ANNUAL FINANCIAL REPORT • FISCAL YEAR 2024
DeKalb County Board of Education
Stone Mountain, Georgia
Including Independent Auditor’s Report
Greg S. Griffin | State Auditor
DeKalb County Board of Education
Table of Contents
Section I
Financial
Independent Auditor’s Report
Required Supplementary Information
Management’s Discussion and Analysis i
Exhibits
Basic Financial Statements
Government-Wide Financial Statements
A Statement of Net Position 1
B Statement of Activities 2
Fund Financial Statements
C Balance Sheet
Governmental Funds 3
D Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Position 4
E Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds 5
F Reconciliation of the Governmental Funds Statement of
Revenues, Expenditures and Changes in Fund Balances
to the Statement of Activities 6
G Notes to the Basic Financial Statements 7
Schedules
Required Supplementary Information
1 Schedule of Proportionate Share of the Net Pension Liability
Teachers Retirement System of Georgia 37
2 Schedule of Contributions – Teachers Retirement System of Georgia 38
3 Schedule of Proportionate Share of the Net Pension Liability
Employees’ Retirement System of Georgia 39
4 Schedule of Contributions – Employees’ Retirement System of Georgia 40
5 Schedule of Proportionate Share of the Net Pension Liability Public
School Employees Retirement System of Georgia 41
Required Supplementary Information (Continued)
6 Schedule of Proportionate Share of the Net OPEB Liability
School OPEB Fund 42
7 Schedule of Contributions – School OPEB Fund 43
8 Notes to the Required Supplementary Information 44
9 Schedule of Revenues, Expenditures and Changes in Fund
Balances - Budget and Actual General Fund 46
Supplementary Information
10 Schedule of Expenditures of Federal Awards 47
11 Schedule of State Revenue 49
12 Schedule of Approved Local Option Sales Tax Projects 50
Section II
Compliance and Internal Control Reports
Independent Auditor’s Report on Internal Control Over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Financial Statements Performed in
Accordance with Government Auditing Standards
Independent Auditor’s Report on Compliance for Each Major Federal Program and on
Internal Control Over Compliance Required by the Uniform Guidance
Section III
Auditee’s Response to Prior Year Findings and Questioned Costs
Summary Schedule of Prior Audit Findings
Section IV
Findings and Questioned Costs
Schedule of Findings and Questioned Costs
Section V
Management’s Corrective Action for Current Year Findings
Schedule of Management’s Corrective Action
Section I
Financial
Greg S. Griffin
State Auditor
INDEPENDENT AUDITOR’S REPORT
The Honorable Brian P. Kemp, Governor of Georgia
Members of the General Assembly of the State of Georgia
Members of the State Board of Education
and
Dr. Devon Horton, Superintendent and Members of the
DeKalb County Board of Education
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities and each major
fund of the DeKalb County Board of Education (School District) as of and for the year ended
June 30, 2024, and the related notes to the financial statements, which collectively comprise the School
District’s basic financial statements as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities and each major fund of the School District as
of June 30, 2024, and the respective changes in financial position for the year then ended in accordance
with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States
of America (GAAS) and the standards applicable to financial audits contained in Government Auditing
Standards issued by the Comptroller General of the United States. Our responsibilities under those
standards are further described in the Auditor's Responsibilities for the Audit of the Financial
Statements section of our report.
We are required to be independent of the School District and to meet our other ethical responsibilities,
in accordance with the relevant ethical requirements relating to our audit. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with accounting principles generally accepted in the United States of America, and for the
design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
270 Washington Street, SW, Suite 4-101 Atlanta, Georgia 30334 | Phone (404) 656-2180
In preparing the financial statements, management is required to evaluate whether there are conditions
or events, considered in the aggregate, that raise substantial doubt about the School District's ability to
continue as a going concern for twelve months beyond the financial statement date, including any
currently known information that may raise substantial doubt shortly thereafter.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor's report that
includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance
and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government
Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting
a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Misstatements are considered material if there is a substantial likelihood that, individually or in the
aggregate, they would influence the judgment made by a reasonable user based on the financial
statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements, whether due
to fraud or error, and design and perform audit procedures responsive to those risks. Such
procedures include examining, on a test basis, evidence regarding the amounts and disclosures
in the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the School District's internal control. Accordingly, no such
opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate,
that raise substantial doubt about the School District's ability to continue as a going concern for
a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit, significant audit findings, and certain internal control
related matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
Management's Discussion and Analysis and required supplementary information listed in the table of
contents be presented to supplement the basic financial statements. Such information is the
responsibility of management and, although not a part of the basic financial statements, is required by
the Governmental Accounting Standards Board who considers it to be an essential part of financial
reporting for placing the basic financial statements in an appropriate operational, economic, or
historical context. We have applied certain limited procedures to the required supplementary
information in accordance with GAAS, which consisted of inquiries of management about the methods
of preparing the information and comparing the information for consistency with management's
responses to our inquiries, the basic financial statements, and other knowledge we obtained during our
audit of the basic financial statements. We do not express an opinion or provide any assurance on the
information because the limited procedures do not provide us with sufficient appropriate evidence to
express an opinion or provide any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the School District’s basic financial statements. The accompanying supplementary
information, as listed in the table of contents, is presented for the purposes of additional analysis and is
not a required part of the basic financial statements. The Schedule of Expenditures of Federal Awards
is presented for purposes of additional analysis as required by Title 2 U.S. Code of Federal Regulations
(CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for
Federal Awards, and is also not a required part of the basic financial statements.
The supplementary information is the responsibility of management and was derived from and relates
directly to the underlying accounting and other records used to prepare the basic financial statements.
Such information has been subjected to the auditing procedures applied in the audit of the basic
financial statements and certain additional procedures, including comparing and reconciling such
information directly to the underlying accounting and other records used to prepare the basic financial
statements or to the basic financial statements themselves, and other additional procedures in
accordance with GAAS. In our opinion, the information is fairly stated, in all material respects, in
relation to the basic financial statements as a whole.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
June 5, 2025 on our consideration of the School District’s internal control over financial reporting and
on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant
agreements and other matters. The purpose of that report is solely 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 effectiveness of the School District’s internal control over financial reporting
or on compliance. That report is an integral part of an audit performed in accordance with Government
Auditing Standards in considering the School District’s internal control over financial reporting and
compliance.
A copy of this report has been filed as a permanent record and made available to the press of the State,
as provided for by Official Code of Georgia Annotated section 50-6-24.
Respectfully submitted,
Greg S. Griffin
State Auditor
June 5, 2025
DEKALB COUNTY BOARD OF EDUCATION
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
INTRODUCTION
The discussion and analysis of the DeKalb County Board of Education's financial performance provides
an overall review of the Board's financial activities for the fiscal year ended June 30, 2024. The intent
of this discussion and analysis is to look at the Board's financial performance as a whole; readers
should also review the notes to the basic financial statements and the financial statements to enhance
their understanding of the Board's financial performance.
The reporting model is a combination of both government-wide financial statements and fund financial
statements. The basic financial statements contain three components:
1. Government-wide financial statements include the Statement of Net Position and the
Statement of Activities which provide a long-term view of the Board’s finances and presents
on the full accrual basis of accounting.
2. Fund financial statements including the Balance Sheet and Statement of Revenues,
Expenditures and Changes in Fund Balances that provides increased detail on the Board’s
short-term performance by major fund and presents on the modified accrual basis of
accounting.
3. Notes to the financial statements.
FINANCIAL HIGHLIGHTS
Key financial highlights for fiscal year 2024 are as follows:
On the full accrual, government-wide financial statements:
In total, net position increased $207.49 million over the prior year net position. Net position
reflects the difference between all assets and deferred outflows of resources of the Board
(including capital assets, net of depreciation) and all liabilities and deferred inflows of
resources. This increase is primarily attributable to revenues in excess of program
expenditures, capital assets growth, a reduction in long term liabilities and favorable changes
to the net pension liability.
Long-term liabilities decreased by $23.48 million from the prior year. This decrease is due to
payments made by the Board during the current year to reduce the overall debt and liability
burden.
The Board had $1.77 billion in expenses relating to governmental activities, of which
only $849.49 million of these expenses were offset by program specific charges for services,
grants and contributions. However, general revenues (primarily property and sales taxes)
of $1.13 billion were adequate to provide for these program deficits.
General revenues, as stated on the Statement of Activities accounted for $1.13 billion or
about 57.04% of all revenues, while program specific revenues in the form of charges for
services, grants and contributions accounted for the remainder.
i
DEKALB COUNTY BOARD OF EDUCATION
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
On the modified accrual, fund financial statements:
Among major funds, the general fund had $1.78 billion in revenues and $1.71 billion in
expenditures. The general fund's increase in fund balance was $75.05 million, which is a
decrease from the prior year change of $129.55 million.
The capital projects fund had $182.12 million in revenues and $104.45 million in
expenditures. The capital projects fund's increase in fund balance was $77.72 million, which is
a decrease from the prior year change of $102.41 million.
Using the Basic Financial Statements
This annual report consists of a series of financial statements and notes to those statements. These
statements are organized so the reader can understand the DeKalb County Board of Education as a
financial whole, or as an entire operating entity.
The Statement of Net Position and Statement of Activities provide information about the activities of
the whole Board, presenting both an aggregate view of the Board's finances and a longer-term view of
those finances. Fund financial statements provide the next level of detail. For governmental funds,
these statements tell how services were financed in the short-term as well as what remains for future
spending. The fund financial statements also look at the Board's most significant funds. In the case of
the DeKalb County Board of Education, the general fund is by far the most significant fund.
Reporting the Board as a Whole
Statement of Net Position and the Statement of Activities
While this document includes a number of funds used by the Board to provide programs and activities,
a view of the Board as a whole requires looking at all financial transactions to ask the question, "How
did we do financially during 2024?" The Statement of Net Position and the Statement of Activities
answer this question. These statements include all assets and liabilities using the accrual basis of
accounting 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 cash is received
or paid.
These two statements report the Board's net position and changes in net position. This change in net
position is important because it tells the reader that, for the Board as a whole, the financial position
of the Board has improved or diminished. The causes of this change may be a result of many factors,
some financial, some not. Nonfinancial factors include the Board's property tax digest base, facility
conditions, required educational programs and other factors.
In the Statement of Net Position and the Statement of Activities, the Board has one distinct type of
activity:
Governmental Activities – All of the Board's programs and services are reported here including
instruction, pupil services, improvement of instructional services, educational media services,
general administration, school administration, business administration, maintenance and
operation of plant, student transportation services, central support services, enterprise
operations, food services and interest on debt.
ii
DEKALB COUNTY BOARD OF EDUCATION
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
Reporting the Board's Most Significant Funds
Fund Financial Statements
Fund financial reports provide detailed information about the Board's major funds. The Board uses
many funds to account for a multitude of financial transactions. However, these fund financial
statements focus on the Board's most significant funds. The Board's major governmental funds are
the general fund, capital projects funds, and the debt service fund.
Governmental Funds: Most of the Board's activities are reported in governmental funds, which focus
on how money flows into and out of those funds and the balances left at year-end available for
spending in future periods. These funds are reported using an accounting method called modified
accrual accounting, which measures cash and all other financial assets that can readily be converted
to cash. The governmental fund statements provide a detailed short-term view of the Board's general
government operations and the basic 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 educational programs. The relationship (or differences) between governmental activities
(reported in the Statement of Net Position and the Statement of Activities) and governmental funds is
reconciled in the financial statements.
iii
DEKALB COUNTY BOARD OF EDUCATION
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
The Board as a Whole
The perspective of the Statement of Net Position is of the Board as a whole. Table 1 provides a
summary of the Board's net position for fiscal year 2024 compared to fiscal year 2023.
Ta ble 1
N e t Po sitio n
Governmental Activities
Fiscal Year Fiscal Year
2024 2023
Asse ts
Current and Other Assets $ 1,424,624,462 $ 1,176,880,942
Capital Assets, Net 1,712,181,457 1,638,481,063
To tal Asse ts 3,136,805,919 2,815,362,005
De fe rre d Outflo w s o f Re so urce s
Related to Defined Benefit Pension Plans 453,639,352 763,377,160
Related to OPEB Plan 155,253,177 145,546,334
To tal De fe rre d Outflo w s o f Re so urce s 608,892,529 908,923,494
Liabilitie s
Current Liabilities 308,862,627 226,970,060
Net Pension Liability 1,366,335,574 1,597,950,960
Net OPEB Liability 612,766,195 586,396,320
Other Long-Term Liabilities 35,830,744 59,314,924
To tal Lia bilitie s 2,323,795,140 2,470,632,264
De fe rre d Inflo w s o f Re so urce s
Related to Defined Benefit Pension Plans 85,459,268 57,515,995
Related to OPEB Plan 323,738,283 390,926,358
To tal De fe rre d Inflo w s o f Re so urce s 409,197,551 448,442,353
N e t Po sitio n
Net Investment in Capital Assets 1,652,342,359 1,618,216,635
Restricted 623,116,566 523,851,087
Unrestricted (1,262,753,168) (1,336,856,840)
To tal N e t Po sitio n $ 1,012,705,757 $ 805,210,882
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DEKALB COUNTY BOARD OF EDUCATION
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
Table 2 shows the Changes in Net Position for fiscal year ending 2024 compared to 2023.
Table 2
C hange in N et Po sition
Governmental Activities
Fiscal Year Fiscal Year
2024 2023
Revenues
Program Revenues:
Charges for Services $ 4,118,922 $ 3,018,500
Operating Grants and Contributions 835,765,262 737,567,402
Capital Grants and Contributions 9,608,932 9,982,512
Total Program Revenues 849,493,116 750,568,414
General Revenues:
Property Taxes - Maintenance and Operations 885,143,938 800,025,234
Sales Tax - Special Purpose Local Option Tax for Capital Projects 150,986,248 154,165,749
Other Sales Tax 12,936,930 -
Investment Earnings 53,205,606 14,440,337
Miscellaneous 25,500,403 37,330,378
Total General Revenues 1,127,773,125 1,005,961,698
Total Revenues 1,977,266,241 1,756,530,112
Program Ex penses:
Instruction 1,050,730,487 896,889,116
Support Services
Pupil Services 125,599,598 104,353,499
Improvement of Instructional Services 58,682,182 47,695,705
Educational Media Services 18,835,835 17,106,192
General Administration 34,072,053 48,223,875
School Administration 86,817,094 82,894,437
Business Administration 18,581,206 15,055,006
Maintenance and Operation of Plant 175,981,899 140,597,783
Student Transportation Services 84,482,752 69,032,384
Central Support Services 42,384,267 33,579,134
Other Support Services 1,818,126 1,324,514
Operations of Non-Instructional Services
Enterprise Operations 6,443,490 -
Food Services 65,322,225 72,542,048
Interest on Long-Term Debt 20,152 5,845,703
Total Expenses 1,769,771,366 1,535,139,396
Change in Net Position 207,494,875 221,390,716
Beginning Net Position 805,210,882 583,820,166
Ending Net Position $ 1,012,705,757 $ 805,210,882
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DEKALB COUNTY BOARD OF EDUCATION
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
Governmental Activities
Instruction, pupil services and improvement of instructional services comprised the majority of
governmental program expenses with 69.78%. Additional needed support services such as student
transportation, maintenance, and administration comprise 26.16% of program expenses, while non-
instructional services comprise the remaining 4.06%. Non-instructional services provided consist
primarily of school nutrition and enterprise operations.
The Statement of Activities shows the cost of program services and the charges for services and grants
offsetting those services. Table 3 below shows, for governmental activities, the net cost of services for
fiscal year 2024 compared to fiscal year 2023. That is, it identifies the cost of these services that are
supported by tax revenue and unrestricted state entitlements.
Table 3
Governmental Activities
Net Cost of Services
Fiscal Year Fiscal Year
2024 2023
Instruction $ 489,848,977 $ 437,105,860
Support Services:
Pupil Services 77,307,721 74,537,728
Improvement of Instructional Services 19,275,366 18,683,454
Educational Media Services 3,206,183 2,881,402
General Administration 12,750,691 10,099,560
School Administration 51,766,219 48,413,781
Business Administration 17,750,139 14,879,140
Maintenance and Operation of Plant 130,093,664 97,507,782
Student Transportation Services 68,069,811 54,413,049
Central Support Services 39,468,845 23,618,905
Other Support Services 1,330,310 406,573
Operations of Non-Instructional Services:
Enterprise Operations 6,422,889 -
Community Service (1,312) -
Food Services 2,948,594 (3,821,955)
Interest on Long-Term Debt 20,153 5,845,703
Total Expenses $ 920,278,250 $ 784,570,982
Program revenues, primarily derived from state and federal funding, make up only 42.96% of total
revenue. To cover the revenue shortfall needed to fund vital services, the Board is dependent upon
tax revenues to support the full range of governmental activities.
The Board’s broad tax base is sufficient to cover shortfalls in these operational activities. In addition
to program revenues, tax and other general revenues of $1.13 billion were collected sufficiently to
fund the shortfall across instruction and other operational activities.
vi
DEKALB COUNTY BOARD OF EDUCATION
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
General Fund Budgeting Highlights
The Board’s budget is prepared according to Georgia law and utilizes a zero-based, site-specific
budgeting approach. The most significant budgeted fund is the general fund. The budgeting systems
are designed to provide flexibility and ensure proper monitoring of total site based budgets.
The anticipated budgeted revenues for the final general fund budget were $2.04 billion, against
anticipated budgeted expenditures of $2.13 billion. Although actual general fund revenues
underperformed budgeted estimates, due to the Board's increased emphasis on expenditure control
and dedicated efforts to grow fund balance, actual expenditures were less than budgeted.
During fiscal year 2024, the Board continued to improve operational reserves as the excess of
revenues over expenditures helped increase fund balance for the general fund by $75.05 million. This
reserve is vitally important to ensure continuity of services in the advent of an economic downturn, a
substantial decrease in revenue, or an unexpended increase in expenditures.
Capital Assets and Long-Term Liabilities
Capital Assets
At the end of fiscal year 2024, the Board had $1.71 billion invested in capital assets, net of
accumulated depreciation and amortization, all in governmental activities. Table 4 shows fiscal
year 2024 balances compared with fiscal year 2023 balances.
Table 4
C apital Assets
(N et of Depreciation and Am ortiz ation)
Governmental Activities
Fiscal Year Fiscal Year
2024 2023
Land $ 71,178,768.00 $ 71,178,768.00
Construction in Progress 127,984,445.00 60,165,505.00
Buildings and Improvement 1,399,105,343.00 1,391,087,580.00
Equipment 71,329,134.00 73,556,840.00
Land Improvements 39,477,622.00 39,059,263.00
Intangible Assets 3,106,145.00 3,433,107.00
Total $ 1,712,181,457.00 $ 1,638,481,063.00
Long-Term Liabilities
At the year of fiscal year 2024, long-term debt was $35.83 million, a substantial decrease of $23.48
million from the previous year, improving the Board's financial position. The Board's commitment to
continued debt reductions helps ensure that future generations of students benefit from higher
proportions of funding serving students as opposed to debt, stream-lined financial operations, and
increased spending flexibility.
vii
DEKALB COUNTY BOARD OF EDUCATION
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
Table 5 summarizes long-term liabilities outstanding and compares fiscal year 2024 balances to fiscal
year 2023 balances.
Table 5
Debt at June 30
Governmental Activities
Fiscal Year Fiscal Year
2024 2023
Qualified School Construction Bonds $ - $ 5,690,000.00
Claims and Judgements 22,500,000.00 45,000,000.00
Compensated Absences 13,330,744.00 8,624,924.00
Total $ 35,830,744.00 $ 59,314,924.00
Current Issues
On the modified accrual, fund financial statements, our combined revenue from all sources
increased 9.88% between fiscal years 2024 and 2023. Local revenues from property taxes benefited
from reassessments and new construction and grew at 10.04%. Federal funding was also higher
because of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, and subsequently the
American Rescue Plan (ARP). In addition, investment revenue grew substantially. As the Federal
Reserve systematically increased the effective federal funds rate to battle inflation, investment
opportunities within Georgia Fund 1, a local government investment pool administered by the State of
Georgia, Office of the State Treasurer, grew. The monthly returns within Georgia Fund 1 exceeded 5%
for all months during the fiscal year and yielded approximately $53.21 million dollars. This is a growth
of 137.48% from the prior year.
Although state revenues, primarily derived from the Quality Basic Education formula, grew at 4.21%,
the growth has not kept pace with inflation and associated cost increases experienced to meet student
needs. Improvement in funding from the other sources noted above helped allow the Board to cover
operational funding shortfalls. There has been a shift more towards the reliance on funding sources
other than the State between fiscal years 2024 and 2023.
