••
••

I	\\

I	\	\	SHINGLE CREEK		
					
\		'\.. \	COMMUNITY		

'
\
	\	DEVELOPMENT		
	'   \			
	"-	\		
-'L_		DISTRICT		
71'				
'				
I				

FINANCIAL REPORT

Year Ended September 30, 2017

MCDIRMIT Ill DA VIS

CERTIFIED PUBLIC ACCOUNTANTS AND ADVISORS

SHINGLE CREEK COMMUNITY DEVELOPMENT DISTRICT

TABLE OF CONTENTS

Year Ended September 30, 2017

I.  Financial Section:	Page		
			
Independent Auditor's Report	1		
Management's Discussion and Analysis	3		
Financial Statements:			
Government-Wide Financial Statements:			
Statement of Net Position	7		
Statement of Activities	8		
Fund Financial Statements:			
Balance Sheet - Governmental Funds	9		
Statement of Revenues, Expenditures and Changes in Fund Balances -			
Governmental Funds	10		
Reconciliation of the Statement of Revenues, Expenditures and			
Changes in Fund Balances of Governmental Funds			
to the Statement of Activities	11		
Statement of Revenues, Expenditures and Changes in Fund Balance -			
Budget and Actual - General Fund	12		
Notes to Financial Statements	13		
II. Compliance Section:			
Independent Auditor's Report on Internal Control over Financial Reporting and on			
Compliance and Other Matters Based on an Audit of Financial Statements			
Performed in Accordance with Government Auditing Standards	25		
Management Comments	27		
Independent Auditor's Report on Compliance with the Requirements			
of Section 218.415, Florida Statutes	29		

MCDIRMIT Ill DAVIS

CERTIFIED PUBLIC ACCOUNTANTS AND ADVISORS

INDEPENDENT AUDITOR'S REPORT

To the Board of Supervisors

Shingle Creek Community Development District

Report on the Financial Statements

We have audited the accompanying financial statements of the governmental activities and each major fund of the Shingle Creek Community Development District (the “District”), as of and for the year ended September 30, 2017, and the related notes to the financial statements which collectively comprise the District’s basic financial statements as listed in the table of contents.

Management’s Responsibility for the Financial Statements

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

Auditor’s Responsibility

Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free 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 procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting principles used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

MCDIRMIT DAVIS & COMPANY, LLC

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

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

1

Opinions

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, and each major fund of the Shingle Creek Community Development District, as of September 30, 2017, and the respective changes in financial position thereof and the respective budgetary comparison for the General Fund for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Other Matters

Required Supplementary Information

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

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued a report dated April 30, 2018, on our consideration of the Shingle Creek Community Development District’s, internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the District’s internal control over financial reporting and compliance.

Orlando, Florida

April 30, 2018

2

MANAGEMENT’S DISCUSSION AND ANALYSIS

Our discussion and analysis of the Shingle Creek Community Development District (the “District”) financial accomplishments provide an overview of the District’s financial activities for the year ended September 30, 2017. Please read it in conjunction with the District’s Independent Auditor’s Report, financial statements and accompanying notes.

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

Financial Highlights

	The assets of the District exceeded its liabilities at September 30, 2017 by $47,012,478, a decrease of $409,972 in comparison with the prior year.

	At September 30, 2017, the District’s governmental funds reported a combined fund balance of $8,426,666, a decrease of $6,076,416 in comparison with the prior year.

Overview of the Financial Statements

This discussion and analysis is intended to serve as an introduction to the Shingle Creek Community Development District’s financial statements. The District’s financial statements comprise three components: 1) government-wide financial statements, 2) fund financial statements and 3) notes to financial statements.

Government-Wide Financial Statements

The government-wide financial statements are designed to provide readers with a broad overview of the District’s finances, in a manner similar to a private-sector business.

The statement of net position presents information on all of the District’s assets and liabilities, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the District is improving or deteriorating.

