Richmond County Board of Education, Augusta, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2004

RICHMOND COUNTY BOARD OF EDUCATION
AUGUSTA, GEORGIA REPORT ON AUDIT
OF THE FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2004
STATE OF GEORGIA
DEPARTMENT OF AUDITS AND ACCOUNTS
Russell W. Hinton State Auditor

RICHMOND COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

INDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

REQUIRED SUPPLEMENTARY INFORMATION

MANAGEMENT'S DISCUSSION AND ANALYSIS

EXHIBITS

BASIC FINANCIAL STATEMENTS

DISTRICT-WIDE FINANCIAL STATEMENTS

A

STATEMENT OF NET ASSETS

3

B

STATEMENT OF ACTIVITIES

4

FUND FINANCIAL STATEMENTS

C

BALANCE SHEET

GOVERNMENTAL FUNDS

6

D

RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET

TO THE STATEMENT OF NET ASSETS

7

E

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES

IN FUND BALANCES

GOVERNMENTAL FUNDS

8

F

RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT

OF REVENUES, EXPENDITURES AND CHANGES IN FUND

BALANCES TO THE STATEMENT OF ACTIVITIES

9

G

STATEMENT OF FIDUCIARY NET ASSETS

FIDUCIARY FUNDS

10

H

STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS

FIDUCIARY FUNDS

11

I

NOTES TO THE BASIC FINANCIAL STATEMENTS

13

SCHEDULES

REQUIRED SUPPLEMENTARY INFORMATION

1 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES

IN FUND BALANCES - BUDGET AND ACTUAL

GENERAL FUND

31

RICHMOND COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

SCHEDULES

SUPPLEMENTARY INFORMATION

2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

32

3 SCHEDULE OF STATE REVENUE

34

4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

36

5 ALLOTMENTS AND EXPENDITURES

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE)

BY PROGRAM

37

SECTION II
COMPLIANCE AND INTERNAL CONTROL REPORTS
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
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133

SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS

SECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

RICHMOND COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -
SECTIONV MANAGEMENT'S RESPONSES SCHEDULE OF MANAGEMENT'S RESPONSES

SECTION I FINANCIAL

Russell W. Hinton
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
February 24, 2005

Honorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Richmond County Board of Education
INDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Ladies and Gentlemen:
We have audited the accompanying financial statements ofthe governmental activities, each major fund, and the aggregate remaining fund information (Exhibits A through I) ofthe Richmond County Board of Education, as of and for the year ended June 30, 2004, which collectively comprise the Board's basic financial statements as listed in the table of contents. These financial statements are the responsibility ofthe Richmond County Board ofEducation's management. 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 ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our op1mons.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the Richmond County Board of Education, as of June 30, 2004, and the respective changes in financial position thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America.
2004ARL-11

In accordance with Government Auditing Standards, we have also issued our report dated February 24, 2005, on our consideration of the Richmond County Board of Education'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 ofour testing ofinternal control over financial reporting and compliance and the results ofthat testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part ofan audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.
Management's Discussion and Analysis and the Schedule ofRevenues, Expenditures and Changes in Fund Balances - Budget and Actual, as presented on pages i through viii and page 31 respectively, are not a required part ofthe basic financial statements but are supplementary information required by the accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods ofmeasurement and presentation ofthe required supplementary information. However, we did not audit the information and express no opinion on it.
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Richmond County Board of Education's basic financial statements. The accompanying supplementary information which consist of Schedules 2 through 5, which includes the Schedule of Expenditures of Federal Awards as required by U.S. Office of Management and Budget Circular A-133, Audits ofStates, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements, and in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole.
A copy ofthis report has been filed as a permanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated section 506-24.
Respectfully submitted,

RWH:gp 2004ARL-11

State Auditor

RICHMOND COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2004
The discussion and analysis of the Richmond County Board of Education's financial performance provides an overall review of the School District's financial activities for the fiscal year ended June 30, 2004. The intent of this discussion and analysis is to look at the School District's financial performance as a whole. Readers are encouraged to review the transmittal letter, the basic financial statements, and the accompanying notes to the basic financial statements to enhance their understanding of the School District's financial performance.
Financial Highlights
Key financial highlights for 2004 are as follows:
In total, net assets increased $26.6 million, which represents an increase of 9.27 percent over 2003.
General revenues accounted for $129.3 million. This represents 43.35 percent of all revenues. Program specific revenues, in the form of grants, contributions, and charges for services and sales, accounted for $168.9 million or 56.65 percent of total revenues. Total revenue increased .95 percent.
The School District had $271.5 million in expenses related to governmental activities. Program specific grants, contributions, and charges for services and sales offset $168.9 million of these expenses. General revenues, primarily property taxes and sales taxes of $129.3 million were adequate to provide for other expenses for these programs. Total expenses increased .06 percent.
Among major funds, the General Fund, had $258.9 million in revenues and $259.4 million in expenditures. The fund balance for the General Fund decreased to $23. 7 million.
The School District received revenues of $32,621,783 for the Special Purpose Local Option Sales Tax.
Using the Basic Financial Statements
This annual report consists of a series of financial statements, the District-wide, and fund statements.
The District-wide financial statements, the Statement of Net Assets, and the Statement of Activities are designed to illustrate the School District as an aggregate of its financial activities and present a longer term view of its finances.
The next level of detail is provided by the fund financial statements. These statements reflect the short-term finances as well as the balances available for future needs. For the Richmond County Board of Education, the General Fund, District-wide Capital Projects Funds and the Debt Service Funds are the most significant funds.
1

RICHMOND COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2004
Reporting the School District as a Whole (District-wide)
The Statement ofNet Assets and the Statement ofActivities
The analysis of the School District as a whole looks at all financial transactions and enables the reader of the financial statements to ascertain whether the School District's financial position has improved or diminished. The statements include all assets and liabilities using the accrual basis of accounting. This methodology is similar to the accounting of most private-sector businesses. This basis of accounting considers all the current year's revenues and expenses regardless of when cash is received or paid. There are many factors affecting the financial position of the School District. Some of these factors include the property tax laws, re-evaluation of property, state law requiring the reduction of class sizes, state and Federal mandates that are unfunded, and the age and condition of school facilities.
The Statement of Net Assets and the Statement of Activities is normally divided into two distinct types of activities, governmental and business type activities. All of the School District's activities are reflected as governmental activities. This includes instruction, pupil services, improvement of instruction, educational media services, general administration, school administration, business administration, maintenance and operation of plant, student transportation, central support services, other support services, food services, community services, and interest on short-term and long-term debt.
Reporting the School District's Most Significant Funds (Fund Financials)
The fund financial statements provide detailed information about the School District's major funds. The School District's major governmental funds are the General Fund, District-wide Capital Projects Funds, and the Debt Service Funds.
Governmental Funds: Most of the School District's activities are reported in governmental funds. These funds are reported using an accounting methodology called modified accrual accounting. This methodology measures cash and financial assets that can be readily converted to cash. The fund statements offer a short-term view of the School District's financial activities. A reconciliation of net changes in governmental fund balances to the governmental activities changes in net assets illustrate the relationships (or differences) between the governmental activities reported in the Statement of Net Assets and the Statement of Activities to the governmental funds presented in the fund financial statements.
The School District as a Trustee
The School District serves as a fiduciary for the Davidson Trust, Gail Hendrick Scholarship, Nora Coxwell Scholarship, Robetta McKenzie Scholarship, and Sara Craig Scholarship Funds. The Davidson Trust is used to account for the principal and earnings which may be expended to provide financial assistance to needy students of Davidson Fine Arts Magnet School. The principal and earnings of the scholarship funds may be expended to provide scholarships for selected students. The School District also holds assets in a custodial capacity for various governments, employees, and students.
11

RICHMOND COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2004

These activities are reported in a separate statement of Fiduciary Net Assets and Changes in Net Assets. The School District has excluded these activities from the School District's other financial statements because the School District may not use these assets to finance its operations.

The School District as a Whole

The Statement of Net Assets provides the prospective of the School District as a whole. Table 1 provides a comparative summary of the School District's net assets for fiscal year 2003 and fiscal year 2004.

Table 1 Net Assets (in Thousands)

Governmental Activities

Fiscal

Fiscal

Year 2004 Year 2003

Assets Current and Other Assets Capital Assets, Net

$ 177,723 282,996

$ 217,505 250,097

Total Assets

$ 460,719 $ 467,602

Liabilities Current and Other Liabilities Long-Term Liabilities

$ 37,031 109,466

$ 37,964 142,052

Total Liabilities

$ 146,497 $ 180,016

Net Assets Invested in Capital Assets, Net of Related Debt Restricted Unrestricted

$ 245,976 54,524 13,722

$ 214,624 60,934 12,028

Total Net Assets

$ 314,222 $ 287,586

Table 2 shows the comparative changes in net assets for fiscal year 2003 and fiscal year 2004.