DeKalb County Board of Education continues to be the most diverse school system in the state of
Georgia. There are more than 91,000 students, 172 spoken languages, 138 schools and centers and
roughly 14,000 staff members. Although the coronavirus (COVID-19) pandemic that began to spread
worldwide in December 2019 is officially over, the effects on the Board’s large and diverse student
body are not. The Board’s intentional focus to provide adequate social and emotional support and
offer supplemental educational recovery opportunities strains financial resources.
During the fiscal year the Board added health clinics at multiple sites to address the growing health
needs of students, staff and the community. Additional high dosage tutoring opportunities were added
to help offset and address loss or stagnant student academic progress resulting from the pandemic.
The Board also made intentional investments in safety and security. There was an expansion of
advanced weapons detection systems and intruder alert systems. Commitments were also honored to
provide additional formal and informal security at athletic events. Enhanced security measures were
also taken to facilities. Significant projects adding secure vestibules and ballistic resistant glazes on
windows were completed or began during the fiscal year.
viii
DEKALB COUNTY BOARD OF EDUCATION
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
On another front, inflation continues to be a concern for the Board. Although inflation has cooled in
the last year, the cost of supplies and equipment continued to climb. To compound things, health
insurance, contracted professional services, labor and construction has outpaced key inflationary
metrics. During the budget preparation for the current year, the Board acknowledged these trends and
approved additional operational budget authority and salary increases for all staff to help maintain
their current standard of living.
DeKalb County Board of Education is geographically located within an urban setting and must compete
with other surrounding school systems and the private labor market. The Board is challenged with
keeping teacher and support staff compensation aggressively competitive and remains laser focused
on maintaining and growing staff. Though the turnover of staff slowed over the course of the fiscal
year, there is still a shortage of classified employees and especially bus drivers.
As a result of these conditions and circumstances, the Board’s cost to educate students are at an all-
time high.
Factors Bearing on the Board’s District’s Future
As the Board looks forward, federal revenues are expected to decline. The Coronavirus Aid, Relief, and
Economic Security (CARES) Act, and the American Rescue Plan (ARP) grants have ended. Revenue
from various title grants are also anticipated to decline. State funding by way of the Quality Basic
Education formula is expected to grow slowly and remain in line with any mandated salary or health
insurance increases. The local housing market and overall tax digest is not expected to grow at rates
seen the past few years. This will lead to slower growth in property tax revenue.
Though overall revenue growth is anticipated to slow, the pressure to keep educator compensation
high, remains. The Board must stay competitive, flexible and be able to react to changes in the local
labor market and consistently meet the needs of employees.
Health insurance costs continue to skyrocket. The Georgia Department of Community Health has
already planned and communicated increases to provide certified and classified health insurance
through the State Health Benefit Plan. Inflation is also expected to persist in future years, leading to
ever expanding cost to build and maintain facilities.
The DeKalb County Board of Education is keenly aware of these future constraints and have taken
financial planning measures to help ensure the continuity and success of the organization. Intentional
efforts have made to protect and grow fund balance reserves. These reserves will help address local
capital improvement needs, facility repair, investments in our staff, and serve as a buffer protecting
the Board against significant declines in revenue or unanticipated, significant expenses.
Contacting the Board's Financial Management
This financial report is designed to provide our citizens, taxpayers, investors and creditors with a
general overview of the Board's finances and to show the Board's accountability for the money it
receives. If you have questions about this report or need additional financial information, contact Byron
Schueneman, Chief Financial Officer, at the DeKalb County Board of Education, 1701 Mountain
Industrial Boulevard, Stone Mountain, Georgia, 30083.
ix
DeKalb County Board of Education
DEKALB COUNTY BOARD OF EDUCATION EXHIBIT "A"
STATEMENT OF NET POSITION
JUNE 30, 2024
GOVERNMENTAL
ACTIVITIES
ASSETS
Cash and Cash Equivalents $ 1,223,452,190.26
Accounts Receivable, Net
Interest 1,243.64
Taxes 38,366,928.09
State Government 86,825,678.31
Federal Government 66,731,866.74
Local 3,142.79
Other 7,654,748.00
Inventories 1,588,663.88
Capital Assets, Non-Depreciable 199,163,212.70
Capital Assets, Depreciable (Net of Accumulated Depreciation) 1,513,018,244.51
Total Assets 3,136,805,918.92
DEFERRED OUTFLOWS OF RESOURCES
Related to Defined Benefit Pension Plans 453,639,352.10
Related to OPEB Plan 155,253,177.27
Total Deferred Outflows of Resources 608,892,529.37
LIABILITIES
Accounts Payable 29,364,991.68
Salaries and Benefits Payable 164,483,025.82
Payroll Withholdings Payable 40,377,972.62
Claims Incurred but not Reported (IBNR) 14,797,539.00
Contracts Payable 54,522,777.99
Retainages Payable 5,316,320.12
Net Pension Liability 1,366,335,574.00
Net OPEB Liability 612,766,195.00
Long-Term Liabilities
Due Within One Year 22,500,000.00
Due in More Than One Year 13,330,744.15
Total Liabilities 2,323,795,140.38
DEFERRED INFLOWS OF RESOURCES
Related to Defined Benefit Pension Plans 85,459,268.00
Related to OPEB Plan 323,738,283.00
Total Deferred Inflows of Resources 409,197,551.00
NET POSITION
Net Investment in Capital Assets 1,652,342,359.10
Restricted for
Continuation of Federal Programs 28,344,820.67
Capital Projects 594,771,745.41
Unrestricted (Deficit) (1,262,753,168.27)
Total Net Position $ 1,012,705,756.91
The notes to the basic financial statements are an integral part of this statement. -1-
DEKALB COUNTY BOARD OF EDUCATION EXHIBIT "B"
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2024
PROGRAM REVENUES NET (EXPENSES)
OPERATING CAPITAL REVENUES
CHARGES FOR GRANTS AND GRANTS AND AND CHANGES IN
EXPENSES SERVICES CONTRIBUTIONS CONTRIBUTIONS NET POSITION
GOVERNMENTAL ACTIVITIES
Instruction $ 1,050,730,486.88 $ 1,442,397.54 $ 551,126,159.70 $ 8,312,953.05 $ (489,848,976.59)
Support Services
Pupil Services 125,599,598.43 - 48,204,563.97 87,313.05 (77,307,721.41)
Improvement of Instructional Services 58,682,181.76 - 39,262,552.52 144,262.83 (19,275,366.41)
Educational Media Services 18,835,834.61 - 15,582,666.03 46,985.24 (3,206,183.34)
General Administration 34,072,052.58 - 21,319,741.82 1,619.68 (12,750,691.08)
School Administration 86,817,093.73 - 35,049,572.91 1,302.22 (51,766,218.60)
Business Administration 18,581,206.38 - 830,440.07 626.96 (17,750,139.35)
Maintenance and Operation of Plant 175,981,898.78 158.82 45,109,544.39 778,531.62 (130,093,663.95)
Student Transportation Services 84,482,752.29 1,671,924.03 14,741,017.22 - (68,069,811.04)
Central Support Services 42,384,266.98 - 2,773,450.97 141,971.33 (39,468,844.68)
Other Support Services 1,818,125.97 - 487,815.73 - (1,330,310.24)
Operations of Non-Instructional Services
Enterprise Operations 6,443,489.86 - 601.32 - (6,442,888.54)
Community Services - 1,311.64 - - 1,311.64
Food Services 65,322,225.24 1,003,130.29 61,277,134.98 93,365.83 (2,948,594.14)
Interest on Long-Term Debt 20,152.50 - - - (20,152.50)
Total Governmental Activities $ 1,769,771,365.99 $ 4,118,922.32 $ 835,765,261.63 $ 9,608,931.81 (920,278,250.23)
General Revenues
Taxes
Property Taxes
For Maintenance and Operations 885,143,937.60
Sales Taxes
Special Purpose Local Option Sales Tax
For Capital Projects 150,986,248.40
Other Sales Tax 12,936,930.42
Investment Earnings 53,205,605.82
Miscellaneous 25,500,402.60
Total General Revenues 1,127,773,124.84
Change in Net Position 207,494,874.61
Net Position - Beginning of Year 805,210,882.30
Net Position - End of Year $ 1,012,705,756.91
The notes to the basic financial statements are an integral part of this statement. -2-
DEKALB COUNTY BOARD OF EDUCATION EXHIBIT "C"
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2024
CAPITAL DEBT
GENERAL PROJECTS SERVICE
FUND FUND FUND TOTAL
ASSETS
Cash and Cash Equivalents $ 609,058,074.08 $ 614,394,116.18 $ - $ 1,223,452,190.26
Accounts Receivable, Net
Interest - 1,243.64 - 1,243.64
Taxes 25,673,202.09 12,693,726.00 - 38,366,928.09
State Government 78,766,812.81 8,058,865.50 - 86,825,678.31
Federal Government 66,731,866.74 - - 66,731,866.74
Local 3,142.79 - - 3,142.79
Other 7,654,748.00 - - 7,654,748.00
Due from Other Funds 5,036,811.57 - - 5,036,811.57
Inventories 1,588,663.88 - - 1,588,663.88
Total Assets $ 794,513,321.96 $ 635,147,951.32 $ - $ 1,429,661,273.28
LIABILITIES
Accounts Payable $ 28,512,735.95 $ 852,255.73 $ - $ 29,364,991.68
Salaries and Benefits Payable 164,483,025.82 - - 164,483,025.82
Payroll Withholdings Payable 40,377,972.62 - - 40,377,972.62
Due to Other Funds - 5,036,811.57 - 5,036,811.57
Contracts Payable 20,216,972.19 34,305,805.80 - 54,522,777.99
Retainages Payable 402,452.97 4,913,867.15 - 5,316,320.12
Total Liabilities 253,993,159.55 45,108,740.25 - 299,101,899.80
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue - Property Taxes 16,225,733.88 - - 16,225,733.88
Unavailable Revenue - Georgia State Financing and Investment Commission - 8,058,865.50 - 8,058,865.50
Unavailable Revenue - Federal Funds 3,514,668.17 - - 3,514,668.17
Total Deferred Inflows of Resources 19,740,402.05 8,058,865.50 - 27,799,267.55
FUND BALANCES
Nonspendable 1,588,663.88 - - 1,588,663.88
Restricted 27,774,096.20 555,552,072.46 - 583,326,168.66
Assigned 8,917,643.66 26,428,273.11 - 35,345,916.77
Unassigned 482,499,356.62 - - 482,499,356.62
Total Fund Balances 520,779,760.36 581,980,345.57 - 1,102,760,105.93
Total Liabilities, Deferred Inflows
of Resources, and Fund Balances $ 794,513,321.96 $ 635,147,951.32 $ - $ 1,429,661,273.28
The notes to the basic financial statements are an integral part of this statement. -3-
DEKALB COUNTY BOARD OF EDUCATION EXHIBIT "D"
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE STATEMENT OF NET POSITION
JUNE 30, 2024
Total fund balances - governmental funds (Exhibit "C") $ 1,102,760,105.93
Amounts reported for governmental activities in the Statement of Net Position are
different because:
Capital assets used in governmental activities are not financial resources
and therefore are not reported in the funds.
Land $ 71,178,767.96
Construction in progress 127,984,444.74
Buildings and improvements 2,103,732,939.87
Equipment 170,447,106.78
Land improvements 59,505,074.17
Intangible Assets 6,079,639.78
Accumulated depreciation and amortization (826,746,516.09) 1,712,181,457.21
Some liabilities are not due and payable in the current period and,
therefore, are not reported in the funds.
Net pension liability $ (1,366,335,574.00)
Net OPEB liability (612,766,195.00) (1,979,101,769.00)
Deferred outflows and inflows of resources related to pensions/OPEB are
applicable to future periods and, therefore, are not reported in the funds.
Related to pensions $ 368,180,084.10
Related to OPEB (168,485,105.73) 199,694,978.37
Taxes that are not available to pay for current period expenditures are
deferred in the funds. 16,225,733.88
Georgia State Financing and Investment Commission grants that are not
available to pay current period expenditures are deferred in the funds. 8,058,865.50
Revenue that are not available to pay current period expenditures are
deferred in the funds. 3,514,668.17
Long-term liabilities, and related accrued interest, are not due and payable
in the current period and therefore are not reported in the funds.
Compensated absences payable $ (13,330,744.15)
Claims and judgments payable (22,500,000.00)
Claims incurred but not reported (IBNR) (14,797,539.00) (50,628,283.15)
Net position of governmental activities (Exhibit "A") $ 1,012,705,756.91
The notes to the basic financial statements are an integral part of this statement. -4-
DEKALB COUNTY BOARD OF EDUCATION EXHIBIT "E"
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2024
CAPITAL DEBT
GENERAL PROJECTS SERVICE
FUND FUND FUND TOTAL
REVENUES
Property Taxes $ 882,819,241.33 $ - $ - $ 882,819,241.33
Sales Taxes 12,936,930.42 150,986,248.40 - 163,923,178.82
State Funds 562,557,339.72 1,117,376.29 - 563,674,716.01
Federal Funds 269,871,280.67 432,690.02 - 270,303,970.69
Charges for Services 4,118,922.32 - - 4,118,922.32
Investment Earnings 23,621,148.81 29,584,457.01 - 53,205,605.82
Miscellaneous 25,444,012.48 1,254.68 - 25,445,267.16
Total Revenues 1,781,368,875.75 182,122,026.40 - 1,963,490,902.15
EXPENDITURES
Current
Instruction 965,950,820.82 1,112,330.60 - 967,063,151.42
Support Services
Pupil Services 119,637,499.69 - - 119,637,499.69
Improvement of Instructional Services 52,370,489.20 2,173,429.08 - 54,543,918.28
Educational Media Services 17,685,474.59 - - 17,685,474.59
General Administration 55,249,915.34 - - 55,249,915.34
School Administration 80,066,618.96 - - 80,066,618.96
Business Administration 17,564,023.56 - - 17,564,023.56
Maintenance and Operation of Plant 169,104,856.05 782,736.43 - 169,887,592.48
Student Transportation Services 80,402,392.40 - - 80,402,392.40
Central Support Services 36,324,158.24 3,410,179.64 - 39,734,337.88
Other Support Services 1,805,540.55 - - 1,805,540.55
Enterprise Operations 6,443,489.86 - - 6,443,489.86
Food Services Operation 65,279,933.03 - - 65,279,933.03
Capital Outlay 38,651,757.30 91,159,585.25 - 129,811,342.55
Debt Services
Principal - 5,690,000.00 - 5,690,000.00
Interest - 120,912.50 - 120,912.50
Total Expenditures 1,706,536,969.59 104,449,173.50 - 1,810,986,143.09
Revenues over (under) Expenditures 74,831,906.16 77,672,852.90 - 152,504,759.06
OTHER FINANCING SOURCES (USES)
Sale of Capital Assets 214,735.20 - - 214,735.20
Transfers In - 47,604.51 - 47,604.51
Transfers Out - - (47,604.51) (47,604.51)
Total Other Financing Sources (Uses) 214,735.20 47,604.51 (47,604.51) 214,735.20
Net Change in Fund Balances 75,046,641.36 77,720,457.41 (47,604.51) 152,719,494.26
Fund Balances - Beginning 445,733,119.00 504,259,888.16 47,604.51 950,040,611.67
Fund Balances - Ending $ 520,779,760.36 $ 581,980,345.57 $ - $ 1,102,760,105.93
The notes to the basic financial statements are an integral part of this statement. -5-
DEKALB COUNTY BOARD OF EDUCATION EXHIBIT "F"
RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF
REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
TO THE STATEMENT OF ACTIVITIES
JUNE 30, 2024
Net change in fund balances total governmental funds (Exhibit "E") $ 152,719,494.26
Amounts reported for governmental activities in the Statement of Activities are
different because:
Governmental funds report capital outlays as expenditures. However,
in the Statement of Activities, the cost of capital assets is allocated over
their estimated useful lives as depreciation/amortization expense.
Capital outlay $ 129,862,967.59
Depreciation/Amortization (56,002,973.83) 73,859,993.76
The net effect of various miscellaneous transactions involving capital assets
(i.e., sales, trade-ins, donations, and disposals) is to decrease net position. (159,599.75)
Taxes reported in the Statement of Activities that do not provide current
financial resources are not reported as revenues in the funds. 16,225,733.88
Taxes deferred in the funds in the prior year but recognized as revenue
in the current year. (13,901,037.61)
Federal revenue reported in the Statement of Activities that do not provide current
financial resources are not reported as revenues in the funds. 3,514,668.17
Georgia State Financing and Investment Commission grants reported in the
Statement of Activities that do not provide current financial resources are
not reported as revenue in the funds. 8,058,865.50
The issuance of long-term debt 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 position. Also, governmental funds
report the effect of premiums, discounts and the difference between the
carrying value of refunded debt and the acquisition cost of refunded debt when
debt is first issued. These amounts are deferred and amortized in the Statement
of Activities.
Qualified School Construction Bonds payment 5,690,000.00
District pension/OPEB contributions are reported as expenditures in the
governmental funds when made. However, they are reported as deferred
outflows of resources in the Statement of Net Position because the reported
net pension/OPEB liability is measured a year before the District's report date.
Pension/OPEB expense, which is the change in the net pension/OPEB liability
adjusted for changes in deferred outflows and inflows of resources related
to pensions/OPEB, is reported in the Statement of Activities.
Pension expense $ (106,065,694.90)
OPEB expense 50,525,043.27 (55,540,651.63)
Some items reported in the Statement of Activities do not require the use of
current financial resources and therefore are not reported as expenditures in
governmental funds.
Accrued interest on issuance of bonds $ 100,760.00
Compensated absences (4,705,819.97)
Claims incurred but not reported IBNR (867,532.00)
Claims and judgments 22,500,000.00 17,027,408.03
Change in net position of governmental activities (Exhibit "B") $ 207,494,874.61
The notes to the basic financial statements are an integral part of this statement. -6-
DEKALB COUNTY BOARD OF EDUCATION EXHIBIT “G”
NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
NOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY
Reporting Entity
The DeKalb County Board of Education (School District) was established under the laws of the State of
Georgia and operates under the guidance of a board comprised of seven members elected by the voters
and a Superintendent appointed by the Board. The School District is composed of a diverse
combination of numerous locations that consist of administrative offices, traditional schools, and non-
traditional charter schools. The School District is organized as a separate legal entity and has the power
to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the
School District is a primary government and consists of all the organizations that compose its legal
entity.
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accompanying financial statements of the School District have been prepared in conformity with
generally accepted accounting principles (GAAP) as prescribed by the Governmental Accounting
Standards Board (GASB). GASB is the accepted standard-setting body for governmental accounting and
financial reporting principles. The most significant of the School District’s accounting policies are
described below.
Basis of Presentation
The School District's basic financial statements are collectively comprised of the government-wide
financial statements, fund financial statements and notes to the basic financial statements. The
government-wide statements focus on the School District as a whole, while the fund financial
statements focus on major funds. Each presentation provides valuable information that can be analyzed
and compared between years and between governments to enhance the information’s usefulness.
Government-Wide Statements:
The Statement of Net Position and the Statement of Activities display information about the financial
activities of the overall School District. Eliminations have been made to minimize the double counting
of internal activities. Governmental activities generally are financed through taxes, intergovernmental
revenues, and other nonexchange transactions.
The Statement of Net Position presents the School District’s assets, deferred outflows of resources,
deferred inflows of resources and liabilities, with the difference reported as net position. Net position is
reported in three categories as follows:
1. Net investment in capital assets consists of the School District’s total investment in capital
assets, net of accumulated depreciation, and reduced by outstanding debt obligations related to
those capital assets. To the extent debt has been incurred but not yet expended for capital assets,
such amounts are not included as a component of net investment in capital assets.
2. Restricted net position consists of resources for which the School District is legally or
contractually obligated to spend in accordance with restrictions imposed by external third
parties or imposed by law through constitutional provisions or enabling legislation.
3. Unrestricted net position consists of resources not meeting the definition of the two
preceding categories. Unrestricted net position often has constraints on resources imposed by
management which can be removed or modified.
-7-
DEKALB COUNTY BOARD OF EDUCATION EXHIBIT “G”
NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
The Statement of Activities presents a comparison between direct expenses and program revenues for
each function of the School District's governmental activities.
Direct expenses are those that are specifically associated with a program or function and, therefore, are
clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to
the administration and support of the School District's programs, such as office and maintenance
personnel and accounting) are not allocated to programs.
Program revenues include (a) charges paid by the recipients of goods or services offered by the
programs and (b) grants and contributions that are restricted to meeting the operational or capital
requirements of a particular program. Revenues that are not classified as program revenues, including
all taxes, are presented as general revenues.
