ANNUAL FINANCIAL REPORT • FISCAL YEAR 2025
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 8
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
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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 52
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
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Section I
Financial
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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. Norman Sauce, 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, 2025, 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, 2025, 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.
Emphasis of Matter
As described in Note 2 to the financial statements, in 2025, the School District adopted new accounting
guidance, Governmental Accounting Standards Board (GASB) Statement No. 101, Compensated
Absences. The School District restated beginning balances for the effect of GASB Statement No. 101.
Our opinions are not modified with respect to this matter.
270 Washington Street, SW, Suite 4-101 Atlanta, Georgia 30334 | Phone (404) 656-2180
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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.
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.
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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 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
March 27, 2026 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
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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
March 27, 2026
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DEKALB COUNTY BOARD OF EDUCATION
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
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, 2025. 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 2025 are as follows:
On the full accrual, government-wide financial statements:
GASB Statement No. 101, Compensated Absences, was implemented in fiscal year 2025 and
replaced GASB Statement No. 16. This is considered a change in accounting principle that
affects the School District’s reporting of its compensated absences liability. This change in
accounting principle required a beginning balance restatement for the fiscal year 2025. Ending
balances for fiscal year 2024 presented inside the Management’s Discussion and Analysis
section do not show the accounting impact on these restated balances. Additional information
may be found in Note 2, Summary of Significant Accounting Policies and Procedures and
Note 14, Restatement of Prior Year Net Position.
Net position decreased by $72.3 million compared to the prior year. Net position represents
the difference between the Board’s total assets and deferred outflows of resources (including
capital assets, net of depreciation) and its total liabilities and deferred inflows of resources.
This change reflects revenues exceeding program expenditures, growth in capital assets,
reductions in claims and judgments, and favorable adjustments to the net pension liability.
These gains were partially offset by a prior-year restatement resulting from the implementation
of GASB Statement No. 101, Compensated Absences.
Long-term liabilities were restated to reflect the implementation of GASB Statement No. 101,
Compensated Absences, resulting in an increase of $113.2 million. During the fiscal year,
claims and judgments decreased by $22.50 million due to payments made by the Board, while
compensated absences increased by $17.3 million. The net effect was an overall decrease
of $5.17 million in long-term liabilities.
i
DEKALB COUNTY BOARD OF EDUCATION
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
The Board incurred $1.86 billion in expenses related to governmental activities, of which
only $859.06 million was offset by program-specific charges for services, grants, and
contributions. However, general revenues—primarily property and sales taxes—totaled $1.19
billion and were sufficient to cover these program deficits.
General revenues, as reported on the Statement of Activities, totaled $1.19 billion,
representing approximately 58.05% of all revenues. Program-specific revenues—comprising
charges for services, grants, and contributions—accounted for the remaining portion.
On the modified accrual, fund financial statements:
Among major funds, the general fund reported $1.87 billion in revenues and $1.85 billion in
expenditures, including $54.99 million in transfers to the capital projects fund to support local
capital initiatives. The general fund experienced a decrease in fund balance of $42.34 million,
compared to an increase of $75.05 million in the prior year.
The capital projects fund reported $188.15 million in revenues, $54.99 million in transfers
from the general fund, and $236.88 million in expenditures. As a result, the fund balance
increased by $7.33 million, compared to an increase of $77.72 million in the prior year.
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 2025?" 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.
ii
DEKALB COUNTY BOARD OF EDUCATION
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
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.
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 and capital projects fund.
Governmental Funds: 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, 2025
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 2025 compared to fiscal year 2024.
Table 1
Net Position
Governmental Activities
Fiscal Year Fiscal Year
2025 2024 (1)
Assets
Current and Other Assets $ 1,404,309,796 $ 1,424,624,462
Capital Assets, Net 1,886,932,588 1,712,181,457
Total Assets 3,291,242,384 3,136,805,919
Deferred Outflows of Resources
Related to Defined Benefit Pension Plans 395,249,846 453,639,352
Related to OPEB Plan 129,541,596 155,253,177
Total Deferred Outflows of Resources 524,791,442 608,892,529
Liabilities
Current Liabilities 314,848,917 308,862,627
Net Pension Liability 1,176,355,884 1,366,335,574
Net OPEB Liability 625,555,150 612,766,195
Other Long-Term Liabilities 148,997,315 35,830,744
Total Liabilities 2,265,757,266 2,323,795,140
Deferred Inflows of Resources
Unearned Revenue
Related to Defined Benefit Pension Plans 219,455,859 85,459,268
Related to OPEB Plan 245,856,546 323,738,283
Total Deferred Inflows of Resources 465,312,405 409,197,551
Net Position
Net Investment in Capital Assets 1,833,655,242 1,652,342,359
Restricted 624,687,886 623,116,566
Unrestricted (Deficit) (1,373,378,973) (1,262,753,168)
Total Net Position $ 1,084,964,155 $ 1,012,705,757
(1) Fiscal year balances do not reflect the effect of the restatement of balances.
See Note 14 in the Notes to the Basic Financial Statements for additional information.
iv
DEKALB COUNTY BOARD OF EDUCATION
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
Table 2 shows the Changes in Net Position for fiscal year ending 2025 compared to 2024.
Table 2
Change in Net Position
Governmental Activities
Fiscal Year Fiscal Year
2025 2024 (1)
Revenues
Program Revenues:
Charges for Services $ 4,475,209 $ 4,118,922
Operating Grants and Contributions 833,942,221 835,765,262
Capital Grants and Contributions 20,644,107 9,608,932
Total Program Revenues 859,061,537 849,493,116
General Revenues:
Property Taxes - Maintenance and Operations 948,623,009 885,143,938
Sales Tax - Special Purpose Local Option Tax for Capital Projects 154,532,044 150,986,248
Other Sales Tax 10,950,182 12,936,930
Investment Earnings 54,184,634 53,205,606
Miscellaneous 20,595,681 25,500,403
Total General Revenues 1,188,885,550 1,127,773,125
Total Revenues 2,047,947,087 1,977,266,241
Program Expenses:
Instruction 1,064,072,857 1,050,730,487
Support Services:
Pupil Services 134,010,326 125,599,598
Improvement of Instructional Services 60,757,017 58,682,182
Educational Media Services 24,507,098 18,835,835
General Administration 59,202,167 34,072,053
School Administration 69,245,760 86,817,094
Business Administration 23,832,747 18,581,206
Maintenance and Operation of Plant 208,440,501 175,981,899
Student Transportation Services 91,994,041 84,482,752
Central Support Services 52,392,448 42,384,267
Other Support Services 481,259 1,818,126
Operations of Non-Instructional Services
Enterprise Operations 4,803,658 6,443,490
Food Services 63,613,724 65,322,225
Interest on Long-Term Debt - 20,152
Total Expenses 1,857,353,603 1,769,771,366
Change in Net Position 190,593,484 207,494,875
Beginning Net Position, as Previously Reported 1,012,705,757 805,210,882
Change in Accounting Principle - GASB Statement No. 101 (118,335,086) -
Beginning Net Position, as Restated 894,370,671 805,210,882
Ending Net Position $ 1,084,964,155 $ 1,012,705,757
(1) Fiscal year 2024 balances do not reflect the effect of the restatement balances.
See Note 14 to the Basic Financial Statements for additional information.
v
DEKALB COUNTY BOARD OF EDUCATION
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
Governmental Activities
Instruction, pupil services and improvement of instructional services comprised the majority of
governmental program expenses with 67.78%. Additional needed support services such as student
transportation, maintenance, and administration comprise 28.54% of program expenses, while non-
instructional services comprise the remaining 3.68%. 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 2025 compared to fiscal year 2024. That is, it identifies the cost of these services that are
supported by tax and other general revenues.
Table 3
Governmental Activities
Net Cost of Services
Fiscal Year Fiscal Year
2025 2024 (1)
Instruction $ 488,970,356 $ 489,848,977
Support Services:
Pupil Services 86,204,531 77,307,721
Improvement of Instructional Services 18,301,355 19,275,366
Educational Media Services 7,999,154 3,206,183
General Administration 41,090,422 12,750,691
School Administration 35,484,786 51,766,219
Business Administration 23,354,767 17,750,139
Maintenance and Operation of Plant 164,483,744 130,093,664
Student Transportation Services 76,635,071 68,069,811
Central Support Services 50,842,096 39,468,845
Other Support Services 11,598 1,330,310
Operations of Non-Instructional Services:
Enterprise Operations 4,803,507 6,442,889
Community Service (10,734) (1,312)
Food Services 121,414 2,948,594
Interest on Long-Term Debt - 20,153
Total Expenses $ 998,292,067 $ 920,278,250
(1) Fiscal year balances do not reflect the effect of the restatement of balances.
See Note 14 in the Notes to the Basic Financial Statements for additional information.
Program revenues, primarily derived from state and federal funding, make up only 41.95% of total
revenue. To cover the revenue shortfall needed to fund vital services, the Board is dependent upon
tax and other general 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 $1.19 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, 2025
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 division and location-based
budgets.
