DEKALB COUNTY BOARD OF EDUCATION 
DECATUR, GEORGIA REPORT ON AUDIT 
OF THE FINANCIAL STATEMENTS 
FOR THE FISCAL YEAR ENDED JUNE 30, 2008 
STATE OF GEORGIA 
DEPARTMENT OF AUDITS AND ACCOUNTS 
Russell W. Hinton State Auditor 
 
 DEKALB COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - 
 
SECTION I 
 
FINANCIAL 
 
INDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 
 
REQUIRED SUPPLEMENTARY INFORMATION 
 
MANAGEMENT'S DISCUSSION AND ANALYSIS 
 
EXHIBITS 
 
BASIC FINANCIAL STATEMENTS 
 
DISTRICT-WIDE FINANCIAL STATEMENTS 
 
A 
 
STATEMENT OF NET ASSETS 
 
1 
 
B 
 
STATEMENT OF ACTIVITIES 
 
2 
 
FUND FINANCIAL STATEMENTS 
 
C 
 
BALANCE SHEET 
 
GOVERNMENTAL FUNDS 
 
4 
 
D 
 
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET 
 
TO THE STATEMENT OF NET ASSETS 
 
7 
 
E 
 
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES 
 
IN FUND BALANCES 
 
GOVERNMENTAL FUNDS 
 
8 
 
F 
 
RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT 
 
OF REVENUES, EXPENDITURES AND CHANGES IN FUND 
 
BALANCES TO THE STATEMENT OF ACTIVITIES 
 
10 
 
G 
 
STATEMENT OF FIDUCIARY NET ASSETS 
 
FIDUCIARY FUNDS 
 
11 
 
H 
 
NOTES TO THE BASIC FINANCIAL STATEMENTS 
 
12 
 
SCHEDULES 
 
REQUIRED SUPPLEMENTARY INFORMATION 
 
1 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES 
 
IN FUND BALANCES - BUDGET AND ACTUAL 
 
GENERAL FUND 
 
33 
 
 DEKALB COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - 
 
SECTION I 
 
FINANCIAL 
 
SCHEDULES 
 
SUPPLEMENTARY INFORMATION 
 
2 COMBINING BALANCE SHEET 
 
NONMAJOR GOVERNMENTAL FUNDS - CHARTER SCHOOLS 
 
34 
 
3 COMBINING STATEMENT OF REVENUES, EXPENDITURES AND 
 
CHANGES IN FUND BALANCES 
 
NONMAJOR GOVERNMENTAL FUNDS - CHARTER SCHOOLS 
 
36 
 
4 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 
 
38 
 
5 SCHEDULEOFSTATEREVENUE 
 
40 
 
6 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS 
 
42 
 
7 ALLOTMENTS AND EXPENDITURES 
 
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) 
 
BY PROGRAM 
 
43 
 
 SECTION II 
COMPLIANCE AND INTERNAL CONTROL REPORTS 
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENTAUDITING STANDARDS 
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 
 
SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS 
 
 DEKALB COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - 
SECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS 
 
 SECTION I FINANCIAL 
 
 Russell W. Hinton 
STATE AUDITOR 
(404) 656-2174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 
September 14, 2009 
 
Honorable Sonny Perdue, Governor Members ofthe General Assembly Members ofthe State Board of Education 
and Superintendent and Members ofthe DeKalb County Board of Education 
INDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 
Ladies and Gentlemen: 
We have audited the accompanying financial statements ofthe governmental activities, each major fund, and the aggregate remaining fund information (Exhibits A through H) of the DeKalb County Board of Education, as of and for the year ended June 30, 2008, which collectively comprise the Board's basic financial statements as listed in the table of contents. These financial statements are the responsibility ofthe DeKalb County Board ofEducation's management. Our responsibility is to express opinions on these financial statements based on our audit. We did not audit the financial statements ofAcademy ofLithonia, DeKalb Academy ofTechnology and the Environment, DeKalb PATH Academy, Destiny Academy ofExcellence and the International Community School Charter Schools, which represent 28 percent and 100 percent ofthe assets and revenues, respectively, ofthe aggregate remaining fund information. Those financial statements were audited by other auditors whose reports thereon have been furnished to us, and our opinion, insofar as it relates to the amounts included for Academy ofLithonia, DeKalb Academy ofTechnology and the Environment, DeKalb PATH Academy, Destiny Academy ofExcellence and the International Community School Charter Schools is based on the report of other auditors. 
We conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in GovernmentAuditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. The financial statements ofDeKalb Academy ofTechnology and the Environment, DeKalb PATH Academy and International Community School Charter Schools were not audited in accordance with Government Auditing Standards. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate 
2008ARL-12 
 
 in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the DeKalb County Board of Education's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit and the report of other auditors provide a reasonable basis for our opinions. 
In our opinion, based on our audit and the report of other auditors, the financial statements referred to previously present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the DeKalb County Board of Education, as of June 30, 2008, and the respective changes in financial position thereoffor the year then ended in conformity with accounting principles generally accepted in the United States of America. 
In accordance with Government Auditing Standards, we have also issued our report dated September 14, 2009, on our consideration of the DeKalb County Board of Education'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 ofthat report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. 
Management's Discussion and Analysis and the Schedule ofRevenues, Expenditures and Changes in Fund Balances - Budget and Actual, as presented on pages i through ix and page 33 respectively, are not a required part ofthe basic financial statements but are supplementary information required by the accounting principles generally accepted in the United States of America. We and the other auditors have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods ofmeasurement and presentation ofthe required supplementary information. However, we did not audit the information and express no opinion on it. 
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the DeKalb County Board of Education's basic financial statements. The accompanying supplementary information which consist of Schedules 2 through 7, which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of Management and Budget Circular A-133, Audits ofStates, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied by us and the other auditors in the audit of the basic financial statements, and in our opinion, based on our audit and the report of other auditors, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. 
2008ARL-12 
 
 A copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated section 50-6-24. 
Respectfully submitted, 
 
RWH:as 2008ARL-12 
 
~ - QQ, i<l.~~ 
Russell W. Hinton, CPA, CGFM State Auditor 
 
 DEKALB COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2008 
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, 2008. 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. 
Financial Highlights 
Key financial highlights for 2008 are as follows: 
 In total, net assets increased $111.2 million to $1.164 billion. This represents an 11 percent increase from 2007. This total increase was due to governmental activities since the Board has no business-type activities. 
 General revenues accounted for $619.8 million in revenues or 52.4 percent of all revenues. Program specific revenues in the form of charges for services, operating and capital grants and contributions accounted for $561.9 million or 47.6 percent of total revenues of $1.182 billion. 
 The Board had $1.070 billion in expenses related to governmental activities; $561.9 million of these expenses were offset by program specific charges for services, grants or contributions. 
 Among major funds, the general fund has $1.047 billion in revenues and $1.041 billion in expenditures. The general fund's "Net Change in Fund Balances" decreased by $2.34 million resulting in a change in the "Total Fund Balances" decreased from $19.35 million to $17.01 million for the fiscal year. The fund balance reflects the full accrual of all contracted salaries and benefits unpaid at June 30 in full compliance with generally accepted accounting principles. 
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 ofNet Assets and Statement ofActivities provides 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. 
-i - 
 
 DEKALB COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2008 
Reporting the Board as a Whole 
Statement ofNet Assets and the Statement ofActivities 
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 2008?" The Statement of Net Assets and the Statement of Activities answers 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 assets and changes in those assets. This change in net assets 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 base, facility conditions, required educational programs and other factors. 
In the Statement of Net Assets 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, District-wide capital projects funds and the debt service fund. 
Governmental Funds: Most of the Board's activities are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at year-end available for spending in future periods. These funds are reported using an accounting method called modified accrual accounting, which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the Board's general government operations and the basic services it provides. Governmental fund information helps you determine whether there are more or fewer financial resources that 
- ii - 
 
 DEKALB COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2008 
 
can be spent in the near future to finance educational programs. The relationship (or differences) between governmental activities (reported in the Statement of Net Assets and the Statement of Activities) and governmental funds is reconciled in the financial statements. 
 
Fiduciary Funds: The Board is the trustee, or fiduciary, for assets that belong to others, such as school clubs and organizations within the principals' accounts. The Board is responsible for ensuring that the assets reported in these funds are used only for their intended purposes and by those to whom the assets belong. The Board excludes these activities from the District-wide financial statements because it cannot use these assets to finance its operations. 
 
The Board as a Whole 
 
The perspective of the statement of net assets is of the Board as a whole. Table 1 provides a summary of the Board's net assets for fiscal year 2008 compared to fiscal year 2007. 
 
Table 1 Net Assets (in Thousands) 
 
Governmental Activities 
 
Fiscal 
 
Fiscal 
 
Year 2008 
 
Year 2007 
 
Assets Current and Other Assets Capital Assets, Net 
 
$ 623,374 $ 1,062.603 
 
569,507 962,861 
 
Total Assets 
 
$ 1,685,977 $ 1,532,368 
 
Liabilities Current and Other Liabilities Long-Term Liabilities 
 
$ 158,207 $ 163,413 
 
363,387 
 
315,759 
 
Total Liabilities 
 
$ 521,594 $ 479,172 
 
Net Assets Invested in Capital Assets, Net of Related Debt Restricted Unrestricted (Deficit) 
 
$ 1,004,421 $ 160,870 -908 
 
957,545 93,492 2,159 
 
Total Net Assets 
 
$ 1,164.383 $ 1,053,196 
 
Total net assets increased $111.2 million. 
 
Table 2 shows the changes in net assets for fiscal year 2008 compared to fiscal year 2007. 
 
- 111 - 
 
 DEKALB COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2008 
 
Table 2 Change in Net Assets 
(in Thousands) 
Revenues Program Revenues: Charges for Services and Sales Operating Grants and Contributions Capital Grants and Contributions 
Total Program Revenues 
General Revenues: Taxes Property Taxes For Maintenance and Operations Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Intangible Recording Tax Real Estate Alcoholic Beverages Investment Earnings Miscellaneous 
Special Items Loss on Disposal of Capital Assets 
Total General Revenues and Special Items 
Total Revenues 
Program Expenses Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportat10n Services Central Support Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Food Services Interest on Short-Term and Long-Term Debt 
Total Expenses 
Increase in Net Assets 
 
Governmental Activities 
 
Fiscal 
 
Fiscal 
 
Year 2008 Year 2007 
 
$ 20,317 523,736 172861 
$ 5612914 
 
$ 8,875 501,616 102556 
$ 5212047 
 
$ 471,007 $ 454,788 
 
104,567 7,786 2,453 6,190 
25,821 9,341 
-72393 
$ 6192772 
$ 1J8L686 
 
102,656 11,117 3,881 6,049 14,188 18,101 
-22631 
$ 6082149 
$ 1J29J96 
 
$ 639,222 
38,157 56,902 19,757 20,100 68,337 13,598 85,427 49,259 19,190 
416 
2,667 47,410 102057 
$ L070,499 
$ 111,187 
 
$ 631,396 
32,708 53,393 19,725 10,632 61,188 10,023 81,207 48,256 20,586 
1,577 
3,100 46,722 
22519 
$ L0232032 
$ 106,164 
 
- IV - 
 
 DEKALB COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2008 
 
Governmental Activities 
 
Instruction, Pupil Services and Improvement of Instructional Services comprises 68.6 percent of governmental program expenses. The Operations of Non-instructional Services amounted to 4.7 percent of the total governmental program expenses. These operations consist primarily of the School Nutrition and Athletics programs. 
 
The Statement of Activities shows the cost of program services and the charges for services and grants offsetting those services. Table 3 shows, for governmental activities, the net cost of services for fiscal year 2008 compared to fiscal year 2007. That is, it identifies the cost of these services supported by tax revenue and unrestricted State entitlements. 
 
Table 3 Governmental Activities 
(in Thousands) 
 
Net Cost of Services Fiscal Year 2008 
 
Net Cost of Services Fiscal Year 2007 
 
Instruction Support Services 
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 Other Support Services Operations of Non-Instructional Services Enterprise Operations Food Services Interest on Short-Term and Long-Term Debt 
 
$ 242,958 $ 251,788 
 
30,368 39,626 
7,059 8,936 42,346 13,252 53,373 39,139 17,196 
156 
 
26,240 34,844 10,265 
9,875 41,846 
9,396 56,988 39,775 12,858 
1,396 
 
2,393 1,726 10,057 
 
2,072 2,123 2,519 
 
Total Net Cost of Services 
 
$ 5081585 $ 5011985 
 
Although program revenues make up 47.6 percent of the revenues, the Board is still primarily dependent upon tax revenues for governmental activities. More than 38.0 percent of instruction activities are supported through taxes and other general revenues; for all governmental activities general revenue support is 47.5 percent. 
 