Fund Financial Statements
The fund financial statements provide information about the School District's funds. Eliminations have
been made to minimize the double counting of internal activities. The emphasis of fund financial
statements is on major governmental funds, each displayed in a separate column.
The School District reports the following major governmental funds:
• The general fund is the School District's primary operating fund. It accounts for and reports all
financial resources not accounted for and reported in another fund.
• The capital projects fund accounts for and reports financial resources including Education
Special Purpose Local Option Sales Tax (ESPLOST) and grants from Georgia State Financing
and Investment Commission that are restricted, committed or assigned for capital outlay
expenditures, including the acquisition or construction of capital facilities and other capital
assets.
• The debt service fund accounts for and reports financial resources that are restricted,
committed, or assigned including taxes (sales) legally restricted for the payment of general long-
term principal and interest.
Basis of Accounting
The basis of accounting determines when transactions are reported on the financial statements. The
government-wide financial statements are reported using the economic resources measurement focus
and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at
the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange
transactions, in which the School District gives (or receives) value without directly receiving (or giving)
equal value in exchange, include property taxes, sales taxes, grants and donations. On an accrual basis,
revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from
sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place.
Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements
have been satisfied.
The School District uses funds to report on its financial position and the results of its operations. Fund
accounting is designed to demonstrate legal compliance and to aid financial management by
segregating transactions related to certain governmental functions or activities. A fund is a separate
accounting entity with a self-balancing set of accounts.
-8-
DEKALB COUNTY BOARD OF EDUCATION EXHIBIT “G”
NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
Governmental funds are reported using the current financial resources measurement focus and the
modified accrual basis of accounting. Under this method, revenues are recognized when measurable
and available. The School District considers certain revenues reported in the governmental funds to be
available if they are collected within 60 days after year-end. The School District considers all
intergovernmental revenues to be available if they are collected within 120 days after year-end. Property
taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded
when the related fund liability is incurred, except for principal and interest on general long-term debt,
claims and judgments, and compensated absences, which are recognized as expenditures to the extent
they have matured. Capital asset acquisitions are reported as expenditures in governmental funds.
The School District funds certain programs by a combination of specific cost-reimbursement grants,
categorical grants, and general revenues. Thus, when program costs are incurred, there are both
restricted and unrestricted resources available to finance the program. It is the School District's policy
to first apply grant resources to such programs, followed by cost-reimbursement grants, then general
revenues.
New Accounting Pronouncements
In fiscal year 2024, the School District adopted Governmental Accounting Standards Board (GASB)
Statement No. 100, Accounting Changes and Error Corrections. The objective of this statement is to
enhance accounting and financial reporting requirements for accounting changes and error corrections
to provide more understandable, reliable, relevant, consistent and comparable information for making
decisions or assessing accountability. The adoption of this statement did not have a material impact on
the School District’s financial statements. This statement will be applied prospectively.
Cash and Cash Equivalents
Cash and cash equivalents consist of cash on hand, demand deposits, investments in the State of
Georgia local government investment pool (Georgia Fund 1) and short-term investments with original
maturities of three months or less from the date of acquisition in authorized financial institutions.
Official Code of Georgia Annotated (O.C.G.A.) §45-8-14 authorizes the School District to deposit its
funds in one or more solvent banks, insured Federal savings and loan associations or insured chartered
building and loan associations.
Receivables
Receivables consist of amounts due from property and sales taxes, grant reimbursements due on
Federal, State or other grants for expenditures made but not reimbursed and other receivables
disclosed from information available. Receivables are recorded when either the asset or revenue
recognition criteria has been met. Receivables recorded on the basic financial statements do not include
any amounts which would necessitate the need for an allowance for uncollectible receivables.
Due to other funds and due from other funds consist of activities between funds that are representative
of lending/borrowing arrangements outstanding at the end of the fiscal year.
-9-
DEKALB COUNTY BOARD OF EDUCATION EXHIBIT “G”
NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
Inventories
Consumable Supplies
On the basic financial statements, consumable supplies are reported at cost (first-in, first-out). The
School District uses the consumption method to account for the consumable supplies inventory
whereby an asset is recorded when supplies are purchased, and expenses are recorded at the time the
supplies are consumed.
Food Inventories
On the basic financial statements, inventories of donated food commodities used in the preparation of
meals are reported at their Federally assigned value and purchased foods inventories are reported at
cost (calculated on the first-in, first-out basis). The School District uses the consumption method to
account for inventories whereby donated food commodities are recorded as an asset and as revenue
when received, and expenses/expenditures are recorded as the inventory items are used. Purchased
foods are recorded as an asset when purchased and expenses/expenditures are recorded as the
inventory items are used.
Capital Assets
On the government-wide financial statements, capital assets are recorded at cost where historical
records are available and at estimated historical cost based on appraisals or deflated current
replacement cost where no historical records exist. Donated capital assets are recorded at the
acquisition value on the date donated. The cost of normal maintenance and repairs that do not add to
the value of assets or materially extend the useful lives of the assets is not capitalized. The School
District does not capitalize book collections or works of art.
Capital acquisition and construction are recorded as expenditures in the governmental fund financial
statements at the time of purchase (including ancillary charges), and the related assets are reported as
capital assets in the governmental activities column in the government-wide financial statements.
Depreciation is computed using the straight-line for all assets, except land, and is used to allocate the
actual or estimated historical cost of capital assets over estimated useful lives.
Amortization of intangible assets such as water, timber and mineral rights, easements, patents,
trademarks, copyrights, and internally generated software is computed using the straight-line method
over the estimated useful lives of the assets.
- 10 -
DEKALB COUNTY BOARD OF EDUCATION EXHIBIT “G”
NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
Capitalization thresholds and estimated useful lives of capital assets reported in the government-wide
statements are as follows:
Capitalization Estimated
Policy Useful Life
Land All N/A
Land Improvements $ 100,000.00 20 to 40 years
Buildings and Improvements $ 100,000.00 Up to 80 years
Equipment
Outdoor Equipment $ 5,000.00 15 to 20 years
Vehicles $ 5,000.00 8 to 20 years
Kitchen Equipment $ 5,000.00 15 years
Computer Hardware $ 5,000.00 5 years
Miscellaneous Equipment $ 5,000.00 2 to 20 years
Buses $ 5,000.00 15 to 20 years
Intangible Assets - Software $ 1,000,000.00 5 to 10 years
Intangible Assets - Other $ 100,000.00 20 years
Bulk Purchases of Small Value Items $ 1,000,000.00 3 to 25 years
During the fiscal year, management amended its capital asset policy to incorporate bulk purchases.
Under the revised policy, bulk purchases of various small value items with an aggregate cost
of $1,000,000.00 or more are now capitalized and depreciated over a useful life of 3 to 25. This change
in the capital asset policy did not have a material impact on the financial statements.
Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position will report a separate section for deferred
outflows of resources. This separate financial statement element represents a consumption of resources
that applies to a future period(s) and therefore will not be recognized as an outflow of resources
(expense/expenditure) until then.
In addition to liabilities, the statement of financial position will report a separate section for deferred
inflows of resources. This separate financial statement element represents an acquisition of resources
that applies to a future period(s) and therefore will not be recognized as an inflow of resources
(revenue) until that time.
Compensated Absences
Compensated absences payable consists of vacation leave employees earned based on services already
rendered.
Vacation leave of 10 to 20 days is awarded to all full-time personnel employed on a twelve-month basis.
No other employees are eligible to earn vacation leave. Vacation leave not utilized during the fiscal year
may be carried over to the next calendar year, providing such vacation leave does not exceed 50 days.
Upon terminating employment, the School District pays all unused and unforfeited vacation benefits to
employees. Accordingly, vacation benefits are accrued as a liability in the government-wide financial
statements. A liability for these amounts is reported in the governmental fund financial statements only
if they have matured, for example, as a result of employee resignations and retirements by fiscal-year
end.
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DEKALB COUNTY BOARD OF EDUCATION EXHIBIT “G”
NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
Members of the Teachers Retirement System of Georgia (TRS) may apply unused sick leave toward
early retirement. The liability for early retirement will be borne by TRS rather than by the individual
School Districts. Otherwise, sick leave does not vest with the employee, and no liability is reported in
the School District's financial statements.
Long-Term Liabilities
In the School District’s government-wide financial statements, outstanding debt is reported as
liabilities.
In the governmental fund financial statements, the School District recognizes the proceeds of debt as
other financing sources of the current period.
Pensions
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows
of resources related to pensions, and pension expense, information about the pension plan’s fiduciary
net position and additions to/deductions from the plan’s fiduciary net position have been determined
on the same basis as they are reported by the plan. For this purpose, benefit payments (including
refunds of employee contributions) are recognized when due and payable in accordance with the benefit
terms. Investments are reported at fair value.
Post-Employment Benefits Other Than Pensions (OPEB)
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows
of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the
Georgia School Employees Post-Employment Benefit Fund (School OPEB Fund) and additions
to/deductions from School OPEB Fund fiduciary net position have been determined on the same basis
as they are reported by School OPEB Fund. For this purpose, benefit payments are recognized when
due and payable in accordance with the benefit terms. Investments are reported at fair value.
Fund Balances
Fund balance for governmental funds is reported in classifications that comprise a hierarchy based
primarily on the extent to which the government is bound to honor constraints on the specific purposes
for which amounts in those funds can be spent.
The School District's fund balances are classified as follows:
Nonspendable consists of resources that cannot be spent either because they are in a nonspendable
form or because they are legally or contractually required to be maintained intact.
Restricted consists of resources that can be used only for specific purposes pursuant constraints
either (1) externally imposed by creditors, grantors, contributors, or laws and regulations of other
governments or (2) imposed by law through constitutional provisions or enabling legislation.
Committed consists of resources that can be used only for specific purposes pursuant to constraints
imposed by formal action of the Board. The Board is the School District's highest level of decision-
making authority, and the formal action that is required to be taken to establish, modify, or rescind a
fund balance commitment is a resolution approved by the Board. Committed fund balance also should
incorporate contractual obligations to the extent that existing resources in the fund have been
specifically committed for use in satisfying those contractual requirements.
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DEKALB COUNTY BOARD OF EDUCATION EXHIBIT “G”
NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
Assigned consists of resources constrained by the School District's intent to be used for specific
purposes but are neither restricted nor committed. The intent should be expressed by (1) the Board
or (2) the budget or finance committee, or the Superintendent, or designee, to assign amounts to be
used for specific purposes.
Unassigned consists of resources within the general fund not meeting the definition of any
aforementioned category. The general fund should be the only fund that reports a positive unassigned
fund balance amount. In other governmental funds, it may be necessary to report a negative unassigned
fund balance.
Use of Estimates
The preparation of the financial statements in conformity with accounting principles generally accepted
in the United States requires management to make estimates and assumptions that affect the amounts
reported in the financial statements and accompanying notes. Actual results may differ from those
estimates.
Property Taxes
The DeKalb County Board of Commissioners adopted the property tax levy for the 2023 tax digest year
(calendar year) on July 27, 2023 (levy date) based on property values as of January 1, 2023. Taxes were
due on November 15, 2023 (lien date) and could be paid in two installments on October 2, 2023 and
November 15, 2023 (due dates). Taxes collected within the current fiscal year or within 60 days after
year-end on the 2023 tax digest are reported as revenue in the governmental funds for fiscal year 2024.
The DeKalb County Tax Commissioner bills and collects the property taxes for the School District,
withholds 1.25% of taxes collected as a fee for tax collection and remits the balance of taxes collected to
the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended
June 30, 2024, for maintenance and operations amounted to $846,413,069.11.
The tax millage rate levied for the 2023 tax digest year (calendar year) for the School District was as
follows (a mill equals $1 per thousand dollars of assessed value):
School Operations 22.98 mills
Additionally, Title Ad Valorem Tax revenues, at the fund reporting level, amounted to $36,406,172.22
during fiscal year ended June 30, 2024.
Sales Taxes
Education Special Purpose Local Option Sales Tax (ESPLOST), at the fund reporting level, during the
year amounted to $150,986,248.40 and is to be used for capital outlay for educational purposes or debt
service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at
least every five years.
NOTE 3: BUDGETARY DATA
The budget is a complete financial plan for the School District's fiscal year and is based upon careful
estimates of expenditures together with probable funding sources. The budget is legally adopted each
year for the general, debt service and capital projects funds. There is no statutory prohibition regarding
over expenditure of the budget at any level. The budget for all governmental funds, except the various
school activity (principal) accounts, is prepared and adopted by fund, function and object. The legal
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DEKALB COUNTY BOARD OF EDUCATION EXHIBIT “G”
NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
level of budgetary control was established by the Board at the aggregate function level. The budget for
the general fund was prepared in accordance with accounting principles generally accepted in the
United States of America.
The budgetary process begins with the School District's administration presenting an initial budget for
the Board's review. The administration makes revisions as necessary based on the Board's guidelines,
and a tentative budget is approved. After approval of this tentative budget by the Board, such budget is
advertised at least once in a newspaper of general circulation in the locality, as well as the School
District's website. At the next regularly scheduled meeting of the Board after advertisement, the Board
receives comments on the tentative budget, makes revisions as necessary and adopts a final budget. The
approved budget is then submitted, in accordance with provisions of O.C.G.A. §20-2-167(c), to the
Georgia Department of Education. The Board may increase or decrease the budget at any time during
the year. All unexpended budget authority lapses at fiscal year-end.
The Superintendent is authorized by the Board to approve adjustments of no more than 10% of the
amount budgeted for expenditures in any budget function for any fund. The Superintendent shall report
any such adjustments to the Board. If expenditure of funds in any budget function for any fund is
anticipated to be more than 10% of the budgeted amount, the Superintendent shall request Board
approval for the budget amendment. Under no circumstance is the Superintendent or other staff person
authorized to spend funds that exceed the total budget without approval by the Board.
See the General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget to
Actual in the Supplementary Information Section for a detail of any over/under expenditures during the
fiscal year under review.
NOTE 4: DEPOSITS AND CASH EQUIVALENTS
Collateralization of Deposits
O.C.G.A. §45-8-12 provides that there shall not be on deposit at any time in any depository for a time
longer than ten days a sum of money which has not been secured by surety bond, by guarantee of
insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of
securities pledged shall be equal to not less than 110% of the public funds being secured after the
deduction of the amount of deposit insurance. If a depository elects the pooled method
(O.C.G.A. §45-8-13.1) the aggregate of the market value of the securities pledged to secure a pool of
public funds shall be not less than 110% of the daily pool balance.
Acceptable security for deposits consists of any one of or any combination of the following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business
within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States
or of the State of Georgia,
(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or
municipalities of the State of Georgia,
(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the
statute that created the authority authorized the use of the bonds for this purpose,
- 14 -
DEKALB COUNTY BOARD OF EDUCATION EXHIBIT “G”
NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
(6) Industrial revenue bonds and bonds of development authorities created by the laws of the
State of Georgia, and
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation
of the United States government, which are fully guaranteed by the United States government
both as to principal and interest or debt obligations issued by or securities guaranteed by the
Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the
Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage
Association, and the Federal National Mortgage Association.
Categorization of Deposits
Custodial credit risk is the risk that in the event of a bank failure, the School District's deposits may
not be returned to it. The School District does not have a deposit policy for custodial credit risk. At
June 30, 2024, the School District had deposits with a carrying amount of $173,157,914.25 and a
bank balance of $192,573,626.89. The bank balance insured by Federal depository insurance
were $500,000.00.
At June 30, 2024, $192,073,626.89 of the School District’s bank balances were exposed to custodial
credit risk. This balance was in the State’s Secure Deposit Program (SDP).
The School District participates in the State’s Secure Deposit Program (SDP), a multi-bank pledging
pool. The SDP requires participating banks that accept public deposits in Georgia to operate under the
policy and procedures of the program. The Georgia Office of State Treasurer (OST) sets the collateral
requirements and pledging level for each covered depository. There are four tiers of collateralization
levels specifying percentages of eligible securities to secure covered deposits: 25%, 50%, 75%, and 110%.
The SDP also provides for collateral levels to be increased in the amount of up to 125% if economic or
financial conditions warrants. The program lists the types of eligible criteria. The OST approves
authorized custodians.
In accordance with the SDP, if a covered depository defaults, losses to public depositors are first
satisfied with any applicable insurance, followed by demands of payment under any letters of credit or
sale of the covered depository collateral. If necessary, any remaining losses are to be satisfied by
assessments made against the other participating covered depositories. Therefore, for disclosure
purposes, all deposits of the SDP are considered to be fully collateralized.
Reconciliation of cash and cash equivalents balances to carrying value of deposits:
Cash and cash equivalents
Statement of Net Position $ 1,223,452,190.26
Less:
Cash on hand 12,055.00
Investment pools reported as cash and cash equivalents
Georgia Fund 1 1,050,282,221.01
Total carrying value of deposits - June 30, 2024 $ 173,157,914.25
- 15 -
DEKALB COUNTY BOARD OF EDUCATION EXHIBIT “G”
NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
Categorization of Cash Equivalents
The School District reported cash equivalents of $1,050,282,221.01 in Georgia Fund 1, a local
government investment pool, which is included in the cash balances above. Georgia Fund 1 is not
registered with the SEC as an investment company and does not operate in a manner consistent with
the SEC's Rule 2a-7 of the Investment Company Act of 1940. The investment is valued at the pool's
share price, $1.00 per share, which approximates fair value. The pool is an AAAf rated investment pool
by Fitch. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted
average maturity for Georgia Fund 1 on June 30, 2024 was 33 days.
Georgia Fund 1, administered by the State of Georgia, Office of the State Treasurer, is not required to be
categorized since the School District did not own any specific identifiable securities in the pool. The
investment policy of the State of Georgia, Office of the State Treasurer for the Georgia Fund 1, does not
provide for investment in derivatives or similar investments. Additional information on the Georgia
Fund 1 is disclosed in the State of Georgia Annual Comprehensive Financial Report, which is publicly
available at https://sao.georgia.gov/statewide-reporting/acfr.
NOTE 5: CAPITAL ASSETS
The following is a summary of changes in the capital assets for governmental activities during the fiscal
year:
Balances Balances
July 1, 2023 Increases Decreases Transfers June 30, 2024
Governmental Activities
Capital Assets,
Not Being Depreciated:
Land $ 71,178,767.96 $ - $ - $ - $ 71,178,767.96
Construction in Progress 60,165,504.90 128,342,419.43 7,941,979.21 (52,581,500.38) 127,984,444.74
Total Capital Assets
Not Being Depreciated 131,344,272.86 128,342,419.43 7,941,979.21 (52,581,500.38) 199,163,212.70
Capital Assets,
Being Depreciated/Amortized:
Buildings and Improvements 2,057,240,562.59 - - 46,492,377.28 2,103,732,939.87
Equipment 160,422,519.00 9,462,527.37 2,766,916.19 3,328,976.60 170,447,106.78
Land Improvements 57,432,619.27 - 687,691.60 2,760,146.50 59,505,074.17
Intangible Assets 6,079,639.78 - - - 6,079,639.78
Less Accumulated
Depreciation/Amortization:
Buildings and Improvements 666,152,983.09 38,474,613.62 - - 704,627,596.71
Equipment 86,865,678.21 14,962,764.40 2,710,470.18 - 99,117,972.43
Land Improvements 18,373,357.07 2,238,633.16 584,537.86 - 20,027,452.37
Intangible Assets 2,646,531.93 326,962.65 - - 2,973,494.58
Total Capital Assets,
Being Depreciated/Amortized, Net 1,507,136,790.34 (46,540,446.46) 159,599.75 52,581,500.38 1,513,018,244.51
Governmental Activities
Capital Assets - Net $ 1,638,481,063.20 $ 81,801,972.97 $ 8,101,578.96 $ - $ 1,712,181,457.21
- 16 -
DEKALB COUNTY BOARD OF EDUCATION EXHIBIT “G”
NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
Current year depreciation and amortization expense by function is as follows:
Instruction $ 44,244,429.98
Support Services
Pupil Services $ 456,055.83
Improvements of Instructional Services 753,517.42
Educational Media Services 245,414.55
General Administration 8,459.96
School Administration 6,801.79
Business Administration 3,274.73
Maintenance and Operation of Plant 4,066,446.74
Student Transportation Services 4,989,353.64
Central Support Services 741,548.36 11,270,873.02
Food Services 487,670.83
$ 56,002,973.83
NOTE 6: INTERFUND ASSETS, LIABILITIES, AND TRANSFERS
Interfund Assets and Liabilities
Due to and due from other funds are recorded for interfund receivables and payables which arise from
interfund transactions. Interfund balances at June 30, 2024, consisted of the following:
Due From Due To
Other Funds Other Funds
General Fund $ 5,036,811.57 $ -
Capital Projects Fund - 5,036,811.57
$ 5,036,811.57 $ 5,036,811.57
Interfund receivables and payables are used to track expenditures reclassified from the general fund to
the capital projects fund for which the general fund has not received reimbursement.
