 
Infrastructure 
Phase 


1. 
In 
accordance 
with 
the 
agreement, 
the 
City 
will 
reimburse 
actual 
construction 
costs 
of 
the 
Project 
incurred 
by 
the 
District 
subject 
to 
(a) 
completion 
of 
an 
entire 
phase 
of 
the 
Project; 
(b) 
acceptance 
of 
completed 
phases 
of 
the 
Project 
by 
the 
City, 
subject 
to 
compliance 
with 
all 
approved 
plans 
and 
specifications 
and 
permitting 
conditions, 
which 
acceptance 
will 
not 
be 
unreasonably 
withheld 
by 
the 
City; 
(c) 
dedication 
of 
the 
completed 
phase 
or 
phases 
of 
the 
Project 
to 
the 
City; 
and 
(d) 
submission 
and 
acceptance 
by 
the 
City 
of 
the 
Project 
documentation. 
No 
payment 
shall 
be 
due 
from 
the 
City 
to 
the 
District 
prior 
to 
October 
1, 
2019. 
The 
District 
shall 
complete 
construction 
of 
the 
Project, 
and 
all 
roadway 
constituting 
the 
Project, 
shall 
be 
dedicated 
and 
accepted 
by 
the 
City, 
by 
or 
before 
December 
31, 
2022. 
The 
City 
and 
Agency 
funding 
for 
the 
Project 
will 
not 
exceed 
$5,813,124. 
In 
August 
2019, 
the 
District 
entered 
into 
a 
construction 
funding 
agreement 
with 
the 
Developer. 
The 
Developer 
agreed 
to 
provide 
the 
funding 
to 
the 
District 
necessary 
to 
complete 
the 
Project 
as 
discussed 
in 
the 
interlocal 
agreement 
above. 
The 
funds 
provided 
by 
the 
Developer 
are 
expected 
to 
be 
reimbursed 
from 
the 
City 
of 
Tallahassee 
through 
the 
District 
up 
to 
$7.05 
million, 
within 
90 
days 
of 
final 
completion 
of 
the 
Project 
and 
acceptance 
by 
the 
City, 
as 
provided 
for 
in 
the 
interlocal 
agreement. 
Within 
45 
days 
of 
receipt 
of 
funds 
by 
the 
District 
from 
the 
City, 
the 
District 
shall 
reimburse 
the 
Developer 
until 
full 
reimbursement 
is 
made 
or 
until 
all 
funds 
received 
from 
the 
City 
are 
exhausted; 
provided, 
however, 
that 
the 
Developer 
recognizes 
the 
Project 
may 
exceed 
the 
amount 
of 
the 
City 
reimbursed 
funds 
and 
the 
District 
shall 
not 
be 
required 
to 
reimburse 
the 
Developer 
for 
any 
amounts 
above 
those 
reimbursed 
by 
the 
City 
to 
the 
District 
for 
the 
Project. 


In 
November 
2020, 
the 
District 
entered 
into 
an 
escrow 
agreement 
with 
the 
Developer, 
Capital 
City 
Bank, 
and 
Ausley 
& 
McMullen, 
P.A. 
(“Escrow 
Agent”). 
The 
parties 
agreed 
that 
the 
reimbursement 
funds 
remitted 
to 
the 
District 
pursuant 
to 
the 
interlocal 
agreement 
should 
be 
paid 
directly 
to 
Capital 
City 
Bank 
in 
order 
to 
repay 
the 
Developer’s 
loan 
from 
this 
bank 
in 
the 
amount 
of 
$4 
million. 
This 
loan 
was 
obtained 
by 
the 
Developer 
in 
order 
to 
meet 
its 
funding 
obligations 
under 
the 
construction 
funding 
agreement 
as 
provided 
above. 
The 
reimbursement 
funds 
have 
been 
placed 
in 
a 
designated 
escrow 
account. 
During 
the 
current 
fiscal 
year, 
approximately 
$3.9 
million 
was 
reimbursed 
to 
the 
Developer 
from 
the 
City 
for 
this 
Project. 
Subsequent 
to 
fiscal 
year-end, 
in 
April 
2023, 
the 
Developer 
received 
an 
additional 
reimbursement 
totaling 
approximately 
$1.8 
million. 


