Richmond County schools Superintendent Charles Larke strongly denied Thursday any allegations that he mishandled more than $600,000 in taxpayer money by giving loans to employees.

On Wednesday, The Augusta Chronicle reported that several school board members were stunned to learn of the longtime arrangement. However, Dr. Larke said Thursday the money was given out with school board knowledge as "advances" to employees - a practice he said had been used since before he became superintendent in 1996.

"These cash advances, there's nothing in it for me," Dr. Larke said. "All I'm trying to do is retire with 40 years in grace."

School board attorney Pete Fletcher briefed board members on the allegations this week. For more than a month, he has been researching grounds for the superintendent's dismissal under the direction of the school board.

Dr. Larke, however, defended himself Thursday and said the employee loans were a longtime practice and most had been repaid. He said the $629,000 total given to board members was a "blanket" figure that included such things as corrected pay. The exact figure of how much money was given out in "advance" pay is still being calculated, but the outstanding balance is only $38,893.22, he said.

"We're just advancing them money they already earned," he said.

Dr. Larke also said the practice was no secret. He provided employee newsletters to The Chronicle that described the need to cut back on "early pay requests." Those newsletters were sent to all board employees and board members, he said. Several Richmond County school board members said, however, they don't remember any policy or authorization.

Dr. Larke said he continues to be blamed for things that aren't his fault. "I think it's a conspiracy to get rid of me," he said.

A meeting Tuesday between his attorney and Mr. Fletcher all but sealed an agreement that would end with the superintendent's retirement and a settlement of less than the value of his current contract, Dr. Larke said. With the loan allegations, that is no longer the case.

Board member A.K. Hasan said Thursday he has confidence that the board attorney is knowledgeable in what violates school system policies, particularly because Mr. Fletcher helps draft all policies.

Board Vice President Barbara Padgett, who has served longer than any current members, said she was unaware of any payments. "I'm just appalled," she said Thursday. "I'm just shocked."

There is also the question of legality.

Dr. Larke said Thursday the transactions were legal. He said state auditors said so two years ago, but suggested they would be more proper with a written policy. That policy is being written, but he has been operating under an administrative rule and direction of the board to offer the money on a case-by-case basis, he said.

Other sources aren't so sure.

Ronald E. Watson, director of the education audit division of the Georgia Department of Audits and Accounts, was out of town Thursday and unable to research the legality of the issue.

"I am not aware of a law that specifically addresses this issue but I do not think it would be a good business practice for a government entity to make personal loans," he wrote in an e-mail. "Also if the loans are interest free then that would probably raise other concerns."

School systems in Clayton, Bibb, Muscogee, Gwinnett and Fulton counties say they aren't in the practice of giving out loans or advances.

"You can't make an advance on employee salaries," said Alton Meyers, executive director of financial services for Atlanta City Public Schools.

Richmond County board members fumed Thursday.

"That's a lot of money, and that's not private money. That's taxpayer money," Ken Echols said. "My God, we're not in the banking business."

On this point, Dr. Larke agreed. In fact, he provided a DVD of a July 31 administrators meeting to The Chronicle. In the video, he urges administrators to cut back on "advance" payments, noting the school had become an "ATM machine."

Reach Greg Gelpi at (706) 828-3851 or greg.gelpi@augustachronicle.com.