-v- 
 
 DEKALB COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2008 
The Board's Funds 
The Board's governmental funds are accounted for using the modified accrual basis of accounting. Total governmental funds had revenues and other financing sources of $1.251 billion and expenditures and other financing uses of $1.200 billion. There was an increase in fund balance of $54.0 million in the capital project funds due to the sales tax proceeds collected being higher than conservative projections during the year. The general fund had a decrease in fund balance of $2.3 million. The change in the fund balance of the general fund for the year was due to increases in budgeted expenditures during the year. These increases in spending were the result of a concentrated increase in instructional expenditures and student transportation services. The effort by the Board to begin to rebuild the general fund balance, which has been severely depleted in prior years by state funding reductions which began in fiscal year 2003, was subordinated to provide additional resources for instruction and student achievement. This has resulted in a reduction in state earnings of nearly $88.0 million over the past six fiscal years. 
General Fund Budgeting Highlights 
The Board's budget is prepared according to Georgia law. The most significant budgeted fund is the General Fund. 
During the course of fiscal year 2008, the Board amended its general fund budget as needed. The Board uses site-based budgeting based on FTE student allocations. The budgeting systems are designed to tightly control total sited budgets but provide flexibility for site management. 
For the General Fund, final budgeted revenues and other sources of $1.010 billion was exceeded by the actual by $40.6 million. This difference was due mainly to receiving additional Property Taxes as well as State Funds that exceeded the projected amounts. Better than expected investment earnings were also a factor in the better than projected revenue forecast. 
Actual expenditures of $1.041 billion were 2.3 percent more than the final budgeted total of $1.018 billion. More than projected instructional salaries and operating costs contributed to the budget variance. Additionally, the food costs for the school nutrition operations were more than expected. 
General Fund expenditures exceeded revenues and other financing sources resulting in a decrease in "Net Change in Fund Balances" of over $2.3 million for the year. The additional instruction related costs was a major factor in the decrease. 
- VI - 
 
 DEKALB COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2008 
 
Capital Assets and Debt Administration 
 
Capital Assets 
 
At the end of fiscal year 2008 the Board had $1.063 billion invested in capital assets, all in governmental activities. Table 4 shows fiscal year 2008 balances compared with fiscal year 2007 balances. 
 
Table 4 Capital Assets at June 30 (Net of Depreciation, in Thousands) 
 
Governmental Activities 
 
Fiscal 
 
Fiscal 
 
Year 2008 Year 2007 
 
Land Construction in Progress Buildings and Building Improvements Improvements Other than Buildings Equipment 
 
$ 41,718 94,330 844,622 28,586 53,347 
 
$ 35,771 81,239 
770,948 29,435 45.469 
 
Total 
 
$ 1,062,603 $ 962,862 
 
The primary increases occurred in buildings and building improvements, equipment and construction in progress. Due to the ongoing growth in the county, the Board has numerous construction projects including new buildings, additions, and renovations. 
 
Debt 
 
At June 30, 2008 the Board had $40.0 million in capital leases. There were $12.3 million in compensated absences. There was $300.0 million in general obligation bonds and $11.1 million in premiums from the fiscal year 2007 bond issue. $11.3 million of the outstanding debt is due within one year. The Board defeased all of its outstanding General Obligation Bonds in prior years. This defeasance was the culmination of the 1997 Special Purpose Local Option Sales Tax Program with sales tax proceeds being used to repay the previously incurred debt. 
 
Table 5 summarizes outstanding debt and compares fiscal year 2008 balances to fiscal year 2007 balances. 
 
- vu - 
 
 DEKALB COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2008 
 
Table 5 Debt at June 30 (in Thousands) 
 
Governmental Activities 
 
Fiscal 
 
Fiscal 
 
Year 2008 Year 2007 
 
Capital Leases Compensated Absences General Obligation Bonds Unamortized Bond Premiums 
 
$ 40,038 12,272 
300,000 11,077 
 
$ 2,467 11,704 
300,000 13,292 
 
Total 
 
$ 363!387 $ 327A63 
 
The Board maintains an AA- and Aa3 bond rating from Standard and Poor's and Moody's, respectively. 
 
Current Issues 
 
The DeKalb County School System continues to face serious reductions in the State's "Quality Basic Education" funding formula earnings. In addition to the over $28 million in State funding lost in the current year, State austerity reductions have amounted to nearly $100 million through fiscal year 2008. Sales tax collections from the 2007 approved Special Purpose Local Option Sales Tax continue to exceed projections. 
 
Continued challenges with the State funding are a concern for the DeKalb County School System. Year-over-year State revenues are decreasing from the 2008 fiscal year to the 2009 fiscal year and from the 2009 fiscal year to the 2010 fiscal year, yet the student population is stable. 
 
Local revenue in DeKalb County School System is decreasing, also. Property tax revenues are impacted by the revaluation of property due to foreclosures and weak sales. Overall, total 
aGreenm.ercarleaFsum.ngd. revenues are decreasing and the requirements for improving student achievement 
 
The Board will be challenged to continue to overcome any current or future financial challenges given the state of the local, State and national economy. DeKalb County School System does continue to strive to increase the working reserve to higher levels in order to sustain the School System and will do so as soon as it is feasible. 
 
- Vlll - 
 
 DEKALB COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2008 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 Mr. Marcus T. Turk, Chief Financial Officer, at the DeKalb County Board of Education, 3770 North Decatur Road, Decatur, Georgia, 30032. You may also e-mail your questions to marcus_turk@fc.dekalb.kl2.ga.us. 
- ix - 
 
 DEKALB COUNTY BOARD OF EDUCATION 
 
 DEKALB COUNTY BOARD OF EDUCATION STATEMENT OF NET ASSETS JUNE 30, 2008 
ASSETS 
Cash and Cash Equivalents Investments Accounts Receivable, Net 
Interest Taxes State Government Federal Government Other Inventories Prepaid Items Other Current Assets Capital Assets Land Construction in Progress Land Improvements Buildings Equipment Less: Accumulated Depreciation 
Total Assets 
LIABILITIES 
Accounts Payable Salaries and Benefits Payable Contracts Payable Retainages Payable Deposits and Deferred Revenues Arbitrage Rebate Tax Payable Long-Term Liabilities 
Due Within One Year Due in More Than One Year 
Total Liabilities 
NET ASSETS 
Invested in Capital Assets, Net of Related Debt Restricted for 
Bus Replacement Continuation of Federal Programs Debt Service Capital Projects Unrestricted (Deficit) 
Total Net Assets 
Total Liabilities and Net Assets 
The notes to the basic financial statements are an integral part of this statement. 
- 1- 
 
EXHIBIT"A" 
GOVERNMENTAL ACTIVITIES 
$ 108,268,269.52 410,860,622.48 5,195,038.16 22,207,136.88 58,466,602.11 14,202,672.64 717,690.02 3,419,532.98 26,085.00 10,162.00 41,717,850.61 94,330,509.20 30,468,038.00 
1,168,335,929.70 94,326,764.47 
-366,576, 183.84 
$ 1,685,976,719.93 
$ 53,511,961.88 84,792,738.38 10,377,438.75 5,367,214.87 596,930.22 3,559,864.05 11,334,917.53 
352,052,474.94 $ 521,593,540.62 
$ 1,004,421,606.75 1,851,455.75 7,244,471.51 7,413,700.00 
144,360,230.41 -908,285.11 
$ 1,164,383,179.31 
$ 1,685,976,719.93 
 
 DEKALB COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES 
FOR THE YEAR ENDED JUNE 30, 2008 
 
GOVERNMENTAL ACTIVITIES 
Instruction Support Services 
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 Other Support Services Operations of Non-Instructional Services Enterprise Operations Food Services Interest on Short-Term and Long-Term Debt 
Total Governmental Activities 
General Revenues Taxes Property Taxes For Maintenance and Operations Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Intangible Recording Tax Real Estate Other Taxes Investment Earnings Miscellaneous 
Special Items Loss on Disposal of Capital Assets (Note 12) 
Total General Revenues and Special Items 
Change in Net Assets 
Net Assets - Beginning of Year 
Net Assets - End of Year 
 
EXPENSES 
 
CHARGES FOR SERVICES 
 
$ 639,221,604.56 $ 
38,157,339.72 56,902,015.09 19,756,729.79 20,099,890.28 68,336,666.76 13,598,064.68 85,426,747.13 49,259,567.08 19,189,715.27 
416,485.93 
2,666,916.53 47,410,620.22 10,057,596.71 
$ 1,070,499,959.75 $ 
 
12,130,367.38 
908,479.30 7,278,489.98 20,317,336.66 
 
The notes to the basic financial statements are an integral part of this statement. -2- 
 
 EXHIBIT"B" 
 
PROGRAM REVENUES 
 
OPERATING 
 
CAPITAL 
 
GRANTS AND 
 
GRANTS AND 
 
CONTRIBUTIONS CONTRIBUTIONS 
 
NET (EXPENSES) REVENUES 
AND CHANGES IN NET ASSETS 
 
$ 370,388,772.61 $ 
7,789,313.35 17,189,877.98 12,459,290.68 11,163,999.01 25,990,083.39 
195,774.82 31,108,345.56 
8,246,620.24 1,994,075.12 
260,104.49 
273,930.49 36,676,076.30 
$ 523,736,264.04 $ 
 
13,744,397.83 $ 
86,076.53 238,437.39 
150,320.90 945,155.71 965,773.00 
1,730,345.74 
17,860,507.10 $ 
 
-242,958,066.74 
-30,368,026.37 -39,626,060.58 -7,059,001.72 -8,935,891.27 -42,346,583.37 -13,251,968.96 -53,373,245.86 -39, 138,694.54 -17,195,640.15 
-156,381.44 
-2,392,986.04 -1,725,708.20 -10,057,596.71 
-508,585,851.95 
 
$ 
 
471,006,761.85 
 
104,567,150.79 7,786,367.11 2,452,992.87 6,189,915.03 
25,821,237.37 9,341,228.01 
 
-7,393,081.06 
 
$ 
 
619,772,571.97 
 
$ 
 
111,186,720.02 
 
1,053,196,459.29 
 
$ 1,164,383,179.31 
 
-3- 
 
 DEKALB COUNTY BOARD OF EDUCATION BALANCE SHEET 
GOVERNMENTAL FUNDS JUNE 30, 2008 
 
GENERAL FUND 
 
DISTRICTWIDE 
CAPITAL PROJECTS 
FUND 
 
Cash and Cash Equivalents Investments Accounts Receivable, Net 
Interest Taxes State Government Federal Government Other Inventories Prepaid Items Other Current Assets 
Total Assets 
 
$ 53,048,117.19 $ 53,345,505.99 20,706,326.20 389,859,843.28 
 
389,185.27 1,792,075.23 58,466,602.11 14,202,672.64 
154,314.02 3,419,532.98 
 
4,805,852.89 17,621,525.71 
 
$ 152,178,825.64 $ 465,632,727.87 
 
LIABILITIES AND FUND BALANCES 
LIABILITIES 
Accounts Payable Salaries and Benefits Payable Contracts Payable Retainages Payable Deposits and Deferred Revenue 
Total Liabilities 
FUND BALANCES 
Reserved for: Arbitrage Rebate Tax Bus Replacement Continuation of Federal Programs Debt Service Capital Projects 
Unreserved Undesignated Reported in: General Fund Nonmajor Governmental Funds 
Total Fund Balances 
Total Liabilities and Fund Balances 
 
$ 49,780,838.36 $ 1,684,779.52 84,787,418.38 10,377,438.75 5,367,214.87 596,930.22 
$ 135,165,186.96 $ 17,429,433.14 
$ 3,559,864.05 $ 1,851,455.75 
7,244,471.51 7,349,060.66 
437,294,370.02 
7,917,711.42 
$ 17,013,638.68 $ 448,203,294.73 
$ 152,178,825.64 $ 465,632,727.87 
 
The notes to the basic financial statements are an integral part of this statement. -4- 
 
 EXHIBIT"C" 
 
DEBT SERVICE 
FUND 
 
NONMAJOR GOVERNMENTAL 
FUNDS 
 
TOTAL 
 
$ 64,639.34 $ 
 
1,810,007.00 $ 294,453.00 
563,376.00 26,085.00 10,162.00 
 
108,268,269.52 410,860,622.48 
5,195,038.16 19,413,600.94 58,466,602.11 14,202,672.64 
717,690.02 3,419,532.98 
26,085.00 10,162.00 
 