The final general fund budget showed anticipated revenues of $1.85 billion and expenditures of $1.90
billion. Actual revenues exceeded budgeted estimates, while actual expenditures were below budgeted
levels. During fiscal year 2025, the Board intentionally budgeted a $73.00 million deficit to the general
fund’s fund balance. Favorable revenue collections and disciplined expenditure controls reduced the
actual decline in fund balance to $42.34 million. While this approach is not sustainable long term, it
is important to note that the deficit includes a one-time transfer of $54.99 million from the general
fund to support local capital projects within the district.
Capital Assets and Long-Term Liabilities
Capital Assets
At the end of fiscal year 2025, the Board had $1.89 billion invested in capital assets, net of
accumulated depreciation and amortization, all in governmental activities. Table 4 shows fiscal
year 2025 balances compared with fiscal year 2024 balances.
Table 4
Capital Assets
(Net of Depreciation and Amortization)
Governmental Activities
Fiscal Year Fiscal Year
2025 2024
Land $ 71,783,468 $ 71,178,768
Construction in Progress 275,091,383 127,984,445
Buildings and Improvement 1,422,579,115 1,399,105,343
Equipment 77,070,435 71,329,134
Land Improvements 37,629,004 39,477,622
Intangible Assets 2,779,183 3,106,145
Total $ 1,886,932,588 $ 1,712,181,457
Long-Term Liabilities
At the close of fiscal year 2025, long-term liabilities totaled $149.00 million, a decrease from the
restated prior-year balance of $154.17 million, resulting in a slight reduction in the Board’s overall
financial position. During the year, the Board satisfied all remaining claims and judgments, leaving
compensated absences as the sole long-term liability. The Board’s continued commitment to reducing
debt reinforces its strategic priority of ensuring that future resources are directed toward educational
programs and student services rather than debt obligations.
vii
DEKALB COUNTY BOARD OF EDUCATION
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
Table 5 summarizes long-term liabilities outstanding and compares fiscal year 2025 balances to fiscal
year 2024 balances.
Table 5
Debt at June 30
Governmental Activities
Fiscal Year Fiscal Year
2025 2024 (1)
Claims and Judgements $ - $ 22,500,000.00
Compensated Absences 148,997,315.00 13,330,744.00
Total $ 148,997,315.00 $ 35,830,744.00
(1) Fiscal Year 2024 balances do not reflect the effect of the restatement balances.
See Note 14 in the Notes to the Basic Financial Statements for additional information.
Current Issues
On the modified accrual basis, the fund financial statements reflect a 4.58% increase in total revenues
from all sources between fiscal years 2024 and 2025. Local revenues derived from property taxes
increased by 6.98%, attributable to property reassessments and new construction activity. State
revenues rose by 8.89%, primarily due to reimbursements for elevated health insurance costs and the
higher employer contribution rate to the Teachers Retirement System of Georgia (TRS), which was paid
by the Board.
Investment income remained robust for the second consecutive year, driven by favorable returns from
Georgia Fund 1, a local government investment pool administered by the Office of the State Treasurer.
Conversely, federal revenues declined by 7.30% as funding from the Coronavirus Aid, Relief, and
Economic Security (CARES) Act and the American Rescue Plan (ARP) was substantially expended and
closed out early in fiscal year 2025.
Although state revenues, primarily generated through the Quality Basic Education formula—increased
by $50.11 million, this growth has not kept pace with rising inflation, escalating health care and
retirement costs, and other expenditures necessary to address students’ holistic needs. Additional
funding from property taxes helped the Board offset operational shortfalls. However, a continuing trend
across fiscal years 2024 and 2025 shows an increasing reliance on property taxes and non-state
funding sources.
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.
The DeKalb County Board of Education operates within an urban environment and competes with
surrounding school systems as well as the private labor market for talent. The Board remains
committed to maintaining aggressively competitive compensation for teachers and support staff, with
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DEKALB COUNTY BOARD OF EDUCATION
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
a strategic focus on attracting, retaining, and developing personnel. These efforts have yielded
measurable results: staff turnover has declined for two consecutive fiscal years, and the Board has
experienced its lowest vacancy rates in years among certified teachers, transportation personnel, and
other classified positions. Although personnel turnover has slowed, enhanced salary and benefits for
employees—along with other financial pressures—have significantly increased the annual budget. As a
result, the cost of educating students has reached an all-time high.
Factors Bearing on the Board’s District’s Future
Looking ahead, federal revenues are expected to stabilize and may experience modest growth as
funding is received from the Environmental Protection Agency (EPA) to support the purchase of electric
school buses and related infrastructure. State funding through the Quality Basic Education (QBE)
formula is projected to increase gradually, primarily covering mandated salary adjustments, changes
in retirement rates and health insurance cost increases. However, these allocations are unlikely to
include cost-of-living adjustments sufficient to address the rising expenses associated with public
education.
The local housing market and overall tax digest are not anticipated to grow at the pace observed in
recent years. In fact, mounting pressure and increased legislative efforts to limit property tax rate
increases are expected to result in slower growth in property tax revenues.
While overall revenue growth is projected to slow, the need to maintain competitive educator
compensation remains a priority. The Board must remain agile and responsive to changes in the local
labor market while consistently meeting employee needs.
Health insurance costs continue to escalate, with the Georgia Department of Community Health
already announcing planned increases for certified and classified staff coverage under the State
Health Benefit Plan. Additionally, inflation is expected to persist, driving up costs associated with
constructing and maintaining facilities.
The DeKalb County Board of Education recognizes these future fiscal constraints and continues to
pursue alternative strategies to manage rising costs effectively. Proactive financial planning measures
have been implemented to safeguard organizational stability and long-term success. Deliberate efforts
have focused on protecting and strengthening fund balance reserves, which will provide critical
support for local capital improvements, facility maintenance, investments in personnel, and serve as
a financial buffer against significant revenue declines or unforeseen expenditures.
These actions underscore the Board’s unwavering commitment to fiscal responsibility and its
dedication to sustaining educational excellence for the community.
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
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DeKalb County Board of Education
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DEKALB COUNTY BOARD OF EDUCATION EXHIBIT "A"
STATEMENT OF NET POSITION
JUNE 30, 2025
GOVERNMENTAL
ACTIVITIES
ASSETS
Cash and Cash Equivalents $ 1,219,090,863.80
Accounts Receivable, Net
Taxes 44,285,808.15
State Government 100,443,773.41
Federal Government 36,210,453.24
Local 3,142.79
Other 1,730,744.34
Inventories 2,545,010.56
Capital Assets, Non-Depreciable 346,874,851.46
Capital Assets, Depreciable (Net of Accumulated Depreciation/Amortization) 1,540,057,736.37
Total Assets 3,291,242,384.12
DEFERRED OUTFLOWS OF RESOURCES
Related to Defined Benefit Pension Plans 395,249,846.38
Related to OPEB Plan 129,541,595.94
Total Deferred Outflows of Resources 524,791,442.32
LIABILITIES
Accounts Payable 25,637,060.01
Salaries and Benefits Payable 176,523,628.04
Payroll Withholdings Payable 44,431,857.01
Claims Incurred but not Reported (IBNR) 14,979,027.00
Contracts Payable 44,901,030.20
Retainages Payable 8,376,315.55
Net Pension Liability 1,176,355,884.00
Net OPEB Liability 625,555,150.00
Long-Term Liabilities
Due Within One Year 42,852,899.53
Due in More Than One Year 106,144,415.57
Total Liabilities 2,265,757,266.91
DEFERRED INFLOWS OF RESOURCES
Related to Defined Benefit Pension Plans 219,455,859.00
Related to OPEB Plan 245,856,546.00
Total Deferred Inflows of Resources 465,312,405.00
NET POSITION
Net Investment in Capital Assets 1,833,655,242.08
Restricted for
Continuation of Federal Programs 27,648,269.57
Capital Projects 597,039,616.13
Unrestricted (Deficit) (1,373,378,973.25)
Total Net Position $ 1,084,964,154.53
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, 2025
