SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES

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					        SCHOOL DISTRICT FIVE
OF LEXINGTON AND RICHLAND COUNTIES
         IRMO, SOUTH CAROLINA




      COMPREHENSIVE ANNUAL
        FINANCIAL REPORT
       FISCAL YEAR ENDED JUNE 30, 2007
        SCHOOL DISTRICT FIVE
OF LEXINGTON AND RICHLAND COUNTIES
       IRMO, SOUTH CAROLINA

                  COMPREHENSIVE
              ANNUAL FINANCIAL REPORT
           FISCAL YEAR ENDED JUNE 30, 2007




                          Prepared By
                 Division of Financial Services
    School District Five of Lexington and Richland Counties


                      Dr. Scott AndersEn
                        Superintendent

                       J. Brock Heron
               Chief Financial Services Officer

                     Thomas J. Weeks, Jr.
                      Director of Finance

                     J. Al Edwards, CPA
                      Senior Accountant
SCHOOL DISTRICT OF LEXINGTON AND RICHLAND COUNTIES
TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2007

INTRODUCTORY SECTION

Letter of Transmittal from Administration                                          1-6

Administrative Table of Organization                                                7

Principal Officials                                                                 8

Certificate of Achievement for Excellence in Financial Reporting                    9

Certificate of Excellence in Financial Reporting                                    10

FINANCIAL SECTION

   Independent Auditor’s Report                                                     11

   Management’s Discussion and Analysis                                           12 - 21

Basic Financial Statements

GOVERNMENT-WIDE FINANCIAL STATEMENTS

   Statement of Net Assets                                                          22

   Statement of Activities                                                          23

FUND FINANCIAL STATEMENTS

   Balance Sheet – Governmental Funds                                               24

   Reconciliation of the Governmental Fund Balances to the
    Statement of Net Assets                                                         25

   Statement of Revenues, Expenditures and Changes In Fund
    Balances – Governmental Funds                                                   26

   Reconciliation of the Statement of Revenues, Expenditures
    and Changes In Fund Balances - Governmental Funds to
    the Statement of Activities                                                     27

   Statement of Revenues, Expenditures and Changes In Fund
    Balances – Budget and Actual – General Fund                                     28

   Statement of Net Assets – Proprietary Fund                                       29

   Statement of Revenues, Expenses, and Changes In Fund Net
    Assets – Proprietary Fund Types - Enterprise Fund                               30

   Statement of Cash Flows – Proprietary Fund Types - Enterprise Funds              31

   Combined Statement of Cash Flows – Proprietary Fund Types - Enterprise Funds     32

   Statement of Fiduciary Assets and Liabilities – Fiduciary Fund Type              33

Notes to the Basic Financial Statements                                           34 - 51




                                                           i
SCHOOL DISTRICT OF LEXINGTON AND RICHLAND COUNTIES
TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2007

Supplementary Information

  Schedule of Revenues, Expenditures and Changes In Fund
   Balance – Budgets and Actual – General Fund                              52 - 60

  Combining Schedule of Revenues, Expenditures and Changes In
   Fund Balance – Special Revenue Fund – Special Projects Fund              61 - 68

  Summary Schedules For Adult Education, Other Restricted State
   Grants, and Other Special Projects Programs – Special Revenue
   Fund                                                                       69

  Schedule of Revenues, Expenditures and Changes In Fund
   Balance – All Programs - Special Revenue Fund – Education
   Improvement Act                                                          70 - 73

  Summary Schedule By Program – Special Revenue Fund –
   Education Improvement Act                                                  74

  Schedule of Revenues, Expenditures and Changes In Fund
   Balance – Debt Service Fund                                                75

  Schedule of Revenues, Expenditures and Changes In Fund
   Balance – School Building Fund                                             76

  Schedule of Revenues, Expenses and Changes In Net
   Assets – Proprietary Fund – Food Service Fund and After School Program   77 - 78

  Schedule of Changes In Assets and Liabilities – Fiduciary Fund -
   Pupil Activity Funds                                                       79

  Combining Schedule of Receipts, Disbursements and Changes In
   Due to Pupil Activity – Fiduciary Fund – Pupil Activity Funds            80 - 81

  Schedule of Receipts, Disbursements and Changes In Due to
   Pupil Activity – Fiduciary Fund Type – Pupil Activity Funds –
   By School                                                                82 - 84

  INSITE Location Reconciliation Schedule                                     85

  Detailed Schedule of Due to State Department of Education/Federal
   Government                                                                 86

  Detailed Schedule of Deferred Revenue – Special Revenue Fund –
   Education Improvement Act                                                  87

STATISTICAL SECTION (UNAUDITED)

  Net Assets by Component                                                     88

  Expenses, Program Revenues, and Net (Expense) Revenue                       89

  General Revenues and Total Change in Net Assets                             90

  Fund Balances, Governmental Funds                                           91

  Governmental Funds Revenues                                                 92

                                                          ii
SCHOOL DISTRICT OF LEXINGTON AND RICHLAND COUNTIES
TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2007

STATISTICAL SECTION (UNAUDITED)

  Governmental Funds Expenditures by Function and Debt Service Ratios             93

  Governmental Funds Other Financing Sources and Uses and Net Change in Fund
   Balances                                                                       94

  Assessed Value and Estimated Value of Taxable Property                        95 - 96

  Direct and Overlapping Property Tax Rates                                     97 - 98

  Principal Property Tax Payers                                                99 - 100

  Property Tax Levies and Collections                                          101 - 102

  Outstanding Debt by Type                                                       103

  Direct and Overlapping Governmental Activities Debt                            104

  Legal Debt Margin Information                                                  105

  Demographic and Economic Statistics                                            106

  Principal Employers                                                          107 - 108

  Full-Time Equivalents Personnel Allocations by Type                            109

  Operating Statistics                                                           110

  Teacher Base Salaries                                                          111

  School Building Information                                                  112 - 114

SINGLE AUDIT COMPLIANCE SECTION

  Independent Auditor's Report on Compliance and on Internal Control
    over Financial Reporting Based on an Audit of Financial Statements
   Performed In Accordance With Government Auditing Standards                    115

  Independent Auditor’s Report on Compliance With Requirements
    Applicable to Each Major Program and Internal Control over
    Compliance In Accordance With OMB Circular A-133                           116 - 117

  Schedule of Expenditures of Federal Awards                                     118

  Schedule of Findings and Questioned Costs                                      119

  Schedule of Summary of Prior Year Audit Findings                               120

  Schedule of Corrective Action Plan                                             121




                                                        iii
INTRODUCTORY SECTION
FINANCIAL SECTION
INDEPENDENT AUDITOR'S REPORT

To the Honorable Chairman and Members of the Board of Trustees
School District Five of Lexington and Richland Counties
Irmo, South Carolina

We have audited the accompanying financial statements of the governmental activities, the business-type activities and each
major fund of the School District Five of Lexington and Richland Counties as of and for the year ended June 30, 2007,
which collectively comprise the District's basic financial statements as listed in the table of contents. These financial
statements are the responsibility of the District’s management.          Our responsibility is to express an opinion
on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the
standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of
the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether
the financial statements are free of material 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 statements presentation. We believe
that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective
financial position of the governmental activities, the business-type activities and each major fund of the District as of
June 30, 2007, and the respective changes in financial position and cash flows, where applicable, thereof and the respective
budgetary comparisons for the general fund for the year then ended in conformity with accounting principles generally
accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued a report dated January 26, 2008 on our
consideration of the District’s internal control over financial reporting and our tests of its compliance with certain provisions of
laws, regulations, contracts, grant agreements and other matters. The purpose of that report is to describe the scope of our
testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion
on the internal control over financial reporting or on compliance. That report is an integral part of our audits performed in
accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results
of our audit.

The Management’s Discussion and Analysis on pages 12 through 21 is not a required part of the basic financial statements
but is supplementary information required by the Governmental Accounting Standards Board. We have applied certain limited
procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation
of the supplementary information. However, we did not audit the information and express no opinion on it.

Our audit was performed for the purpose of forming an opinion on the financial statements that collectively comprise the
School District Five of Lexington and Richland Counties’ basic financial statements taken as a whole. The accompanying
supplementary information listed in the table of contents as supplementary information is presented for the purposes of
additional analysis and is not a required part of the basic financial statements of the School District Five of Lexington and
Richland Counties. The accompanying Schedule of Expenditures of Federal Awards is presented for purposes of additional
analysis as required by U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and
Non-Profit Organizations, and is 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.

The introductory section and statistical tables, as listed in the table of contents, are presented for purposes of additional
analysis and are not a required part of the basic financial statements. This information has not been subjected to the
auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on it.



January 26, 2008




                                                                                                                                       11
                School District Five of Lexington and Richland Counties
                         Management’s Discussion and Analysis
                        For the Fiscal Year Ended June 30, 2007


Our discussion and analysis of School District Five of Lexington and Richland Counties’
financial performance provides an overview of the School District’s financial activities of the
fiscal year ended June 30, 2007. Please read it in conjunction with the School District’s financial
statements (beginning on page 22) and accompanying notes to those statements in order to better
understand the School District’s financial performance as a whole.

FINANCIAL HIGHLIGHTS

Major financial highlights for 2007 include:

    In total, net assets are $168,253,273, an increase of $14,521,883 (9.6%) for the 2006 – 2007
    fiscal year. Net assets of governmental activities grew by $14,681,697 (9.4%), while net
    assets of business-type activities decreased by $159,814 (-10.2%). Total revenues and other
    financing sources were $169,968,576 while total expenses and other financing uses were
    $155,446,693.

    Governmental funds reported an increase of $25,203,187 in the total fund balance, which
    included a $6,527,876 increase to the general fund, $18,000,197 increase to the school
    building fund, and a $675,114 increase to the debt service fund. The fund balance increase in
    the general fund is due to additional revenue from South Carolina Electric & Gas Company’s
    backup dam completion and from careful administration of the fund’s expenditures. The
    increase for the school building fund is due to the funds received from two bond issues in the
    2006 – 2007 fiscal year. The construction and equipment projects associated with these
    issues are scheduled to be completed during the 2007 – 2008 fiscal year, thereby reducing
    this fund balance. The additional funds in debt service are a result of the aforementioned
    backup dam project.

    Total revenue for our principal operating fund, the general fund, was $125,936,349, with an
    additional $4,917,148, consisting of transfers from the special revenue and proprietary funds
    for indirect costs, teacher salary supplement increases, and sales of fixed assets. Total
    expenditures in the general fund were $120,772,683 including $74,580,657 for instruction,
    $45,948,273 for support services, $10,061 for capital outlay, and $233,692 for
    intergovernmental expenditures. In addition, the general fund transferred out $3,552,938 to
    other funds for debt service, school food service fringe benefits, and the local portion of
    special revenue funds.

    Budgeted general fund revenue and expenditures for the 2006 – 2007 fiscal year both
    increased by 7.4% to cover the cost of additional payroll and employee benefits. The
    increase also helped fund the estimated growth in the student population and strengthened our
    instructional program by funding our major initiatives in the program. The salaries for all
    staff members (teachers, administrators, and support staff) were increased by a 2.61% cost-
    of-living adjustment, as well as a step increase for those eligible employees. The District
    does not revise revenue budgets except for insurance reimbursements from property losses,
    miscellaneous donations, and transfers from fiduciary funds for the purchase of supplies and
    materials. The operating millage was 190.9 mills for the fiscal year, an increase of 17.3 mills.
    $3,000,000 or 8.8 mills of the operating funds were transferred to the debt service fund to
    offset a millage reduction in that fund.




                                                                                                       12
                School District Five of Lexington and Richland Counties
                         Management’s Discussion and Analysis
                        For the Fiscal Year Ended June 30, 2007


USING THIS ANNUAL REPORT

This annual report consists of a series of financial statements and the notes to those statements
that show information, first, for the School District as a whole. The subsequent statements show
more details of specific financial activities. The Statement of Net Assets and the Statement of
Activities (pages 22 and 23) provide financial information of both a cumulative and a longer-term
nature. Fund financial statements (beginning on page 24) show the next level of detail. For
governmental activities, these statements show how well the School District financed the fund in
the short-term and how much remains for future activities. The fund financial statements also
show the most important funds (e.g. the School District’s general fund, special revenue,
Education Improvement Act funds, and capital projects) and other non-major funds totaled in one
column. The proprietary fund statement shows the activity in the School District’s school food
service fund. The remaining statement presents financial information about activities for which
the School District acts as an agent for the benefit of the students and employees.

Reporting the School District as a Whole

Statement of Net Assets and the Statement of Activities

While the School District’s financial statements contain a large number of funds used to provide
programs and activities for our students, the Statement of Net Assets and the Statement of
Activities help provide the answer to the question, “How well did we do financially in the 2006 –
2007 school year?” These statements include all assets and liabilities using the accrual basis of
accounting, which is similar to the accounting used by most private-sector companies. This basis
of accounting takes into account all of the current year’s revenues and expenses regardless of
when the cash is paid or received.

These two statements report the School District’s net assets, the difference between assets and
liabilities, and the changes in them. Over time, increases or decreases in net assets, reported in
the Statement of Activities, are one indicator of whether the School District’s financial health is
improving or deteriorating. Causes of these changes can be non-financial as well as financial.
Some of the non-financial factors include the School District’s property tax base, variances of
estimates in State growth, facility conditions, required educational programs and the quality of
those programs, and other factors. These factors must be considered when assessing the overall
health of the School District.

The Statement of Net Assets and the Statement of Activities are divided into two distinct kinds of
activities:

    Governmental Activities – The majority of the School District’s activities, such as
    instruction, support services, operations, plant maintenance, pupil transportation,
    extracurricular activities, debt service, and construction projects, are reported here.

    Business-Type Activities – These goods or services are provided on a fee basis in order to
    recover the cost of the goods or services provided. The School District’s school food service
    program is reported as a business-type activity.




                                                                                                      13
                School District Five of Lexington and Richland Counties
                         Management’s Discussion and Analysis
                        For the Fiscal Year Ended June 30, 2007


Reporting the School District’s Most Significant Funds

Fund Financial Statements

The School District’s fund financial statements beginning on page 24 provide detailed
information about the most significant funds – not the School District as a whole. Some funds are
required to be established by State law and by bond covenants. However, the School District
establishes many other funds to help it manage and direct money for particular purposes (such as
school food service) or to show that it is meeting legal requirements for using grants, certain
taxes, and other money. The School District’s governmental funds use the following approaches:

    Governmental Funds – All of the School District’s services are reported in governmental
    funds. Governmental fund reporting focuses on how money flows into and out of those funds
    and the balances left at year-end that are available for spending. The funds are reported using
    an accounting method called modified accrual accounting, which measures cash and all other
    financial assets that can be readily converted into cash. The governmental fund statements
    provide a detailed short-term view of the School District’s operations and the services it
    provides. Governmental fund information helps you determine whether there are more or
    fewer financial resources that can be spent in the near future to finance the School District’s
    programs. The relationship (or differences) between governmental activities (reported in the
    Statement of Net Assets and the Statement of Activities) and governmental funds is
    reconciled in the financial statements (pages 25 and 27).
    Proprietary Funds – Proprietary funds use the same basis of accounting as business-type
    activities, therefore, these statements are essentially the same.

The School District as a Trustee

Reporting the School District’s Fiduciary Responsibilities

The School District is the trustee, or fiduciary, for its student activity funds. All of the School
District’s fiduciary activities are reported in a separate Statement of Fiduciary Net Assets. We
exclude these activities from the School District’s other financial statements because the District
cannot use these assets to finance its operations. The School District is responsible for ensuring
that the assets reported in these funds are used for their intended purposes.




                                                                                                      14
                           School District Five of Lexington and Richland Counties
                                    Management’s Discussion and Analysis
                                   For the Fiscal Year Ended June 30, 2007


       THE SCHOOL DISTRICT AS A WHOLE

       Recall that the Statement of Net Assets provides the perspective of the School District as a whole
       and can be an indicator of a government’s financial health if compared over a period of time. The
       following table provides a summary of the School District’s net assets for 2007 compared to
       2006.

                                                         Table 1
                                                        Net Assets

                                         Governmental
                                                                Business-Type Activities                Total
                                           Activities
                                     2007           2006           2007             2006         2007             2006
Current and Other Assets          $ 61,941,623   $ 36,091,443    $ 337,453       $ 246,858     $62,279,076      $36,338,301
Net Capital Assets                 158,910,113    153,254,595     1,327,852       1,549,904    160,237,965      154,804,499

Total Assets                       220,851,736    189,346,038        1,665,305    1,796,762    222,517,041      191,142,800

Current and Other Liabilities       36,070,965     23,113,120          86,967       79,364
                                                                                                36,157,932       23,192,484
Long-Term Liabilities               17,928,929     14,062,773         176,907      156,153      18,105,836       14,218,926

Total Liabilities                   53,999,894     37,175,893         263,874      235,517      54,263,768       37,411,410

Net Assets
Invested in Capital Assets, Net    127,615,113    137,979,595        1,327,852    1,549,904    128,942,965      139,529,499
Restricted                          18,525,701      2,513,011                0            0     18,525,701        2,513,011
Unrestricted                        20,711,028     11,677,539           73,579       11,341     20,784,607       11,688,880

Total Net Assets                  $166,851,842   $152,170,145    $1,401,431      $1,561,245   $168,253,273   $153,731,390

       Overall, the district’s net assets increased by $14,681,697 (9.4%).

       The District’s financial position is the product of several financial transactions including the net
       results of activities, the acquisition and payment of debt, the acquisition and disposal of capital
       assets, and the depreciation of capital assets. By far the largest portion of the District's net assets
       reflects its investment in capital assets (e.g., land and improvements, buildings and
       improvements, vehicles, furniture and equipment, and construction in progress), less any related
       debt used to acquire those assets that are still outstanding. The District uses these capital assets to
       provide services to its students; consequently, these assets are not available for future spending.
       Although the District's investment in its capital assets is reported net of related debt, it should be
       noted that the resources needed to repay this debt must be provided from other sources, since the
       capital assets themselves cannot be used to liquidate these liabilities.




                                                                                                                              15
                                    School District Five of Lexington and Richland Counties
                                             Management’s Discussion and Analysis
                                            For the Fiscal Year Ended June 30, 2007


                The following are significant current year transactions that have had an impact on the Statement
                of Net Assets.

                •       The $16,020,000 increase in outstanding general obligation debt.

                •       The addition of $11,651,052 in capital assets through construction of school
                        improvements, and purchases of furniture, equipment and vehicles less the addition of
                        depreciation for $6,217,586.

                The results of this year’s operations for the School Board as a whole are reported in the Statement
                of Activities. The following table takes information from that statement.

                                                              Table 2
                                                        Changes in Net Assets


                                          Governmental Activities      Business-Type Activities               Total

                                           2007            2006          2007          2006            2007             2006
Revenue
Program Revenue:
Charges for Services                      $1,362,051      $1,235,089   $4,922,080    $4,759,337      $6,284,131         $5,994,426
Operating Grants                          69,795,112      69,020,560    2,390,437     2,578,938      72,185,549         71,599,498
Capital Grants                                     0               0            0             0               0                  0
General Revenue:
Ad Valorem Taxes and Fees                 75,630,553      68,269,438           0              0      75,630,553         68,269,438
Unrestricted Grants                       13,730,219      13,227,983           0              0      13,730,219         13,227,983
Investment Earnings and Disposals          1,912,150       1,292,613      16,987        138,929       1,929,137          1,431,542
Other General Revenue                        208,987         472,062           0              0         208,987            472,062

Total Revenue                            162,639,072     153,517,745    7,329,504     7,477,206     169,968,576        160,994,949

Functions/Program Expense
Instruction Service                       89,513,413      84,035,162            0             0      89,513,413         84,035,162
Support Services                          55,254,878      53,068,424            0             0      55,254,878         53,068,424
Community Services                            78,231          81,070            0             0          78,231             81,070
Intergovernmental                            525,218       1,053,433            0             0         525,218          1,053,433
Interest on Long-Term Debt                 1,043,455         916,724            0             0       1,043,455            916,724
Depreciation – Unallocated                 1,587,476         422,789            0             0       1,587,476            422,789
School Food Service & After School                 0               0    7,444,022     7,034,915       7,444,022          7,034,915

Total Expenses                           148,002,671     139,577,602    7,444,022      7,034,915    155,446,693        146,612,517
Increase (Decrease) in Net Assets         14,636,401      13,940,143    (114,518)        442,289     14,521,883         14,382,432
Before Transfers
Transfers                                     45,296          55,929     (45,296)       (55,929)
Increase (Decrease) in Net Assets         14,681,697      13,996,072    (159,814)        386,360     14,521,883         14,382,482

Net Assets July 1                        152,170,145     138,174,073    1,561,245     1,174,885     153,731,390        139,348,958
Net Assets June 30                      $166,851,842    $152,170,145   $1,401,431    $1,561,245    $168,253,273       $153,731,390




                                                                                                                                     16
                School District Five of Lexington and Richland Counties
                         Management’s Discussion and Analysis
                        For the Fiscal Year Ended June 30, 2007


Governmental Activities

The following table presents the cost of the District’s five major functional activities: instruction
service, support service, community service, intergovernmental, and interest on long-term debt.
The table also shows each function's net cost (total cost less charges for services generated by the
activities and intergovernmental aid provided for specific programs). The net cost shows the
financial burden that was placed on the State and District's taxpayers by each of these functions.
In other words, it shows the amount supported by tax revenue and unrestricted funds.

                                           Table 3
                                     Governmental Activities
                                         June 30, 2007

                                  Total Cost of Services                Net Cost of Services
                                   2007             2006                2007              2006
Instruction Service        $89,513,413 $84,035,162                 ($40,204,440)     ($35,840,044)
Support Service             55,254,878   53,068,424                 (33,420,030)      (31,719,330)
Community Service               78,231       81,070                     (64,889)          (62,332)
Intergovernmental              525,218    1,053,433                    (525,218)         (360,734)
Interest (Long-Term Debt)    1,043,455      916,724                  (1,043,455)         (916,724)
Depreciation                 1,587,476      422,789                  (1,587,476)         (422,789)
Totals                    $148,002,671 $139,577,602                ($76,845,508)     ($76,845,508)

Business-Type Activities

Business-type activities include the School District’s school food service and after school
programs. These programs had revenues of $4,922,080, non-operating revenue of $2,407,424,
and expenses and transfers of $7,489,318. This resulted in net loss of $159,814.

THE SCHOOL DISTRICT’S FUNDS

As noted earlier, the District uses fund accounting to ensure and demonstrate compliance with
finance-related legal requirements.

Governmental Funds: The focus of the District's governmental funds is to provide information
on near-term inflows, outflows, and balances of spendable resources. Such information is useful
in assessing the District's financing requirements. In particular, unreserved fund balance may
serve as a useful measure of the District's net resources available for spending at the end of the
fiscal year.

The general fund is the principal operating fund of the District. The increase in fund balance in
the general fund for the fiscal year was $6,527,876. After reservations for inventories, prepaid
expenditures, and encumbrances combined with designations for school carryover budgets and
subsequent years’ expenditures, the undesignated fund balance was $21,994,142. It is the policy
of the Board of Trustees to designate at least 8.33% of the ensuing year’s general fund revenue as
a minimum fund balance designation as advised by the District’s bond counsel and financial
advisors.




                                                                                                        17
                School District Five of Lexington and Richland Counties
                         Management’s Discussion and Analysis
                        For the Fiscal Year Ended June 30, 2007


The debt service fund balance showed an increase of $675,114 from the prior year. This was a
result of the additional property tax received from the South Carolina Electric & Gas backup dam
project. The District maintains sufficient fund balance in the debt service fund to pay the ensuing
six-month principal and interest payments on general obligation debt.

The capital projects fund showed a fund balance increase of $18,000,197. The ending balance is
$15,837,577. The district issued bonds in October 2006 and May 2007. The remaining proceeds
of these issues will be spent during the 2007 – 2008 fiscal year to complete projects as outlined in
the district’s capital plan.

Proprietary Funds: The District’s proprietary fund (food service fund) showed decrease in fund
balance of $189,405. The decrease resulted from the increase in salaries and fringe benefits, and
food costs while holding per meal revenue constant.

Enterprise Funds: After successful implementation of an after school program at Chapin
Elementary and Irmo Elementary Schools in the 2005 – 2006 fiscal year, the District started three
more programs at Dutch Fork Elementary, River Springs Elementary, and Crossroads Middle
Schools this fiscal year. The total program showed a net income of $29,591.

General Fund Budgeting Highlights

The School District’s budget is prepared according to South Carolina law. The District does not
revise revenue budgets except for insurance reimbursements from property losses, miscellaneous
donations, and transfers from the fiduciary fund for the purchase of supplies and materials. The
Operating Millage was 190.9 mills which was an increase of 17.3 mills from the prior year.

The 2006 – 2007 fiscal year budget increased by 7.4%. Increased payroll and employee benefits
costs attributable to growth in the student population are the primary reason for the increase.
Salary for all staff members (teachers, administrators, and support staff) was increased by a step
increase and a cost of living adjustment of 2.61%.

A schedule showing the final budget amounts compared to the District's actual financial
activity for the general fund is provided in this report as required supplementary
information.




                                                                                                       18
                             School District Five of Lexington and Richland Counties
                                      Management’s Discussion and Analysis
                                     For the Fiscal Year Ended June 30, 2007


            CAPITAL ASSETS AND DEBT ADMINISTRATION

            Capital Assets

            At June 30, 2007, The School District had $158,910,113 invested in a broad range of capital
            assets, including land, buildings, furniture, equipment, vehicles, and library books. This
            represents a net increase of $5,655,518 (3.7%) for the 2006 – 2007 fiscal year.

                                                      Table 4
                                                    Capital Assets

                                                                    Business-Type                     Total
                                   Governmental Activities             Activities                School District
                                     2007          2006            2007          2006          2007           2006
Land                              $ 4,808,777    $4,808,777            $0            $0      $4,808,777     $4,808,777
Buildings                          204,424,045  182,177,406              0             0    204,424,045    182,177,406
Site Improvements                    6,940,413    2,661,098              0             0      6,940,413      2,661,098
Furniture and Equipment              7,322,197    4,877,550      4,781,674     4,781,674     12,103,871      9,659,224
Construction in Progress             1,086,089   18,405,638              0             0      1,086,089     18,405,638

Total Before Accumulated         $224,581,521   $212,930,469     4,781,674   $4,781,674     229,363,195      217,712,143
Depreciation

Less: Accumulated Depreciation     65,671,408     59,675,874     3,453,822    3,231,770      69,125,320       62,907,644

Net Capital Assets               $158,910,113   $153,254,595   $1,327,852    $1,594,904    $160,237,965   $154,804,499


            Oak Pointe Elementary School opened at the beginning of the 2006 – 2007 school year, which
            comprised the largest change in capital assets for the year. Additional information on capital
            assets can be found in Note 4 of this report.




                                                                                                                           19
                School District Five of Lexington and Richland Counties
                         Management’s Discussion and Analysis
                        For the Fiscal Year Ended June 30, 2007


Debt

On June 30, 2007, the School District had $31,295,000 in bonds outstanding versus $15,275,000
at the end of 2006. Those bonds consisted of:

                                           Table 5
                                       Outstanding Debt

                                                     Governmental Activities
                                               2007                          2006
       September 1, 1996 Issue              $ 2,905,000                  $ 5,645,000
       November 7, 1997 Issue               $ 1,015,000                  $ 1,980,000
          August 1, 2005 Issue              $ 6,650,000                  $ 7,650,000
         October 1, 2006 Issue              $ 7,175,000                  $         0
           May 30, 2007 Issue               $13,550,000                  $         0
Total General Obligation Bonds              $31,295,000                  $15,275,000

The School District’s stand-alone bond rating is Aa3 with Moody’s Investors Service, however,
due to the provisions of the South Carolina School District Credit Enhancement Program (in
which the state guarantees payment of general obligation bonds), the District’s underlying rating
is Aa1. School districts in South Carolina may issue up to 8% of their assessed value without
voter approval. On May 30, 2007, the District’s debt capacity was approximately $31,524,337.

Other obligations include capital leases and accrued obligations such as annual leave
accumulated. More detailed information on these obligations is available in Note 7 (Long-Term
Debt) of the financial statements.

ECONOMIC FACTORS AND NEXT YEAR’ S BUDGET AND RATES

The School District, a suburban residential and shopping area located west of Columbia, the State
Capital and most populous city in South Carolina, is one of the fastest growing areas in the State.
The District encompasses a land area of approximately 196 square miles. The District serves two
counties, a portion of Richland County and a portion of Lexington County. The student
population was 16,569 students. The District has grown by 175 students last year. Major
taxpayers are South Carolina Electric and Gas, A T & T, Shaw Industries, and Mid Carolina
Electric Cooperative. Columbiana Mall, one of the larger shopping malls in the State, contributes
to a diverse and stable economy. The District operates 12 elementary schools, 4 middle schools,
3 high schools and 1 alternative academy.

Our elected and appointed officials considered many factors when setting the School District’s
budget and tax rates for 2007 – 2008. The most important factor affecting the budget for the near
future is the implementation of the new revenue structure, created by Act 388 of 2006. Act 388
eliminated property taxes for owner-occupied houses and replaced that revenue stream with a
one-cent sales tax imposed by the state. For the 2007 – 2008 fiscal year, the revenue replacement
is a 100% exchange. After the 2008 fiscal year, any increase in this revenue will be based on the
consumer price index increase plus growth in the state population. Initial studies have shown that
this increase will not be sufficient to match the rapid growth in owner-occupied homes in the
District. With the District growing at an average of over 300 students annually, this change in




                                                                                                      20
                School District Five of Lexington and Richland Counties
                         Management’s Discussion and Analysis
                        For the Fiscal Year Ended June 30, 2007


revenue presents a formidable challenge. We need to serve the new students in our area, and
continue to provide at least the same level of service to our current students. Beginning in the
2007 – 2008 fiscal year, school districts with unlimited autonomy to raise millage were restricted
to a percentage increase of the consumer price index and population growth in the district. While
this limited autonomy does provide some flexibility with growing student population, it does
create a dilemma for our Board to place additional tax burden on the remaining taxpayers.

When setting the 2007 – 2008 fiscal year budget, the District considered growth of new students,
targeted assistance for those elementary schools with high poverty factors, and new initiatives to
improve the instruction provided to our students. The general fund budget for the 2007 – 2008
fiscal year is $140,283,025, with a 190.9 operating millage.

CONTACTING THE SCHOOL DISTRICT’S FINANCIAL MANAGEMENT

This financial report is designed to provide our citizens, taxpayers, and investors and creditors
with a general overview of the School District’s finances and to show the School District’s
accountability for the money it receives. If you have questions about this report or need additional
financial information, contact J. Brock Heron, Chief Financial Services Officer, at 1020 Dutch
Fork Road, Irmo, SC, 29063, or E-mail at bheron@lex5.k12.sc.us.