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

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

3

MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)

Fund Financial Statements

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

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

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

The District maintains three individual governmental funds. Information is presented separately in the governmental fund balance sheet and the governmental fund statement of revenues, expenditures and changes in fund balances for the general fund, debt service fund and capital projects fund, all of which are considered to be major funds.

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

Notes to Financial Statements

The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements.

Government-Wide Financial Analysis

Statement of Net Position - The District’s net position was $47,012,478 at September 30, 2017. The following analysis focuses on the net position of the District’s governmental activities.

4

MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)

Government-Wide Financial Analysis (Continued):

Shingle Creek Community Development District

Statement of Net Position

	September 30,		September 30,	
		2017			2016	
Assets, excluding capital assets	$	8,453,430		$	14,596,463	
Capital Assets, net of depreciation		59,883,848			54,558,005	
Total assets		68,337,278			69,154,468	
Liabilities, excluding long-term liabilities		473,870			545,698	
Long-term Liabilities		20,850,930			21,186,320	
Total liabilities		21,324,800			21,732,018	
Net Position:						
Net investment in capital assets		45,537,878			46,055,127	
Restricted for debt service		1,176,121			1,157,023	
Unrestricted		298,479			210,300	
Total net position	$	47,012,478	$	47,422,450	

The following is a summary of the District’s governmental activities for the fiscal years ended September 30, 2017 and 2016.

Revenues:

Program revenues

Total revenues

Expenses:

General government

Maintenance and operations

Interest on long-term debt

Total expenses

Change in net position

Net position - beginning of year Net position - ending

Changes in Net Position

Year ended September 30,

2017	2016

$	1,864,891	$	1,852,195

1,864,891	1,852,195

123,637	88,100

1,067,520	1,026,342

1,083,706	1,095,170

2,274,863	2,209,612

(409,972)	(357,417)

47,422,450	47,779,867

$	47,012,478	$	47,422,450

5

MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)

Government-Wide Financial Analysis (Continued):

As noted above and in the statement of activities, the cost of all governmental activities during the year ended September 30, 2017 was $2,274,863. The majority of these costs are comprised of maintenance and operations and interest on long-term debt.

Financial Analysis of the Government’s Funds

The District uses fund accounting to ensure and demonstrate compliance with finance related legal requirements. The focus of the District’s governmental funds is to provide information on near-term inflows, outflows and balances of spendable resources. Such information is useful in assessing the District’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year. At September 30, 2017, the District’s governmental funds reported combined ending fund balances of $8,426,666. Of this total, $19,653 is nonspendable, $8,128,187 is restricted and $278,826 is unassigned.

The fund balance of the general fund increased $87,055 due to special assessment revenue exceeding expenditures. The debt service fund balance increased $13,887. The capital projects fund decreased $6,177,358 due to capital outlay expenditures.

General Fund Budgetary Highlights

An operating budget was adopted and maintained by the governing board for the District pursuant to the requirements of Florida Statutes. The budget is adopted using the same basis of accounting that is used in preparation of the fund financial statements. There were no amendments to the September 30, 2017 general fund budget. The legal level of budgetary control is at the fund level.

Capital Asset and Debt Administration

Capital Assets - At September 30, 2017, the District had $59,883,848 invested in infrastructure, net of accumulated depreciation. More detailed information about the District’s capital assets is presented in the notes to the financial statements.

Capital Debt - At September 30, 2017, the District had $21,120,000 in bonds outstanding. More detailed information about the District’s capital debt is presented in the notes to the financial statements.

Requests for Information

If you have questions about this report or need additional financial information, contact the Shingle Creek Community Development District’s Finance Department at 135 W. Central Blvd, Suite 320, Orlando, Florida 32801.