$ 
 
64,639.34 $ 
 
2,704,083.00 $ 620,580,275.85 
 
$ 
 
2,046,344.00 $ 
 
53,511,961.88 
 
5,320.00 
 
84,792,738.38 
 
10,377,438.75 
 
5,367,214.87 
 
596,930.22 
 
$ 
 
2,051,664.00 $ 154,646,284.10 
 
$ 
 
64,639.34 
 
$ 
 
$ 
 
64,639.34 $ 
 
$ 
 
3,559,864.05 
 
1,851,455.75 
 
7,244,471.51 
 
7,413,700.00 
 
437,294,370.02 
 
652,419.00 652,419.00 $ 
 
7,917,711.42 652,419.00 
465,933,991.75 
 
$ 64,639.34 $ 
 
2,704,083.00 $ 620,580,275.85 
 
-5- 
 
 (This page left intentionally blank) 
 
 DEKALB COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET 
TO THE STATEMENT OF NET ASSETS JUNE 30, 2008 
 
EXHIBIT"D" 
 
Total Fund Balances - Governmental Funds (Exhibit "C") 
Amounts reported for Governmental Activities in the Statement of Net Assets are different because: 
Capital Assets used in Governmental Activities are not financial resources and therefore are not reported in the funds. These assets consist of: 
Land Construction in Progress Land Improvements Buildings Equipment Accumulated Depreciation 
Total Capital Assets 
Some of the School District's property tax revenues will be collected after year-end but are not available soon enough to pay for the current period's expenditures. 
Only the portion of the arbitrage rebate tax liability that represents the use of current financial resources would be reported at the fund level. Since the liability will not be paid out over the next fiscal year, it is not reported in the funds. 
Long-Term Liabilities, including Bonds Payable, are not due and payable in the current period and therefore are not reported as liabilities in the funds. Long-Term Liabilities at year-end consist of: 
Bonds Payable Capital Leases Compensated Absences Unamortized Bond Premiums 
Total Long-Term Liabilities 
 
$ 465,933,991.75 
 
$ 41,717,850.61 94,330,509.20 30,468,038.00 
1,168,335,929.70 94,326,764.47 
-366,576.183.84 
 
1,062,602,908.14 
 
2,793,535.94 
 
-3,559,864.05 
 
$ -300,000,000.00 -40,038,490.00 -12,271,951.47 -11,076,951.00 
 
-363,387,392.47 
 
Net Assets of Governmental Activities (Exhibit "A") 
 
$ 1,164,383,179.31 
 
The notes to the basic financial statements are an integral part of this statement. -7- 
 
 DEKALB COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 
GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2008 
 
REVENUES 
Property Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous 
Total Revenues 
EXPENDITURES 
Current Instruction Support Services 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 Other Support Services Enterprise Operations Food Services Operation 
Capital Outlay Debt Services 
Principal Interest 
Total Expenditures 
Excess of Revenues over (under) Expenditures 
OTHER FINANCING SOURCES (USES) 
Sale of Equipment Capital Leases Transfers In Transfers Out 
Total Other Financing Sources (Uses) 
Net Change in Fund Balances 
Fund Balances - Beginning 
 
GENERAL FUND 
 
DISTRICTWIDE 
CAPITAL PROJECTS 
FUND 
 
$ 471,265,106.00 
 
16,429,275.01 $ 104,567,150.79 
 
432,460,674.72 
 
16,797,234.10 
 
92,192,621.32 
 
19,845,837.66 
 
7,133,244.07 
 
18,663,411.92 
 
7,773,958.01 
 
$ 1,047,100,716.79 $ 140,027,796.81 
 
$ 626,231,882.57 $ 1,094,397.30 
 
38,086,073.76 56,882,915.98 19,727,512.01 18,086,675.54 67,766,211.75 
9,518,287.77 84,252,625.19 48,917,438.02 19,159,127.18 
257,336.93 2,666,916.53 47,186,993.06 
11,045.79 
 
264,692.75 109,699,224.09 
 
2,290,014.68 366,570.91 
 
786,066.00 
 
$ 1,041,407,627.67 $ 111,844,380.14 
 
$ 
 
5,693,089.12 $ 28,183,416.67 
 
$ 
 
15,094.05 
 
3,856,897.14 $ 36,000,000.00 
 
-11,905,589.00 
 
-9,925,611. 73 
 
$ 
 
-8,033,597.81 $ 26,074,388.27 
 
$ 
 
-2,340,508.69 $ 54,257,804.94 
 
19,354,147.37 393,945,489.79 
 
Fund Balances - Ending 
The notes to the basic financial statements are an integral part of this statement. -8- 
 
$ 17,013,638.68 $ 448,203,294.73 
 
 EXHIBIT"E" 
 
DEBT SERVICE 
FUND 
 
NONMAJOR GOVERNMENTAL 
FUNDS 
 
TOTAL 
 
$ 471,265,106.00 
 
120,996,425.80 
 
$ 
 
85,875.00 
 
449,343,783.82 
 
60,366.00 
 
92,252,987.32 
 
471,499.00 
 
20,317,336.66 
 
$ 
 
13,089.38 
 
11,492.00 
 
25,821,237.37 
 
1,567,270.00 
 
9,341,228.01 
 
$ 
 
13,089.38 $ 
 
2,196,502.00 $ 1,189,338,104.98 
 
$ 
$ 11,120,350.00 $ 11,120,350.00 $ $ -11,107,260.62 $ 
 
9,930,883.00 $ 637,257,162.87 
 
67,433.00 
1,999,486.00 328,733.00 236,800.00 922,235.00 
159,149.00 
10,005.00 
 
38,153,506.76 56,882,915.98 19,727,512.01 20,086,161.54 68,094,944.75 10,019,780.52 85,174,860.19 48,917,438.02 19,159,127.18 
416,485.93 2,666,916.53 47,186,993.06 109,720,274.88 
 
33,026.00 
 
2,323,040.68 12,272,986.91 
 
13,687.750.00 $ 1,178,060,107.81 
 
-11,491,248.00 $ 11,277,997.17 
 
$ $ 9,925,611.73 
$ 9,925,611.73 $ $ -1, 181,648.89 $ 
1,246,288.23 
 
$ 37,484.00 11,905,589.00 
 
15,094.05 39,894,381.14 21,831,200.73 -21,831,200.73 
 
11,943,073.00 $ 39,909,475.19 
 
451,825.00 $ 51,187,472.36 
 
200,594.00 
 
414,746,519.39 
 
$ 
 
64,639.34 $ 
 
652 419.00 $ 465,933,991.75 
 
-9- 
 
 DEKALB COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF 
REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2008 
 
EXHIBIT"F" 
 
Total Net Change in Fund Balances - Governmental Funds (Exhibit "E") 
Amounts reported for Governmental Activities in the Statement of Activities are different because: 
Capital Outlays are reported as expenditures in Governmental Funds. However, in the Statement of Activities, the cost of Capital Assets is allocated over their estimated useful lives as depreciation expense. In the current period, these amounts are: 
Capital Outlay Depreciation Expense 
Excess of Capital Outlay over Depreciation Expense 
Because some property taxes will not be collected for several months after the School District's fiscal year ends, they are not considered "available" revenues. 
In the Statement of Activities, only the gain on the sale of the capital assets is reported, whereas in the Governmental Funds, the entire proceeds from the sale increase financial resources. Thus, the change in net assets differs from the change in fund balances by the carrying value of the capital assets sold. 
Some of the Capital Assets acquired this year were financed with capital leases. In Governmental Funds, a capital lease arrangement is considered a source of financing, but in the Statement of Net Assets, the lease obligation is reported as a Long-Term Liability. 
Only the portion of the arbitrage rebate tax expense that represents the use of current financial resources would be reported at the fund level. Since the expense will not be paid out over the next fiscal year, it is not reported in the funds. 
Repayment of Long-Term Debt is reported as an expenditure in Governmental Funds, but the repayment reduces Long-Term Liabilities in the Statement of Net Assets. In the current year, these amounts consist of: 
Capital Lease Payments Amortizations to Bond Premium 
Total Long-Term Debt Repayments 
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. These activities consist of: 
Increase in Compensated Absences 
 
$ 51,187,472.36 
 
$ 128,723,397.41 -21,573,730.71 
 
107,149,666.70 
 
-258,344.15 
 
-7,408, 175.11 
 
-39,894,381.14 
 
-3,559,864.05 
 
$ 2,323,040.68 2,215,390.20 
 
4,538,430.88 
 
-568,085.47 
 
Change in Net Assets of Governmental Activities (Exhibit "B") 
 
$ 11 U861120.02 
 
The notes to the basic financial statements are an integral part of this statement. - 10 - 
 
 DEKALB COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET ASSETS 
FIDUCIARY FUNDS 
JUNE 30, 2008 
ASSETS Accounts Receivable, Net 
Other 
LIABILITIES Cash Overdraft Accounts Payable Other Liabilities Funds Held for Others 
Total Liabilities 
 
EXHIBIT"G" 
AGENCY FUNDS 
$ 6,668,488.15 
$ 3,843,529.95 2,272.25 
662,097.78 2, 160,588.17 
$ ==-6,=66=8=,4=8=8.=15= 
 
The notes to the basic financial statements are an integral part of this statement. 
- 11 - 
 
 DEKALB COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS 
JUNE 30, 2008 
 
EXHIBIT "H" 
 
Note 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY 
 
REPORTING ENTITY 
 
The DeKalb County Board ofEducation (School District) was established under the laws ofthe State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board 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. 
 
Blended Component Units Included within the School District are five Charter Schools. Each Charter School is responsible for the public education ofall students attending its school. The Charter Schools were created through a contract between the School District and each Charter School whereby all State funding associated with the students attending the Charter Schools and certain specified local funds are remitted to the Charter Schools to cover their operations. The financial statements ofthe Charter Schools have been blended with the School District's nonmajor governmental funds. 
 
A listing of the Charter Schools follows: 
 
Academy of Lithonia, Incorporated 3235 Evans Mill Road Lithonia, Georgia 30058 
 
Destiny Academy of Excellence, Incorporated 3595 Linecrest Road Ellenwood, Georgia 30294 
 
DeKalb Academy of Technology and the Environment, Incorporated 
1833 Stone Mountain Lithonia Road Lithonia, Georgia 30058 
 
International Community School, Incorporated 3260 Covington Highway Decatur, Georgia 30032 
 
DeKalb PATH Academy, Incorporated 3007 Hermance Drive Clarkston, Georgia 30021 
 
The Gateway to College Academy (Charter School) is responsible for the public education of all students attending its school. The Charter School was created through a contract between the School District, Charter School and Georgia Perimeter College whereby all State funding associated with the students attending the Charter School and certain specified local funds are turned over to the Charter School to cover the cost ofits operations. Gateway to College Academy was included in the financial statements of Georgia Perimeter College. 
 
- 12 - 
 
 DEKALB COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS 
JUNE 30, 2008 
 
EXHIBIT"H" 
 
Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
BASIS OF PRESENTATION 
The School District's basic financial statements are collectively comprised of the District-wide financial statements, fund financial statements and notes to the basic financial statements of the DeKalb County Board of Education. 
District-wide Statements: The Statement ofNet Assets and the Statement ofActivities display information about the financial activities ofthe overall School District, except for fiduciary activities. 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 ofActivities 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 ofthe 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 ofgoods 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, including fiduciary funds. Eliminations have been made to minimize the double counting ofinternal activities. Separate statements for each category (governmental and fiduciary) are presented. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. All remaining governmental funds are aggregated and reported as nonmajor funds. 
The School District reports the following major governmental funds: 
 General Fund is the School District's primary operating fund. It accounts for all financial resources ofthe School District, except those resources required to be accounted for in another fund. 
 District-wide Capital Projects Fund accounts for financial resources including Special Purpose Local Option Sales Tax (SPLOST), Bond Proceeds and grants from Georgia State Financing and Investment Commission to be used for the acquisition, construction or renovation ofmajor capital facilities. 
- 13 - 
 
 DEKALB COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS 
JUNE 30, 2008 
 
EXHIBIT "H" 
 
Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
 Debt Service Fund accounts for taxes (sales) legally restricted for the payment ofgeneral longterm principal, interest and paying agent's fees. 
The School District reports the following fiduciary fund type: 
 Agency funds account for assets held by the School District as an agent for various funds, governments or individuals. 
BASIS OF ACCOUNTING 
The basis ofaccounting determines when transactions are reported on the financial statements. The District-wide governmental and fiduciary fund 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 ofwhen 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 ofaccounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt and compensated absences, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities and acquisitions under capital leases are reported as other financing sources. 
The School District funds certain programs by a combination ofspecific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted net assets 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. 
 