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 $ 1,064,072,856.74 $ 2,500,698.84 $ 555,879,127.85 $ 16,722,674.29 $ (488,970,355.76)
Support Services
Pupil Services 134,010,325.73 - 47,711,167.72 94,627.29 (86,204,530.72)
Improvement of Instructional Services 60,757,017.21 - 42,315,093.82 140,568.83 (18,301,354.56)
Educational Media Services 24,507,098.01 - 16,464,389.26 43,554.70 (7,999,154.05)
General Administration 59,202,166.84 - 18,110,538.54 1,206.24 (41,090,422.06)
School Administration 69,245,760.14 - 33,759,679.47 1,294.53 (35,484,786.14)
Business Administration 23,832,747.06 - 477,252.04 727.74 (23,354,767.28)
Maintenance and Operation of Plant 208,440,501.49 772.00 40,922,037.63 3,033,947.67 (164,483,744.19)
Student Transportation Services 91,994,040.59 1,331,654.49 13,650,935.04 376,380.00 (76,635,071.06)
Central Support Services 52,392,448.51 - 1,409,221.60 141,131.45 (50,842,095.46)
Other Support Services 481,258.96 - 469,660.52 - (11,598.44)
Operations of Non-Instructional Services
Enterprise Operations 4,803,658.25 - 151.75 - (4,803,506.50)
Community Services - 10,734.00 - - 10,734.00
Food Services 63,613,723.87 631,349.55 62,772,965.70 87,994.25 (121,414.37)
Total Governmental Activities $ 1,857,353,603.40 $ 4,475,208.88 $ 833,942,220.94 $ 20,644,106.99 (998,292,066.59)
General Revenues
Taxes
Property Taxes
For Maintenance and Operations 948,623,008.87
Sales Taxes
Special Purpose Local Option Sales Tax
For Capital Projects 154,532,043.78
Other Sales Tax 10,950,182.48
Investment Earnings 54,184,634.15
Miscellaneous 20,595,681.10
Total General Revenues 1,188,885,550.38
Change in Net Position 190,593,483.79
Net Position - Beginning of Year, as Previously Reported 1,012,705,756.91
Change in Accounting Principle - GASB Statement No. 101 (118,335,086.17)
Net Position - Beginning of Year, as Restated 894,370,670.74
Net Position - End of Year $ 1,084,964,154.53
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, 2025
CAPITAL
GENERAL PROJECTS
FUND FUND TOTAL
ASSETS
Cash and Cash Equivalents $ 585,830,696.16 $ 633,260,167.64 $ 1,219,090,863.80
Accounts Receivable, Net
Taxes 31,563,126.67 12,722,681.48 44,285,808.15
State Government 84,915,375.91 15,528,397.50 100,443,773.41
Federal Government 36,210,453.24 - 36,210,453.24
Local 3,142.79 - 3,142.79
Other 1,730,744.34 - 1,730,744.34
Inventories 2,545,010.56 - 2,545,010.56
Total Assets $ 742,798,549.67 $ 661,511,246.62 $ 1,404,309,796.29
LIABILITIES
Accounts Payable $ 22,237,454.76 $ 3,399,605.25 $ 25,637,060.01
Salaries and Benefits Payable 176,523,628.04 - 176,523,628.04
Payroll Withholdings Payable 44,431,857.01 - 44,431,857.01
Contracts Payable - 44,901,030.20 44,901,030.20
Retainages Payable - 8,376,315.55 8,376,315.55
Total Liabilities 243,192,939.81 56,676,951.00 299,869,890.81
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue - Property Taxes 20,445,699.20 - 20,445,699.20
Unavailable Revenue - Georgia State Financing and Investment Commission - 15,528,397.50 15,528,397.50
Unavailable Revenue - Federal Funds 722,003.56 - 722,003.56
Total Deferred Inflows of Resources 21,167,702.76 15,528,397.50 36,696,100.26
FUND BALANCES
Nonspendable 2,545,010.56 - 2,545,010.56
Restricted 26,573,156.22 553,393,922.54 579,967,078.76
Assigned 13,468,916.72 35,911,975.58 49,380,892.30
Unassigned 435,850,823.60 - 435,850,823.60
Total Fund Balances 478,437,907.10 589,305,898.12 1,067,743,805.22
Total Liabilities, Deferred Inflows
of Resources, and Fund Balances $ 742,798,549.67 $ 661,511,246.62 $ 1,404,309,796.29
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, 2025
Total fund balances - governmental funds (Exhibit "C") $ 1,067,743,805.22
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 $ 71,783,467.96
Construction in progress 275,091,383.50
Buildings and improvements 2,168,689,410.82
Equipment 185,617,180.77
Land improvements 59,985,764.17
Intangible assets 6,079,639.78
Accumulated depreciation and amortization (880,314,259.17) 1,886,932,587.83
Some liabilities are not due and payable in the current period and,
therefore, are not reported in the funds.
Net pension liability $ (1,176,355,884.00)
Net OPEB liability (625,555,150.00) (1,801,911,034.00)
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 $ 175,793,987.38
Related to OPEB (116,314,950.06) 59,479,037.32
Taxes that are not available to pay for current period expenditures are
deferred in the funds. 20,445,699.20
Georgia State Financing and Investment Commission grants that are not
available to pay current period expenditures are deferred in the funds. 15,528,397.50
Revenue that are not available to pay current period expenditures are
deferred in the funds. 722,003.56
Long-term liabilities are not due and payable in the current period and
therefore are not reported in the funds.
Compensated absences payable $ (148,997,315.10)
Claims incurred but not reported (IBNR) (14,979,027.00) (163,976,342.10)
Net position of governmental activities (Exhibit "A") $ 1,084,964,154.53
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, 2025
CAPITAL
GENERAL PROJECTS
FUND FUND TOTAL
REVENUES
Property Taxes $ 944,403,043.55 $ - $ 944,403,043.55
Sales Taxes 10,950,182.48 154,532,043.78 165,482,226.26
State Funds 609,233,732.79 4,554,541.49 613,788,274.28
Federal Funds 250,382,468.52 184,788.00 250,567,256.52
Charges for Services 4,475,208.88 - 4,475,208.88
Investment Earnings 25,458,701.53 28,725,932.62 54,184,634.15
Miscellaneous 20,440,411.10 155,270.00 20,595,681.10
Total Revenues 1,865,343,748.85 188,152,575.89 2,053,496,324.74
EXPENDITURES
Current
Instruction 1,045,475,705.06 19,262,461.34 1,064,738,166.40
Support Services
Pupil Services 136,064,064.72 - 136,064,064.72
Improvement of Instructional Services 58,716,436.42 13,207,465.89 71,923,902.31
Educational Media Services 24,633,309.68 - 24,633,309.68
General Administration 59,402,627.13 - 59,402,627.13
School Administration 93,039,607.57 - 93,039,607.57
Business Administration 23,956,165.47 - 23,956,165.47
Maintenance and Operation of Plant 199,946,680.34 1,801,397.58 201,748,077.92
Student Transportation Services 88,304,764.36 2,638,990.88 90,943,755.24
Central Support Services 51,462,179.68 5,249,606.74 56,711,786.42
Other Support Services 487,199.87 - 487,199.87
Enterprise Operations 4,821,774.71 - 4,821,774.71
Food Services Operation 64,337,906.01 - 64,337,906.01
Capital Outlay 2,190,520.32 194,715,993.74 196,906,514.06
Total Expenditures 1,852,838,941.34 236,875,916.17 2,089,714,857.51
Revenues over (under) Expenditures 12,504,807.51 (48,723,340.28) (36,218,532.77)
OTHER FINANCING SOURCES (USES)
Sale of Capital Assets 139,370.06 1,062,862.00 1,202,232.06
Transfers In - 54,986,030.83 54,986,030.83
Transfers Out (54,986,030.83) - (54,986,030.83)
Total Other Financing Sources (Uses) (54,846,660.77) 56,048,892.83 1,202,232.06
Net Change in Fund Balances (42,341,853.26) 7,325,552.55 (35,016,300.71)
Fund Balances - Beginning 520,779,760.36 581,980,345.57 1,102,760,105.93
Fund Balances - Ending $ 478,437,907.10 $ 589,305,898.12 $ 1,067,743,805.22
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, 2025
Net change in fund balances total governmental funds (Exhibit "E") $ (35,016,300.71)
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 $ 234,492,521.28
Depreciation/Amortization (57,871,233.32) 176,621,287.96
The net effect of various miscellaneous transactions involving capital assets
(i.e., sales, trade-ins, donations, and disposals) is to decrease net position. (1,870,157.34)
Taxes reported in the Statement of Activities that do not provide current
financial resources are not reported as revenues in the funds. 20,445,699.20
Taxes deferred in the funds in the prior year but recognized as revenue
in the current year. (16,225,733.88)
Federal revenue reported in the Statement of Activities that do not provide current
financial resources are not reported as revenues in the funds. 722,003.56
Federal revenue deferred in the funds in the prior year but recognized as revenue
in the current year. (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 revenues in the funds. 15,528,397.50
Georgia State Financing and Investment Commission grants deferred in the
funds in the prior year but recognized as revenue in the current year. (8,058,865.50)
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 $ (2,406,406.72)
OPEB expense 39,381,200.67 36,974,793.95
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.
Claims and judgments $ 22,500,000.00
Claims incurred but not reported (IBNR) (181,488.00)
Compensated absences (17,331,484.78) 4,987,027.22
Change in net position of governmental activities (Exhibit "B") $ 190,593,483.79
The notes to the basic financial statements are an integral part of this statement. -6-
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DEKALB COUNTY BOARD OF EDUCATION EXHIBIT "G"
NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
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 contracts and retainages
payable related to those 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.
-8-
DEKALB COUNTY BOARD OF EDUCATION EXHIBIT "G"
NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
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.
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.