6

FINANCIAL STATEMENTS

SHINGLE CREEK COMMUNITY DEVELOPMENT DISTRICT STATEMENT OF NET POSITION September 30, 2017

	Governmental		
Assets:		Activities		
				
Cash	$	304,556		
Assessments receivable		5,976		
Prepaid costs		19,653		
Restricted assets:				
Temporarily restricted investments		8,123,245		
Capital assets:				
Capital assets not being depreciated		35,695,344		
Capital assets being depreciated, net		24,188,504		
Total assets		68,337,278		
Liabilities:				
Accounts payable and accrued expenses		26,764		
Accrued interest payable		447,106		
Noncurrent liabilities:				
Due within one year		360,000		
Due in more than one year		20,490,930		
Total liabilities		21,324,800		
Net Position:				
Net investment in capital assets		45,537,878		
Restricted for debt service		1,176,121		
Unrestricted		298,479		
Net position	$	47,012,478		

The accompanying Notes to Financial Statements are an integral part of this statement. 7

SHINGLE CREEK COMMUNITY DEVELOPMENT DISTRICT

STATEMENT OF ACTIVITIES

Year Ended September 30, 2017

																Net (Expense)	
																	Revenue and	
																Changes in Net	
									Program Revenue						Position	
							Charges		Operating Grants	Capital Grants					
							for			and		and			Governmental	
Functions/Programs		Expenses		Services			Contributions	Contributions				Activities	
																		
Governmental activities:																	
General government	$	123,637			$	37,931	$	-		$	-	$	(85,706)	
Maintenance and operations		1,067,520				327,507			-			-				(740,013)	
Interest on long-term debt		1,083,706				1,431,273			6,921			61,259				415,747	
Total governmental activities	$	2,274,863			$	1,796,711		$	6,921		$	61,259				(409,972)	
		General Revenues:												-	
			Change in net position										(409,972)	
		Net Position - beginning										47,422,450	
		Net Position - ending								$	47,012,478	

The accompanying Notes to Financial Statements are an integral part of this statement. 8

SHINGLE CREEK COMMUNITY DEVELOPMENT DISTRICT

BALANCE SHEET

GOVERNMENTAL FUNDS

September 30, 2017

									Capital			Total		
											Governmental		
Assets:		General			Debt Service				Projects			Funds		
														
Cash	$	304,556	$	-	$	-	$	304,556		
Investments		-			1,618,285				6,504,960			8,123,245		
Assessments receivable		1,034			4,942				-			5,976		
Prepaid costs		19,653			-				-			19,653		
Total assets	$	325,243	$	1,623,227	$	6,504,960	$	8,453,430		
Liabilities and Fund Balances:														
														
Liabilities:														
Accounts payable and accrued expenses	$	26,764	$	-	$	-	$	26,764		
Total liabilities		26,764			-				-			26,764		
Fund Balances:														
Nonspendable		19,653			-				-			19,653		
Restricted for:														
Debt service		-			1,623,227				-			1,623,227		
Capital projects		-			-				6,504,960			6,504,960		
Unassigned		278,826			-				-			278,826		
Total fund balances		298,479			1,623,227				6,504,960			8,426,666		
Total liabilities and fund balances	$	325,243		$	1,623,227		$	6,504,960					
												
Amounts reported for governmental activities in the statement of net position are									
different because:														
Capital assets used in governmental activities are not financial resources and therefore are not reported in			59,883,848		
the funds.														
Liabilities not due and payable from current available resources are not reported in governmental fund					
statements. All liabilities, both current and long-term, are reported in the government-wide statements.					
Accrued interest payable				(447,106)									
Bonds payable					(20,850,930)							(21,298,036)		
Net Position of Governmental Activities										$	47,012,478		

The accompanying Notes to Financial Statements are an integral part of this statement. 9

SHINGLE CREEK COMMUNITY DEVELOPMENT DISTRICT

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES

GOVERNMENTAL FUNDS

Year Ended September 30, 2017

											Total		
								Capital		Governmental		
Revenues:		General			Debt Service			Projects			Funds		
													