                                                                                                       21
                        BASIC FINANCIAL
                          STATEMENTS
The basic financial statements consist of the government-wide financial statements, the
fund financial statements, and the notes to the financial statements. The basic financial
statements provide a summary overview of the financial position of all funds and of the
operating results of all funds. They also serve as an introduction to the more detailed
statements and schedules that follow.
SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
STATEMENT OF NET ASSETS
JUNE 30, 2007

                                                                                 Governmental        Business-Type
                                                                                   Activities          Activities           Total
ASSETS

CURRENT ASSETS
Cash and Cash Equivalents                                                        $     50,827,359    $       573,173    $    51,400,532
Taxes Receivable                                                                        2,159,119                   -         2,159,119
Accounts Receivable                                                                     3,852,054            161,637          4,013,691
Due from County Government                                                              4,033,562                   -         4,033,562
Internal Balance                                                                          606,497          (606,497)                   -
Inventory                                                                                 282,233            209,140            491,373
Prepaid Items                                                                             180,799                   -           180,799

TOTAL CURRENT ASSETS                                                                   61,941,623           337,453          62,279,076

NON-CURRENT ASSETS
Land                                                                                     4,808,777                  -          4,808,777
Buildings                                                                             204,424,045                   -       204,424,045
Site Improvements                                                                        6,940,413                  -          6,940,413
Equipment                                                                                7,322,197         4,781,674          12,103,871
Construction-in-Progress                                                                 1,086,089                  -          1,086,089
Accumulated Depreciation                                                              (65,671,408)       (3,453,822)        (69,125,230)

TOTAL NON-CURRENT ASSETS                                                              158,910,113         1,327,852         160,237,965

TOTAL ASSETS                                                                          220,851,736         1,665,305         222,517,041

LIABILITIES

CURRENT LIABILITIES
Accounts Payable                                                                           93,079                  -             93,079
Due to Other Government Funds                                                              12,149                  -             12,149
Accrued Salaries                                                                        9,112,576                  -          9,112,576
Other Accrued Liabilities                                                               7,201,233                  -          7,201,233
Unearned Revenue                                                                        2,123,078            69,468           2,192,546
Accrued Interest                                                                           92,463                  -             92,463
Current Portion of Long-Term Obligations                                               17,070,000                  -         17,070,000
Current Portion of Compensated Absences Payable                                           366,387            17,499             383,886

TOTAL CURRENT LIABILITIES                                                              36,070,965            86,967          36,157,932

NON-CURRENT LIABILITIES
Noncurrent Portion of Long-Term Obligations                                            14,225,000                  -         14,225,000
Noncurrent Portion Compensated Absences Payable                                         3,703,929           176,907           3,880,836

TOTAL NON-CURRENT LIABILITIES                                                          17,928,929           176,907          18,105,836

TOTAL LIABILITIES                                                                      53,999,894           263,874          54,263,768

NET ASSETS
Invested in Capital Assets, Net of Related Debt                                       127,615,113         1,327,852         128,942,965
Restricted For:
  Debt Service                                                                          3,188,124                  -          3,188,124
  School Building Fund                                                                 15,337,577                  -         15,337,577
Unrestricted                                                                           20,711,028            73,579          20,784,607
TOTAL NET ASSETS                                                                      166,851,842         1,401,431         168,253,273

TOTAL LIABILITIES AND NET ASSETS                                                 $    220,851,736    $    1,665,305     $   222,517,041




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




                                                                                                                                           22
     SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
     STATEMENT OF ACTIVITIES
     YEAR ENDED JUNE 30, 2007


                                                                                 PROGRAM REVENUES                          NET (EXPENSE) REVENUE & CHANGES IN NET ASSETS
                                                                                     OPERATING       CAPITAL
                                                                     CHARGES FOR    GRANTS AND     GRANTS AND              GOVERNMENTAL BUSINESS-TYPE
     FUNCTIONS/PROGRAMS                           EXPENSES             SERVICES    CONTRIBUTIONS  CONTRIBUTIONS             ACTIVITIES   ACTIVITIES                TOTAL

     Governmental Activities:
        Instruction Service                   $     89,513,413       $         872,627     $    48,436,346         $   -   $   (40,204,440)   $           -    $   (40,204,440)
        Support Service                             55,254,878                 489,424          21,345,424             -       (33,420,030)               -        (33,420,030)
        Community Service                               78,231                       -              13,342             -           (64,889)               -            (64,889)
      Intergovernmental                                525,218                       -                   -             -          (525,218)               -           (525,218)
      Interest & Other Charges:                      1,043,455                       -                   -             -        (1,043,455)               -         (1,043,455)
      Depreciation - Unallocated                     1,587,476                       -                   -             -        (1,587,476)               -         (1,587,476)
     Total Governmental Activities                 148,002,671               1,362,051          69,795,112             -       (76,845,508)               -        (76,845,508)

     Business-Type Activities:
      Food Services                                  7,215,560               4,656,827            2,390,437            -                 -         (168,296)          (168,296)
      After School                                     228,462                 265,253                                                               36,791             36,791
     Total Business-Type Activities                  7,444,022               4,922,080            2,390,437            -                 -         (131,505)          (131,505)

     Total                                    $    155,446,693       $       6,284,131     $    72,185,549         $   -       (76,845,508)        (131,505)       (76,977,013)

                                                                    General Revenues:
                                                                     Property Taxes Levied For:
                                                                      General Purposes                                          60,008,122               -          60,008,122
                                                                      Debt Service                                              15,544,153               -          15,544,153
                                                                     Payment in Lieu of Taxes                                       78,278               -              78,278
                                                                     Unrestricted State Revenue in Lieu of Taxes                13,730,219               -          13,730,219
                                                                     Unrestricted Investment Earnings                            1,912,150          16,987           1,929,137
                                                                     Miscellaneous                                                 208,987               -             208,987
                                                                    Subtotal, General Revenues                                  91,481,909          16,987          91,498,896

                                                                    Excess of Revenues over Expenses Before
                                                                     Transfers                                                  14,636,401         (114,518)        14,521,883
                                                                      Transfers                                                    45,296           (45,296)                 -

                                                                    Change in Net Assets                                        14,681,697         (159,814)        14,521,883

                                                                    Net Assets, Beginning of the Year                          152,170,145        1,561,245        153,731,390
                                                                    Net Assets, End of the Year                            $   166,851,842    $   1,401,431    $   168,253,273




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




23
SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2007

                                                                                        Education                                         Total
                                                                     Special          Improvement        Debt            Building      Governmental
                                                 General             Projects              Act          Service           Fund            Funds
ASSETS
Cash and Cash Equivalents                     $ 50,827,359       $           -        $         -   $           -    $             -   $   50,827,359
Taxes Receivable                                 1,693,946                   -                  -         465,173                  -        2,159,119
Accounts Receivable                                326,780           3,112,469             19,064               -           393,741         3,852,054
Due from Other Funds                             2,672,080                    -           950,666               -        15,536,173        19,158,919
Due from County Government                         860,034              41,381                  -       3,132,147                  -        4,033,562
Inventory                                          282,233                    -                 -                -                 -          282,233
Prepaid Items                                      180,799                    -                 -                -                 -          180,799

TOTAL ASSETS                                     56,843,231          3,153,850            969,730       3,597,320        15,929,914        80,494,045

LIABILITIES
Accounts Payable                                           -               742                  -              -             92,337            93,079
Due to Other Funds                               16,567,064          1,985,358                  -              -                  -        18,552,422
Due to Other Governmental Funds                            -                  -            12,149              -                  -            12,149
Accrued Salaries                                  9,112,145                221                210              -                  -         9,112,576
Other Accrued Liabilities                         7,199,411                 46              1,776              -                  -         7,201,233
Deferred Revenue                                  1,382,487          1,167,483            955,595        409,196                  -         3,914,761

TOTAL LIABILITIES                                34,261,107          3,153,850            969,730        409,196             92,337        38,886,220

FUND BALANCES
Fund Balances:
 Reserved for special purposes                      124,951                     -               -       3,188,124           500,000         3,813,075
 Reserved for inventory                             282,233                     -               -                -                -           282,233
 Reserved for prepaid items                         180,798                     -               -                -                -           180,798
 Unreserved:
 Undesignated                                    21,994,142                     -               -                -       15,337,577        37,331,719
TOTAL FUND BALANCES                              22,582,124                     -               -       3,188,124        15,837,577        41,607,825

TOTAL LIABILITIES
 AND FUND BALANCES                            $ 56,843,231       $ 3,153,850          $   969,730   $ 3,597,320      $ 15,929,914      $   80,494,045



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




                                                                                                                                                        24
SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
RECONCILIATION OF THE GOVERNMENTAL FUND BALANCES
TO THE STATEMENT OF NET ASSETS
JUNE 30, 2007



Reconciliation of governmental fund balances to
 Statement of Net Assets:

 Total Fund Balances - Governmental Funds                                                                     $    41,607,825

 Capital assets used in governmental activities are not financial resources
 and therefore are not reported as assets in governmental funds.
      Capital Assets                                                                       $   224,581,521
      Accumulated Depreciation                                                                 (65,671,408)       158,910,113


   Certain deferred revenues reported in the governmental funds are recognized
   subject to a reserve for uncollectible amounts in the Statement of Activities.
   This is the additional amount of taxes receivable recognized under the accrual basis.                            1,791,683

 Long-term liabilities are not due and payable in the current period
  and therefore are not reported as liabilities in the funds.
      Bonds Payable                                                                                               (31,295,000)
      Compensated Absences                                                                                         (4,070,316)
      Accrued Interest                                                                                                (92,463)

 Total Net Assets - Governmental Activities                                                                   $   166,851,842




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




                                                                                                                                 25
SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2007




                                                                                        Education                                               Total
                                                General              Special          Improvement            Debt             Building       Governmental
                                                 Fund                Projects             Act               Service            Fund             Funds
Revenues
Local                                       $    62,506,834      $     562,924        $            -    $ 15,791,322      $      404,569     $    79,265,649
State                                            63,429,515          1,796,391            11,262,911         539,784                   -          77,028,601
Federal                                                   -          6,350,891                     -               -                   -           6,350,891

Total Revenues                                  125,936,349          8,710,206            11,262,911        16,331,106           404,569         162,645,141

Expenditures
Current
  Instruction                                    74,580,657          4,307,795             7,301,730                  -                -          86,190,182
  Support Services                               45,948,273          3,852,109             1,104,410                  -                -          50,904,792
 Community Services                                       -             13,342                     -                  -                -              13,342
Capital Outlay                                       10,061             81,691                     -                  -       14,832,194          14,923,946
Debt Service
 Principal                                                -                  -                     -        17,705,000                   -        17,705,000
 Interest and Other Fees                                  -                  -                     -           950,992                   -           950,992
Intergovernmental                                   233,692            291,526                     -                 -                   -           525,218

Total Expenditures                              120,772,683          8,546,463             8,406,140        18,655,992        14,832,194         171,213,472

    Excess (Deficiency) of Revenues
    Over Expenditures                             5,163,666            163,743             2,856,771        (2,324,886)       (14,427,625)        (8,568,331)

Other Financing Sources (Uses)
Issuance of General Obligation Bonds                      -                  -                     -                 -        33,725,000          33,725,000
Sale of Capital Assets                                1,222                  -                     -                 -                 -               1,222
Transfers In                                      4,915,926                  -               131,873         3,000,000                 -           8,047,799
Transfers Out                                    (3,552,938)          (163,743)           (2,988,644)                -        (1,297,178)         (8,002,503)

Total Other Financing Sources (Uses)              1,364,210           (163,743)           (2,856,771)        3,000,000        32,427,822          33,771,518

Net Change in Fund Balance                        6,527,876                     -                  -          675,114         18,000,197          25,203,187

Fund Balance July 1, 2006                        16,054,248                     -                  -         2,513,010         (2,162,620)        16,404,638

Fund Balance June 30, 2007                  $    22,582,124      $              -     $            -    $    3,188,124    $ 15,837,577       $    41,607,825




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




                                                                                                                                                                26
SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2007




Net change in fund balances - total governmental funds                                                           $   25,203,187

Capital outlays to purchase or build capital assets are reported
in governmental funds as expenditures. However, for governmental
activities those costs are shown in the Statement of Net Assets and
allocated over the estimated useful lives as annual depreciation
expenses in the Statement of Activities. This is the amount by which
capitals outlays exceed depreciation in the period.
   Capital outlays                                                                           $     11,651,052
   Depreciation expense                                                                            (5,995,534)        5,655,518


The issuance of long-term debt (e.g. bonds) provides current financial resources to
governmental funds, while the repayment of the principal of long-term debt consumes
the current financial resources of governmental funds. Neither transaction, however,
has any effect on net assets. This is the amount that debt issued during the year
($33,725,000)exceeds bonds principal paid during the year ($17,705,000) .                                            (16,020,000)


In the Statement of Activities the loss on disposal of capital assets is reported, whereas
in the governmental funds, proceeds from the disposal of capital assets ($0) increases
financial resources. Thus, the change in net assets differs from the change in
fund balance by the net book value of the capital assets disposed.                                                             -

Interest on long-term debt in the Statement of Activities differs from the amount reported
in the governmental funds because interest is recognized as an expenditure in the funds
when it is due, and thus requires the use of current financial resources. In the Statement
of Activities, however, interest expense is recognized as the interest accrues, regardless
of when it is due. This amount represents the change in accrued interest on bonds
between the years.                                                                                                       29,563

In the Statement of Activities, compensated absences are measured by the amounts
earned during the year. However, in the governmental funds expenditures for these
absences are measured by the amount of financial resources used. This amount
represents the change in accrued compensated absences between years.
This amount is the difference in compensated absences recognized at the end of the
current year ($4,070,316) and that revenue recognized at the end of the prior year ($3,889,814).                       (180,502)

Certain deferred tax revenues reported in the governmental funds are recognized as
revenue in the Statement of Activities, net of a reserve for uncollected amounts.
This amount is the difference in tax revenue recognized at the end of the current year
($1,797,752) and that revenue recognized at the end of the prior year ($1,791,683).                                       (6,069)


Change in Net Assets - Governmental Activities                                                                   $   14,681,697



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




                                                                                                                                    27
SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL - GENERAL FUND
YEAR ENDED JUNE 30, 2007


                                                                                                                             Variance
                                                                                                                             with Final
                                                                                                                              Budget
                                                                 Budgeted Amounts                                            Positive
                                                           Original            Final                     Actual             (Negative)
Revenues:

Local                                                $       61,478,470       $        61,570,040    $    62,504,379    $         934,339
State                                                        63,092,409                63,092,409         63,431,970              339,561

Total Revenues                                              124,570,879               124,662,449        125,936,349            1,273,900

Expenditures:
Current
  Instruction                                                75,268,291                76,091,912         74,580,657            1,511,255
  Support Services                                           44,987,434                47,408,729         45,948,273            1,460,456
Debt Service                                                      8,000                     8,000                  -                8,000
Capital Outlay                                                   12,701                     9,898             10,061                 (163)
Intergovernmental                                               269,566                   265,941            233,692               32,249

Total Expenditures                                          120,545,992               123,784,480        120,772,683            3,011,797

Excess (Deficiency) of Revenues
 Over Expenditures                                             4,024,887                 877,969           5,163,666            4,285,697

Other Financing Sources (Uses):
Sale of Capital Asset                                              5,000                    5,000              1,222               (3,778)
Transfers In                                                   3,121,356                3,121,356          4,915,926            1,794,570
Transfers Out                                                 (7,152,479)              (4,004,325)        (3,552,938)             451,387

Total Other Financing Sources (Uses)                          (4,026,123)                (877,969)         1,364,210            2,242,179

Excess (Deficiency) of Revenues and Other
 Financing Sources over Expenditures and
 Other Financing (Uses)                              $            (1,236)     $                 -          6,527,876    $       6,527,876


Fund Balance, July 1, 2006                                                                                16,054,248

Fund Balance, June 30, 2007                                                                          $    22,582,124




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




                                                                                                                                             28
SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
STATEMENT OF NET ASSETS
PROPRIETARY FUND
JUNE 30, 2007

                                                                             Business-Type          Business-Type
                                                                                 Activity               Activity
                                                                             Enterprise Fund        Enterprise Fund
                                                                                                     After School
                                                                                 Food Services         Program            Totals
ASSETS

CURRENT ASSETS
Cash and Cash Equivalents                                                    $          573,173     $             -   $      573,173
Due from General Fund                                                                                        80,225           80,225
Accounts Receivable                                                                     161,637                   -          161,637
Inventory                                                                               209,140                   -          209,140

TOTAL CURRENT ASSETS                                                                    943,950              80,225         1,024,175

CAPITAL ASSETS
Equipment                                                                              4,781,674                  -         4,781,674
Accumulated Depreciation                                                              (3,453,822)                 -        (3,453,822)

TOTAL NONCURRENT ASSETS                                                               1,327,852                   -         1,327,852

TOTAL ASSETS                                                                          2,271,802              80,225         2,352,027

LIABILITIES

CURRENT LIABILITIES
Due to General Fund                                                                     686,722                   -          686,722
Unearned Revenue                                                                         69,468                   -           69,468
Current Portion of Compensated Absences Payable                                          17,499                   -           17,499

TOTAL CURRENT LIABILITIES                                                               773,689                   -          773,689

NON-CURRENT LIABILITIES
Noncurrent Portion Compensated Absences Payable                                         176,907                   -          176,907

TOTAL NON-CURRENT LIABILITIES                                                           176,907                   -          176,907

TOTAL LIABILITIES                                                                       950,596                   -          950,596

NET ASSETS
 Invested in Capital Assets                                                           1,327,852                   -         1,327,852
 Unrestricted                                                                            (6,646)             80,225            73,579

TOTAL NET ASSETS                                                                      1,321,206              80,225         1,401,431

TOTAL LIABILITIES AND NET ASSETS                                             $        2,271,802     $        80,225   $     2,352,027




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




                                                                                                                                         29
SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS
PROPRIETARY FUND TYPES - ENTERPRISE FUNDS
YEAR ENDED JUNE 30, 2007
                                                   Food Service                         After School
                                                      Fund                                Program           Totals
Operating Revenues:
 Proceeds of Sales                                $   4,656,827                         $   265,253     $   4,922,080

Operating Expenses:
 Salaries and Wages                                                        2,636,185        137,500         2,773,685
 Employee Benefits                                                           929,362         22,748           952,110
 Supplies                                                                  3,227,894         45,898         3,273,792
 Purchased Services                                                          161,118         22,316           183,434
 Depreciation                                                                222,052              -           222,052
 Other                                                                        38,949              -            38,949
Total Operating Expenses                                                   7,215,560        228,462         7,444,022

Operating Income (Loss)                                                   (2,558,733)        36,791         (2,521,942)

Non-Operating Revenue:
 Interest                                                                     16,987               -           16,987
 USDA Reimbursements                                                       1,990,457               -        1,990,457
 Commodities Received from USDA                                              344,807               -          344,807
 Other Income                                                                 55,173               -           55,173
Total Non-Operating Revenue                                                2,407,424               -        2,407,424

Income (Loss) before Transfers                                              (151,309)        36,791          (114,518)

Transfers In (Out)                                                           (38,096)         (7,200)         (45,296)

Net Income                                                                  (189,405)        29,591          (159,814)

Net Assets, Beginning of Year                                              1,510,611         50,634         1,561,245

Net Assets, End of Year                                               $    1,321,206    $    80,225     $   1,401,431




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




                                                                                                                         30
SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
STATEMENT OF CASH FLOWS
PROPRIETARY FUND TYPES - ENTERPRISE FUNDS
YEAR ENDED JUNE 30, 2007

                                                                                                        After School
                                                                                      Food Services       Program            Totals
Increase (Decrease) in Cash and Cash Equivalents

Cash Flows From Operating Activities:
 Cash Received From Patrons                                                           $    4,667,719    $    265,253    $ 4,932,972
 Cash Payments to Suppliers For Goods and Services                                        (3,132,531)        (68,214)     (3,200,745)
 Cash Payments to Employees For Services                                                  (3,545,132)       (160,248)     (3,705,380)
 Other Income                                                                                 55,173               -          55,173

 Net Cash Provided (Used) By Operating Activities                                         (1,954,771)        36,791         (1,917,980)

Cash Flows From Non-Capital Financing Activities:
 Cash Received From USDA Reimbursements                                                   1,998,399                -        2,305,663
 Transfers - Out to Other Funds                                                             (59,879)         (36,791)         (96,670)

     Net Cash (Used) By Non-Capital Financing Activities                                  1,938,520          (36,791)       1,901,729

Cash Flows From Investing Activities:
 Interest on Investments                                                                     16,987                -           16,987

     Net Cash Provided By Investing Activities                                               16,987                -           16,987

Net Increase In Cash And Cash Equivalents                                                       736                -              736

Cash And Cash Equivalents At Beginning Of Year                                              572,437                -          572,437

Cash And Cash Equivalents At End Of Year                                                    573,173                -          573,173

SUPPLEMENTAL SCHEDULE OF NON-CASH OPERATING
 ACTIVITIES - Non-cash donation-USDA Commodities                                      $     344,807     $          -    $     344,807




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




                                                                                                                                          31
SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
COMBINED STATEMENT OF CASH FLOWS
PROPRIETARY FUND TYPES - ENTERPRISE FUNDS
YEAR ENDED JUNE 30, 2007

                                                                                                            After School
                                                                                      Food Service            Program              Totals
Reconciliation Of Operating Income To Net Cash
Provided By Operating Activities
Operating Income (Loss)                                                               $   (2,558,733)   $         36,791       $   (2,521,942)

Adjustments To Reconcile Operating Income To Net Cash Used
 By Operating Activities:
  Depreciation                                                                              222,052                        -         222,052
  Noncash USDA Commodities Used                                                             344,807                        -         344,807
  Other Non-Operating Revenue                                                                55,173                        -          55,173
  Change In Assets And Liabilities:
   Increase In Inventory                                                                     (49,377)                      -          (49,377)
   Decrease In Accounts Receivable                                                            10,892                       -           10,892
   Increase In Accounts Payable                                                                    -                       -                -
   Increase In Accrued Expenses                                                               20,415                       -           20,415

   Net Cash Provided (Used) By Operating Activities                                   $   (1,954,771)   $         36,791       $   (1,917,980)




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




                                                                                                                                                 32
SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES
FIDUCIARY FUND TYPE
JUNE 30, 2007




                                                                                         Agency
                                                                                         Funds
ASSETS                                                                                Pupil Activities

Cash and Cash Equivalents                                                             $    1,364,885
Accounts Receivable                                                                           41,183
Fuel Inventory                                                                                 4,158

TOTAL ASSETS                                                                               1,410,226

LIABILITIES

Accounts Payable                                                                               1,877
Due to Pupil Activities                                                                    1,408,349

TOTAL LIABILITIES                                                                     $    1,410,226




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




                                                                                                         33
SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
YEAR ENDED JUNE 30, 2007

Notes to the Basic Financial Statements

Note 1.        Summary of Significant Accounting Policies

The accounting policies of School District Five of Lexington and Richland Counties conform to
accounting principles generally accepted in the United States of America as applicable to governments.
The following is a summary of the more significant accounting policies:

Reporting entity: School District Five of Lexington and Richland Counties (The District) is a Local
Education Agency empowered by State law with the responsibility to oversee and control all activities
related to public school education in Lexington and Richland Counties, South Carolina. The Board
receives State, local and federal government funding and must adhere to the legal requirements of each
funding entity. The District operates under the direction of an elected seven member Board of Trustees,
with a superintendent serving as the chief administrative officer, and provides education services to
approximately 16,600 students.

The financial reporting entity, as defined by GASB Statement No. 14, The Financial Reporting Entity,
consists of the primary government, organizations for which the primary government is financially
accountable and other organizations for which the nature and significance of their relationship with the
primary government are such that exclusion could cause the financial statements to be misleading or
incomplete. Based on the following criteria, the District has determined it has no component units and it
is not a component unit of any other organization. Therefore, the District reports as a primary entity.

The primary entity is financially accountable if it appoints a voting majority of the organization's governing
body including situations in which the voting majority consists of the primary entity's officials serving as
required by law and (1) it is able to impose its will on that organization or (2) there is a potential for the
organization to provide specific financial benefits to, or impose specific financial burdens on, the primary
entity. The primary entity also may be financially accountable if an organization is fiscally dependent on it
even if it does not appoint a voting majority of the board. An organization is fiscally dependent on the
primary entity that holds one or more of the following powers: determine its budget without another
government's having the authority to approve and modify that budget, levy taxes or set rates or charges
without approval by another government, and issue bonded debt without approval by another government.

Basis of presentation: The financial statement presentation for the District has been changed to meet
the requirements of Governmental Accounting Standards Board (GASB) Statement No. 34, Basic
Financial Statements and Management’s Discussion and Analysis for State and Local Governments.
The financial statement presentation provides a comprehensive, entity-wide perspective of the District’s
net assets, revenue, expenses and changes in net assets and cash flows that replaces the fund-group
perspective previously required.

Government-wide statements: The statement of net assets and the statement of activities display
information about the District. These statements include the financial activities of the overall government,
except for fiduciary activities. Eliminations have been made to minimize the effect of internal activities upon
revenues and expenses. These statements distinguish between the governmental and business-type
activities of the District. Governmental activities generally are financed through intergovernmental revenues,
and other non-exchange transactions. Business-type activities are financed in whole or in part by fees
charged to external parties.

The statement of activities presents a comparison between direct expenses and program revenues for the
different business-type activities of the District and each function of the 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 expense allocations that have been made in the funds
have been eliminated for the statement of activities. Program revenues include (a) fees and 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
program revenues are presented as general revenues.

                                                                                                                  34
SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
YEAR ENDED JUNE 30, 2007

Notes to the Basic Financial Statements

Note 1.         Summary of Significant Accounting Policies (Continued)

Basis of presentation (continued):

The effect of inter-fund activity has been eliminated from the government-wide financial statements.

Fund financial statements: The fund financial statements provide information about the District’s funds.
Separate statements for each fund category – governmental, proprietary, and fiduciary – are presented.
The emphasis of fund financials statements is on major governmental and enterprise funds, each displayed
in a separate column. All District’s governmental and enterprise funds are reported as major funds. The
fiduciary funds are presented separately.

Proprietary fund operating revenues, such as charges for services, result from exchange transactions
associated with the principal activity of the fund. Exchange transactions are those in which each party
receives and gives up essentially equal values. Non-operating revenues, such as subsidies and investment
earnings, result from non-exchange transactions or ancillary activities.

The District reports the following major governmental funds:

General fund: The General Fund is the general operating fund of the District. The General Fund accounts
for all financial resources except those that are required to be accounted for in another fund. All property
taxes, intergovernmental revenues, charges for services, education finance act revenues, and
miscellaneous revenues are recorded in this fund except amounts which are specifically collected to service
debt or for which the District collects in a fiduciary capacity. Operational expenditures for general instruction,
support services, general administration and other departments of the District are paid through the General
Fund.

Special revenue fund - special projects fund: The Special Revenue Projects Fund accounts for the
financial transactions of the various special projects in which the District participates. All special projects
supported in whole or in part with federal, state and local resources (other than expendable trusts,
Education Improvement Act proceeds or major capital projects) are accounted for in this fund.

Special revenue fund – Education Improvement Act: The Education Improvement Act (EIA) fund
accounts for the proceeds of the additional one percent sales and use tax that are restricted to expenditures
of the Education Improvement Act strategies. The purpose of the EIA, in general, is to provide additional
funding to local school districts for the purpose of raising academic standards by providing for, among other
purposes, basic skills remediation, teacher salary increases and the modernization of equipment and
instructional facilities.

Debt service fund: Accounts for the accumulation of resources for and the payment of general long-term
debt, principal and interest. The primary financing source for the fund is Counties property taxes.

School building fund: The School Building Fund accounts for financial resources to be used for the
acquisition and construction of major capital facilities, other than those financed by proprietary funds and
trust funds. Capital projects are funded by proceeds of bonds issued for public school construction and from
certain State assistance and grants.

The District reports the following major proprietary funds:

Food service fund: The Food Service Fund, an enterprise fund, is used to account for operations of the
school lunch and breakfast programs, which are financed and operated in a manner similar to private
business enterprises, where the intent of the Board is that the costs of providing the services be recovered
primarily through user charges, even though the activity is subsidized from other governmental resources.


                                                                                                                     35
SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
YEAR ENDED JUNE 30, 2007

Notes to the Basic Financial Statements

Note 1.         Summary of Significant Accounting Policies (Continued)

After school fund: The After School Fund, an enterprise fund, is used to account for operations of the after
school programs, which are financed and operated in a manner similar to private business enterprises,
where the intent of the Board is that the costs of providing the services be recovered primarily through user
charges.

Additionally, the District reports the following fund type:

Agency fund –pupil activity fund: This fund is used to report resources held by the District in a custodial
capacity for student organizations and activities. Those funds generally belong to the individual schools or
their student bodies and are not available for general use by the District.

Measurement focus and basis of accounting: Government-wide, proprietary, and fiduciary fund
financial statements: The government-wide, proprietary and fiduciary fund financial statements are
reported using the economic resource measurement focus and the accrual basis, revenues are recognized
when earned, and expenses are recorded when an obligation has been incurred, regardless of when the
related cash flows take place. Non-exchange transactions, in which the District gives (or receives) value
without directly receiving (or giving) equal value in exchange, include grants and donations. Revenue from
grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied.

Proprietary funds: Proprietary funds distinguish operating revenues and expenses from nonoperating
items. Operating revenues and expenses generally result from providing services and producing and
delivering goods in connection with a proprietary fund’s principal ongoing operations.

Operating expenses for proprietary funds include the cost of sales and services, administrative expenses,
and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as
nonoperating revenues and expenses.

Governmental fund financial statements: Governmental funds and expendable trust funds (fiduciary
funds) are reported using the current financial resources measurement focus and modified accrual basis of
accounting. Under this method, revenues are recognized when measurable and available. The District
considers all revenues reported in governmental funds to be available if the revenues are collected within
sixty days after year-end. These include federal and state grants, some charges for services, and ad-
valorem property taxes.

Expenditures are recorded when the related fund liability is incurred, except for claims and judgments and
compensated absences, which are recognized as expenditures to the extent they have matured. General
capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-
term debt and acquisitions under capital leases are reported as other financing sources. Funds received but
not yet earned are reflected as deferred revenues.

Under the terms of grant agreements, the District funds certain programs by a combination of specific cost-
reimbursement grants and general revenues. Thus when program expenses are incurred, there are both
restricted and unrestricted net assets available to finance the program. It is the District’s policy to first apply
cost-reimbursement grant resources to such programs and then general revenues.

In accordance with GASB Statement No. 20, Accounting and Financial Reporting for Proprietary Funds and
Other Governmental Entities That Use Proprietary Fund Accounting, the District has elected to apply all
private sector standard issued prior to December 1, 1989 as long as those standards do not conflict with
GASB pronouncements, in accounting and reporting of the transactions of its proprietary funds.