111

RICHMOND COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2004

Table 2 Change in Net Assets
(in Thousands)
Revenues Program Revenues: Charges for Services Operating Grants and Contributions Capital Grants and Contributions
Total Program Revenues
General Revenues: Taxes Property Taxes Sales Taxes Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous
Total General Revenues
Total Revenues
Program Expenses Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Community Services Food Services Interest on Short-Term and Long-Term Debt
Total Expenses
Change in Net Assets

Governmental Activities

Fiscal

Fiscal

Year 2004

Year 2003

$ 5,096 163,359 434
$ 168,889

$ 3,212 171,179 3,026
$ 177417

$ 70,001 34,501
17,289 4,816 2,648
$ 129,255
$ 298,144

$ 63,970 33,005
12,570 4,941 3,433
$ 117,919
$ 295,336

$ 170,234
8,367 8,278 5,281 3,012 15,429
416 26,267
9,860 2,551
607
15,294 5 879
$ 271,475
$ 26,669

$ 169,088
9,105 7,894 5,396 2,834 16,138
442 25,068
9,214 2,412
198
4 15,266 8,242
$ 271,301
$ 24,035

IV

RICHMOND COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2004

Governmental Activities

The School District is dependent upon operating grants and property taxes to support governmental activities. Instruction comprises 62.71 percent, Support Service 29.49 percent, Food Service 5.63 percent and Interest 2.17 percent of government program expenses.

The Statement of Activities details the cost of program services and the charges for services and grants offsetting those services. Table 3 shows the total cost of services and the net cost of services for governmental activities. It identifies the cost of these services supported by tax revenue and unrestricted State entitlement. Cost of service comparisons are provided for fiscal year 2003 and fiscal year 2004.

Table 3 Governmental Activities
(in Thousands)

Total Cost of Services

Fiscal

Fiscal

Year 2004 Year2003

Net Cost of Services

Fiscal

Fiscal

Year2004 Year 2003

Instruction Support Services
Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations ofNon-Instructional Services Community Services Food Services Interest on Short-Term and Long-Term Debt

$ 170,234 $ 169,088 $ 54,413 $ 42,305

8,367 8,278 5,281 3,012 15,429
416 26,267
9,860 2,551
607

9,105 7,894 5,396 2,834 16,138
442 25,068
9,214 2,412
198

5,476 2,663 1,941 -425 7,330
416 15,978 6,248 2,186
216

5,825 2,919 2,286
109 8,596
437 14,247 6,602 2,279
107

15,294 5,879

4 15,266 8,242

265 5 879

-356 286 8,242

Total Expenses

$ 271,475 $ 271,301 $ 102,586 $ 93,884

V

RICHMOND COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2004
Governmental Activities Cost of Services for Fiscal Year 2004
Maintenance/O erations 9.68% School Administration Services 5.68%
Debt Service 2.17% Improvement of Instruction 3.05%
Educational Media 1.95% General Administrative Services 1.11 %
Support Services - Central 0.94% Support Services - Business. 0.15%
Other Support Services 0.22%
The School District's Funds The School District's funds are accounted for using the modified accrual basis of accounting. All governmental funds had revenues and other financing sources of $299.9 million and expenditures and other financing uses of $337.8 million. The general fund's fund balance reflected a decrease of $1.3 million, the debt service fund's fund balance decreased by $.2 million, and the District-wide capital projects funds increased by $36.4 million. The decrease in the fund balance for the general fund indicates the School District did not receive sufficient revenue to meet all current costs. General Fund Highlights The School District's budget is prepared according to Georgia law. The most significant budgeted fund is the General Fund. Throughout fiscal year 2004, the School District amended its general fund budget several times although no change was significant. Site-based budgeting is used by the School District and is designed to tightly control total site budgets but allow some management flexibility. The School District's top management monitors a detailed report
Vl

RICHMOND COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2004

comparing actual revenues and expenditures to budget on a monthly basis. Site management has access to this information on a demand basis through a report available using the School District's accounting software.

For the general fund, the final budgeted revenues and other financing sources of $275.5 million exceeded the original budgeted of $260.9 million by $14.6 million. An increase of $10.3 million in Federal revenues accounts for almost all of the increase in the budgeted revenues. The budgeted revenue exceeded the actual amount by $5.9 million.

The final budgeted expenditures and other financing uses of $275.5 million exceeds the original budget of $260.9 million by $14.6 million. The difference was due to an increase of instruction by $7.04 million, and support services by $7.05 million. The actual expenditures and other financing uses were $15 .3 million less than the budgeted amount.

General fund expenditures and other uses exceeded revenues and other financing sources by $1.3 million.

Capital Assets and Debt Administration

Capital Assets

At the end of fiscal year 2004, the School District had capital assets of $283.0 million, net of accumulated depreciation. Table 4 shows comparative statements for fiscal year 2003 and fiscal year 2004.

Table 4 Capital Assets at June 30 (Net of Depreciation, in Thousands)

Governmental Activities

Fiscal

Fiscal

Year 2004 Year 2003

Land Construction in Progress Buildings and Building Improvements Equipment Land Improvements

$ 12,670 49,134
210,418 9,620 1,153

$ 9,179 27,252
203,528 8,706 1,432

Total

$ 282~995 $ 250~097

The primary increases occurred in buildings and building improvements and construction work in progress. Due to funding from a Special Purpose Local Option Sales Tax and a bond issue, the School District is building and renovating numerous schools.

Vll

RICHMOND COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2004

Debt

At June 30, 2004, the School District had $101.9 million in general obligation bonds, with $21.9 million due within one year, and capital leases of $3.4 million, with $.9 million due within one year. Debt comparisons between fiscal year 2003 and fiscal year 2004 are shown below.

Table 5 Debt at June 30 (in Thousands)

Governmental Activities

Fiscal

Fiscal

Year 2004 Year 2003

General Obligation Bonds Capital Leases Compensated Balances Unamortized Bond Premium

$ 101,900 3,390 1,476 2,700

$ 122,655 14,249 1,369 3,779

Total

$ 109A66 $ 142~052

Current Issues

The Richmond County Board of Education has maintained its economic stability by budgeting conservatively and monitoring its expenditures. The State of Georgia continued its implementation of an austerity reduction for fiscal year 2004 and fiscal year 2005. Although no austerity reductions were included in the governor's proposed budget for fiscal year 2006, no existing austerity reductions were proposed to be restored to the QBE formula earnings. Sales tax collections and state revenues are beginning to rebound.

Contacting the School District's Financial Management

This financial report is designed to provide our citizens, taxpayers, investors, and creditors with a general overview of the School District's finances and to reflect the School District's accountability for the monies it receives. Questions about this report or for additional financial information, please contact Controller, Richmond County Board of Education, 864 Broad Street, Augusta, GA 30901.

Vlll

RICHMOND COUNTY BOARD OF EDUCATION

RICHMOND COUNTY BOARD OF EDUCATION STATEMENT OF NET ASSETS JUNE 30, 2004
ASSETS
Cash and Cash Equivalents Investments Accounts Receivable, Net
Taxes State Government Federal Government Other Inventories Capital Assets Land Construction in Progress Land Improvements Buildings Equipment Less: Accumulated Depreciation
Total Assets
LIABILITIES
Accounts Payable Salaries Payable Retainages Payable Deposits and Deferred Revenues Long-Term Liabilities
Due Within One Year Due in More Than One Year
Total Liabilities
NET ASSETS
Invested in Capital Assets, Net of Related Debt Restricted for
Arbitrage Rebate Tax Continuation of Federal Programs Debt Service Capital Projects Un restricted
Total Net Assets
Total Liabilities and Net Assets
The notes to the basic financial statements are an integral part of this statement.
-3-

EXHIBIT"A"

GOVERNMENTAL ACTIVITIES

$

30,730,941

108,261,471

10,901,805 16,891,804 6,894,052
1,880,197 2,162,798

12,669,855 49,133,661
6,045,851 291,630,361
31,426,906 -107,911, 199

$ ===46=0=7,=1=8,=50=3=

$

11,610,488

23,485,307

1,932,310

2,404

23,862,240 85,603,851

$

14614961600

$

245,976,349

51,239 5,639,834 24,513,987 24,318,735 13,7211759

$

3141221,903

$ ===46=0=7,=1=8,=50=3=

RICHMOND COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30 2004

EXPENSES

CHARGES FOR SERVICES

GOVERNMENTAL ACTIVITIES

Instruction Support Services
Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Food Services Interest on Short-Term and Long-Term Debt

$

170,233,563 $

8,366,660 8,277,850 5,281,369 3,011,989 15,429,072
416,503 26,266,750
9,860,058 2,551,427
606,747

15,294,043 5,878,718

2,405,735 400,824 65,092
2,224,526

Total Governmental Activities

$ ====27=1=,4=7=4,=74=9= $

General Revenues Taxes Property Taxes For Maintenance and Operations For Debt Services Sales Taxes Special Purpose Local Option Sales Tax For Debt Services For Capital Projects Intangible Recording Tax Real Estate Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous

5,096,177

Total General Revenues

Change in Net Assets

Net Assets - Beginning of Year (Restated - See Note 2)