Special assessments	$	365,438	$	1,431,273	$	-	$	1,796,711		
Investment income		-			6,921			61,259			68,180		
Total revenues		365,438			1,438,194			61,259			1,864,891		
Expenditures:													
Current:													
General government		116,137			-			-			116,137		
Maintenance and operations		162,246			-			-			162,246		
Debt service:													
Interest		-			1,079,307			-			1,079,307		
Principal		-			345,000			-			345,000		
Capital outlay		-			-			6,238,617			6,238,617		
Total expenditures		278,383			1,424,307			6,238,617			7,941,307		
Net change in fund balances		87,055			13,887			(6,177,358)			(6,076,416)		
Fund Balances - beginning of year		211,424			1,609,340			12,682,318			14,503,082		
Fund Balances - end of year	$	298,479	$	1,623,227	$	6,504,960	$	8,426,666		

The accompanying Notes to Financial Statements are an integral part of this statement. 10

SHINGLE CREEK COMMUNITY DEVELOPMENT DISTRICT

RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE
STATEMENT OF ACTIVITIES

Year Ended September 30, 2017

Amounts reported for Governmental Activities in the Statement of Activities are different because:

Net change in fund balances - total governmental funds (page 10)	$   (6,076,416)	

Governmental funds report outlays for capital assets as expenditures because such outlays use current financial resources; however, in the statement of net position the cost of those assets is recorded as capital assets. Depreciation on capital assets is not recognized in the fund statements but is reported as an expense in the statement of activities:

Capital outlay	$	6,238,617				
Depreciation expense		(912,774)			5,325,843	
Repayments of long-term liabilities are reported as expenditures in governmental funds, while		
repayments reduce long-term liabilities in the statement of net position.					345,000	
Some expenses reported in the statement of activities do not require the use of current financial		
resources and, therefore, are not reported as expenditures in governmental funds.						
Change in accrued interest	$	5,211				
Amortization of bond discount		(9,610)			(4,399)	
Change in Net Position of Governmental Activities (page 8)		$	(409,972)	

The accompanying Notes to Financial Statements are an integral part of this statement. 11

SHINGLE CREEK COMMUNITY DEVELOPMENT DISTRICT

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL - GENERAL FUND

Year Ended September 30, 2017

											Variance with		
									Actual		Final Budget		
												Positive		
		Budgeted Amounts				Amounts			(Negative)		
Revenues:		Original			Final									
														
Special Assessments	$	359,955	$	359,955	$	365,438	$	5,483		
Total revenues		359,955			359,955				365,438			5,483		
Expenditures:														
Current:														
General government		132,875			132,875				116,137			16,738		
Maintenance and operations		227,080			227,080				162,246			64,834		
Total expenditures		359,955			359,955				278,383			81,572		
Excess (Deficit) of Revenues Over														
Expenditures		-			-				87,055			87,055		
Net change in fund balance		-			-				87,055			87,055		
Fund Balance - beginning		211,424			211,424				211,424			-		
Fund Balance - ending	$	211,424	$	211,424	$	298,479	$	87,055		

The accompanying Notes to Financial Statements are an integral part of this statement. 12

NOTES TO FINANCIAL STATEMENTS

SHINGLE CREEK COMMUNITY DEVELOPMENT DISTRICT NOTES TO FINANCIAL STATEMENTS Year Ended September 30, 2017

Note 1 - Summary of Significant Accounting Policies:

Reporting Entity

The Shingle Creek Community Development District, (the “District”) was established by Osceola County Ordinance #05-15 enacted on May 23, 2005 pursuant to the Uniform Community Development District Act of 1980, otherwise known as Chapter 190, Florida Statutes. The Act provides, among other things, the power to manage basic services for community development, the power to borrow money and issue bonds, and the power to levy and collect non-ad valorem assessments for the financing and delivery of capital infrastructure. The District was established for the purpose of financing and managing the acquisition, construction, maintenance and operation of a portion of the infrastructure necessary for community development within the District.