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
-9-
DEKALB COUNTY BOARD OF EDUCATION EXHIBIT "G"
NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
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 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 2025, the School District adopted Governmental Accounting Standards Board (GASB)
Statement No. 101, Compensated Absences, which supersedes prior requirements under GASB
Statement No. 16. The objective of this statement is to better meet the information needs of financial
statement users by updating the recognition and measurement guidance for compensated absences.
This is achieved by aligning the recognition and measurement guidance under a unified model and by
amending certain previously required disclosures. Under the new standard, a liability is recognized
when an employee earns leave that carries forward to a future reporting period and is more likely than
not to be used, paid out or otherwise settled. The implementation required the School District to
reevaluate and revise its recognition and measurement of compensated absences, including applying
the “more likely than not” threshold to determine expected usage and payout. This approach is expected
to provide a more accurate and complete estimate of the School District’s compensated absences
liability. The adoption of this statement had a material impact and has been reported as a restatement
of beginning net position. This statement will be applied retrospectively.
In fiscal year 2025, the School District adopted Governmental Accounting Standards Board (GASB)
Statement No. 102, Certain Risk Disclosures. The objective of this statement is to provide financial
statement users with essential information about risks related to a government’s vulnerabilities due to
certain concentrations or constraints. 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.
- 10 -
DEKALB COUNTY BOARD OF EDUCATION EXHIBIT "G"
NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
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.
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.
- 11 -
DEKALB COUNTY BOARD OF EDUCATION EXHIBIT "G"
NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
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
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 leave benefits, such as vacation and other forms of paid
leave, that employees earned based on services already rendered. Compensated absences are recognized
as a liability when the leave accumulates, is attributable to past service, and it is more likely than not
that the leave will be used for time off or otherwise paid or settled.
The majority of the School District’s compensated absences liability is comprised of vacation and sick
leave.
Vacation leave of 10 to 20 days is awarded on a fiscal year basis 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 fiscal 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.
- 12 -
DEKALB COUNTY BOARD OF EDUCATION EXHIBIT "G"
NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
Sick leave is earned at a rate of 1.25 days per month for eligible employees. Unused sick leave may be
accumulated up to a maximum of 190 days. The School District does not provide for payout of used sick
leave upon resignation or retirement; accordingly, the liability represents the portion of accumulated
sick leave that is more likely than not to be used by employees during active employment. Members of
the Teachers Retirement System of Georgia (TRS) may apply unused sick leave toward retirement
service credit. This benefit is administered and funded by TRS; therefore, the related liability is not
reported by the School District.
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.
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.
- 13 -
DEKALB COUNTY BOARD OF EDUCATION EXHIBIT "G"
NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
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 2024 tax digest year
(calendar year) on July 23, 2024 (levy date) based on property values as of January 1, 2024. Taxes were
due on November 15, 2024 (lien date) and could be paid in two installments on September 30, 2024
and November 15, 2024 (due dates). Taxes collected within the current fiscal year or within 60 days
after year-end on the 2024 tax digest are reported as revenue in the governmental funds for fiscal
year 2025. 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, 2025, for maintenance and operations amounted to $908,374,674.27.
The tax millage rate levied for the 2024 tax digest year (calendar year) for the School District was as
follows (a mill equals $1 per thousand dollars of assessed value):
School Operations 22.88 mills
Additionally, Title Ad Valorem Tax revenues, at the fund reporting level, amounted to $36,028,369.28
during fiscal year ended June 30, 2025.
Sales Taxes
Education Special Purpose Local Option Sales Tax (ESPLOST), at the fund reporting level, during the
year amounted to $154,532,043.78 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 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 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.
- 14 -
DEKALB COUNTY BOARD OF EDUCATION EXHIBIT "G"
NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
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. Any position or expenditure not previously approved in the annual
budget that exceeds $100,000.00 shall require Board approval unless the Superintendent deems the
position or purchase an emergency. In such case, the expenditure shall be reported to the Board at its
regularly scheduled meeting. 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,
- 15 -
DEKALB COUNTY BOARD OF EDUCATION EXHIBIT "G"
NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
(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, 2025, the School District had deposits with a carrying amount of $164,961,173.86, and a bank
balance of $180,344,747.53. The bank balances insured by Federal depository insurance
were $500,000.00.
At June 30, 2025, $179,844,747.53 of the School District’s bank balances was 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 $ 1,219,090,863.80
Less:
Cash on hand 12,055.00
Investment pools reported as cash and cash equivalents
Georgia Fund 1 1,054,117,634.94
Total carrying value of deposits - June 30, 2025 $ 164,961,173.86
- 16 -
DEKALB COUNTY BOARD OF EDUCATION EXHIBIT "G"
NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
Categorization of Cash Equivalents
The School District reported cash equivalents of $1,054,117,634.94 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, 2025 was 51 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, 2024 Increases Decreases Transfers June 30, 2025
Governmental Activities
Capital Assets,
Not Being Depreciated:
Land $ 71,178,767.96 $ 2,337,500.00 $ 1,732,800.00 $ - $ 71,783,467.96
Construction in Progress 127,984,444.74 208,517,471.41 - (61,410,532.65) 275,091,383.50
Total Capital Assets
Not Being Depreciated 199,163,212.70 210,854,971.41 1,732,800.00 (61,410,532.65) 346,874,851.46
Capital Assets,
Being Depreciated/Amortized:
Buildings and Improvements 2,103,732,939.87 4,163,987.30 137,359.00 60,929,842.65 2,168,689,410.82
Equipment 170,447,106.78 19,473,562.57 4,303,488.58 - 185,617,180.77
Land Improvements 59,505,074.17 - - 480,690.00 59,985,764.17
Intangible Assets 6,079,639.78 - - - 6,079,639.78
Less Accumulated
Depreciation/Amortization:
Buildings and Improvements 704,627,596.71 41,620,058.45 137,359.00 - 746,110,296.16
Equipment 99,117,972.43 13,594,904.27 4,166,131.24 - 108,546,745.46
Land Improvements 20,027,452.37 2,329,307.95 - - 22,356,760.32
Intangible Assets 2,973,494.58 326,962.65 - - 3,300,457.23
Total Capital Assets,
Being Depreciated/Amortized, Net 1,513,018,244.51 (34,233,683.45) 137,357.34 61,410,532.65 1,540,057,736.37
Governmental Activities
Capital Assets - Net $ 1,712,181,457.21 $ 176,621,287.96 $ 1,870,157.34 $ - $ 1,886,932,587.83
- 17 -
DEKALB COUNTY BOARD OF EDUCATION EXHIBIT "G"
NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
Current year depreciation and amortization expense by function is as follows:
Instruction $ 40,448,946.17
Support Services
Pupil Services $ 497,201.16
Improvements of Instructional Services 738,592.21
Educational Media Services 228,849.84
General Administration 6,337.95
School Administration 6,801.80
Business Administration 3,823.75
Maintenance and Operation of Plant 10,117,339.90
Student Transportation Services 4,946,405.81
Central Support Services 414,585.72 16,959,938.14
Food Services 462,349.01
$ 57,871,233.32
NOTE 6: INTERFUND TRANSFERS
Interfund transfers for the year ended June 30, 2025, consisted of the following:
Transfers From
Transfers to General Fund
Capital Projects Fund $ 54,986,030.83
Transfers are used to move property tax revenues collected by the general fund to capital projects fund
as required match or supplemental funding source for capital construction projects.
NOTE 7: LONG-TERM LIABILITIES
The changes in long-term liabilities during the fiscal year for governmental activities were as follows:
Governmental Activities
Balance
July 1, 2024 Balance Due Within
Restated Additions Deductions June 30, 2025 One Year
Claims and Judgments $ 22,500,000.00 $ - $ 22,500,000.00 $ - $ -
Compensated Absences (1) 131,665,830.32 17,331,484.78 - 148,997,315.10 42,852,899.53
$ 154,165,830.32 $ 17,331,484.78 $ 22,500,000.00 $ 148,997,315.10 $ 42,852,899.53
(1) Net changes in the compensated absences liability are reported as increases or decreases accordingly.
Compensated Absences
Compensated absences represent obligations of the School District relating to leave benefits earned by
employees based upon service already rendered. This obligation relates only to vested and accumulated
leave in which it is more likely than not that payment will be made or the leave will be used, and the
- 18 -
DEKALB COUNTY BOARD OF EDUCATION EXHIBIT "G"
NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
amount can be reasonably estimated as of the measurement date. 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.
For fiscal year 2025, the School District began recording the accumulated compensated absences
liability at June 30 in the government-wide financial statements due to the implementation of a new
accounting standard. This is a change in accounting principle.
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
2024 $ 13,930,007.00 $ 10,745,147.00 $ 9,877,615.00 $ 14,797,539.00
2025 $ 14,797,539.00 $ 9,363,069.00 $ 9,181,581.00 $ 14,979,027.00
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.