-23 



Required 
Supplemental 
Information 
(Other 
than 
MD&A) 



Canopy 
Community 
Development 
District 
Budget 
to 
Actual 
Comparison 
Schedule 
– 
General 
Fund 


For 
the 
year 
ended 
September 
30, 
2022 
Original 
and 
Actual 
Variance 
with 
Final 
Budget 
Amounts 
Final 
Budget 
Revenue 
Assessments 
248,831 
$ 
251,201$ 
2,370$ 
Developer 
contributions 
342,545 
53,505 
(289,040) 
Interest 
and 
other 
revenue 
2,500 
-(2,500) 
Total 
revenue 
593,876 
304,706 
(289,170) 
Expenditures 
General 
government 
127,876 
132,235 
(4,359) 
Maintenance 
and 
operations 
235,900 
119,200 
116,700 
Amenity 
center 
230,100 
58,895 
171,205 
Total 
expenditures 
593,876 
310,330 
283,546 
Deficit 
of 
revenue 
over 
expenditures 
$ 
-$ 
(5,624) 
$ 
(5,624) 


-24 



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 
Canopy 
Community 
Development 
District 
Leon 
County, 
Florida 


We 
have 
audited, 
in 
accordance 
with 
the 
auditing 
standards 
generally 
accepted 
in 
the 
United 
States 
of 
America 
and 
the 
standards 
applicable 
to 
financial 
audits 
contained 
in 
Government 
Auditing 
Standards 
issued 
by 
the 
Comptroller 
General 
of 
the 
United 
States, 
the 
financial 
statements 
of 
the 
governmental 
activities 
and 
each 
major 
fund 
of 
Canopy 
Community 
Development 
District 
(hereinafter 
referred 
to 
as 
the 
“District”), 
as 
of 
and 
for 
the 
year 
ended 
September 
30, 
2022, 
and 
the 
related 
notes 
to 
the 
financial 
statements, 
which 
collectively 
comprise 
the 
District’s 
basic 
financial 
statements, 
and 
have 
issued 
our 
report 
thereon 
dated 
June 
27, 
2023. 


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) 
as 
a 
basis 
for 
designing 
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 
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 
areasonable 
possibility 
that 
amaterial 
misstatement 
of 
the 
entity’s 
financial 
statements 
will 
not 
be 
prevented, 
or 
detected 
and 
corrected 
on 
a 
timely 
basis. 
A 
significant 
deficiency 
is 
a 
deficiency, 
or 
a 
combination 
of 
deficiencies, 
in 
internal 
control 
that 
is 
less 
severe 
than 
a 
material 
weakness, 
yet 
important 
enough 
to 
merit 
attention 
by 
those 
charged 
with 
governance. 


Our 
consideration 
of 
internal 
control 
was 
for 
the 
limited 
purpose 
described 
in 
the 
first 
paragraph 
of 
this 
section 
and 
was 
not 
designed 
to 
identify 
all 
deficiencies 
in 
internal 
control 
that 
might 
be 
material 
weaknesses 
or 
significant 
deficiencies 
and 
therefore, 
material 
weaknesses 
or 
significant 
deficiencies 
may 
exist 
that 
were 
not 
identified. 
We 
did 
identify 
a 
deficiency 
in 
internal 
control 
described 
below 
as 
IC2022-001 
that 
we 
consider 
to 
be 
a 
material 
weakness. 


-25 -



IC 
2022-001: 
Financial 
Statement 
Close 


. 
Condition: 
The 
District 
did 
not 
accrue 
approximately 
$11,000 
of 
maintenance 
and 
operations 
expenditures 
as 
of 
September 
30, 
2022, 
although 
the 
work 
was 
performed 
prior 
to 
year-end. 


. 
Criteria: 
Internal 
controls 
should 
be 
in 
place 
to 
provide 
reasonable 
assurance 
that 
payables 
and 
the 
related 
expenditures 
are 
appropriate 
and 
properly 
accrued. 


. 
Cause: 
The 
expenditures 
and 
payables 
appear 
to 
have 
been 
overlooked 
when 
the 
District 
staff 
was 
preparing 
its 
annual 
financial 
report. 


. 
Effect: 
Accounts 
payable 
was 
understated 
by 
approximately 
$11,000 
and 
maintenance 
and 
operations 
expenditures 
were 
understated 
by 
approximately 
$11,000. 


. 
Recommendation: 
We 
recommend 
the 
District 
review 
the 
general 
vendor 
activity 
within 
a 
reasonable 
timeframe 
from 
year-end 
to 
ensure 
that 
all 
applicable 
liabilities 
are 
identified 
and 
recorded 
in 
the 
proper 
period. 