- 14 - 
 
 DEKALB COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS 
JUNE 30, 2008 
 
EXHIBIT "H" 
 
Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
CASH AND CASH EQUIVALENTS 
COMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits 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 Section 45-8-14 authorize 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. 
INVESTMENTS 
COMPOSITION OF INVESTMENTS Investments made by the School District in nonparticipating interest-earning contracts (such as certificates ofdeposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code ofGeorgia Annotated Section 36-83-4 authorizes the School District to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: 
(1) Obligations issued by the State of Georgia or by other states, 
(2) Obligations issued by the United States government, 
(3) Obligations fully insured or guaranteed by the United States government or a United States government agency, 
(4) Obligations of any corporation of the United States government, 
(5) Prime banker's acceptances, 
(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services, 
(7) Repurchase agreements, and 
(8) Obligations of other political subdivisions of the State of Georgia. 
The School District does not have a formal policy regarding investment policies that address credit risks, custodial credit risks, concentration ofcredit risks, interest rate risks or foreign currency risks. 
 
- 15 - 
 
 DEKALB COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS 
JUNE 30, 2008 
 
EXHIBIT "H" 
 
Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
 
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. 
 
PROPERTY TAXES 
 
The DeKalb County Board ofCommissioners fixed the property tax levy for the 2007 tax digest year (calendar year) on June 12, 2007 (levy date). Taxes were due on November 15, 2007 (lien date) and could be paid in two installments on August 15, 2007 and November 15, 2007 (due dates). Taxes collected within the current fiscal year or within 60 days after year-end on the 2007 tax digest are reported as revenue in the governmental funds for fiscal year 2008. The DeKalb County Tax Commissioner bills and collects the property taxes for the School District, withholds 1.25% oftaxes collected as a fee for tax collection and remits the balance oftaxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2008, for maintenance and operations amounted to $471,265,106.00. 
 
The tax millage rate levied for the 2007 tax year (calendar year) for the DeKalb County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): 
 
School Operations 
 
22.98 mills 
 
SALES TAXES 
 
Special Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $104,567,150.79 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. 
 
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. 
 
- 16 - 
 
 DEKALB COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS 
JUNE 30, 2008 
 
EXHIBIT"H" 
 
Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
 
FOOD INVENTORIES On the basic financial statements, inventories ofdonated food commodities used in the preparation ofmeals are reported at their Federally assigned value and purchased foods inventories are reported at cost (first-in, first-out). 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. 
 
PREPAID ITEMS 
 
Payments made to vendors for services that will benefit periods subsequent to June 30, 2008, are recorded as prepaid items. 
 
CAPITAL ASSETS 
 
Capital assets purchased, including capital outlay costs, are recorded as expenditures in the fund financial statements at the time of purchase (including ancillary charges). On the District-wide financial statements, all purchased capital assets are valued 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 estimated fair market value on the date donated. Disposals are deleted at depreciated recorded cost. The cost of normal maintenance and repairs that do not add to the value ofassets or materially extend the useful lives of the assets is not capitalized. Depreciation is computed using the straight-line method. The School District does not capitalize book collections or works ofart. During the fiscal year under review, no events or changes in circumstances affecting a capital asset that may indicate impairment were known to the School District. 
 
Capitalization thresholds and estimated useful lives of capital assets reported in the District-wide statements are as follows: 
 
Capitalization Policy 
 
Estimated Useful Life 
 
Land Land Improvements Buildings and Improvements Improvements Other than Buildings Equipment 
Outdoor Equipment Vehicles Kitchen Equipment Computers Miscellaneous Buses 
 
All $ 100,000.00 $ 100,000.00 $ 100,000.00 
 
NIA 20 years 80 years 20 years 
 
$ 5,000.00 
 
15 years 
 
$ 5,000.00 
 
20 years 
 
$ 5,000.00 
 
12 years 
 
$ 5,000.00 
 
10 years 
 
$ 5,000.00 10 to 30 years 
 
$ 5,000.00 
 
20 years 
 
- 17 - 
 
 DEKALB COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS 
JUNE 30, 2008 
 
EXHIBIT "H" 
 
Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
Depreciation is used to allocate the actual or estimated historical cost of all capital assets over estimated useful lives. 
COMPENSATED ABSENCES 
Members ofthe Teachers Retirement System ofGeorgia (TRS) may apply unused sick leave toward early retirement. The liability for early retirement will be borne by TRS rather than by the individual school districts. Otherwise, sick leave does not vest with the employee, and no liability is reported in the School District's financial statements. 
Vacation leave of 10 through 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, at a maximum of half the days earned, providing such vacation leave does not exceed 30 days. 
GENERAL OBLIGATION BONDS 
The School District issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. In the District-wide statements, bond premiums and discounts are deferred and amortized over the life ofthe bonds using the straight-line method. Bond issuance costs are recognized during the fiscal year bonds are issued. In order to conform to generally accepted accounting principles, bond issuance costs should be reported as deferred charges and amortized over the term ofthe debt. The effect ofthis deviation is deemed to be immaterial to the fair presentation of the basic financial statements. 
In the fund financial statements, the School District recognizes bond premiums and discounts, as well as bond issuance costs during the fiscal year bonds are issued. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. General obligation bonds are direct obligations and pledge the full faith and credit of the government. The outstanding amount of these bonds is recorded in the Statement of Net Assets. 
NET ASSETS 
The School District's net assets in the District-wide Statements are classified as follows: 
Invested in capital assets, net of related debt - This represents the School District's total investment in capital assets, net ofoutstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of invested in capital assets, net of related debt. 
 
- 18 - 
 
 DEKALB COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS 
JUNE 30, 2008 
 
EXHIBIT"H" 
 
Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
Restricted net assets - These represent resources for which the School District is legally or contractually obligated to spend resources for bus replacement, continuation ofFederal programs, debt service and capital projects in accordance with restrictions imposed by external third parties. 
Unrestricted net assets - Unrestricted net assets represent resources derived from property taxes, sales taxes, grants and contributions not restricted to specific programs, charges for services, and miscellaneous revenues. These resources are used for transactions relating to the educational and general operations of the School District, and may be used at the discretion of the Board to meet current expenses for those purposes. 
Note 3: DEPOSITS AND INVESTMENTS 
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 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 ofmoney which has not been secured by surety bond, by guarantee ofinsurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. Ifa depository elects the pooled method (OCGA 45-8-13 .1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 1l0percentofthe daily pool balance. At June 30, 2008, $1,591,831.00 ofdeposits were not secured by surety bond, insurance or collateral as specified above. The School District is working with the affected financial institutions to ensure appropriate levels of collateral are maintained for all of the School District's deposits. 
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 ofthe 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, 
(6) Industrial revenue bonds and bonds of development authorities created by the laws ofthe State of Georgia, and 
 
- 19 - 
 
 DEKALB COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS 
JUNE 30, 2008 
 
EXHIBIT "H" 
 
Note 3: DEPOSITS AND INVESTMENTS 
 
(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 At June 30, 2008, the bank balances were $135,032,957.63. The amounts of the total uninsured bank balances are classified into three categories of custodial credit risk: 
 
Category 1 - Uncollateralized, Category 2 - Cash collateralized with securities held by the pledging financial institution, or Category 3 - Cash collateralized with securities held by the pledging financial institution's 
trust department or agent but not in the School District's name. 
 
The School District's uninsured deposits are classified by custodial credit risk category at June 30, 2008, as follows: 
 
Custodial Credit Risk Category 
 
Bank Balance 
 
1 
 
$ 1,591,831.00 
 
2 
 
0.00 
 
3 
 
117,297,981.16 
 
Total 
 
$ 118,889,812.16 
 
CATEGORIZATION OF INVESTMENTS The School District's investments as of June 30, 2008, are presented below. All investments are presented by investment type and debt securities are presented by maturity. 
 
Investment Type 
 
Fair Value 
 
Debt Securities Money Market Funds 
 
$ 380,675,067.28 
 
Investment Pools Office of Treasury and Fiscal Services Georgia Fund 1 
 
9,184,776.00 
 
Total Investments 
 
$ 389,859.843.28 
 
- 20 - 
 
 DEKALB COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS 
JUNE 30, 2008 
 
EXHIBIT"H" 
 
Note 3: DEPOSITS AND INVESTMENTS 
The Georgia Fund 1, formerly referred to as LGIP, administered by the State of Georgia, Office of Treasury and Fiscal Services is not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy ofthe State ofGeorgia, Office of Treasury and Fiscal Services for the Georgia Fund 1 (Primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. Additional information on the Georgia Fund 1 is disclosed in the State ofGeorgia Comprehensive Annual Financial Report. This audit can be obtained from the Georgia Department of Audits and Accounts at http://www.audits.state.ga.us/intemet/searchRpts.html. 
The Primary Liquidity Portfolio consists ofGeorgia Fund 1 which is not registered with the SEC as an investment company but does 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. The pool is an AAAm rated investment pool by Standard and Poor's. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2008, was 40 days. 
The First American Money Market Funds consists of First American Treasury Obligation Fund which is not registered with the SEC as an investment company but does 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. The pool is an AAAm rated investment pool by Standard and Poor's. The weighted average maturity for First American Treasury Obligation Fund was approximately 7 days. 
Note 4: NON-MONETARY TRANSACTIONS 
The School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 2 - Inventories 
Note 5: CAPITAL ASSETS 
The following is a summary of changes in the Capital Assets during the fiscal year: 
 
- 21 - 
 
 DEKALB COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS 
JUNE 30, 2008 
 
EXHIBIT "H" 
 
Note 5: CAPITAL ASSETS 
 
Balances July 1, 2007 
 
Increases 
 
Decreases 
 
Balances June 30, 2008 
 
Governmental Activities Capital Assets, Not Being Depreciated: 
Land Construction in Progress 
 
$ 35,770,769.61 $ 6,439,059.43 $ 491,978.43 $ 41,717,850.61 
 
81,238,739.01 72,385,616.29 59,293,846.10 
 
94,330,509.20 
 
Total Capital Assets Not Being Depreciated $ 117,009,508.62 $ 78,824,675.72 $59,785,824.53 $ 136,048,359.81 
 
Capital Assets Being Depreciated Buildings and Improvements Equipment Land Improvements 
 
$1,086,534,275.93 $ 95,359,693.10 $13,558,039.33 $1,168,335,929.70 
 
81,350,044.00 13,832,874.69 
 
856,154.22 
 
94,326,764.47 
 
30,468,038.00 
 
30,468,038.00 
 
Less Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements 
 
315,586,305.58 35,881,009.18 
1,033,135.24 
 
14,971,838.29 5,752,916.79 
848,975.63 
 
6,844,261.94 653,734.93 
 
323,713,881.93 40,980,191.04 1,882,110.87 
 
Total Capital Assets, Being Depreciated, Net $ 845,851,907.93 $ 87,618,837.08 $ 6,916,196.68 $ 926,554,548.33 
 
Governmental Activity Capital Assets - Net $ 262,861 416 55 $166,443,512.SQ $ 66,1Q2,Q2 l.2 l $1,Q62,6Q2 2Q8 14 
 
Capital assets being acquired under capital leases as of June 30, 2008, are as follows: 
 
Governmental Funds 
 
Buildings and Improvements Equipment Less: Accumulated Depreciation 
 
$ 38,895,433.00 7,396,362.92 3,368,343.28 
 
$ 42,923,452.64 
 
Current year depreciation expense by function is as follows: 
 
Instruction Support Services 
Improvements of Instructional Services Educational Media Services Business Administration Maintenance and Operation of Plant Student Transportation Services Food Services 
 
$ 15,107,156.09 
 
$ 95,286.97 263,950.89 166,405.68 
1,046,290.16 2,979,143.09 
 
4,551,076.79 1,915,497.83 
 
$21,573,730.71 
 
- 22 - 
 
 DEKALB COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS 
JUNE 30, 2008 
 
EXHIBIT "H" 
 
Note 6: RESTRICTED ASSETS 
 
Special Purpose Local Option Sales Tax (SPLOST) and general obligation bond proceeds are restricted assets in the Statement of Net Assets because their use is limited by applicable bond covenants or statutory provisions. Restricted assets at June 30, 2008, were as follows: 
 
District-wide Capital Projects 
 
Bond 
 
SPLOST 
 
Proceeds 
 
Debt Service Funds 
 
Restricted Cash and Cash Equivalents: Debt Services Capital Acquisitions 
Restricted Investments: Capital Acquisitions Debt Services 
 
$ 
$45,795,796.42 $ 7,549,709.57 
$ 81,956,228.92 $300,554,553.70 $ 7,349,060.66 
 
64,639.34 
 
Note 7: INTERFUND TRANSFERS 
 
Interfund transfers for the year ended June 30, 2008, consisted of the following: 
 
Transfer to 
 
Transfers From 
 
District-wide 
 
General 
 
Capital 
 
Fund 
 
Projects 
 
Debt Service Fund All Others 
 
$ 9,925,611.73 $ 11,905,589.00 
 
Total 
 
$ 11,905,589.00 $ 9,925,611.73 
 
Transfers are used to (1) move Federal, State and miscellaneous revenues collected by the General Fund to the individual charter schools to fund their operations and to (2) move SPLOST revenue collected in Capital Projects to Debt Service to fund the bond interest payment. 
 