Use of resources: When both restricted and unrestricted resources are available for use, it is the District’s
policy to use restricted resources first, and then unrestricted resources as they are needed.

                                                                                                                      36
SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
YEAR ENDED JUNE 30, 2007

Notes to the Basic Financial Statements

Note 1.       Summary of Significant Accounting Policies (Continued)

Budgets and budgetary accounting: The District sole legally adopted budget is for the general fund as
approved by the Board of Trustees prior to the beginning of each fiscal year. The adopted budget
specifies total expenditure limits.

The School Board for any expenditure exceeding total appropriations makes supplemental budget
appropriations. Unexpended appropriations lapse at fiscal year-end. Budget amounts reflected in the
accompanying financial statements represent the adopted budget and any revisions during the fiscal
year. The administration has discretionary authority to make transfers between appropriation accounts
and the Chief Financial Services Officer approves all line item transfers. No supplemental appropriations
were necessary during the year.

The budget is prepared on a basis consistent with accounting principles generally accepted in the United
States of America and consistent with actual financial statement presentation to provide meaningful
comparisons.

The following procedures are used in establishing the general fund budget:

1.     Prior to the May meeting of the Board, the Superintendent submits a budget for the operation of
       the entire school system of the School District. This budget, at the discretion of the Board, is
       based upon proposed budgets submitted by the administrators and advisory board of the various
       schools of the School District.

2.     A public hearing is held before the 25th day of June to obtain taxpayer comments.

3.     Following the public hearing and before July first of each year the Board takes final action on the
       budget.

4.     Upon final action by the Board on the budget, the Chairman of the Board notifies the auditor and
       treasurer of the Counties of the amount of money required for the operation of the District during
       the next fiscal year. Upon receipt of this notice the auditor levies taxes on all the taxable property
       of the Counties.

5.     Formal budgetary integration is employed as a management control device during the year.
       Encumbrances are recorded at the time a good or service is ordered and the remaining budget
       appropriation is reduced by the same amount. When the good or service is received, the
       encumbrance is reversed in the budgetary accounts and an expenditure is recorded in the
       general ledger accounts. Encumbered appropriations lapse at year-end and all outstanding
       encumbrances are canceled.

Once the budget has been approved, the Chief Financial Services Officer can approve any line item
transfers without Board approval. Board approval is needed for any budget adjustment to total
expenditures or interfund transfers. For the year ended June 30, 2007, there were no budget
amendments. The legal level of budgetary control is at the fund level. Small line item transfers were
amended.

Cash and cash equivalents: For purposes of the statement of cash flows, the District considers all
highly liquid investments with an original maturity of three months or less to be cash equivalents.

Investments: The District accounts for its investments at fair value in accordance with GASB Statement
No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools.
Changes in unrealized gain or loss on the carrying value of investments are reported as a component of
investment income in the statement of revenues, expenditures, and changes in fund balances.

                                                                                                                37
SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
YEAR ENDED JUNE 30, 2007

Notes to the Basic Financial Statements

Note 1.        Summary of Significant Accounting Policies (Continued)

Accounts receivable: Accounts receivable consists of amounts due from the Federal government,
state and local governments or private sources, in connection with reimbursement of allowable
expenditures made pursuant to the District’s grants and contracts. Accounts receivable are recorded net
of estimated uncollectible amounts.

Allowance for doubtful accounts: All receivables that historically experience uncollectible accounts
are shown net of an allowance for doubtful accounts. This amount is determined by analyzing the
percentage of receivables that were not collected in prior years.

Inventories: The cost of inventory items is valued at cost, based on the “Average Cost” method of
accounting in all funds except for the Proprietary Fund. The Proprietary Fund records its inventory as an
asset held for future use. When used, the cost is included in operating expenses in the year of usage.
Inventories recorded in the Proprietary Fund are valued at the lower of cost or market determined on a
first-in, first-out basis except for commodities received from the United States Department of Agriculture
(USDA), which are stated at values assigned by the USDA.

Capital assets: Capital assets are recorded at cost at the date of acquisition or fair market value at the
date of donation in the case of gifts. Where cost could not be determined from the available records,
estimated historical cost was used to record the estimated value of the assets. All land is capitalized,
regardless of cost. Qualifying improvements that rest in or on the land itself are recorded as depreciable
land improvements.

Qualifying improvements include major additions and renovations; improvements that add to the usable
space; or improvements that extend the useful life of an existing building are capitalized. The District
capitalizes moveable personal property with a unit value in excess of $ 5,000 and a useful life in excess
of one year. Routine repairs and maintenance are charged to expenses in the year in which the expense
was incurred.

Depreciation is computed using the straight-line method over the estimated lives of the assets, generally
10 to 50 for buildings and improvements, 5 to 8 for vehicles 10 to 20 for site improvements and 3 to 15
years for machinery, equipment. Depreciation is pro rated the year the asset is placed in service and in
the year of disposition. The District allocates depreciation expense to programs/functions based on the
ratio of program/functional expenses to total expenses with certain modifications.

Unearned revenues: Deferred revenues in the governmental funds include amounts received from
grant and contract sponsors that have not yet been earned. Deferred revenues in the enterprise fund
represent USDA commodities included in inventory at year-end but not reflected as revenue until the
commodities are consumed.

Long-term obligations: In the government-wide financial statements and proprietary fund types in the
fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the
applicable governmental activities, business-type activities, or proprietary fund type statement of net
assets. Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the
life of the bonds using the effective interest method. Bonds payable are reported net of the applicable
bond premium or discount. Bond issuance costs are reported as deferred charges and amortized over
the term of the related debt.

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

                                                                                                               38
SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
YEAR ENDED JUNE 30, 2007

Notes to the Basic Financial Statements

Note 1.        Summary of Significant Accounting Policies (Continued)

Compensated absences: The majority of School District employees are employed under 190-day
contracts. Therefore, these employees do not earn vacation as part of their benefit package. Leave is
granted to all full-time employees at a rate of one and one-fourth days of leave for every twenty days of
active service up to a maximum of fifteen days total personal and sick leave. Leave can be accumulated
up to ninety days. Administrative and other personnel employed for twelve months are granted up to ten
days of vacation at the rate of one day for every twenty-four working days. An employee may use
vacation days during the fiscal year in which they are earned, but no later than the end of the following
fiscal year.

Compensated absences for vacation and leave and other salary related payments are recorded as a
liability when earned by administrative employees if the following conditions are met:

1.     The compensated absence is earned on the basis of services already performed by the
       employee.

2.     It is probable that the compensated absence will be paid in a future period.

No accrual is made for compensated absences that are dependent upon the occurrence of specific future
events that are outside the control of the employer or the employee. Compensated absences are
reported in governmental funds only if they have matured.

The School District has recorded the amount of accumulated employee vacation and other salary related
payments of the governmental fund types that are and are not expected to be liquidated with expendable
available financial resources. No expenditure is reported for these amounts.

Non-exchange transactions: The District generally has two types of non-exchange transactions,
government-mandated non-exchange transactions (which occur when a government at one level
provides resources to a government at another level and requires the recipient to use the resources for a
specific purpose) and voluntary non-exchange transactions (which result from legislative or contractual
agreements other than exchanges, entered into willingly by the parties to the agreement). The District
recognizes non-exchange transactions when they are both measurable and probable for collection. For
government-mandated non-exchange transactions and voluntary non-exchange transactions, the District
recognized assets when all applicable eligibility requirements are met or resources are received,
whichever is first, and revenue when all applicable eligibility requirements are met.

Net assets/fund balances: The District’s net assets in the government-wide financial statements and
proprietary fund financial statements are classified as follows:

Invested in capital assets, net of related debt: This represents the District’s total investment in capital
assets, net of accumulated depreciation and reduced by outstanding liabilities that are attributable to the
acquisition, construction or improvement of those assets. To the extent debt has been incurred but not
yet expended for capital assets, such amounts are not included as a component of invested in capital
assets, net of related debt but rather as a restricted net asset.

Restricted net assets: Restricted net assets include resources in which the District is legally or
contractually obligated by external parties such as lenders, grantors or contributors or by laws or
regulations to spend in accordance with the restrictions imposed.

Unrestricted net assets: Unrestricted net assets consist of all other net assets not included in the
above categories.




                                                                                                              39
SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
YEAR ENDED JUNE 30, 2007

Notes to the Basic Financial Statements

Note 1.        Summary of Significant Accounting Policies (Continued)

Net assets/fund balances (continued): The District’s policy for applying expenses that can use both
restricted and unrestricted resources is designated to the program administrative level. General practice
is to first apply the expense to the restricted resource then to unrestricted resources.

In the governmental fund financial statements, reservations or restrictions of fund balance represent
amounts that are not available for appropriation, are legally separated for a specific purpose, or are
restricted by a grant agreement. Designations of fund balance represent tentative management plans
that are subject to change.

The governmental fund types classify fund balances as follows:

Reserved:

       Reserved for Debt Service – represents the Debt Service Fund balance that is not available for
       appropriation because it represents the year-end fund balance that is legally restricted for future
       debt service on general obligation bonds and is not an expendable, available resource.

       Reserved for School Building Fund – represents the School Building Fund balance that is not
       available for appropriation because it represents the year-end fund balance that has been
       formally restricted to use for approved building projects and is not an expendable, available
       resource.

Unreserved:

       Undesignated – portion of total fund balance available for appropriation that is uncommitted at
       year-end.

Income taxes: The District, as a political subdivision of the State of South Carolina, is excluded from
Federal income taxes under Section 115(1) of the Internal Revenue Code.

Classification of revenues: The District has classified its revenues as either operating or non-operating
revenues according to the following criteria:

Operating revenues: Operating revenues generally result from exchange transactions related to the
District’s principal ongoing operations. These revenues include (1) student tuition and fees received in
exchange for providing educational services or (2) grants and contracts that are essentially the same as
contracts for services that finance programs the District would not otherwise undertake.

Non-operating revenues: Non-operating revenues include activities that have the characteristics of non-
exchange transactions. These revenues include gifts and contributions, investment income, and any grants
or contracts that are not classified as operating revenue or restricted by the grantor to be used exclusively
for capital purposes.

Use of estimates: The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the reporting period. Actual
results could differ from those estimates.




                                                                                                                40
SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
YEAR ENDED JUNE 30, 2007

Notes to the Basic Financial Statements

Note 2.         Cash and Cash Equivalents

All cash and investments are stated at fair value with accrued interest shown on the statement of net assets.
The District is authorized to invest funds received from the Counties Treasurer which are not needed for
immediate disbursement by the District, in interest bearing accounts or certificates of deposit issued by
banking institutions or savings and loan associations licensed to do business in this state or in securities
issued by the United States Government. As of June 30, 2007, all of the District’s cash was held in demand
deposit accounts covered by federal depository insurance or by collateral held by the District’s agent in the
District’s name.

At June 30, 2007, the carrying amount of the District’s deposits and investments held by the various funds
was as follows:

Fund Types                                                 Deposits
General Fund                                           $    50,827,359
Government-wide carrying
 amount at June 30, 2007                                    50,827,359
Food Service                                                   573,173
Pupil Activity Fund                                          1,364,885
Carrying amount at June 30, 2007                       $    52,765,417

Credit risk: The District adheres to the State of South Carolina’s investment policy, and invests in
primarily Certificates of Deposit and U.S. Government-backed obligations. There are no investments in
commercial paper or corporate bonds and equities. The District has $17,330,689 invested with the
South Carolina State Investment Pool, and $2,948,294 invested with Branch Banking and Trust.

The local government investment pool is a 2a7-like pool which is not registered with the Securities and
Exchange Commission (“SEC”) as an investment company, but has a policy that it will operate in a
manner consistent with the SEC’s Rule 2a7 of the Investment Company Act of 1940. The Pool is
included as an investment trust fund in the State of South Carolina Comprehensive Annual Financial
Report. At June 30, 2007, the underlying security ratings of the District's investment in the Local
Government Investment Pool (LGIP) is classified in risk category “A” and may be obtained from the
LGIP's complete financial statements by writing to the following address:

          Office of the State Treasurer
          Local Government Investment Pool
          Post Office Box 11778
          Columbia, South Carolina 29211

Interest rate risk: In accordance with its investment policy, the District manages its exposure to declines in
fair values by limiting the weighted average maturity of its investment portfolio to less than twelve months.

It is the policy of the State Treasurer’s Office that no derivatives of the U.S. Government Securities or
Federal Agency Securities or A1/P1 Commercial Paper be purchased by or for the S.C. Local
Government Investment Pool. It is the policy of the State Treasurer’s Office that the weighted average
maturity (WAM) of the LGIP portfolio not exceed 60 days.

Concentration of credit risk: The District’s investment policy does not allow for an investment in any one
issuer that is in excess of 5 percent (5%) of the total investments. Most investments are U.S. governmental
obligations.

Foreign currency risk: The District has no foreign currency investments.


                                                                                                                 41
SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
YEAR ENDED JUNE 30, 2007

Notes to the Basic Financial Statements

Note 2.          Cash and Cash Equivalents (Continued)

Custodial credit risk: This is the risk that the District will not be able to recover the value of investment or
collateral securities that are in the possession of an outside party if the counter party to the investment
transaction fails. There are no uninsured investments.

Note 3.          Receivables

Property taxes are levied by Lexington and Richland Counties (the Counties) on the assessed value for
all real and personal property (except vehicles) owned on the preceding December 31st. Liens are
attached to the property at the time the taxes are levied, which usually occurs in November of each year.
These taxes are due without penalty through January 15th. Penalties are added to taxes depending
upon the date paid as follows:

January 16th - February 1st                      3% of tax
February 2nd - March 15th                       10% of tax
March 16th - Collection Date                    15% of tax plus collection costs

The Counties levy taxes on vehicles in the month prior to the renewal of annual vehicle registration
through the State Highway Department. These taxes are due by the last day of the same month.

Taxes receivable as reported in the statement of net assets are net of the following allowance for
uncollectible amounts:

Delinquent taxes receivable                                                 $ 3,084,456
Less: Allowance for uncollectible amounts                                   ( 925,337 )
 Taxes Receivable                                                           $ 2,159,119

Note 4.          Capital Assets

Capital asset activity for the year ended June 30, 2007 was as follows:

Capital Assets

Governmental Activities:                               Beginning                                                Ending
                                                        Balance           Increases         Decreases           Balance
Capital Assets, Not Being Depreciated:
Land                                               $     4,808,777    $            -    $           -       $     4,808,777
Construction-in-Progress                                18,405,638           849,369        (18,168,918)          1,086,089
Total Capital Assets, Not Being Depreciated             23,214,415           849,369        (18,168,918)          5,894,866



Capital Assets, Being Depreciated:
Buildings                                              182,177,406        22,246,639                    -       204,424,045
Site Improvements                                        2,661,098         4,279,315                    -         6,940,413
Furniture and Equipment                                  4,877,550         2,444,647                    -         7,322,197
Total Capital Assets, Being Depreciated                189,716,054        28,970,601                    -       218,686,655




                                                                                                                          42
SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
YEAR ENDED JUNE 30, 2007

Notes to the Basic Financial Statements

Note 4.          Capital Assets (Continued)

Capital Assets

Governmental Activities:                             Beginning                                                   Ending
                                                      Balance            Increases           Decreases           Balance
Less Accumulated Depreciation For:
Buildings                                       $     (56,472,589)   $    (4,783,099)    $               -   $   (61,255,688)
Site Improvements                                        (388,163)          (354,584)                    -          (742,747)
Furniture and Equipment                                (2,815,122)          (857,851)                    -        (3,672,973)
Total Accumulated Depreciation                        (59,675,874)        (5,995,534)                    -       (65,671,408)



Total Capital Assets, Being Depreciated, Net          130,040,180        22,975,067                      -       153,015,247



Governmental Activities Capital Assets, Net          153,254,595         23,824,436          (18,168,918)        158,910,113

Business Type Activities:
 School Food Service Fund:
  Capital Assets Being Depreciated:
   Furniture and Equipment                              4,781,674                    -                   -         4,781,674
     Total Capital Assets Being Depreciated             4,781,674                    -                   -         4,781,674

  Less, Acumulated Depreciation for:
   Furniture and Equipment                             (3,231,770)         (222,052)                     -        (3,453,822)
    Total Accumulated Depreciation                     (3,231,770)         (222,052)                     -        (3,453,822)

Business Type Activities Capital Assets, Net    $       1,549,904    $     (222,052)     $               -   $     1,327,852


Depreciation expense was charged to functions/programs of the primary government as follows:

Government Activities:
 Instruction                                                                             $       3,323,231
 Support                                                                                         1,019,938
 Community Services                                                                                 64,889
 Unallocated                                                                                     1,587,476

      Total Depreciation – Governmental Activities                                               5,995,534

Business – Type Activities:
 Food Service                                                                                      222,052

      Total Depreciation – Business Type Activities                                      $         222,052




                                                                                                                           43
SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
YEAR ENDED JUNE 30, 2007

Notes to the Basic Financial Statements

Note 4.        Capital Assets (Continued)

Construction commitments: The District has active construction projects at June 30, 2007. The
projects include primarily school building construction and renovation. At June 30, 2007 the District’s
commitments with contractors are as follows:

                                                       Spent-                Remaining
       Project                                        to-Date                Commitment
Chapin Elementary                                $          1,800          $      221,850
Lake Murray Elementary                                      7,708                 109,962
Chapin High                                               398,005                 949,433
Chapin Middle                                               2,666                 393,234
H. E. Corley Elementary                                    36,421                  73,879
Ballentine Elementary                                         560                  33,440
Dutch Fork Elementary                                         720                  26,780
Dutch Fork High                                            24,041                 439,459
Dutch Fork Middle                                             280                 109,320
Harbison West Elementary                                    1,575                 139,725
Irmo High                                                 513,782                 798,118
Crossroads Middle                                          29,423               1,035,677
Irmo Middle                                                   160                  55,240
Leapheart Elementary                                        2,448                 180,632
Seven Oaks Elementary                                       1,099                 235,201
District Office                                            65,401                 551,111

Total Government Activities                      $      1,086,089          $     5,353,061

Note 5.        Retirement Plan

Plan description: Substantially all of the School District's full-time employees are required by law to
participate in the South Carolina Retirement System ("SCRS") which is a cost-sharing multiple-employer
public employee defined benefit pension plan administered by the Retirement Division of the State
Budget and Control Board.

This is a Defined Benefit Retirement System, which was established by the South Carolina State
Legislature on July 1, 1945 for the benefit of teachers and employees of the State and its political
subdivisions. The Plan's provisions are established and amended under Title 9 of the S. C. Code of
Laws.

All full-time employees are eligible and must participate in the SCRS. The pension plan provides
benefits, deferred allowances, and death and disability benefits. Under the SCRS, employees are
eligible for a full service retirement annuity upon reaching age 65 or completion of 28 years of credited
service regardless of age. The benefit formula for full benefits effective since July 1, 1989, for the SCRS
is 1.82% of an employee's average final compensation multiplied by the number of years of credited
service. Early retirement options with reduced benefits are available as early as age 55. Employees are
vested for a deferred annuity after five years of service and qualify for a survivor's benefit upon
completion of 5 years credited service. Disability annuity benefits are payable to employees totally and
permanently disabled provided they have a minimum of five years of service (this restriction does not
apply if the disability is the result of a job-related injury). A group-life insurance benefit equal to an
employee's annual rate of compensation is payable upon the death of an active employee with a
minimum of one year of credited service.



                                                                                                              44
SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
YEAR ENDED JUNE 30, 2007

Notes to the Basic Financial Statements

Note 5.          Retirement Plan (Continued)

Effective January 1, 2001, Section 9-1-2210 of the South Carolina Code of Laws allows employees
eligible for service retirement to participate in the Teacher and Employee Retention Incentive (TERI)
Program. TERI participants may retire and begin accumulating retirement benefits on a deferred basis
without terminating employment for up to five years. Upon termination of employment or at the end of
the TERI period, whichever is earlier, participants will begin receiving monthly service retirement benefits
which will include any cost of living adjustments granted during the TERI period. Because participants
are considered retired during the TERI pension, they do not make SCRS contributions, do not earn
service credit, and are ineligible to receive group life insurance benefits or disability retirement benefits.
For employees who entered the TERI program after July 1, 2005 they are required to pay member
contributions.

The South Carolina Retirement System issues a publicly available Comprehensive Annual Financial
Report containing financial statements and supplementary information for the South Carolina Retirement
System and the Police Officers Retirement System. The report is publicly available at
www.retirement.sc.gov or a copy may be obtained by writing the South Carolina Retirement System,
Post Office Box 11960, Columbia, S.C. 29211-1960.

Funding policy: Both employers and employees are required to contribute to the Plan under the
authority of Title 9 of the S. C. Code of Laws. South Carolina Retirement System members are required
to contribute 6.50% of their annual covered earnings.

The School District is required to contribute at an actuarially determined contribution rate. The current
rate is 11.40% of annual covered earnings, which includes a 3.35% surcharge to fund retiree health and
dental insurance coverage. In addition, participating employers also contribute .15% of annual covered
payroll for group life insurance benefits for their participants. Annual covered payroll of active members
for the year ended June 30, 2007 was $ 79,484,840. Annual covered payroll of retired members for the
year ended June 30, 2007 was $ 11,648,868. All contributions were equal to the required contribution
each year.

       Fiscal Year               Annual Employer            Percentage Contributed
         June 30                  Contributions                for Current Year

          2005                    $   5,968,597                     100%
          2006                        6,544,123                     100%
          2007                        7,336,263                     100%



Optional retirement program: Certain State employees may elect to participate in the Optional
Retirement Program (ORP), a defined contribution plan. The ORP was established in 1987 under Title 9,
Chapter 17, of the South Carolina Code of Laws. The ORP provides retirement and death benefits
through the purchase of individual fixed or variable annuity contracts, which are issued to, and become
the property of, the participants. The State assumes no liability for this plan other than for payment of
contributions to designated insurance companies.

ORP participation is limited to faculty and administrative staff who meet all eligibility requirements for
membership in the SCRS. To elect participation in the ORP, eligible employees must irrevocably waive
SCRS membership within their first thirty days of employment.

Certain of the District’s employees have elected to be covered under optional retirement plans. For the
fiscal year, total contribution requirements to the ORP on wages of $ 5,554,928 were $ 355,515 from the
district as employer. The additional .15% group life insurance coverage was paid for these employees.
The obligation for payment of benefits resides with the insurance companies.


                                                                                                                 45
SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
YEAR ENDED JUNE 30, 2007

Notes to the Basic Financial Statements

Note 6.             Post-Employment Benefits

In accordance with the South Carolina Code of Laws and the Annual Appropriations Act, the State of
South Carolina provides certain health care, dental, and life insurance benefits to certain active and
retired State employees and certain surviving dependents of retirees. All permanent full-time and certain
permanent part-time employees of the District are eligible to receive these benefits. The State provides
post-employment health and dental benefits to employees who retire from State service or who
terminated with at least twenty years of State service who meet one or more of the eligibility
requirements, such as age, length of service and hire date. Generally, those who retire must have at
least ten years of retirement service credit to qualify for these state-funded benefits. Benefits are
effective at date of retirement when the employee is eligible for retirement benefits. Substantially all of
the District’s employees may become eligible for these benefits if they reach normal retirement age while
working for the District. An employer contribution surcharge of 3.30% of covered payroll has been added
to the employer contribution rate paid to the South Carolina Retirement System to cover these benefits.

The benefits are provided through annual appropriations by the General Assembly to the District for its
active employees and to the State Budget and Control Board for all participating State retirees except the
portion funded through the pension surcharge and provided from other fund sources of the District for its
active employees who are not funded by the State General Fund appropriations. The State finances
health and dental plan benefits on a pay-as-you-go basis.

Note 7.             Bonds Payable and Compensated Absences

The following is a summary of long-term debt transactions of the District for the year ended June 30,
2007:

                                                                                                      Outstanding
   Date of Issues          Interest Rates         Maturity                  Original Issue           June 30, 2007

September 1, 1996           4.8% - 6.8%            2008                 $       22,000,000       $            2,905,000
November 1, 1997           4.25% - 6.00%           2008                          7,600,000                    1,015,000
August 1, 2005                  3%                 2008                         22,300,000                    6,650,000
October 1, 2006                 4%                 2009                         20,175,000                    7,175,000
May 30, 2007                    3%                 2009                         13,550,000                   13,550,000

 Totals                                                                 $       85,625,000       $           31,295,000

The annual requirements to amortize all bonds outstanding as of June 30, 2007 are as follows:

   Year Ended
    June 30                       Principal                  Interest                                Total

      2008                           17,070,000                 1,093,708                            18,163,708
      2009                           14,225,000                   569,000                            14,794,000
      Totals                 $       31,295,000         $       1,662,708                    $       32,957,708




                                                                                                                          46
SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
YEAR ENDED JUNE 30, 2007

Notes to the Basic Financial Statements

Note 7.           Bonds Payable and Compensated Absences (Continued)

Long-term liability activity for the year ended June 30, 2007 was as follows:

                                       Beginning                                                    Ending                 Due Within
                                        Balance             Additions           Reductions          Balance                One Year
Changes in long-term liabilities

Governmental Activities:
Bonds Payable:

 General Obligation Bonds:
  Issued September 1, 1996         $      5,645,000     $               -   $     (2,740,000)   $    2,905,000         $     2,905,000
  Issued November 7, 1997                 1,980,000                     -           (965,000)        1,015,000               1,015,000
  Issued August 1, 2005                   7,650,000                               (1,000,000)        6,650,000               6,650,000
  Issued October 1, 2006                                    20,175,000           (13,000,000)        7,175,000               5,500,000
  Issued May 30, 2007                                       13,550,000                     -        13,550,000               1,000,000
       Total Bonds Payable               15,275,000         33,725,000           (17,705,000)       31,295,000              17,070,000


Compensated Absences                      3,889,814            528,157             (347,655)            4,070,316              366,387

  Government Activity
    Long-term Liabilities                19,164,814         34,253,157           (18,052,655)       35,365,316              17,436,387



Business Activities:

Compensated Absences                        173,991              37,020              (16,605)            194,406                17,499

  Business Activities
    Long-term Liabilities          $        173,991     $        37,020     $        (16,605)   $        194,406       $        17,499

The South Carolina Constitution limits local borrowing power to 8 percent of its assessed property value.
The Limitation excludes bonded indebtedness existing on December 1, 1977 (date of the Constitutional
amendment), certain special levies assessed on properties located in an area receiving special benefits,
and other prescribed indebtedness approved by the voters. Based on the December 31, 2006 assessed
property valuation of $ 394,054,214 (unaudited), the legal debt limit is $ 31,524,337, leaving a legal debt
margin of $ 4,149,337 at June 30, 2007.

For the governmental activities, compensated absences are generally liquidated by the general fund.

Note 8.           Deferred Revenue

Unearned revenues (those where asset recognition criteria have been met, but for which revenue
recognition criteria have not been met) consist of the following:

                                                        Special                    EIA                     Food
                                                     Projects Fund                 Fund                 Service Fund
Unexpended Carryover Amounts                       $      1,167,483         $        955,595
USDA Commodity Inventory                                                                            $           69,468


                                                                                                                                         47
SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
YEAR ENDED JUNE 30, 2007

Notes to the Basic Financial Statements

Note 9.        Transfers In and Out

Transfers during the year ended June 30, 2007 consisted of the following:

                                                        General Fund
            Transfers from               Amount                                  Transfers to      Amount
Special Revenue-EIA                    $ 2,988,644                 Special Revenue-EIA               131,873
Enterprise Fund                            466,361                 Enterprise Fund                   421,065
Special Revenue-Special Projects           163,743                 Debt Service                  $ 3,000,000
Building Fund                            1,297,178
                                       $ 4,915,926                                               $   3,552,938



                                             Special Revenue Funds
                                                Special Projects
           Transfers from                Amount                            Transfers to              Amount
                                       $        -             General Fund                       $     163,743



                                                            EIA
           Transfers from                Amount                                   Transfers to       Amount
General Fund                           $   131,873                 General Fund                  $   2,988,644

                                                Debt Service Fund
           Transfers from                Amount                                   Transfers to       Amount
General Fund                           $ 3,000,000                                               $            -




                                                        Building Fund
           Transfers from                  Amount                                 Transfers to       Amount
                                       $            -              General Fund                  $   1,297,178



                                                 Enterprise Fund
           Transfers from                Amount                            Transfers to              Amount
General Fund                           $   421,065            General Fund                       $     466,361

TOTAL                                  $   8,468,864                                             $   8,468,864

Descriptions of interfund transfers:

General Fund to Special Revenue – EIA – to fund the local portion of grants.

General Fund to Debt Service – to reduce the millage of the Debt Service.


General Fund to Enterprise Fund – to transfer to fund the portion of benefit costs funded by the state.


Special Projects to General Fund – to transfer allowable indirect costs from grants.


                                                                                                                  48
SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
YEAR ENDED JUNE 30, 2007

Notes to the Basic Financial Statements

Note 9.        Transfers In and Out (Continued)

Special Revenue – EIA to General Fund – to transfer amounts received for EIA Teacher Salary
Increase and Fringe Benefits to the general fund where expenditures are recorded.

Enterprise Fund to General Fund – to transfer allowable indirect costs.

Building Fund to General Fund – to close funds previously funded through the general fund.

Note 10.       Interfund Receivables and Payables

The composition of interfund balances as of June 30, 2007 is as follows:

                                                      Interfund                Interfund
   Fund                                              Receivables               Payables

General Fund                                     $                 -       $    13,894,984
Special Projects                                                   -             1,985,358
Food Service Fund                                                  -               686,722
EIA                                                          950,666                     -
Building Fund                                             15,536,173                     -
After School                                                  80,225                     -
 Total for Primary Government                    $        16,567,064       $    16,567,064

Due to general fund from special revenue funds: The District participates in various federally funded
projects, many of which operate on a cost reimbursement basis. That is, the expenditure must be
incurred prior to submitting a claim for reimbursement. Accordingly, the District must temporarily provide
funds for these project expenditures until such time as the related reimbursement from the grantor
agency is received. All interfund balances are expected to be repaid within one year from the date of the
financial statements.

Due to and from other funds: The District uses one bank account to hold deposits and to issue checks
which results in the inter-fund receivables and payables for each of the funds. All interfund balances are
expected to be repaid within one year from the date of the financial statements.