- 19 -
DEKALB COUNTY BOARD OF EDUCATION EXHIBIT "G"
NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
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
2024 $ - $ 23,972.04 $ 23,972.04 $ -
2025 $ - $ 8,913.26 $ 8,913.26 $ -
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, 2025:
Nonspendable
Inventories $ 2,545,010.56
Restricted
Continuation of Federal Programs $ 26,573,156.22
Capital Projects 553,393,922.54 579,967,078.76
Assigned
After School Program $ 3,917,263.00
Local Capital Outlay Projects 35,911,975.58
School Activity Accounts 5,750,005.12
Other (Donations) 3,801,648.60 49,380,892.30
Unassigned 435,850,823.60
Fund Balance, June 30, 2025 $ 1,067,743,805.22
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.
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 expenditures, not to exceed 15% of
the total budget of the subsequent fiscal year, in compliance with O.C.G.A. § 20-2-167(a)5. 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.
- 20 -
DEKALB COUNTY BOARD OF EDUCATION EXHIBIT "G"
NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
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, 2025, together with funding available:
Unearned Payments Funding
Executed through Available
Project GSFIC Project No. Contracts (1) June 30, 2025 (2) From State (1)
Cross Keys High School Addition and Modernization 24-644-001 $ 137,122,353.04 $ 16,759,448.71 $ 8,756,692.20
New Sequoyah Middle and High School 219,740,776.64 22,986,504.94 -
New Dresden Elementary School 54,860,538.82 21,568,235.18 -
Nancy Creek Facility Major Building System Replacement 22-644-003 3,640,729.98 9,550,213.17 722,368.80
Champion Middle School Major Building System Replacement 12,996,775.16 12,234,258.84 -
DeKalb High School Tech South Major Building System Replacement 977,972.20 11,223,579.80 -
Redan Middle School HVAC, Roof and Sprinkler Installation 1,158,765.72 4,640,744.38 -
Salem Middle School 1,787,601.07 8,448,112.18 -
Toney Elementary School 3,725,792.55 4,158,101.45 -
Livsey Elementary School 22-644-012 4,262,429.78 3,640,208.22 438,638.40
Parking Additions 3,769,187.33 2,055,437.67 -
Idlewood HVAC Replacement and Renovation 34,669,022.00 1,142,488.00 -
Murphy Candler HVAC Replacement and Renovation 33,939,865.00 779,448.00 -
Ashford Park Elementary HVAC Replacement 24,163,008.52 844,500.68 -
International Student Center HVAC Replacement 22,912,113.65 4,355,925.87 -
Clarkston High School Capital Improvements 25-644-001 1,422,451.69 906,298.31 744,004.80
Allgood Elementary School Major System and Building Renovation 1,000,000.00 300,000.00 -
HVAC Controls Upgrade 11,421,326.00 2,957,730.00 -
Columbia Elementary School Roof and HVAC Replacement 1,108,383.02 4,604,030.98 -
Briarlake Elementary School HVAC Replacement 1,817,903.14 5,866,959.86 -
Montclair Elementary School HVAC Replacement 1,369,835.15 5,948,962.85 -
Health Center Portables 3,872,572.50 33,725.00 -
Hatton Drive Student Center Renovation 1,382,213.58 1,670,828.42 -
$ 583,121,616.54 $ 146,675,742.51 $ 10,661,704.20
(1) The amounts described are not reflected in the basic financial statements.
(2) Payments include contracts and retainages payable at year-end.
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.
- 21 -
DEKALB COUNTY BOARD OF EDUCATION EXHIBIT "G"
NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
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 $25,172,405.94 for the
year ended June 30, 2025. Active employees are not required to contribute to the School OPEB Fund.
During fiscal year 2025, the State of Georgia, through the State Health Benefit Plan (SHBP)
administered by the Department of Community Health, made an on-behalf contribution in the amount
of $14,709,020.06 for the School District’s employees.
OPEB Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred
Inflows of Resources Related to OPEB
At June 30, 2025, the School District reported a liability of $625,555,150.00 for its proportionate share
of the net OPEB liability. The net OPEB liability was measured as of June 30, 2024. The total OPEB
liability used to calculate the net OPEB liability was based on an actuarial valuation as of June 30, 2023.
An expected total OPEB liability as of June 30, 2024 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, 2024. At June 30, 2024, the School
District’s proportion was 5.489089%, which was a decrease of 0.105206% from its proportion
measured as of June 30, 2023.
- 22 -
DEKALB COUNTY BOARD OF EDUCATION EXHIBIT "G"
NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
For the year ended June 30, 2025, the School District recognized OPEB expense of ($14,208,795.00).
At June 30, 2025, 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 $ 30,676,146.00 $ 112,952,583.00
Changes of assumptions 72,942,450.00 61,922,174.00
Net difference between projected and actual
earnings on OPEB plan investments - 4,072,207.00
Changes in proportion and differences
between School District contributions and
proportionate share of contributions 750,594.00 66,909,582.00
School District contributions subsequent to
the measurement date 25,172,405.94 -
Total $ 129,541,595.94 $ 245,856,546.00
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, 2026.
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
2026 $ (47,606,722.00)
2027 $ (54,757,528.00)
2028 $ (32,054,156.00)
2029 $ (6,138,257.00)
2030 $ (858,774.00)
Thereafter $ (71,919.00)
- 23 -
DEKALB COUNTY BOARD OF EDUCATION EXHIBIT "G"
NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
Actuarial Assumptions: The total OPEB liability as of June 30, 2024 was determined by an
actuarial valuation as of June 30, 2023 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, 2024:
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 6.75%
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 Projection scale 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 Projection scale applied generationally.
- 24 -
DEKALB COUNTY BOARD OF EDUCATION EXHIBIT "G"
NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
The actuarial assumptions used in the June 30, 2023 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 which was 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, 2023 valuation were based on a review of
recent plan experience done concurrently with the June 30, 2023 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% 2.60%
Equities 70.00% 9.10%
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 3.98% was used as the discount rate, as compared with last year’s rate
of 3.68%. 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 (3.93% 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 2123.
- 25 -
DEKALB COUNTY BOARD OF EDUCATION EXHIBIT "G"
NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
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 3.98%, 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 (2.98%) or 1 percentage‐point higher (4.98%) than the current discount
rate:
1% Decrease Current Discount Rate 1% Increase
(2.98%) (3.98%) (4.98%)
School District's proportionate share
of the Net OPEB liability $ 707,734,251.00 $ 625,555,150.00 $ 556,252,277.00
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
1% Decrease Cost Trend Rate 1% Increase
School District's proportionate share
of the Net OPEB liability $ 540,515,355.00 $ 625,555,150.00 $ 730,059,264.00
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, 2025
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 2025. The School District’s contractually required contribution rate
for the year ended June 30, 2025 was 20.78% of annual School District payroll, of which 20.75% 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 $170,681,666.67 and $262,189.20
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, 2025
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, 2025 was 29.20% 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 $163,726.71 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 $16.50, 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 $1,677,199.00.
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred
Inflows of Resources Related to Pensions
At June 30, 2025, the School District reported a liability of $1,176,355,884.00 for its proportionate
share of the net pension liability for TRS ($1,175,619,605.00) and ERS ($736,279.00).
- 28 -
DEKALB COUNTY BOARD OF EDUCATION EXHIBIT "G"
NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
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 $ 1,175,619,605.00
State of Georgia's proportionate share of the net pension liability
associated with the School District 1,939,387.00
Total $ 1,177,558,992.00
The net pension liability for TRS and ERS was measured as of June 30, 2024. The total pension liability
used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2023. An
expected total pension liability as of June 30, 2024 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, 2024.
At June 30, 2024, the School District’s TRS proportion was 4.677294%, which was an increase
of 0.053675% from its proportion measured as of June 30, 2023. At June 30, 2024, the School
District’s ERS proportion was 0.016355%, which was a decrease of 0.004509% from its proportion
measured as of June 30, 2023.
At June 30, 2025, 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 $7,910,404.00.
The PSERS net pension liability was measured as of June 30, 2024. The total pension liability used to
calculate the net pension liability was based on an actuarial valuation as of June 30, 2023. An expected
total pension liability as of June 30, 2024 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, 2024.