Note 8: RISK MANAGEMENT 
 
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; acts of God and unemployment compensation. 
 
- 23 - 
 
 DEKALB COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS 
JUNE 30, 2008 
 
EXHIBIT"H" 
 
Note 8: RISK MANAGEMENT 
 
The School District has obtained commercial insurance for risk ofloss associated with torts, assets and acts ofGod. The School District has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the School District's insurance coverage in any ofthe past three years. 
 
The School District participates in the Georgia School Boards Association Risk and Insurance Management System, a public entity risk pool organized on July 1, 1994, to develop and administer a plan to reduce risk of loss on account of general liability, motor vehicle liability, or property damage, including safety engineering and other loss prevention and control techniques, and to administer one or more groups of self-insurance funds, including the processing and defense of claims brought against members ofthe system. The School District pays an annual premium to the system for its general insurance coverage. Additional coverage is provided through agreements by the system with other companies according to their specialty for property, boiler and machinery (including coverage for flood and earthquake), general liability (including coverage for sexual harassment, molestation and abuse), errors and omissions, crime and automobile risks. Payment of excess insurance for the system varies by line of coverage. 
 
The School District has established a limited risk management program for workers' compensation claims. The School District accounts for claims within the same fund as the employee's salaries and benefits are paid. Expenses/Expenditures and liability are reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated. An excess coverage insurance policy covers individual claims in excess of$500,000.00 loss per occurrence, up to $10,000,000.00. 
 
Changes in the workers' compensation claims liability during the last two fiscal years are as follows: 
 
2007 2008 
 
Beginning ofYear Liability 
 
Claims and Changes in Estimates 
 
Claims Paid 
 
EndofYear Liability 
 
$ 
 
0.00 $ 3,217,336.13 $ 3,217,336.13 $ 
 
0.00 
 
$ 
 
0.00 $ 3,013,403.10 $ 3,013,403.10 $ 
 
0.00 
 
The School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the same fund that the employee's salaries and benefits are paid. Expenses/Expenditures and liability are reported when it is probably that a loss has occurred, and the amount of that loss can be reasonably estimated. 
 
Changes in the unemployment compensation claims liability during the last two fiscal years are as follows: 
 
-24- 
 
 DEKALB COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS 
JUNE 30, 2008 
 
EXHIBIT"H" 
 
Note 8: RISK MANAGEMENT 
 
Beginning ofYear Liability 
 
Claims and Changes in Estimates 
 
Claims Paid 
 
EndofYear Liability 
 
2007 2008 
 
$ 
 
0.00 $ 190.026.05 $ 190,026.05 $ 
 
0.00 
 
$ 
 
0.00 $ 242.740.89 $ 242,740.89 $ 
 
0.00 
 
The School District has purchased a surety bond to provide additional insurance coverage as follows: 
 
Position Covered 
 
Amount 
 
Superintendent 
 
$ 100,000.00 
 
Note 9: LONG-TERM DEBT 
 
CAPITAL LEASES The DeKalb County Board of Education entered into an agreement dated September 1, 2005, with the Georgia School Board Association for the purchase of land, buildings and all furnishings and subsequent lease of two new elementary school facilities. Under the terms of the agreement, the School District will make annual payments through December 1, 2026. 
 
The DeKalb County Board of Education also entered into various lease agreements as lessee for vehicles, solid waste system, copiers and laptops. These lease agreements qualify as capital leases for accounting purposes, and, therefore, have been recorded at the present value of the future minimum lease payments as ofthe date oftheir inception. 
 
COMPENSATED ABSENCES Compensated absences represent obligations ofthe School District relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. Typically, the General Fund is the fund used to liquidate this long-term debt. The School District uses the vesting method to compute compensated absences. 
 
Changes in the compensated absences liability for the last three fiscal years are as follows: 
 
Beginning Liability 
 
Current Year Current Year 
 
Increase 
 
Decrease 
 
Ending Liability 
 
2006 2007 2008 
 
$ 12,297.754.00 $ 6,197,452.00 $ 5,161,765.00 $ 13,333,441.00 $ 13,333,441.00 $ 7,353,353.00 $ 8,982,928.00 $ 11,703,866.00 $ 11,703,866.00 $ 7,703,361.75 $ 7,135,276.28 $ 12,271,951.47 
 
-25 - 
 
 DEKALB COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS 
JUNE 30, 2008 
 
EXHIBIT"H" 
 
Note 9: LONG-TERM DEBT 
 
GENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: 
 
Purpose 
 
Interest Rates 
 
Amount 
 
General Government - Series 2007 
 
4.00% - 5.00% $300.000.000.00 
 
The changes in Long-Term Debt during the fiscal year ended June 30, 2008, were as follows: 
 
Balance July l, 2007 
 
Governmental Funds 
 
Additions 
 
Deductions 
 
Balance June 30, 2008 
 
Due Within One Year 
 
G.0.Bonds 
 
$300,000,000.00 
 
$300,000,000.00 $ 
 
0.00 
 
Capital Leases 
 
2,467,149.54 $39,894,381.14 $ 2,323,040.68 40,038,490.00 3,119,527.33 
 
Compensated Absences 
 
11,703,866.00 7,703,361.75 7,135,276.28 12,271,951.47 6,000,000.00 
 
Bond Premiums Amortized 13,292,341.20 - - - - 2,215,390.20 11,076,951.00 2,215,390.20 
 
$327 463.356.74 $ 47.597.742.89 $11.673.707.16 $363.387.392.47 $ 11.334.917.53 
 
At June 30, 2008, payments due by fiscal year which includes principal and interest for these items are as follows: 
 
Fiscal Year Ended June 30 
 
Capital Leases 
 
Principal 
 
Interest 
 
2009 2010 2011 2012 2013 2014 - 2018 2019 - 2023 2024- 2028 
 
$ 3,119,527.33 $ 1,730,301.73 
 
2,629,606.68 1,575,472.58 
 
2,269,355.99 1,463,363.90 
 
1,435,000.00 1,380,031.00 
 
1,505,000.00 1,306,531.00 
 
8,510,000.00 5,560,812.00 
 
10,400,000.00 3,623,830.00 
 
10,170,000.00 
 
976,091.00 
 
Total Principal and Interest 
 
$ 40,038,490.00 $ 17,616,433.21 
 
Fiscal Year Ended June 30 
 
General Obligation 
 
Debt 
 
Principal 
 
Interest 
 
Unamortized Bond 
Premium 
 
2009 2010 2011 2012 2013 
 
$ 14,827,400.00 $ 2,215,390.20 $ 80,000,000.00 14,827,400.00 2,215,390.20 
85,000,000.00 10,840,900.00 2,215,390.20 85,000,000.00 6,633,650.00 2,215,390.20 50,000,000.00 2,439,750.00 2,215,390.20 
 
Total Principal and Interest 
 
$300.000.000,00 $49,569,100.00 $ 11,076,951.00 
 
-26- 
 
 DEKALB COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS 
JUNE 30, 2008 
 
EXHIBIT "H" 
 
Note 10: PRIOR YEAR DEFEASEMENT OF DEBT 
In fiscal year 2003, the School District defeased certain general obligation bonds by placing the proceeds ofnew bonds in an irrevocable trust to provide for all future debt service payments on the old bonds. Accordingly, the trust account assets and the liability for the defeased bonds are not included in the School District's basic financial statements. At June 30, 2008, $12,705,000.00 of bonds are outstanding and are considered defeased. 
Note 11: ON-BEHALF PAYMENTS 
The School District has recognized revenues and costs in the amount of$20,475,306.l 7 for health insurance and retirement contributions paid on the School District's behalf by the following State Agencies. 
Georgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance ofNon-Certified Personnel In the amount of $19,581,781.68 
Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $804,169.49 
Office of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of $89,355.00 
Note 12: SPECIAL ITEMS 
During fiscal year 2008, the School System demolished two school buildings and disposed ofseveral pieces ofCapital Assets. A net loss of$7,393,081.06 was realized from the building and disposal as a special item on the Statement of Activities. 
Note 13: SIGNIFICANT COMMITMENTS 
The following is an analysis ofsignificant outstanding construction or renovation contracts executed by the School District as of June 30, 2008, together with funding available: 
 
- 27 - 
 
 DEKALB COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS 
JUNE 30, 2008 
 
EXHIBIT "H" 
 
Note 13: SIGNIFICANT COMMITMENTS 
 
Project 
 
Unearned Executed Contracts 
 
Funding Available From State 
 
Arabia Mountain High School 
 
$ 2,534,073.14 
 
Avondale Elementary School Renovation 
 
524,430.21 
 
Avondale Elementary School Renovation 
 
17,001.60 
 
Avondale High School HVAC 
 
1,246,729.36 
 
Briar Vista Renovation HVAC 
 
45,832.00 
 
Capital Improvements Team 
 
22,917.00 
 
Cedar Grove High School HVAC 
 
77,500.00 
 
Champion Middle School Roof 
 
19,950.00 
 
Clarkston High School Renovation 
 
357,709.88 
 
Clifton Elementary Renovations 
 
59,325.00 
 
Columbia High School 
 
5,150,119.93 
 
Columbia High School Auditorium 
 
7,304.54 
 
Columbia High School HVAC, Ceiling and Lighting 42,087.00 
 
Cross Keys High School 
 
603,595.70 
 
Cross Keys High School Renovation 
 
24,805.56 
 
DeKalb.School ofthe Arts Relocation 
 
406,500.00 
 
Druid Hills High School Renovation 
 
837,775.00 
 
Dunair Elementary School - HVAC 
 
98,956.99 
 
Dunwoody High School Renovations 
 
878,150.00 
 
Jolly Elementary School Renovation - HVAC 
 
302,360.92 
 
Kingsley Elementary 
 
48,672.85 
 
Lakeside Renovations HVAC 
 
21,323.14 
 
Margaret Harris Elementary School 
 
298,000.00 
 
McLendon Elementary 
 
11,332.25 
 
Mountain Industrial Center 
 
17,604,539.63 
 
New Peachtree Middle School 
 
230,534.00 
 
Redan Elementary School Renovation 
 
203,250.00 
 
Redan High School Renovations 
 
310,119.00 
 
Security - All Schools 
 
36,820.12 
 
Sequoyah Middle School HVAC and Lighting 
 
71,158.84 
 
Sequoyah Middle School Roof 
 
21,644.00 
 
Shamrock Middle School 
 
1,137,360.00 
 
Snapfinger Elementary School HVAC 
 
89,742.00 
 
Southwest DeKalb High School Renovations 
 
1,223,134.00 
 
Stone Mountain High School HVAC 
 
54,241.00 
 
Tower Media Center Renovations 
 
154,960.00 
 
Tucker High School Replacement 
 
49,609,357.15 
 
Woodward Elementary School HVAC Replacement 34,125.00 
 
$ 1,231,989.80 907,904.00 733,488.00 
 
$ 84,417,436.81 $ 2,873,381.80 
 
- 28 - 
 
 DEKALB COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS 
JUNE 30, 2008 
 
EXHIBIT"H" 
 
Note 13: SIGNIFICANT COMMITMENTS 
The amounts described in this note are not reflected in the basic financial statements. 
Note 14: SIGNIFICANT CONTINGENT LIABILITIES 
ARBITRAGE REBATE TAX The Federal Tax Reform Act of 1986 requires issuers of tax-exempt debt to make payments to the United States Treasury oflnvestment Income received at yields that exceed the issuer's tax-exempt borrowing rates. The U. S. Treasury requires payment every five years. The estimated future liability of $3,559,864.05 at June 30, 2008, is based on tax exempt debt subject to the Tax Reform Act. The estimated liability will be updated annually for any tax-exempt issuances or changes in yields through 2012, at which time payment ofthe final calculated liability for the five-year period is required to be remitted. 
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. The School District believes that such disallowances, if any, will be immaterial to its overall financial position. 
The School District (DCSD) is a defendant in a lawsuit filed by Heery International, Inc., E.R. Mitchell & Co., and Heery/Mitchell, A Joint Venture in DeKalb County Superior Court on February 20, 2007. Heery/Mitchell alleges that DCSD breached its contract with Heery/Mitchell for construction program management services when DCSD terminated the Agreement and failed to remit payment to Heery/Mitchell for three outstanding pay applications. Heery/Mitchell claims that it has incurred over $1 million in lost profits and other consequential damages as a result ofDCSD's alleged breach. Heery/Mitchell also seeks to recover litigation expense, including attorney's fees, from DCSD, pursuant to O.C.G.A. 13-6-11. DCSD is contesting the case vigorously. 
On March 23, 2007, DCSD filed an Answer and Counterclaims in response to Heery/Mitchell's Complaint. In addition to answering Heery/Mitchell's Allegations, DCSD filed counterclaims against Heery/Mitchell for (1) fraud, (2) breach of fiduciary duty, and (3) breach of contract. In addition, DCSD alleges that Heery/Mitchell failed to satisfy a number of their contractual obligations relating to, among other things, record maintenance and retention, project supervision and coordination, and reporting to DCSD. 
Although both the results and cost of litigation are uncertain, DCSD strongly believes that Heery/Mitchell's claims are totally without merit and will be ultimately dismissed. On the other hand, DCSD believes, based on the available evidence, that its Counterclaims against Heery/Mitchell are strong and that the DCSD will achieve a substantial recovery against Heery/Mitchell. 
The School District believes the likelihood ofa material adverse outcome is remote. Accordingly, adjustments, ifany that might result from the resolution ofthis matter have not been reflected in the basic financial statements. 
 