Note 11.       Operating Leases

The School District is obligated to account for certain leases as operating leases. Operating leases do
not give rise to property rights or lease obligations and, therefore, the results of the lease agreements are
not reflected in the School District's account groups. Current rental expenditures for the year ended
June 30, 2007were $ 503,064. The following is a schedule by years of future minimum rental payments
required under operating leases that have initial or remaining non-cancelable lease terms in excess of
one year as of June 30, 2007:

       Year Ended
        June 30                                             Totals
          2008                                        $       727,896
          2009                                                726,848
          2010                                                700,168
          2011                                                327,686
          2012                                                157,799
Total Rent Payments                                   $     2,640,397



                                                                                                                49
SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
YEAR ENDED JUNE 30, 2007

Notes to the Basic Financial Statements

Note 12.       Pupil Activity Fund

The South Carolina Department of Education requires a Schedule of Receipts, Disbursements, and
Changes in Amounts Due to Pupil Activities for the Pupil Activity Fund, although the Pupil Activity Fund is
an Agency Fund, which does not report results of operations. Accordingly, this schedule has been
included in the financial statements in an effort to satisfy this requirement and accounting principles
generally accepted in the United States of America.

Note 13.       Risk Management

The District is exposed to various risks of loss related to torts; thefts of, damage to, and destruction of
assets; errors and omissions; injuries to employees; and natural disasters. The District pays an annual
premium to the South Carolina School Board Insurance Trust for its general insurance. The South
Carolina School Board Insurance Trust reinsures through commercial companies.

The District acquires insurance from the South Carolina School Board Insurance Trust for job related
injury and illness (workers’ compensation) for its employees. Workers’ compensation is insured under a
retrospectively rated policy where premiums are estimated throughout the year and adjusted subsequent
to the policy period based on actual experience.

General blanket fidelity bond insurance from a private insurer was also maintained for the District’s
employees as well as athletic catastrophic insurance.

There were no significant reductions in insurance coverage from the previous year and no settlements
have exceeded insurance coverage for the past three years ended June 30, 2006, 2005 and 2004.

Note 14.       Contingencies and Litigation

The District is party to various lawsuits arising out of the normal conduct of its operations. In the opinion
of the District’s management, the ultimate effect of these legal matters will not have a material adverse
effect of the District’s financial position.

The District participates in certain federal and state grant programs. These programs are subject to
financial and compliance audits by the grantor or its representative. Such audits could lead to requests
for reimbursement to the grantor agency for expenditures disallowed under terms of the grant.
Management believes disallowances, if any, will not be material.

Note 15.       Fund Equity Reservations and Designations

Reservations of fund balances of governmental funds are established to either (1) satisfy legal covenants
that require that a portion of the fund balance be segregated or (2) identify the portion of fund balance
that is not appropriable for future expenditures. Specific reservations of the fund balance accounts are
summarized below:

Reserved for inventory – An account used to segregate a portion of fund balance to indicate inventory
does not represent available, spendable resources even though it is a component of current assets.

Reserved for prepaid items – An account used to segregate a portion of fund balance to indicate that
prepaid items do no represent available, spendable resources even though it is a component of current
assets.

Reserved for special purposes general fund – An amount reserved for anticipated school parking lots
maintenance.


                                                                                                                50
SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
YEAR ENDED JUNE 30, 2007

Notes to the Basic Financial Statements

Note 15.         Fund Equity Reservations and Designations (Continued)

Reserved for special purposes building fund- An amount reserved for future land purchase for new
schools.

Note 16.         Legal Compliance

All schedules and exhibits are presented in the level of detail as required by the South Carolina
Department of Education. Account numbers are presented on the combining fund statements and
supporting schedules as required.

Note 17.         Reconciliation of Certain Functional Expenditures to Functional Expense

The following is a reconciliation of certain functional expenses from the Statement of Revenues,
Expenditures and Changes in Fund Balance to the Government-Wide Statement of Activities:

                                                                             Community
                                                Instruction     Support       Service      Intergovernmental

From Statement of Revenues, Expenditures
 and Changes in Fund Balance                   $ 86,190,182   $ 50,904,792   $   13,342    $         525,218

Reconciling Items:

Depreciation Expense                              3,323,231      1,019,938       64,889                    -
Compensated Absences                                      -         20,415            -                    -
Allocation of Capital Outlay Non-Capitalized              -      3,309,733            -                    -

From Statement of Activities                   $ 89,513,413   $ 55,254,878   $   78,231    $         525,218

The District allocated capital outlay expenditures that were in excess of amounts capitalized as part of
capital asset additions based upon actual capital outlay expenditures recorded in the governmental fund
statements under each function.




                                                                                                               51
SUPPLEMENTAL INFORMATION
                             GENERAL FUND
The General Fund also referred to as the “general operating fund,” is the basic budgetary fund
of the School District. It is used to account for all financial resources except for those
required to be accounted for in another fund. All property taxes, intergovernmental revenues,
and miscellaneous revenues are recorded in this fund except amounts which are specifically
collected to service debt or capacity. Operational expenditures for general education, support
services and other departments of the district are paid through the General Fund. Any
unreserved fund balance may be appropriated to support operating expenditures in subsequent
years.

The following Schedule of Revenue, Expenditures and Change in Fund Balance – Budget and
Actual for the General Fund has been prepared in the format mandated by the South Carolina
Department of Education. The account numbers shown on the schedule are also mandated by
the S.C. Department of Education.
SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
GENERAL FUND - BUDGETS AND ACTUAL
YEAR ENDED JUNE 30, 2007
                                                                                                      VARIANCE
                                                                    FINAL                             POSITIVE
                                                                   BUDGET           ACTUAL           (NEGATIVE)
REVENUES

1000 Revenue from Local Sources

 1100 Taxes:
  1110 Ad Valorem Taxes-Including Delinquent Taxes             $   56,596,470   $   59,670,588   $     3,074,118
  1140 Penalties & Interest On Taxes                                  290,000          343,603            53,603
 1200 Revenue From Local Governmental Units Other Than LEAs:
  1280 Revenue in Lieu of Taxes                                       30,000           60,363             30,363
 1300 Tuition:
  1310 Instructional Fees                                                  -           22,252              22,252
  1350 Summer School From Patrons                                    100,000           75,910             (24,090)
 1500 Earnings on Investments:
  1510 Interest on Investments                                       500,000         1,353,409           853,409
 1700 Pupil Activities:
  1740 Student Fees                                                  942,927          846,804             (96,123)
 1900 Miscellaneous Local Revenue:
  1910 Rentals                                                         80,000          55,418             (24,582)
  1950 Refund of Prior Year's Expenditures                              5,000          (4,752)             (9,752)
  1990 Miscellaneous Revenue                                           25,643          83,239              57,596
  1999 Allocation of Beginning Fund Balance                         3,000,000               -          (3,000,000)

Total Local Sources                                                61,570,040       62,506,834           936,794

3000 Revenue from State Sources

 3130 Special Programs:
  3131 Aides on Mini-Buses                                              7,000            2,578            (4,422)
  3132 Home Schooling                                                   4,000            6,509             2,509
 3160 School Bus Driver's Salary                                      622,108          697,769            75,661
 3162 Transportation Workers' Compensation                             56,944           57,554               610
 3165 EEDA Transportation                                                   -            2,050             2,050
 3180 Fringe Benefits Employer Contributions                       11,052,070       11,113,435            61,365
 3181 Retiree Insurance                                             1,763,149        1,866,479           103,330
 3199 Other Restricted State Grants                                         -           75,180            75,180
 3300 Education Finance Act:
  3311 Kindergarten                                                 2,423,444        2,196,548           (226,896)
  3312 Primary                                                      6,765,257        6,861,561             96,304
  3313 Elementary                                                  10,274,999       10,099,141           (175,858)
  3314 High School                                                  4,330,176        3,231,824         (1,098,352)
  3315 Vocational                                                     143,214          112,539            (30,675)
  3316 Speech Handicapped                                           2,806,263        2,852,594             46,331
  3317 Homebound                                                       87,124           95,270              8,146
 3320 Part-Time Programs:
  3321 Emotionally Handicapped                                        338,027          373,068            35,041
  3322 Educable Mentally Handicapped                                  193,161          120,339           (72,822)
  3323 Learning Disabilities                                        2,383,482        2,362,926           (20,556)
  3324 Hearing Handicapped                                             57,562           86,380            28,818
  3325 Visually Handicapped                                           100,954           71,024           (29,930)
  3326 Orthopedically Handicapped                                      65,357           68,422             3,065
  3327 Vocational                                                   6,390,520        7,551,785         1,161,265

                                                                                                                     52
SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
GENERAL FUND - BUDGETS AND ACTUAL
YEAR ENDED JUNE 30, 2007
                                                                                              VARIANCE
                                                          FINAL                               POSITIVE
                                                         BUDGET            ACTUAL            (NEGATIVE)
REVENUES (CONTINUED):

3000 Revenue from State Sources (Continued):

 3330 Other EFA Programs:
  3331 Autism                                        $      298,586    $      334,105    $        35,519
 3800 State Revenue In Lieu of Taxes:
  3810 Reimbursement for Local Property Tax Relief        10,580,071        10,580,071                 -
  3820 Homestead Exemption                                 1,737,190         1,778,554            41,364
  3830 Merchant's Inventory Tax                              213,955           213,955                 -
  3840 Manufacturers Depreciation Reimbursement              272,796           276,942             4,146
  3890 Other State Property Tax Revenues                     125,000           152,631            27,631
 3990 Other State Revenue:                                         -           177,120           177,120
  3992 State Forest Commission                                     -            11,162            11,162

Total State Sources                                       63,092,409        63,429,515           337,106

TOTAL REVENUE ALL SOURCES                                124,662,449       125,936,349         1,273,900



EXPENDITURES

100 INSTRUCTION

110 General Instruction:

 111 Kindergarten Programs:
  100 Salaries                                             3,839,370         3,783,348            56,022
  200 Employee Benefits                                    1,212,897         1,136,073            76,824
  400 Supplies and Materials                                  51,869            50,352             1,517
 112 Primary Programs:
  100 Salaries                                            11,368,705        11,536,666          (167,961)
  200 Employee Benefits                                    3,276,228         3,187,188            89,040
  300 Purchased Services                                         270               270                 -
  400 Supplies and Materials                                 210,157           208,082             2,075
 113 Elementary Programs:
  100 Salaries                                            18,412,995        18,266,987           146,008
  200 Employee Benefits                                    5,372,903         5,174,521           198,382
  300 Purchased Services                                      13,736            13,635               101
  400 Supplies and Materials                                 497,910           487,935             9,975
 114 High School Programs:
  100 Salaries                                            12,739,522        12,767,112           (27,590)
  200 Employee Benefits                                    3,631,452         3,548,118            83,334
  300 Purchased Services                                      13,227            12,430               797
  400 Supplies and Materials                                 557,726           533,157            24,569
  600 Other Objects                                            6,475             5,475             1,000
 115 Vocational Programs:
  100 Salaries                                             1,552,906         1,497,799            55,107
  200 Employee Benefits                                      445,412           415,966            29,446
  300 Purchased Services                                       1,740             1,740                 -
  400 Supplies and Materials                                 115,375           111,951             3,424

                                                                                                            53
SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
GENERAL FUND - BUDGETS AND ACTUAL
YEAR ENDED JUNE 30, 2007
                                                                                            VARIANCE
                                                          FINAL                             POSITIVE
                                                         BUDGET           ACTUAL           (NEGATIVE)
EXPENDITURES (CONTINUED):

100 INSTRUCTION (CONTINUED):

110 General Instruction (Continued):

 117 Driver Education Program:
  100 Salaries                                       $     141,961    $     140,934    $         1,027
  200 Employee Benefits                                     36,782           36,423                359
  400 Supplies and Materials                                 3,561            3,447                114

120 Exceptional Programs:

 121 Educable Mentally Handicapped:
  100 Salaries                                             503,190          494,821              8,369
  200 Employee Benefits                                    151,521          140,761             10,760
  400 Supplies and Materials                                 4,654            4,647                  7
 122 Trainable Mentally Handicapped:
  100 Salaries                                             504,189          517,115            (12,926)
  200 Employee Benefits                                    154,340          157,279             (2,939)
  400 Supplies and Materials                                 2,886            2,594                292
 123 Orthopedically Handicapped:
  100 Salaries                                             278,434          258,856             19,578
  200 Employee Benefits                                     91,276           77,347             13,929
  400 Supplies and Materials                                 1,495            1,450                 45
 124 Visually Handicapped:
  100 Salaries                                              79,370           79,464                (94)
  200 Employee Benefits                                     22,166           18,604              3,562
  400 Supplies and Materials                                   450              439                 11
 125 Hearing Handicapped:
  100 Salaries                                             204,299          204,251                 48
  200 Employee Benefits                                     50,634           48,241              2,393
  400 Supplies and Materials                                 2,655            2,477                178
 126 Speech Handicapped:
  100 Salaries                                             747,500          757,431             (9,931)
  200 Employee Benefits                                    214,466          199,174             15,292
  300 Purchased Services                                    98,628           98,498                130
  400 Supplies and Materials                                 9,371            8,911                460
 127 Learning Disabilities:
  100 Salaries                                            3,021,871        2,972,668            49,203
  200 Employee Benefits                                     891,665          810,596            81,069
  400 Supplies and Materials                                 23,120           21,707             1,413
 128 Emotionally Handicapped:
  100 Salaries                                             732,197          666,894             65,303
  200 Employee Benefits                                    241,828          208,581             33,247
  400 Supplies and Materials                                 5,150            4,994                156




                                                                                                          54
SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
GENERAL FUND - BUDGETS AND ACTUAL
YEAR ENDED JUNE 30, 2007
                                                                                                 VARIANCE
                                                                FINAL                            POSITIVE
                                                               BUDGET           ACTUAL          (NEGATIVE)
EXPENDITURES (CONTINUED):

100 INSTRUCTION (CONTINUED):

130 Pre-School Programs:

 135 Pre-School Handicapped-Speech (3 & 4 year olds):
  400 Supplies and Materials                               $         510    $        510    $                -
 136 Pre-School Handicapped-Itinerant (3 & 4 year olds):
  100 Salaries                                                       377            9,427            (9,050)
  200 Employee Benefits                                               75            2,689            (2,614)
  400 Supplies and Materials                                       1,664            1,662                 2
 137 Pre-School Handicapped-Self-Contained:
  100 Salaries                                                   558,942          479,238            79,704
  200 Employee Benefits                                          165,835          148,256            17,579
  400 Supplies and Materials                                       2,415            2,418                (3)
 138 Pre-School Handicapped-Homebased (3 & 4 year olds):
  100 Salaries                                                       268            6,963            (6,695)
  200 Employee Benefits                                               53            2,004            (1,951)
  400 Supplies and Materials                                          63               42                21
 139 Early Childhood Programs:
  100 Salaries                                                   131,558          149,123           (17,565)
  200 Employee Benefits                                           39,677           40,492              (815)

140 Special Programs:

 141 Gifted and Talented-Academic:
  100 Salaries                                                    61,030           60,783              247
  200 Employee Benefits                                           12,052           11,489              563
 143 Advanced Placement:
  100 Salaries                                                   753,555          773,580           (20,025)
  200 Employee Benefits                                          209,057          206,372             2,685
  300 Purchased Services                                           1,500            1,499                 1
  400 Supplies and Materials                                         393              311                82
 145 Homebound:
  100 Salaries                                                    80,384          144,502           (64,118)
  200 Employee Benefits                                           18,921           27,920            (8,999)
  300 Purchased Services                                          13,300           10,966             2,334
 148 Gifted and Talented-Artistic:
  100 Salaries                                                     5,627            5,628                (1)
  200 Employee Benefits                                            1,114            1,102                12
  300 Purchased Services                                           1,625            1,625                 -
 149 Other Special Programs:
  100 Salaries                                                  1,259,237         748,169           511,068
  200 Employee Benefits                                           289,423         163,820           125,603
  400 Supplies and Materials                                          176              56               120
 161 Autism:
  100 Salaries                                                   511,800          485,251            26,549
  200 Employee Benefits                                          164,410          143,172            21,238
  400 Supplies and Materials                                       5,414            5,297               117



                                                                                                                 55
SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
GENERAL FUND - BUDGETS AND ACTUAL
YEAR ENDED JUNE 30, 2007
                                                                                            VARIANCE
                                                          FINAL                             POSITIVE
                                                         BUDGET           ACTUAL           (NEGATIVE)
EXPENDITURES (CONTINUED):

100 INSTRUCTION (CONTINUED):

170 Summer School Program:

 172 Elementary Summer School:
  100 Salaries                                       $        5,000   $            -   $         5,000
  200 Employee Benefits                                         990                -               990
 173 High School Summer School:
  100 Salaries                                              57,956           72,351            (14,395)
  200 Employee Benefits                                     11,470           12,915             (1,445)
  300 Purchased Services                                     1,326              139              1,187
  400 Supplies and Materials                                28,674           22,825              5,849

180 Adult/Continuing Educational Programs:

 181 Adult Basic Education Programs:
  100 Salaries                                              96,480          100,707             (4,227)
  200 Employee Benefits                                     26,137           27,708             (1,571)
 182 Adults Secondary Programs:
  100 Salaries                                                7,500            7,464               36
  200 Employee Benefits                                       1,484              526              958
 188 Parenting/Family Literacy:
  100 Salaries                                              14,974           15,361               (387)
  200 Employee Benefits                                      2,066            2,020                 46
  400 Supplies and Materials                                 6,866            6,866                  -

TOTAL INSTRUCTION                                        76,091,912       74,580,657         1,511,255



200 SUPPORTING SERVICES:

210 Pupil Services:

 211 Attendance and Social Work Services:
  100 Salaries                                             345,016          351,715             (6,699)
  200 Employee Benefits                                    112,157          109,061              3,096
  300 Purchased Services                                     1,940               25              1,915
  400 Supplies and Materials                                 4,140            3,236                904
 212 Guidance Services:
  100 Salaries                                            2,429,276        2,432,152            (2,876)
  200 Employee Benefits                                     685,748          671,916            13,832
  300 Purchased Services                                      1,650            1,600                50
  400 Supplies and Materials                                 23,087           21,780             1,307
 213 Health Services:
  100 Salaries                                            1,265,816        1,234,087            31,729
  200 Employee Benefits                                     365,812          322,569            43,243
  300 Purchased Services                                      3,232            2,581               651
  400 Supplies and Materials                                 22,904           23,058              (154)



                                                                                                          56
SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
GENERAL FUND - BUDGETS AND ACTUAL
YEAR ENDED JUNE 30, 2007
                                                                                                 VARIANCE
                                                               FINAL                             POSITIVE
                                                              BUDGET           ACTUAL           (NEGATIVE)
EXPENDITURES (CONTINUED):

200 SUPPORTING SERVICES (CONTINUED):

210 Pupil Services (Continued):

 214 Psychological Services:
  100 Salaries                                            $     785,334    $     785,253    $            81
  200 Employee Benefits                                         192,324          190,401              1,923
  300 Purchased Services                                          7,250            7,250                  -
  400 Supplies and Materials                                      6,500            6,500                  -
 216 Vocational Placement Services:
  300 Purchased Services                                            401              401                  -
  400 Supplies and Materials                                        602              640                (38)
 217 Career Specialist Services:
  100 Salaries                                                   41,740           46,481             (4,741)
  200 Employee Benefits                                           8,260           12,941             (4,681)
  400 Supplies and Materials                                          -               35                (35)

220 Instructional Staff Services:

 221 Improvement of Instruction-Curriculum Development:
  100 Salaries                                                 2,672,161        2,662,751             9,410
  200 Employee Benefits                                          681,590          644,647            36,943
  300 Purchased Services                                         104,749          107,756            (3,007)
  400 Supplies and Materials                                     174,233          108,559            65,674
  600 Other Objects                                              266,132          260,309             5,823
 222 Library and Media Services:
  100 Salaries                                                 1,754,219        1,752,227             1,992
  200 Employee Benefits                                          535,983          498,147            37,836
  300 Purchased Services                                           2,601            2,451               150
  400 Supplies and Materials                                     559,833          545,291            14,542
 223 Supervision of Special Programs:
  100 Salaries                                                  563,524          555,418              8,106
  200 Employee Benefits                                         144,662          140,058              4,604
  300 Purchased Services                                          3,325            1,401              1,924
  400 Supplies and Materials                                      4,548            3,839                709
 224 Improvement of Instruction-Inservice Training:
  100 Salaries                                                   25,625           20,440              5,185
  200 Employee Benefits                                           5,204            3,746              1,458
  300 Purchased Services                                        100,980           93,789              7,191
  400 Supplies and Materials                                      3,567            3,377                190

230 General Administration Services:

 231 Board of Education:
  100 Salaries                                                   36,250           26,250             10,000
  200 Employee Benefits                                           7,130            3,317              3,813
  300 Purchased Services                                        175,068          164,907             10,161
  318 Audit Services                                             25,400           25,400                  -
  600 Other Objects                                             349,041          349,018                 23

                                                                                                               57
SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
GENERAL FUND - BUDGETS AND ACTUAL
YEAR ENDED JUNE 30, 2007
                                                                                            VARIANCE
                                                          FINAL                             POSITIVE
                                                         BUDGET           ACTUAL           (NEGATIVE)
EXPENDITURES (CONTINUED):

200 SUPPORTING SERVICES (CONTINUED):

230 General Administration Services (Continued):

 232 Office of the Superintendent:
  100 Salaries                                       $     215,804    $     215,504    $           300
  200 Employee Benefits                                     73,698           66,490              7,208
  300 Purchased Services                                    12,000           13,511             (1,511)
  400 Supplies and Materials                                15,011           14,907                104
  600 Other Objects                                         12,342           13,484             (1,142)
 233 School Administration:
  100 Salaries                                            6,558,638        6,576,242           (17,604)
  200 Employee Benefits                                   1,864,210        1,796,897            67,313
  300 Purchased Services                                    202,963          195,316             7,647
  400 Supplies and Materials                                203,884          191,925            11,959
  500 Capital Outlay                                          4,260            3,820               440
  600 Other Objects                                          48,778           37,178            11,600

250 Finance and Operations Services:

 252 Fiscal Services:
  100 Salaries                                             722,277          731,135             (8,858)
  200 Employee Benefits                                    205,829          198,711              7,118
  300 Purchased Services                                    46,082           23,833             22,249
  400 Supplies and Materials                                60,210           58,672              1,538
  600 Other Objects                                          2,743            2,529                214
 254 Operation and Maintenance of Plant:
  100 Salaries                                            5,090,986        4,896,628           194,358
  200 Employee Benefits                                   1,793,064        1,648,808           144,256
  300 Purchased Services                                  2,921,857        2,836,255            85,602
  400 Supplies and Materials                              3,011,852        3,004,480             7,372
  500 Capital Outlay                                          5,638            6,241              (603)
  600 Other Objects                                          40,000           13,286            26,714
 255 Student Transportation:
  100 Salaries                                            2,353,683        2,153,083           200,600
  200 Employee Benefits                                     901,249          781,262           119,987
  300 Purchased Services                                    102,372           84,631            17,741
  400 Supplies and Materials                                 32,031           26,311             5,720
  600 Other Objects                                             175                -               175
 257 Internal Services:
  100 Salaries                                             351,719          354,162             (2,443)
  200 Employee Benefits                                     98,350           95,340              3,010
  300 Purchased Services                                   605,612          569,927             35,685
  400 Supplies and Materials                                40,000           41,995             (1,995)
 258 Security:
  100 Salaries                                              24,893           19,532              5,361
  200 Employee Benefits                                      4,926            5,307               (381)
  300 Purchased Services                                   506,539          455,097             51,442
  400 Supplies and Materials                                 5,093            4,948                145

                                                                                                          58
SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
GENERAL FUND - BUDGETS AND ACTUAL
YEAR ENDED JUNE 30, 2007
                                                                                                VARIANCE
                                                              FINAL                             POSITIVE
                                                             BUDGET           ACTUAL           (NEGATIVE)
EXPENDITURES (CONTINUED):

200 SUPPORTING SERVICES (CONTINUED):

260 Central Support Services:

 263 Information Services:
  100 Salaries                                           $     228,524    $     229,346    $          (822)
  200 Employee Benefits                                         55,921           53,541              2,380
  300 Purchased Services                                        24,297           24,571               (274)
  400 Supplies and Materials                                     7,720            5,361              2,359
  600 Other Objects                                                452            7,240             (6,788)
 264 Staff Services:
  100 Salaries                                                 429,818          428,513              1,305
  200 Employee Benefits                                        162,152          161,199                953
  300 Purchased Services                                        39,737           33,222              6,515
  400 Supplies and Materials                                    38,685           33,504              5,181
  600 Other Objects                                                300              507               (207)
 266 Technology and Data Processing Services:
  100 Salaries                                                 889,749          878,748             11,001
  200 Employee Benefits                                        236,342          224,112             12,230
  300 Purchased Services                                       192,003          119,436             72,567
  400 Supplies and Materials                                    96,993           69,786             27,207

270 Support Services Pupil Activity

 271 Pupil Services Activities:
  300 Purchased Services                                              -               14               (14)
  600 Other Objects                                           2,378,152        2,355,007            23,145

Current Expenditures                                         47,408,729       45,948,273         1,460,896

Capital Outlay                                                    9,898          10,061               (603)

TOTAL SUPPORTING SERVICES                                    47,418,627       45,958,334         1,460,293

400 INTERGOVERNMENTAL EXPENDITURES:

  411 Payments to the State Department of Education:
   720 Transits                                                 33,000           35,228             (2,228)

  412 Payments to Other Governmental Units:
   720 Transits                                                229,741          198,464             31,277

  415 Payments to Nonprofit Entities(for First Steps):
   720 Transits                                                   3,200                -             3,200

TOTAL INTERGOVERNMENTAL EXPENDITURES                           265,941          233,692             32,249




                                                                                                              59
SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
GENERAL FUND - BUDGETS AND ACTUAL
YEAR ENDED JUNE 30, 2007
                                                                                                VARIANCE
                                                          FINAL                                 POSITIVE
                                                         BUDGET             ACTUAL             (NEGATIVE)
EXPENDITURES (CONTINUED):

500 DEBT SERVICE:
  690 Other Fees                                     $         8,000    $             -    $         8,000

TOTAL DEBT SERVICE                                             8,000                  -              8,000

TOTAL EXPENDITURES                                       123,784,480        120,772,683          (3,011,797)

OTHER FINANCING SOURCES (USES):

Interfund Transfers, From (To) Other Funds:

 5230 Transfer from Special Revenue EIA                    2,644,236          2,988,644            344,408
 5250 Transfer from School Building Fund                     177,120          1,297,178          1,120,058
 5280 Transfers from Other Funds Indirect Costs              300,000            630,104            330,104
 5300 Sale of Capital Assets                                   5,000              1,222             (3,778)
 420-710 Transfer to General Fund                           (401,638)                 -            401,638
 421-710 Transfer to Special Revenue Funds                  (112,430)          (131,873)           (19,443)
 423-710 Transfer to Debt Service Fund                    (3,000,000)        (3,000,000)                 -
 425-710 Transfer to Food Service Fund                      (490,257)          (421,065)            69,192

TOTAL OTHER FINANCING SOURCES (USES)                        (877,969)         1,364,210          2,242,179

Excess of Revenues over Expenditures                 $             -          6,527,876    $     6,527,876

FUND BALANCE, JULY 1, 2006                                                   16,054,248

FUND BALANCE, JUNE 30, 2007                                             $    22,582,124




                                                                                                               60
                   SPECIAL REVENUE FUNDS
The Special Revenue Funds account for the proceeds of specific revenue sources (other than
expandable trusts or major capital projects) that are legally restricted to expenditures for speci-
fied purposes. The School District has the following Special Revenue Funds:

    1) The Special Projects Fund consists of multiple special revenue funds used to account for all
       federal, state and local projects and grants except for those subject to EIA.
   2) The Education Improvement Act (EIA) Fund was passed in 1984 by the State Legislature
      to upgrade the quality of education in South Carolina. The fund accounts for the proceeds
      of the additional one percent Sales and Use Tax which is restricted to expenditures for the
      Education Improvement Act standards. Because of the categorical nature of the funding,
      the state requires that revenues and expenditures be accounted for in a separate fund.
      Accordingly, the EIA Fund is reported as a Special Revenue Fund.