Net Assets - End of Year

The notes to the basic financial statements are an integral part of this statement. -4 -

EXHIBIT"B"

PROGRAM REVENUES

OPERATING

CAPITAL

GRANTS AND

GRANTS AND

CONTRIBUTIONS CONTRIBUTIONS

NET (EXPENSES) REVENUES
AND CHANGES IN NET ASSETS

$

113,330,497 $

2,481,954 5,614,279 3,332,326 3,437,057 8,026,417

10,264,966 3,333,698 363,522 389,235

12,785,004

$

163,358,955 $

83,791 $
8,310
7,788 126
7,244 284
24,172 278,522
2,114 1,729
19,686
433,766 $

-54,413,540
-5,475,572 -2,663,571 -1,941,255
425,194 -7,330,319
-416,219 -15,977,612
-6,247,838 -2,185,791
-215,783
-264,827 -518781718
-102,585,851

$

68,259,171

1,741,372

23,820,088 8,801,695 1,753,984 125,037
17,289,330 4,816,383 216481173

$

12912551233

$

26,669,382

28715521521

$ ===3=1=4=,2=2=1'=9=03=

-5-

RICHMOND COUNTY BOARD OF EDUCATION BALANCE SHEET
GOVERNMENTAL FUNDS JUNE 30, 2004

EXHIBIT"C"

ASSETS
Cash and Cash Equivalents Investments Accounts Receivable, Net
Taxes State Government Federal Government Other Inventories
Total Assets
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts Payable Salaries Payable Retainages Payable Deposits and Deferred Revenue
Total Liabilities
FUND BALANCES
Reserved for: Arbitrage Rebate Tax Continuation of Federal Programs Debt Service Inventories Capital Projects
Unreserved Undesignated Reported in: General Fund
Total Fund Balances
Total Liabilities and Fund Balances

GENERAL FUND

DISTRICTWIDE
CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTAL

$ 25,434,480 $ 2,852,712 $ 2,443,749 $ 30,730,941

645,133

107,616,333

5

108,261,471

2,114,712 16,891,804
6,894,052 637,289
2,162?98

5,536,608 1,242,908

60,033

7,711,353 16,891,804
6,894,052 1,880,197 21162?98

$ 541780,268 $ 117,248,561 $ 21503,787 $ 1A532,616

$ 7,608,564 $
23,485,307
2404
$ 31,096,275 $

4,001,924 1,932,310
5,934,234

$ 11,610,488
23,485,307 1,932,310 2,404
$ 37,030,509

$

51,239

$

51,239

$ 5,161,261

5,161,261

21,762,187 $ 2,503,787

24,265,974

2,162,798

2,162,798

89,500,901

89,500,901

16,359,934

16,3591934

$ 23,683,993 $ 111,314,327 $ 2,503,787 $ 137,502,107

$ 54,7801268 $ 117,248,561 $ 2,503?87 $ 174,532,616

The notes to the basic financial statements are an integral part of this statement. -6 -

RICHMOND COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE STATEMENT OF NET ASSETS JUNE 30 2004

EXHIBIT "D"

Total Fund Balances - Governmental Funds (Exhibit "C")
Amounts reported for Governmental Activities in the Statement of Net Assets are different because:
Capital Assets used in Governmental Activities are not financial resources and therefore are not reported in the funds. These assets consist of:
Land Construction in Progress Land Improvements Buildings Equipment Accumulated Depreciation
Total Capital Assets
Some of the School District's property tax revenues will be collected after year end but are not available soon enough to pay for the current period's expenditures.
Long-Term Liabilities, including Bonds Payable, are not due and payable in the current period and therefore are not reported as liabilities in the funds. Long-Term Liabilities at year-end consist of:
Bonds Payable Capital Leases Compensated Absences Unamortized Bond Premiums
Total Long-Term Liabilities

$ 137,502,107

$ 12,669,855 49,133,661 6,045,851
291,630,361 31,426,906
-107,911,199

282,995,435

3,190,452

$ -101,900,000 -3,390,534 -1,475,922 -2,699,635

-109,466,091

Net Assets of Governmental Activities (Exhibit "A")

The notes to the basic financial statements are an integral part of this statement. -7 -

RICHMOND COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS YEAR ENDED JUNE 30 2004

EXHIBIT"E"

REVENUES
Property Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation
Capital Outlay Debt Services
Principal Interest
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
Insurance Proceeds Residual Funds from Lease Transfers In Transfers Out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances - Beginning (Restated - See Note 2)

GENERAL FUND

DISTRICTWIDE
CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTAL

$ 67,836,998 1,823,845 $
144,737,031 37,511,134 5,096,177 404,915 1,480,592

$ 8,801,695
155,244
4,387,702

1,825,071 $ 23,875,264
23,766

69,662,069 34,500,804 144,892,275 37,511,134
5,096,177 4,816,383 1,480,592

$ 258,890,692 $ 13,344,641 $ 25,724,101 $ 297,959,434

$ 166,378,797 $

385,093

$ 166,763,890

7,994,146 8,060,602 4,932,033 2,979,043 15,107,137 1,494,087 24,009,088 9,664,193 2,444,569
530,946 14,709,249

223,222 22,294 60,488 27,750 4,330 $
1,459,457 1,017,161
121,940
37,883,813

7,213

7,994,146 8,283,824 4,954,327 3,039,531 15,134,887 1,505,630 25,468,545 10,681,354 2,566,509
530,946 14,709,249 37,883,813

883,728 218,149

9,975,000 525,386

20,755,000 5,135,183

31,613,728 5,878,718

$ 259,405,767 $ 51,705,934 $ 25,897,396 $ 337,009,097

$

-515,075 $ -38,361,293 $ -173,295 $ -39,049,663

$

$

-778,734

308,731 858,850 778,734

$

308,731

858,850

778,734

-778,734

$

-778,734 $ 1,946,315

$ 1,167,581

$ -1,293,809 $ -36,414,978 $ -173,295 $ -37,882,082

24,977,802

147,729,305

2,677,082

175,384,189

Fund Balances - Ending

$ 23,683,993 $ 111,314,327 $ 2,503,787 $ 137,502,107

The notes to the basic financial statements are an integral part of this statement -8-

RICHMOND COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF
REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2004

EXHIBIT "F"

Total Net Change in Fund Balances - Governmental Funds (Exhibit "E")
Amounts reported for Governmental Activities in the Statement of Activities are different because:
Capital Outlays are reported as expenditures in Governmental Funds. However, in the Statement of Activities, the cost of Capital Assets is allocated over their estimated useful lives as depreciation expense. In the current period, these amounts are:
Capital Outlay Depreciation Expense
Excess of Capital Outlay over Depreciation Expense
Because some property taxes will not be collected for several months after the School District's fiscal year ends, they are not considered "available" revenues.
Repayment of Long-Term Debt is reported as an expenditure in Governmental Funds, but the repayment reduces Long-Term Liabilities in the Statement of Net Assets. In the current year, these amounts consist of:
Bond Principal Retirements Capital Lease Payments
Total Long-Term Debt Repayments
Some items 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. These activities consist of:
Increase in Compensated Absences Amortization of Bond Premiums
Total Additional Expenditures

$ -37,882,082

$ 40,509,793 -7,561,620

32,948,173

-982,884

$ 20,755,000 10,858,728

31,613,728

$

-107,407

1,079,854

972,447

Change in Net Assets of Governmental Activities (Exhibit "B")

$ 26,669,382

The notes to the basic financial statements are an integral part of this statement. -9-

RICHMOND COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUNDS JUNE 30, 2004

EXHIBIT"G"

ASSETS Cash and Cash Equivalents
LIABILITIES Accounts Payable Funds Held for Others
Total Liabilities NET ASSETS Held in Trust for Private Purposes
Total Liabilities and Net Assets

PRIVATE PURPOSE TRUSTS

AGENCY FUNDS

$

29,615 $ ====4=8=1=,7=2=1=

$

8,497

473,224

$

481,721

$ _ _ _29___.,_61_5_

$

29,615 $ ==4=8=1,=72=1=

The notes to the basic financial statements are an integral part of this statement. - 10 -

RICHMOND COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
FIDUCIARY FUNDS YEAR ENDED JUNE 30, 2004

EXHIBIT"H"

ADDITIONS Investment Earnings Interest
DEDUCTIONS None Noted Change in Net Assets
Net Assets - Beginning
Net Assets - Ending

PRIVATE PURPOSE TRUSTS

$

313

$

0

$

313

29,302

$ ===29='=61=5=

The notes to the basic financial statements are an integral part of this statement. - 11 -

RICHMOND COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2004

EXHIBIT "I"

Note 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY
REPORTING ENTITY
The Richmond County Board of Education (School District) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity.
Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF PRESENTATION
The School District's basic financial statements are collectively comprised of the District-wide financial statements, fund financial statements and notes to the basic financial statements of the Richmond County Board of Education.
District-wide Statements: The Statement ofNet Assets and the Statement ofActivities display information about the financial activities ofthe overall School District, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions.
The Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities.
Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support ofthe School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs.
Program revenues include (a) charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues.
Fund Financial Statements: The fund financial statements provide information about the School District's funds, including fiduciary funds. Eliminations have been made to minimize the double counting ofinternal activities. Separate statements for each category (governmental and fiduciary) are presented. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column.