The District is governed by the Board of Supervisors (the “Board”), which is composed of five members. At present, the Supervisors are elected on an at large basis by the owners of the property within the District. The Board of Supervisors of the District exercises all powers granted to the District pursuant to Chapter 190, Florida Statutes. At September 30, 2017, most of the Board of Supervisors are affiliated with the Developer, LEN OT Holdings, LLC (Lennar). The District is economically dependent on the Developer.

The Board has the final responsibility for, among other things:

1.	Allocating 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.

The financial statements were prepared in accordance with Governmental Accounting Standards Board (“GASB”) Statements 14, 39 and 61. Under the provisions of those standards, the financial reporting entity consists of the primary government, organizations for which the District Board of Supervisors is considered to be financially accountable, and other organizations for which the nature and significance of their relationship with the District are such that, if excluded, the financial statements of the District would be considered incomplete or misleading. There are no entities considered to be component units of the District; therefore, the financial statements include only the operations of the District.

13

SHINGLE CREEK COMMUNITY DEVELOPMENT DISTRICT NOTES TO FINANCIAL STATEMENTS (CONTINUED) Year Ended September 30, 2017

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

Government-Wide and Fund Financial Statements

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

The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the non-fiduciary activities of the primary government. For the most part, the effect of interfund activity has been removed from these statements.

The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers who purchase, use, or directly benefit from goods, services or privileges provided by a given function or segment and 2) grants, contributions and investment income that are restricted to meeting the operational or capital requirements of a particular function or segment and 3) operating-type special assessments that are treated as charges for services (including assessments for maintenance and debt service). Other items not included among program revenues are reported instead as general revenues.

Measurement Focus, Basis of Accounting and Financial Statement Presentation

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

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

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

14

SHINGLE CREEK COMMUNITY DEVELOPMENT DISTRICT NOTES TO FINANCIAL STATEMENTS (CONTINUED) Year Ended September 30, 2017

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

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

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

The District reports the following major governmental funds:

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

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

Capital Projects Fund - accounts for the accumulation of resources to be used in the acquisition or construction of major infrastructure within the District.

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

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

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

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

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

Prepaid Items - Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements.

15

SHINGLE CREEK COMMUNITY DEVELOPMENT DISTRICT NOTES TO FINANCIAL STATEMENTS (CONTINUED) Year Ended September 30, 2017

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

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

Capital Assets - Capital assets, which include property, plant, equipment and infrastructure assets (e.g., utilities system, stormwater system, landscaping and similar items), are reported in the applicable governmental activities column in the government-wide financial statements. Capital assets are defined by the government as assets with an initial, individual cost of more than $5,000 and an estimated useful life in excess of two years. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at acquisition value at the date of donation.

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

Property, plant and equipment of the District are depreciated using the straight-line method over the following estimated useful lives:

Assets		Years	
Infrastructure		30	

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

In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as expenditures.

Deferred Outflows/Inflows of Resources - In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The District does not have any item that qualifies for reporting in this category for the year ended September 30, 2017.

16

SHINGLE CREEK COMMUNITY DEVELOPMENT DISTRICT NOTES TO FINANCIAL STATEMENTS (CONTINUED) Year Ended September 30, 2017

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

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

Deferred Outflows/Inflows of Resources (Continued) - In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The District does not have any item that qualifies for reporting in this category for the year ended September 30, 2017.

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

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

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

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

Other Disclosures

Use of Estimates - The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenditures during the reporting period. Actual results could differ from those estimates.

17

SHINGLE CREEK COMMUNITY DEVELOPMENT DISTRICT NOTES TO FINANCIAL STATEMENTS (CONTINUED) Year Ended September 30, 2017

Note 2 - Stewardship, Compliance and Accountability:

Budgetary Information

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

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

1.	Each year the District Manager submits to the District Board proposed budgets for the fiscal year commencing the following October 1.

2.	A public hearing is conducted to obtain public comments.

3.	Prior to October 1, the budget is legally adopted by the District Board.

4.	Subject to certain limited exceptions set forth in the District’s appropriation resolutions adopted each year, all budget changes must be approved by the District Board.