The 
District’s 
response 
to 
the 
finding 
identified 
in 
our 
audit 
is 
described 
below. 
The 
District’s 
response 
was 
not 
subjected 
to 
the 
auditing 
procedures 
applied 
in 
the 
audit 
of 
the 
financial 
statements 
and, 
accordingly, 
we 
express 
no 
opinion 
on 
it. 


. 
Management 
response: 
The 
District 
has 
already 
taken 
further 
steps 
to 
ensure 
that 
this 
oversight 
is 
avoided 
in 
the 
future. 


Compliance 
and 
Other 
Matters 


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


Purpose 
of 
this 
Report 


The 
purpose 
of 
this 
report 
is 
solely 
to 
describe 
the 
scope 
of 
our 
testing 
of 
internal 
control 
and 
compliance 
and 
the 
results 
of 
that 
testing, 
and 
not 
to 
provide 
an 
opinion 
on 
the 
effectiveness 
of 
the 
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. 


-26 -



CARR, 
RIGGS 
& 
INGRAM, 
LLC 


Miramar 
Beach, 
Florida 
June 
27, 
2023 


-27 -



MANAGEMENTLETTERTotheBoardofSupervisorsCanopyCommunityDevelopmentDistrictLeonCounty,FloridaMANAGEMENTLETTERTotheBoardofSupervisorsCanopyCommunityDevelopmentDistrictLeonCounty,Florida
Report 
on 
the 
Financial 
Statements 


We 
have 
audited 
the 
financial 
statements 
of 
the 
Canopy 
Community 
Development 
District 
(“District”) 
as 
of 
and 
for 
the 
fiscal 
year 
ended 
September 
30, 
2022, 
and 
have 
issued 
our 
report 
thereon 
dated 
June 
27, 
2023. 


Auditors’ 
Responsibility 


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


Other 
Reporting 
Requirements 


We 
have 
issued 
our 
Independent 
Auditors’ 
Report 
on 
Internal 
Control 
over 
Financial 
Reporting 
and 
Compliance 
and 
Other 
Matters 
Based 
on 
an 
Audit 
of 
the 
Financial 
Statements 
Performed 
in 
Accordance 
with 
Government 
Auditing 
Standards 
and 
Independent 
Accountant’s 
Report 
on 
an 
examination 
conducted 
in 
accordance 
with 
AICPA 
Professional 
Standards, 
AT-C 
Section 
315, 
regarding 
compliance 
requirements 
in 
accordance 
with 
Chapter 
10.550, 
Rules 
of 
the 
Auditor 
General. 
Disclosures 
in 
those 
reports, 
which 
are 
dated 
June 
27, 
2023, 
should 
be 
considered 
in 
conjunction 
with 
this 
management 
letter. 


Prior 
Audit 
Findings 


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


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. 
The 
information 
required 
is 
disclosed 
in 
the 
notes 
to 
the 
financial 
statements. 


-28 -



Financial 
Condition 
and 
Management 


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


Pursuant 
to 
Sections 
10.554(1)(i)5.b. 
and 
10.556(8), 
Rules 
of 
the 
Auditor 
General, 
we 
applied 
financial 
condition 
assessment 
procedures 
for 
the 
District. 
It 
is 
management’s 
responsibility 
to 
monitor 
the 
District’s 
financial 
condition, 
and 
our 
financial 
condition 
assessment 
was 
based 
in 
part 
on 
representations 
made 
by 
management 
and 
the 
review 
of 
financial 
information 
provided 
by 
same. 


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


Specific 
Information 


As 
required 
by 
Section 
218.39(3)(c), 
Florida 
Statutes, 
and 
Section 
10.554(1)(i)6, 
Rules 
of 
the 
Auditor 
General, 
the 
Canopy 
Community 
Development 
District 
reported: 