- 13 -

RICHMOND COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2004

EXHIBIT "I"

Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The School District reports the following major governmental funds:
General Fund is the School District's primary operating fund. It accounts for all financial resources ofthe School District, except those resources required to be accounted for in another fund.
District-wide Capital Projects Fund accounts for financial resources including Bond Proceeds, Special Purpose Local Option Sales Tax and grants from Georgia State Financing and Investment Commission to be used for the acquisition, construction or renovation of major capital facilities.
Debt Service Fund accounts for taxes (property and sales) legally restricted for the payment of general long-term principal, interest and paying agent's fees.
The School District reports the following fiduciary fund types:
The Private Purpose Trust fund reports a trust arrangement under which principal and income may be expended to provide scholarships for selected students.
Agency funds account for assets held by the School District as an agent for various funds, governments or individuals.
BASIS OF ACCOUNTING
The basis ofaccounting determines when transactions are reported on the financial statements. The District-wide governmental and fiduciary fund 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 at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes, grants and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied.
The School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts.
Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis ofaccounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be
- 14 -

RICHMOND COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2004

EXHIBIT "I"

Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
available if they are collected within sixty days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, claims and judgments, and compensated absences, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities and acquisitions under capital leases are reported as other financing sources.
The School District funds certain programs by a combination of specific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted net assets available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues.
RESTATEMENT OF PRIOR YEAR FUND BALANCE - GENERAL FUND
Governmental fund activity from certain school activity accounts, which were reported in the prior year's financial statements as Agency Funds, have been reported within the General Fund for fiscal year ended June 30, 2004. The governmental fund activity of these school activity accounts had a fund balance of $16,463 at July 1, 2003.
RESTATEMENT OF PRIOR YEAR NET ASSETS
Net Assets - Beginning have been decreased in the amount of $50,045 for a prior year adjustment to Capital Assets for the deletion of a parking deck.
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Georgia Laws OCGA 45-8-14 authorize the School District to deposit its funds in one or more solvent banks or insured Federal savings and loan associations.
INVESTMENTS
COMPOSITION OF INVESTMENTS Investments made by the School District in nonparticipating interest-earning contracts (such as certificates ofdeposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year and equity investments are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the School District to invest its
- 15 -

RICHMOND COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2004

EXHIBIT "I"

Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
funds. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following:
(1) Obligations issued by the State of Georgia or by other states,
(2) Obligations issued by the United States government,
(3) Obligations fully insured or guaranteed by the United States government or a United States government agency,
(4) Obligations of any corporation of the United States government,
(5) Prime banker's acceptances,
(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services,
(7) Repurchase agreements, and
(8) Obligations of other political subdivisions of the State of Georgia.
RECEIVABLES
Receivables consist of amounts due from property and sales taxes, grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.
PROPERTY TAXES
The Augusta-Richmond County Board of Commissioners fixed the property tax levy for the 2003 tax digest year (calendar year) on September 19, 2003 (levy date). Taxes were due on November 26, 2003 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2003 tax digest are reported as revenue in the governmental funds for fiscal year 2004. The Augusta-Richmond County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% oftaxes collected as a fee for tax collection and remits the balance oftaxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2004, for maintenance and operations amounted to $67,836,998 and for school bonds amounted to $1,825,071.

- 16 -

RICHMOND COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2004

EXHIBIT "I"

Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Tax millage rates levied for the 2003 tax year (calendar year) for the Richmond County Board of Education were as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations School Bonds

20.196 mills .570 mills

20.766 mills

SALES TAXES

Special Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $32,621,783 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years.

INVENTORIES

CONSUMABLE SUPPLIES On the basic financial statements, inventories of athletic, custodial, instructional, maintenance and transportation supplies are reported at cost (weighted average) and textbooks are reported at cost (first-in, first-out). The School District uses the consumption method to account for inventories whereby consumable supplies are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used.

FOOD INVENTORIES On the basic financial statements, inventories ofdonated food commodities used in the preparation ofmeals are reported at their Federally assigned value and purchased foods inventories are reported at cost (first-in, first-out). The School District uses the consumption method to account for inventories whereby donated food commodities are recorded as an asset and as revenue when received, and expenses/expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used.

CAPITAL ASSETS

Capital assets purchased, including capital outlay costs, are recorded as expenditures in the fund financial statements at the time of purchase (including ancillary charges). On the District-wide financial statements, all purchased capital assets are valued at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at estimated fair market value on the date donated. Disposals are deleted at depreciated recorded cost. The cost of normal maintenance and repairs that do not add to the value ofassets or materially extend the useful lives of

- 17 -

RICHMOND COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2004

EXHIBIT "I"

Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

the assets is not capitalized. Depreciation is computed using the straight-line method. The School District does not capitalize book collections or works of art.

Capitalization thresholds and estimated useful lives of capital assets reported in the District-wide statements are as follows:

Capitalization Policy

Estimated Useful Life

Land Land Improvements Buildings and Improvements Equipment

All

NIA

$

5,000

20 years

$

5,000 25 to 50 years

$

5,000 5 to 20 years

Depreciation is used to allocate the actual or estimated historical cost of all capital assets over estimated useful lives.

GENERAL OBLIGATION BONDS

The School District issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. Bond issuance costs are recognized in the financial statements during the fiscal year bonds are issued. In addition, general obligation bonds have been issued to refund existing general obligation bonds. General obligation bonds are direct obligations and pledge the full faith and credit of the government. The outstanding amount of these bonds is recorded in the Statement of Net Assets.

Note 3: DEPOSITS AND INVESTMENTS

COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum ofmoney which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. If a depository elects the pooled method (OCGA 45-8-13 .1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts.

Acceptable security for deposits consists of any one of or any combination of the following:

- 18 -

RICHMOND COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2004

EXHIBIT "I"

Note 3: DEPOSITS AND INVESTMENTS
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia,
(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia,
(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.
CATEGORIZATION OF DEPOSITS At June 30, 2004, the bank balances were $40,932,965. The amounts ofthe total bank balances are classified into three categories of credit risk:
Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the School District or by the School District's agent in the School District's name.
Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name.
Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the School District's name.)
The School District's deposits are classified by risk category at June 30, 2004, as follows:

- 19 -

RICHMOND COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2004

EXHIBIT "I"

Note 3: DEPOSITS AND INVESTMENTS

Risk Category

Bank Balance

1

$ 540,895

2

40,065,571

3

326,499

Total

$ 40,932.965

CATEGORIZATION OF INVESTMENTS Investments are classified as to risk by the three categories described below:

Category 1 - Insured or registered, or securities held by the School District or the School District's agent in the School District's name.
Category 2 - Uninsured or unregistered, with securities held by the counterparty's trust department or agent in the School District's name.
Category 3 - Uninsured or unregistered, with securities held by the counterparty, or by its trust department or agent but not in the School District's name.

Funds invested in an investment pool managed by another government are not required to be categorized unless the investing entity owns specific, identifiable investment securities in the pool.

At June 30, 2004, the carrying value of the School District's total investments was $108,247,807 which is materially the same as fair value. The investments are classified as to risk categories as follows:

Txne of Investment

U. S. Government

Common Stock

$

Total

$

Local Government Investment Pools

Total Investments

Risk Categories 2
$ 105,214,053 $ 582,238
582 238 $ 1Q5 214 053 $

Carrying

Fair

3

Amount

Value

0 $ 105,214,053 $ 105,214,053

582,238

582,238

0 $ 105,796,291 $ 105,796,291

2,451,516

2,451,516

$ 108 247 807 $ 108 247 807

The carrying amounts shown above includes amounts maintained in an investment pool by the State ofGeorgia, Office ofTreasury and Fiscal Services in which the School District owns no identifiable securities. The investment policy ofthe State of Georgia, Office ofTreasury and Fiscal Services for the Local Government Investment Pool (Primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. A description ofthe Primary Liquidity Portfolio is as follows:

- 20 -

RICHMOND COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2004

EXHIBIT "I"