The following schedules for the Special Revenue Funds have been prepared in the format man-
dated by the South Carolina Department of Education. The account numbers shown on the
schedules are also mandated by the S.C. Department of Education.
 SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
 COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
 SPECIAL REVENUE FUND - SPECIAL PROJECTS FUND
 YEAR ENDED JUNE 30, 2007

                                                                                             PRESCHOOL       OCCUPATIONAL                                          OTHER           OTHER
                                                               TITLE I          IDEA        HANDICAPPED       EDUCATION         DRUG FREE          ADULT         RESTRICTED       SPECIAL
                                                            (BA Projects)   (CA Projects)    (CG Projects)    (VA Projects)   (FP/FQ Projects)   EDUCATION          STATE         REVENUE
                                                              (201/202)       (203/204)        (205/206)        (207/208)        (209/210)       (EA Projects)     GRANTS        PROGRAMS          TOTAL
 REVENUES:

 1000 Revenue from Local Sources:

 1900 Other Revenue From Local Sources:
  1920 Contributions and Donations Private Sources          $           -   $           -   $            -   $            -   $              -   $           -   $           -   $   144,817   $    144,817
   1930 Medicaid                                                        -               -                -                -                  -               -               -       417,085        417,085
   1990 Miscellaneous Revenue                                           -               -                -                -                  -               -               -         1,022          1,022

 Total Local Sources                                                    -               -                -                -                  -               -               -       562,924        562,924

 3000 Revenue from State Sources:

 3100 Restricted Grants:
  3118 EEDA Career Specialist                                           -               -                -                -                  -               -        154,767              -        154,767
 3120 General Education:
  3126 Refurbishment of K-8 Science Kits                                -               -                -                -                  -               -         69,629              -         69,629
  3127 Student Health and Fitness                                       -               -                -                -                  -               -          1,231              -          1,231
 3150 Adult Education:
  3154 Young Adult Education                                            -               -                -                -                  -               -         20,332              -         20,332
 3190 Miscellaneous Restricted State Grants:
  3193 Education License Plate                                          -               -                -                -                  -               -            614              -            614
  3195 High School Reading Initiative                                   -               -                -                -                  -               -         27,001              -         27,001
  3199 Other Restricted State Grants                                    -               -                -                -                  -               -              -          8,442          8,442
 3600 Education Lottery Act Revenue:
  3607 6-8 Enhancement                                                  -               -                -                -                  -               -          42,188             -          42,188
  3610 K - 5 Enhancement                                                -               -                -                -                  -               -       1,428,188             -       1,428,188
 3990 Other State Revenue:
  3991 ADEPT                                                            -               -                -                -                  -               -         34,052              -         34,052
  3999 Other State Revenue                                              -               -                -                -                  -               -              -          9,947          9,947

 Total State Sources                                                    -               -                -                -                  -               -       1,778,002        18,389       1,796,391

 4000 Revenue from Federal Sources:

 4200 Occupational Education:
  4210 Vocational Aid                                                   -               -                -          147,471                  -               -               -             -        147,471
 4300 Elementary and Secondary Education Act of 1965:
  4310 Title I                                                  1,162,915               -                -                -                  -               -               -             -       1,162,915
  4331 Enhancing Education Through Technology, Title II                 -               -                -                -                  -               -               -         4,150           4,150
   4340 Title VI                                                        -               -                -                -                  -               -               -        18,870          18,870
  4341 Language Instruction for Limited English, Title II               -               -                -                -                  -               -               -        28,353          28,353
  4351 Improving Teacher Quality                                        -               -                -                -                  -               -               -       301,533         301,533
 4400 Adult Education:                                                                                                                                                                     -
  4410 Basic                                                            -               -                -                -                  -         93,780                -             -         93,780
 4500 Programs for Children with Disabilities:
  4510 IDEA                                                             -       2,953,606                -                -                  -               -               -        21,931       2,975,537
  4520 Pre-School                                                       -               -          144,348                -                  -               -               -                       144,348




61
 SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
 COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
 SPECIAL REVENUE FUND - SPECIAL PROJECTS FUND
 YEAR ENDED JUNE 30, 2007

                                                                                     PRESCHOOL       OCCUPATIONAL                                          OTHER           OTHER
                                                       TITLE I          IDEA        HANDICAPPED       EDUCATION         DRUG FREE          ADULT         RESTRICTED       SPECIAL
                                                    (BA Projects)   (CA Projects)    (CG Projects)    (VA Projects)   (FP/FQ Projects)   EDUCATION          STATE         REVENUE
                                                      (201/202)       (203/204)        (205/206)        (207/208)        (209/210)       (EA Projects)     GRANTS        PROGRAMS         TOTAL
 REVENUES (CONTINUED):

 4000 Revenue from Federal Sources (Continued):

 4900 Other Federal Sources:
  4920 Drug and Violence Prevention                 $           -   $           -   $            -   $            -   $        47,364    $           -   $           -                $      47,364
  4999 Revenue from Other Federal Sources                       -               -                -                -                 -                -               -    1,426,570       1,426,570

 Total Federal Sources                                  1,162,915       2,953,606          144,348          147,471            47,364          93,780                -    1,801,407       6,350,891

 TOTAL REVENUE ALL SOURCES                              1,162,915       2,953,606          144,348          147,471            47,364          93,780        1,778,002    2,382,720       8,710,206



 EXPENDITURES:

 100 INSTRUCTION:

 111 Kindergarten Programs:
   300 Purchased Services                                       -               -                -                -                  -               -               -         333             333
   400 Supplies and Materials                                   -               -                -                -                  -               -               -         725             725
 112 Primary Programs:
   100 Salaries                                          480,245         124,775                 -                -                  -               -              -         1,733        606,753
   200 Employee Benefits                                 132,264          26,726                 -                -                  -               -              -           337        159,327
   300 Purchased Services                                  8,449               -                 -                -                  -               -              -         3,754         12,203
   400 Supplies and Materials                            133,873           4,817                 -                -                  -               -         53,431         3,017        195,138
 113 Elementary Programs:
   100 Salaries                                          128,898                -                -                -                  -               -        114,327         2,100        245,325
   200 Employee Benefits                                  35,792                -                -                -                  -               -         33,739           397         69,928
   300 Purchased Services                                     16                -                -                -                  -               -              -        13,436         13,452
   400 Supplies and Materials                            114,932                -                -                -                  -               -         16,198         6,352        137,482
 114 High School Programs:
   100 Salaries                                                 -               -                -                -                  -               -              -       163,655        163,655
   200 Employee Benefits                                        -               -                -                -                  -               -              -         1,081          1,081
   300 Purchased Services                                       -               -                -                -                  -               -              -        20,977         20,977
   400 Supplies and Materials                                   -               -                -                -                  -               -          8,041        53,791         61,832
 115 Vocational Programs:
   400 Supplies and Materials                                   -               -                -           79,623                  -               -               -            -         79,623

 120 Exceptional Programs:

 121 Educable Mentally Handicapped:
   100 Salaries                                                 -        104,990                 -                -                  -               -               -            -        104,990
   200 Employee Benefits                                        -         33,388                 -                -                  -               -               -            -         33,388
   300 Purchased Services                                       -            950                 -                -                  -               -               -            -            950
   400 Supplies and Materials                                   -          6,403                 -                -                  -               -               -            -          6,403
   500 Capital Outlay                                           -              -                 -                -                  -               -               -       19,395         19,395




62
 SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
 COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
 SPECIAL REVENUE FUND - SPECIAL PROJECTS FUND
 YEAR ENDED JUNE 30, 2007

                                                                                           PRESCHOOL       OCCUPATIONAL                                          OTHER        OTHER
                                                             TITLE I          IDEA        HANDICAPPED       EDUCATION         DRUG FREE          ADULT         RESTRICTED    SPECIAL
                                                          (BA Projects)   (CA Projects)    (CG Projects)    (VA Projects)   (FP/FQ Projects)   EDUCATION          STATE      REVENUE
                                                            (201/202)       (203/204)        (205/206)        (207/208)        (209/210)       (EA Projects)     GRANTS     PROGRAMS         TOTAL
 EXPENDITURES (CONTINUED):

 100 INSTRUCTION (CONTINUED):

 120 Exceptional Programs (Continued):

 122 Trainable Mentally Handicapped:
   100 Salaries                                           $           -   $     33,482    $            -   $            -   $              -   $           -   $        -   $    2,600   $     36,082
   200 Employee Benefits                                              -          8,250                 -                -                  -               -            -          621          8,871
   400 Supplies and Materials                                         -            905                 -                -                  -               -            -            -            905
 123 Orthopedically Handicapped:
   100 Salaries                                                       -         46,601                 -                -                  -               -            -            -         46,601
   200 Employee Benefits                                              -         11,355                 -                -                  -               -            -            -         11,355
   400 Supplies and Materials                                         -          1,730                 -                -                  -               -            -            -          1,730
 124 Visually Handicapped:
   300 Purchased Services                                             -         59,808                 -                -                  -               -            -            -         59,808
   400 Supplies and Materials                                         -          2,466                 -                -                  -               -            -        1,000          3,466
   500 Capital Outlay                                                            8,513                                                                                               -          8,513
 125 Hearing Handicapped:
   100 Salaries                                                       -         68,770                 -                -                  -               -            -            -         68,770
   200 Employee Benefits                                              -         20,009                 -                -                  -               -            -            -         20,009
   300 Purchased Services                                             -          3,970                 -                -                  -               -            -            -          3,970
   400 Supplies and Materials                                         -          5,779                 -                -                  -               -            -            -          5,779
 126 Speech Handicapped:
   100 Salaries                                                       -        298,016                 -                -                  -               -            -       48,432        346,448
   200 Employee Benefits                                              -         78,287                 -                -                  -               -            -       10,594         88,881
   300 Purchased Services                                             -         42,418                 -                -                  -               -            -       18,368         60,786
   400 Supplies and Materials                                         -         11,717                 -                -                  -               -            -            -         11,717
 127 Learning Disabilities:
   100 Salaries                                                       -        376,850                 -                -                  -               -            -            -        376,850
   200 Employee Benefits                                              -        103,161                 -                -                  -               -            -            -        103,161
   400 Supplies and Materials                                         -         35,340                 -                -                  -               -            -            -         35,340
 128 Emotionally Handicapped:                                                                                                                                                        -
   100 Salaries                                                       -        103,461                 -                -                  -               -            -        2,200        105,661
   200 Employee Benefits                                              -         32,081                 -                -                  -               -            -          181         32,262
   300 Purchased Services                                             -            901                 -                -                  -               -            -            -            901
   400 Supplies and Materials                                         -          5,123                 -                -                  -               -            -            -          5,123

 130 Pre-School Programs:

 133 Preschool Handicapped Self-Contained (5 Yr. Olds):
    100 Salaries                                                      -               -           23,302                -                  -               -            -            -         23,302
   200 Employee Benefits                                              -               -            6,330                -                  -               -            -            -          6,330
 135 Preschool Handicapped Speech (3&4 Yr Olds):
   100 Salaries                                                       -               -           68,819                -                  -               -            -            -         68,819
   200 Employee Benefits                                              -               -           17,271                -                  -               -            -            -         17,271




63
 SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
 COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
 SPECIAL REVENUE FUND - SPECIAL PROJECTS FUND
 YEAR ENDED JUNE 30, 2007

                                                                                             PRESCHOOL       OCCUPATIONAL                                          OTHER        OTHER
                                                               TITLE I          IDEA        HANDICAPPED       EDUCATION         DRUG FREE          ADULT         RESTRICTED    SPECIAL
                                                            (BA Projects)   (CA Projects)    (CG Projects)    (VA Projects)   (FP/FQ Projects)   EDUCATION          STATE      REVENUE
                                                              (201/202)       (203/204)        (205/206)        (207/208)        (209/210)       (EA Projects)     GRANTS     PROGRAMS         TOTAL
 EXPENDITURES (CONTINUED):

 100 INSTRUCTION (CONTINUED):

 130 Pre-School Programs (Continued):

 137 Preschool Handicapped Self-Contained (3&4 Yr. Olds):
   100 Salaries                                             $           -   $    138,445    $       21,027   $            -   $              -   $           -   $        -   $        -   $    159,472
   200 Employee Benefits                                                -         29,277             4,161                -                  -               -            -            -         33,438
   300 Purchased Services                                               -            248                 -                -                  -               -            -            -            248
   400 Supplies and Materials                                           -         22,700                 -                -                  -               -            -            -         22,700
 139 Early Childhood Programs:
   100 Salaries                                                         -               -                -                -                  -               -            -        1,275          1,275
   200 Employee Benefits                                                -               -                -                -                  -               -            -          249            249

 140 Special Programs:

 149 Other Special Programs:
   400 Supplies and Materials                                           -               -                -                -                  -               -            -       17,931         17,931
 151 Districtwide General:
   400 Supplies and Materials                                           -               -                -                -                  -               -          614            -           614

 160 Other Exceptional Programs:

 161 Autism:
   100 Salaries                                                         -        148,976                 -                -                  -               -            -       73,662        222,638
   200 Employee Benefits                                                -         38,682                 -                -                  -               -            -       26,385         65,067
   400 Supplies and Materials                                           -         16,340                 -                -                  -               -            -            -         16,340

 170 Summer School Programs:

 172 Elementary Summer School:
   300 Purchased Services                                          2,616                -                -                -                  -               -            -            -          2,616
 175 Instructional Programs Beyond Regular School Day:
   100 Salaries                                                         -               -                -                -                 -                -            -          420            420
   200 Employee Benefits                                                -               -                -                -                 -                -            -           82             82
   300 Purchased Services                                               -               -                -                -             4,000                -            -          225          4,225
   400 Supplies and Materials                                           -               -                -                -                 -                -            -        3,588          3,588




64
 SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
 COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
 SPECIAL REVENUE FUND - SPECIAL PROJECTS FUND
 YEAR ENDED JUNE 30, 2007

                                                                                     PRESCHOOL       OCCUPATIONAL                                          OTHER         OTHER
                                                       TITLE I          IDEA        HANDICAPPED       EDUCATION         DRUG FREE          ADULT         RESTRICTED     SPECIAL
                                                    (BA Projects)   (CA Projects)    (CG Projects)    (VA Projects)   (FP/FQ Projects)   EDUCATION          STATE       REVENUE
                                                      (201/202)       (203/204)        (205/206)        (207/208)        (209/210)       (EA Projects)     GRANTS      PROGRAMS          TOTAL
 EXPENDITURES (CONTINUED):

 100 INSTRUCTION (CONTINUED):

 180 Adult/Continuing Educational Programs:

 181 Adult Basic Programs:
   100 Salaries                                     $           -   $           -   $            -   $            -   $              -   $      9,200    $         -   $         -   $      9,200
   200 Employee Benefits                                        -               -                -                -                  -          1,794              -             -          1,794
 182 Adult Secondary Programs:
   100 Salaries                                                 -               -                -                -                  -         56,000         12,709        33,129        101,838
   200 Employee Benefits                                        -               -                -                -                  -         11,037          2,281         6,127         19,445
   300 Purchased Services                                       -               -                -                -                  -          5,749          2,991         4,154         12,894
   400 Supplies and Materials                                   -               -                -                -                  -              -              -        12,164         12,164
 183 Adult English Literacy (ESL):
   100 Salaries                                                 -               -                -                -                  -          8,675              -             -          8,675
   200 Employee Benefits                                        -               -                -                -                  -          1,325              -             -          1,325
 188 Parenting/Family Literacy:
   100 Salaries                                                 -               -                -                -                  -               -             -        82,365         82,365
   200 Employee Benefits                                        -               -                -                -                  -               -             -        24,633         24,633
   300 Purchased Services                                       -               -                -                -                  -               -             -         4,319          4,319
   400 Supplies and Materials                                   -               -                -                -                  -               -             -        14,477         14,477

 Current Expenditures                                   1,037,085       2,047,197          140,910           79,623             4,000          93,780        244,331       660,869       4,307,795

 Capital Outlay                                                 -          8,513                 -                -                  -               -             -        19,395         27,908

 TOTAL INSTRUCTION                                      1,037,085       2,055,710          140,910           79,623             4,000          93,780        244,331       680,264       4,335,703

 200 SUPPORT SERVICES:

 210 Pupil Services:

 211 Attendance and Social Work:
   100 Salaries                                                 -               -                -                -            11,973                -             -       208,996        220,969
   200 Employee Benefits                                        -               -                -                -             2,322                -             -        53,763         56,085
   300 Purchased Services                                       -               -                -                -             1,763                -             -        65,182         66,945
   400 Supplies and Materials                                   -               -                -                -               440                -             -         4,847          5,287
 212 Guidance:
   100 Salaries                                                 -               -                -                -                                  -             -          375             375
   200 Employee Benefits                                        -               -                -                -                                  -             -           74              74
   300 Purchased Services                                       -               -                -                -                                  -             -          115             115
   400 Supplies and Materials                                   -               -                -           10,000                  -               -             -            -          10,000




65
 SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
 COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
 SPECIAL REVENUE FUND - SPECIAL PROJECTS FUND
 YEAR ENDED JUNE 30, 2007

                                                                                             PRESCHOOL       OCCUPATIONAL                                          OTHER         OTHER
                                                               TITLE I          IDEA        HANDICAPPED       EDUCATION         DRUG FREE          ADULT         RESTRICTED     SPECIAL
                                                            (BA Projects)   (CA Projects)    (CG Projects)    (VA Projects)   (FP/FQ Projects)   EDUCATION          STATE       REVENUE
                                                              (201/202)       (203/204)        (205/206)        (207/208)        (209/210)       (EA Projects)     GRANTS      PROGRAMS          TOTAL
 EXPENDITURES (CONTINUED):

 200 SUPPORT SERVICES (CONTINUED):

 210 Pupil Services (Continued):

 213 Health:
   100 Salaries                                             $           -   $     55,315    $            -   $            -   $              -   $           -   $         -   $    40,612   $     95,927
   200 Employee Benefits                                                -         10,955                 -                -                  -               -             -         8,026         18,981
   300 Purchased Services                                               -          2,788                 -                -                  -               -             -         3,817          6,605
   400 Supplies and Materials                                           -         23,218                 -                -                  -               -             -        10,968         34,186
 214 Psychological:
   100 Salaries                                                         -        294,705                 -                -                  -               -             -             -        294,705
   200 Employee Benefits                                                -         70,583                 -                -                  -               -             -             -         70,583
   300 Purchased Services                                               -         52,504                 -                -                  -               -             -        12,939         65,443
   400 Supplies and Materials                                           -         20,781                 -                -                  -               -             -             -         20,781
 217 Career Specialist Services:
   100 Salaries                                                         -                                -                -                  -               -       120,779             -        120,779
   200 Employee Benefits                                                -                                -                -                  -               -        33,988             -         33,988

 220 Instructional Staff Services:

 221 Improvement of Instruction - Curriculum Development:
   100 Salaries                                                    4,850          11,280                 -                -                 -                -       983,433        73,810       1,073,373
   200 Employee Benefits                                             945           1,806                 -                -                 -                -       273,985        19,168         295,904
   300 Purchased Services                                              -          47,894                 -                -            15,000                -            16         3,114          66,024
   400 Supplies and Materials                                          -          22,439                 -                -                 -                -        10,065         2,602          35,106
 222 Library and Media:
   400 Supplies and Materials                                           -                                -                -                  -               -             -        18,145         18,145
 223 Supervision of Special Programs:
   100 Salaries                                                   55,011         127,690                 -                -                  -               -        34,271       293,911        510,883
   200 Employee Benefits                                          14,727          31,471                 -                -                  -               -         8,126        74,501        128,825
   300 Purchased Services                                         13,588           7,277                 -                -                  -               -         3,711        77,040        101,616
   400 Supplies and Materials                                          -           9,615                 -                -                  -               -        32,851        29,894         72,360
   500 Capital Outlay                                                  -               -                 -                -                  -               -             -        53,783         53,783
 224 Improvement of Instruction-Inservice Training:
   100 Salaries                                                         -          2,800                 -                -                  -               -        22,210        28,074         53,084
   200 Employee Benefits                                                -            285                 -                -                  -               -         4,315         5,449         10,049
   300 Purchased Services                                               -          3,351                 -           38,350                  -               -         5,813       124,149        171,663
   400 Supplies and Materials                                           -              -                 -                -                                  -             -        60,335         60,335

 230 General Administration Services:

 233 School Administration:
   100 Salaries                                                         -               -                -                -                  -               -             -        12,023         12,023
   200 Employee Benefits                                                -               -                -                -                  -               -             -         2,380          2,380
   300 Purchased Services                                               -               -                -            4,000                                  -             -         1,114          5,114
   400 Supplies and Materials                                           -               -                -            3,348                  -               -             -         1,868          5,216




66
 SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
 COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
 SPECIAL REVENUE FUND - SPECIAL PROJECTS FUND
 YEAR ENDED JUNE 30, 2007

                                                                                     PRESCHOOL       OCCUPATIONAL                                          OTHER           OTHER
                                                       TITLE I          IDEA        HANDICAPPED       EDUCATION         DRUG FREE          ADULT         RESTRICTED       SPECIAL
                                                    (BA Projects)   (CA Projects)    (CG Projects)    (VA Projects)   (FP/FQ Projects)   EDUCATION          STATE         REVENUE
                                                      (201/202)       (203/204)        (205/206)        (207/208)        (209/210)       (EA Projects)     GRANTS        PROGRAMS            TOTAL
 EXPENDITURES (CONTINUED):

 200 SUPPORT SERVICES (CONTINUED):

 250 Finance and Operations Services:

 251 Student Transportation:
   100 Salaries                                     $           -   $          -    $            -   $            -   $              -   $           -   $           -   $        286    $        286
   200 Employee Benefits                                        -              -                 -                -                  -               -               -             71              71
   300 Purchased Services                                       -         16,584                 -                -                  -               -               -          8,953          25,537
 252 Fiscal Services:
   100 Salaries                                                 -               -                -                -                  -               -                          1,741           1,741
   200 Employee Benefits                                        -               -                -                -                  -               -                            344             344
 254 Operation and Maintenance of Plant:
   400 Supplies and Materials                                   -               -                -                -                  -               -               -          1,329           1,329
 257 Internal Services:
   300 Purchased Services                                       -               -                -                -                  -               -                         10,004          10,004

 260 Central Support Services:

 266 Technology and Data Processing Services:
   300 Purchased Services                                       -               -                -                -                  -               -                         50,834          50,834

 270 Support Services - Pupil Activity:                         -               -                -                -                  -               -               -                               -

 271 Pupil Service Activities:
   300 Purchased Services                                  3,167               9                 -           12,150               500                -            108           1,534          17,468
   400 Supplies and Materials                                  -               -                 -                -                 -                -              -             567             567

 Current Expenditures                                     92,288         813,350                 -           67,848            31,998                -       1,533,671       1,312,954       3,852,109

 Capital Outlay                                                 -               -                -                -                  -               -               -         53,783          53,783

 TOTAL SUPPORT SERVICES                                   92,288         813,350                 -           67,848            31,998                -       1,533,671       1,366,737       3,905,892

 300 COMMUNITY SERVICES:

 390 Other Community Services:
   300 Purchased Services                                                                                                      10,000                                               -          10,000
   400 Supplies and Materials                                   -               -                -                -                 -                -               -          3,342           3,342

 TOTAL COMMUNITY SERVICES                                       -               -                -                -            10,000                -               -          3,342          13,342




67
 SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
 COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
 SPECIAL REVENUE FUND - SPECIAL PROJECTS FUND
 YEAR ENDED JUNE 30, 2007

                                                                                       PRESCHOOL        OCCUPATIONAL                                           OTHER           OTHER
                                                       TITLE I           IDEA         HANDICAPPED        EDUCATION         DRUG FREE           ADULT         RESTRICTED       SPECIAL
                                                    (BA Projects)    (CA Projects)     (CG Projects)     (VA Projects)   (FP/FQ Projects)    EDUCATION          STATE         REVENUE
                                                      (201/202)        (203/204)         (205/206)         (207/208)        (209/210)        (EA Projects)     GRANTS        PROGRAMS             TOTAL
 EXPENDITURES (CONTINUED):

 410 INTERGOVERNMENTAL EXPENDITURES:

 412 Payments to Other Governmental Units:
   720 Transits                                     $           -    $           -    $            -    $            -   $              -    $           -   $           -   $    291,526     $    291,526

 TOTAL INTERGOVERNMENTAL EXPENDITURES                           -                -                 -                 -                  -                -               -        291,526          291,526

 TOTAL EXPENDITURES                                     1,129,373        2,869,060           140,910           147,471            45,998           93,780        1,778,002       2,341,869        8,546,463

 OTHER FINANCING SOURCES (USES):

 431-791 Special Revenue Fund Indirect Cost               (33,542)         (84,546)           (3,438)                -             (1,366)               -                         (40,851)        (163,743)

 TOTAL OTHER FINANCING SOURCES (USES)                     (33,542)         (84,546)           (3,438)                -             (1,366)               -               -         (40,851)        (163,743)

 Excess/Deficiency of Revenues over Expenditures                -                -                 -                 -                  -                -               -               -                -

 FUND BALANCE, JULY 1, 2006                                     -                -                 -                 -                  -                -               -               -                -

 FUND BALANCE, JUNE 30, 2007                                    -                -                 -                 -                  -                -               -               -                -




68
SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
SUMMARY SCHEDULE FOR ADULT EDUCATION, OTHER RESTRICTED
STATE GRANTS AND OTHER SPECIAL PROJECTS PROGRAMS
SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2007
                                                                                                                                             OTHER STATE

                                                                                                                                              RESTRICTED
                                                                                                                                                GRANTS
                     REVENUE                                                                                                                   DEFERRED
 SUBFUND              CODE                                 PROGRAM                                    REVENUE          EXPENDITURES            REVENUE

Other Restricted
State Grants

    927                3117          8TH Grade Awareness                                          $             -       $             -       $       10,017
    928                3118          EEDA Career Specialist                                              154,767               154,767                 4,493
    908                3126          Refurbishment of K-8 Science Kits                                    69,629                69,629                     -
    937                3127          Student Health and Fitness                                            1,231                 1,231                68,490
    920                3154          Young Adult Education                                                20,332                20,332                33,436
    919                3193          Education License Plate                                                 614                   614                 4,620
    945                3195          High School Reading Initiative                                       27,001                27,001                   999
    967                3607          6-8 Enhancement                                                      42,188                42,188                   789
    960                3610          K - 5 Enhancement                                                 1,428,188             1,428,188                 7,595
    916                3991          ADEPT                                                                34,052                34,052                20,535

                                      Total                                                            1,778,002             1,778,002        $      150,974

Other Special
Revenue Programs

    Miscellaneous*     1920          Donations from Private Sources                                      144,817               144,817
    890                1930          Medicaid                                                            417,085               417,085
    813/816            1990          Miscellaneous Local Revenue                                           1,022                 1,022
    812                3199          ESY Handicap                                                            970                   970
    834                3199          Profoundly Mentally Handicapped                                       3,221                 3,221
    843                3199          SAT/ACT Improvement                                                   4,251                 4,251
    835                3999          Graduation Rate Study                                                 2,063                 2,063
    841                3999          SC Arts Commission                                                    3,984                 3,984
    869                3999          DHEC Recycling                                                        2,400                 2,400
    896                3999          SC Arts Commission                                                    1,500                 1,500
    253                4331          Enhancing Ed Thru Tech - Title II                                     4,150                 4,150
    241                4340          Title VI                                                             18,870                18,870
    264                4341          Language Instruction, English, Title II                              28,353                28,353
    267                4351          Improving Teacher Quality                                           301,533               301,533
    213                4510          IDEA - Personnel Dev                                                 21,931                21,931
    805                4999          Attendance Improvement Mediation                                     46,327                46,327
    825                4999          US Fish & Wildlife Environment Study                                    143                   143
    831                4999          CHS NJROTC                                                           54,488                54,488
    832                4999          IHS, DFHS AFJROTC                                                   127,112               127,112
    845                4999          Workforce Investment Grant                                           63,888                63,888
    846                4999          Smaller Learning Communities                                        126,465               126,465
    857                4999          Drug Free Communities                                               102,448               102,448
    859                4999          Safe Schools/Healthy Students                                       710,300               710,300
    892                4999          Emergency Response & Crisis                                          56,050                56,050
    893                4999          Drug Free Communities                                                18,741                18,741
    894                4999          Emergency Response Plans for School Safety Initiative               120,608               120,608

                                     Total                                                        $    2,382,720        $    2,382,720



* Line item labeled Miscellaneous includes the following fund numbers: 801, 802, 804, 806, 807, 814, 828, 838, 839, 841, 842, 848, 849, 866, 868, 870, 885,
and 895.




                                                                                                                                                               69
SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - ALL PROGRAMS
SPECIAL REVENUE FUND - EDUCATION IMPROVEMENT ACT
YEAR ENDED JUNE 30, 2007

                                                                            TOTAL
REVENUES:

3000 Revenue from State Sources:

3100 Restricted State Funding:
  3161 EAA Bus Driver Salary and Fringe                                 $         11,316

3500 Education Improvement Act:
  3501 Increase High School Diploma Requirements                                  588,622
  3505 School Technology Initiative                                                23,293
  3509 Arts in Education                                                            8,220
  3513 Parenting/Family Literacy                                                   62,848
  3515 Advanced Placement Courses                                                  51,730
  3517 Advanced Placement - Singleton (Subfund 315)                                 5,508
  3520 Gifted and Talented - Academic                                           1,230,830
  3522 Gifted and Talented - Artistic                                              78,184
  3523 Junior Scholars Program                                                      1,814
  3525 Career and Technology Education Equipment                                  166,207
Equipment:
  3527 Critical Teaching Needs                                                     6,177
  3530 Profoundly & Trainable Handicapped Services                                54,058
Disabled Student Services:
  3532 National Board Certification                                             2,215,417
  3533 Teacher of the Year Awards                                                   1,077
  3534 Professional Development on Standards                                       68,703
  3535 Governor's Institute of Reading                                             59,124
  3540 Four-Year Old Early Childhood                                              233,913
Four-Year Old Children:
  3542 Preschool Program for Children with Disabilities                           114,536
  3546 Academic Assistance K-3                                                    731,609
  3548 Academic Assistance 4-12                                                   534,907
  3549 Academic Assistance Reading Recovery                                       204,696
  3550 Teacher Salary Increase                                                  2,507,252
  3553 Adult Education-Remedial                                                     1,679
  3555 School Employer Contributions                                              481,392
Carryover Provision:
  3562 Adult Education, Basic                                                     90,977
  3564 Adult Education, Young Adult Initiative                                     1,853
  3565 Adult Education, Literacy                                                  21,699
  3575 Competitive Teacher Grants                                                 46,871
  3577 Teacher Supplies                                                          321,750
  3578 High Schools That Work                                                     31,867
  3582 Principal's Salary/Fringe Increase                                         73,794
  3583 EAA Summer School / Comprehensive Remediation                             405,721
  3588 EAA Palmetto Gold and Silver Awards                                       169,045
  3591 Excellence in Middle School                                                61,500
  3592 School-To-Work Transition Act                                              82,595
  3593 EAA Reduce Class Size Grades 1 - 3                                        332,201
  3596 EAA Alternative Schools Program                                           160,591
  3598 Bus Driver Salary Supplement                                                7,301
  3599 Other EIA                                                                  12,034

Total State Sources                                                         11,262,911

TOTAL REVENUE ALL SOURCES                                                   11,262,911


EXPENDITURES:

100 INSTRUCTION:

110 General Instruction:

 111 Kindergarten Programs:
   100 Salaries                                                                   51,789
   200 Employee Benefits                                                           9,730
   400 Supplies and Materials                                                     16,500
 112 Primary Programs:
   100 Salaries                                                                 1,102,169
   200 Employee Benefits                                                          278,359
   300 Purchased Services                                                           6,432
   400 Supplies and Materials                                                     114,576
                                                                                            70
SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - ALL PROGRAMS
SPECIAL REVENUE FUND - EDUCATION IMPROVEMENT ACT
YEAR ENDED JUNE 30, 2007

                                                                            TOTAL
EXPENDITURES (CONTINUED):

100 INSTRUCTION (CONTINUED):

110 General Instruction (Continued):

 113 Elementary Programs:
   100 Salaries                                                         $        753,591
   200 Employee Benefits                                                         159,586
   300 Purchased Services                                                          5,000
   400 Supplies and Materials                                                    159,160
 114 High School Programs:
   100 Salaries                                                                 1,299,260
   200 Employee Benefits                                                          293,705
   300 Purchased Services                                                           3,000
   400 Supplies and Materials                                                     199,790
 115 Vocational Programs:
   100 Salaries                                                                  153,872
   200 Employee Benefits                                                          38,610
   400 Supplies and Materials                                                    213,226

120 Exceptional Programs:

 121 Educable Mentally Handicapped:
  400 Supplies and Materials                                                       2,250
 122 Trainable Mentally Handicapped:
  100 Salaries                                                                    47,834
  200 Employee Benefits                                                           12,061
  400 Supplies and Materials                                                       4,065
 123 Orthopedically Handicapped:
  100 Salaries                                                                    12,632
  200 Employee Benefits                                                            2,387
  400 Supplies and Materials                                                         500
 124 Visually Handicapped:
  400 Supplies and Materials                                                         250
 125 Hearing Handicapped:
  100 Salaries                                                                     4,688
  200 Employee Benefits                                                              891
  400 Supplies and Materials                                                         250
 126 Speech Handicapped:
  400 Supplies and Materials                                                       5,500
 127 Learning Disabilities:
  100 Salaries                                                                    97,515
  200 Employee Benefits                                                           18,344
  400 Supplies and Materials                                                      11,000
 128 Emotionally Handicapped:
  400 Supplies and Materials                                                       2,250