For the year ended June 30, 2025, the School District recognized pension expense of $173,912,938.00
for TRS, ($240,075.00) for ERS and $1,829,613.00 for PSERS and revenue of $372,725.00 for TRS
and $1,829,613.00 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, 2025
At June 30, 2025, 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 $ 133,029,538.00 $ 3,513,677.00 $ 39,465.00 $ -
Changes of assumptions 81,782,158.00 - - -
Net difference between projected and
actual earnings on pension plan investments - 163,906,741.00 - 82,927.00
Changes in proportion and differences
between School District contributions and
proportionate share of contributions 9,553,292.00 51,796,466.00 - 156,048.00
School District contributions subsequent to
the measurement date 170,681,666.67 - 163,726.71 -
Total $ 395,046,654.67 $ 219,216,884.00 $ 203,191.71 $ 238,975.00
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, 2026. 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
2026 $ (2,077,169.00) $ (147,849.00)
2027 $ 134,954,170.00 $ 31,097.00
2028 $ (74,901,209.00) $ (50,466.00)
2029 $ (52,827,688.00) $ (32,292.00)
- 30 -
DEKALB COUNTY BOARD OF EDUCATION EXHIBIT "G"
NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
Actuarial Assumptions: The total pension liability as of June 30, 2024 was determined by an
actuarial valuation as of June 30, 2023, 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, 2023 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, 2025
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, 2023 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, 2023 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, 2025
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% 1.50%
Domestic large stocks 46.40% 9.10%
Domestic small stocks 1.10% 13.00%
International developed market stocks 13.60% 9.10%
International emerging market stocks 3.90% 11.10%
Alternative 5.00% 10.60%
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, 2025
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:
Teachers Retirement System: 1% Decrease Current Discount Rate 1% Increase
(5.90%) (6.90%) (7.90%)
School District's proportionate share
of the net pension liability $ 2,023,476,665.00 $ 1,175,619,605.00 $ 483,508,719.00
Employees' Retirement System: 1% Decrease Current Discount Rate 1% Increase
(6.00%) (7.00%) (8.00%)
School District's proportionate share
of the net pension liability $ 1,109,294.00 $ 736,279.00 $ 422,575.00
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 School District 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
2025 8% $ 5,290,153.28
2024 8% $ 5,214,912.75
2023 8% $ 4,680,792.76
- 34 -
DEKALB COUNTY BOARD OF EDUCATION EXHIBIT "G"
NOTES TO THE BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 14: RESTATEMENT OF PRIOR YEAR NET POSITION
During fiscal year 2025, the School District implemented the provisions of GASB Statement No. 101,
Compensated Absences, which represent a change in accounting principle. As a result, the School
District now recognizes a liability for certain types of accumulated leave that are more likely than not to
be used for time off or otherwise paid or settled.
The change was applied retrospectively, resulting in a restatement of beginning net position for
governmental activities as of July 1, 2024. The effect of this restatement was a decrease in beginning net
position and an increase in the compensated absences liability of $118,335,086.17:
Net Position, July 1, 2024, as previously reported $ 1,012,705,756.91
Implementation of GASB 101 (118,335,086.17)
Net Position, July 1, 2024, as restated $ 894,370,670.74
NOTE 15: 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, 2025, DeKalb County abated property taxes due to the School District
that were levied on July 23, 2024 and due on November 15, 2024 totaling $17,494,018.89. There were
no individual tax abatement agreements that exceeded 10 percent of the total amount abated.
- 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
District's Plan fiduciary
proportion State of Georgia's School District's net position as
For the of the proportionate share proportionate a percentage
Year Net Pension School District's of the NPL share of the NPL as of the total
Ended Liability proportionate share associated with the School District's a percentage of its pension
June 30 (NPL) of the NPL School District Total covered payroll covered payroll liability
2025 4.677294% $ 1,175,619,605.00 $ 1,939,387.00 $ 1,177,558,992.00 $ 730,190,913.33 161.00% 80.86%
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%
- 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
2025 $ 170,681,666.67 $ 170,681,666.67 $ - $ 822,457,066.16 20.75%
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%
- 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
2025 0.016355% $ 736,279.00 $ 486,263.93 151.42% 78.75%
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%
- 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
2025 $ 163,726.71 $ 163,726.71 $ - $ 571,142.04 28.67%
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%
- 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
2025 0.00% $ - $ 7,910,404.00 $ 7,910,404.00 $ 66,769,158.56 N/A 90.02%
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%
This schedule is intended to show information for 10 years. Additional years will be displayed as they become available. - 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
State of Georgia's proportionate net position
School 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
2025 5.489089% $ 625,555,150.00 $ - $ 625,555,150.00 $ 731,704,132.57 85.49% 6.88%
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 $ 654,779,255.99 103.01% 6.14%
2021 6.223462% $ 914,081,630.00 $ - $ 914,081,630.00 $ 649,698,559.00 140.69% 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
2025 $ 25,172,405.94 $ 25,172,405.94 $ - $ 737,024,003.52 3.42%
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, 2025
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, 2025
School OPEB Fund
Changes of benefit terms: There have been no changes in benefit terms.
Changes in assumptions: June 30, 2023 valuation: Medicare health care trend rates were updated.
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, to 3.68% as of June 30, 2023, and to 3.98% as of June 30, 2024.
- 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, 2025
NONAPPROPRIATED BUDGETS ACTUAL VARIANCE
ORIGINAL (1) FINAL (1) AMOUNTS OVER/UNDER
REVENUES
Property Taxes $ 956,268,398.00 $ 956,268,398.00 $ 944,403,043.55 $ (11,865,354.45)
Sales Taxes 6,500,000.00 6,500,000.00 10,950,182.48 4,450,182.48
State Funds 569,564,418.87 574,324,899.12 609,233,732.79 34,908,833.67
Federal Funds 128,180,156.46 211,254,144.81 250,382,468.52 39,128,323.71
Charges for Services 69,792,224.08 69,792,224.08 4,475,208.88 (65,317,015.20)
Investment Earnings 15,000,000.00 15,000,000.00 25,458,701.53 10,458,701.53
Miscellaneous 15,493,872.06 15,120,920.28 20,440,411.10 5,319,490.82
Total Revenues 1,760,799,069.47 1,848,260,586.29 1,865,343,748.85 17,083,162.56
EXPENDITURES
Current
Instruction 918,219,999.24 917,554,166.35 1,045,475,705.06 (127,921,538.71)
Support Services
Pupil Services 118,643,983.32 157,638,817.72 136,064,064.72 21,574,753.00
Improvement of Instructional Services 90,084,227.48 83,150,191.02 58,716,436.42 24,433,754.60
Educational Media Services 16,395,038.61 24,494,118.01 24,633,309.68 (139,191.67)
General Administration 66,979,854.58 86,223,860.31 59,402,627.13 26,821,233.18
School Administration 71,981,680.68 87,046,569.25 93,039,607.57 (5,993,038.32)
Business Administration 21,725,626.97 23,521,887.96 23,956,165.47 (434,277.51)
Maintenance and Operation of Plant 261,641,608.46 245,363,943.64 199,946,680.34 45,417,263.30
Student Transportation Services 96,910,449.48 122,328,122.78 88,304,764.36 34,023,358.42
Central Support Services 44,560,870.92 56,991,022.45 51,462,179.68 5,528,842.77
Other Support Services 1,493,493.95 799,268.71 487,199.87 312,068.84
Enterprise Operation 5,856,100.00 4,697,100.00 4,821,774.71 (124,674.71)
Food Services Operation 84,901,166.73 89,911,891.96 64,337,906.01 25,573,985.95
Capital Outlay - 41,765.06 2,190,520.32 (2,148,755.26)
Total Expenditures 1,799,394,100.42 1,899,762,725.22 1,852,838,941.34 46,923,783.88
Excess of Revenues over (under) Expenditures (38,595,030.95) (51,502,138.93) 12,504,807.51 64,006,946.44
OTHER FINANCING SOURCES (USES)
Other Sources 7,487,943.00 10,264,092.21 139,370.06 (10,124,722.15)
Other Uses (27,487,943.00) (31,764,092.21) (54,986,030.83) (23,221,938.62)
Total Other Financing Sources (Uses) (20,000,000.00) (21,500,000.00) (54,846,660.77) (33,346,660.77)
Net Change in Fund Balances (58,595,030.95) (73,002,138.93) (42,341,853.26) 30,660,285.67
Fund Balances - Beginning 559,580,039.57 559,580,039.57 520,779,760.36 (38,800,279.21)
Fund Balances - Ending $ 500,985,008.62 $ 486,577,900.64 $ 478,437,907.10 $ (8,139,993.54)
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 $11,581,573.18 and $11,328,340.57, 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, 2025
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 255GA324N1199 $ 14,292,103.58
National School Lunch Program 10.555 255GA324N1199 45,759,131.23
Total Child Nutrition Cluster 60,051,234.81
Education, U.S. Department of
Education Stabilization Fund
Pass-Through From Georgia Department of Education
COVID-19 - American Rescue Plan Elementary and Secondary School
Emergency Relief Fund 84.425U S425U210012 79,539,365.10
COVID-19 - American Rescue Plan Elementary and Secondary School
Emergency Relief Fund - Homeless Children and Youth 84.425W S425W210011 85,279.06
Total Education Stabilization Fund 79,624,644.16
Special Education Cluster
Pass-Through From Georgia Department of Education
Special Education
Grants to States 84.027A H027A230073 20,978,621.22
Grants to States 84.027A H027A240073 4,534,342.33
Preschool Grants 84.173A H173A230081 261,355.16
Preschool Grants 84.173A H173A240081 81,859.17
Total Special Education Cluster 25,856,177.88
Other Programs
Direct
Graduate Ready to Attain Success in Postsecondary Program 84.116 454,302.14
School Based Mental Health Program 84.184H 650,352.89
Teacher Quality Partnership Grant 84.336S 56,766.94
Pass-Through From Georgia Department of Education
Career and Technical Education - Basic Grants to States 84.048A V048A240010 1,097,021.88