Note 3: DEPOSITS AND INVESTMENTS
The Primary Liquidity Portfolio consists of Georgia Fund 1, which is a combination local and state government investment pool, and Fund 6. Georgia Fund 1 is a stable net asset value investment pool which follows Standard and Poor's criteria for AAAm rated money market funds. The pool is not registered with the Securities and Exchange Commission (SEC) as an investment company but does operate Georgia Fund 1 in a manner consistent with Rule 2a-7 of the Investment Company Act of 1940. The pool's primary objectives are safety of capital, investment income, liquidity and diversification while maintaining principal ($1.00 per share value). Net asset value is calculated daily and reported to the rating agency weekly to ensure stability. The pool distributes earnings (net of management fees) on a monthly basis and values participant's shares sold and redeemed at the pool's share price, $1.00 per share. Pooled cash and cash equivalents and investments are reported at cost. The pool does not issue any legally binding guarantees to support the value of the shares. Participation in the pool is voluntary and deposits consist of funds from local governments; operating and trust funds ofGeorgia's state agencies, colleges and universities; and current operating funds of the State of Georgia's General Fund.
Investments in Georgia Fund 1 and Fund 6 are directed toward short-term instruments such as U.S. Treasury obligations, securities issued or guaranteed as to principal and interest by the U. S. Government or any of its agencies or instrumentalities, banker's acceptances and repurchase agreements. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2004, was 24 days. The average investment duration for Fund 6 on June 30, 2004, was 0.22 years.
Note 4: NON-MONETARY TRANSACTIONS
The School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 2 - Inventories
Note 5: CAPITAL ASSETS
The following is a summary of changes in the Capital Assets during the fiscal year:

- 21 -

RICHMOND COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2004

EXHIBIT "I"

Note 5: CAPITAL ASSETS

Balances July 1, 2003

Increases

Balances Decreases June 30, 2004

Governmental Activities Capital Assets, Not Being Depreciated:
Land Construction in Progress

$ 9,178,555 $ 3,491,300

$ 12,669,855

27,202,446 34,392,514 $ 12,461,299 49,133,661

Total Capital Assets Not Being Depreciated $ 36,381,001 $ 37,883,814 $ 12,461,299 $ 61,803,516

Capital Assets Being Depreciated Buildings and Improvements Equipment Land Improvements

$ 279,169,062 $ 12,461,299

29,562,839

2,625,979 $

6,045,851

$ 291,630,361 761,912 31,426,906
6,045,851

Less Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements

75,641,338 20,856,122
4,614,031

5,570,697 1,712,844
278,079

761,912

81,212,035 21,807,054
4,892,110

Total Capital Assets, Being Depreciated, Net $ 213,666,261 $ 7,525,658 $

0 $ 221,191,919

Governmental Activity Capital Assets - Net $ 250,047.262 $ 45 409 472 $ 12 461 299 $ 282 995 435

Capital assets being acquired under capital leases as of June 30, 2004, are as follows:

Governmental Funds

Equipment Less: Accumulated Depreciation

$ 1,829,375 1,068,024

Current year depreciation expense by function is as follows:

$==7====6:==zl.===35===1

- 22 -

RICHMOND COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2004

EXHIBIT "I"

Note 5: CAPITAL ASSETS

Instruction Support Services
Pupil Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services

$ 3,644,277

$ 361,441 338,722 5,463 315,072 12,355
1,051,298 809,640 91,944 75,219

3,061,154 856,189

$ 7,561.620

Note 6: RESTRICTED ASSETS

Special Purpose Local Option Sales Tax (SPLOST), general obligation bond proceeds and property tax levied specifically for retirement of outstanding bond principal, interest and paying agent's fees (Debt Service Funds) are reported as restricted assets in the Statement ofNet Assets because their use is limited by applicable bond covenants or statutory provisions. Restricted assets at June 30, 2004, were as follows:

District-wide Capital Projects

Bond

SPLOST

Proceeds

Debt Service Funds

Restricted Cash and Cash Equivalents: Debt Services Capital Acquisitions
Restricted Investments: Debt Services Capital Acquisitions

$ 2,443,749 $ 723,984 $ 2,716,481

$

5

$ 31,714,565 $ 75,901,768

Note 7: INTERFUND TRANSFERS

Interfund transfers for the year ended June 30, 2004, consisted of the following:

- 23 -

RICHMOND COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2004

EXHIBIT "I"

Note 7: INTERFUND TRANSFERS

Transfer to

Transfers From General Fund

District-wide Capital Projects

$========7====78:i!:.7===3===4

Transfers are used to move unrestricted revenues collected by the General Fund to the District-wide Capital Projects Fund as supplemental funding source for capital construction projects and equipment purchases.

Note 8: RISK MANAGEMENT

The School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; acts of God and unemployment compensation.

The School District has obtained commercial insurance for risk of loss associated with assets and acts of God. The School District has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the School District's insurance coverage in any ofthe past three years.

The School District participates in the Georgia School Boards Association Risk and Insurance Management System, a public entity risk pool organized on July 1, 1994, to develop and administer a plan to reduce risk ofloss on account ofmotor vehicle liability, including safety engineering and other loss prevention and control techniques, and to administer one or more groups ofself-insurance funds, including the processing and defense ofclaims brought against members ofthe system. The School District pays an annual premium to the system for its general insurance coverage. Additional coverage is provided through agreements by the system with other companies according to their specialty for property, boiler and machinery (including coverage for flood and earthquake). Payment of excess insurance for the system varies by line of coverage.

The School District has elected to self-insure for all losses related to torts. In addition, the School District has elected to self-insure for errors or omissions, which includes, among other risks, risks for sexual harassment and discrimination. The School District has not experienced any losses related to these risks in the past three years.

The School District has established a limited risk management program for workers' compensation claims. The School District accounts for claims within the General Fund with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated. An excess coverage insurance policy covers individual claims in excess of $325,000 loss per occurrence, up to the statutory limit.

- 24 -

RICHMOND COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2004

EXHIBIT "I"

Note 8: RISK MANAGEMENT

Changes in the workers' compensation claims liability during the last two fiscal years are as follows:

2003 2004

Beginning of Year Liability

Claims and Changes in Estimates

Claims Paid

End ofYear Liability

$

0 $

84,364 $

84,364 $

0

$

0 $

207,767 $

207,767 $

0

The School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the General Fund with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated.

Changes in the unemployment compensation claims liability during the last two fiscal years are as follows:

2003 2004

Beginning of Year Liability

Claims and Changes in Estimates

Claims Paid

End ofYear Liability

$

17 414 $

40,162 $

38,293 $

19,283

$

19,283 $

49 164 $

63,636 $

4 811

The School District has purchased surety bonds to provide additional insurance coverage as follows:

Position Covered

Amount

Superintendent President Vice-President Comptroller Deputy Superintendent Director of Accounting Accounting Supervisors Each Central Office Bookkeeper Each Principal Each School Bookkeeper Each High School Athletic Manager Each Lunchroom Manager Each Middle School Athletic Manager

$

50,000

$

50,000

$

50,000

$

50,000

$

50,000

$

20,000

$

20,000

$

10,000

$

5,000

$

5,000

$

5,000

$

3,000

$

1,000

- 25 -

RICHMOND COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2004

EXHIBIT "I"

Note 9: LONG-TERM DEBT

CAPITAL LEASES The Richmond County Board of Education has entered into various lease agreements as lessee for school buses, operating vehicles, office equipment, computer equipment, equipment upgrades at various schools, lighting systems and a career exploration lab. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value ofthe future minimum lease payments as of the date of their inception.

COMPENSATED ABSENCES Compensated absences represent obligations of the School District relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. Typically, the General Fund is the fund used to liquidate this long-term debt. The School District uses the vesting method to compute compensated absences.

GENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows:

Purpose

Interest Rates

Amount

General Government - Series 2002

2.50%- 5.0%

General Government - Refunding - Series 1993 2.50% - 4.70%

$ 96,000,000 5,900,000

$ 101,900.000

The changes in Long-Term Debt during the fiscal year ended June 30, 2004, were as follows:

Capital Leases

Governmental Funds

General

Compensated Obligation

Absences (1)

Bonds

Unamortized Bond
Premium

Total

Balance July 1, 2003

$ 14,249,262 $ 1,368,515 $ 122,655,000 $ 3,779,489 $ 142,052,266

Additions Annual Leave Earned

1,798,925

1,798,925

Deductions Annual Leave Utilized Debt Retired Bond Premiums Amortized

10,858,728

1,691,518

20,755,000

1,079,854

1,691,518 31,613,728
1,079,854

Balance June 30, 2004

$ 3 390,534 $ 1 475,922 $ 101900000 $ 2 699,635 $ 109,466 091

Portion of Long-Term Debt Due within One Year

$ 927 386 $

0 $ 21,855,000 $ 1,079 854 $ 23 862 240

(1) The portion of Compensated Absences due within one year has been determined to be immaterial to the basic financial statements.

- 26 -

RICHMOND COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2004

EXHIBIT "I"

Note 9: LONG-TERM DEBT

At June 30, 2004, payments due by fiscal year which includes principal and interest for these items are as follows:

Fiscal Year Ended June 30

Capital Leases

Principal

Interest

2005 2006 2007 2008

$ 927,386 $ 170,914

973,212

125,109

726,196

77,030

763,740

39,485

Total Principal and Interest

$ 3.390.534 $ 412.538

Fiscal Year Ended June 30

General Obligation

Debt

Principal

Interest

Unamortized Bond
Premium

2005 2006 2007 2008

$ 21,855,000 $ 4,304,280 $ 1,079,854

23,965,000

3,223,688

1,079,854

26,080,000

2,042,880

539,927

30,000,000

712,500

Total Principal and Interest $ 101,900.000 $ 10,283.348 $ 2,699.635

Note 10: ON-BEHALF PAYMENTS

The School District has recognized revenues and costs in the amount of $2,240,771 for health insurance and retirement contributions paid on the School District's behalf by the following State Agencies.

Georgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Non-Certified Personnel In the amount of $2,217,047

Office of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of $23,724

- 27 -

RICHMOND COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2004

EXHIBIT "I"

Note 11: SIGNIFICANT COMMITMENTS

The following is an analysis of significant outstanding construction or renovation contracts executed by the School District as of June 30, 2004, together with funding available:

Project

Unearned Executed Contracts

Funding Available From State

05-721-034 05-721-035 05-721-036 05-721-037 05-721-038 05-721-039 05-721-040 05-721-041 05-721-042 05-721-043 05-721-045 B-01-045-422 B-01-045-422 B-02-002-443 B-02-003-432 B-02-004-413 B-02-005-414 B-02-006-438 B-02-008-449 B-02-009-438 B-02-010-428 B-02-011-444 B-02-012-445 B-02-013-446 B-02-014-44 7 B-02-016-431 B-02-01 7-448 B-03-025-425 P-2003-022 SAO 1S-721-242

$

72,915 $ 363,397

1,955,653

438,892

460,238

215,111

5,438,800

66,477

31,301

24,643

153,306

43,769

716,810

47,802

240,910

316,193

102,691

821,603

443,476

637,365

177,324

372,797

260,543

25,170

244,461

225,412

178,984

853,674

671,118

228,282

1,326

178,439

629,737

851,440

735,711

312,206

24,101

559,365

139,355

3,610

152,751

3,426,570

$ 16,069.109 $ 6,774.619

The amounts described in this note are not reflected in the basic financial statements.

- 28 -

RICHMOND COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2004

EXHIBIT "I"

Note 12: SIGNIFICANT CONTINGENT LIABILITIES

ARBITRAGE REBATE TAX The Federal Tax Reform Act of 1986 requires issuers of tax-exempt debt to make payments to the United States Treasury oflnvestment Income received at yields that exceed the issuer's tax-exempt borrowing rates. The U. S. Treasury requires payment every five years. The estimated future liability of $51,239 at June 30, 2004, is based on tax exempt debt subject to the Tax Reform Act. The estimated liability will be updated annually for any tax-exempt issuances or changes in yields through January 29, 2007, at which time payment of the final calculated liability for the five-year period is required to be remitted.

Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any costs which are disallowed under grant terms. The School District believes that such disallowances, if any, will be immaterial to its overall financial position.

The School District is a defendant in various legal proceedings pertaining to matters incidental to the performance ofroutine School District operations. The ultimate disposition ofthese proceedings is not presently determinable, but is not believed to be material to the basic financial statements.

Note 13: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts.

TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School District who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 9.24% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year

Percentage Contributed

Required Contribution

2004 2003 2002

100% 100% 100%

$ 13,408,479 $ 13,323,997 $ 12,647,067

- 29 -

RICHMOND COUNTY BOARD OF EDUCATION GENERAL FUND
SCHEDULE OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL
YEAR ENDED JUNE 30, 2004

SCHEDULE "1"

REVENUES
Property Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Community Services Food Services Operation
Debt Service
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES}
Other Sources Other Uses
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances - Beginning
Adjustments
Fund Balances - Ending

NONAPPROPRIATED BUDGETS

ORIGINAL (1}

FINAL (1}

ACTUAL AMOUNTS

$

67,783,916 $

68,461,926 $

67,836,998

678,010

1,823,845

143,853,779

146,115,957

144,737,031

34,188,939

44,514,196

37,511,134

2,723,175

2,821,175

5,096,177

509,000

509,000

404,915

2,300,706

2,372,813

1,4801592

$

252,037,525 $

26417951067 $

25818901692

$

168,470,913 $

175,507,183 $

166,378,797

8,668,017 6,270,695 5,063,754 2,723,062 16,092,952 1,648,424 23,814,472 9,517,180 2,106,658
107,396 149,355 15,031,564 11098,350

8,840,778 10,326,346
4,986,667 3,153,033 16,180,719 1,626,669 24,427,458 9,815,544 2,494,986
636,500 330,163 15,422,303 1,101,930

7,994,146 8,060,602 4,932,033 2,979,043 15,107,137 1,494,087 24,009,088 9,664,193 2,444,569
530,946
14,709,249 1 101 877

$

260,762,792 $

274,850,279 $

259,405,767

$

-8,7251267 $

-10,055,212 $

-515,075

$

8,876,245 $

10,707,890

-150,978

-652,678 $

-778 734

$

8,725,267 $

10,0551212 $

-778,734

$

0 $

0 $

-1,293,809

33,957,985

33,957,985

24,977,802

-8,989,663

-8,989,663

$

24,968,322 $

24,968,322 $

23,683,993

Notes to the Schedule of Revenues Expenditures and Changes in Fund Balances Budget and Actual (1) Original and Final Budget amounts do not include budgeted revenues or expenditures of the various principal accounts.
The accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. See notes to the basic financial statements.
- 31 -

RICHMOND COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2004

SCHEDULE "2"

FUNDING AGENCY PROGRAM/GRANT
Agriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program Pass-Through From Bright from the Start: Georgia Department of Early Care and Learning Summer Food Service Program for Children
Total Child Nutrition Cluster
Other Programs Pass-Through From Georgia Department of Education Food Donation (1) Pass-Through From Bright from the Start: Georgia Department of Early Care and Learning Child and Adult Care Food Program
Total U. S. Department of Agriculture
Education, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Preschool Grants
Total Special Education Cluster
Other Programs Direct Impact Aid Fund for the Improvement of Education
Pass-Through From Georgia Department of Education Comprehensive School Reform Demonstration Education for Homeless Children and Youth English Language Acquisition Grants Enhancing Education Through Technology Program Improving Teacher Quality State Grants Reading Excellence - Local Reading Improvement Reading First State Grants Safe and Drug-Free Schools and Communities State Grants for Innovative Programs Title I Grants to Local Educational Agencies Twenty-First Century Community Learning Centers Vocational Education - Basic Grants to States
Total U.S. Department of Education

CFDA NUMBER

PASS-
THROUGH
ENTITY
ID
NUMBER

EXPENDITURES IN PERIOD

10.553 10.555
10.559

N/A N/A $
N/A
$

(2) 12,571,946
336z716 12,908,662

10.550 10.558

N/A N/A
$

801,052
(2} 13,709,714

84.027 84.173

N/A $ N/A
$

4,495,158 146 334
4,641,492

84.041 84.215
84.332 84.196 84.365 84.318 84.367 84.338 84.357 84.186 84.298 84.010 84.287 84.048

N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
$

(3) 153,209
276,888 29,886 23,795
386,143 2,380,478 1,166,685
525,844 392,220 394,602 12,406,004 900,580 441 374
24,119,200

- 32 -

RICHMOND COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2004

SCHEDULE "2"

FUNDING AGENCY PROGRAM/GRANT
Justice, U. S. Department of Direct Public Safety Partnership and Community Policing Grant
OTHER FEDERAL ASSISTANCE
Defense, U.S. Department of Direct Department of the Air Force R.O.T.C. Program Department of the Army R.O.T.C. Program Department of the Marines R.O.T.C. Program Department of the Navy R.O.T.C. Program
Total U. S. Department of Defense

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

EXPENDITURES IN PERIOD

16.710

$

89 419

$

72,851

193,680

57,343

172,885

$ _ _ _ _4_9_6~7,_5_9

Total Federal Financial Assistance N/A = Not Available

$ ===3=8=.4=1=5'=0=92=

Notes to the Schedule of Expenditures of Federal Awards

(1) The amounts shown for the Food Donation Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the School District during the current fiscal year.
(2) Expenditures for the funds earned on Child and Adult Care Food Program ($69,923) and the School Breakfast Program ($2,416,781) were not maintained separately and are included in the 2004 National School Lunch Program.
(3) Funds earned on the Impact Aid program, in the amount of $1,321,358, do not require reporting of expenditures.

Major Programs are identified by an asterisk (*) in front of the CFDA number.

The School District did not provide Federal Assistance to any Subrecipient.

The accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Richmond County Board of Education and is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements.

See notes to the basic financial statements.