5.	The budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America.

Note 3 - Deposits and Investments:

Deposits

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

18

SHINGLE CREEK COMMUNITY DEVELOPMENT DISTRICT NOTES TO FINANCIAL STATEMENTS (CONTINUED) Year Ended September 30, 2017

Note 3 - Deposits and Investments (Continued):

Investments

The District categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The fair value is the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. The hierarchy is based on the valuation inputs used to measure the fair value of the asset.

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

The District has the following recurring fair value measurements as of September 30, 2017:

	Fidelity Government Portfolio Fund #57 of $8,123,245 are valued using Level 2 inputs.

The District’s investment policy is governed by State Statutes and the District Trust Indenture. This policy allows investments in any financial institution that is a qualified public depository of the State of Florida as identified by the State Treasurer, in accordance with Chapter 280 of the Florida Statutes. Authorized investments are:

1.	The State Board of Administration Local Government Investment Pool (SBA);

2.	Securities and Exchange Commission Registered Money Market Funds with the highest credit quality rating from a nationally recognized rating agency;

3.	Interest-bearing savings accounts and certificates of deposit in state-certified qualified public depositories;

4.	Direct obligations of the U.S. Treasury.

						Weighted	
				Credit		Average	
Investment Type		Fair Value		Rating		Maturity	
Fidelity Government Portfolio Fund #57	$  8,123,245		AAAm		30 Days	

19

SHINGLE CREEK COMMUNITY DEVELOPMENT DISTRICT NOTES TO FINANCIAL STATEMENTS (CONTINUED) Year Ended September 30, 2017

Note 3 - Deposits and Investments (Continued):

Credit Risk:

The District’s investment policy limits credit risk by restricting authorized investments to those described. Investments in U.S. Government securities and agencies must be backed by the full faith and credit of the United States Government. Short term bond funds shall be rated by a nationally recognized ratings agency and shall maintain the highest credit quality rating.

Custodial Credit Risk:

In the case of deposits, this is the risk that, in the event of a bank failure, the District’s deposits may not be returned to it. The District’s investment policy requires that bank deposits be secured as provided by Chapter 280, Florida Statutes. This law requires local governments to deposit funds only in financial institutions designated as qualified public depositories by the Chief Financial Officer of the State of Florida, and creates the Public Deposits Trust Fund, a multiple financial institution pool with the ability to assess its member financial institutions for collateral shortfalls if a default or insolvency has occurred. At September 30, 2017, all of the District’s bank deposits were in qualified public depositories.

For an investment, this is the risk that, in the event of the failure of the counterparty, the government will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. At September 30, 2017, none of the investments listed are exposed to custodial credit risk because their existence is not evidenced by securities that exist in physical or book entry form.

Concentration of Credit Risk:

The District’s investment policy does not specify limits on the amount the District may invest in any one issuer.

Interest Rate Risk:

The District’s investment policy does not specifically address interest rate risk; however, the general investment policy is to apply the prudent-person rule: Investments are made as a prudent person would be expected to act, with discretion and intelligence, to seek reasonable income, preserve capital, and in general, avoid speculative investments. The District manages its exposure to declines in fair values by investing primarily in pooled investments that have a weighted average maturity of less than three months.

20

SHINGLE CREEK COMMUNITY DEVELOPMENT DISTRICT NOTES TO FINANCIAL STATEMENTS (CONTINUED) Year Ended September 30, 2017

Note 4 - Capital Assets:

Capital asset activity for the year ended September 30, 2017 was as follows:

		Beginning									Ending		
Governmental Activities:		Balance		Additions		Disposals			Balance		
													