a. 
The 
total 
number 
of 
district 
employees 
compensated 
in 
the 
last 
pay 
period 
of 
the 
district’s 
fiscal 
year 
as 
0. 
b. 
The 
total 
number 
of 
independent 
contractors 
to 
whom 
nonemployee 
compensation 
was 
paid 
in 
the 
last 
month 
of 
the 
district’s 
fiscal 
year 
as 
0. 
c. 
All 
compensation 
earned 
by 
or 
awarded 
to 
employees, 
whether 
paid 
or 
accrued, 
regardless 
of 
contingency 
as 
$0. 
d. 
All 
compensation 
earned 
by 
or 
awarded 
to 
nonemployee 
independent 
contractors, 
whether 
paid 
or 
accrued, 
regardless 
of 
contingency 
as 
$0. 
e. 
Each 
construction 
project 
with 
a 
total 
cost 
of 
at 
least 
$65,000 
approved 
by 
the 
district 
that 
is 
scheduled 
to 
begin 
on 
or 
after 
October 
1 
of 
the 
fiscal 
year 
being 
reported, 
together 
with 
the 
total 
expenditures 
for 
such 
projects 
as 
$1,889,187. 
f. 
The 
District 
did 
not 
amend 
its 
final 
adopted 
budget 
under 
Section189.016(6), 
Florida 
Statutes. 
As 
required 
by 
Section 
218.39(3)(c), 
Florida 
Statutes, 
and 
Section 
10.554(1)(i)7, 
Rules 
of 
the 
Auditor 
General, 
the 
Canopy 
Community 
Development 
District 
reported: 


a. 
The 
rate 
or 
rates 
of 
non-ad 
valorem 
special 
assessments 
imposed 
by 
the 
District 
as 
$994 
to 
$1,194 
per 
lot. 
b. 
The 
total 
amount 
of 
special 
assessment 
collected 
by 
or 
on 
behalf 
of 
the 
district 
as 
$1,018,303. 
-29 -



c. 
The 
total 
amount 
of 
outstanding 
bonds 
issued 
by 
the 
district 
as 
$9,245,000. 
Additional 
Matters 


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


Purpose 
of 
this 
Letter 


Our 
management 
letter 
is 
intended 
solely 
for 
the 
information 
and 
use 
of 
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.
CARR,RIGGS&INGRAM,LLC
Miramar 
Beach, 
Florida 
June 
27, 
2023 


-30 -



INDEPENDENTACCOUNTANT’SREPORTTotheBoardofSupervisorsCanopyCommunityDevelopmentDistrictLeonCounty,FloridaINDEPENDENTACCOUNTANT’SREPORTTotheBoardofSupervisorsCanopyCommunityDevelopmentDistrictLeonCounty,Florida
We 
have 
examined 
Canopy 
Community 
Development 
District’s 
compliance 
with 
the 
requirements 
of 
Section 
218.415, 
Florida 
Statutes, 
Local 
Government 
Investment 
Policies, 
during 
the 
year 
ended 
September 
30, 
2022. 
Management 
of 
the 
District 
is 
responsible 
for 
the 
District’s 
compliance 
with 
the 
specified 
requirements. 
Our 
responsibility 
is 
to 
express 
an 
opinion 
on 
the 
District’s 
compliance 
based 
on 
our 
examination. 


Our 
examination 
was 
conducted 
in 
accordance 
with 
attestation 
standards 
established 
by 
the 
American 
Institute 
of 
Certified 
Public 
Accountants. 
Those 
standards 
require 
that 
we 
plan 
and 
performed 
the 
examination 
to 
obtain 
reasonable 
assurance 
about 
whether 
the 
District 
complied, 
in 
all 
material 
respects, 
with 
the 
specified 
requirements 
referenced 
above. 
An 
examination 
involves 
performing 
procedures 
to 
obtain 
evidence 
about 
whether 
the 
District 
complied 
with 
the 
specified 
requirements. 
The 
nature, 
timing, 
and 
extent 
of 
the 
procedures 
selected 
depend 
on 
our 
judgment, 
including 
an 
assessment 
of 
the 
risks 
of 
material 
noncompliance, 
whether 
due 
to 
fraud 
or 
error. 
We 
believe 
that 
the 
evidence 
we 
obtained 
is 
sufficient 
and 
appropriate 
to 
provide 
a 
reasonable 
basis 
for 
our 
opinion. 


We 
are 
required 
to 
be 
independent 
and 
to 
meet 
our 
ethical 
responsibilities 
in 
accordance 
with 
relevant 
ethical 
requirements 
relating 
to 
the 
engagement. 


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, 
2022. 


This 
report 
is 
intended 
solely 
for 
the 
information 
and 
use 
of 
management 
and 
the 
State 
of 
Florida 
Auditor 
General 
and 
is 
not 
intended 
to 
be 
and 
should 
not 
be 
used 
by 
anyone 
other 
than 
these 
specified 


parties.
CARR,RIGGS&INGRAM,LLC
Miramar 
Beach, 
Florida 
June 
27, 
2023 


-31 -