-29 - 
 
 DEKALB COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS 
JUNE 30, 2008 
 
EXHIBIT "H" 
 
Note 14: SIGNIFICANT CONTINGENT LIABILITIES 
The Academy ofLithonia, Inc. (the "Academy") recently settled litigation with the State ofGeorgia regarding the expiration ofits operating charter. The State ofGeorgia had previously taken action to terminate the Academy's charter effective July 31, 2005. During 2005 - 2006, the Academy did not receive state funding. The Academy's 2005 - 2006 operations were funded primarily by contribution revenues of $1,415,000.00 received from the Academy of America, a Michigan nonprofit corporation whose officers are also stockholders ofCharter School Administration Services, Inc., the management agent for the Academy. The contributions were made as a contingent loan based upon the future receipt ofretroactive state aid. Pursuant to an agreement with the Academy ofAmerica, if no state aid is received, all amounts owed will be forgiven. 
In the current fiscal year, the Academy was awarded retroactive state aid of $437,308.00 for the 2005 -2006 school year. Accordingly, a payable to the Academy of America, equal to the amount of state aid~ has been recorded. The Academy does not expect to receive any additional state revenue related to the lawsuit; however, to the extent additional funds are received, a repayment of $977,692.00 would be made to the Academy of America. 
Note 15: RELATED PARTY TRANSACTION 
The School District employed the services of Vincent Pope and Associates, Inc. for various construction projects. This company is owned and operated by Vincent Pope, the husband of Patricia Pope, who is currently the ChiefOperations Officer (COO) for the DeKalb County Board of Education. While some of these services were secured by a bid procedure, all were not. Additionally, the contracts were signed prior to Ms. Pope becoming the School District's COO. Current year expenditures to Vincent Pope and Associates, Inc. totaled $528,361.37. 
Note 16: POSTEMPLOYMENTBENEFITS 
Georgia Retiree Health Benefit Fund 
Plan Description. The School District contributes to the Georgia Retiree Health Benefit Fund ("GRHBF"), a cost-sharing multiple-employer defined benefit postemployment healthcare plan administered by the Department ofCommunity Health. GRHBF provides health insurance benefits to eligible retirees and their qualified beneficiaries. Pursuant to Title 45, Chapter 18 ofthe Official Code ofGeorgia Annotated, the authority to establish and amend the benefit provisions ofthe plan is assigned to the Board of Community Health. The Department of Community Health issues a publicly available financial report that includes financial statements and required supplementary information for GRHBF. That report may be obtained from the Department ofCommunity Health at 2 Peachtree Street, Atlanta, Georgia 30303. 
Funding Policy. The contribution requirements of plan members and participating employers are established and may be amended by the Board of Community Health. Contributions of plan members or beneficiaries receiving benefits vary based on plan election, dependent coverage, and Medicare eligibility and election. On average, plan members pay approximately twenty-five percent (25%) of the cost of health insurance coverage. 
- 30 - 
 
 DEKALB COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS 
JUNE 30, 2008 
 
EXHIBIT "H" 
 
Note 16: POSTEMPLOYMENT BENEFITS 
 
Participating employers are statutorily required to contribute in accordance with the employer contribution rate established by the Board of Community Health. This contribution rate is established to fund both the active and retired employee health insurance plans based on projected pay-as-you-go financing requirements. The employer contribution rates for the combined active and retiree plans for the fiscal year ended June 30, 2008, were as follows: 
 
Teachers Non-Certificated Employees 
 
18.534% of state-based salaries $162.72 per month 
 
The School District's contribution to the health insurance plans for the fiscal year ended June 30, 2008, was $84,954,375.41, which equaled the required contribution. 
 
Note 17: RETIREMENT PLANS 
 
TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) 
 
TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia {TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. 
 
TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School District who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 9.28% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: 
 
Fiscal Year 
 
Percentage Contributed 
 
Required Contribution 
 
2008 2007 2006 
 
100% 100% 100% 
 
$ 57,653,823.38 $ 55,503,701.12 $ 51,922,344.00 
 
- 31 - 
 
 (This page left intentionally blank) 
 
 DEKALB COUNTY BOARD OF EDUCATION GENERAL FUND 
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL 
YEAR ENDED JUNE 30, 2008 
 
SCHEDULE "1" 
 
REVENUES 
Property Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous 
Total Revenues 
EXPENDITURES 
Current Instruction Support Services 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 Other Support Services Enterprise Operations Food Services Operation 
Capital OuUay Debt Services 
Total Expenditures 
Excess of Revenues over (under) Expenditures 
OTHER FINANCING SOURCES {USES} 
Other Sources Other Uses 
Total Other Financing Sources (Uses) 
Net Change in Fund Balances 
Fund Balances - Beginning 
 
NONAPPROPRIATED BUDGETS 
 
ORIGINAL(1l 
 
FINAL (1l 
 
ACTUAL AMOUNTS 
 
$ 453,533, 198.00 $ 17,500,000.00 
409,852,485.00 88,895,197.00 10,580,100.00 4,545,000.00 11,362, 181.00 
 
453,533, 198.00 $ 17,500,000.00 
406,753,782.00 102,355, 153.00 
11, 120,995.00 4,521,000.00 12,482,893.00 
 
471,265,106.00 16,429,275.01 
432,460,674.72 92,192,621.32 19,845,837.66 7,133,244.07 7,773,958.01 
 
$ 996,268, 161.00 $ 1,008,267,021.00 $ 1,047,100,716.79 
 
$ 610,166,159.00 $ 
 
620,956,612.00 $ 
 
626,231,882.57 
 
35,694,622.00 62,101,382.00 19,934,262.00 
6,120,314.00 65,516,493.00 
8,127,835.00 80,104,421.00 44,959, 132.00 14,077,455.00 
1,280,000.00 43,451,540.00 
 
37,542,191.00 69,485,546.00 19,949,526.00 
6,370,072.00 65,716,813.00 
8,066,937.00 81,318,233.00 48,214,694.00 14,473,642.00 
266,300.00 1,315,000.00 44,540,436.00 
 
38,086,073.76 56,882,915.98 19,727,512.01 18,086,675.54 67,766,211.75 9,518,287.77 84,252,625.19 48,917,438.02 19,159,127.18 
257,336.93 2,666,916.53 47,186,993.06 
11,045.79 2,656,585.59 
 
$ 991,533,615.00 $ 1,018,216,002.00 $ 1,041,407,627.67 
 
$ 
 
4,734,546.00 $ 
 
-9,948,981.00 $ 
 
5,693,089.12 
 
$ 
 
2,052,272.00 $ 
 
-2,052,272.00 
 
$ 
 
0.00 $ 
 
$ 4,734,546.00 $ 
 
27,776,140.00 
 
2,052,272.00 $ -2,052,272.00 
0.00 $ -9,948,981.00 $ 
17,965,307.61 
 
3,871,991.19 -11,905,589.00 
-8,033,597.81 -2,340,508.69 
19,354,147.37 
 
Fund Balances - Ending 
 
$ 32,510,686.00 $ 
 
8,016,326.61 $ 
 
17,013,638.68 
 
Notes to the Schedule of Revenues, Ex11enditures and Changes in Fund Balance Budget and Actual 
(1) Original and Final Budget amounts do not include budgeted revenues or expenditures of the various principal accounts. 
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. 
 
-33- 
 
 DEKALB COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET 
NONMAJOR GOVERNMENTAL FUNDS - CHARTER SCHOOLS YEAR ENDED JUNE 30, 2008 
 
ASSETS Cash and Cash Equivalents Investments Accounts Receivable 
Other Prepaid Items Other Current Assets 
Total Assets 
LIABILITIES AND FUND BALANCES LIABILITIES 
Accounts Payable Salaries and Benefits Payable 
Total Liabilities FUND BALANCES 
Unreserved Undesignated Reported in: Nonmajor Governmental Funds 
Total Liabilities and Fund Balances 
 
Academy of Lithonia 
 
DeKalb Academy of Technology and the Environment 
 
$ 
 
479,515.00 $ 
 
446,267.00 11,770.00 
 
178,814.00 
6,639.00 922.00 
10,162.00 
 
$ 
 
937,552.00 $ ====1=96=,5=3=7.=0=0 
 
$ 1,386,824.00 $ $ 1,386,824.00 $ 
 
296,830.00 296,830.00 
 
-449,272.00 
 
-100,293.00 
 
$ 
 
937,552.00 $ ====1=9s_,s=3=1=.o=o 
 
See notes to the basic financial statements. 
 
- 34- 
 
 SCHEDULE "2" 
 
Special Revenue Funds 
 
DeKalb PATH Academy 
 
Destiny Academy of Excellence 
 
International Community 
School 
 
Total 
 
$ 395,793.00 $ 294,453.00 
880.00 11,730.00 
 
86,109.00 $ 669,776.00 $ 
 
62,660.00 
 
46,930.00 1,663.00 
 
1,810,007.00 294,453.00 
563,376.00 26,085.00 10,162.00 
 
$ 702,856.00 $ 
 
148,769.00 $ 718,369.00 $ ===2,=70=4=,0=8=3.=00= 
 
$ 258,936.00 
 
$ 
 
- - - - - $ _ _....;:5:..i.;,3=2=0.=0..;..0 
 
$ 258,936.00 $ 
 
5,320.00 $ 
 
103,754.00 $ 103,754.00 $ 
 
2,046,344.00 5,320.00 
2,051,664.00 
 
443,920.00 
 
143,449.00 
 
614,615.00 
 
652,419.00 
 
$ 702,856.00 $ 
 
148,769.00 $ 118,369.oo $ ===2,=1=04=,o=8=3=.o=o 
 
- 35- 
 
 DEKALB COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 
NONMAJOR GOVERNMENTAL FUNDS - CHARTER SCHOOLS YEAR ENDED JUNE 30, 2008 
 
REVENUES 
State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous 
Total Revenues 
EXPENDITURES 
Current Instruction Support Services Pupil Services General Administration School Administration Business Administration Maintenance and Operation of Plant Other Support Services Capital Outlay 
Debt Services Principal 
Total Expenditures 
Excess of Revenues over {under) Expenditures 
OTHER FINANCING SOURCES (USES} 
Capital Leases Transfers In 
Total Other Financing Sources {Uses) 
Net Change in Fund Balances 
Fund Balances - Beginning 
Fund Balances - Ending 
 
Academy of Lithonia 
 
DeKalb Academy of Technology and the Environment 
 
$ $ 443,584.00 $ 443,584.00 $ 
 
74,895.00 32,254.00 107,149.00 
 
$ 2,296,792.00 $ 1,588,700.00 
 
67,433.00 327,801.00 328,733.00 236,800.00 759,414.00 
 
282,458.00 162,821.00 
 
10,005.00 
 
3,026.00 
 
$ 4,026,978.00 $ 2,037,005.00 
 
$ -3,583,394.00 $ -1,929,856.00 
 
$ $ 3,586,394.00 
 
$ 3,586,394.00 $ 
 
$ 
 
3,000.00 $ 
 
-452,272.00 
 
37,484.00 1,920,369.00 1,957,853.00 
27,997.00 
-128,290.00 
 
$ -449,272.00 $===10=0"=,2=9=3.,.,00= 
 
See notes to the basic financial statements. 
 