- 33 -

RICHMOND COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30 2004

SCHEDULE "3"

AGENCY/FUNDING
GRANTS Bright from the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program
Education, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades - Early Intervention (4-5) Program Middle Grades (6-8) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category I Category II Category Ill Category IV Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) Media Center Program 20 Days Additional Instruction Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Categorical Grants Pupil Transportation Regular Bus Replacement Nursing Services Principal Supplements Mid-term Adjustment Hold-Harmless Education Equalization Funding Grant Food Services Vocational Education Austerity Reduction Other State Programs 4-8 Statewide After School Program Georgia Learning Resources System Health Insurance K-3 Statewide Reading Program Mentor Teachers National Teacher Certification Pay for Performance Preschool Handicapped Program School Improvement (Georgia's Choice) Severely Emotionally Disturbed Lottery Program Student Information System

GOVERNMENTAL FUND TYPES

CAPITAL

GENERAL

PROJECTS

FUND

FUND

TOTAL

$

4,117,957

$ 4,117,957

7,925,576 1,892,841 17,668,168 5,109,583 9,601,543 3,004,330 1,052,957 18,597,524 15,155,720 4,460,396
704,037 3,840,777 6,822,633 1,182,608
561,037 337,065 1,442,097 178,071 2,844,552 925,626 582,109
2,415,154 6,386,550 8,623,519
2,558,781 278,522 611,869 123,172 359,384
13,868,735 944,802 468,833
-6,862,781
283,870 96,894
2,217,047 509,916 36,318 93,270 44,888 516,989 592,500
2,063,469
363,522

7,925,576 1,892,841 17,668,168 5,109,583 9,601,543 3,004,330 1,052,957 18,597,524 15,155,720 4,460,396
704,037 3,840,777 6,822,633 1,182,608
561,037 337,065 1,442,097 178,071 2,844,552 925,626 582,109
2,415,154 6,386,550 8,623,519
2,558,781 278,522 611,869 123,172 359,384
13,868,735 944,802 468,833
-6,862,781
283,870 96,894
2,217,047 509,916 36,318 93,270 44,888 516,989 592,500
2,063,469
363,522

- 34-

RICHMOND COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30. 2004

SCHEDULE "3"

AGENCY/FUNDING
GRANTS Georgia State Financing and Investment Commission Reimbursement on Construction Projects
Human Resources, Georgia Department of Children's Trust Fund Commission Second Step Program
Office of Planning and Budget Georgia Council for the Arts Georgia Challenge Program
Office of Treasury and Fiscal Services Public School Employees Retirement
CONTRACT Education, Georgia Department of Foreign Language Model Program

GOVERNMENTAL FUND TYPES

CAPITAL

GENERAL

PROJECTS

FUND

FUND

TOTAL

$

155,244 $

155,244

$

3,025

3,025

23,399 23,724

23,399 23,724

84,453

84,453

$ 144,737,031 $

155,244 $ 144,892,275

See notes to the basic financial statements.

- 35 -

RICHMOND COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS
YEAR ENDED JUNE 30 2004

SCHEDULE "4"

PROJECT
The general obligation debt of the School District will be retired from the proceeds of the special use tax. This will include a large portion of the bond issue of $115,000,000 entitled "Richmond County General Obligation School Bond Series 1996" and certain other previously outstanding general obligation bonds at an estimated cost of $124,750,000. The principal and interest on these bonds come due on May 1st and November 1st of each year. May 1, 1998, will be the first time the principal will come due to be retired, in part, by the sales tax.
The School District will construct, as provided in the election, a middle school and/or an elementary school, which expenditures shall include acquiring, constructing and equipping these school buildings. In addition, to the construction of the middle and/or elementary school, the special sales tax shall be utilized to renovate, repair, improve and equip existing school buildings and other buildings and facilities.
Acquiring, constructing, installing and equipping new school buildings and facilities and other buildings and facilities useful or desirable in connection therewith, acquiring, constructing, installing and equipping additions to existing schools, including without limitation new classroom space, adding to, renovating, removing, repairing, improving and equipping existing school buildings and other buildings and facilities useful or desirable in connection therewith, acquiring, constructing, installing and equipping stadiums and related athletic facilities for physical and general educational purposes, acquiring transportation vehicles and equipment and buildings and facilities for the repair and maintenance thereof, acquiring, constructing and equipping safety structures and facilities useful or desirable in connection with any of the foregoing and acquiring the necessary property and rights in property therefor, both real and personal.

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED COSTS (2)

AMOUNT EXPENDED IN CURRENT YEAR (3)

AMOUNT EXPENDED
IN PRIOR YEARS (3)

PROJECT STATUS

$ 124,755,000 $ 124,755,000 $ 2,069,933 $ 120,109,531 Ongoing

25,245,000 110,988,201

10,494,413

40,431,698 Ongoing

200,000,000 160,000,000

45,838,935

23,064.480 Ongoing

$ 350,000,000 $ 395,743,201 $ 58,403,281 $ 183,605,709

(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax.

(2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion.

(3) The voters of Richmond County approved the imposition of a 1% sales tax to fund the above projects and retire associated debt. Amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects.

See notes to the basic financial statements.

- 36 -

RICHMOND COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM (QBE}
ALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30, 2004

SCHEDULE "5"

DESCRIPTION
Direct Instructional Programs Kindergarten Program Kindergarten Program-Early Intervention Program Primary Grades (1-3) Program Primary Grades-Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades-Early Intervention (4-5) Program Middle Grades (6-8) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category I Category II Category Ill Category IV Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL)
TOTAL DIRECT INSTRUCTIONAL PROGRAMS
Media Center Program Staff and Professional Development

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) (2)

ELIGIBLE QBE PROGRAM COSTS

SALARIES OPERATIONS

TOTAL

$

9,137,583 $ 7,853,133 $

129,920 $

7,983,053

2,204,084

2,480,037

9,014

2,489,051

20,739,419

21,786,685

510,016

22,296,701

5,961,814

5,686,205

18,139

5,704,344

11,283,667

11,761,265

441,606

12,202,871

3,548,969 1,241,851 21,746,300 17,727,669 5,178,196 14,728,262
639,401 420,693 1,686,164 201,796

3,059,105 1,813,377 21,735,682 23,218,866 4,439,344
1,263,376 5,718,480 6,052,675
955,449 555,066 1,491,231 2,033,822 491 151

13,425 91,045 861,799 683,247 415,636
25,878 38,797 77,338 11,927 17,277
3,512 20,310 10,854

3,072,530 1,904,422 22,597,481 23,902,113 4,854,980
1,289,254 5,757,277 6,130,013
967,376 572,343 1,494,743 2,054,132 502,005

$

116,445,868 $ 122,394,949 $

3,379,740 $ 125,774,689

3,317,260 676,432

4,479,016 267,873

373,068 408,771

4,852,084 676,644

TOTAL QBE FORMULA FUNDS

$

120,439,560 $ 127,141,838 $

4,161,579 $ 131,303,417

(1) Comprised of State Funds plus Local Five Mill Share. (2) Allotments do not include the impact of the State budget austerity reduction.

See notes to the basic financial statements.

- 37 -

SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS

Russell W. Hinton
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
February 24, 2005

Honorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Richmond County Board of Education
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
Ladies and Gentlemen:
We have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of Richmond County Board of Education as of and for the year ended June 30, 2004, which collectively comprise Richmond County Board ofEducation's basic financial statements and have issued our report thereon dated February 24, 2005. We conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered Richmond County Board of Education's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide an opinion on the internal control over financial reporting. However, we noted certain matters involving the internal control over financial reporting and its operation that we consider to be reportable conditions. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over financial reporting that, in ourjudgment, could adversely affect Richmond County Board of Education's ability to record, process, summarize and report financial data consistent with assertions ofmanagement in the financial statements. Reportable conditions are described in the accompanying Schedule ofFindings and Questioned Costs as items FS-7211-04-01 and FS-7211-04-02.
2004YB-30

A material weakness is a reportable condition in which the design or operation ofone or more ofthe internal control components does not reduce to a relatively low level the risk that misstatements caused by error or fraud in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, we believe none of the reportable conditions described above is a material weakness.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether Richmond County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.
This report is intended solely for the information and use of the management and members of the Richmond County Board of Education and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,
~lA\:c4_;;_
Russell W. Hinton State Auditor
RWH:gp 2004YB-30

Russell W. Hinton
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
February 24, 2005

Honorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Richmond County Board of Education
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULARA-133
Ladies and Gentlemen:
Compliance
We have audited the compliance of Richmond County Board of Education with the types of compliance requirements described in the US. Office ofManagement and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2004. Richmond County Board ofEducation's major Federal programs are identified in the Summary of Auditor's Results Section of the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility ofRichmond County Board of Education's management. Our responsibility is to express an opinion on Richmond County Board of Education's compliance based on our audit.
We conducted our audit ofcompliance in accordance with auditing standards generally accepted in the United States ofAmerica; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States; and 0MB Circular A133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types ofcompliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the Richmond County Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on Richmond County Board ofEducation's compliance with those requirements.
2004SA-10

In our opinion, the Richmond County Board ofEducation complied, in all material respects, with the requirements referred to above that are applicable to each of its major Federal programs for the year ended June 30, 2004.
Internal Control Over Compliance
The management of Richmond County Board of Education is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to Federal programs. In planning and performing our audit, we considered Richmond County Board of Education's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with 0MB Circular A-133.
Our consideration ofthe internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a reportable condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level ofrisk that noncompliance with applicable requirements oflaws, regulations, contracts and grants caused by error or fraud that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses.
This report is intended solely for the information and use of the management, members of the Richmond County Board of Education, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,

RWH:gp 2004SA-10

State Auditor

SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS

RICHMOND COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2004

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-7211-02-01 FS-7211-02-02 FS-7211-03-01 FS-7211-03-02

Previously Reported Corrective Action Plan Implemented Further Action Not Warranted Previously Reported Corrective Action Plan Implemented Unresolved

CORRECTIVE ACTION/RESPONSES

GENERAL LEDGER Failure to Maintain Board Meeting Minutes Finding Control Number: FS-7211-03-02

For the audit for the period ended June 30, 2004, the issue was not resolved. However, for the period ending June 30, 2005 it will have been resolved. Starting with the January 2005 Board meeting a court reporter has been hired to take and transcribe Board meeting minutes. This will continue until an employee is hired and trained to take over those duties. The Superintendent has advertised the position and has a list of thirty-seven applicants. Screening will be held over the next few weeks and an employee will be hired from those interviewed.