Interfund Transfers
Interfund transfers for the year ended June 30, 2024, consisted of the following:
Transfers From
Debt Service
Transfers to Fund
Capital Projects Fund $ 47,604.51
Transfers are used to move the remaining fund balance in the debt service fund back to the capital
projects fund after all general obligation bond debt has been satisfied.
- 17 -
DEKALB COUNTY BOARD OF EDUCATION EXHIBIT “G”
NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
NOTE 7: LONG-TERM LIABILITIES
The changes in long-term liabilities during the fiscal year for governmental activities were as follows:
Governmental Activities
Balance Balance Due Within One
July 1, 2023 Additions Deductions June 30, 2024 Year
Qualified School Construction Bonds $ 5,690,000.00 $ - $ 5,690,000.00 $ - $ -
Claims and Judgments 45,000,000.00 - 22,500,000.00 22,500,000.00 22,500,000.00
Compensated Absences(1) 8,624,924.18 8,503,238.32 3,797,418.35 13,330,744.15 -
$ 59,314,924.18 $ 8,503,238.32 $ 31,987,418.35 $ 35,830,744.15 $ 22,500,000.00
(1) The portion of compensated absences due within one year has been determined to be immaterial to the basic
financial statements.
Qualified School Construction Bonds (QSCB)
On May 1, 2011, the School District entered into an agreement with the Georgia Municipal Association,
Inc., for the purchase of a replacement high school. The Georgia Municipal Association, Inc. sold
$57,770,000.00 in Qualified School Construction Taxable Certificates of Participation Bonds (QSCB)
and $5,690,000.00 in Certificates of Participation Tax-Exempt Bonds to fund the construction of the
new school. The agreement with Georgia Municipal Association, Inc. provides that the School District
owns the high school and is responsible for the payment of principal and interest on the Certificate of
Participation and QSCB.
Section 1521 of the American Recovery and Reinvestment Act (ARRA) of 2009 provides for a source of
capital at no or at nominal interest rates for costs incurred by School Districts in connection with the
construction, rehabilitation or repair of a public-school facility or for the acquisition of land where a
school will be built. Investors receive Federal income tax credits at prescribed tax credit rates in lieu of
interest, which essentially allows School Districts to borrow without incurring interest costs.
When the stated interest rate on the QSCB results in interest payments that exceed the supplemental
interest payments discussed in the preceding paragraph, the School District may apply for a direct cash
subsidy payment from the U.S. Treasury which is intended to reduce the stated interest rate to a
nominal percentage. To qualify for this subsidy the School District is required to periodically file
appropriate documents with the Internal Revenue Service. These subsidy payments do not include the
amount of any supplemental interest paid on a QSCB. The School District did not receive an interest
subsidy in fiscal year 2024 to offset any of the $120,912.50 of interest expense due on the QSCB.
There is no debt currently outstanding under Qualified School Construction Bonds.
Claims and Judgements
On June 9, 2020, the School District Board voted to approve the settlement of the Gold lawsuit, for a
breach of contract for $117,500,000.00. The settlement, to be paid out by the School District to the
Settlement Administrator over a five-year period is recorded as a long-term liability on the Statement of
Net Position.
- 18 -
DEKALB COUNTY BOARD OF EDUCATION EXHIBIT “G”
NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
The following is a schedule of annual settlement payments:
Settlement
Fiscal Year Ended June 30: Payments
2025 $ 22,500,000.00
Compensated Absences
Compensated absences represent obligations of the School District relating to employees' rights to
receive compensation for future absences based upon service already rendered. This obligation relates
only to vesting accumulating leave in which payment is probable and can be reasonably estimated.
Typically, the general fund is the fund used to liquidate this long-term debt. The School District uses the
vesting method to compute compensated absences.
NOTE 8: RISK MANAGEMENT
Insurance
Commercial Insurance
The School District is exposed to various risks of loss related to torts; theft of, damage to and
destruction of assets; errors or omissions; job related illness or injuries to employees; and natural
disasters. Except as described below, the School District carries commercial insurance for these risks.
Settled claims resulting from these insured risks have not exceed commercial insurance coverage in any
of the past three fiscal years.
The School District has elected to self-insure for errors or omissions, which includes, among other risks,
risks for sexual harassment and discrimination.
Workers’ Compensation
The School District has established a limited risk management program for workers’ compensation
claims. The School District accounts for claims within the general fund with expenses/expenditures
and liability being reported when it is probable that a loss has occurred, and the amount of that loss
can be reasonably estimated. An excess coverage insurance policy covers individual claims in excess
of $1,500,000.00 loss per occurrence, up to the statutory limit.
Changes in the workers’ compensation claims liability during the last two fiscal years are as follows:
Beginning Claims and
of Year Changes in Claims End of Year
Liability Estimates Paid Liability
2023 $ 8,138,466.00 $ 13,498,109.00 $ 7,706,568.00 $ 13,930,007.00
2024 $ 13,930,007.00 $ 10,745,147.00 $ 9,877,615.00 $ 14,797,539.00
- 19 -
DEKALB COUNTY BOARD OF EDUCATION EXHIBIT “G”
NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
Unemployment Compensation
The School District is self-insured with regard to unemployment compensation claims. The School
District accounts for claims within the general fund with expenses/expenditures and liability being
reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably
estimated.
Changes in the unemployment compensation claims liability during the last two fiscal years are as
follows:
Beginning Claims and
of Year Changes in Claims End of Year
Liability Estimates Paid Liability
2023 $ - $ 63,441.47 $ 63,441.47 $ -
2024 $ - $ 23,972.04 $ 23,972.04 $ -
Surety Bond
The School District purchased a surety bond to provide additional insurance coverage as follows:
Position Covered Amount
Superintendent $ 25,000.00
NOTE 9: FUND BALANCE CLASSIFICATION DETAILS
The School District’s financial statements include the following amounts presented in the aggregate at
June 30, 2024:
Nonspendable
Inventories $ 1,588,663.88
Restricted
Continuation of Federal Programs $ 27,774,096.20
Capital Projects 555,552,072.46 583,326,168.66
Assigned
After School Program $ 3,431,721.96
Local Capital Outlay Projects 26,428,273.11
School Activity Accounts 5,485,921.70 35,345,916.77
Unassigned 482,499,356.62
Fund Balance, June 30, 2024 $ 1,102,760,105.93
When multiple categories of fund balance are available for an expenditure, the School District will start
with the most restricted category and spend those funds first before moving down to the next category
with available funds.
- 20 -
DEKALB COUNTY BOARD OF EDUCATION EXHIBIT “G”
NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
It is the goal of the School District to achieve and maintain a committed, assigned, and unassigned fund
balance in the general fund at fiscal year-end of not less than 15% of the total budget of the subsequent
fiscal year. If the unassigned fund balance at fiscal year-end falls below the goal, the School District
shall develop a restoration plan to achieve and maintain the minimum fund balance.
NOTE 10: SIGNIFICANT COMMITMENTS
Commitments under Construction Contracts
The following is an analysis of significant outstanding construction or renovation contracts executed by
the School District as of June 30, 2024, together with funding available:
Unearned Payments Funding
Executed through Available
Project Contracts (1) June 30, 2024 (2) From State (1)
Green Forrest Drive Facility $ 2,770,411.00 $ 2,136,089.00 $ -
Cross Keys High School Addition and Modernization 46,868,661.58 3,010,610.17 -
New Sequoyah Middle and High School 92,471,855.00 3,859,400.00 -
New Dresden Elementary School 70,918,420.20 3,685,353.80 -
Henderson Mill Elementary School 21-644-009 2,999,322.28 4,975,978.82 1,024,648.20
Nancy Creek Facility 22-644-003 12,069,123.22 773,940.78 -
Midvale Elementary School 23-644-001 2,415,710.85 7,244,721.15 243,936.00
Briar Vista Elementary School 22-644-009 1,355,718.00 2,818,232.00 492,576.30
Champion Middle School Major Building System Replacement 22,292,129.90 951,675.10 -
DeKalb High School Tech South Major Building System Replacement 3,554,895.10 6,636,526.90 -
Laurel Ridge Elementary School 22-644-020 1,444,962.28 7,573,839.72 731,162.70
Woodridge Elementary School 22-644-014 1,945,381.48 7,072,030.52 780,996.60
Chestnut Elementary School 22-644-005 1,826,550.09 6,334,599.91 568,224.00
Redan Middle School HVAC, Roof and Sprinkler Installation 3,124,354.47 2,494,357.48 -
Fairington Elementary School 21-644-008 2,081,059.87 2,627,752.28 321,467.40
Hawthorne Elementary School 22-644-013 3,890,347.31 5,735,375.69 375,888.60
Salem Middle School 21-644-004 3,566,480.10 6,170,657.56 1,863,480.60
Idlewood HVAC Replacement and Renovation 1,100,000.00 150,000.00 -
Chapel Hill Middle School Roof and HVAC Replacement 6,740,707.68 2,973,405.32 -
Stephenson Middle School Roof Replacement 5,434,454.85 5,351,908.15 -
Tucker Middle School HVAC Replacement 2,830,306.77 9,194,570.23 -
Druid Hills Middle School Roof and HVAC Replacement 6,421,349.35 3,532,601.65 -
Columbia Elementary School Roof and HVAC Replacement 4,130,169.50 1,582,244.50 -
Briarlake Elementary School HVAC Replacement 4,288,152.14 2,871,791.86 -
Montclair Elementary School HVAC Replacement 3,681,264.88 3,074,896.12 -
Early Learning Center HVAC Replacement 1,767,410.42 5,062,881.58 -
$ 311,989,198.32 $ 107,895,440.29 $ 6,402,380.40
(1) The amounts described are not reflected in the basic financial statements.
(2) Payments include contracts and retainages payable at year end.
- 21 -
DEKALB COUNTY BOARD OF EDUCATION EXHIBIT “G”
NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
NOTE 11: SIGNIFICANT CONTINGENT LIABILITIES
Federal Grants
Amounts received or receivable principally from the Federal government are subject to audit and review
by grantor agencies. This could result in requests for reimbursement to the grantor agency for any costs
which are disallowed under grant terms. Any disallowances resulting from the grantor audit may
become a liability of the School District. However, the School District believes that such disallowances,
if any, will be immaterial to its overall financial position.
Litigation
The School District is a defendant in various legal proceedings pertaining to matters incidental to the
performance of routine School District operations. The ultimate disposition of these proceedings is not
presently determinable but is not believed to have a material adverse effect on the financial condition of
the School District.
NOTE 12: OTHER POST-EMPLOYMENT BENEFITS (OPEB)
Georgia School Personnel Post-Employment Health Benefit Fund
Plan Description: Certified teachers and non-certified public school employees of the School District
as defined in §20-2-875 of the Official Code of Georgia Annotated (O.C.G.A.) are provided OPEB
through the School OPEB Fund - a cost-sharing multiple-employer defined benefit post-employment
healthcare plan, reported as an employee trust fund and administered by a Board of Community Health
(Board). Title 20 of the O.C.G.A. assigns the authority to establish and amend the benefit terms of the
group health plan to the Board.
Benefits Provided: The School OPEB Fund provides healthcare benefits for retirees and their
dependents due under the group health plan for public school teachers, including librarians, other
certified employees of public schools, regional educational service agencies and non-certified public
school employees. Retiree medical eligibility is attained when an employee retires and is immediately
eligible to draw a retirement annuity from Employees’ Retirement System (ERS), Georgia Judicial
Retirement System (JRS), Legislative Retirement System (LRS), Teachers Retirement System (TRS) or
Public School Employees Retirement System (PSERS). If elected, dependent coverage starts on the
same day as retiree coverage. Medicare-eligible retirees are offered Standard and Premium Medicare
Advantage plan options. Non-Medicare eligible retiree plan options include Health Reimbursement
Arrangement (HRA), Health Maintenance Organization (HMO) and a High Deductible Health Plan
(HDHP). The School OPEB Fund also pays for administrative expenses of the fund. By law, no other use
of the assets of the School OPEB Fund is permitted.
Contributions: As established by the Board, the School OPEB Fund is substantially funded on a pay-
as-you-go basis; that is, annual cost of providing benefits will be financed in the same year as claims
occur. Contributions to the School OPEB Fund from the School District were $22,449,217.27 for the
year ended June 30, 2024. Active employees are not required to contribute to the School OPEB Fund.
OPEB Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred
Inflows of Resources Related to OPEB
At June 30, 2024, the School District reported a liability of $612,766,195.00 for its proportionate share
of the net OPEB liability. The net OPEB liability was measured as of June 30, 2023. The total OPEB
liability used to calculate the net OPEB liability was based on an actuarial valuation as of June 30, 2022.
- 22 -
DEKALB COUNTY BOARD OF EDUCATION EXHIBIT “G”
NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
An expected total OPEB liability as of June 30, 2023 was determined using standard roll-forward
techniques. The School District’s proportion of the net OPEB liability was actuarially determined based
on employer contributions during the fiscal year ended June 30, 2023. At June 30, 2023, the School
District’s proportion was 5.594295%, which was a decrease of 0.326997% from its proportion measured
as of June 30, 2022.
For the year ended June 30, 2024, the School District recognized OPEB expense of ($28,075,826.00).
At June 30, 2024, the School District reported deferred outflows of resources and deferred inflows of
resources related to OPEB from the following sources:
OPEB
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected and actual
experience $ 17,861,120.00 $ 175,993,650.00
Changes of assumptions 111,327,571.00 76,525,202.00
Net difference between projected and actual
earnings on OPEB plan investments 367,630.00 -
Changes in proportion and differences
between School District contributions and
proportionate share of contributions 3,247,639.00 71,219,431.00
School District contributions subsequent to
the measurement date 22,449,217.27 -
Total $ 155,253,177.27 $ 323,738,283.00
School District contributions subsequent to the measurement date are reported as deferred outflows
of resources and will be recognized as a reduction of the net OPEB liability in the year ended
June 30, 2025. Other amounts reported as deferred outflows of resources and deferred inflows of
resources related to OPEB will be recognized in OPEB expense as follows:
Year Ended June 30: OPEB
2025 $ (56,167,909.00)
2026 $ (46,352,333.00)
2027 $ (53,646,738.00)
2028 $ (30,514,060.00)
2029 $ (4,212,215.00)
Thereafter $ (41,068.00)
- 23 -
DEKALB COUNTY BOARD OF EDUCATION EXHIBIT “G”
NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
Actuarial Assumptions: The total OPEB liability as of June 30, 2023 was determined by an
actuarial valuation as of June 30, 2022 using the following actuarial assumptions and other inputs,
applied to all periods included in the measurement and rolled forward to the measurement date of
June 30, 2023:
OPEB:
Inflation 2.50%
Salary increases 3.00% – 8.75%, including inflation
Long-term expected rate of 7.00%, compounded annually, net of
return investment expense, and including
inflation
Healthcare cost trend rate 7.00%
Ultimate trend rate 4.50%
Year of Ultimate trend rate 2032
The Plan currently uses mortality tables that vary by age, gender, and health status (i.e. disabled or not
disabled) as follows:
• For TRS members: Post‐retirement mortality rates for service retirements and beneficiaries
were based on the Pub‐2010 Teachers Headcount Weighted Below Median Healthy Retiree
mortality table (ages set forward one year and adjusted 106%) with the MP‐2019 Projection
scale applied generationally. The rates of improvement were reduced by 20% for all years prior
to the ultimate rate. Post‐retirement mortality rates for disability retirements were based on the
Pub‐2010 Teachers Mortality Table for Disabled Retirees (ages set forward one year and
adjusted 106%) with the MP‐2019 Projection scale applied generationally. The rates of
improvement were reduced by 20% for all years prior to the ultimate rate. The Pub‐2010
Teachers Headcount Weighted Below Median Employee mortality table with ages set forward
one year and adjusted 106% was used for death prior to retirement. Future improvement in
mortality rates was assumed using the MP‐2019 projection scale generationally. These rates of
improvement were reduced by 20% for all years prior to the ultimate rate.
• For PSERS members: Pre-retirement mortality rates were based on the Pub-2010 General
Employee Mortality Table, with no adjustment, with the MP-2019 Projections scale applied
generationally. Post-retirement mortality rates for service retirements were based on the Pub-2010
General Healthy Annuitant Mortality Table (ages set forward one year and adjusted 101% for
males and 103% for females) with the MP-2019 Projection scale applied generationally. Post-
retirement mortality rates for disability retirements were based on the Pub-2010 General
Disabled Mortality Table (ages set back three years for males and adjusted 103% for males
and 106% for females) with the MP-2019 Projections scaled applied generationally. Post-
retirement mortality rates for beneficiaries were based on the Pub-2010 General Contingent
Survivor Mortality Table (ages set forward two years and adjust 104% for males and 99% for
females) with the MP-2019 Project scale applied generationally.
- 24 -
DEKALB COUNTY BOARD OF EDUCATION EXHIBIT “G”
NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
The actuarial assumptions used in the June 30, 2022 valuation were based on the results of an actuarial
experience study for the pension systems, which covered the five-year period ending June 30, 2018,
with the exception of the assumed annual rate of inflation with changed from 2.75% to 2.50%, effective
with the June 30, 2018 valuation.
The remaining actuarial assumptions (e.g., initial per capita costs, health care cost trends, rate of plan
participation, rates of plan election, etc.) used in the June 30, 2022 valuation were based on a review of
recent plan experience done concurrently with the June 30, 2022 valuation.
Projection of benefits for financial reporting purposes are based on the substantive plan (the plan as
understood by the employer and plan members) and include the types of benefits provided at the time
of each valuation and the historical pattern of sharing of benefit costs between the employer and plan
members to that point. The actuarial methods and assumptions used include techniques that are
designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial
value of assets, consistent with the long-term perspective of the calculation.
The long‐term expected rate of return on OPEB plan investments was determined using a log‐normal
distribution analysis in which best‐estimate ranges of expected future real rates of return (expected
nominal returns, net of investment expense and the assumed rate of inflation) are developed for each
major asset class. These ranges are combined to produce the long‐term expected rate of return by
weighting the expected future real rates of return by the target asset allocation percentage and by
adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for
each major asset class are summarized in the following table:
Long-Term Expected
Asset Class Target Allocation Real Rate of Return*
Fixed income 30.00% 1.50%
Equities 70.00% 9.40%
Total 100.00%
* Net of inflation
Discount Rate: In order to measure the total OPEB liability for the School OPEB Fund, a single
equivalent interest rate of 3.68% was used as the discount rate, as compared with last year’s rate
of 3.57%. The plan's fiduciary net position was projected to not be able to make all future benefit
payments of current plan members. Therefore, the municipal bond rate as used for the long-term rate
of return was applied to all periods of projected benefit payments to determine total OPEB liability. This
is comprised mainly of the yield or index rate for 20-year tax-exempt general obligation bonds with an
average rating of AA or higher (3.65% per the Municipal Bond Index Rate). The projection of cash flows
used to determine the discount rate assumed that contributions from members and from the employers
will be made at the current level as averaged over the last five years, adjusted for annual projected
changes in headcount. Projected future benefit payments for all current plan members were projected
through 2128.
- 25 -
DEKALB COUNTY BOARD OF EDUCATION EXHIBIT “G”
NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
Sensitivity of the School District’s Proportionate Share of the Net OPEB Liability to
Changes in the Discount Rate: The following presents the School District’s proportionate share of
the net OPEB liability calculated using the discount rate of 3.68%, as well as what the School District’s
proportionate share of the net OPEB liability would be if it were calculated using a discount rate that
is 1‐percentage‐point lower (2.68%) or 1‐percentage‐point higher (4.68%) than the current discount
rate:
1% Decrease Current Discount Rate 1% Increase
(2.68%) (3.68%) (4.68%)
School District's proportionate share
of the Net OPEB liability $ 694,598,753.00 $ 612,766,195.00 $ 543,845,883.00
Sensitivity of the School District's Proportionate Share of the Net OPEB Liability to
Changes in the Healthcare Cost Trend Rates: The following presents the School District’s
proportionate share of the net OPEB liability, as well as what the School District’s proportionate share
of the net OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-
percentage-point lower or 1-percentage-point higher than the current healthcare cost trend rates:
Current Healthcare Cost
1% Decrease Trend Rate 1% Increase
School District's proportionate share
of the Net OPEB liability $ 527,816,837.00 $ 612,766,195.00 $ 717,490,444.00
OPEB Plan Fiduciary Net Position: Detailed information about the OPEB plan’s fiduciary net
position is available in the Annual Comprehensive Financial Report, which is publicly available at
https://sao.georgia.gov/statewide-reporting/acfr.