Education for Homeless Children and Youth 84.196A S196A230011 77,381.13
Education for Homeless Children and Youth 84.196A S196A240011 54,125.17
English Language Acquisition State Grants 84.365A S365A230010 1,427,062.82
English Language Acquisition State Grants 84.365A T365A240010 1,438,031.54
Migrant Education State Grant Program 84.011A S011A230011 222.55
Migrant Education State Grant Program 84.011A S011A240011 12,261.45
Student Support and Academic Enrichment Program 84.424A S424A230011 2,900,708.50
Student Support and Academic Enrichment Program 84.424A S424A240011 1,609,321.25
Student Support and Academic Enrichment Program 84.424H S424H240002 157,300.00
Supporting Effective Instruction State Grants 84.367A S367A230001 4,994,669.35
Title I Grants to Local Educational Agencies 84.010A S010A230010 47,572,650.50
Title I Grants to Local Educational Agencies 84.010A S010A240010 18,106,953.21
Pass-Through From Technical College System of Georgia
Adult Education - Basic Grants to States 84.002A V002A240010 416,928.44
Total Other Programs 81,026,059.76
Total U.S. Department of Education 186,506,881.80
- 47 -
DEKALB COUNTY BOARD OF EDUCATION SCHEDULE "10"
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2025
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 93.327 195,128.55
Treasury, U.S. Department of the
Pass-Through From Georgia Department of Education
COVID-19 - Coronavirus State and Local Fiscal Recovery Funds 21.027 SLT-1189 15,324.56
Defense, U.S. Department of
Direct
Department of the Air Force
R.O.T.C. Program 12. UNKNOWN 591,804.75
Department of the Army
R.O.T.C. Program 12. UNKNOWN 121,272.23
Department of the Navy
R.O.T.C. Program 12. UNKNOWN 1,237,474.26
Total U.S. Department of Defense 1,950,551.24
Total Expenditures of Federal Awards $ 248,719,120.96
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, 2025. 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, 2025
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 $ 16,838,015.54 $ - $ 16,838,015.54
Summer Transition Program 105,200.08 - 105,200.08
Education, Georgia Department of
Quality Basic Education
Direct Instructional Cost
Kindergarten Program 45,048,896.00 - 45,048,896.00
Kindergarten Program - Early Intervention Program 2,624,047.00 - 2,624,047.00
Primary Grades (1-3) Program 104,634,182.00 - 104,634,182.00
Primary Grades - Early Intervention (1-3) Program 9,323,582.00 - 9,323,582.00
Upper Elementary Grades (4-5) Program 49,433,418.00 - 49,433,418.00
Upper Elementary Grades - Early Intervention (4-5) Program 5,908,237.00 - 5,908,237.00
Middle School (6-8) Program 84,762,598.00 - 84,762,598.00
High School General Education (9-12) Program 84,216,582.00 - 84,216,582.00
Vocational Laboratory (9-12) Program 20,607,491.00 - 20,607,491.00
Students with Disabilities 113,227,535.00 - 113,227,535.00
Gifted Student - Category VI 42,453,447.00 - 42,453,447.00
Remedial Education Program 5,151,679.00 - 5,151,679.00
Alternative Education Program 6,383,235.00 - 6,383,235.00
English Speakers of Other Languages (ESOL) 55,466,928.00 - 55,466,928.00
Media Center Program 15,858,559.00 - 15,858,559.00
20 Days Additional Instruction 4,691,813.00 - 4,691,813.00
Staff and Professional Development 2,763,194.00 - 2,763,194.00
Principal Staff and Professional Development 50,127.00 - 50,127.00
Indirect Cost
Central Administration 13,321,886.00 - 13,321,886.00
School Administration 31,683,982.00 - 31,683,982.00
Facility Maintenance and Operations 27,866,815.00 - 27,866,815.00
QBE Local Five Mill Reduction (183,115,595.00) - (183,115,595.00)
Charter System Adjustment 789,484.17 - 789,484.17
Categorical Grants
Pupil Transportation
Regular 10,918,228.00 - 10,918,228.00
Bus Replacement 2,819,520.00 - 2,819,520.00
Nursing Services 2,242,395.00 - 2,242,395.00
State Special Charter Supplement 555,943.00 - 555,943.00
Other State Programs
Career, Technical and Agricultural Education (CTAE) 1,026,295.00 - 1,026,295.00
Custodian Supplement 741,000.00 - 741,000.00
Food Services 1,772,268.35 - 1,772,268.35
GNETS State Grant 1,752,674.11 - 1,752,674.11
Georgia Outdoor Learning Demonstration (GOLD) Grant 731.28 - 731.28
GRASP - Graduate Ready to Attain Success in Postsecondary Program 270,000.00 - 270,000.00
Hygiene Products 74,804.93 - 74,804.93
International Baccalaureate Exam Fee Incentive Grant 25,374.00 - 25,374.00
Math and Science Supplements 353,658.10 - 353,658.10
Paraprofessional to Teacher Reimbursement Grant 15,000.00 - 15,000.00
Preschool Disability Services 2,636,396.27 - 2,636,396.27
Pupil Transportation - State Bonds 376,380.00 - 376,380.00
Residential Treatment Centers Grant 493,097.00 - 493,097.00
Rule 10 Special Education State Grant 47,730.70 - 47,730.70
School Security Grant 6,220,368.00 - 6,220,368.00
Teachers Retirement 262,189.20 - 262,189.20
- 49 -
DEKALB COUNTY BOARD OF EDUCATION SCHEDULE "11"
SCHEDULE OF STATE REVENUE
YEAR ENDED JUNE 30, 2025
GOVERNMENTAL FUND TYPES
GENERAL CAPITAL PROJECTS
AGENCY/FUNDING FUND FUND TOTAL
Vocational Supervisors 57,768.00 - 57,768.00
Georgia Department of Behavioral Health and Developmental Disabilities
Sources of Strength 15,000.00 - 15,000.00
Georgia State Financing and Investment Commission
Reimbursement on Construction Projects - 4,554,541.49 4,554,541.49
Community Health, Georgia Department of
Other Post-Employment Benefits (OPEB) 14,709,020.06 - 14,709,020.06
Office of the State Treasurer
Public School Employees Retirement 1,677,199.00 - 1,677,199.00
OTHER
Metro Atlanta Regional Educational Service Agency
Let's Read, Georgia 75,355.00 - 75,355.00
$ 609,233,732.79 $ 4,554,541.49 $ 613,788,274.28
See notes to the basic financial statements. - 50 -
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DEKALB COUNTY BOARD OF EDUCATION SCHEDULE "12"
SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS
YEAR ENDED JUNE 30, 2025
ORIGINAL CURRENT ESTIMATED
ESTIMATED ESTIMATED COMPLETION
COST (1) COSTS (2) DATE
PROJECT
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 2028
(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
HVAC, making athletic field and physical education facility upgrades and
if necessary) e.g., roofing, plumbing, wiring, painting, water piping,
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
- 52 -
DEKALB COUNTY BOARD OF EDUCATION SCHEDULE "12"
SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS
YEAR ENDED JUNE 30, 2025
ORIGINAL CURRENT ESTIMATED
ESTIMATED ESTIMATED COMPLETION
COST (1) COSTS (2) DATE
PROJECT
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
(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 64,121,898.95 Completed
(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 561,000,000.00 622,921,898.95
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 January 2028
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 $ 2,061,476,869.46
See notes to the basic financial statements. - 53 -
DEKALB COUNTY BOARD OF EDUCATION SCHEDULE "12"
SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS
YEAR ENDED JUNE 30, 2025
AMOUNT AMOUNT
EXPENDED EXPENDED TOTAL EXCESS
IN CURRENT IN PRIOR COMPLETION PROCEEDS NOT
YEAR (3) (4) YEARS (3) (4) COST EXPENDED
PROJECT
2012 Sales Tax - Authorized Projects
1. Americans with Disabilities Act (ADA) Improvements $ - $ 15,044,323.50 $ 15,044,323.50 $ -
2. Stadiums - 10,628,646.65 10,628,646.65 -
3. Capital renewal program - 94,202,587.97 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 - 169,796,479.57 169,796,479.57 -
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 - 69,089,766.52 69,089,766.52 -
13. McNair Middle School replacement - 40,742,607.53 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). - 80,271,016.03 80,271,016.03 -
Subtotal 2012 Projects - 624,338,699.92 624,027,803.51 -
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; 849,241.23 10,553,041.53 - -
(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; 22,395,000.55 134,602,207.42 - -
(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
HVAC, making athletic field and physical education facility upgrades and
if necessary) e.g., roofing, plumbing, wiring, painting, water piping,
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
- 54 -
DEKALB COUNTY BOARD OF EDUCATION SCHEDULE "12"
SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS
YEAR ENDED JUNE 30, 2025
AMOUNT AMOUNT
EXPENDED EXPENDED TOTAL EXCESS
IN CURRENT IN PRIOR COMPLETION PROCEEDS NOT
YEAR (3) (4) YEARS (3) (4) COST EXPENDED
PROJECT
DCSD's determination of need priorities at some or all of the DCSD
schools and facilities; 68,913,104.65 114,513,163.40 - -
(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; - 64,121,898.95 64,121,898.95 -
(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 842,287.03 34,598,441.54 - -
(6) And the expenses incidental to accomplishing the DeKalb
projects including, but not limited to, implementation expenses,
management expenses, and legal expenses. 96,000.00 30,558,193.13 - -
Subtotal 2017 Projects 93,095,633.46 388,946,945.97 64,121,898.95 -
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; 7,070,635.07 6,705,509.96 - -
2. Acquiring and developing land for, constructing and equipping,
new and replacement schools and support facilities, as well as
additions to existing facilities; 54,620,745.49 2,731,003.80 - -
3. Installing capital improvements for various existing and new
schools, buildings and facilities; 6,415,932.78 - - -
4. Providing hardware, software, and related infrastructure and
making technology improvements; and 31,627,640.20 2,173,429.08 - -
5. Replacing, purchasing, upgrading school buses, support
vehicles, and other capital equipment. 563,196.00 - - -
Subtotal 2022 Projects 100,298,149.54 11,609,942.84 - -
Total $ 193,393,783.00 $ 1,024,895,588.73 $ 688,149,702.46 $ -
(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. - 55 -
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Section II
Compliance and Internal Control Reports
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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. Norman Sauce, 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, 2025, 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 March 27, 2026. 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. Given these limitations, during our audit we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material
weaknesses or significant deficiencies may exist that were not identified.