SECTION IV FINDINGS AND QUESTIONED COSTS

RICHMOND COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2004

I SUMMARY OF AUDITOR'S RESULTS

1. Type of Report Issued on the Financial Statements The auditor's opinion on the Richmond County Board of Education's financial statements was unqualified.

2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Richmond County Board ofEducation disclosed financial statement reportable conditions related to the following control categories.

Expenditures/Liabilities/Disbursements General Ledger

Employee Compensation

None ofthe reportable conditions described above are considered to be material weaknesses.

3. Noncompliance Material to the Financial Statements The audit of the Richmond County Board of Education disclosed no instances of noncompliance that were deemed to be material to the financial statements.

4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Richmond County Board of Education did not disclose any reportable conditions in internal control over major programs.

5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Richmond County Board of Education's report on compliance with requirements applicable to major programs was unqualified.

6. Audit Findings Required to be Reported by Section .51 0(a) of 0MB Circular A-133 The Richmond County Board ofEducation's audit did not disclose audit findings required to be reported by section .510(a) of 0MB Circular A-133.

7. Major Programs Federal awards audited as major programs are as follows: 10.553 Food Services - School Breakfast Program 10.555 Food Services - National School Lunch Program 10.559 Summer Food Service Program for Children

8. Type "A" Program Dollar Threshold The dollar threshold for type "A" programs was $1,192,093.

9. Low Risk Auditee The Richmond County Board of Education qualified as a low risk auditee as defined by Section .530 of 0MB Circular A-133.

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RICHMOND COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2004
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
EMPLOYEE COMPENSATION EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Internal Control Procedures Reportable Condition Finding Control Number: FS-7211-04-01
During the fiscal year ended June 30, 2003, the School District entered into a contract with Live Oak Consulting, Inc. (LOC). The firm assists local school boards in reducing employer cost associated with health insurance plans administered by the Georgia Department ofCommunity Health (DCH). LOC is paid a fee equal to 50 percent ofthe first year employer cost savings identified by LOC. The School District, following the recommendations of LOC, moved 54 employees from the Health Insurance Plan for Public School Teachers (See OCGA Title 20, Chapter 2, Article 17, Part 6, Sub Part 1) to the Health Insurance Plan for Public School Employees (See OCGA Title 20, Chapter 2, Article 17, Part 6, Sub Part 2).
According to DCH, School District employees who are to be included as members of the Health Insurance Plan for Public School Teachers (PST) are either:
1. Employed in a professionally certificated position; employee holds a valid certification; employee is assigned to a position that requires a certification as a qualification; employee's compensation is determined, at least in part, based upon the certificate; and employee is a member of the Teachers Retirement System or other public school retirement system.
Or:
2. Employed in a professionally certificated capacity; employee holds a valid certification; employee is not assigned to a position that requires a certification as a qualification; employee's compensation is determined, at least in part, based upon the certificate; and employee is a member ofthe Teachers Retirement System or other public school retirement system.
With respect to membership in the Health Insurance Plan for Public School Employees (PSE) Georgia Laws OCGA 20-2-910 and 47-4-2 (20) provide that the definition of public school employee, for the purpose ofmembership in the Health Insurance Plan for Public School Employees, means classroom aides, paraprofessionals, noncertified administrative and clerical employees, school bus drivers, school lunchroom personnel, school maintenance personnel and school custodial personnel. Generally, in order to determine which School District employees are eligible for the PSE or for the PST insurance plans, a comparison should be made ofthe employee's position and DCH's criteria listed above. Ifthe employee meets either test, then the employee is eligible for the Health Insurance Plan for Public School Teachers. If the employee fails both of the above tests, the employee is eligible for the Health Insurance Plan for Public School Employees.
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RICHMOND COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2004
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
EMPLOYEE COMPENSATION EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Internal Control Procedures Reportable Condition Finding Control Number: FS-7211-04-01
From information provided by the School District, it is not clear that all ofthese 54 employees who were moved from the PST plan to the PSE plan are eligible for membership in the PSE plan under DCH's criteria.
As of June 30, 2004, the School District made payments totaling $183,688 to Live Oak Consulting, Inc. Subsequent to the fiscal year end, additional payments in the amount of $16,699 were made to the consultant.
The School District should establish policies and procedures to ensure that employer contributions for employee health insurance plans are paid in accordance with State Laws. In addition, the School District should contact the Georgia Department of Community Health to determine whether the employees who were moved from the PST plan were moved in error. Ifemployees were moved in error the affected employees should be returned to the PST plan and the School District should make payment to DCH for those employees. Ifall above referenced employees should have remained in the PST plan the amount due to DCH would be $245,528. Additionally, the School District should consult with its legal counsel regarding obtaining a refund for those employees who should not have been moved to the PSE plan. The amount of the refund from LOC could be as much as $200,387.
GENERAL LEDGER Failure to Maintain Board Meeting Minutes Reportable Condition Nonmaterial Noncompliance Repeated From Prior Year Finding Control Number: FS-7211-04-02
The School District failed to maintain a permanent record ofits Board meetings in accordance with Georgia Code 20-2-57, which states in part:
"It shall be the duty ofthe superintendent or the Board's nominee as secretary to be present at the meetings of the local board, to keep the minutes of its meetings and make a permanent record ofthem, and to do any other clerical work it may direct the superintendent to do. The superintendent or the Board's nominee shall record in a book, to be provided for the purpose, all official proceedings of the local board, which shall be a public record open to the inspection ofany person interested therein; and all such proceedings, when so recorded, shall be signed by the chairperson and countersigned by the secretary."
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RICHMOND COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2004
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS GENERAL LEDGER Failure to Maintain Board Meeting Minutes Reportable Condition Nonmaterial Noncompliance Repeated From Prior Year Finding Control Number: FS-7211-04-02 This condition occurred because management ignored the specific requirements imposed upon the School District by Georgia Code 20-2-57. As a result, we were unable to review an official record of the Board's meetings to determine if there were significant items that could affect the scope of our audit. Appropriate procedures should be implemented by the School District to ensure that Board minutes are properly maintained and signed by the chairperson and secretary as required. III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported.
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SECTIONV MANAGEMENT'S RESPONSES

RICHMOND COUNTY BOARD OF EDUCATION SCHEDULE OF MANAGEMENT'S RESPONSES
YEAR ENDED JUNE 30, 2004
Finding Control Number: FS-7211-04-01
The Richmond County Board of Education does not arbitrarily initiate policies and procedures that do not conform to state law. When the administration was approached by Live Oak Consulting, Inc., its representative indicated he had an attorney's opinion stating that the reclassification of certain employee positions was legal. In addition, the Richmond County Board of Education's attorney reviewed the contract entered into with Live Oak Consulting, Inc. As a result, the contract offered to the Richmond County Board of Education by Live Oak Consulting, Inc. was approved at a regular Board meeting. Subsequently, the Administration learned that the State Audit Department had asked for an Attorney General's opinion on the appropriateness ofchanging the classification ofemployees holding certain types ofjobs. The opinion the audit department received is dated October 14, 2004. The Attorney General's Opinion was shared with school business officials at the annual GASBO conference held in Augusta in November, 2004. After hearing that information, we changed the classification ofthe employees back to certified positions and the Board has been paying the higher amount of insurance premiums to the State Health Insurance Plan.
The administration is consulting with our attorney concerning this matter as to what to do about the fee paid to Live Oak Consulting, Inc. and the insurance premiums not paid to the state.
Finding Control Number: FS-7211-04-02
While the assertion that the problem of not having Board minutes for review is accurate, the statement that "management ignored the specific requirements imposed upon the School District by Georgia Code 20-2-57" is not accurate. Management had an employee whose job was to take, transcribe and put in a binder the minutes of official Board meetings. Special equipment and software was specifically purchased for that purpose. Because ofhealth and other reasons, the Board minutes were not properly kept. However, beginning with the January 2005 Board meeting, a professional court reported has been hired to take the minutes and transcribe them. In addition, it is the Superintendent's plan to hire an additional secretary to take over the duties of taking minutes, transcribing them and keeping them in a binder.
Contact Person: Annita Fagler, Director of Finance and Accounting Telephone: (706) 826-1000, Fax: (706) 481-1637 Email: Faglian@boe.richmond.kl2.ga.us