NOTE 13: RETIREMENT PLANS
The School District participates in various retirement plans administered by the State of Georgia, as
further explained below.
Teachers Retirement System of Georgia (TRS)
Plan Description: All teachers of the School District as defined in O.C.G.A. §47‐3‐60 and certain
other support personnel as defined by O.C.G.A. §47‐3‐63 are provided a pension through the Teachers
Retirement System of Georgia (TRS). TRS, a cost‐sharing multiple‐ employer defined benefit pension
plan, is administered by the TRS Board of Trustees (TRS Board). Title 47 of the O.C.G.A. assigns the
authority to establish and amend the benefit provisions to the State Legislature. The Teachers
Retirement System of Georgia issues a publicly available separate financial report that can be obtained
at www.trsga.com/publications.
Benefits Provided: TRS provides service retirement, disability retirement, and death benefits.
Normal retirement benefits are determined as 2% of the average of the employee’s two highest paid
consecutive years of service, multiplied by the number of years of creditable service up to 40 years. An
employee is eligible for normal service retirement after 30 years of creditable service, regardless of age,
or after 10 years of service and attainment of age 60. Ten years of service is required for disability and
death benefits eligibility. Disability benefits are based on the employee’s creditable service and
- 26 -
DEKALB COUNTY BOARD OF EDUCATION EXHIBIT “G”
NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
compensation up to the time of disability. Death benefits equal the amount that would be payable to the
employee’s beneficiary had the employee retired on the date of death. Death benefits are based on the
employee’s creditable service and compensation up to the date of death.
Contributions: Per Title 47 of the O.C.G.A., contribution requirements of active employees and
participating employers, as actuarially determined, are established and may be amended by the TRS
Board. Pursuant to O.C.G.A. §47-3-63, the employer contributions for certain full-time public school
support personnel are funded on behalf of the employer by the State of Georgia. Contributions are
expected to finance the costs of benefits earned by employees during the year, with an additional
amount to finance any unfunded accrued liability. Employees were required to contribute 6.00% of
their annual pay during fiscal year 2024. The School District’s contractually required contribution rate
for the year ended June 30, 2024 was 19.98% of annual School District payroll, of which 19.95% of
payroll was required from the School District and 0.03% of payroll was required from the State. For the
current fiscal year, employer contributions to the pension plan were $145,665,061.74 and $236,710.93
from the School District and the State, respectively.
Employees' Retirement System
Plan Description: The Employees' Retirement System of Georgia (ERS) is a cost-sharing
multiple-employer defined benefit pension plan established by the Georgia General Assembly during
the 1949 Legislative Session for the purpose of providing retirement allowances for employees of the
State of Georgia and its political subdivisions. ERS is directed by a Board of Trustees. Title 47 of the
O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature.
ERS issues a publicly available financial report that can be obtained at www.ers.ga.gov/financials.
Benefits Provided: The ERS Plan supports three benefit tiers: Old Plan, New Plan, and Georgia State
Employees’ Pension and Savings Plan (GSEPS). Employees under the old plan started membership
prior to July 1, 1982 and are subject to plan provisions in effect prior to July 1, 1982. Members hired on
or after July 1, 1982 but prior to January 1, 2009 are new plan members subject to modified plan
provisions. Effective January 1, 2009, new state employees and rehired state employees who did not
retain membership rights under the Old or New Plans are members of GSEPS. ERS members hired
prior to January 1, 2009 also have the option to irrevocably change their membership to GSEPS.
Under the old plan, the new plan, and GSEPS, a member may retire and receive normal retirement
benefits after completion of 10 years of creditable service and attainment of age 60 or 30 years of
creditable service regardless of age. Additionally, there are some provisions allowing for early
retirement after 25 years of creditable service for members under age 60.
Retirement benefits paid to members are based upon the monthly average of the member’s
highest 24 consecutive calendar months, multiplied by the number of years of creditable service,
multiplied by the applicable benefit factor. Annually, postretirement cost-of-living adjustments may
also be made to members’ benefits, provided the members were hired prior to July 1, 2009. The normal
retirement pension is payable monthly for life; however, options are available for distribution of the
member’s monthly pension, at reduced rates, to a designated beneficiary upon the member’s death.
Death and disability benefits are also available through ERS.
Contributions: Member contributions under the old plan are 4.00% of annual compensation, up
to $4,200.00, plus 6.00% of annual compensation in excess of $4,200.00. Under the old plan, the state
pays member contributions in excess of 1.25% of annual compensation. Under the old plan, these state
contributions are included in the members’ accounts for refund purposes and are used in the
- 27 -
DEKALB COUNTY BOARD OF EDUCATION EXHIBIT “G”
NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
computation of the members’ earnable compensation for the purpose of computing retirement benefits.
Member contributions under the new plan and GSEPS are 1.25% of annual compensation. The School
District’s total required contribution rate for the year ended June 30, 2024 was 29.35% of annual
covered payroll for old and new plan members and 25.51% for GSEPS members. Contributions
are expected to finance the costs of benefits earned by employees during the year, with an additional
amount to finance any unfunded accrued liability. Employer contributions to the pension plan
were $142,058.36 for the current fiscal year.
Public School Employees Retirement System (PSERS)
Plan Description: PSERS is a cost-sharing multiple-employer defined benefit pension plan
established by the Georgia General Assembly in 1969 for the purpose of providing retirement
allowances for public school employees who are not eligible for membership in the Teachers Retirement
System of Georgia. The ERS Board of Trustees, plus two additional trustees, administers PSERS.
Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State
Legislature. PSERS issues a publicly available financial report that can be obtained at
www.ers.ga.gov/financials.
Benefits Provided: A member may retire and elect to receive normal monthly retirement benefits
after completion of ten years of creditable service and attainment of age 65. A member may choose to
receive reduced benefits after age 60 and upon completion of ten years of service.
Upon retirement, the member will receive a monthly benefit of $16.00, multiplied by the number
of years of creditable service. Death and disability benefits are also available through PSERS.
Additionally, PSERS may make periodic cost-of-living adjustments to the monthly benefits. Upon
termination of employment, member contributions with accumulated interest are refundable upon
request by the member. However, if an otherwise vested member terminates and withdraws his/her
member contribution, the member forfeits all rights to retirement benefits.
Contributions: The general assembly makes an annual appropriation to cover the employer
contribution to PSERS on behalf of local school employees (bus drivers, cafeteria workers, and
maintenance staff). The annual employer contribution required by statute is actuarially determined and
paid directly to PSERS by the State Treasurer in accordance with O.C.G.A. §47-4-29(a) and 60(b).
Contributions are expected to finance the costs of benefits earned by employees during the year, with an
additional amount to finance any unfunded accrued liability.
Individuals who became members prior to July 1, 2012 contribute $4 per month for nine months each
fiscal year. Individuals who became members on or after July 1, 2012 contribute $10 per month for nine
months each fiscal year. The State of Georgia, although not the employer of PSERS members, is
required by statute to make employer contributions actuarially determined and approved and certified
by the PSERS Board of Trustees. The current fiscal year contribution was $1,963,334.00.
- 28 -
DEKALB COUNTY BOARD OF EDUCATION EXHIBIT “G”
NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred
Inflows of Resources Related to Pensions
At June 30, 2024, the School District reported a liability of $1,366,335,574.00 for its proportionate
share of the net pension liability for TRS ($1,365,090,913.00) and ERS ($1,244,661.00).
The TRS net pension liability reflected a reduction for support provided to the School District by the
State of Georgia for certain public school support personnel. The amount recognized by the School
District as its proportionate share of the net pension liability, the related State of Georgia support, and
the total portion of the net pension liability that was associated with the School District were as follows:
School District's proportionate share of the net pension liability $ 1,365,090,913.00
State of Georgia's proportionate share of the net pension liability
associated with the School District 1,661,627.00
Total $ 1,366,752,540.00
The net pension liability for TRS and ERS was measured as of June 30, 2023. The total pension liability
used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2022. An
expected total pension liability as of June 30, 2023 was determined using standard roll-forward
techniques. The School District’s proportion of the net pension liability was based on contributions to
TRS and ERS during the fiscal year ended June 30, 2023.
At June 30, 2023, the School District’s TRS proportion was 4.623619%, which was a decrease
of 0.292027% from its proportion measured as of June 30, 2022. At June 30, 2023, the School
District’s ERS proportion was 0.020864%, which was a decrease of 0.005275% from its proportion
measured as of June 30, 2022.
At June 30, 2024, the School District did not have a PSERS liability for a proportionate share of the net
pension liability because of a Special Funding Situation with the State of Georgia, which is responsible
for the net pension liability of the plan. The amount of the State’s proportionate share of the net
pension liability associated with the School District is $10,029,737.00.
The PSERS net pension liability was measured as of June 30, 2023. The total pension liability used to
calculate the net pension liability was based on an actuarial valuation as of June 30, 2022. An expected
total pension liability as of June 30, 2023 was determined using standard roll-forward techniques. The
State’s proportion of the net pension liability associated with the School District was based on
actuarially determined contributions paid by the State during the fiscal year ended June 30, 2023.
For the year ended June 30, 2024, the School District recognized pension expense of $252,018,665.00
for TRS, $65,948.00 for ERS and $1,810,220.00 for PSERS and revenue of $211,798.00 for TRS
and $1,810,220.00 for PSERS. The revenue is support provided by the State of Georgia. For TRS the
State of Georgia support is provided only for certain support personnel.
- 29 -
DEKALB COUNTY BOARD OF EDUCATION EXHIBIT “G”
NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
At June 30, 2024, the School District reported deferred outflows of resources and deferred inflows of
resources related to pensions from the following sources:
TRS ERS
Deferred Deferred Deferred Deferred
Outflows of Inflows of Outflows of Inflows of
Resources Resources Resources Resources
Differences between expected and actual
experience $ 69,317,481.00 $ 5,644,190.00 $ 18,907.00 $ 2,917.00
Changes of assumptions 140,438,543.00 - 47,894.00 -
Net difference between projected and
actual earnings on pension plan 96,010,512.00 - 50,703.00 -
Changes in proportion and differences
between School District contributions and
proportionate share of contributions 1,948,192.00 79,625,195.00 - 186,966.00
School District contributions subsequent to
the measurement date 145,665,061.74 - 142,058.36 -
Total $ 453,379,789.74 $ 85,269,385.00 $ 259,562.36 $ 189,883.00
The School District contributions subsequent to the measurement date for TRS and ERS are reported as
deferred outflows of resources and will be recognized as a reduction of the net pension liability in the
year ended June 30, 2025. Other amounts reported as deferred outflows of resources and deferred
inflows of resources related to pensions will be recognized in pension expense as follows:
Year Ended June 30: TRS ERS
2025 $ 63,611,042.00 $ (111,684.00)
2026 $ 31,683,648.00 $ (38,831.00)
2027 $ 167,227,480.00 $ 101,322.00
2028 $ (40,076,827.00) $ (23,186.00)
- 30 -
DEKALB COUNTY BOARD OF EDUCATION EXHIBIT “G”
NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
Actuarial Assumptions: The total pension liability as of June 30, 2023 was determined by an
actuarial valuation as of June 30, 2022, using the following actuarial assumptions, applied to all periods
included in the measurement:
Teachers Retirement System:
Inflation 2.50%
Salary increases 3.00% – 8.75%, average, including inflation
Investment rate of return 6.90%, net of pension plan investment
expense, including inflation
Post-retirement benefit increases 1.50%, semi-annually
Post-retirement mortality rates for service retirements and beneficiaries were based on the Pub-2010
Teachers Headcount Weighted Below Median Healthy Retiree mortality table (ages set forward one
year and adjusted 106%) with the MP-2019 Projection scale applied generationally. The rates of
improvement were reduced by 20% for all years prior to the ultimate rate. Post-retirement mortality
rates for disability retirements were based on the Pub-2010 Teachers Mortality Table for Disabled
Retirees (ages set forward one year and adjusted 106%) with the MP-2019 Projection scale applied
generationally. The rates of improvement were reduced by 20% for all years prior to the ultimate rate.
The Pub-2010 Teachers Headcount Weighted Below Median Employee mortality table with ages set
forward one year and adjusted 106% as used for death prior to retirement. Future improvement in
mortality rates was assumed using the MP-2019 projection scale generationally. These rates of
improvement were reduced by 20% for all years prior to the ultimate rate.
The actuarial assumptions used in the June 30, 2022 valuation were based on the results of an actuarial
experience study for the period July 1, 2013 – June 30, 2018.
Employees' Retirement System:
Inflation 2.50%
Salary increases 3.00% – 6.75%, including inflation
Investment rate of return 7.00%, net of pension plan investment
expense, including inflation
Cost-of-living adjustment 1.05%, annually
- 31 -
DEKALB COUNTY BOARD OF EDUCATION EXHIBIT “G”
NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
Mortality rates are as follows:
• The Pub-2010 General Employee Table, with no adjustments, projected generationally with the
MP-2019 scale is used for both males and females while in active service.
• The Pub-2010 Family of Tables projected generationally with the MP-2019 Scale and with
further adjustments are used for post-retirement mortality assumptions as follows:
Participant Type Membership Table Set Forward (+)/ Setback (-) Adjustment to Rates
Service Retirees General Healthy Annuitant Male: +1; Female: +1 Male: 105%; Female: 108%
Disability Retirees General Disabled Male: -3; Female: 0 Male: 103%; Female: 106%
Beneficiaries General Contingent Survivors Male: +2; Female: +2 Male: 106%; Female: 105%
The actuarial assumptions used in the June 30, 2022 valuation were based on the results of an actuarial
experience study for the period July 1, 2014 – June 30, 2019.
Public School Employees Retirement System:
Inflation 2.50%
Salary increases N/A
Investment rate of return 7.00%, net of pension plan investment
expense, including inflation
Post-retirement benefit increases 1.50%, semi-annually
Mortality rates are as follows:
• The Pub-2010 General Employee Table, with no adjustments, projected generationally with the
MP-2019 scale is used for both males and females while in active service.
• The Pub-2010 Family of Tables projected generationally with the MP-2019 Scale and with
further adjustments are used for post-retirement mortality assumptions as follows:
Participant Type Membership Table Set Forward (+)/ Setback (-) Adjustment to Rates
Service Retirees General Healthy Below- Male: +2; Female: +2 Male: 101%; Female: 103%
Median Annuitant
Disability Retirees General Disabled Male: -3; Female: 0 Male: 103%; Female: 106%
Beneficiaries General Below-Median Male: +2; Female: +2 Male: 104%; Female: 99%
Contingent Survivors
The actuarial assumptions used in the June 30, 2022 valuation were based on the results of an actuarial
experience study for the period July 1, 2014 – June 30, 2019.
- 32 -
DEKALB COUNTY BOARD OF EDUCATION EXHIBIT “G”
NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
The long-term expected rate of return on TRS, ERS and PSERS pension plan investments was
determined using a log-normal distribution analysis in which best-estimate ranges of expected future
real rates of return (expected returns, net of pension plan investment expense and inflation) are
developed for each major asset class. These ranges are combined to produce the long-term expected
rate of return by weighting the expected future real rates of return by the target asset allocation
percentage and by adding expected inflation. The target allocation and estimates of arithmetic real rates
of return for each major asset class are summarized in the following table:
TRS/ERS/PSERS Long-Term
Target Expected Real
Asset Class Allocation Rate of Return*
Fixed income 30.00% 0.90%
Domestic large stocks 46.30% 9.40%
Domestic small stocks 1.20% 13.40%
International developed market stocks 12.30% 9.40%
International emerging market stocks 5.20% 11.40%
Alternative 5.00% 10.50%
Total 100.00%
* Rates shown are net of inflation
Discount Rate: The discount rate used to measure the total TRS pension liability was 6.90%. The
discount rate used to measure the total ERS and PSERS pension liability was 7.00%. The projection of
cash flows used to determine the discount rate assumed that plan member contributions will be made at
the current contribution rate and that employer and nonemployer contributions will be made at rates
equal to the difference between actuarially determined contribution rates and the member rate. Based
on those assumptions, the TRS, ERS and PSERS pension plans’ fiduciary net position were projected to
be available to make all projected future benefit payments of current plan members. Therefore, the
long-term expected rate of return on pension plan investments was applied to all periods of projected
benefit payments to determine the total pension liability.
- 33 -
DEKALB COUNTY BOARD OF EDUCATION EXHIBIT “G”
NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
Sensitivity of the School District’s Proportionate Share of the Net Pension Liability to
Changes in the Discount Rate: The following presents the School District’s proportionate share of
the net pension liability calculated using the discount rate of 6.90% and 7.00%, as well as what the
School District’s proportionate share of the net pension liability would be if it were calculated using a
discount rate that is 1‐percentage‐point lower (5.90% and 6.00%) or 1-percentage-point higher (7.90%
and 8.00%) than the current rate:
1% Decrease Current Discount Rate 1% Increase
Teachers Retirement System:
(5.90%) (6.90%) (7.90%)
School District's proportionate share of
the net pension liability $ 2,158,367,537.00 $ 1,365,090,913.00 $ 717,273,759.00
1% Decrease Current Discount Rate 1% Increase
Employees' Retirement System:
(6.00%) (7.00%) (8.00%)
School District's proportionate share of
the net pension liability $ 1,707,934.00 $ 1,244,661.00 $ 854,801.00
Pension Plan Fiduciary Net Position: Detailed information about the pension plan’s fiduciary net
position is available in the separately issued TRS, ERS and PSERS financial report which is publicly
available at www.trsga.com/publications and http://www.ers.ga.gov/financials.
Defined Contribution Plan
On July 11, 1983, DeKalb County Board of Education began an employer paid 403(b) annuity plan for
the group of employees covered under the Public School Employees Retirement System (PSERS).
Recognizing that PSERS was a limited defined contribution and defined benefit plan which did not
provide for an adequate retirement for this group of employees, it was the Board's desire to supplement
the retirement of this group.
The Board selected Fidelity Investments as the provider of this plan. For each employee covered under
PSERS, the Board began contributing to the plan an amount equal to 8% of the employee’s base pay.
The employee becomes vested in the plan when the first contribution is made. Funds accumulated in
the employer paid accounts become available to the employee upon retirement or when the employee
reaches age 59½.
Employer contributions for the current fiscal year and the preceding two fiscal years are as follows:
Percentage Required
Fiscal Year Contributed Contribution
2024 8% $ 5,214,912.75
2023 8% $ 4,680,792.76
2022 8% $ 4,072,085.40
- 34 -
DEKALB COUNTY BOARD OF EDUCATION EXHIBIT “G”
NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
NOTE 14: TAX ABATEMENTS
DeKalb County Development Authority enters into property tax abatement agreements with local
businesses for the purpose of attracting or retaining businesses within their jurisdictions. The
abatements may be granted to any business located within or promising to relocate to DeKalb County.
For the fiscal year ended June 30, 2024, DeKalb County abated property taxes due to the School
District that were levied on July 27, 2023 and due on November 15, 2023 totaling $14,886,513.31.
Included in that amount abated is the following individual tax abatement agreement that exceeded 10
percent of the total amount abated:
• A 76 percent property tax abatement on residential and retail rental property. The abatement
amounted to $1,679,415.17.