270 Washington Street, SW, Suite 4-101 Atlanta, Georgia 30334 | Phone (404) 656-2180
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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.
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
March 27, 2026
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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. Norman Sauce, 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, 2025. 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 types of 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, 2025.
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
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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.
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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 2025-001 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
March 27, 2026
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Section III
Auditee’s Response to Prior Year Findings and Questioned Costs
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DEKALB COUNTY BOARD OF EDUCATION
AUDITEE’S RESPONSE
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
YEAR ENDED JUNE 30, 2025
PRIOR YEAR FINANCIAL STATEMENT FINDINGS
FS 2024-001 Strengthen Oversight of the Information System Conversion
Finding Status: Previously Reported Corrective Action Implemented
FS 2024-002 Strengthen Information Technology General Controls
Finding Status: Previously Reported Corrective Action Implemented
FS 2024-003 Strengthen Controls over Employee Compensation
Finding Status: Previously Reported Corrective Action Implemented
PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
FA 2024-001 Improve Controls over Employee Compensation
Federal Awarding Agency: U.S. Department of Agriculture
Pass-Through Entity: Georgia Department of Education
Finding Status: Unresolved
The School District is developing corrective action to strengthen Child Nutrition Cluster Department
internal controls, policies, and procedures and ensure adherence through improved monitoring.
FA 2023-004 Allowable Costs
Federal Awarding Agency: U.S. Department of Agriculture
Pass-Through Entity: Georgia Department of Education
Finding Status: Partially Resolved
See response to finding number FA 2024-001.
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Section IV
Findings and Questioned Costs
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DEKALB COUNTY BOARD OF EDUCATION
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2025
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? None Reported
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
84.010 Title I Grants to Local Educational Agencies
84.367 Supporting Effective Instruction
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, 2025
II FINANCIAL STATEMENT FINDINGS
No matters were reported.
Ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
FA 2025-001 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
Assistance Listing Number and Title: 10.553 – School Breakfast Program
10.555 – National School Lunch Program
Federal Award Number: 255GA324N1199 (Year: 2025)
Questioned Costs: $7,474
Repeat of Prior Year Finding: FA 2024-001, FA 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 $60,051,234.81 were expended and reported
on the DeKalb County Board of Education’s Schedule of Expenditures of Federal Awards (SEFA) for
fiscal year 2025.
Criteria:
As a recipient of federal awards, the School District is required to establish, document, 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, 2025
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 recipient or subrecipient… (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 recipient or subrecipient consistently applied to both
Federal and non-Federal activities; (2) Follows an appointment made in accordance with a recipient’s
or subrecipient’s laws, rules or written policies and meets the requirements of Federal statute, where
applicable; and (3) Is determined and supported as provided in paragraph (g)…, [as follows:] (g)
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 that provides
reasonable assurance that the charges are accurate, allowable, and properly allocated; (ii) Be
incorporated into the official records of the recipient or subrecipient…”
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 was paid on the incorrect pay scale and thus was overpaid by $4,903.
• Two employees were paid on the incorrect pay scale and thus were underpaid by $1,287.
• Additional pay totaling $967 for 2 employees was incorrectly charged to the federal program.
• Documentation of retrospective pay totaling $317 could not be located for 1 employee.
Questioned Costs:
Upon testing a sample of $1,643,657 in personnel services expenditures, known questioned costs
of $7,474 were identified for payroll charges not supported by adequate documentation. Using the total
personnel services expenditure population of $20,618,901 (excluding benefits payments), we project
the likely questioned costs to be approximately $93,759. 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, 2025
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:
The District acknowledges the audit team’s findings regarding undocumented additional pay and the
isolated instances of overpayment identified during the testing of School Food Nutrition program.
While the District remains committed to absolute fiscal accuracy, we believe the following context is
essential for a complete understanding of the program’s scale and the nature of the identified error.
• Scale of Operations: The District’s School Food Nutrition program is a massive operation,
serving over 90,000 students across 124 separate kitchens. This decentralized environment
requires the management of approximately 900 personnel and a total salary expenditure
of $20,618,901.
• Statistical Significance vs. Actual Error: The audit identified actual errors totaling $7,474. While
the District understands that federal auditing standards (Uniform Guidance) require this
amount to be extrapolated across the entire $20.6M population-resulting in a projected error
exceeding the $25,000 mandatory reporting threshold-it is important to note that the actual
identified discrepancy represents only 0.036% of the program’s personnel budget.
• Accuracy Rate: Even when utilizing the extrapolated figure of $25,000, the District maintains
a 99.64% accuracy rate in payroll processing for this program. We believe this demonstrates a
robust internal control environment, particularly given the complexities of managing 124
distinct points of service.
• Disproportionate Reporting Thresholds: The District notes that the $25,000 reporting threshold
is a fixed statutory limit that does not scale with the size of the Local Educational Agency (LEA).
Consequently, a District of our size is held to a significantly more compressed margin of error
(less than one-eighth of one percent) than a smaller district with fewer employees and sites.
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DEKALB COUNTY BOARD OF EDUCATION
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2025
Auditor’s Concluding Remarks:
While the questioned costs identified by auditors appear to be relatively small in the context of the
School District’s overall School Nutrition expenditures, the amounts exceed the reporting threshold
established by the Uniform Guidance. This threshold is designed to ensure consistent reporting of
noncompliance across entities of all sizes. Given the information reflected above, we reaffirm our
finding and will review the status of the finding during our next audit.
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Section V
Management’s Corrective Action
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Ms. Allyson Gevertz, Board Chair, District 4
Mr. Awet Eyasu, Vice Chair, District 7
Mr. Andrew B. Ziffer, District 1
DeKalb County
School District Ms. Whitney McGinniss, District 2
Mrs. Deirdre P. Pierce, District 3
Dr. Norman C. Sauce III
Tiffany Hogan, Ph.D., District 5
Interim Superintendent of Schools Mr. Diijon DaCosta, Sr., District 6
CORRECTIVE ACTION PLANS - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
FA 2025-001 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
Assistance Listing Number and Title: 10.553- School Breakfast Program
10.555 National School Lunch Program
Federal Award Number: 255GA324N1199 (Year 2025)
Questioned Costs: $7,474
Repeat of Prior Year Finding: FA 2024-001, FA 2023-004
Corrective Action Plans:
Despite the high overall accuracy rate, the District is taking immediate steps to address identified
compensation and documentation issues. We have corrected pay scale deficiencies to ensure employees
receive proper compensation and implemented additional review controls to prevent future errors. We
have also strengthened our account coding procedures to ensure compensation charges are applied to
the appropriate funding sources. Additionally, we have updated our digital time-tracking approval
workflow to require contemporaneous authorization and improve documentation retention for all
supplemental and retrospective compensation.
Estimated Completion Date: March 31, 2026
Contact Person: Byron Schueneman, Chief Financial Officer
Telephone: (678) 676-0133
Email: Byron_Schueneman@dekalbschoolsga.org
Signature: 4
DR. NORman C. Sauce 111
Title: Interim Suporintondent ofSohools
Robert R. Freeman Administrative Complex
1701 Mountain Industrial Blvd. | Stone Mountain, GA 30083
678.676.1200 | dekalbschoolsga.org