Capital Assets, not being depreciated:													
Land and land improvements	$	22,315,159	$	-	$	-	$	22,315,159		
Infrastructure under construction		7,141,568			6,238,617			-			13,380,185		
Total capital assets, not being depreciated		29,456,727			6,238,617			-			35,695,344		
Capital Assets Being Depreciated:		27,383,213			-			-			27,383,213		
Infrastructure													
Total capital assets, being depreciated		27,383,213			-			-			27,383,213		
Less Accumulated Depreciation for:		(2,281,935)			(912,774)			-			(3,194,709)		
Infrastructure													
Total accumulated depreciation		(2,281,935)			(912,774)			-			(3,194,709)		
Total capital assets being depreciated, net		25,101,278			(912,774)			-			24,188,504		
Governmental activities capital assets, net	$	54,558,005	$	5,325,843	$	-	$	59,883,848		

Depreciation expense for 2017 in the amount of $912,774 was charged to maintenance and operations.

Note 5 - Long-Term Liabilities:

Series 2015 Bonds

In May 2015, the District issued $21,465,000 of Special Assessment Bonds, Series 2015. The Series 2015 Bonds are due on November 1, 2045 with a fixed interest rate between 3.625% and 5.4%. The Bonds were issued to finance the acquisition and construction of certain improvements for the benefit of the property within the District and pay certain bond issuance costs. Interest is paid semiannually on each May 1 and November 1, commencing on November 1, 2015. Principal on the Series 2015 Bonds is due in annual installments through November 1, 2045.

In a previous year, an entity affiliated with the Developer acquired a previous Bond Series (2006 Bonds), in a variety of transactions. As a condition to closing on the Series 2015 Bonds, the outstanding balance of the Series 2006 Bonds totaling $69.7 million was cancelled and liens against Series 2006 special assessments was released.

21

SHINGLE CREEK COMMUNITY DEVELOPMENT DISTRICT NOTES TO FINANCIAL STATEMENTS (CONTINUED) Year Ended September 30, 2017

Note 5 - Long-Term Liabilities (Continued):

Series 2015 Bonds (Continued)

The Bonds are subject to extraordinary mandatory redemption prior to their selected maturity in the manner determined by the Bond Registrar if certain events occurred as outlined in the Bond Indenture.

The Bond Indentures require that the District maintain adequate funds in a reserve account to meet the debt service reserve requirement as defined in the Indenture. This requirement has been met at September 30, 2017.

The Bond Indentures have certain restrictions and requirements relating principally to the use of proceeds to pay for the infrastructure improvements and the procedures to be followed by the District on assessments to property owners. 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.

Total principal and interest remaining on the Series 2015 Bonds at September 30, 2017 is $40,961,588. For the year ended September 30, 2017, principal and interest of $1,424,307 was paid. Total special assessment revenue pledged was $1,431,273.

Long-term debt activity for the year ended September 30, 2017 was as follows:

		Beginning									Ending		Due Within		
		Balance		Increases			Decreases			Balance			One Year		
Governmental activities:																
Bonds Payable:																
Series 2015	$	21,465,000	$	-	$	(345,000)	$	21,120,000	$	360,000		
Bond discount		(278,680)			-			9,610			(269,070)			-		
Governmental activity long-																
																
term liabilities	$	21,186,320	$	-	$	(335,390)	$	20,850,930	$	360,000		

22

SHINGLE CREEK COMMUNITY DEVELOPMENT DISTRICT NOTES TO FINANCIAL STATEMENTS (CONTINUED) Year Ended September 30, 2017

Note 5 - Long-Term Liabilities (Continued):

At September 30, 2017, the scheduled debt service requirements on the bonds payable were as follows:

					Governmental Activities	
Year Ending							
September 30,			Principal			Interest	
2018	$	360,000	$	1,066,529	
2019			370,000			1,053,297	
2020			385,000			1,039,612	
2021			400,000			1,025,386	
2022			415,000			1,008,798	
2023	-	2027			2,355,000			4,740,203	
2028	-	2032			3,000,000			4,082,331	
2033	-	2037			3,845,000			3,209,672	
2038	-	2041			4,965,000			2,055,375	
2042	-	2046			5,025,000			560,385	
			$	21,120,000	$	19,841,588	

Note 6 - Related Party Transaction:

Assessments from Developer:

The Developer owns a portion of land within the District; therefore, assessment revenue in the general and debt service funds include the assessments levied on those lots owned by the Developer. In the current year, special assessment revenue and contributions from the Developer was approximately $1,599,000, 89% of total special assessment revenue.