- 35 -
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DEKALB COUNTY BOARD OF EDUCATION SCHEDULE "1"
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY
TEACHERS RETIREMENT SYSTEM OF GEORGIA
School Plan fiduciary
District's State of Georgia's School District's net position as
For the proportion proportionate share proportionate a percentage
Year of the School District's of the NPL share of the NPL as of the total
Ended Net Pension proportionate share associated with the School District's a percentage of its pension
June 30 Liability (NPL) of the NPL School District Total covered payroll covered payroll liability
2024 4.623619% $ 1,365,090,913.00 $ 1,661,627.00 $ 1,366,752,540.00 $ 673,940,581.00 202.55% 76.29%
2023 4.915646% $ 1,596,205,276.00 $ 2,168,476.00 $ 1,598,373,752.00 $ 665,828,484.28 239.73% 72.85%
2022 5.169648% $ 457,220,884.00 $ 640,241.00 $ 457,861,125.00 $ 673,940,061.13 67.84% 92.03%
2021 5.284677% $ 1,280,155,612.00 $ 1,742,184.00 $ 1,281,897,796.00 $ 682,862,278.03 187.47% 77.01%
2020 5.214897% $ 1,121,343,866.00 $ 1,502,609.00 $ 1,122,846,475.00 $ 637,487,717.00 175.90% 78.56%
2019 5.138067% $ 953,735,293.00 $ 1,246,448.00 $ 954,981,741.00 $ 613,539,685.00 155.45% 80.27%
2018 5.018739% $ 932,748,101.00 $ 5,136,236.00 $ 937,884,337.00 $ 579,389,485.00 160.99% 79.33%
2017 4.854299% $ 1,001,496,009.00 $ 7,883,562.00 $ 1,009,379,571.00 $ 536,892,957.00 186.54% 76.06%
2016 4.712696% $ 717,461,169.00 $ 5,869,616.00 $ 723,330,785.00 $ 501,452,947.00 143.08% 81.44%
2015 4.712930% $ 595,416,542.00 $ 4,485,967.00 $ 599,902,509.00 $ 483,104,965.00 123.25% 84.03%
- 37 -
DEKALB COUNTY BOARD OF EDUCATION SCHEDULE "2"
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CONTRIBUTIONS
TEACHERS RETIREMENT SYSTEM OF GEORGIA
Contributions in relation to Contribution as a
For the Year Contractually required the contractually required Contribution deficiency School District's percentage of covered
Ended June 30 contribution contribution (excess) covered payroll payroll
2024 $ 145,665,061.74 $ 145,665,061.74 $ - $ 730,190,913.33 19.95%
2023 $ 134,653,328.00 $ 134,653,328.00 $ - $ 673,940,581.00 19.98%
2022 $ 131,721,590.68 $ 131,721,590.68 $ - $ 665,828,484.28 19.78%
2021 $ 128,272,082.06 $ 128,272,082.06 $ - $ 673,940,061.13 19.03%
2020 $ 144,220,337.56 $ 144,220,337.56 $ - $ 682,862,278.03 21.12%
2019 $ 133,220,772.00 $ 133,220,772.00 $ - $ 637,487,717.00 20.90%
2018 $ 103,010,906.00 $ 103,010,906.00 $ - $ 613,539,685.00 16.79%
2017 $ 82,226,356.00 $ 82,226,356.00 $ - $ 579,389,485.00 14.19%
2016 $ 76,015,170.00 $ 76,015,170.00 $ - $ 536,892,957.00 14.16%
2015 $ 65,941,063.00 $ 65,941,063.00 $ - $ 501,452,947.00 13.15%
- 38 -
DEKALB COUNTY BOARD OF EDUCATION SCHEDULE "3"
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY
EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA
School District's Plan fiduciary net
School District's School District's proportionate share of position as a
For the Year Ended proportion of the Net proportionate share of School District's covered the NPL as a percentage percentage of total
June 30 Pension Liability (NPL) the NPL payroll of covered payroll pension liability
2024 0.020864% $ 1,244,661.00 $ 802,387.08 155.12% 71.20%
2023 0.026139% $ 1,745,684.00 $ 656,113.30 266.06% 67.44%
2022 0.036295% $ 848,905.00 $ 901,325.62 94.18% 87.62%
2021 0.031552% $ 1,329,903.00 $ 799,520.44 166.34% 76.21%
2020 0.034441% $ 1,421,219.00 $ 868,144.00 163.71% 76.74%
2019 0.036753% $ 1,510,928.00 $ 1,065,707.00 141.78% 76.68%
2018 0.043448% $ 1,764,569.00 $ 1,035,482.00 170.41% 76.33%
2017 0.036208% $ 1,712,790.00 $ 841,877.00 203.45% 72.34%
2016 0.037839% $ 1,533,008.00 $ 917,547.00 167.08% 76.20%
2015 0.038132% $ 1,430,186.00 $ 900,182.00 158.88% 77.99%
- 39 -
DEKALB COUNTY BOARD OF EDUCATION SCHEDULE "4"
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CONTRIBUTIONS
EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA
Contributions in relation to Contribution as a
For the Year Contractually required the contractually required Contribution deficiency School District's percentage of covered
Ended June 30 contribution contribution (excess) covered payroll payroll
2024 $ 142,058.36 $ 142,058.36 $ - $ 486,263.93 29.21%
2023 $ 177,598.00 $ 177,598.00 $ - $ 802,387.08 22.13%
2022 $ 161,600.71 $ 161,600.71 $ - $ 656,113.30 24.63%
2021 $ 222,266.91 $ 222,266.91 $ - $ 901,325.62 24.66%
2020 $ 197,161.74 $ 197,161.74 $ - $ 799,520.44 24.66%
2019 $ 215,126.00 $ 215,126.00 $ - $ 868,144.00 24.78%
2018 $ 264,402.00 $ 264,402.00 $ - $ 1,065,707.00 24.81%
2017 $ 256,903.00 $ 256,903.00 $ - $ 1,035,482.00 24.81%
2016 $ 208,112.00 $ 208,112.00 $ - $ 841,877.00 24.72%
2015 $ 201,493.00 $ 201,493.00 $ - $ 917,547.00 21.96%
- 40 -
DEKALB COUNTY BOARD OF EDUCATION SCHEDULE "5"
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY
PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA
School
District's State of Georgia's School District's Plan fiduciary
For the proportion of proportionate share proportionate net position as a
Year the Net School District's of the NPL share of the NPL percentage of
Ended Pension proportionate share associated with the School District's as a percentage of the total pension
June 30 Liability (NPL) of the NPL School District Total covered payroll its covered payroll liability
2024 0.00% $ - $ 10,029,737.00 $ 10,029,737.00 $ 74,008,818.17 N/A 85.67%
2023 0.00% $ - $ 14,058,234.00 $ 14,058,234.00 $ 60,456,642.00 N/A 81.21%
2022 0.00% $ - $ 1,509,014.00 $ 1,509,014.00 $ 17,990,922.79 N/A 98.00%
2021 0.00% $ - $ 10,770,643.00 $ 10,770,643.00 $ 19,352,396.36 N/A 84.45%
2020 0.00% $ - $ 10,297,967.00 $ 10,297,967.00 $ 19,320,252.98 N/A 85.02%
2019 0.00% $ - $ 9,955,524.00 $ 9,955,524.00 $ 18,782,082.78 N/A 85.26%
2018 0.00% $ - $ 8,973,183.00 $ 8,973,183.00 $ 18,179,667.63 N/A 85.69%
2017 0.00% $ - $ 11,997,914.00 $ 11,997,914.00 $ 19,214,219.57 N/A 81.00%
- 41 -
DEKALB COUNTY BOARD OF EDUCATION SCHEDULE "6"
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF PROPORTIONATE SHARE OF THE NET OPEB LIABILITY
SCHOOL OPEB FUND
School District's Plan fiduciary
School State of Georgia's proportionate net position
District's proportionate share of the NOL as a
For the proportion of School District's share of the NOL School District's as a percentage percentage of
Year Ended the Net OPEB proportionate share associated with covered-employee of its covered- the total OPEB
June 30 Liability (NOL) of the NOL the School District Total payroll employee payroll liability
2024 5.594295% $ 612,766,195.00 $ - $ 612,766,195.00 $ 658,493,513.68 93.06% 6.05%
2023 5.921292% $ 586,396,320.00 $ - $ 586,396,320.00 $ 736,354,501.30 79.64% 6.17%
2022 6.227421% $ 674,481,213.00 $ - $ 674,481,213.00 $ 654,799,255.99 103.01% 6.14%
2021 6.223462% $ 914,081,630.00 $ - $ 914,081,630.00 $ 649,695,559.00 140.69% 3.99%
2020 6.276415% $ 770,250,780.00 $ - $ 770,250,780.00 $ 587,544,464.00 131.10% 4.63%
2019 6.228755% $ 791,655,645.00 $ - $ 791,655,645.00 $ 552,356,240.00 143.32% 2.93%
2018 6.123753% $ 860,384,832.00 $ - $ 860,384,832.00 $ 531,360,186.00 161.92% 1.61%
This schedule is intended to show information for 10 years. Additional years will be displayed as they become available. - 42 -
DEKALB COUNTY BOARD OF EDUCATION SCHEDULE "7"
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CONTRIBUTIONS
SCHOOL OPEB FUND
Contribution as a
Contributions in relation to School District's percentage of
For the Year Contractually required the contractually required Contribution deficiency covered-employee covered-employee
Ended June 30 contribution contribution (excess) payroll payroll
2024 $ 22,449,217.27 $ 22,449,217.27 $ - $ 731,704,132.57 3.07%
2023 $ 21,506,924.00 $ 21,506,924.00 $ - $ 658,493,513.68 3.27%
2022 $ 21,409,913.00 $ 21,409,913.00 $ - $ 736,354,501.30 2.91%
2021 $ 23,164,958.00 $ 23,164,958.00 $ - $ 654,779,255.99 3.54%
2020 $ 21,046,297.00 $ 21,046,297.00 $ - $ 649,698,559.00 3.24%
2019 $ 33,802,837.00 $ 33,802,837.00 $ - $ 587,544,464.00 5.75%
2018 $ 32,283,037.00 $ 32,283,037.00 $ - $ 552,356,240.00 5.84%
2017 $ 31,929,735.00 $ 31,929,735.00 $ - $ 531,360,186.00 6.01%
This schedule is intended to show information for 10 years. Additional years will be displayed as they become available. - 43 -
DEKALB COUNTY BOARD OF EDUCATION SCHEDULE "8"
NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED JUNE 30, 2024
Teachers Retirement System
Change of benefit terms: There have been no changes in benefit terms.
Changes of assumptions: On November 18, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the
System. Primary among the changes were the updates to rates of mortality, retirement, disability, withdrawal and salary increases. The expectation of retired life
mortality was changed to RP‐2000 White Collar Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries’ projection scale
BB (set forward one year for males).
On May 15, 2019, the Board adopted recommended changes from the smoothed valuation interest rate methodology that has been in effect since June 30, 2009,
to a constant interest rate method. In conjunction with the methodology, the long-term assumed rate of return in assets (discount rate) has been changed
from 7.50% to 7.25%, and the assumed annual rate of inflation has been reduced from 2.75% to 2.50%.
In 2019 and later, the expectation of retired life mortality was changed to the Pub-2010 Teacher Headcount Weighted Below Median Healthy Retiree mortality
table from the RP-2000 Mortality Tables. In 2019, rates of withdrawal, retirement, disability and mortality were adjusted to more closely reflect actual experience.
On May 11, 2022, the Board adopted recommended changes to the long-term assumed rate of return and payroll growth assumption utilized by the System. The
long-term assumed rate of return was changed from 7.25% to 6.90%, and the payroll growth assumption was changed from 3.00% to 2.50%.
Employees’ Retirement System
Changes of benefit terms: There have been no changes in benefit terms.
Changes of assumptions: On December 17, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the
System. Primary among the changes were the updates to rates of mortality, retirement, disability, withdrawal and salary increases. The expectation of retired life
mortality was changed to the RP-2000 Combined Mortality Table projected to 2025 with projection scale BB (set forwarded 2 years for both males and females).
A new funding policy was initially adopted the Board on March 15, 2018, and most recently amended on June 18, 2020. Because of this new funding policy, the
assumed investment rate of return was reduced from 7.50% to 7.40% for the June 30, 2017 actuarial valuation and further reduced from 7.40% to 7.30% for the
June 30, 2018 actuarial valuation.
On December 17, 2020, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System based on the experience
study prepared for the five-year period ending June 30, 2019. Primary among the changes were the updates to rate of mortality, retirement, withdrawal, and salary
increases. This also included a change to the long-term assumed investment rate of return of 7.00%. These assumption changes are reflected in the calculation of
the June 30, 2021 Total Pension Liability.
On April 21, 2022, the Board adopted a new funding policy which, in part, provides that the Actuarial Accrued Liability and Normal Cost of the System will include a
prefunded variable Cost-of-Living Adjustment (COLA) for eligible retirees and beneficiaries of the System. Under the new policy, future COLAs are provided
through a profit‐sharing mechanism using the System’s asset performance. After studying the parameters of this new policy, the assumption for future COLAs was
set at 1.05%. Previously, no future COLAs were assumed. In addition, the funding policy set the assumed rate of return at 7.20% for the June 30, 2021 valuation and
established a new Transitional Unfunded Actuarial Accrued Liability as of June 30, 2021 which will be amortized over a closed 20-year period.
Public School Employees Retirement System
Changes of benefit terms: There have been no changes in benefit terms.
Changes of assumptions: On December 17, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the
System. Primary among the changes were the updates to rates of mortality, retirement and withdrawal. The expectation of retired life mortality was changed to the
RP‐2000 Blue Collar Mortality Table projected to 2025 with projection scale BB (set forward 3 years for males and 2 years for females).
A new funding policy was initially adopted by the Board on March 15, 2018, and most recently amended on December 17, 2020. Because of this new funding
policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for the June 30, 2017 actuarial valuation and further reduced from 7.40% to 7.30%
for the June 30, 2018 actuarial valuation.
On December 17, 2020, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System based on the experience
study prepared for the five-year period ending June 30, 2019. Primary among the changes were the updates to rates or mortality, retirement, disability, and
withdrawal. This also included a change to the long-term assumed investment rate of return to 7.00%. These assumption changes are reflected in the calculation
of the June 30, 2021 Total Pension Liability.
- 44 -
DEKALB COUNTY BOARD OF EDUCATION SCHEDULE "8"
NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED JUNE 30, 2024
School OPEB Fund
Changes of benefit terms: There have been no changes in benefit terms.
Changes in assumptions: June 30, 2022 valuation: The tobacco use assumption and aging factors were revised.
June 30, 2020 valuation: Decremental assumptions were changed to reflect the Employees' Retirement System's experience
study. Approximately 0.10% of employees are members of the Employees' Retirement System.
June 30, 2019 valuation: Decremental assumptions were changed to reflect the Teachers Retirement System's experience study.
June 30, 2018 valuation: The inflation assumption was lowered from 2.75% to 2.50%.
June 30, 2017 valuation: The participation assumption, tobacco use assumption and morbidity factors were revised.
June 30, 2015 valuation: Decremental and underlying inflation assumptions were changed to reflect the Retirement Systems' experience studies.
June 30, 2012 valuation: A data audit was performed and data collection procedures and assumptions were changed.
The discount rate was updated from 3.07% as of June 30, 2016 to 3.58% as of June 30, 2017, to 3.87% as of June 30, 2018, back to 3.58% as of June 30, 2019,
to 2.22% as of June 30, 2020, to 2.20% as of June 30, 2021, to 3.57% as of June 30, 2022, and to 3.68% as of June 30, 2023.
- 45 -
DEKALB COUNTY BOARD OF EDUCATION SCHEDULE "9"
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
YEAR ENDED JUNE 30, 2024
NONAPPROPRIATED BUDGETS ACTUAL VARIANCE
ORIGINAL (1) FINAL (1) AMOUNTS OVER/UNDER
REVENUES
Property Taxes $ 900,800,000.00 $ 900,800,000.00 $ 882,819,241.33 $ (17,980,758.67)
Sales Taxes 15,000,000.00 15,000,000.00 12,936,930.42 (2,063,069.58)
State Funds 538,868,713.62 551,085,510.62 562,557,339.72 11,471,829.10
Federal Funds 113,538,695.94 485,617,363.96 269,871,280.67 (215,746,083.29)
Charges for Services 61,355,041.00 61,355,041.00 4,118,922.32 (57,236,118.68)
Investment Earnings 9,000,000.00 9,000,000.00 23,621,148.81 14,621,148.81
Miscellaneous 14,976,333.92 16,710,578.61 25,444,012.48 8,733,433.87
Total Revenues 1,653,538,784.48 2,039,568,494.19 1,781,368,875.75 (258,199,618.44)
EXPENDITURES
Current
Instruction 887,429,680.27 1,044,559,747.99 965,950,820.82 78,608,927.17
Support Services
Pupil Services 124,098,867.52 140,302,176.09 119,637,499.69 20,664,676.40
Improvement of Instructional Services 52,600,191.75 92,969,188.37 52,370,489.20 40,598,699.17
Educational Media Services 16,825,641.97 20,002,639.45 17,685,474.59 2,317,164.86
General Administration 64,598,158.16 80,691,728.55 55,249,915.34 25,441,813.21
School Administration 84,202,541.02 89,841,679.05 80,066,618.96 9,775,060.09
Business Administration 27,492,238.54 20,982,119.51 17,564,023.56 3,418,095.95
Maintenance and Operation of Plant 223,155,406.24 260,990,722.80 169,104,856.05 91,885,866.75
Student Transportation Services 80,162,148.51 117,428,147.91 80,402,392.40 37,025,755.51
Central Support Services 34,057,966.34 29,549,046.50 36,324,158.24 (6,775,111.74)
Other Support Services 3,437,916.47 3,933,191.46 1,805,540.55 2,127,650.91
Enterprise Operation 1,958,754.33 3,107,024.33 6,443,489.86 (3,336,465.53)
Food Services Operation 75,989,273.57 104,699,667.01 65,279,933.03 39,419,733.98
Capital Outlay - 116,135,564.98 38,651,757.30 77,483,807.68
Total Expenditures 1,676,008,784.69 2,125,192,644.00 1,706,536,969.59 418,655,674.41
Excess of Revenues over (under) Expenditures (22,470,000.21) (85,624,149.81) 74,831,906.16 160,456,055.97
OTHER FINANCING SOURCES(USES)
Other Sources 9,232,538.00 8,638,436.90 214,735.20 (8,423,701.70)
Other Uses (9,232,538.00) (8,638,436.90) - 8,638,436.90
Total Other Financing Sources (Uses) - - 214,735.20 214,735.20
Net Change in Fund Balances (22,470,000.21) (85,624,149.81) 75,046,641.36 160,670,791.17
Fund Balances - Beginning 301,653,657.81 460,332,094.34 445,733,119.00 (14,598,975.34)
Fund Balances - Ending $ 279,183,657.60 $ 374,707,944.53 $ 520,779,760.36 $ 146,071,815.83
Notes to the Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual
(1) Original and Final Budget amounts do not include the budgeted revenues or expenditures of the various principal accounts.
The actual revenues and expenditures of the various principal accounts are $11,107,909.69 and $10,773,850.55, respectively.
The accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting
which is the basis of accounting used in the presentation of the fund financial statements.
See notes to the basic financial statements. - 46 -
DEKALB COUNTY BOARD OF EDUCATION SCHEDULE "10"
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2024
PASS-
THROUGH
ASSISTANCE ENTITY
FUNDING AGENCY LISTING ID EXPENDITURES
PROGRAM/GRANT NUMBER NUMBER IN PERIOD
Agriculture, U.S. Department of
Child Nutrition Cluster
Pass-Through From Georgia Department of Education
Food Services
School Breakfast Program 10.553 245GA324N1199 $ 13,048,685.80
National School Lunch Program 10.555 245GA324N1199 43,298,827.02
COVID-19 - National School Lunch Program 10.555 225GA324N1099 2,299,578.41
Total U.S. Department of Agriculture 58,647,091.23
Education, U.S. Department of
Education Stabilization Fund
Pass-Through From Georgia Department of Education
COVID-19 - Elementary and Secondary School Emergency Relief Fund 84.425D S425D210012 21,037,652.46
COVID-19 - American Rescue Plan Elementary and Secondary School
Emergency Relief Fund 84.425U S425U210012 101,306,687.55
COVID-19 - American Rescue Plan Elementary and Secondary School
Emergency Relief Fund - Homeless Children and Youth 84.425W S425W210011 627,675.00
Total Education Stabilization Fund 122,972,015.01
Special Education Cluster
Pass-Through From Georgia Department of Education
Special Education
Grants to States 84.027A H027A220073 16,703,524.23
Grants to States 84.027A H027A230073 597,933.28
COVID-19 - American Rescue Plan - Grants to States 84.027X H027X210073 1,019,340.86
Preschool Grants 84.173A H173A220081 681,328.61
Preschool Grants 84.173A H173A230081 249,310.40
COVID-19 - American Rescue Plan - Preschool 84.173X H173X210081 83,953.70
Total Special Education Cluster 19,335,391.08
Other Programs
Direct
Graduate Ready to Attain Success in Postsecondary Program 84.116 300,000.00
School Based Mental Health Program 84.184H 543,006.38
Pass-Through From Georgia Department of Education
Career and Technical Education - Basic Grants to States 84.048A V048A230010 1,322,989.47
Education for Homeless Children and Youth 84.196A S196A220011 105,591.49
Education for Homeless Children and Youth 84.196A S196A230011 7,045.22
English Language Acquisition State Grants 84.365A S365A220010 2,386,294.12
English Language Acquisition State Grants 84.365A S365A230010 1,028,246.81
Migrant Education State Grant Program 84.011A S011A220011 4,381.00
Migrant Education State Grant Program 84.011A S011A230011 21,472.36
Student Support and Academic Enrichment Program 84.424A S424A220011 1,442,193.48
Student Support and Academic Enrichment Program 84.424A S424A230011 1,653,557.28
Supporting Effective Instruction State Grants 84.367A S367A220001 4,949,191.16
Supporting Effective Instruction State Grants 84.367A S367A230001 522,345.00
Title I Grants to Local Educational Agencies 84.010A S010A220010 36,406,505.98
Title I Grants to Local Educational Agencies 84.010A S010A230010 14,315,692.06
Pass-Through From Technical College System of Georgia
Adult Education - Basic Grants to States 84.002A V002A230010 450,989.38
Total Other Programs 65,459,501.19
Total U.S. Department of Education 207,766,907.28
Federal Communications Commission, U.S.