130 Pre-School Programs:

 132 Itinerant (5 Yr. Olds):
   400 Supplies and Materials                                                        250
 137 Self-Contained (3 & 4 Yr. Olds):
   100 Salaries                                                                  100,926
   200 Employee Benefits                                                          31,446
   400 Supplies and Materials                                                      2,000
  139 Early Childhood Programs:
   100 Salaries                                                                  150,400
   200 Employee Benefits                                                          48,749
   300 Purchased Services                                                            306
   400 Supplies and Materials                                                      6,867

140 Special Programs:

 141 Gifted and Talented-Academic:
   100 Salaries                                                                  922,494
   200 Employee Benefits                                                         241,569
   300 Purchased Services                                                            230
   400 Supplies and Materials                                                     58,743
   600 Other Objects                                                                 185


                                                                                            71
SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - ALL PROGRAMS
SPECIAL REVENUE FUND - EDUCATION IMPROVEMENT ACT
YEAR ENDED JUNE 30, 2007

                                                                            TOTAL
EXPENDITURES (CONTINUED):

100 INSTRUCTION (CONTINUED):

140 Special Programs (Continued):

143 Advanced Placement:
  100 Salaries                                                          $         35,244
  200 Employee Benefits                                                            6,862
  300 Purchased Services                                                           2,261
  400 Supplies and Materials                                                      54,978
148 Gifted and Talented-Artistic:
  100 Salaries                                                                    51,861
  200 Employee Benefits                                                           14,013
  300 Purchased Services                                                           1,264
  400 Supplies and Materials                                                       1,681
  600 Other Objects                                                                   20
149 Other Special Programs:
  100 Salaries                                                                     3,750
  200 Employee Benefits                                                              703
  400 Supplies and Materials                                                         750

160 Other Exceptional Programs:

161 Autism:
  100 Salaries                                                                     7,500
  200 Employee Benefits                                                            1,422
  400 Supplies and Materials                                                       2,250

170 Summer School Program:

172 Elementary Summer School:
  100 Salaries                                                                   284,086
  200 Employee Benefits                                                           55,711
  300 Purchased Services                                                             495
  400 Supplies and Materials                                                      12,772

180 Adult/Continuing Educational Programs:

181 Adult Basic Education Programs:
  100 Salaries                                                                    25,541
  200 Employee Benefits                                                            4,703
  300 Purchased Services                                                           2,770
  400 Supplies and Materials                                                       7,676
182 Adult Secondary Education Programs:
  100 Salaries                                                                    37,858
  200 Employee Benefits                                                            5,912
  300 Purchased Services                                                             339
  400 Supplies and Materials                                                      15,098
183 Adult English Literacy (ESL):
  100 Salaries                                                                     6,150
  200 Employee Benefits                                                              723
 188 Parenting/Family Literacy:
  100 Salaries                                                                     4,575
  200 Employee Benefits                                                            1,582
  400 Supplies and Materials                                                       6,243

TOTAL INSTRUCTION                                                               7,301,730


200 SUPPORTING SERVICES:

210 Pupil Services:

 212 Guidance Services:
  100 Salaries                                                                   107,844
  200 Employee Benefits                                                           24,941
  400 Supplies and Materials                                                       9,000




                                                                                            72
SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - ALL PROGRAMS
SPECIAL REVENUE FUND - EDUCATION IMPROVEMENT ACT
YEAR ENDED JUNE 30, 2007

                                                                            TOTAL
EXPENDITURES (CONTINUED):

200 SUPPORTING SERVICES (CONTINUED):

220 Instructional Staff Services:

 221 Improvement of Instruction-Curriculum Development:
   100 Salaries                                                         $         134,247
   200 Employee Benefits                                                           28,424
   300 Purchased Services                                                           1,161
   400 Supplies and Materials                                                         250
   600 Other Objects                                                                1,200
 222 Library and Media:
   100 Salaries                                                                    67,500
   200 Employee Benefits                                                           12,784
   400 Supplies and Materials                                                       6,000
  223 Supervision of Special Programs:
   100 Salaries                                                                   234,967
   200 Employee Benefits                                                           60,402
   300 Purchased Services                                                             870
   400 Supplies and Materials                                                       1,736
  224 Improvement of Instruction-Inservice Training:
   100 Salaries                                                                    35,300
   200 Employee Benefits                                                            6,855
   300 Purchased Services                                                         118,752
   400 Supplies and Materials                                                      53,573

 230 General Administration Services:

 233 School Administration:
  100 Salaries                                                                     68,727
  200 Employee Benefits                                                            13,410

 250 Finance and Operation Services:

 255 Student Transportation:
  100 Salaries                                                                     59,301
  200 Employee Benefits                                                            15,948
  300 Purchased Services                                                           36,058

 260 Central Support Services:

 266 Technology and Data Processing Services
   400 Supplies and Materials                                                       3,400

 270 Support Services - Pupil Activity:

 271 Pupil Service Activities:
   300 Purchased Services                                                           1,443
   600 Other Objects                                                                  317

TOTAL SUPPORTING SERVICES                                                       1,104,410


TOTAL EXPENDITURES                                                              8,406,140

OTHER FINANCING SOURCES (USES):

Interfund Transfers, From (To) Other Funds:

5210 Transfers from General Fund                                                   131,873
420-710 Transfer to General Fund                                                (2,988,644)

TOTAL OTHER FINANCING SOURCES (USES)                                            (2,856,771)

Excess/Deficiency of Revenues over Expenditures                         $                -




                                                                                              73
     SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
     SUMMARY SCHEDULE BY PROGRAM
     SPECIAL REVENUE FUND - EDUCATION IMPROVEMENT ACT
     YEAR ENDED JUNE 30, 2007

                                                                                                           Transfers            Unearned
                                                                   Revenues           Expenditures          In/(Out)            Revenue
     PROGRAM

     3500 Education Improvement Act:
       3501 Increase High School Diploma Requirements          $        588,622   $          588,622   $               -    $            -
       3505 School Technology Initiative                                 23,293               23,293                   -            17,836
       3509 Arts in Education                                             8,220                8,220                   -                 -
       3513 Parenting/Family Literacy                                    62,848               62,848                   -             4,607
       3515 Advanced Placement Courses                                   63,572               63,572                   -             2,279
       3520 Gifted and Talented - Academic                            1,230,830            1,230,830                   -           107,863
       3522 Gifted and Talented - Artistic                               78,184               78,184                   -            31,274
       3523 Junior Scholars Program                                       1,814                1,814                   -                 -
       3525 Career and Technology Education Equipment                   166,207              166,207                   -            56,049
       3527 Critical Teaching Needs                                       6,177                6,177                   -                 -
       3530 Profoundly & Trainable Handicapped Services                  54,058               54,058                   -                 -
       3532 National Board Certification                              2,215,417            2,215,417                   -                 -
       3533 Teacher of the Year Awards                                    1,077                1,077                   -                 -
       3534 Professional Development on Standards                        68,703               68,703                   -             4,285
       3535 Governor's Institute of Reading                              59,124               59,124                   -               876
       3540 Four-Year Old Early Childhood                               233,913              233,913                   -                 -
       3542 Preschool Program for Children with Disabilities            114,536              114,536                   -                 -
       3546 Academic Assistance K-3                                     731,609              556,609            (175,000)           31,420
       3548 Academic Assistance 4-12                                    534,907              709,907             175,000             7,171
       3549 Academic Assistance Reading Recovery                        204,696              204,696                   -                 -
       3550 Teacher Salary Increase                                   2,507,252                    -          (2,507,252)                -
       3553 Adult Education-Remedial                                      1,679                1,679                   -               358
       3555 School Employer Contributions                               481,392                    -            (481,392)                -
       3562 Adult Education, Basic                                       90,977               90,977                   -            61,369
       3564 Adult Education, Young Adult Initiative                       1,853                1,853                   -                 -
       3565 Adult Education, Literacy                                    21,699               21,699                   -             8,375
       3575 Competitive Teacher Grants                                   46,871               46,871                   -                 -
       3577 Teacher Supplies                                            321,750              321,750                   -                 -
       3578 High Schools That Work                                       31,867               31,867                   -             4,133
       3582 Principal's Salary/Fringe Increase                           73,794               73,794                   -                 -
       3583 EAA Summer School / Comprehensive Remediation               405,721              440,164              34,443                 -
       3588 EAA Palmetto Gold and Silver Awards                         169,045              169,045                   -            49,933
       3590 Reallocation of EIA Funds                                         -                    -                   -           531,912
       3591 Excellence in Middle School                                  61,500               61,500                   -                 -
       3592 School-To-Work Transition Act                                82,595               82,595                   -            35,855
       3593 EAA Reduce Class Size Grades 1 - 3                          332,201              429,631              97,430                 -
       3596 EAA Alternative Schools Program                             171,907              171,907                   -                 -
       3598 Bus Driver Salary Supplement                                  7,301                7,301                   -                 -
       3599 Other EIA                                                     5,700                5,700                   -                 -

     TOTALS                                                    $     11,262,911   $        8,406,140   $      (2,856,771)   $      955,595




74
                          DEBT SERVICE FUND
The Debt Service Fund accounts for the accumulation of resources for, and the payment of the
District’s general long-term debt principal and interest. The resources of this fund are generated by
a tax levy based upon property values.

The following individual fund statements and schedules have been prepared in the format mandated
by the South Carolina Department of Education. The account numbers shown on various
statements are also mandated by the S.C. Department of Education.
SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
DEBT SERVICE FUND
YEAR ENDED JUNE 30, 2007

REVENUES

1000 Revenue from Local Sources
1100 Taxes:
 1110 Ad Valorem Taxes-Including Delinquent Taxes                $   15,486,313
 1140 Penalties & Interest on Taxes                                      57,840

1200 Revenue from Local Governmental Units Other than LEAs:
 1280 Revenue in Lieu of Taxes                                          17,915

1500 Earnings on Investments:
 1510 Interest on Investments                                          229,254

 Total Local Sources                                                 15,791,322

3000 Revenue from State Sources
3800 State Revenue in Lieu of Taxes:
  3820 Homestead Exemption                                             375,196
  3830 Merchants Inventory Tax                                          71,318
  3840 Manufacturers Depreciation Reimbursement                         58,305
  3890 Other State Property Tax Revenue                                 34,965

 Total State Sources                                                   539,784

TOTAL REVENUE ALL SOURCES                                            16,331,106

EXPENDITURES

500 DEBT SERVICE

 610 Redemption of Principal                                         17,705,000
 620 Interest                                                           950,453
 690 Membership dues and fees                                               539

TOTAL EXPENDITURES                                                   18,655,992

OTHER FINANCING SOURCES (USES):

Interfund Transfers, From (To) Other Funds:

5210 Transfers from General Fund                                      3,000,000

TOTAL OTHER FINANCING SOURCES (USES)                                  3,000,000

Excess/Deficiency of Revenues over Expenditures                        675,114

Fund Balance July 1, 2006                                             2,513,010

Fund Balance July , 2007                                         $    3,188,124


                                                                                  75
                  CAPITAL PROJECTS FUND
The Capital Projects Fund accounts, also referred to as the “School Building Fund,” is used
to record proceeds from the sale of long-term general obligation bonds and other revenues
used to acquire or construct major capital facilities (other than those of proprietary and trust
funds).

The following individual fund statements and schedules have been prepared in the format
mandated by the South Carolina Department of Education. The account numbers shown on
various statements are also mandated by the S.C. Department of Education.
SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
SCHOOL BUILDING FUND
YEAR ENDED JUNE 30, 2007

REVENUES

1000 Revenues from Local Sources

1500 Earnings on Investments:
 1510 Interest on Investments                                     $     329,487
 1990 Miscellaneous Revenues                                             75,082

Total Local Sources                                                     404,569

TOTAL REVENUES ALL SOURCES                                              404,569

EXPENDITURES

250 Finance and Operations

 253 Facilities Acquisition & Construction:
  300 Purchased Services                                                 920,219
  400 Supplies                                                         3,220,379
  500 Capital Outlay
   510 Land                                                            1,165,315
   520 Construction Services                                           6,669,178
   530 Improvements Other Than Buildings                                 401,222
   540 Equipment                                                       1,039,577
   545 Technology, Equipment and Software                                784,250
   550 Vehicles                                                           69,988
   580 Mobile Classrooms                                                 438,878
  600 Other Objects                                                      123,188

TOTAL EXPENDITURES                                                    14,832,194

OTHER FINANCING SOURCES (USES)

 5120 Issuance of General Obligation Bonds                            33,725,000

Interfund Transfers, From (To) Other Funds:

 420-710 Transfer to General Fund(Excludes Indirect Cost)             (1,297,178)

TOTAL OTHER FINANCING SOURCES (USES)                                  32,427,822

Excess (Deficiency) of Revenues over Expenditures                     18,000,197

FUND BALANCE JULY 1, 2006                                             (2,162,620)

FUND BALANCE JUNE 30, 2007                                        $   15,837,577




                                                                                    76
                        ENTERPRISE FUND
The Enterprise Fund accounts for operations that are financed and operated in a manner
similar to private business enterprises where the stated intent is that the costs (expenses,
depreciation and indirect costs) of providing goods or services to the students or general
public on a continuing basis are financed or recovered through user fees.

School Food Services Enterprise Fund is to provide balanced nutritious meals to the School
District’s students, some of which are free and reduced meals under the United States
Department of Agriculture (USDA) school breakfast and lunch programs.

After School Program Enterprise Fund is to provide after normal school hours programs for
elementary students at some of the elementary schools.

The following individual fund statements and schedules have been prepared in the format
mandated by the South Carolina Department of Education. The account numbers shown on
various statements are also mandated by the S.C. Department of Education.
SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN NET ASSETS
PROPRIETARY FUND TYPES - FOOD SERVICE FUND AND AFTER SCHOOL PROGRAM
YEAR ENDED JUNE 30, 2007

                                                               After School
                                              Food Service       Program          Totals
REVENUES

1000 Revenue from Local Sources

1300 Tuition:
 1310 From Patrons for Regular Day School    $           -    $    265,253    $    265,253

1500 Earnings on Investments:
 1510 Interest on Investments                       16,987                -         16,987

1600 Food Service:
  1610 Lunch Sales to Pupils                     2,293,609                -       2,293,609
  1620 Breakfast Sales to Pupils                   117,514                -         117,514
  1630 Special Sales to Pupils                   1,935,871                -       1,935,871
  1640 Lunch Sales to Adults                       181,136                -         181,136
  1650 Breakfast Sales to Adults                     3,581                -           3,581
 1660 Special Sales to Adults                      125,116                -         125,116

1900 Other Revenue from Local Sources:
  1999 Revenue from Other Local Sources             55,173                -         55,173

 Total Revenue from Local Sources                4,728,987         265,253        4,994,240

4000 Revenue from Federal Sources

4800 USDA Reimbursement:
  4810 School Lunch Program                      1,632,757                -       1,632,757
  4830 School Breakfast Program                    357,700                -         357,700
4900 Other Federal Sources:
  4991 USDA Commodities                            344,807                -        344,807

 Total Federal Sources                           2,335,264                -       2,335,264

Total Revenue All Sources                    $   7,064,251    $    265,253    $ 7,329,504




                                                                                              77
SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN NET ASSETS
PROPRIETARY FUND TYPES - FOOD SERVICE FUND AND AFTER SCHOOL PROGRAM
YEAR ENDED JUNE 30, 2007

                                                                       After School
                                                      Food Service       Program           Totals
EXPENSES

224 Improvement of Instruction-Inservice and Staff:
  300 Purchased Services                              $           -    $    11,537     $     11,537

252 Fiscal Services:
  300 Purchased Services                                          -          1,503             1,503

256 Food Service:
  100 Salaries                                            2,636,185               -        2,636,185
  200 Employee Benefits                                     929,362               -          929,362
  300 Purchased Services                                    161,118               -          161,118
  400 Supplies and Materials                              3,227,894               -        3,227,894
  500 Capital Outlay                                        222,052               -          222,052
  600 Other Objects                                          38,949               -           38,949

271 Pupil Services Activities:
  300 Purchased Services                                          -             96                  96

350 Custody and Care Children Services:
  100 Salaries                                                    -        137,500          137,500
 200 Employee Benefits                                            -         22,748           22,748
 300 Purchased Services                                           -          9,180            9,180
 400 Supplies and Materials                                       -         45,898           45,898

TOTAL EXPENDITURES                                        7,215,560        228,462         7,444,022

Interfund Transfers, From (To) Other Funds:

  5210 Transfer from General Fund                          421,065                -         421,065

  420-791 After School Program Fund Indirect Cost                 -          (7,200)          (7,200)

  432-791 Food Service Fund Indirect Cost                  (459,161)              -         (459,161)

TOTAL OTHER FINANCING SOURCES (USES)                        (38,096)         (7,200)         (45,296)

Excess of Revenues over Expenses                           (189,405)        29,591          (159,814)

NET ASSETS, JULY 1, 2006                                  1,510,611         50,634         1,561,245

NET ASSETS, JUNE 30, 2007                             $ 1,321,206      $    80,225     $ 1,401,431




                                                                                                         78
                            FIDUCIARY FUND
The Agency Fund accounts for assets held by the District in a trustee capacity or as an agent
for individuals, private organizations, other governmental units, and/or other funds. Agency
funds are purely custodial and do not involve measurement of results of operations.

The Pupil Activity Fund is used to record the receipts and disbursements of monies from
various student activities organizations. These organizations exist with the explicit approval of
the Board of Education. The approval may be revoked. The fund accounting reflects the
School District’s agency relationship with student activities organizations.

The following individual fund statements and schedules have been prepared in the format
mandated by the South Carolina Department of Education. The account numbers shown on
various statements are also mandated by the S.C. Department of Education.
SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
FIDUCIARY FUND
PUPIL ACTIVITY FUNDS
SCHEDULE OF CHANGES IN ASSETS AND LIABILITIES
FOR FISCAL YEAR ENDED JUNE 30, 2007




                                                 BALANCE                                            BALANCE
ASSETS                                         JUNE 30, 2006       ADDITIONS      DEDUCTIONS      JUNE 30, 2007

 Cash and Investments                          $   1,284,114   $     8,004,328    $   7,923,557   $   1,364,885
 Accounts Receivable                                  54,873                 -           13,690          41,183
 Inventory                                             4,762              (604)               -           4,158

                                                   1,343,749         8,003,724        7,937,247       1,410,226

LIABILITIES
 Accounts Payable                                          -             1,877                -           1,877

 Due to Pupil Activities                           1,343,749         8,001,847        7,937,247       1,408,349

                                               $   1,494,326   $     8,003,724    $   7,937,247   $   1,410,226




                                                                                                                  79
SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
COMBINING SCHEDULE OF RECEIPTS, DISBURSEMENTS AND CHANGES IN DUE TO PUPIL ACTIVITY
FIDUCIARY FUND
PUPIL ACTIVITY FUNDS
YEAR ENDED JUNE 30, 2007

                                                        Held at            Held by
                                                     District Office       Schools           Totals
RECEIPTS
1500 Earnings on Investments:
 1510 Interest on Investments                        $            -    $       3,558     $      3,558

1700 Pupil Activities:
 1710 Admissions                                          394,217                  -           394,217
 1720 Bookstore Sales                                           -             42,789            42,789
 1740 Student Fees                                              -            818,379           818,379
 1790 Other                                               427,823          3,846,852         4,274,675

1900 Other Revenue from Local Sources:
 1920 Contributions and Donations Private Sources              100                   -            100
 1990 Miscellaneous Local Revenue                              230                   -            230

Total Receipts                                            822,370          4,711,578         5,533,948

DISBURSEMENTS
171 Primary Summer School:
  100 Salaries                                               9,398                   -          9,398
  200 Employee Benefits                                      1,860                   -          1,860

190 Instructional Pupil Activity
  100 Salaries                                            361,525                    -        361,525
  200 Employee Benefits                                    73,052                    -         73,052

221 Instructional Pupil Activity:
  100 Salaries                                             44,401                    -         44,401
  200 Employee Benefits                                    15,599                    -         15,599

251 Stipends/Supplements-Bus Drivers
  100 Salaries                                             14,624                    -         14,624
  200 Employee Benefits                                     3,252                    -          3,252
  300 Purchased Services                                    5,037                    -          5,037

254 Operation and Maintenance of Plant
  100 Salaries                                               1,001                   -          1,001
  200 Employee Benefits                                        213                   -            213

270 Supporting Services Pupil Activity:
 271 Pupil Service Activities:
  100 Salaries                                           1,319,647                 -         1,319,647
  200 Employee Benefits                                    280,246                 -           280,246
  300 Purchased Services                                    26,777                 -            26,777
  400 Supplies and Materials                                 4,412                 -             4,412
  660 Pupil Activity                                     1,145,396         4,630,807         5,776,203
Total Supporting Services Pupil Activity                 3,306,440         4,630,807         7,937,247

Total Disbursements                                      3,306,440         4,630,807         7,937,247




                                                                                                         80
SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
COMBINING SCHEDULE OF RECEIPTS, DISBURSEMENTS AND CHANGES IN DUE TO PUPIL ACTIVITY
FIDUCIARY FUND
PUPIL ACTIVITY FUNDS
YEAR ENDED JUNE 30, 2007

                                                        Held at            Held by
                                                     District Office       Schools           Totals
OTHER FINANCING SOURCES (USES)

  5210 Transfer from General Fund                    $     477,951     $             -   $     477,951
  5999 Other Financing Sources                           1,989,948                   -       1,989,948

TOTAL OTHER FINANCING SOURCES (USES)                     2,467,899                   -       2,467,899



Excess (Deficiency) of Revenues over Expenditures          (16,171)           80,771           64,600

Due to Pupil Activity - July 1, 2006                       59,635          1,284,114         1,343,749

Due to Pupil Activity - June 30, 2008                $     43,464      $ 1,364,885       $ 1,408,349




                                                                                                         81
     SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
     SCHEDULE OF RECEIPTS, DISBURSEMENTS, AND CHANGES IN DUE TO PUPIL ACTIVITY
     FIDUCIARY FUND - PUPIL ACTIVITY FUNDS - BY SCHOOL
     YEAR ENDED JUNE 30, 2007

                                                      Chapin          Ballentine         Chapin          Chapin           Crossroads           Dutch Fork        Oak Pointe
                                                    Elementary        Elementary         Middle           High              Middle             Elementary        Elementary
     RECEIPTS
     1000 Receipts from Local Sources

     1500 Earnings on Investments
       1510 Interest on Investments             $            15   $            45    $        142    $            -   $                -   $            40   $                -

     1700 Pupil Activities:
      1720 Bookstore Sales                                  681             4,401            7,964               -              3,078                2,335                 -
       1740 Student Fees                                 18,338            19,603           55,850         146,134             46,666               12,713            14,874
       1790 Other                                       100,105           132,447          135,140         395,107            287,880               66,919            81,596
       Total Receipts                                   119,139           156,496          199,096         541,241            337,624               82,007            96,470

     DISBURSEMENTS

      270 Supporting Services Pupil Activity:
       271 Pupil Service Activities:
        660 Pupil Activity                               98,170           167,439          179,473         486,899            341,128               81,168            79,468
       Total Disbursements                               98,170           167,439          179,473         486,899            341,128               81,168            79,468

     Excess/Deficiency of Receipts over
      Disbursements                                      20,969           (10,943)          19,623          54,342             (3,504)                839             17,002

     Due to Pupil Activity - July 1, 2006                 9,479            47,517           59,773         132,913             40,009               47,115                    -

     Due to Pupil Activity - June 30, 2007      $        30,448   $        36,574    $      79,396   $     187,255    $        36,505      $        47,954   $        17,002




82
     SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
     SCHEDULE OF RECEIPTS, DISBURSEMENTS, AND CHANGES IN DUE TO PUPIL ACTIVITY
     FIDUCIARY FUND - PUPIL ACTIVITY FUNDS - BY SCHOOL
     YEAR ENDED JUNE 30, 2007

                                                    Dutch Fork        Dutch Fork           H.E. Corley   Harbison West          Irmo            Irmo              Irmo
                                                       High            Middle              Elementary     Elementary         Elementary         Middle            High
     RECEIPTS
     1000 Receipts from Local Sources

     1500 Earnings on Investments
       1510 Interest on Investments             $           242   $                -   $            30   $         11    $            29    $            54   $      2,655

     1700 Pupil Activities:
       1720 Bookstore Sales                                   -                 -                    -              -                  -                -                -
       1740 Student Fees                                142,124            53,876               11,959          3,809             13,658           56,713          158,168
       1790 Other                                       853,965           264,440              100,207         47,736             54,220          237,662          629,360
      Total Receipts                                    996,331           318,316              112,196         51,556             67,907          294,429          790,183

     DISBURSEMENTS

      270 Supporting Services Pupil Activity:
       271 Pupil Service Activities:
        660 Pupil Activity                              952,836           336,408               92,353         51,788             72,433          302,229          855,437
       Total Disbursements                              952,836           336,408               92,353         51,788             72,433          302,229          855,437

     Excess/Deficiency of Receipts over
      Disbursements                                      43,495           (18,092)              19,843           (232)            (4,526)          (7,800)         (65,254)

     Due to Pupil Activity - July 1, 2006               236,310            52,454               33,602         12,019             35,249           59,451          352,337

     Due to Pupil Activity - June 30, 2007      $       279,805   $        34,362      $        53,445   $     11,787    $        30,723    $      51,651     $    287,083




83
     SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
     SCHEDULE OF RECEIPTS, DISBURSEMENTS, AND CHANGES IN DUE TO PUPIL ACTIVITY
     FIDUCIARY FUND - PUPIL ACTIVITY FUNDS - BY SCHOOL
     YEAR ENDED JUNE 30, 2007

                                                Lake Murray        Leaphart     Nursery Road    River Springs   Seven Oaks           Alternative
                                                Elementary        Elementary     Elementary      Elementary     Elementary             School              Total
     RECEIPTS
     1000 Receipts from Local Sources

     1500 Earnings on Investments
       1510 Interest on Investments             $       253   $            21   $        21     $           -   $            -   $                 -   $       3,558

     1700 Pupil Activities:
       1720 Bookstore Sales                          14,381                 -              -           9,949              -                     -             42,789
      1740 Student Fees                              19,500             1,187         13,976          15,568         12,813                   850            818,379
      1790 Other                                    145,126            67,083        104,867          78,990         57,658                 6,344          3,846,852
      Total Receipts                                179,260            68,291        118,864         104,507         70,471                 7,194          4,711,578

     DISBURSEMENTS

      270 Supporting Services Pupil Activity:
       271 Pupil Service Activities:
        660 Pupil Activity                          174,879            65,264        123,419         101,229         61,575                 7,212          4,630,807
       Total Disbursements                          174,879            65,264        123,419         101,229         61,575                 7,212          4,630,807

     Excess/Deficiency of Receipts over
      Disbursements                                   4,381             3,027         (4,555)          3,278          8,896                   (18)           80,771

     Due to Pupil Activity - July 1, 2006            59,817            30,310         23,034          35,752         15,326                 1,647          1,284,114

     Due to Pupil Activity - June 30, 2007      $    64,198   $        33,337   $     18,479    $     39,030    $    24,222      $          1,629      $   1,364,885




84
SOUTH CAROLINA STATE DEPARTMENT
    OF EDUCATION SCHEDULES
SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
INSITE LOCATION RECONCILIATION SCHEDULE
YEAR ENDED JUNE 30, 2007

                                                                                    2007
         Location                                        Education     Cost         Total
Location Description                                       Level       Type      Expenditures

   1      Districtwide                           Non-schools          Central   $  38,045,625
  15      Chapin Elementary School               Elementary schools   School        5,444,957
  17      Lake Murray Elementary School          Elementary schools   School        5,464,857
  20      Chapin High School                     High schools         School       11,696,136
  21      Chapin Middle School                   Middle schools       School        6,504,289
  23      Corley Elementary School               Elementary schools   School        5,680,561
  24      Ballentine Elementary School           Elementary schools   School        5,264,310
  25      Dutch Fork Elementary School           Elementary schools   School        4,730,538
  26      River Springs Elementary School        Elementary schools   School        4,693,102
  27      Dutch Fork High School                 High schools         School       17,160,494
  28      Dutch Fork Middle School               Middle schools       School        7,656,513
  29      Harbison West Elementary School        Elementary schools   School        6,132,285
  30      Oak Point Elementary                   Elementary schools   School        4,644,002
  35      Irmo Elementary School                 Elementary schools   School        5,012,882
  40      Irmo High School                       High schools         School       18,441,932
  45      Crossroads Middle School               Middle schools       School        8,170,114
  46      Irmo Middle School                     Middle schools       School        8,859,843
  50      Leaphart Elementary School             Elementary schools   School        4,708,545
  52      Nursery Road Elementary School         Elementary schools   School        6,242,770
  55      Seven Oaks Elementary School           Elementary schools   School        4,715,798
  60      Summer School                          Other Schools        School           41,214
  61      Summer School                          Elementary schools   School           81,616
  65      Alternative School                     Other Schools        School        1,238,011
  75      Oak Pointe Elementary School           Elementary schools   School        4,785,237
  76      Oak Pointe Elementary School           Elementary schools   School          176,605
  78      Capital Project 2006-2007              High schools                       1,002,505
                                                                                $ 186,594,741


RECONCILIATION OF PRIMARY GOVERNMENT EXPENDITURES TO THE FINANCIAL STATEMENTS


General Fund                                                                    $ 120,772,683
Special Revenue Fund                                                                8,546,463
Special Revenue EIA Fund                                                            8,406,140
Debt Service Fund                                                                  18,655,992
Capital Projects Fund                                                              14,832,194
Proprietary Fund                                                                    7,444,022
Trust and Agency Fund                                                               7,937,247

Total Expenditures/Disbursements for All Funds                                  $ 186,594,741




                                                                                                85
SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
DETAILED SCHEDULE OF DUE TO STATE DEPARTMENT
OF EDUCATION/FEDERAL GOVERNMENT
JUNE 30, 2007

No funds are due to state/federal government.