Concentrations:

A significant portion of the District’s activity is dependent upon the continued involvement of the Developer, the loss of which could have a material adverse effect on the District’s operations.

Note 7 - Management Company:

The District has contracted with a management company to perform management consulting services, which include financial consulting and accounting 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.

23

SHINGLE CREEK COMMUNITY DEVELOPMENT DISTRICT NOTES TO FINANCIAL STATEMENTS (CONTINUED) Year Ended September 30, 2017

Note 8 - Risk Management:

The District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; and natural disasters. These risks are covered by commercial insurance from independent third parties. The District has not filed any claims under this commercial coverage during the last three years.

24

COMPLIANCE SECTION

MCDIRMIT Ill DAVIS

CERTIFIED PUBLIC ACCOUNTANTS AND ADVISORS

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

Shingle Creek Community Development District

We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities and each major fund of the Shingle Creek Community Development District (the “District”) as of and for the year ended September 30, 2017, and the related notes to the financial statements, which collectively comprise the District’s financial statements and have issued our report thereon dated April 30, 2018.

Internal Control Over Financial Reporting

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

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

Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be a material weakness or significant deficiency. Given these limitations, during our audit, we did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

MCDIRMIT DAVIS & COMPANY, LLC

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

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

25

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 determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

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

Orlando, Florida

April 30, 2018

26

MCDIRMIT Ill DA VIS

CERTIFIED PUBLIC ACCOUNTANTS AND ADVISORS

MANAGEMENT COMMENTS

Board of Supervisors

Shingle Creek Community Development District

Report on the Financial Statements

We have audited the financial statements of the Shingle Creek Community Development District, (the “District”) as of and for the fiscal year ended September 30, 2017, and have issued our report thereon dated April 30, 2018.

Auditor’s Responsibility

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

Reporting Requirements

We have issued our Independent Auditor’s Report on Internal Control over Financial Reporting and Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards and Independent Auditor’s Report on an examination conducted in accordance with AICPA Professional Standards, 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 April 30, 2018, should be considered in conjunction with this management letter.

Prior Audit Findings

Section 10.554(1)(i.)1., Rules of the Auditor General, require that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. There were no such findings in the preceding annual 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. This information has been disclosed in the notes to the financial statements.

MCDIRMIT DAVIS & COMPANY, LLC

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

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

27

Financial Condition and Management

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

Pursuant to Sections 10.554(1)(i)5.c. and 10.556(8), Rules of the Auditor General, we applied financial condition assessment procedures for 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.

Annual Financial Report

Section 10.554(1)(i)5.b. 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 the annual financial report for the District for the fiscal year ended September 30, 2017, 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, 2017. In connection with our audit, we determined that these two reports were in agreement.

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

Orlando, Florida

April 30, 2018

28

MCDIRMIT Ill DAVIS

CERTIFIED PUBLIC ACCOUNTANTS AND ADVISORS

INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE WITH

THE REQUIREMENTS OF SECTION 218.415, FLORIDA STATUTES

Board of Supervisors

Shingle Creek Community Development District

We have examined Shingle Creek Community Development District’s (the “District”) compliance with the requirements of Section 218.415, Florida Statutes, during the year ended September 30, 2017. Management is responsible for the District’s compliance with those requirements. Our responsibility is to express an opinion on the District’s compliance based on our examination.

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

In our opinion, the District complied, in all material respects, with the aforementioned requirements for the year ended September 30, 2017.

Orlando, Florida

April 30, 2018

MCDIRMIT DAVIS & COMPANY, LLC

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

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

29