Direct
COVID-19 - Emergency Connectivity Fund Program 32.009 193,277.76
- 47 -
DEKALB COUNTY BOARD OF EDUCATION SCHEDULE "10"
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2024
PASS-
THROUGH
ASSISTANCE ENTITY
FUNDING AGENCY LISTING ID EXPENDITURES
PROGRAM/GRANT NUMBER NUMBER IN PERIOD
Health and Human Services, U.S. Department of
Direct
Human Trafficking Youth Prevention Education Grant 93.327 345,946.08
Treasury, U.S. Department of
Pass-Through From Georgia Department of Education
COVID-19 - Coronavirus State and Local Fiscal Recovery Funds 21.027 SLT-1189 12,214.74
Defense, U.S. Department of
Direct
Department of the Air Force
R.O.T.C. Program 12. UNKNOWN 631,346.43
Department of the Army
R.O.T.C. Program 12. UNKNOWN 217,700.48
Department of the Navy
R.O.T.C. Program 12. UNKNOWN 1,163,623.70
Total U. S. Department of Defense 2,012,670.61
Total Expenditures of Federal Awards $ 268,978,107.70
Notes to the Schedule of Expenditures of Federal Awards
Note 1. Basis of Presentation
The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of the DeKalb County Board of Education (the
"Board") under programs of the federal government for the year ended June 30, 2024. The information in this Schedule is presented in accordance with the
requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards
(Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Board, it is not intended to and does not present the financial
position or changes in net position of the Board.
Note 2. Summary of Significant Accounting Policies
Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles
contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Note 3. Indirect Cost Rate
The Board has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.
See notes to the basic financial statements. - 48 -
DEKALB COUNTY BOARD OF EDUCATION SCHEDULE "11"
SCHEDULE OF STATE REVENUE
YEAR ENDED JUNE 30, 2024
GOVERNMENTAL FUND TYPES
GENERAL CAPITAL PROJECTS
AGENCY/FUNDING FUND FUND TOTAL
GRANTS
Bright From the Start:
Georgia Department of Early Care and Learning
Pre-Kindergarten Program $ 15,723,816.06 $ - $ 15,723,816.06
Education, Georgia Department of
Quality Basic Education
Direct Instructional Cost
Kindergarten Program 43,648,299.00 - 43,648,299.00
Kindergarten Program - Early Intervention Program 2,242,205.00 - 2,242,205.00
Primary Grades (1-3) Program 100,636,778.00 - 100,636,778.00
Primary Grades - Early Intervention (1-3) Program 7,803,311.00 - 7,803,311.00
Upper Elementary Grades (4-5) Program 48,293,894.00 - 48,293,894.00
Upper Elementary Grades - Early Intervention (4-5) Program 4,467,021.00 - 4,467,021.00
Middle School (6-8) Program 81,823,452.00 - 81,823,452.00
High School General Education (9-12) Program 79,535,531.00 - 79,535,531.00
Vocational Laboratory (9-12) Program 20,041,012.00 - 20,041,012.00
Students with Disabilities 103,023,342.00 - 103,023,342.00
Gifted Student - Category VI 40,470,968.00 - 40,470,968.00
Remedial Education Program 3,985,946.00 - 3,985,946.00
Alternative Education Program 6,076,021.00 - 6,076,021.00
English Speakers of Other Languages (ESOL) 51,794,808.00 - 51,794,808.00
Media Center Program 15,163,944.00 - 15,163,944.00
20 Days Additional Instruction 4,479,292.00 - 4,479,292.00
Staff and Professional Development 2,564,953.00 - 2,564,953.00
Principal Staff and Professional Development 47,688.00 - 47,688.00
Indirect Cost
Central Administration 12,605,325.00 - 12,605,325.00
School Administration 30,590,883.00 - 30,590,883.00
Facility Maintenance and Operations 27,634,744.00 - 27,634,744.00
QBE Local Five Mill Reduction (175,540,704.00) - (175,540,704.00)
Local Charter Supplement 517,773.00 - 517,773.00
One Time QBE Adjustment 9,950,735.00 - 9,950,735.00
Categorical Grants
Pupil Transportation
Regular 5,457,894.00 - 5,457,894.00
Nursing Services 2,168,189.00 - 2,168,189.00
Other State Programs
Career, Technical and Agricultural Education (CTEA) 766,002.13 - 766,002.13
Charter Schools - Facilities 966,154.78 - 966,154.78
Dyslexia Services Grant 198,141.00 - 198,141.00
Food Services 1,366,046.00 - 1,366,046.00
GNETS State Grant 1,888,345.76 - 1,888,345.76
GOLD (Georgia Outdoor Learning Demonstration) Grant 1,482.54 - 1,482.54
GRASP - Graduate Ready to Attain Success in Postsecondary Program 252,405.11 - 252,405.11
Hygiene Products 73,696.00 - 73,696.00
Math and Science Supplements 452,811.28 - 452,811.28
Preschool Disability Services 2,084,574.98 - 2,084,574.98
Residential Treatment Centers Grant 379,594.44 - 379,594.44
Rule 10 Special Education Grant 120,920.71 - 120,920.71
School Security Grant 6,600,000.00 - 6,600,000.00
Teachers Retirement 236,710.93 - 236,710.93
Georgia State Financing and Investment Commission
Reimbursement on Construction Projects - 1,117,376.29 1,117,376.29
Office of the State Treasurer
Public School Employees Retirement 1,963,334.00 - 1,963,334.00
$ 562,557,339.72 $ 1,117,376.29 $ 563,674,716.01
See notes to the basic financial statements. - 49 -
DEKALB COUNTY BOARD OF EDUCATION SCHEDULE "12"
SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS
YEAR ENDED JUNE 30, 2024
ORIGINAL CURRENT ESTIMATED
ESTIMATED ESTIMATED COMPLETION
PROJECT COST (1) COSTS (2) DATE
2012 Sales Tax - Authorized Projects
1. Americans with Disabilities Act (ADA) Improvements $ 2,342,500.00 $ 15,044,323.50 Completed
2. Stadiums 9,557,400.00 10,628,646.65 Completed
3. Capital renewal program 84,892,200.00 94,202,587.97 Completed
4. Code requirements 2,342,500.00 2,677,726.34 Completed
5. Coralwood Diagnostic Center addition 9,932,200.00 6,164,482.54 Completed
6. Early learning center 2,717,300.00 2,188,329.76 Completed
7. Arts School at former Avondale Middle School 4,029,100.00 11,127,167.00 June 2028
8. Renovation of Southwest Dekalb High School and Stone Mountain High
School 11,056,600.00 34,163,839.27 Completed
9. Replacement of Austin Elementary School, Fernbank Elementary School,
Gresham Park Elementary School, Pleasantdale Elementary School, Peachcrest
Elementary School, Rockbridge Elementary School, and Smoke Rise Elementary
School 135,021,700.00 169,796,479.57 Completed
10. Henderson Middle School renovation/addition 14,992,000.00 19,245,872.25 Completed
11. Redan High School renovation/addition 20,988,800.00 22,065,648.16 Completed
12. Chamblee High School replacement 55,001,900.00 69,089,766.52 Completed
13. McNair Middle School replacement 35,043,800.00 40,742,607.53 Completed
14. Local school priority requests 5,153,500.00 2,902,294.25 Completed
15. Demolition 2,342,500.00 4,221,328.66 Completed
16. Safety/security systems upgrade 2,342,500.00 2,292,719.24 Completed
17. Technology equipment and infrastructure refresh 36,261,900.00 33,277,357.33 Completed
18. School buses 9,463,700.00 12,800,247.61 Completed
19. Service vehicles 1,592,900.00 2,252,530.33 Completed
20. Other capital improvements and supporting services (includes Bond Series
2012 Bond Issuance Costs, Principal Payments and 2011 COPS Interest
Payments). 29,925,000.00 80,271,016.03 Completed
Subtotal 2012 Projects 475,000,000.00 635,154,970.51
2017 Sales Tax - Authorized Projects
(1) Making of site, facility and technology improvements deemed necessary to
improve safety and security, such as enhancing surveillance systems, fire alarm
systems, fire sprinkler installation, perimeter fencing, etc. at some or all of
the DeKalb County School District (DCSD) schools and facilities; 12,872,000.00 41,245,876.00 June 2026
(2) Adding to, modifying, replacing, reconfiguring schools and/or creating
new schools and/or facilities to accommodate current and future student
enrollment, address major facility conditions, develop early childhood centers,
enhance regional support of schools, and accommodate expanded new
programmatic needs, and acquiring land for constructing and equipping new
and/or replacement schools/facilities, or equivalent facility capacity, including,
but not limited to, site preparation and the demolition of all or portions of
existing structures and/or acquiring leasehold purchasing of facilities/
properties as needed based on DCSD's determination of need priorities; 298,180,000.00 260,642,220.00 June 2028
(3) Adding to, renovating, modifying, reconfiguring, equipping, upgrading,
supplementing, acquiring, replacing, and installing capital improvements for
various existing and new schools, buildings and facilities (including schools,
buildings, and facilities to be constructed pursuant to this resolution, once
completed and including any site preparation and demolition of existing
structures if necessary) e.g., roofing, plumbing, wiring, painting, water piping,
HVAC, making athletic field and physical education facility upgrades and
improvements, ADA renovations, infrastructure improvements, repaving,
restroom facilities, systems for environmental and air quality control, physical
education facilities, kitchens, improvements to comply with health, safety
and applicable building codes, traffic control and optimization, parking and
parking capacity, stormwater management facilities, and program-driven
modifications, as needed based on the DCSD's determination of need
priorities at some or all of the DCSD schools and facilities; 96,948,000.00 184,311,643.00 June 2028
- 50 -
DEKALB COUNTY BOARD OF EDUCATION SCHEDULE "12"
SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS
YEAR ENDED JUNE 30, 2024
ORIGINAL CURRENT ESTIMATED
ESTIMATED ESTIMATED COMPLETION
PROJECT COST (1) COSTS (2) DATE
(4) Making technology improvements, by acquiring, replacing, purchasing,
installing, upgrading or supplementing technology including, but not limited
to technology that supports and/or enhances instruction, digital communication
technology, enhanced school security solutions, wireless technology, enterprise
content management solutions, replacement and/or enhancement of
technology/systems in support of an Enterprise Resource Planning (ERP)
upgrade, data storage systems, telecommunication systems, digital records
retention, technology hardware, software, and related infrastructure at
some or all of the DCSD schools and facilities as needed; 65,000,000.00 71,500,000.00 June 2025
(5) Replacing, purchasing, upgrading, refurbishing or supplementing school
buses and support vehicles and other capital equipment as needed including,
but not limited to items such as desks, chairs, tables, instructional equipment,
band equipment, kitchen equipment, waste compactors, portable
classroom/modular buildings, custodial equipment, grounds equipment, etc.
at some or all DCSD schools and facilities; and 40,000,000.00 40,312,169.00 June 2026
(6) And the expenses incidental to accomplishing the DeKalb projects including,
but not limited to, implementation expenses, management expenses, and
legal expenses. 48,000,000.00 32,288,092.00 June 2028
Subtotal 2017 Projects 561,000,000.00 630,300,000.00
2022 Sales Tax - Authorized Projects
1. Adding to, upgrading, reconfiguring, renovating, replacing, modifying
and equipping existing and replacement schools, support facilities, athletic fields
and physical education facilities; 150,000,000.00 28,000,000.00 June 2028
2. Acquiring and developing land for, constructing and equipping, new
and replacement schools and support facilities, as well as additions to existing
facilities; 352,000,000.00 516,150,000.00 January 2028
3. Installing capital improvements for various existing and new schools,
buildings and facilities; 69,000,000.00 128,750,000.00 January 2028
4. Providing hardware, software, and related infrastructure and making
technology improvements; and 129,000,000.00 95,000,000.00
5. Replacing, purchasing, upgrading school buses, support vehicles, and other
capital equipment. 40,000,000.00 35,500,000.00 January 2028
Subtotal 2022 Projects 740,000,000.00 803,400,000.00
Total $ 1,776,000,000.00 $ 2,068,854,970.51
- 51 -
DEKALB COUNTY BOARD OF EDUCATION SCHEDULE "12"
SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS
YEAR ENDED JUNE 30, 2024
AMOUNT AMOUNT
EXPENDED EXPENDED TOTAL EXCESS
IN CURRENT IN PRIOR COMPLETION PROCEEDS NOT
PROJECT YEAR (3) (4) YEARS (3) (4) COST EXPENDED
2012 Sales Tax - Authorized Projects
1. Americans with Disabilities Act (ADA) Improvements $ 2,728.10 $ 15,041,595.40 $ 15,044,323.50 $ -
2. Stadiums - 10,628,646.65 10,628,646.65 -
3. Capital renewal program 27,432.31 94,175,155.66 94,202,587.97 -
4. Code requirements - 2,677,726.34 2,677,726.34 -
5. Coralwood Diagnostic Center addition - 6,164,482.54 6,164,482.54 -
6. Early learning center - 2,188,329.76 2,188,329.76 -
7. Arts School at former Avondale Middle School - 310,896.41 - -
8. Renovation of Southwest Dekalb High School and Stone Mountain High
School - 34,163,839.27 34,163,839.27 -
9. Replacement of Austin Elementary School, Fernbank Elementary School,
Gresham Park Elementary School, Pleasantdale Elementary School, Peachcrest -
Elementary School, Rockbridge Elementary School, and Smoke Rise Elementary
School 121,106.71 169,675,372.86 169,796,479.57 -
10. Henderson Middle School renovation/addition - 19,245,872.25 19,245,872.25 -
11. Redan High School renovation/addition - 22,065,648.16 22,065,648.16 -
12. Chamblee High School replacement 5,810,912.50 63,278,854.02 69,089,766.52 -
13. McNair Middle School replacement 9,000.00 40,733,607.53 40,742,607.53 -
14. Local school priority requests - 2,902,294.25 2,902,294.25 -
15. Demolition - 4,221,328.66 4,221,328.66 -
16. Safety/security systems upgrade - 2,292,719.24 2,292,719.24 -
17. Technology equipment and infrastructure refresh - 33,277,357.33 33,277,357.33 -
18. School buses - 12,800,247.61 12,800,247.61 -
19. Service vehicles - 2,252,530.33 2,252,530.33 -
20. Other capital improvements and supporting services (includes Bond Series
2012 Bond Issuance Costs, Principal Payments and 2011 COPS Interest
Payments). 1,819.89 80,269,196.14 80,271,016.03 -
Subtotal 2012 Projects 5,972,999.51 618,365,700.41 624,027,803.51 -
2017 Sales Tax - Authorized Projects
(1) Making of site, facility and technology improvements deemed necessary to
improve safety and security, such as enhancing surveillance systems, fire alarm
systems, fire sprinkler installation, perimeter fencing, etc. at some or all of
the DeKalb County School District (DCSD) schools and facilities; 1,481,120.05 9,071,921.48 - -
(2) Adding to, modifying, replacing, reconfiguring schools and/or creating
new schools and/or facilities to accommodate current and future student
enrollment, address major facility conditions, develop early childhood centers,
enhance regional support of schools, and accommodate expanded new
programmatic needs, and acquiring land for constructing and equipping new
and/or replacement schools/facilities, or equivalent facility capacity, including,
but not limited to, site preparation and the demolition of all or portions of
existing structures and/or acquiring leasehold purchasing of facilities/
properties as needed based on DCSD's determination of need priorities; 6,414,172.84 128,188,034.58 - -
(3) Adding to, renovating, modifying, reconfiguring, equipping, upgrading,
supplementing, acquiring, replacing, and installing capital improvements for
various existing and new schools, buildings and facilities (including schools,
buildings, and facilities to be constructed pursuant to this resolution, once
completed and including any site preparation and demolition of existing
structures if necessary) e.g., roofing, plumbing, wiring, painting, water piping,
HVAC, making athletic field and physical education facility upgrades and
improvements, ADA renovations, infrastructure improvements, repaving,
restroom facilities, systems for environmental and air quality control, physical
education facilities, kitchens, improvements to comply with health, safety
and applicable building codes, traffic control and optimization, parking and
parking capacity, stormwater management facilities, and program-driven
modifications, as needed based on the DCSD's determination of need
priorities at some or all of the DCSD schools and facilities; 69,328,444.51 45,183,718.89 - -
- 52 -
DEKALB COUNTY BOARD OF EDUCATION SCHEDULE "12"
SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS
YEAR ENDED JUNE 30, 2024
AMOUNT AMOUNT
EXPENDED EXPENDED TOTAL EXCESS
IN CURRENT IN PRIOR COMPLETION PROCEEDS NOT
PROJECT YEAR (3) (4) YEARS (3) (4) COST EXPENDED
(4) Making technology improvements, by acquiring, replacing, purchasing,
installing, upgrading or supplementing technology including, but not limited
to technology that supports and/or enhances instruction, digital communication
technology, enhanced school security solutions, wireless technology, enterprise
content management solutions, replacement and/or enhancement of
technology/systems in support of an Enterprise Resource Planning (ERP)
upgrade, data storage systems, telecommunication systems, digital records
retention, technology hardware, software, and related infrastructure at
some or all of the DCSD schools and facilities as needed; 882,920.43 63,238,978.52 - -
(5) Replacing, purchasing, upgrading, refurbishing or supplementing school
buses and support vehicles and other capital equipment as needed including,
but not limited to items such as desks, chairs, tables, instructional equipment,
band equipment, kitchen equipment, waste compactors, portable
classroom/modular buildings, custodial equipment, grounds equipment, etc.
at some or all DCSD schools and facilities; and 1,070,466.33 33,527,975.21 - -
(6) And the expenses incidental to accomplishing the DeKalb projects including,
but not limited to, implementation expenses, management expenses, and
legal expenses. 99,474.10 30,459,719.03 - -
Subtotal 2017 Projects 79,276,598.26 309,670,347.71 - -
2022 Sales Tax - Authorized Projects
1. Adding to, upgrading, reconfiguring, renovating, replacing, modifying
and equipping existing and replacement schools, support facilities, athletic fields
and physical education facilities; 3,869,848.21 2,835,661.75 - -
2. Acquiring and developing land for, constructing and equipping, new
and replacement schools and support facilities, as well as additions to existing
facilities; 2,731,003.80 - - -
3. Installing capital improvements for various existing and new schools,
buildings and facilities; - - - -
4. Providing hardware, software, and related infrastructure and making
technology improvements; and 2,173,429.08 - - -
5. Replacing, purchasing, upgrading school buses, support vehicles, and other
capital equipment. - - - -
Subtotal 2022 Projects 8,774,281.09 2,835,661.75 - -
Total $ 94,023,878.86 $ 930,871,709.87 $ 624,027,803.51 $ -
(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax.
(2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion.
(3) The voters of DeKalb County approved the imposition of a 1% sales tax to fund the above projects and retire associated debt.
Amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life
of the projects.
(4) In addition to the expenditures shown above, the School District has incurred interest to provide advance funding as follows:
Prior Years $ 20,367,291.67
Current Year -
Total $ 20,367,291.67
See notes to the basic financial statements. - 53 -
Section II
Compliance and Internal Control Reports
Greg S. Griffin
State Auditor
INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE
AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS
The Honorable Brian P. Kemp, Governor of Georgia
Members of the General Assembly of the State of Georgia
Members of the State Board of Education
and
Dr. Devon Horton, Superintendent and Members of the
DeKalb County Board of Education
We have audited the financial statements of the governmental activities and each major fund of the
DeKalb County Board of Education (School District) as of and for the year ended June 30, 2024, and
the related notes to the financial statements, which collectively comprise the School District’s basic
financial statements, and have issued our report thereon dated June 5, 2025. We conducted our audit in
accordance with the auditing standards generally accepted in the United States of America (GAAS) and
the standards applicable to financial audits contained in Government Auditing Standards issued by the
Comptroller General of the United States.
Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the School District’s
internal control over financial reporting (internal control) as a basis for designing audit procedures that
are appropriate in the circumstances for the purpose of expressing our opinions on the basic financial
statements, but not for the purpose of expressing an opinion on the effectiveness of the School District’s
internal control. Accordingly, we do not express an opinion on the effectiveness of the School District’s
internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control, such that there is a reasonable possibility that a
material misstatement of the School District’s financial statements will not be prevented, or detected
and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of
deficiencies, in internal control that is less severe than a material weakness, yet important enough to
merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies
may exist that were not identified. Given these limitations, during our audit we did not identify any
deficiencies in internal control that we consider to be material weaknesses. We did identify certain
270 Washington Street, SW, Suite 4-101 Atlanta, Georgia 30334 | Phone (404) 656-2180
deficiencies in internal control, described in the accompanying Schedule of Findings and Questioned
Costs in findings FS 2024-001, FS 2024-002, and FS 2024-003 that we consider to be significant
deficiencies.
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the School District’s financial statements are
free from material misstatement, we performed tests of its compliance with certain provisions of laws,
regulations, contracts, and grant agreements, noncompliance with which could have a direct and
material effect on the financial statements. However, providing an opinion on compliance with those
provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The
results of our tests disclosed no instances of noncompliance or other matters that are required to be
reported under Government Auditing Standards.
School District’s Response to Findings
Government Auditing Standards requires the auditor to perform limited procedures on the School
District's response to the findings identified in our audit and described in the accompanying Schedule
of Findings and Questioned Costs. The School District's response was not subjected to the other
auditing procedures applied in the audit of the financial statements and, accordingly, we express no
opinion on the response.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the
School District’s internal control or on compliance. This report is an integral part of an audit performed
in accordance with Government Auditing Standards in considering the School District’s internal
control and compliance. Accordingly, this communication is not suitable for any other purpose.
Respectfully submitted,
Greg S. Griffin
State Auditor
June 5, 2025
Greg S. Griffin
State Auditor
INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND ON INTERNAL
CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE
The Honorable Brian P. Kemp, Governor of Georgia
Members of the General Assembly of the State of Georgia
Members of the State Board of Education
and
Dr. Devon Horton, Superintendent and Members of the
DeKalb County Board of Education
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited the DeKalb County Board of Education’s (School District) compliance with the types of
compliance requirements identified as subject to audit in the OMB Compliance Supplement that could
have a direct and material effect on each of the School District’s major federal programs for the year
ended June 30, 2024. The School District’s major federal programs are identified in the Summary of
Auditor's Results section of the accompanying Schedule of Findings and Questioned Costs.
In our opinion, the School District complied, in all material respects, with the compliance requirements
referred to above that could have a direct and material effect on each of its major federal programs for
the year ended June 30, 2024.
Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the
United States of America (GAAS); the standards applicable to financial audits contained in Government
Auditing Standards issued by the Comptroller General of the United States; and the audit requirements
of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under
those standards and the Uniform Guidance are further described in the Auditor's Responsibilities for
the Audit of Compliance section of our report.
We are required to be independent of the School District and to meet our other ethical responsibilities,
in accordance with relevant ethical requirements relating to our audit. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on
compliance for each major federal program. Our audit does not provide a legal determination of the
School District's compliance with the compliance requirements referred to above.
270 Washington Street, SW, Suite 4-101 Atlanta, Georgia 30334 | Phone (404) 656-2180
Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design,
implementation, and maintenance of effective internal control over compliance with the requirements
of laws, statutes, regulations, rules and provisions of contracts or grant agreements applicable to the
School District's federal programs.
Auditor’s Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the
compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion
on the School District's compliance based on our audit. Reasonable assurance is a high level of assurance
but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with
GAAS, Government Auditing Standards, and the Uniform Guidance will always detect material
noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is
higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control. Noncompliance with the compliance requirements
referred to above is considered material, if there is a substantial likelihood that, individually or in the
aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the
School District's compliance with the requirements of each major federal program as a whole.
In performing an audit in accordance with GAAS, Government Auditing Standards, and the Uniform
Guidance, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material noncompliance, whether due to fraud or error, and design
and perform audit procedures responsive to those risks. Such procedures include examining, on a
test basis, evidence regarding the School District's compliance with the compliance requirements
referred to above and performing such other procedures as we considered necessary in the
circumstances.
• Obtain an understanding of the School District's internal control over compliance relevant to the
audit in order to design audit procedures that are appropriate in the circumstances and to test and
report on internal control over compliance in accordance with the Uniform Guidance, but not for the
purpose of expressing an opinion on the effectiveness of the School District's internal control over
compliance. Accordingly, no such opinion is expressed.
We are required to communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal
control over compliance that we identified during the audit.
Report on Internal Control over Compliance
Our consideration of internal control over compliance was for the limited purpose described in the Auditor's
Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies
in internal control over compliance that might be material weaknesses or significant deficiencies in internal
control over compliance and therefore, material weaknesses or significant deficiencies may exist that were
not identified. However, as discussed below, we did identify a certain deficiency in internal control over
compliance that we consider to be a significant deficiency.
A deficiency in internal control over compliance exists when the design or operation of a control over
compliance does not allow management or employees, in the normal course of performing their
assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance
requirement of a federal program on a timely basis. A material weakness in internal control over
compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such
that there is a reasonable possibility that material noncompliance with a type of compliance
requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A
significant deficiency in internal control over compliance is a deficiency, or a combination of
deficiencies, in internal control over compliance with a type of compliance requirement of a federal
program that is less severe than a material weakness in internal control over compliance, yet important
enough to merit attention by those charged with governance. We consider the deficiency in internal
control over compliance described in the accompanying Schedule of Findings and Questioned Costs in
finding FA 2024-001 to be a significant deficiency.
Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal
control over compliance. Accordingly, no such opinion is expressed.
Government Auditing Standards requires the auditor to perform limited procedures on the School
District’s response to the internal control over compliance finding identified in our audit and described
in the accompanying Schedule of Findings and Questioned Costs. The School District’s response was
not subjected to the other auditing procedures applied in the audit of compliance and, accordingly, we
express no opinion on the response.
The purpose of this report on internal control over compliance is solely to describe the scope of our
testing of internal control over compliance and the results of that testing based on the requirements of
the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.
Respectfully submitted,
Greg S. Griffin
State Auditor
June 5, 2025
Section III
Auditee’s Response to Prior Year Findings and Questioned Costs
DEKALB COUNTY BOARD OF EDUCATION
AUDITEE’S RESPONSE
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
YEAR ENDED JUNE 30, 2024
PRIOR YEAR FINANCIAL STATEMENT FINDINGS
FS 2023-001 Timely Financial Reporting and Maintenance of the General Ledger
Finding Status: Previously Reported Corrective Action Implemented
FS 2023-002 Cash and Interfund Balances
Repeat of Prior Year Finding: FS 2022-003
Finding Status: Previously Reported Corrective Action Implemented
FS 2023-003 Receivable and Related Balances
Repeat of Prior Year Finding: FS 2022-003
Finding Status: Previously Reported Corrective Action Implemented
PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
FA 2023-004 Allowable Costs
Federal Awarding Agency: U.S. Department of Agriculture
Pass-Through Entity: Georgia Department of Education
Finding Status: Unresolved
The District is developing corrective actions to strengthen Child Nutrition Cluster Department
internal controls, policies, and procedures and ensure adherence through improved monitoring.
Through collaboration, the Finance Division and the School Nutrition Department will review
payroll data reports and ensure periodic certifications for all employees are completed timely.
FA 2023-005 Equipment & Real Property Management
Federal Awarding Agency: U.S. Federal Communications Commission
Pass-Through Entity: Direct
Finding Status: Previously Reported Corrective Action Implemented
Section IV
Findings and Questioned Costs
DEKALB COUNTY BOARD OF EDUCATION
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2024
I SUMMARY OF AUDITOR'S RESULTS
Financial Statements
Type of auditor's report issued:
Governmental Activities and Each Major Fund Unmodified
Internal control over financial reporting:
Material weakness(es) identified? No
Significant deficiency(ies) identified? Yes
Noncompliance material to financial statements noted: No
Federal Awards
Internal control over major programs:
Material weakness(es) identified? No
Significant deficiency(ies) identified? Yes
Type of auditor's report issued on compliance for major programs:
All major programs Unmodified
Any audit findings disclosed that are required to be reported in
accordance with 2 CFR 200.516(a)? Yes
Identification of major programs:
Assistance Listing Number Assistance Listing Program or Cluster Title
10.553, 10.555 Child Nutrition Cluster
84.027, 84.173 Special Education Cluster
84.365 English Language Acquisition Grants
84.424 Student Support and Academic Enrichment
84.425 Education Stabilization Fund
Dollar threshold used to distinguish between Type A and Type B programs: $3,000,000.00
Auditee qualified as low-risk auditee? No
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DEKALB COUNTY BOARD OF EDUCATION
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2024
II FINANCIAL STATEMENT FINDINGS
FS 2024-001 Strengthen Oversight of the Information System Conversion
Internal Control Impact: Significant Deficiency
Description:
The DeKalb County Board of Education (School District) should strengthen oversight of its information
system conversion from its legacy human resources/payroll (HR/payroll) and financial system to its
new financial system.
Background Information:
The School District’s management began a conversion project in September 2019 to replace its legacy
and HR/payroll systems with one new financial system.
Criteria:
Best practices include forming an implementation team with an overall project manager that has the
knowledge and responsibility to implement a conversion project from start to finish. In addition, a
clear detailed implementation plan with sound business goals should be put in place at the beginning of
the conversion project. The detailed conversion plan should include a cutoff date. The cutoff date is set
to provide an end date to running the legacy systems and gives the implementation team a goal to
analyze the new system and make a determination to move forward with the new financial system and
sunset the legacy systems or roll back to the legacy systems.
Condition:
Five years after the conversion project began, the School District continued to operate its legacy system
while running its new financial system. Continued delays in finalizing the legacy financial and
HR/payroll systems conversion to the new financial system increases the cost and complexity of
operations and creates ongoing risks to data integrity and a potential for significant financial
misclassification and/or omissions, the exposures of which are outlined below:
• Redundant license fees for two financial accounting applications.
• Increased infrastructure, IT personnel, and external consultants’ costs of maintaining both
legacy and new financial systems.
• Increased IT staff workload.
• Lack of consistent data transfer completeness and accuracy verification checks such as record
counts and/or amounts.
• Manual data transfers from legacy system to the new financial system which do not provide
assurance of consistent operation.
• Loss of employee detail results during data transfers between legacy accounting and the new
financial system due to format inconsistencies between the two applications.
• Risk of duplicate transactions being entered into both the legacy system and the new financial
system as some material account balances are being entered into both systems.
• Greater risk of accountants making errors due to the increased complexity of accounting tasks.
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DEKALB COUNTY BOARD OF EDUCATION
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2024
Cause:
The legacy application was officially sunset as of June 12, 2024; however, adequate project management
was not always in place which contributed to all conditions. During some implementation phases, the
School District lacked sufficient communication between management, project staff, IT staff, HR staff
and accounting staff to consider the impacts of extending the use of the legacy system while operating
the new financial system simultaneously. Furthermore, detailed project plans were not always in place
to facilitate timely course correction when the new financial system implementation target dates were
missed.
Effect:
Without effective controls over a single accounting system, the School District increases its risk of not
detecting errors or omissions in its accounting and HR/payroll data. Failure to move to a single
accounting system in a timely manner increases the risk that waste in resources and funds could occur,
resulting in unnecessary costs to the School District. Also, operating multiple systems for the same
types of transactions increases the burden on the School District’s personnel workload potentially
leading to employee turnover.
Recommendation:
We recommend the School District continue to monitor the implementation of its corrective action to
ensure it remains effective in addressing the underlying issue. While the corrective measures have been
implemented, the legacy application remained in operation for the majority of the fiscal year under
review. As such, the finding is repeated to reflect the timing of implementation finalization. Ongoing
oversight will help ensure the issue does not recur in future periods.
Views of Responsible Officials:
We concur with this finding.
FS 2024-002 Strengthen Information Technology General Controls
Internal Control Impact: Significant Deficiency
Description:
The DeKalb County Board of Education (School District) should strengthen logical access controls over
its financial and human resource/payroll (HR/payroll) systems.
Background Information:
The School District relies extensively on its financial system to manage initiation, authorization,
recording and processing of financial transactions. Controls over these systems are essential for
protecting the integrity, availability and confidentiality of financial and HR/payroll data. The School
District’s management began a conversion project in September 2019 to replace its legacy financial and
HR/payroll systems with a new financial system.
Criteria:
The School District is responsible for the effective operation of financial systems and related control
activities. This includes information technology general controls (ITGCs) which are designed to ensure
the integrity, availability and confidentiality of the financial information. It also includes the
implementation of policies and procedures that support the effective operation of the ITGCs.
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DEKALB COUNTY BOARD OF EDUCATION
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2024
Condition:
We noted the School District did not have adequate general controls in operation to protect the
integrity, availability and confidentiality of information maintained in significant financial applications.
In accordance with the Official Code of Georgia (O.C.G.A.) §50-6-9(B), due to the sensitive nature of the
deficiencies noted, we have communicated the findings to management and to those charged with
governance; however, we have elected not to issue the specific findings to the public.
Cause:
Management stated that mitigation of some prior year legacy accounting logical access observations
would occur upon full transition to the new financial system; however, implementation delays have
continued for five years due to the legacy system’s limitations.
Effect:
The conditions noted do not promote availability, confidentiality, and integrity of information assets
and the ability to achieve business objectives.
Recommendation:
The School District should strengthen information technology general controls, including complete
development of IT policies and procedures. Strengthening logical access controls will assist in ensuring
the integrity of information which is utilized by management for decision making and financial
reporting.
Full transition to the School District’s accounting system, combined with sunsetting the legacy
accounting application, will strengthen the overall control environment due to elimination of existing
legacy accounting control issues.
Views of Responsible Officials:
We concur with this finding.
FS 2024-003 Strengthen Controls over Employee Compensation
Internal Control Impact: Significant Deficiency
Compliance Impact: None
Description:
The School District’s policies and procedures were insufficient to provide adequate internal controls
over the employee compensation process.
Criteria:
The School District’s management is responsible for maintaining internal controls that provide
reasonable assurance that transactions are processed according to established procedures.
-4-
DEKALB COUNTY BOARD OF EDUCATION
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2024
Condition:
Our review of 53 employees’ salaries revealed multiple deficiencies:
• Documentation supporting additional pay totaling $53,605.42 was missing for 10 employees.
• Four employees received compensation in excess of their contracted amounts, resulting in total
overpayments of $7,472.54.
• One employee was underpaid $3,897.00 compared to their contract.
In addition, our review of a sample of payroll expenditures totaling $3,650,500.30 identified known
questioned costs of $57,180.96 due to a lack of adequate supporting documentation. Based on the total
employee compensation expenditure population of $832,671,552.59 (excluding benefit payments), the
projected likely questioned costs to be $13,042,858.47.
Cause:
These deficiencies were attributed to insufficient managerial oversight within the Human Resources
and Payroll Departments and the failure to maintain adequate supporting documentation for
compensation paid.
Effect:
The lack of adequate controls over the employee compensation process may result in misstatements
which may not be detected and corrected by management.
Recommendation:
The School District should conduct a comprehensive review of its compensation-related controls and
procedures, identify specific areas of weaknesses, and implement enhanced controls to ensure all
compensation is properly authorized, accurately calculated, and adequately documented.
Views of Responsible Officials:
We concur with this finding.
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DEKALB COUNTY BOARD OF EDUCATION
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2024
lll FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
FA 2024-001 Improve Controls over Employee Compensation
Compliance Requirement: Allowable Costs/Cost Principles
Internal Control Impact: Significant Deficiency
Compliance Impact: Nonmaterial Noncompliance
Federal Awarding Agency: U.S. Department of Agriculture
Pass-Through Entity: Georgia Department of Education
AL Numbers and Title: 10.553 – School Breakfast Program
10.555 – National School Lunch Program
COVID-19 – 10.555 – National School Lunch
Program
Federal Award Number: 245GA324N1199 (Year: 2024) 225GA324N1099 (Year: 2024)
Questioned Costs: $102,234
Repeat of Prior Year Finding: 2023-004
Description:
The policies and procedures of the School District were insufficient to provide adequate internal
controls over the employee compensation process as it relates to the Child Nutrition Cluster.
Background Information:
The Child Nutrition Cluster (CNC) is comprised of various programs that are intended to assist states in
administering and overseeing food service program operators that provide healthful, nutritious meals
to eligible children in public and non-profit private schools, residential childcare institutions, and
summer programs. This Cluster of programs also fosters healthy eating habits in children by providing
fresh fruits and fresh vegetables to children attending elementary and secondary schools and
encourages the domestic consumption of nutritious agricultural commodities.
CNC funding was granted to the Georgia Department of Education (GaDOE) by the U.S. Department of
Agriculture. GaDOE is responsible for distributing funds to local educational agencies (LEAs) and
overseeing the various CNC programs. CNC funds totaling $58,647,091.23 were expended and reported
on the DeKalb County Board of Education’s Schedule of Expenditures of Federal Awards (SEFA) for
fiscal year 2024.
Criteria:
As a recipient of federal awards, the School District is required to establish and maintain effective
internal control over federal awards that provides reasonable assurance of managing the federal awards
in compliance with federal statutes, regulations, and the terms and conditions of the federal awards
pursuant to Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance),
Section 200.303 – Internal Controls.
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DEKALB COUNTY BOARD OF EDUCATION
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2024
Provisions included in the Uniform Guidance, Section 200.403 – Factors Affecting Allowability of Costs
state that “costs must meet the following general criteria in order to be allowable under Federal awards:
(a) Be necessary and reasonable for the performance of the Federal award and be allocable thereto
under these principles, (b) Conform to any limitations or exclusions set forth in these principles or in
the Federal award as to types or amount of cost items, (c) Be consistent with policies and procedures
that apply uniformly to both federally-financed and other activities of the non-Federal entity… (g) Be
adequately documented…”
Furthermore, provisions included in the Uniform Guidance, Section 200.430 – Compensation-Personal
Services prescribe standards for documentation of personnel expenses and state, in part, that “(a) …
Costs for compensation are allowable to the extent that they satisfy… specific requirements…, and that
the total compensation for individual employees: (1) is reasonable for the services rendered and
conforms to the established written policy of the non-Federal entity consistently applied to both Federal
and non-Federal activities; (2) Follows an appointment made in accordance with a non-Federal entity’s
laws and/or rules or written policies and meets the requirements of Federal statute, where applicable;
and (3) Is determined and supported as provided in paragraph (i)…, [as follows:] (i) Charges to Federal
awards for salaries and wages must be based on records that accurately reflect the work
performed. These records must: (i) Be supported by a system of internal control which provides
reasonable assurance that the charges are accurate, allowable, and properly allocated; (ii) Be
incorporated into the official records of the non-Federal entity…”
Condition:
A sample of 60 employees was randomly selected for testing using a non-statistical sampling approach.
These employees were reviewed to determine if internal controls were properly functioning, and
applicable compliance requirements were met. The following deficiencies were noted:
• One employee who no longer worked for the School District received salary payments
totaling $8,715.
• Two employees did not have any of the required certifications, or comparable documentation, to
support their salary payments totaling $48,837.
• One employee was missing required certifications, or comparable documentation, to support a
portion of their salary payments totaling $8,128.
• One employee’s salary in the amount of $2,671 was incorrectly charged to the federal program
for one pay period.
• Documentation of additional pay totaling $33,883 could not be located for 14 employees.
Questioned Costs:
Upon testing a sample of $1,399,390 in personnel services expenditures, known questioned costs
of $102,234 were identified for payroll charges not supported by adequate documentation. Using the
total personnel services expenditure population of $18,999,516 (excluding benefits payments), we
project the likely questioned costs to be approximately $1,388,035. The following Assistance Listing
Numbers were affected by known and likely questioned costs: 10.553 and 10.555.
Cause:
A lack of oversight by personnel in the Office of Federal Grants and Program Compliance led to
noncompliance with the requirements of the Uniform Guidance in relation to charging of personnel
costs to a federal program.
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DEKALB COUNTY BOARD OF EDUCATION
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2024
Effect:
The School District is not in compliance with the Uniform Guidance and GaDOE guidance. Failure to
pay employees with CNC funds the appropriate amount and/or maintain documentation supporting
those payments could result in the expenditure of funds for unallowable purposes. This may also expose
the School District to unnecessary financial strains and shortages within the CNC funds as ED or
GaDOE may require the School District to return funds associated with improperly documented
expenditures.
Recommendation:
The School District should evaluate their internal control process related to the approval and retention
of documentation to support employee compensation payments. Where vulnerable, the School District
should develop and/or modify its policies and procedures to ensure that CNC employees are paid
appropriately. Furthermore, management should develop and implement a monitoring process to
ensure that these procedures are functioning properly.
Views of Responsible Officials:
We concur with this finding.
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Section V
Management’s Corrective Action