- 36 - 
 
 SCHEDULE "3" 
 
Special Revenue Funds 
 
DeKalb PATH Academy 
 
Destiny Academy of Excellence 
 
International Community 
School 
 
Total 
 
$ 60,000.00 $ 20,000.00 $ 
 
5,875.00 $ 
 
85,875.00 
 
60,366.00 
 
60,366.00 
 
170,979.00 
 
225,625.00 
 
471,499.00 
 
10,921.00 
 
571.00 
 
11,492.00 
 
51,605.00 
 
157,794.00 
 
882,033.00 
 
1,567,270.00 
 
$ 353,871.00 $ 177,794.00 $ 1,114,104.00 $ 2,196,502.00 
 
$ 1,900,596.00 $ 832,544.00 $ 3,312,251.00 $ 9,930,883.00 
 
596,359.00 
 
247,522.00 
 
3,925.00 
 
545,346.00 155,224.00 
 
67,433.00 1,999,486.00 
328,733.00 236,800.00 922,235.00 159,149.00 
10,005.00 
 
30,000.00 
 
33,026.00 
 
$ 2,500,880.00 $ 1,080,066.00 $ 4,042,821.00 $ 13,687,750.00 
 
$ -2, 147,009.00 $ -902,272.00 $ -2,928, 717.00 $ -11,491,248.00 
 
$ 
 
37,484.00 
 
$ 2,127,380.00 $ 943,061.00 $ 3,328,385.00 11,905,589.00 
 
$ 2,127,380.00 $ 943,061.00 $ 3,328,385.00 $ 11,943,073.00 
 
$ -19,629.00 $ 40,789.00 $ 399,668.00 $ 451,825.00 
 
463,549.00 
 
102,660.00 
 
214,947.00 
 
200,594.00 
 
$ 443,920.00 $ 143,449.00 $ 614,615.00 $ 652,419.00 
 
- 37 - 
 
 DEKALB COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 
YEAR ENDED JUNE 30, 2008 
 
SCHEDULE "4" 
 
FUNDING AGENCY PROGRAM/GRANT 
Agriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program 
Total Child Nutrition Cluster 
Other Programs Pass-Through From Georgia Department of Education Food Donation (1) Pass-Through From Bright From the Start: Georgia Department of Early Care and Learning Child and Adult Care Food Program 
Total U. S. Department of Agriculture 
Corporation for National and Community Service Pass-Through From Georgia Department of Education Learn and Serve America School and Community Based Programs 
Education, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Preschool Grants 
Total Special Education Cluster 
Other Programs Direct Fund for the Improvement of Education Transition to Teaching Pass-Through From Georgia Department of Education Career and Technical Education - Basic Grants to States Charter Schools Education for Homeless Children and Youth English Language Acquisition Grants Enhancing Education Through Technology Program Hurricane Education Recovery Act Improving Teacher Quality State Grants Mathematics and Science Partnerships Reading First State Grants Safe and Drug-Free Schools and Communities - State Grants Special Education State Personnel Development State Grants for Innovative Programs Title I Grants to Local Educational Agencies Twenty-First Century Community Leaming Centers Pass-Through From Georgia Department of Human Resources Safe and Drug-Free Schools and Communities - State Grants 
 
CFDA NUMBER 
 
PASSTHROUGH 
ENTITY ID 
NUMBER 
 
EXPENDITURES IN PERIOD 
 
* 10.553 * 10.555 
 
NIA 
 
(2) 
 
N/A $ 41,596,182.66 
 
$ 41,596, 182.66 
 
10.550 10.558 
 
NIA 
 
2,657,413.56 
 
N/A 
 
283,272.86 
 
$ 44,536,869.08 
 
94.004 
 
NIA $ 
 
14,993.26 
 
* 84.027 * 84.173 
 
NIA $ 15,974,143.34 
 
N/A 
 
423,179.16 
 
$ 16,397,322.50 
 
84.215 84.350 
 
84.048 
 
NIA 
 
84.282 
 
NIA 
 
84.196 
 
NIA 
 
84.365 
 
NIA 
 
84.318 
 
N/A 
 
84.938 
 
NIA 
 
84.367 
 
NIA 
 
84.366 
 
NIA 
 
* 84.357 
 
NIA 
 
84.186 
 
NIA 
 
84.323 
 
N/A 
 
84.298 
 
NIA 
 
* 84.010 
 
NIA 
 
84.287 
 
NIA 
 
84.186 
 
NIA 
 
1,356,122.39 328,936.27 
1,057,892.49 115,200.00 75,000.00 
1,191,272.00 122,376.23 (3) 
5,154,984.00 355,914.00 
1,052,237.32 538,362.36 
43,180.73 137,789.50 27,300,455.22 554,515.00 
88,941.94 
 
- 38- 
 
 DEKALB COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 
YEAR ENDED JUNE 30, 2008 
 
SCHEDULE "4" 
 
FUNDING AGENCY PROGRAM/GRANT 
Education, U.S. Department of Other Programs Pass-Through From Georgia State University Teacher Quality Enhancement Grants 
Total U.S. Department of Education 
National Aeronautics and Space Administration Direct Aerospace Education Services Program 
Health and Human Services, U. S. Department of Pass-Through From Georgia Department of Human Resources Refugee and Entrant Assistance - Discretionary Grants 
Justice, U. S. Department of Direct Edward Byrne Memorial Justice Assistance Grant Program 
Defense, U. S. Department of Direct Department of the Air Force R.O.T.C. Program Department of the Army R.O.T.C. Program Department of the Navy R.O.T.C. Program 
Total U.S. Department of Defense 
 
CFDA NUMBER 
 
PASSTHROUGH 
ENTITY ID 
NUMBER 
 
EXPENDITURES IN PERIOD 
 
84.336 
 
NIA $ 55,942,511.15 
 
43.001 
 
93.576 
 
NIA $ ---=2.;_79"-'4-'-'7'-'-7-'--7'. ~6 
 
16.738 
 
$ ----"-'88"-l.19=2=6=.2=-3 
 
$ 
 
622,155.04 
 
100,327.63 
 
895,972.33 
 
$ 1,618,455.00 
 
Total Federal Financial Assistance 
 
$ 102,554,529.48 
 
NIA = Not Available 
 
Notes to the Schedule of Expenditures of Federal Awards 
 
(1) The amount shown for the Food Donation Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the School District during the current fiscal year. 
(2) Expenditures for the funds earned on the School Breakfast Program ($6,742,031.37) were not maintained separately and are included in the 2008 National School Lunch Program. 
(3) Funds earned on the Hurricane Education Recovery Act, in the amount of $1,870.00, do not require reporting of expenditures. 
 
Major Programs are identified by an asterisk (*) in front of the CFDA number. 
 
The accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the DeKalb County Board of Education and 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. 
 
- 39 - 
 
 DEKALB COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2008 
 
SCHEDULE "5" 
 
AGENCY/FUNDING 
 
GOVERNMENTAL FUND TYPES 
 
CAPITAL 
 
GENERAL 
 
PROJECTS 
 
NONMAJOR 
 
FUND 
 
FUND 
 
FUND 
 
TOTAL 
 
GRANTS Bright From the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program 
 
$ 8,965,081.12 
 
$ 8,965,081.12 
 
Community Affairs, Georgia Department of Local Assistance Grants 
 
97,500.00 
 
97,500.00 
 
Education, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades - Early Intervention (4-5) Program Middle Grades (6-8) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category I Category II Category Ill Category IV CategoryV Gifted Student - Category VI Remedial Education Program Altemative Education Program English Speakers of Other Languages (ESOL) Media Center Program 20 Days Additional Instruction Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Categorical Grants Pupil Transportation Regular Bus Replacement Nursing Services Food Services Vocational Education Vocational Supervisor Mid-term Adjustment Hold-Harmless Amended Formula Adjustment Other State Programs Charter Schools Charter Schools - Facilities Grant Elementary Foreign Languages Graduation Coaches Health Insurance Middle School Summer Remedial Program National Teacher Certification Preschool Handicapped Program Residential and Reintegration Services Residential Treatment Centers Grants Rule 10 Special Education Grant Severely Emotionally Disturbed Teachers' Retirement Virtual Schools State Grant Vocational Construction Related Equipment - State Bonds 
 
27,751,037.00 2, 190,620.00 
66,211,770.00 6,719,321.00 
30,161,341.00 4,207,492.00 1,601,787.00 48,561,273.00 51,589,648.00 11,206,935.00 
6,959,107.00 6,977,099.00 26,220,954.00 6,411,801.00 
892,899.00 15,956,604.00 
557,966.00 4,227,303.00 7,975,251.00 9,261,645.00 2,834,580.00 1,755,291.00 
7,636,005.00 18,619,200.00 22,844,040.00 
5,218,139.00 965,773.00 
1,621,461.00 2,342,880.00 
591,396.96 69,307.00 
2,606,409.00 -8,528,404.00 
260,000.00 
63,028.20 2,387,432.00 19,581,781.68 
105,992.00 460,817.00 1,754,469.52 
28,463.89 21,409.00 14,072.49 3,248,688.26 804,169.49 4,000.00 129,320.14 
 
27,751,037.00 2,190,620.00 
66,211,770.00 6,719,321.00 
30,161,341.00 4,207,492.00 1,601,787.00 48,561,273.00 51,589,648.00 11,206,935.00 
6,959,107.00 6,977,099.00 26,220,954.00 6,411,801.00 
892,899.00 15,956,604.00 
557,966.00 4,227,303.00 7,975,251.00 9,261,645.00 2,834,580.00 1,755,291.00 
7,636,005.00 18,619,200.00 22,844,040.00 
 
$ 80,000.00 
 
5,218,139.00 965,773.00 
1,621,461.00 2,342,880.00 
591,396.96 69,307.00 2,606,409.00 -8,528,404.00 
260,000.00 80,000.00 63,028.20 
2,387,432.00 19,581,781.68 
105,992.00 460,817.00 1,754,469.52 
28,463.89 21,409.00 14,072.49 3,248,688.26 804,169.49 4,000.00 129,320.14 
 
-40- 
 
 DEKALB COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2008 
 
SCHEDULE "5" 
 
AGENCY/FUNDING 
 
GOVERNMENTAL FUND TYPES 
 
CAPITAL 
 
GENERAL 
 
PROJECTS 
 
NONMAJOR 
 
FUND 
 
FUND 
 
FUND 
 
TOTAL 
 
GRANTS Georgia State Financing and Investment Commission Reimbursement on Construction Projects 
 
$ 16,797,234.10 
 
$ 16,797,234.10 
 
Human Resources, Georgia Department of After School Grant 
 
$ 5,875.00 
 
5,875.00 
 
Governor's Office for Children and Families Children and Youth Coordination Council Empowered Youth Excel 
 
$ 
 
22,722.23 
 
22,722.23 
 
Governor's Office of Highway Safety Georgia Department of Highway Safety Students Against Drunk Driving 
 
15,655.74 
 
15,655.74 
 
Office of Planning and Budget Georgia Council for the Arts Georgia Challenge Program 
 
30,000.00 
 
30,000.00 
 
Office of Treasury and Fiscal Services Public School Employees Retirement 
 
89,355.00 
 
89,355.00 
 
CONTRACTS Education, Georgia Department of Georgia Elementary School Foreign Language Model Program Second Step 
 
153,000.00 5,786.00 
 
153,000.00 5,786.00 
 
$ 432,460,674.72 $ 16,797,234.10 $ 851875.00 $ 44913431783.82 
 
See notes to the basic financial statements. 
 
-41 - 
 
 DEKALB COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS 
YEAR ENDED JUNE 30, 2008 
 
SCHEDULE "6" 
 
PROJECT 
 
ORIGINAL ESTIMATED 
COST (1) 
 
CURRENT ESTIMATED COSTS (2) 
 
AMOUNT EXPENDED IN CURRENT 
YEAR (3) 
 
AMOUNT EXPENDED 
IN PRIOR YEARS (3) 
 
PROJECT STATUS 
 
Property acquisition, construction 
 
and equipping a minimum of eight (8) 
 
new schools and two (2) new 
 
centers; renovations, modifications, 
 
additions and equipment for existing 
 
schools; acquisition and installation 
 
of information systems hardware and 
 
infrastructure at all schools and 
 
selected other facilities; purchase of 
 
both new school buses and school 
 
buses currently under lease. 
 
$ 524,404,330.00 $ 611,134,108.00 $ 59,296,695.49 $ 420,337,030.00 Ongoing 
 
Property acquisition, renovations and expansion, construction and equipping, roofing, site improvements of new and existing schools; acquisition of buses, technology-media center upgrades, HVAC systems, roofing, school improvement projects throughout the School District, technology additions, renovations and upgrades, transportation improvements and site acquisition; paying capitalized interest on General Obligation Bonds. 
 
