On Nov. 10, 2003, Chief Murray

contacted Mr. Vernon Keenan, director of the Georgia Bureau of Investigation,

and requested the assistance of the GBI's Financial Investigative

Unit to review documents related to the operation of the venues. On Nov.

12, Chief Murray met with Special Agent Nancy L. Windom, Forensic Investigation

Unit Manager, and Special Agent in Charge of the Financial Investigative

Unit Steve Edwards. During the meeting, all documents that had been reviewed

analysis.

On Nov. 24, 2003 Chief Murray

again met with the GBI and was presented a letter dated Nov. 19, 2003

that stated "During this review, we found that the information provided

was insufficient to allow a determination as to whether a crime has been

committed." In addition, they suggested that a "more specific

review" be conducted based on the Development Authority audit for

the year ending Sept. 30, 2002. They also recommended that four specific

potentially problematic areas be addressed. The four areas listed were:

1. The accounts receivable

records are not being maintained and recorded on the Authority's

general ledger.

2. A large number of accounts

and retainage payables were not accrued by the Authority as of the end

of the fiscal year.

3. Advanced payments should

be recognized as deferred revenue until the period in which the revenue

has been earned.

4. Recording of transactions

to the city and from the city should be shown in separate accounts and

not net transactions.

The GBI has also stated that

in the event this audit uncovers any illegal activity, they are ready

and available to assist in the investigation.

It is important to mention

that during this review there were numerous suggestions that bad decision-making,

failure to disclose conflicts of interest and failure to follow proper

procedure were prevalent when the Development Authority and its members

were conducting Authority business. The purpose of this review was to

determine if a criminal offense occurred and was not intended to review

any possible ethics infringements. In many cases, the failure to have

a detailed operation plan specifically designed to hold accountable both

employees and members of the Authority for the proper accountability when

spending or obligating taxpayer dollars, has led to a cloud of supposition.

Chief Murray will recommend to the city that the recommendations of the

GBI be followed.

Letter from the GBI to Chief

Murray

Dear Chief Murray,

Our staff has reviewed the

documentation you provided to us Nov. 12, relating to the Development

Authority of Peachtree City and the City of Peachtree City. During this

review, we found that the information provided was insufficient to allow

a conclusive determination as to whether a crime has been committed.

It is our suggestion that you

recommend to the independent auditors that they closely review particular

areas of concern, as based on the Development Authority of Peachtree City

Audit Agenda for the year ending Sept. 20, 2002. A more specific review

of available records and other documentation may allow a more conclusive

determination to be made of whether any criminal acts have taken place.

In particular, we would suggest further examination of the following potentially

problematic areas:

1. The accounts receivable

records are not being maintained and recorded on the Authority's

general ledger.

2. A large number of accounts

and retainage payables were not accrued by the Authority as of the end

of the fiscal year.

3. Advanced payments should

be recognized as deferred revenue until the period in which the revenue

has been earned.

4. Recording of transactions

to the city and from the city should be shown in separate accounts and

not net transactions.

Please know that we are available

to assist you further with this matter, should additional audit findings

indicate the possibility that criminal acts have occurred. We certainly

enjoyed meeting you, and if you need further assistance from our office,

please call us at 404-212-4050.

Signed,

Nancy L. Windom

Forensic Investigation Unit

Manager

Financial Investigations Unit

Steve Edwards

Special Agent in Charge

Financial Investigations Unit