                                                          86
SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
DETAILED SCHEDULE OF DEFERRED REVENUE
SPECIAL REVENUE FUND - EDUCATION IMPROVEMENT ACT
JUNE 30, 2007

                                                Fund      Revenue
                     Program                   Number      Code         Amount

School Technology Intitiative                   305        3505     $      17,836
Parenting/Family Literacy                       313        3513             4,607
Advanced Placement Courses                      315        3515             2,279
Gifted and Talented - Academic                  320        3520           107,863
Gifted and Talented - Artistic                  322        3522            31,274
Career and Technology Education Equip           325        3525            56,049
Professional Developmental on Standards         334        3534             4,285
Institute of Reading (South Carolina Reading
 Initiative - Middle Grades)                    335        3535               876
Academic Assistance K-3                         346        3546            31,420
Academic Assistance 4-12                        348        3548             7,171
Adult Education-Remedial                        353        3553               358
Adult Education, Basic                          362        3562            61,369
Adult Education, Literacy                       365        3565             8,375
High Schools That Work                          378        3578             4,133
EAA Palmetto Gold and Silver Award              388        3588            49,933
Excellence in Middle School                     391        3591           531,912
School-To-Work Transition Act                   392        3592            35,855
                                                                    $     955,595




                                                                                    87
           STATISTICAL SECTION                                   (Unaudited)

The following statistical tables reflect social and economic data, financial trends, and the
capacity of the school district.
                                                                                                                                                  TABLE 1
     SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
     NET ASSETS BY COMPONENT
     LAST FIVE FISCAL YEARS
     (accrual basis of accounting - unaudited)


                                                                                                        Fiscal Year
                                                                 2003                  2004                2005               2006              2007


     Governmental activities:
        Invested in capital assets, net of related debt    $    108,228,094     $    106,739,242    $    124,152,122     $   137,979,595   $   127,615,113
        Restricted                                                2,887,711           10,700,584           3,344,517           2,513,011        18,525,701
        Unrestricted                                              3,763,272            6,662,474          10,677,434          11,677,539        20,711,028
     Total governmental activities                              114,879,077          124,102,300         138,174,073         152,170,145       166,851,842

     Business-type activities:
        Invested in capital assets, net of related debt           1,397,500             1,282,130           1,464,485          1,549,904         1,327,852
        Restricted                                                        -                     -                   -                  -                 -
        Unrestricted                                                606,717               476,081            (289,600)            11,341            73,579
     Total business-type activities                               2,004,217             1,758,211           1,174,885          1,561,245         1,401,431

     Total primary government net assets                   $    116,883,294     $    125,860,511    $    139,348,958     $   153,731,390   $   168,253,273




     Source: Records maintained by the School District Finance Department

     The District implemented GASB Statement 34 with the fiscal year beginning July 1, 2002,
     therefore, this schedule presents accrual information beginning with June 30, 2003.




88
                                                                                                                                                                 TABLE 2
     SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
     EXPENSES, PROGRAM REVENUES, AND NET (EXPENSE) REVENUE
     LAST FIVE FISCAL YEARS
     (accrual basis of accounting - unaudited)

                                                                                                                      Fiscal Year
                                                                               2003                 2004                 2005               2006               2007
     Expenses
     Government activities:
        Instruction                                                      $     72,384,722      $    77,636,671    $     78,103,905     $    84,035,162    $    89,513,413
        Support service                                                        42,252,665           41,449,602          46,082,728          53,068,424         55,254,878
        Community service                                                          66,620               66,240              65,922              81,070             78,231
        Intergovernmental                                                         219,421              869,523           1,246,782           1,053,433            525,218
        Interest and other charges                                              1,421,781            1,410,551           1,251,247             916,724          1,043,455
        Depreciation - unallocated                                                 57,393              176,810             302,152             422,789          1,587,476
     Total governmental expenses                                              116,402,602          121,609,397         127,052,736         139,577,602        148,002,671

     Business-type activities:
        Food service                                                            5,374,225            5,832,527            6,497,943          6,874,026          7,215,560
        After school                                                                    -                    -                    -            160,889            228,462
     Total business-type expenses                                               5,374,225            5,832,527            6,497,943          7,034,915          7,444,022

     Total primary government expenses                                        121,776,827          127,441,924         133,550,679         146,612,517        155,446,693

     Program Revenues
     Government activities:
        Charges for services
         Instruction Services                                                           -               69,394             754,944             736,024            872,627
         Support Services                                                         498,264              774,749             385,673             474,065            489,424
         Intergovernmental                                                              -                    -              16,487              25,000                  -
        Operating grants and contributions                                     53,566,512           55,190,654          62,437,734          69,020,560         69,795,112
        Capital grants and contributions                                        3,628,241                    -             400,567                   -                      -
     Total governmental revenues                                               57,693,017           56,034,797          63,995,405          70,255,649         71,157,163

     Business-type activities:
        Charges for services                                                    3,735,150            3,852,849            4,004,880          4,759,337          4,922,080
        Operating grants and contributions                                      1,506,693            1,834,672            1,900,937          2,578,938          2,390,437
        Capital grants and contributions                                                -                    -                    -                  -                  -
     Total business-type revenues                                               5,241,843            5,687,521            5,905,817          7,338,275          7,312,517

     Total primary government revenues                                         62,934,860           61,722,318          69,901,222          77,593,924         78,469,680

     Net (Expense) Revenue
     Total primary government net expense                                $    (58,841,967)     $   (65,719,606)   $     (63,649,457)   $   (69,018,593)   $   (76,977,013)


     Source: Records maintained by the School District Finance Department

     The District implemented GASB Statement 34 with the fiscal year beginning July 1, 2002,
     therefore, this schedule presents accrual information beginning with June 30, 2003.




89
                                                                                                                                                           TABLE 3
     SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
     GENERAL REVENUES AND TOTAL CHANGE IN NET ASSETS
     LAST FIVE FISCAL YEARS
     (accrual basis of accounting - unaudited)



                                                                       2003                    2004               2005               2006               2007
     Net (Expense)/Revenue
     Total primary government net expense                        $     (58,841,967)    $       (65,719,606)   $   (63,649,457)   $   (69,018,593)   $   (76,977,013)


     General Revenues and Other Changes in Net Assets
     Governmental activities:
        Taxes
          Property taxes levied for general purposes                   42,483,309              46,428,770         46,543,180         52,578,885         60,008,122
          Property taxes levied for debt service                       14,175,605              14,743,459         14,887,776         15,615,508         15,544,153
        Payment in lieu of taxes                                          137,773                 115,906             84,837             75,045             78,278
        Unrestricted state revenue in lieu of taxes                    12,608,246              12,926,902         13,681,146         13,227,983         13,730,219
        Gain on sale of land                                                    -                       -             53,312                  -                  -
        Loss on disposals                                                       -                 (30,088)           (89,275)                 -                  -
        Investment earnings                                               307,859                 220,787            521,014          1,292,613          1,912,150
        Miscellaneous                                                     312,842                 226,331          1,386,098            472,062            208,987
     Total governmental revenues                                       70,025,634              74,632,067         77,068,088         83,262,096         91,481,909

     Business-type activities:
        Investment earnings                                                 71,080                 43,317             69,816            138,929             16,987
        Miscellaneous                                                       28,836                 21,439                  -                  -                  -
     Total business-type revenues                                            99916                 64,756             69,816            138,929             16,987

     Total primary government                                          70,125,550              74,696,823         77,137,904         83,401,025         91,498,896


     Change in Net Assets
      Governmental activities                                          11,316,049               9,057,467         14,010,577         13,940,143         14,636,401
      Business-type activities                                            (32,466)                (80,250)          (522,130)           442,289           (114,518)
     Total primary government                                    $     11,283,583      $        8,977,217     $   13,488,447     $   14,382,432     $   14,521,883




     Source: Records maintained by the School District Finance Department

     The District implemented GASB Statement 34 with the fiscal year beginning July 1, 2002,
     therefore, this schedule presents accrual information beginning with June 30, 2003.




90
                                                                                                                                                                                          TABLE 4
     SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
     FUND BALANCES, GOVERNMENTAL FUNDS
     LAST TEN FISCAL YEARS
     (modified accrual basis of accounting - unaudited)




                                                    1998           1999          2000           2001          2002          2003          2004           2005            2006             2007

     General Fund
       Reserved                                 $   555,281    $   376,077   $   808,910    $   266,845   $   321,228   $   308,183   $   333,566    $    428,925   $    442,249      $    587,982
       Unreserved                                 6,582,945      5,254,976     3,677,570      5,936,465     4,285,939     6,080,981     8,595,917      12,342,425     15,611,999        21,994,142
     Total General Fund                         $ 7,138,226    $ 5,631,053   $ 4,486,480    $ 6,203,310   $ 4,607,167   $ 6,389,164   $ 8,929,483    $ 12,771,350   $ 16,054,248      $ 22,582,124


     All Other Governmental Funds
        Reserved
           Debt Service                         $ 2,584,841    $ 2,787,381   $ 2,546,479    $ 2,820,464   $ 2,310,031   $ 1,982,154   $ 1,533,732    $ 2,558,228    $ 2,513,011       $ 3,188,124
           Building Fund-Special Purposes                 -              -             -              -             -             -             -              -              -           500,000
        Unreserved
           Building Fund                           7,892,851     4,166,535     11,552,996     4,635,507     2,916,081       597,374      8,833,286       786,289        (2,162,620)     15,337,577
     Total all other governmental funds         $ 10,477,692   $ 6,953,916   $ 14,099,475   $ 7,455,971   $ 5,226,112   $ 2,579,528   $ 10,367,018   $ 3,344,517    $      350,391    $ 19,025,701




     Source: Records maintained by the School District Finance Department




91
                                                                                                                                                                                           TABLE 5
     SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
     GOVERNMENTAL FUNDS REVENUES
     LAST TEN FISCAL YEARS
     (modified accrual basis of accounting - unaudited)


                                                                                                               Fiscal Year
                                       1998             1999                2000        2001            2002                 2003         2004            2005            2006            2007

     Local sources                $ 37,345,967     $ 38,946,461     $ 42,764,136    $ 49,773,668    $ 53,987,494      $ 57,861,213    $ 62,440,144    $ 65,250,384    $ 71,405,717    $ 79,265,649
     State sources                  48,442,262       50,829,891       57,706,464      59,448,355      71,609,219        65,014,302      61,692,169      67,923,880      74,094,537      77,028,601
     Federal sources                 1,566,429        1,650,974        1,952,531       2,320,386       3,660,651         4,620,500       6,083,576       8,121,467       8,115,364       6,350,891

     Total revenues               $ 87,354,658     $ 91,427,326     $ 102,423,131   $ 111,542,409   $ 129,257,364     $ 127,496,015   $ 130,215,889   $ 141,295,731   $ 153,615,618   $ 162,645,141




     Source: Records maintained by the School District Finance Department




92
                                                                                                                                                                                                     TABLE 6
     SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
     GOVERNMENTAL FUNDS EXPENDITURES BY FUNCTION AND DEBT SERVICE RATIO
     LAST TEN FISCAL YEARS
     (modified accrual basis of accounting - unaudited)


                                                                                                                       Fiscal Year
                                            1998             1999               2000            2001            2002                 2003           2004            2005            2006            2007

     Instruction                       $ 45,439,352     $ 50,074,325        $ 56,028,653    $ 61,944,765    $ 66,888,421      $ 69,987,563      $ 73,100,720    $ 75,161,029    $ 81,021,567    $ 86,190,182
     Support services                    26,305,746       27,909,004          29,273,608      31,822,199      35,233,387        38,488,232        39,448,879      42,501,379      48,828,138      50,904,792
     Community services                       4,412           33,967                               4,503           4,713             4,359             2,430           2,886          18,738          13,342
     Intergovernmental                       83,287          130,897               85,864         50,725         101,505           219,421           869,523       1,246,782       1,053,433         525,218
     Capital outlay                      23,753,255       14,894,456            7,841,579      8,533,223      19,082,325        10,783,393         6,150,866      10,732,041      25,664,777      14,923,946
     Debt service
       Principal                          10,376,071         8,820,000        10,040,000      10,215,000      13,295,000         13,575,000       14,485,000      13,665,000      18,155,000      17,705,000
       Interest and other fees             2,726,675         2,904,746         2,717,158       2,375,138       1,930,913          1,525,674        1,496,418       1,284,091         949,107         950,992

     Total expenditures                $ 108,688,798    $ 104,767,395       $ 105,986,862   $ 114,945,553   $ 136,536,264     $ 134,583,642     $ 135,553,836   $ 144,593,208   $ 175,690,760   $ 171,213,472


     Debt service as a percentage of
      noncapital expenditures                   18.2%            15.0%             14.9%           13.4%           14.9%                13.9%          14.1%           12.6%           14.6%           13.6%




     Source: Records maintained by the School District Finance Department




93
                                                                                                                                                                                                                      TABLE 7
     SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
     GOVERNMENTAL FUNDS OTHER FINANCING SOURCES AND USES AND
     NET CHANGE IN FUND BALANCES
     LAST TEN FISCAL YEARS
     (modified accrual basis of accounting - unaudited)


                                                                                                                               Fiscal Year
                                                1998              1999              2000              2001              2002                  2003              2004               2005              2006            2007

     Excess of revenues over
      (under) expenditures                  $ (21,334,140)   $ (13,340,069)    $   (3,563,731)   $   (3,403,144)   $   (7,278,900)    $      (7,087,627)   $   (5,337,947)   $    (3,297,477)   $ (22,075,142)    $ (8,568,331)


     Other Financing Sources (Uses)
     General long-term debt issued             12,600,000        10,000,000        11,100,000                 -         5,300,000             6,200,000        15,500,000                  -        22,300,000     33,725,000
     Sale of capital assets                        38,870                 -            23,467            39,703                 -                     -                 -             55,127             7,983          1,222
     Transfers in                               3,276,794         3,746,665         4,826,630         5,876,392         6,212,805             7,800,419         7,895,850         10,116,795         7,029,596      8,047,799
     Transfers out                             (4,891,356)       (5,437,545)       (6,385,380)       (7,439,625)       (8,059,907)           (7,777,379)       (7,730,094)       (10,055,079)       (6,973,666)    (8,002,503)
     Total other financing sources (uses)      11,024,308         8,309,120         9,564,717        (1,523,530)        3,452,898             6,223,040        15,665,756            116,843        22,363,913     33,771,518


     Net change in fund balances            $ (10,309,832)   $   (5,030,949)   $    6,000,986    $   (4,926,674)   $   (3,826,002)    $       (864,587)    $ 10,327,809      $    (3,180,634)   $     288,771     $25,203,187


     Ratio of Debt Services
     Expenditures to Total
     Noncapital Expenditures                       15.47%            13.03%            12.98%           11.83%            12.96%                12.19%             12.05%            10.90%             12.72%         11.93%

     Source: Records maintained by the School District Finance Department




94
                                                                                                                                                        TABLE 8
                                                                                                                                                      Page 1 of 2
     SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
     ASSESSED VALUE AND ESTIMATED VALUE OF TAXABLE PROPERTY
     LAST TEN FISCAL YEARS
     (unaudited)


     Lexington County:

                                                                                                                                                      Ratio Of
                                      Residential Property                Personal Property                      Total                             Total Assessed
                                                    Estimated                         Estimated                          Estimated       Total     Value To Total
      Fiscal     Tax Year         Assessed           Actual           Assessed          Actual     Assessed               Actual         Direct      Estimated
       Year     December 31        Value              Value            Value            Value       Value                  Value         Rate       Actual Value

       1998          1997          95,353,960       2,551,815,044     59,707,650     649,593,211   155,061,610           3,201,408,255    205.00       4.8%
       1999          1998          97,979,860       2,048,413,653     61,533,100     620,791,020   159,512,960           2,669,204,673    209.00       6.0%
       2000          1999         101,334,120       2,078,971,981     64,135,650     495,440,588   165,469,770           2,574,412,569    220.30       6.4%
       2001          2000         102,708,340       2,160,693,698     63,617,720     629,838,520   166,326,060           2,790,532,218    238.40       6.0%
       2002          2001         124,144,170       2,767,821,708     69,372,110     693,692,165   193,516,280           3,461,513,873    221.20       5.6%
       2003          2002         126,471,320       2,810,075,780     65,504,890     678,208,345   191,976,210           3,488,284,125    238.70       5.5%
       2004          2003         130,761,130       2,876,123,450     61,631,520     341,947,124   192,392,650           3,218,070,574    246.10       6.0%
       2005          2004         132,554,060       2,809,420,117     60,537,390     365,894,826   193,091,450           3,175,314,943    244.90       6.1%
       2006          2005         172,360,600       3,699,968,703     61,798,580     364,004,305   234,159,180           4,063,973,008    214.60       5.8%
       2007          2006         177,489,860       3,771,146,558     70,830,305     395,923,921   248,320,165           4,167,070,479    231.10       6.0%


     Note: Property tax rates per $1,000 of the assessed valuation.


     Source: Lexington County Auditor's Office




95
                                                                                                                                                        TABLE 8
                                                                                                                                                      Page 2 of 2
     SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
     ASSESSED VALUE AND ESTIMATED VALUE OF TAXABLE PROPERTY
     LAST TEN FISCAL YEARS
     (unaudited)


     Richland County:

                                                                                                                                                      Ratio Of
                                      Residential Property                Personal Property                      Total                             Total Assessed
                                                    Estimated                         Estimated                          Estimated       Total     Value To Total
       Fiscal    Tax Year         Assessed           Actual           Assessed          Actual     Assessed               Actual         Direct      Estimated
       Year     December 31        Value              Value            Value            Value       Value                  Value         Rate       Actual Value

       1998          1997          42,534,480         951,391,916     23,811,651     226,777,628    66,346,131           1,178,169,544    205.00       5.6%
       1999          1998          44,867,050       1,010,630,304     23,950,869     228,103,514    68,817,919           1,238,733,818    209.00       5.6%
       2000          1999          57,258,290       1,271,134,033     27,319,139     260,182,276    84,577,429           1,531,316,309    197.20       5.5%
       2001          2000          61,760,290       1,367,990,425     30,766,582     293,015,066    92,526,872           1,661,005,491    212.90       5.6%
       2002          2001          66,653,740       1,494,154,675     33,251,254     325,082,122    99,904,994           1,819,236,797    221.20       5.5%
       2003          2002          71,492,920       1,595,483,667     30,509,918     315,706,778   102,002,838           1,911,190,445    238.70       5.3%
       2004          2003          77,421,590       1,758,710,100     32,859,465     259,887,348   110,281,055           2,018,597,448    246.10       5.5%
       2005          2004          82,370,170       1,830,836,093     32,387,450     284,936,409   114,757,620           2,115,772,502    244.90       5.4%
       2006          2005         104,541,020       2,386,563,800     32,940,429     306,246,869   137,481,449           2,692,810,669    214.60       5.1%
       2007          2006         113,752,760       2,585,290,000     21,270,099     292,769,532   135,022,859           2,878,059,532    231.10       4.7%


     Note: Property tax rates per $1,000 of the assessed valuation.


     Source: Richland County Auditor's Office




96
                                                                                                                                                     TABLE 9
                                                                                                                                                   Page 1 of 2
     SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
     DIRECT AND OVERLAPPING PROPERTY TAX RATES
     LAST TEN FISCAL YEARS
     (unaudited)


     Lexington County:
                                                                                                               Overlapping Rates
                                           District Direct Rates                                       Midlands
      Fiscal     Tax Year          General        Capital                     Lexington   Recreation   Technical Riverbanks Town Of      City Of     City Of
      Year      December 31       Purposes       Purposes             Total    County      District     College       Zoo       Chapin    Irmo      Columbia

       1998         1997          154.000         51.000           205.000       81.700      13.400        3.300      2.100     17.000    24.300       99.000
       1999         1998          159.000         50.000           209.000       81.600      17.400        3.300      2.600     17.000    23.000       99.000
       2000         1999          171.300         49.000           220.300       77.100      16.800        4.200      2.600     17.000    23.000       90.000
       2001         2000          189.400         49.000           238.400       81.100      16.800        4.200      2.500     17.000    21.000       92.000
       2002         2001          172.200         49.000           221.200       75.296      15.000        3.723      2.013     14.000    19.000       92.000
       2003         2002          189.700         49.000           238.700       82.078      18.158        4.083      1.731     14.000    18.000       92.000
       2004         2003          197.100         49.000           246.100       83.908      18.471        4.181      1.858     14.000    18.000       92.000
       2005         2004          195.900         49.000           244.900       87.555      18.778        4.277      1.885     14.000    18.000       92.000
       2006         2005          173.600         41.000           214.600       76.858      16.097        3.769      1.643     11.663         -       92.000
       2007         2006          190.900         40.190           231.090       80.786      17.013        4.452      1.915     11.900         -       99.000


     Note: Property tax rates per $1,000 of the assessed valuation.
           Includes levies for operating and debt service.


     Source: Lexington County Auditor's Office




97
                                                                                                                                                    TABLE 9
                                                                                                                                                  Page 2 of 2
     SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
     DIRECT AND OVERLAPPING PROPERTY TAX RATES
     LAST TEN FISCAL YEARS
     (unaudited)


     Richland County:
                                                                                                        Overlapping Rates
                                           District Direct Rates                                      Midlands
      Fiscal     Tax Year          General        Capital                     Richland   Recreation   Technical Riverbanks   City Of    City Of
      Year      December 31       Purposes       Purposes             Total    County     District     College       Zoo      Irmo     Columbia

       1998         1997          154.000         51.000           205.000      77.300       5.900       3.500      2.200     24.300     99.000
       1999         1998          159.000         50.000           209.000      82.800       7.200       4.200      2.700     23.000     99.000
       2000         1999          148.200         49.900           197.200      76.100       8.800       4.000      2.500     23.000     90.000
       2001         2000          163.900         49.900           212.900      73.400       8.500       3.900      2.600     21.000     92.000
       2002         2001          172.200         49.900           221.200      76.200       9.200       3.800      2.200     19.000     92.000
       2003         2002          189.700         49.900           238.700      85.800       8.800       4.000      1.900     18.000     92.000
       2004         2003          197.100         49.900           246.100      95.600       9.700       4.200      2.000     18.000     92.000
       2005         2004          195.900         49.900           244.900      99.300      11.200       4.300      2.100     18.000     92.000
       2006         2005          173.600         41.000           214.600      95.000      12.000       4.400      2.100          -     83.600
       2007         2006          190.900         40.200           231.100      96.400      12.300       4.400      2.100          -     99.000


     Note: Property tax rates per $1,000 of the assessed valuation.
           Includes levies for operating and debt service.


     Source: Richland County Auditor's Office




98
                                                                                                                     TABLE 10
                                                                                                                    Page 1 of 2
     SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
     PRINCIPAL PROPERTY TAX PAYERS
     CURRENT YEAR AND NINE YEARS AGO
     (unaudited)

                                                                       2007                                  1998
                                                                              Percentage                            Percentage
                                                         Taxable               of Total        Taxable               of Total
                                                        Assessed               Taxable        Assessed               Taxable
     Lexington Taxpayer:                                  Value        Rank     Value           Value        Rank     Value

     South Carolina Electric & Gas                     $ 21,331,220     1       8.59%        $ 11,569,530     1       7.24%
     Cingular Wireless F/K/A BellSouth                    4,905,400     2       1.98%                   -                      -
     GGP Columbiana Trust                                 2,990,500     3       1.20%                   -                      -
     Shaw Industries                                      3,511,710     4       1.41%                   -                      -
     Hub Properties Trust                                 1,842,030     5       0.74%                   -                      -
     BellSouth Telecommunications                         1,494,670     6       0.60%           3,621,750     3       2.27%
     DDR MDT Harbison Court LLC                           1,070,870     7       0.43%                   -                      -
     Columbiana Station (E & A) LL                        1,043,190     8       0.42%                   -                      -
     Mid Carolina Electric Coop. Inc.                     1,148,260     9       0.46%                   -                      -
     Inland Southeast Columbiana                            869,440     10      0.35%                   -                      -
     Allied Signal Inc.                                           -                      -     10,732,600     2       6.72%
     Philips Electronics                                          -                      -        952,880     4       0.60%
     Mid Carolina Electric Corp.                                                         -        735,740     5       0.46%
     BellSouth Carolina PCSLP                                      -                     -        565,010     6       0.35%
     Martin Rosemary/Stone Const.                                  -                     -        356,420     7       0.22%
     Columbia Cable TV                                             -                     -        244,630      8      0.15%
     Fred B. Johnston Co.                                          -                     -        265,670      9      0.17%
     Columbia, Newberry, Laurens                                   -                     -        170,720     10      0.11%


     Total Assessed Value of Ten Principal Taxpayers   $ 40,207,290            16.19%        $ 29,214,950             18.29%
     Total Assessed Value of Other Taxpayers             208,112,875            83.81%         130,540,090            81.71%
     Total Assessed Value of All Taxpayers             $ 248,320,165           100.00%       $ 159,755,040           100.00%




     Sources: Lexington County Auditor's Office
              Lexington County Treasurer's Office




99
                                                                                                                        TABLE 10
                                                                                                                       Page 2 of 2
      SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
      PRINCIPAL PROPERTY TAX PAYERS
      CURRENT YEAR AND NINE YEARS AGO
      (unaudited)

                                                                         2007                                   1998
                                                                                Percentage                             Percentage
                                                             Taxable             of Total           Taxable             of Total
                                                            Assessed             Taxable           Assessed             Taxable
      Richland Taxpayer;                                      Value      Rank     Value              Value      Rank     Value

      Bellsouth Telecomm. Inc.                          $    1,783,610    1       1.22%        $    2,260,730    1       3.28%
      Mid-Carolina Electric Coop.                            1,702,230    2       1.17%               517,530    5       0.75%
      Columbia MSA Limited Partner                           1,210,670    3       0.83%                     -                     -
      South Carolina Electric & Gas                          1,207,890    4       0.83%               797,620    2       1.16%
      Walden Heights at Harbison LLC                           861,520    5       0.59%                     -                     -
      Paces Brook Gardens Associates                           798,600    6       0.58%                     -                     -
      Triton PCS Holdings Company                              758,240    7       0.52%                     -                     -
      Harpaw LLC                                               716,660    8       1.57%                     -                     -
      Southland Log House Inc.                                 611,810    9       0.42%                     -                     -
      Franklin Pineridge Associates                            560,020    10      0.38%               440,720     6      0.64%
      Dillard Department Store                                       -                     -          602,160     3      0.87%
      Metropolitan Life Insurance                                    -                     -          525,360     4      0.76%
      Home Depot USA, Inc.                                           -                     -          271,630     7      0.39%
      LCI Funding Inc.                                               -                     -          259,580     8      0.38%
      Chestnut Hill Plantation Inc.                                  -                     -          225,030     9      0.33%
      Harbison Elderly Assoc.                                        -                     -          243,920    10      0.35%


      Total Assessed Value of Ten Principal Taxpayers   $ 10,211,250              7.01%        $  6,144,280              8.93%
      Total Assessed Value of Other Taxpayers             135,522,799            92.99%          62,689,589             91.07%
      Total Assessed Value of All Taxpayers             $ 145,734,049            100.00%       $ 68,833,869             100.00%




      Sources: Richland County Auditor's Office
               Richland County Treasurer's Office




100
                                                                                                                       TABLE 11
                                                                                                                      Page 1 of 2
      SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
      PROPERTY TAX LEVIES AND COLLECTIONS
      LAST TEN FISCAL YEARS
      (unaudited)


      Lexington County:


                                                           Collected within the
                                        Taxes Levied      Fiscal Year of the Levy       Collections   Total Collections to Date
         Fiscal       Tax Year             for the                       Percentage   in Subsequent                   Percentage
         Year        December 31         Fiscal Year     Amount            of Levy        Years       Amount             of Levy

         1998             1997            48,968,869     46,881,079       95.7%            858,710    47,739,789       97.5%
         1999             1998            51,944,639     49,441,453       95.2%          1,331,311    50,772,764       97.7%
         2000             1999            54,001,510     51,530,678       95.4%          1,213,078    52,743,756       97.7%
         2001             2000            57,758,176     55,040,113       95.3%          1,597,914    56,638,027       98.1%
         2002             2001            63,685,784     62,031,857       97.4%          1,357,940    63,389,797       99.5%
         2003             2002            68,436,820     65,927,016       96.3%          1,863,985    67,791,001       99.1%
         2004             2003            70,519,240     68,378,348       95.7%          1,796,851    70,175,199       99.5%
         2005             2004            71,444,215     69,181,779       89.7%          1,706,238    70,888,017       99.2%
         2006             2005            77,106,229     74,356,724       96.4%          1,947,957    76,304,681       99.0%
         2007             2006            85,800,707     78,388,840       91.4%          1,235,468    79,624,308       92.8%


        Sources:   Lexington County Auditor's Office
                   Lexington County Treasurer's Office




101
                                                                                                                      TABLE 11
                                                                                                                     Page 2 of 2
      SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
      PROPERTY TAX LEVIES AND COLLECTIONS
      LAST TEN FISCAL YEARS
      (unaudited)


      Richland County:


                                                           Collected within the
                                        Taxes Levied     Fiscal Year of the Levy       Collections   Total Collections to Date
         Fiscal       Tax Year             for the                      Percentage   in Subsequent                   Percentage
          Year       December 31         Fiscal Year    Amount            of Levy        Years       Amount             of Levy

         1998            1997             13,631,051    13,110,945       96.2%            312,982    13,423,927       98.5%
         1999            1998             14,375,248    14,068,845       97.9%            252,926    14,321,771       99.6%
         2000            1999             16,683,537    15,962,945       95.7%            455,271    16,418,216       98.4%
         2001            2000             19,779,000    18,249,835       92.3%            689,232    18,939,067       95.8%
         2002            2001             22,237,116    20,317,997       91.4%            825,412    21,143,409       95.1%
         2003            2002             24,659,775    22,145,271       89.8%            748,058    22,893,329       92.8%
         2004            2003             26,877,569    24,506,348       91.2%          1,120,839    25,627,187       95.3%
         2005            2004             28,104,141    25,874,000       92.1%            814,405    26,688,405       95.0%
         2006            2005             29,390,908    26,997,963       91.9%            772,724    27,770,687       94.5%
         2007            2006             33,222,761    27,480,616       82.7%            332,492    27,813,108       83.7%


      Sources:     Richland County Auditor's Office
                   Richland County Treasurer's Office




102
                                                                                                        TABLE 12

SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
(unaudited)


               Governmental Activities
                                                                    Percentage
              General                              Total            of Estimated     Percentage
 Fiscal      Obligation          Capital         Primary           Actual Value of   of Personal         Per
  Year        Bonds              Leases         Government        Taxable Property     Income           Capita

  1998        47,125,000            42,265        47,167,265           1.08%            2.62%                 645
  1999        48,305,000             8,749        48,313,749           1.24%            2.57%                 649
  2000        49,365,000                 -        49,365,000           1.20%            2.42%                 652
  2001        39,150,000                 -        39,150,000           0.88%            1.82%                 509
  2002        31,155,000                 -        31,155,000           0.59%            1.41%                 398
  2003        23,780,000                 -        23,780,000           0.44%            1.04%                 299
  2004        24,795,000                 -        24,795,000           0.47%            1.05%                 306
  2005        11,130,000                 -        11,130,000           0.21%            0.44%                 135
  2006        15,275,000                 -        15,275,000           0.35%         Not Available   Not Available
  2007        31,295,000                          31,295,000           0.44%         Not Available   Not Available




  Notes:   Details of the district's outstanding debt can be found in the Notes
           to the Basic Financial Statements.

           Personal income and population data can be found in Table 15.
           The ratios are calculated using personal income and population
           for the prior calendar year.