609,460,500.00 
 
609,460,500.00 27,668,034.65 
 
2,291,750.22 Ongoing 
 
$ 1,133,864,830.00 $ 1,220,594,608.00 $ 86,964,730.14 $ 422,628,780.22 
 
(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. 
 
See notes to the basic financial statements. 
 
-42- 
 
 DEKALB COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM (QBE) 
ALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30, 2008 
 
SCHEDULE "7" 
 
DESCRIPTION 
 
ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (12{2) 
 
ELIGIBLE QBE PROGRAM COSTS 
 
SALARIES 
 
OPERATIONS 
 
TOTAL 
 
Direct Instructional Programs 
 
Kindergarten Program 
 
$ 
 
Kindergarten Program-Early Intervention Program 
 
Primary Grades (1-3) Program 
 
Primary Grades-Early Intervention (1-3) Program 
 
Upper Elementary Grades (4-5) Program 
 
Upper Elementary Grades-Early Intervention (4-5) 
 
Program 
 
Middle Grades (6-8) Program 
 
Middle School (6-8) Program 
 
High School General Education (9-12) Program 
 
Vocational Laboratory (9-12) Program 
 
Students with Disabilities 
 
Category I 
 
Category II 
 
Category Ill 
 
Category IV 
 
CategoryV 
 
Gifted Student - Category VI 
 
Remedial Education Program 
 
Alternative Education Program 
 
English Speakers of Other Languages (ESOL) 
 
35,527,090.00 $ 
2,833,529.00 84,205,655.00 
8,701,638.00 38,450,635.00 
 
34,080,484.32 $ 
320,885.91 75,330,048.67 
7,946,083.43 39,382,185.95 
 
790,357.72 $ 
1,735,157.41 
 
34,870,842.04 320,885.91 
77,065,206.08 7,946,083.43 
39,382,185.95 
 
5,468,371.00 2,074,143.00 62,360,221.00 65,913,233.00 14,275,593.00 60,629,625.00 
20,304,955.00 817,502.00 
5,408,628.00 10,023,709.00 
 
434,143.58 29,961,474.27 65,130,682.31 75,448,882.55 10,955,420.63 
40,823,470.98 5,368,661.29 
22,564,926.32 4,143,114.95 240,922.95 9,956,073.58 3,533,888.74 1,648,291.26 9,934,729.42 
 
110,610.16 709,033.27 2,213,912.85 2,065,608.36 
2,057,652.87 35,202.55 81,485.05 79,488.92 67,040.41 9,306.95 
41,958.12 
 
434,143.58 30,072,084.43 65,839,715.58 77,662,795.40 13,021,028.99 
42,881,123.85 5,403,863.84 
22,646,411.37 4,222,603.87 307,963.36 9,965,380.53 3,533,888.74 1,690,249.38 9,934,729.42 
 
TOTAL DIRECT INSTRUCTIONAL PROGRAMS 
 
$ 416,994,527.00 $ 437,204,371.11 $ 9,996,814.84 $ 447,201,185.75 
 
Media Center Program Staff and Professional Development 
 
11,842,668.00 2,262,641.00 
 
16,204,394.04 170,664.62 
 
2,684,537.26 602,108.29 
 
18,888,931.30 772,772.91 
 
TOTAL QBE FORMULA FUNDS 
 
$ 431,099,836.00 $ 453,579,429.77 $ 13.283.460.19 $ 466,862,889.96 
 
(1) Comprised of State Funds plus Local Five Mill Share. (2) Allotments do not include the impact of the State amended formula adjustment. 
 
See notes to the basic financial statements. 
 
-43- 
 
 SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS 
 
 Russell W. Hinton 
STATE AUDITOR 
(404) 656-2174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 
September 14, 2009 
 
Honorable Sonny Perdue, Governor Members of the General Assembly Members ofthe State Board of Education 
and Superintendent and Members ofthe DeKalb County Board of Education 
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 
Ladies and Gentlemen: 
We have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information ofDeKalb County Board of Education as of and for the year ended June 30, 2008, which collectively comprise DeKalb County Board of Education's basic financial statements and have issued our report thereon dated September 14, 2009. Our report was modified to include a reference to other auditors. We conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Other auditors audited the financial statements of the Academy of Lithonia, DeKalb Academy ofTechnology and the Environment, DeKalb PATH Academy, Destiny Academy ofExcellence and International Community School (Charter Schools), as described in our report on DeKalb County Board ofEducation's financial statements. This report does not include the results ofother auditors' testing ofinternal control over financial reporting or compliance and other matters that are reported on separately by those auditors. The financial statements ofthe DeKalb Academy ofTechnology and the Environment, DeKalb PATH Academy, and International Community School were not audited in accordance with Government Auditing Standards. 
Internal Control Over Financial Reporting 
In planning and performing our audit, we considered DeKalb County Board ofEducation's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose ofexpressing an opinion 
2008YB-10X 
 
 on the effectiveness of the DeKalb County Board of Education's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the DeKalb County Board of Education's internal control over financial reporting. 
A control deficiency exists when the design or operation ofa control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affect the DeKalb County Board ofEducation's ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement of the DeKalb County Board ofEducation's financial statements that is more than inconsequential will not be prevented or detected by the DeKalb County Board of Education's internal control. 
A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement ofthe financial statements will not be prevented or detected by the DeKalb County Board of Education's internal control. 
Our consideration of the internal control over financial reporting was for the limited purpose described in the first paragraph ofthis section and would not necessarily disclose all deficiencies in internal control that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. 
Compliance and Other Matters 
As part of obtaining reasonable assurance about whether DeKalb County Board of Education's financial statements are free of material misstatement, we and other auditors 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 determination offinancial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. 
We noted certain matters that we have reported to management of DeKalb County Board of Education in a separate letter dated September 14, 2009. 
2008YB-10X 
 
 This report is intended solely for the information and use of the finance committee, management, members of the DeKalb County Board of Education, others within the entity, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. 
Respectfully submitted, 
~ :i;~m~' ,~ State Auditor 
RWH:as 2008YB-10X 
 
 Russell W. Hinton 
STATE AUDITOR 
(404) 656-2174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 
September 14, 2009 
 
Honorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education 
and Superintendent and Members of the DeKalb County Board of Education 
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 
Ladies and Gentlemen: 
Compliance 
We have audited the compliance of DeKalb County Board of Education with the types of compliance requirements described in the U.S. Office ofManagement and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2008. DeKalb County Board ofEducation's major Federal programs are identified in the Summary of Auditor's Results Section of the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility of DeKalb County Board of Education's management. Our responsibility is to express an opinion on DeKalb County Board of Education's compliance based on our audit. 
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States ofAmerica; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States; and 0MB Circular A133, Audits ofStates, Local Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the DeKalb County Board ofEducation's compliance with those requirements and performing such other procedures as we considered necessary in the 
 
2008SA-10 
 
 circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on DeKalb County Board of Education's compliance with those requirements. 
In our opinion, the DeKalb County Board of Education complied, in all material respects, with the requirements referred to above that are applicable to each ofits major Federal programs for the year ended June 30, 2008. 
Internal Control Over Compliance 
The management of DeKalb County Board of Education is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to Federal programs. In planning and performing our audit, we considered DeKalb County Board ofEducation's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose ofexpressing our opinion on compliance, but not for the purpose ofexpressing an opinion on the effectiveness ofinternal control over compliance. Accordingly, we do not express an opinion on the effectiveness ofthe DeKalb County Board ofEducation's internal control over compliance. 
A control deficiency in an entity's internal control over compliance exists when the design or operation ofa control does not allow management or employees, in the normal course ofperforming their assigned functions, to prevent or detect noncompliance with a type ofcompliance requirement of a Federal program on a timely basis. A significant deficiency is a control deficiency, or combination ofcontrol deficiencies, that adversely affects the entity's ability to administer a Federal program such that there is more than a remote likelihood that noncompliance with a type of compliance requirement of a Federal program that is more than inconsequential will not be prevented or detected by the entity's internal control. 
A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that material noncompliance with a type of compliance requirement ofa Federal program will not be prevented or detected by the entity's internal control. 
Our consideration ofthe internal control over compliance was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in internal control that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. 
2008SA-10 
 
 This report is intended solely for the information and use of the finance committee, management, members ofthe DeKalb County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. 
Respectfully submitted, 
~~.00 w~~ Russell W. Hinton, CPA, CGFM State Auditor 
RWH:as 2008SA-10 
 
 SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS 
 
 DEKALB COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE 
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2008 
 
PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS 
 
FINDING CONTROL NUMBER 
 
AUDITEE'S RESPONSE/STATUS 
 
SEE AUDITOR'S COMMENTS 
 
FS-6441-06-01 Further Action Not Warranted 
 
(1) 
 
FS-6441-06-03 Previously Reported Corrective Action Implemented 
 
FS-6441-06-06 Previously Reported Corrective Action Implemented 
 
FS-6441-07-01 Further Action Not Warranted 
 
(1) 
 
FS-6441-07-02 Previously Reported Corrective Action Implemented 
 
FS-6441-07-03 Further Action Not Warranted 
 
(1) 
 
FS-6441-07-04 Previously Reported Corrective Action Implemented 
 
FS-6441-07-05 Previously Reported Corrective Action Implemented 
 
FS-6441-07-06 Previously Reported Corrective Action Implemented 
 
AUDITOR'S COMMENTS 
 
(1) Findings/internal control deficiencies ofthis nature, that are not deemed significant deficiencies or material weaknesses and do not require reporting in the audit report in accordance with Statements on Auditing Standards (SAS) 112 or Governmental Auditing Standards (Yellow Book), will be communicated in a management letter. 
 
PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 
 
FINDING CONTROL NUMBER 
 
AUDITEE'S RESPONSE/STATUS 
 
SEE AUDITOR'S COMMENTS 
 
FA-6441-06-01 Unresolved - See Corrective Action/Responses 
 
(1) 
 
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 DEKALB COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE 
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2008 
PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS CORRECTIVE ACTION/RESPONSES ACTMTIES ALLOWED OR UNALLOWED Inadequate Internal Control Procedures U. S. Department of Education Through Georgia Department of Education Hurricane Education Recovery (CFDA 84.938) Finding Control Number: FA-6441-06-01 The School District adhered to the guidance received from the Georgia Department of Education (GDOE). The Volumes "I" and "II" of the U. S. Department of Education guidelines included in "Frequently Asked Questions, Emergency Impact Aid for Displaced Students" were released in the seventh month ofthe fiscal year 2006, at which point most of the funds had been expended. The GDOE Guidelines did not specifically include the Federal requirement cited in this finding. As a result of guidance that was not clear, specific, or timely, the School District does not agree with the $691,876.00 questioned cost. AUDITOR'S COMMENTS (1) Funding for the Hurricane Education Recovery program was a one year grant. Georgia Department ofEducation is reviewing this matter to determine ifa refund is appropriate. 
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 SECTION IV FINDINGS AND QUESTIONED COSTS 
 
 DEKALB COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS 
YEAR ENDED JUNE 30, 2008 
I SUMMARY OF AUDITOR'S RESULTS 
I. Type ofReport Issued on the Financial Statements The auditor's opinion on the DeKalb County Board ofEducation's financial statements was unqualified. 
2. Significant Deficiencies in Internal Control Disclosed by the Audit ofthe Financial Statements The audit report for the DeKalb County Board ofEducation did not disclose any significant deficiencies related to the financial statements. 
3. Noncompliance Material to the Financial Statements The audit of the DeKalb County Board of Education disclosed no instances of noncompliance that were deemed to be material to the financial statements. 
4. Significant Deficiencies in Internal Control Over Major Programs The audit report for the DeKalb County Board ofEducation did not disclose any significant deficiencies in internal control over major programs. 
5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the DeKalb County Board ofEducation's report on compliance with requirements applicable to major programs was unqualified. 
6. Audit Findings Reguired to be Reported by Section .5 lO(a) of 0MB Circular A-133 The DeKalb County Board ofEducation's audit did not disclose audit findings required to be reported by section .510(a) ofOMB Circular A-133. 
7. Major Programs Federal awards audited as major programs are as follows: 10.553 Food Services - School Breakfast Program 10.555 Food Services - National School Lunch Program 84.010 Title I Grants to Local Educational Agencies 84.027 Special Education - Grants to States 84.173 Special Education - Preschool Grants 84.357 Reading First State Grants 
8. Type "A" Program Dollar Threshold The dollar threshold for type "A" programs was $3,000,000.00. 
9. Low Risk Auditee The DeKalb County Board of Education did not qualify as a low risk auditee as defined by Section .530 ofOMB Circular A-133. 
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 DEKALB COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS 
YEAR ENDED JUNE 30, 2008 II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS No matters were reported. III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. 
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