                                                                                                                     103
                                                                                           TABLE 13

SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
AS OF JUNE 30, 2007
(unaudited)

                                                                                         Estimated
                                                                                           District
                                                                       Estimated          Share of
                                                      General          Percentage        Direct and
                                                    Bonded Debt        Applicable       Overlapping
                                                    Outstanding        To District          Debt


Direct:

      School District Five of Lexington
        and Richland Counties                     $    31,295,000       100.00%        $ 31,295,000


Overlapping:

    Lexington County:

      Lexington County                            $    49,731,225       28.20%           13,922,685
      Irmo-Chapin Recreation District                   7,360,000       100.00%           7,360,000
      Riverbanks Park District                         14,550,000       18.50%            2,691,750
      City of Columbia                                 18,050,000       13.60%            2,454,800


    Richland County:

      Richland County                                  69,790,000        11.70%           8,165,430
      Richland Drainage District                                -        17.90%                   -
      Riverbanks Park District                         14,550,000        18.50%           2,691,750
      City of Columbia                                 18,050,000        13.60%           2,454,800

Total overlapping debt                                192,081,225                        39,741,215

Total direct and overlapping debt                 $ 223,376,225                        $ 71,036,215




Sources: Lexington County Treasurer's Office
         Richland County Treasurer's Office

The percentage of overlapping debt applicable is estimated using taxable property values. Applicable
percentages were estimated by determining the portion of another governmental unit's taxable value
that is within the district's boundaries and dividing it by each unit's total taxable value.




                                                                                                       104
                                                                                                                                                                                                     TABLE 14

      SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
      LEGAL DEBT MARGIN INFORMATION
      LAST TEN FISCAL YEARS
      (unaudited)

                                                                                                                                             Legal Debt Margin Calculation For Fiscal Year 2007

                                                                                                                                             Assessed Value                                     $ 394,054,214

                                                                                                                                             Debt limit (8% of assessed value)                      31,524,337
                                                                                                                                             Debt applicable to limit                               27,375,000

                                                                                                                                             Legal debt margin                                  $    4,149,337




                                                                                                                          Fiscal Year
                                                   1998            1999            2000             2001          2002             2003           2004            2005              2006             2007


      Debt limit                               $ 17,712,619    $ 18,266,470    $ 20,001,833     $ 20,708,235   $ 23,473,702   $ 23,518,324   $ 24,213,896     $ 24,944,759       $ 29,731,250       $31,524,337

      Total net debt applicable to limit             42,265       9,238,746      15,730,000      14,670,000     10,565,000       6,180,000      10,345,000                 -        7,650,000       27,375,000

      Legal debt margin                        $ 17,670,354    $ 9,027,724     $ 4,271,833      $ 6,038,235    $ 12,908,702   $ 17,338,324   $ 13,868,896     $ 24,944,759       $ 22,081,250   $    4,049,337

      Total net debt applicable to the limit
      as a percentage of debt limit                0.24%          50.58%          78.64%           70.84%        45.01%          26.28%         42.72%            0.00%            25.73%               86.84%




      Article X, Section 14 of the Constitution of the State of South Carolina, empowers each school
      district of the State to incur general obligation debt in such manner and upon such terms and
      conditions as the General Assembly shall prescribe by law. After November 30, 1977, each
      school district may incur general obligation debt, without an election and upon such terms and
      conditions as the General Assembly may prescribe, in an amount not exceeding 8 percent of the
      assessed value of all taxable property of such school district. Bonded indebtedness existing on
      November 30, 1977, and bonded indebtedness authorized by a majority vote of the qualified
      electors of the School District voting in a referendum will not be considered in the computation
      of the 8 percent limitation.


      Sources: Lexington County Auditor's Office
               Richland County Auditor's Office




105
                                                                                                                                    TABLE 15

      SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
      DEMOGRAPHIC AND ECONOMIC STATISTICS
      LAST TEN FISCAL YEARS
      (unaudited)


                                                                           Per                 Per
                                                    Personal              Capita              Capita
                                                    Income              Personal            Personal         Unemployment      Unemployment
       Fiscal      Calendar      Estimated        (thousands             Income              Income               Rate               Rate
       Year         Year         Population        of dollars)      Lexington County     Richland County    Lexington County   Richland County

        1998         1997            73,150          1,799,015               24,212              24,975          2.2%               3.0%
        1999         1998            74,396          1,876,639               24,973              25,477          1.8%               2.2%
        2000         1999            75,664          2,037,745               27,286              26,577          2.0%               2.8%
        2001         2000            76,953          2,155,107               28,900              27,111          2.0%               2.8%
        2002         2001            78,265          2,201,594               28,642              27,618          3.7%               4.3%
        2003         2002            79,598          2,273,796               29,040              28,092          4.0%               4.8%
        2004         2003            80,954          2,346,330               29,618              28,349          4.5%               5.6%
        2005         2004            82,334          2,484,881               30,528              29,833          4.9%               6.0%
        2006         2005            83,737        Not Available             31,575              31,518          4.9%               5.6%
        2007         2006            85,161        Not Available        Not Available       Not Available        4.6%               5.7%


      Sources: South Carolina Budget and Control Board, Division of Research and Statistical Services
               South Carolina Budget and Control Board, Office of Economic Research
               South Carolina Employment Security Commission, Labor Market Information Division
               Records maintained by the School District Finance Department




106
                                                                                                        TABLE 16
                                                                                                       Page 1 of 2
      SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
      PRINCIPAL EMPLOYERS
      CURRENT YEAR AND NINE YEARS AGO
      (unaudited)

                                                              2007                             1998
                                                                     Percentage                       Percentage
                                                                       of Total                         of Total
      Lexington Employer:                       Employees     Rank   Employment   Employees    Rank   Employment

      Michelin North America Inc.                     1,614    1          1.30%        1,250    1           1.08%
      Columbia Farms/House of Raeford                   800    2          0.64%            -                    -
      UPS                                               630    3          0.51%            -                    -
      Honeywell International Inc.                      480    4          0.39%            -                    -
      Harsco Track Tech                                 467    5          0.38%          425    6           0.37%
      Cooper Tools                                      392    6          0.32%          365   10           0.31%
      Prysmian Cables & Systems                         375    7          0.30%            -
      CMC Steel South Carolina                          360    8          0.29%            -                    -
      Solectron                                         351    9          0.28%            -
      Union Switch & Signal, Inc.                       325    10         0.26%          500    4           0.43%
      Allied-Signal                                       -                   -        1,231    2           1.06%
      NCR                                                 -                   -          764    3           0.66%
      Fairmont Tamper                                     -                   -          467    5           0.40%
      J.B. Martin & Co.                                   -                   -          396    7           0.34%
      Pirelli Cable Corp                                  -                   -          375    8           0.32%
      SMI Steel of SC                                     -                   -          367    9           0.32%

                                                      5,794               4.67%        6,140                5.29%




      Source: South Carolina Department of Commerce




107
                                                                                                        TABLE 16
                                                                                                       Page 2 of 2
      SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
      PRINCIPAL EMPLOYERS
      CURRENT YEAR AND NINE YEARS AGO
      (unaudited)

                                                              2007                             1998
                                                                     Percentage                       Percentage
                                                                       of Total                         of Total
      Richland Employer:                        Employees     Rank   Employment   Employees    Rank   Employment

      Westinghouse Electric Corp.                     1,059     1         0.64%          850    1           0.54%
      Bose Corp.                                        960     2         0.58%          658    4           0.42%
      International Paper                               726     3         0.44%            -                    -
      Schneider Electric/Square D Co.                   656     4         0.40%            -                    -
      The State Record Co. Inc.                         606     5         0.37%          645    5           0.41%
      FN Manufacturing Inc.                             560     6         0.34%          359    9           0.23%
      Siemens Diesel Systems Technology LLC             490    7          0.30%            -                    -
      Intertape Polymer Group                           425    8          0.26%            -                    -
      Trane Co.                                         400    9          0.24%            -                    -
      Hanson Brick                                      300    10         0.18%            -                    -
      Union Camp Corp.                                    -                   -          850    2           0.54%
      Anchor Continental, Inc.                            -                   -          847    3           0.54%
      Square D company                                    -                   -          616    6           0.39%
      Consolidated Systems, Inc.                          -                   -          418    7           0.27%
      Pepsi South                                         -                   -          400    8           0.25%
      AMBAC International Corp.                           -                   -          351    10          0.22%

                                                      6,182               3.75%        5,994                3.80%




      Source: South Carolina Department of Commerce




108
                                                                                                                                                                TABLE 17

      SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
      FULL-TIME-EQUIVALENT PERSONNEL ALLOCATIONS BY TYPE
      LAST TEN FISCAL YEARS
      (unaudited)

                                                                             Full-time-Equivalent Personnel Allocations For Fiscal Year
                                        1998         1999         2000             2001         2002           2003          2004         2005       2006        2007
      School Allocations:
        Teachers                         887.82       938.56       987.06        1,013.37       1066.09      1,081.00       1,091.63      1,122.55   1,186.41   1,395.00
        Guidance                          31.50        31.50        31.00           32.50        40.50          41.00          41.50         43.50      43.50      50.00
        Media specialists                 20.00        20.00        19.00           19.00        21.00          21.00          21.00         22.00      23.00      24.00
        Psychologists and social
          workers                          8.00        10.00        13.50            13.50        14.00          14.00         19.50        13.50      15.30       18.80
        Speech therapists                 17.50        17.50        18.50            19.50        24.00          24.00         23.00        24.00      24.00       25.30
        Nurses, occupational and
          physical therapists             19.80        21.00        21.30            22.00        22.80          25.47         27.30        28.10      28.57       24.32
        Secretaries, bookkeepers,
          and receptionists               84.25        90.25        91.25          105.25        110.00        114.00         121.00       121.50     121.50      122.00
        Teacher assistants and
          media assistants               172.24       188.81       204.58          215.47        233.00        242.58         255.59       261.49     272.09      287.21
        Food service personnel and
          cafeteria monitors             131.36       138.40       138.71          148.58        146.02        151.19         156.73       156.81     164.22      169.00
        Custodians, maintenance
          and transportation             210.50       215.97       210.97          234.00        255.00        267.00         255.78       259.78     261.59      278.50
        Technology services and
          and other specialized            5.00         5.00         5.00             5.00         8.50           8.50         15.00        17.50      15.00       18.00
        Principal/assistant and
          principal/coordinators          46.00        46.00        46.00           46.00         46.00         48.00          58.66         59.83      60.88      71.67
        Total                          1,633.97     1,722.99     1,786.87        1,874.17      1,986.91      2,037.74       2,086.69      2,130.56   2,216.06   2,483.80

      District Office Allocations:
         Superintendent                    7.84          8.84         7.84            7.84          7.84          7.87           7.87         7.87       8.00       8.00
         Instruction                      28.75         28.75        30.05           30.65         39.15         40.15          26.92        27.92      27.51      28.00
         Human resources services          6.53          6.53         6.53            6.53          8.00          8.00           8.00         8.00       8.00       8.00
         Financial services               30.15         30.15        42.15           28.15         28.85         28.85          28.85        28.85      29.35      39.00
         Total                            73.27         74.27        86.57           73.17         83.84         84.87          71.64        72.64      72.86      83.00

      Total                             1707.24      1797.26       1873.44        1947.34       2070.75        2122.61       2158.33       2203.20    2288.92   2,566.80




      Source: Records maintained by the School District Human Resources Department




109
                                                                                                                                                             TABLE 18

      SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
      OPERATING STATISTICS
      LAST TEN FISCAL YEARS
      (unaudited)

                                                                                                                                                          Percentage
                                                                                                                                                          of Students
                                                                                                                                                           Receiving
                                                         Cost                                             Cost                                  Pupil-      Free or
        Fiscal                       Operating            per        Percentage                            per       Percentage   Teaching     Teacher   Reduced -Price
        Year        Enrollment      Expenditures         Pupil        Change            Expenses          Pupil       Change        Staff       Ratio        Meals

        1998          13,807          71,832,797           5,203        6.11%                   N/A            N/A      N/A              834    16.6         14.0%
        1999          14,234          78,148,193           5,490        5.53%                   N/A            N/A      N/A              887    16.0         15.0%
        2000          14,425          85,388,125           5,919        7.82%                   N/A            N/A      N/A              912    15.8         15.0%
        2001          14,633          93,822,192           6,412        8.32%                   N/A            N/A      N/A              848    17.3         16.0%
        2002          14,757         102,228,026           6,927        8.04%                   N/A            N/A      N/A              948    15.6         17.0%
        2003          15,034         108,699,575           7,230        4.37%        $ 121,776,827    $     8,100       N/A              926    16.2         18.0%
        2004          15,377         113,421,552           7,376        2.02%          127,441,924          8,288      2.32%             903    17.0         21.0%
        2005          15,901         118,912,076           7,478        1.39%          133,550,679          8,399      1.34%             912    17.4         22.0%
        2006          16,394         130,921,876           7,986        6.79%          146,612,517          8,943      6.48%             952    17.2         23.0%
        2007          16,569         137,633,534           8,307        4.02%          155,446,693          9,382      4.91%           1,108    15.0         23.0%


      Source: Records maintained by the School District Finance Department

      Operating expenditures are total expenditures less debt service and capital outlays.

      N/A = Not available

      The District implemented GASB Statement 34 with the fiscal year beginning July 1, 2002,
      therefore, this schedule presents accrual information beginning with June 30, 2003.




110
                                                                         TABLE 19

SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
TEACHER BASE SALARIES
LAST TEN FISCAL YEARS
(unaudited)


                                                            Statewide
   Fiscal          Minimum            Maximum               Average
    Year            Salary             Salary                Salary

    1998                24,118              50,587              33,697
    1999                24,481              52,622              34,506
    2000                25,643              55,120              36,194
    2001                26,681              58,368              37,938
    2002                27,954              60,629              39,923
    2003                27,954              60,629              40,362
    2004                28,137              61,025              41,162
    2005                28,719              62,286              42,189
    2006                29,804              65,061              42,959
    2007                31,828              69,573              44,123



      Source:   Records maintained by the School District
                South Carolina Department of Education




                                                                                    111
                                                                                                                                          TABLE 20
                                                                                                                                         Page 1 of 3
      SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
      SCHOOL BUILDING INFORMATION
      LAST TEN FISCAL YEARS
      (unaudited)
                                                                                       Fiscal Year
                                        1998       1999       2000       2001       2002          2003     2004      2005      2006        2007

      School
      Elementary
      Ballentine Elementary (2002)
         Square feet                           -          -          -          -         -      106,731   106,731   106,731   106,731     106,731
         Capacity                              -          -          -          -         -          800       800       800       800         800
         Enrollment                            -          -          -          -         -          560       652       719       789         703
      Chapin Elementary (1977)
         Square feet                    108,900    108,900    108,900    108,900    108,900      108,900   108,900   108,900   108,900     108,900
         Capacity                           850        850        850        850        850          850       850       850       850         850
         Enrollment                         640        620        650        690        701          592       599       670       704         727
      Dutch Fork Elementary (1953)
         Square feet                     83,446     83,446     83,446     83,446     83,446       83,446    83,446    83,446    93,485     103,522
         Capacity                           750        750        750        750        750          750       750       750       750         750
         Enrollment                         659        729        764        777        796          519       506       535       578         542
      H. E. Corley Elementary (1990)
         Square feet                    105,944    105,944    105,944    105,944    105,944      105,944   105,944   105,944   105,944     105,944
         Capacity                           750        750        750        750        750          750       750       750       750         750
         Enrollment                         805        796        754        732        745          687       637       636       581         594
      Harbison West Elementary (1982)
         Square feet                    115,000    115,000    115,000    115,000    115,000      115,000   115,000   115,000   115,000     115,000
         Capacity                           800        800        800        800        800          800       800       800       800         800
         Enrollment                         709        690        688        674        641          560       500       512       496         471
      Irmo Elementary (1933)
         Square feet                     86,674     86,674     86,674     86,674     86,674       86,674    86,674    86,674    86,674      86,674
         Capacity                           550        550        550        550        550          550       550       550       550         550
         Enrollment                         662        661        638        611        596          592       555       525       527         532
      Lake Murray Elementary (1997)
         Square feet                     89,859     89,859     89,859     89,859    102,842      102,842   102,842   102,842   102,842     102,842
         Capacity                           800        800        800        800        800          800       800       800       800         800
         Enrollment                         388        419        431        448        475          644       711       774       840         807
      Leaphart Elementary (1975)
         Square feet                     95,300     95,300     95,300     95,300     95,300       95,300    95,300    95,300    95,300      95,300
         Capacity                           750        750        750        750        750          750       750       750       750         725
         Enrollment                         562        587        575        585        585          569       582       582       569         546




112
                                                                                                                                              TABLE 20
                                                                                                                                             Page 2 of 3
      SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
      SCHOOL BUILDING INFORMATION
      LAST TEN FISCAL YEARS
      (unaudited)
                                                                                       Fiscal Year
                                        1998       1999       2000       2001       2002         2003       2004       2005       2006         2007

      Elementary (Continued)
      Nursery Road Elementary (1980)
         Square feet                    110,000    110,000    110,000    110,000    110,000     110,000     110,000    110,000    110,000      110,000
         Capacity                           800        800        800        800        800         800         800        800        800          800
         Enrollment                         786        797        796        766        687         704         706        691        703          654
      Oak Pointe Elementary (2007)
         Square feet                           -          -          -          -         -             -          -          -          -     110,390
         Capacity                              -          -          -          -         -             -          -          -          -         825
         Enrollment                            -          -          -          -         -             -          -          -          -         539
      River Springs Elementary (1997)
         Square feet                     99,899     99,899     99,899     99,899     99,899      99,899      99,899     99,899     99,899       99,899
         Capacity                           800        800        800        800        800         800         800        800        800          800
         Enrollment                         489        627        772        885        970         822         862        834        879          611
      Seven Oaks Elementary (1966)
         Square feet                     60,808     60,808     60,808     60,808     72,756      72,756      72,756     72,756     72,756       72,756
         Capacity                           550        550        550        550        550         550         550        550        550          550
         Enrollment                         459        452        451        437        425         481         501        495        543          557


      Middle
      Chapin Middle (1991)
         Square feet                    103,886    103,886    103,886    103,886    103,886     103,886     103,886    103,886    139,651      177,433
         Capacity                           800        800        800        800        800         800         800        800        800          900
         Enrollment                         562        609        659        680        715         720         782        810        863          883
      Cross Roads Middle (1971)
         Square feet                    148,194    148,194    148,194    148,194    148,194     148,194     148,194    148,194    148,194      148,194
         Capacity                         1,100      1,100      1,100      1,100      1,100       1,100       1,100      1,100      1,100        1,100
         Enrollment                       1,357        918        934      1,023        929       1,056       1,021      1,012      1,018        1,004
      Dutch Fork Middle (1998)
         Square feet                           -   142,901    142,901    142,901    142,901     142,901     142,901    142,901    142,901      142,901
         Capacity                              -     1,100      1,100      1,100      1,100       1,100       1,100      1,100      1,100        1,100
         Enrollment                            -       928        889        925      1,032       1,052       1,095      1,108      1,044        1,037
      Irmo Middle (1977)
         Square feet                    233,000    233,000    233,000    233,000    233,000     233,000     233,000    233,000    233,000      233,000
         Capacity                         1,100      1,100      1,100      1,100      1,100       1,100       1,100      1,100      1,100        1,100
         Enrollment                       1,511         993       982        949        930         955         995      1,092      1,087        1,044




113
                                                                                                                                                     TABLE 20
                                                                                                                                                    Page 3 of 3
      SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
      SCHOOL BUILDING INFORMATION
      LAST TEN FISCAL YEARS
      (unaudited)
                                                                                                   Fiscal Year
                                             1998         1999        2000         2001         2002         2003     2004      2005      2006        2007

      High
      Chapin High (1971)
         Square feet                         156,149      156,149    172,769       172,769      172,769     187,288   187,288   187,288   187,288     187,288
         Capacity                              1,150        1,150      1,150         1,150        1,150       1,150     1,150     1,150     1,150       1,150
         Enrollment                              750          765        797           800          847         914       955     1,057     1,111       1,166
      Dutch Fork High (1993)
         Square feet                         257,873      316,788    316,788       316,788      316,788     316,788   316,788   316,788   316,788     316,788
         Capacity                              2,000        2,000      2,000         2,000        2,000       2,000     2,000     2,000     2,000       2,000
         Enrollment                            1,571        1,673      1,735         1,778        1,784       1,782     1,882     1,966     2,079       2,076
      Irmo High (1964)
         Square feet                         327,000      327,000    327,000       327,000      343,121     343,121   343,121   343,121   343,121     343,121
         Capacity                              2,000        2,000      2,000         2,000        2,000       2,000     2,000     2,000     2,000       2,000
         Enrollment                            1,842        1,903      1,847         1,813        1,827       1,755     1,772     1,801     1,915       2,003


      Other
      Alternative School (1955)
          Square feet                         26,005       26,005      26,005       26,005       26,005      26,005    26,005    26,005    26,005      26,005
          Capacity                                99           99          99           99           99          99        99        99        99          99
          Enrollment                              55           67          63           60           72          70        64        82        68          73



      Source: Records maintained by the School District


      Note: Capacity stated as Core Capacity as developed by the Southern Management Group, Columbia, SC
            Enrollement as of the 135 day Average Daily Attendance report




114
                 SINGLE AUDIT SECTION
The following information is related to the annual single audit including the schedule of
expenditures of federal awards, findings and recommendations, and auditor’s reports on
internal control and compliance with applicable laws and regulations.
INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL
REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS

To the Honorable Chairman and Members of the Board of Trustees
School District Five of Lexington and Richland Counties
Irmo, South Carolina

We have audited the financial statements of School District Five of Lexington and Richland Counties as of and for
the year ended June 30, 2007, and have issued our report thereon dated January 26, 2008. We conducted our
audit in accordance with auditing standards generally accepted in the United States of America and the standards
applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of
the United States.

Internal Control Over Financial Reporting
In planning and performing our audit, we considered School District Five of Lexington and Richland Counties’
internal control over financial reporting as a basis for designing our auditing procedures for the purpose of
expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the
effectiveness of the District’s internal control over financial reporting. Accordingly, we do not express an opinion on
the effectiveness of the School District Five of Lexington and Richland Counties’ internal control over financial
reporting.

A control deficiency exists when the design or operation of a control does not allow management or employees, in
the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A
significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the entity's
ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally accepted
accounting principles such that there is more than a remote likelihood that a misstatement of the entity's financial
statements that is more than inconsequential will not be prevented or detected by the entity's internal control.

A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a
remote likelihood that a material misstatement of the financial statements will not be prevented or detected by the
entity's internal control.

Our consideration of internal control over financial reporting was for the limited purpose described in the first
paragraph of this section and would not necessarily identify all deficiencies in internal control that might be
significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over
financial reporting that we consider to be material weaknesses, as defined above.

Compliance and Other Matters
As part of obtaining reasonable assurance about whether School District Five of Lexington and Richland Counties’
financial statements are free of material misstatement, we performed tests of its compliance with certain provisions
of laws, regulations, contracts and grants, 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 that are required to be reported under Government Auditing Standards.

This report is intended solely for the information and use of the Board of Trustees, management, the South
Carolina Department of Education, and applicable federal agencies and is not intended to be and should not be
used by anyone other than these specified parties.



January 26, 2008




                                                                                                                              115
INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH
MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB
CIRCULAR A-133

To the Honorable Chairman and Members of the Board of Trustees
School District Five of Lexington and Richland Counties
Irmo, South Carolina

Compliance
We have audited the compliance of School District Five of Lexington and Richland Counties with the types of
compliance requirements described in the U.S. Office of Management and Budget (OMB) Circular A-133
Compliance Supplement that are applicable to each of its major federal programs for the year ended June 30,
2007. School District Five of Lexington and Richland Counties’ 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 of School District Five of Lexington and Richland Counties’ management. Our responsibility is to
express an opinion on the School District Five of Lexington and Richland Counties’ compliance based on our audit.

We conducted our audit of compliance in accordance with auditing standards generally accepted in the United
States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued
by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments,
and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the
audit to obtain reasonable assurance about whether noncompliance with the types of compliance 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 School District Five of Lexington and Richland Counties’
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 School District Five of Lexington and Richland Counties’ compliance with those
requirements.

In our opinion, School District Five of Lexington and Richland Counties 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, 2007.

Internal Control Over Compliance
The management of School District Five of Lexington and Richland Counties 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 School District Five of
Lexington and Richland Counties’ 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 but, not for the purpose of expressing an opinion on the effectiveness of
internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of School District
Five of Lexington and Richland Counties’ internal control over compliance.

A control deficiency in an entity's internal control over compliance exists when the design or operation of a control
does not allow management or employees, in the normal course of performing their assigned functions, to prevent
or detect noncompliance with a type of compliance requirement of a federal program on a timely basis. A
significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the entity's
ability to administer a federal program such that there is more than a remote likelihood that noncompliance with a
type of compliance requirement of a federal program that is more than inconsequential will not be prevented or
detected by the entity's internal control.




                                                                                                                              116
To the Honorable Chairman and Members of the Board of Trustees
School District Five of Lexington and Richland Counties
Page 2

A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than
a remote likelihood that material noncompliance with a type of compliance requirement of a federal program will not
be prevented or detected by any entity's internal control.

Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of
this section and would not necessarily identify all deficiencies in internal control that might be significant
deficiencies or material weaknesses. We did not identify any deficiencies in internal control over compliance that
we consider to be material weaknesses, as defined above.

This report is intended solely for the information and use of the Board of School Commissioners, management, the
South Carolina Department of Education, and applicable federal agencies and is not intended to be and should not
be used by anyone other than these specified parties.



January 26, 2008




                                                                                                                         117
SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2007


                                                                                                    Federal          Pass-Through
                                                                                                     CFDA              Grantor's               Expenditures
 Fund                  Federal Grantor/Pass-Through Grantor/Program Title                           Number             Number                     Paid

           U. S. DEPARTMENT OF EDUCATION

  846      Smaller Learning Communities                                                             84.215L                N/A             $        126,465
  859      Safe Schools/Healthy Students*                                                           84.184L                N/A                      710,300
892/894    Emergency Response & Crisis                                                              84.184E                N/A                      176,658

           Passed Through S.C. Department of Education
  201      Title I Grants to Local Educational Agencies *                                            84.010            07BA057                    1,162,915
  203      Handicapped Disabilities Act*                                                             84.027            07CA057                    2,953,606
  205      Special Education - Preschool Grants                                                      84.173            07CG057                      144,348
  207      Vocation Education                                                                        84.048            07VA057                      147,471
  209      Safe and Drug-Free Schools and Communities State Grants                                  84.186A            07FQ057                       47,365
  213      IDEA - Personnel Development                                                              84.027            07CO057                       21,931
  241      Title VI                                                                                  84.298            07BB057                       18,870
  243      Adult Education Federal Grant Program                                                     84.002            07EA057                       93,780
  267      Improving Teacher Quality*                                                                84.367            07TQ057                      301,533
  253      Enhancing Education Through Technology                                                    84.318            07ES057                        4,150
  264      Language Instruction for Limited English, Title II                                       84.365A            07BP057                       28,353
                                                                                                                                                  5,937,745

           NATIONAL FISH AND WILDLIFE FOUNDATION
825/827    National Fish and Wildlife                                                               15.FFB                 N/A                          143

           U. S. DEPARTMENT OF JUSTICE
  857      Drug Free Communities                                                                    16.729                 N/A                      102,448
  805      Truancy Attendance Improvement                                                           16.541                 N/A                       46,326
                                                                                                                                                    148,774

           U. S. DEPARTMENT OF LABOR
  845      Workforce Investment Act                                                                  17.259                N/A                        63,888

           U. S. DEPARTMENT OF HEALTH & HUMAN SERVICES
  893      Drug Free Communities Support: Coalition Mentoring Program                               93.276                 N/A                       18,741


           U.S. DEPARTMENT OF DEFENSE
831/832    NJROTC/AFJROTC                                                                           12.991                 N/A                      181,600

           U. S. DEPARTMENT OF AGRICULTURE
  600      Food Distribution *                                                                      10.550                 N/A                      344,807
  600      School Breakfast Program*                                                                10.553                 N/A                      357,700
  600      National School Lunch Program *                                                          10.555                 N/A                    1,632,757
                                                                                                                                                  2,335,264

           Total Federal Assistance Expended                                                                                               $      8,686,155


           * - Denotes major program




Summary of Significant Accounting Policies :

This schedule includes the federal grant activity of the School District Five of Lexington and Richland Counties and is presented on the accrual basis of
accounting. The information in this schedule is presented in accordance with the requirements of OMB Circular A-133, Audits of States, Local
Governments, and Non-Profit Organizations". The financial activity shown in this schedule reflects amounts recorded by the District during its fiscal year
July 1, 2006 through June 30, 2007 and, accordingly, does not include a full year's financial activity for grants awarded or terminated on dates not
coinciding with the District's year.




                                                                                                                                                               118
SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2007


1. Summary of Auditor’s Results:
   (i)    Type of report issued on financial statements                            Unqualified
   (ii)   Reportable material weaknesses in internal
           control over financial reporting                                        None Identified
   (iii)  Reportable conditions not considered to be
           material weaknesses in internal control                                 None Identified
   (iv)   Noncompliance material to the financial
           statements                                                              None Noted
   (v)    Material weaknesses in internal control over
           major programs                                                          None Identified
   (vi)   Reportable conditions not considered to be
           material weaknesses in internal control over
           major programs                                                          None Identified
   (vii)  Type of report issued on compliance for major
           programs                                                                Unqualified
   (viii) Audit findings required to be reported under
           paragraph .510(a) OMB 133                                               None Disclosed
   (ix)   Identification of major programs:
          U.S. Department of Agriculture:                             CFDA#            Expenditure
            Food Distribution                                         10.550       $      344,807
            School Breakfast Program                                  10.553              357,700
            National School Lunch Program                             10.555            1,632,757

                                                                  Total            $ 2,335,264
           Dollar threshold used to distinguish between Type A
           and Type B programs                                                     $ 300,000
   (x)     School District Five of Lexington and Richland Counties
           qualifies as a low risk auditee under paragraph .530 OMB 133            Yes

2. Findings related to the financial statements which are required
    to be reported in accordance with GAGAS                                        None Reported

3. Findings and questioned costs for Federal awards including audit
     findings as defined in paragraph .510(1) OMB 133
   (i)     Audit findings (e.g., internal control findings, compliance findings,
           questioned costs, or fraud)                                             None Reported

   (ii)    Audit findings which relate to both the financial statements and
           Federal awards                                                          None Reported




                                                                                                     119
SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
SCHEDULE OF SUMMARY OF PRIOR YEAR AUDIT FINDINGS
FOR THE YEAR ENDED JUNE 30, 2007


There are no prior audit findings and questioned costs relative to Federal Awards.




                                                                                     120
SCHOOL DISTRICT FIVE OF LEXINGTON AND RICHLAND COUNTIES
SCHEDULE OF CORRECTIVE ACTION PLAN
JUNE 30, 2007


No corrective action plan is required for the year ending June 30, 2007.




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